v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 12 - INCOME TAXES

 

The U.S. statutory federal corporate income tax rate is 21% for the years ended December 31, 2025 and 2024.

 

The Company records tax positions as liabilities in accordance with ASC 740 and adjusts these liabilities when judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the recognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. As of December 31, 2025 and 2024, the Company has not recorded any uncertain tax positions in its financial statements.

 

The following table presents the components of income tax expense for the years ended December 31, 2025 and 2024:

 

 

   2025   2024 
   For the years ended 
   December 31, 
   2025   2024 
Profit (loss) before income taxes  $(20,643,455)  $(8,707,226)
US Fed Income Tax rate   21.00%   21.00%
Income taxes computed at Fed Income Tax rate   (4,335,125)   (1,828,517)
Reconciling items:          
Tax effect of income that is not taxable   —    — 
Tax effect of expenses that are not deductible*   —    — 
Change in valuation allowance   4,335,125    1,828,517 
           
Income tax expense  $—   $— 

 

    2025     2024  
    For the years ended
December 31,		  
    2025     2024  
Current   $        -           -  
Deferred   $ -       -  
Provision for income taxes, net of valuation allowance   $ -       -  

 

The following table presents the significant components of the Company’s deferred tax assets as of December 31, 2025 and 2024:

 

 SCHEDULE OF DEFERRED TAX ASSETS

  

As of

December 31, 2025

  

As of

December 31, 2024

 
Deferred tax assets:          
Net operating loss carryforwards  $5,085,064   $3,076,580 
Stock-based compensation   2,761,382    947,164 
Depreciation   2,087    6,692 
Amortization of intangible assets   3,854    3,854 
Total deferred tax assets   7,852,386    4,034,291 
Less: valuation allowance   (7,852,386)   (4,034,291)
Deferred tax assets, net  $-   $- 

 

The Company has established a full valuation allowance against its net deferred tax assets as it is more likely than not that such assets will not be realized based on the Company’s history of operating losses. The valuation allowance increased by approximately $4,335,125 during the year ended December 31, 2025.

 

The Company has net operating loss carryforwards of approximately $24,214,592 as of December 31, 2025. These carryforwards were generated after December 31, 2017 and therefore do not expire under current U.S. tax law; however, their annual utilization is limited to 80% of taxable income in any given year. The utilization of these net operating loss carryforwards may be further limited pursuant to Section 382 of the Internal Revenue Code as a result of cumulative changes in ownership. No formal Section 382 study has been completed, and accordingly, the extent of any such limitation has not been quantified. If a limitation exists, the Company’s ability to utilize its net operating loss carryforwards in any given year could be reduced or eliminated.

 

As of December 31, 2025 and 2024, the Company had no income tax payable.