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

Note 6 – Income Taxes

 

The Company estimated NOL carry-forwards for Federal and State income tax purposes of $8,298,331 and $7,661,483 as of December 31, 2025, respectively, and $2,241,328 and $1,604,480 for federal and state as of December 31, 2024, respectively. Foreign NOL carryforwards consisted of $0 for Israel and $27,481 for Romania as of December 31, 2025, and $34,755 for Israel and $0 for Romania as of December 31, 2024. The year-over-year change reflects the full utilization of the Israel NOL carryforward and the generation of a new NOL in Romania during 2025. No tax benefit was reported with respect to these NOL carry-forwards in the accompanying financial statements because the Company believes the realization of the Company’s deferred tax assets was not considered more likely than not to be realized and accordingly, the potential tax benefits of the deferred tax assets are fully offset by a full valuation allowance. The Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

 

   2025   2024 
   Year Ended December 31, 
   2025   2024 
Deferred tax assets:          
Software development costs   (920,889)     
Net operating loss carryforwards  $2,079,938   $549,202 
Total deferred tax assets   1,159,049    549,202 
           
Valuation allowance   (1,159,049)   (549,202)
Net deferred tax assets (liabilities)  $—    — 

 

 

The differences between the total calculated income tax provision and the expected income tax computed using the U.S. federal income tax rate are as follows:

 

   %   Amount   %   Amount 
   Year Ended December 31, 
   2025   2024 
   %   Amount   %   Amount 
U.S. federal statutory tax rate   21.00%  $(476,299)   21.00%  $(210,230)
State and local income tax, net of federal income tax effect                    
Florida income tax   4.58%   (103,934)   4.34%   (43,161)
NOL true-up   (0.07)%   1,510    0.00%   — 
Change in state valuation allowance   (4.52)%   102,424    (4.34)%   43,161 
Foreign tax effects                    
Israel   (0.13)%   3,046    0.00%   — 
Romania   0.13%   (3,023)   0.00%   — 
Changes in valuation allowances   (22.57)%   511,819    (20.98)%   210,052 
Nontaxable or nondeductible items   (0.01)%   181    (0.02)%   178 
Other adjustments   0.03%   (695)   0.00%   — 
Income tax expense   (1.54)%  $35,029    0.00%   — 

 

Income tax expense consists of the following for the years ending December 31, 2025, and 2024:

 

   December 31,   December 31, 
   2025   2024 
Current income tax (benefit) expense          
Federal  $—   $— 
State   —    — 
Israel   35,029    — 
Romania   —    — 
Current income tax (benefit) expense  $35,029   $—