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

NOTE 11 – INCOME TAXES

 

The Company accounts for income taxes in accordance with the provisions of FASB ASC 740, Accounting for Uncertainty in Income Taxes. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

At December 31, 2025 and 2024, the significant components of the deferred tax assets are summarized below:

 

   December 31,   December 31, 
   2025   2024 
Net operating loss carry-forward  $9,271,469   $8,048,147 
Valuation allowance   (9,271,469)   (8,048,147)
Net deferred tax asset (liability)  $-   $- 

 

The Company periodically evaluates the likelihood of the realization of deferred tax assets and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carry forward periods available to the Company for tax reporting purposes, and other relevant factors. The valuation allowance at December 31, 2025 was $9,271,469 and as of December 31, 2024 was $8,048,147. The net change in allowance during the year ended December 31, 2025 was $1,223,322. During the year ended December 31, 2025 and 2024, the net operating losses were $726,762 and $972,261 respectively. The Company has approximately $9,271,469 of federal and state net operating loss carrying forwards to offset future federal taxable income as of December 31, 2025.

 

Future changes in the unrecognized tax benefit will have no impact on the effective tax rate due to the existence of the valuation allowance. The Company estimates that the unrecognized tax benefit will not change significantly within the next twelve months. The Company will continue to classify income tax penalties and interest as part of general and administrative expenses in its consolidated statements of operations. There were no interest or penalties accrued as of December 31, 2025 and 2024. Past tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company is preparing and reviewing information for tax returns for past years. Due to the Company’s lack of revenue since inception management does not believe that there is any income tax liability for past years.

 

Income tax benefit resulting from applying statutory rates in jurisdictions in which we are taxed (Federal and State of Florida) differs from the income tax provision (benefit) in our financial statements. The following table reflects the reconciliation for the years ended December 31, 2025 and 2024:

 

   For the Year   For the Year 
   Ended   Ended 
   December 31, 2025   December 31, 2024 
Income tax at federal statutory rate   (21.00)%   (21.00)%
State tax, net of federal effect   (5.50)%   (3.96)%
    (26.50)%   (24.96)%
Valuation allowance   26.50%   24.96%
Effective rate   0.00%   0.00%