INCOME TAXES |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | NOTE 10 – INCOME TAXES
The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recognized for temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled.
As of March 31, 2026, the Company had a net operating loss carryforward for federal income tax purposes of approximately $758,000. The federal net operating loss carryforwards generated after 2017 may be carried forward indefinitely, subject to certain limitations under Section 382 of the Internal Revenue Code.
The Company recorded a full valuation allowance against its deferred tax assets as management determined that it is more likely than not that the deferred tax assets will not be realized. The valuation allowance increased primarily due to current period operating losses.
For the three months ended March 31, 2026 and 2025, the Company recorded no income tax expense or benefit due to the full valuation allowance recorded against deferred tax assets.
The effective tax rate differed from the statutory federal income tax rate for the three months ended March 31, 2026 and 2025 primarily due to changes in the valuation allowance.
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
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