v3.26.1
NOTE 10 - INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Notes  
NOTE 10 - INCOME TAXES

NOTE 10 – INCOME TAXES

 

The reconciliation between income taxes at the U.S. federal rate of 21% and the amount recorded in the accompanying consolidated financial statements is as follows:

 

 

As of December 31,

 

2025

 

2024

US federal statutory income tax rate

$

(456,689)

21.00%

 

$

(369,847)

21.00%

Domestic state and local taxes, net of federal effect

 

 

 

 

 

 

 

Florida income tax effect

 

(119,475)

5.49%

 

 

(75,648)

4.30%

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

Loss from Debt Conversion

 

19,722 

-0.91%

 

 

- 

0.00%

Amortization of Debt Discount

 

3,564 

-0.16%

 

 

1,963 

-0.11%

Other Permanent Items

 

1,671 

-0.08%

 

 

2,267 

-0.13%

Other Adjustments

 

 

 

 

 

 

 

Return to Provision Adjustments:

 

13,661 

-0.63%

 

 

- 

0.00%

Other, net

 

 

 

 

 

 

 

Change in Domestic valuation allowance

 

537,546 

-24.72%

 

 

441,265 

-25.06%

 

 

 

 

 

 

 

 

Income Taxes Provision (Benefit)

$

- 

0.00%

 

$

- 

0.00%

 

 

We comply with GAAP, which requires the determination of deferred income taxes using an asset and liability approach, whereby deferred tax liabilities and assets are recognized for expected future tax consequences of temporary differences between carrying amounts and tax basis of asset and liabilities. Deferred balances are adjusted to reflect enacted changes in income tax rates. Due to the likelihood that the deferred assets will not be realized, a full valuation allowance has been recorded. Deferred tax assets are as follows:

 

2025

 

2024

Federal net operating loss carryforward

$

779,466 

 

$

441,851  

State net operating loss carryforward

 

161,275 

 

 

91,421  

Fixed assets and intangibles

 

283,183 

 

 

147,800  

Accrued expenses

 

307,008 

 

 

312,314  

Total Deferred tax assets

$

1,530,933 

 

$

993,386  

Valuation allowance

 

(1,530,933)

 

 

(993,386) 

 

$

- 

 

$

-  

 

At December 31, 2025 and December 31, 2024, the Company evaluated its tax positions and did not have any unrecognized tax benefits. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

 

The Company considers the U.S. and Florida to be major tax jurisdictions. As of December 31, 2025, for federal tax purposes the tax years 2023-2025 and for Florida the tax years 2022 through 2025 remain open to examination by tax authorities.

 

As of December 31, 2025, the Company has net operating losses amounting to $3,711,745 for federal and Florida which can be carried forward indefinitely but are limited to 80% usage.