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

NOTE 8 – INCOME TAX

 

As of December 31, 2025 and 2024, the Company has incurred an accumulated net loss of approximately $22.0 million and $21.0 million which resulted in a net operating loss (“NOL”) for income tax purposes. NOLs can carry forward indefinitely up to offset 80 percent of taxable income after CARES Act effect on December 31, 2017. The deferred tax asset has been fully reserved for valuation allowance as the Company believes they will most-likely-than-not realize the benefits.

 

 

WENYUAN GROUP CORP. AND SUBSIDIARY

(FORMERLY KNOWN AS LONGWEN GROUP CORP. AND SUBSIDIARY)

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 8 – INCOME TAX (CONTINUED)

 

Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2025 and 2024 consisted of the following:

 

   December 31, 2025   December 31, 2024 
Deferred tax assets          
Net operating loss carry-forward  $1,228,116   $1,093,917 
Total  $1,228,116   $1,093,917 
Valuation allowance   (1,228,116)   (1,093,917)
Net deferred tax assets - noncurrent  $—   $— 

 

Reconciliation of income tax provision and the accounting profit multiplied by U.S. federal income tax rate for the years ended December 31, 2025 and 2024:

 

   2025   2024 
   For the year ended December 31, 
   2025   2024 
Loss at 21% statutory tax rate  $(134,199)  $(247,386)
Permanent differences   —    — 
Increase (decrease) in income taxes resulting from:   —    — 
Net operating loss carry forward   —    — 
Change in valuation allowance  $134,199   $247,356 
Income tax provision　   —    970