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

NOTE 7 — INCOME TAXES

 

The Company accounts for income taxes under ASC 740 - Income Taxes (“ASC 740”), which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

 

The sources of income (loss) before provision for income taxes are as follows for the years ending December 31, 2025 and 2024: 

 

   For the Year Ended
December 31,		 
   2025   2024 
Domestic  (887,197)  (638,025)
Foreign  -   - 
Total  (887,197)  (638,025)

 

The provision for income taxes comprised of the following for the year ended December 31, 2025 and 2024:

 

   For the Year Ended
December 31,		 
   2025   2024 
Current:        
Federal $(4,000) $120,000 
State and local  (2,000)  59,000 
Foreign  -   - 
Total current  (6,000)  179,000 
Deferred:          
Federal  -   - 
State and local  -   - 
Foreign  -   - 
Total deferred  -   - 
Total provision for income taxes $(6,000) $179,000 

 

For the year ended December 31, 2025 and 2024, the effective tax rate differs from the U.S. statutory rate primarily due to the valuation allowance on the start-up costs.

 

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:

 

   December 31,
2025		   December 31,
2024		 
Deferred tax assets:        
Start-up costs $1,146,761  $854,681 
Valuation allowance  (1,146,761)  (854,681)
Net deferred tax assets (liabilities) $-  $- 

 

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the years ended December 31, 2025 and 2024, the change in the valuation allowance was $1,146,761 and $854,681, respectively.