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

NOTE 12 – INCOME TAX

 

The Company provides for income taxes using an asset and liability-based approach. Deferred income tax assets and liabilities are recorded to reflect the future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Tax Cuts and Jobs Act was enacted on December 22, 2017, which reduced the U.S. corporate statutory tax rate from 35% to 21%. The Company changed its effective federal rate to 21% as the expected rate for our deferred tax items.

 

The significant components of net deferred tax assets (liabilities) were as follows at December 31, 2025, and 2024:

 

   2025   2024 
   December 31, 
   2025   2024 
Net operating losses  $1,320,354   $573,726 
Depreciation and amortization   (37,030)   (18,493)
Stock option expense   420,976    426,275 
Valuation allowance   (1,704,300)   (981,508)
Net Deferred Tax Asset  $—   $— 

 

 

As of December 31, 2025, the Company had no unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate over the next twelve (12) months. A reconciliation of the expected income tax benefit at the U.S. Federal income tax rate to the income tax benefit actually recognized for the years ended December 31, 2025, and 2024 is set forth below:

 

   2025   2025 Rate   2024   2024 Rate 
  

For the Year Ended December 31,

 
   2025   2025 Rate   2024   2024 Rate 
Tax at statutory federal rate  $(277,274)   21.0%  $184,051    21.0%
Changes in valuation allowance   277,159    0.8%   (184,817)   0.9%
Non-deductible expenses  $115    0.1%  $766    0.1%
Benefit from income taxes  $—        $—      

 

Due to the pretax loss, certain reconciling items as a percentage of pretax income are not meaningful and may not be comparable to prior periods.

 

As of December 31, 2025, the Company has a net operating loss carry-forward for U.S. federal income tax purposes of approximately ($6,287,398), which will expire in 2044. This carryforward is available to offset future taxable income, if any, and will expire, if not used, from 2037 through 2042. The utilization of the net operating loss carry-forward is dependent upon the tax laws in effect at the time the net operating loss carry-forward can be utilized and may be limited by changes in ownership control of the Company. The Company’s U.S. federal tax return, constituting the return of the major taxing jurisdictions, are subject to examination by the taxing authorities for all open years as prescribed by applicable statute. No income tax waivers have been executed that would extend the period subject to examination beyond the period prescribed by statute. The Company is no longer subject to U.S. federal tax examinations for tax years before and including December 31, 2020. During the years ended December 31, 2025, and 2024, the Company did not incur interest and penalties.