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

NOTE 11 – INCOME TAX

 

The Company is organized as a C-Corporation. Prior to its reorganization in June 2025, RoboCent was a corporation and elected to be taxed as S-Corporation for state and federal tax purposes, a structure in which income taxes are not payable by the Company. The shareholder of the S-Corporations was taxed individually on their applicable share of earnings. The Company is subject to United States federal income taxes at an approximate rate of 21%. The Company adopted ASC 2023-09 during the year ended December 31, 2025 prospectively. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:

 

      Rate 
   Year Ended December 31, 2025 
   Amount   Rate 
Income tax benefit computed at the statutory rate  $393,000    21.0%
Non-deductible expenses   (79,000)   -4.2%
Change in valuation allowance   

(311,893

)   -16.8%
Provision for income taxes  $

2,107

    0%

 

   Year Ended 
   December 31, 
   2025 
Income tax benefit computed at the statutory rate  $393,000 
Tax effect of:     
Non-deductible expenses   (79,000)
Changes in valuation allowance   (311,893)
Provision for income taxes  $2,107 

 

Significant components of the Company’s deferred tax assets and liabilities after applying enacted corporate income tax rates are as follows:

 

   As of 
   December 31, 
   2025 
Deferred income tax assets     
Net operating losses   314,000 
Valuation allowance   (311,893)
Deferred tax assets, net of allowance  $

2,107

 

 

In assessing the potential for realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized upon the generation of future taxable income. The Company recognized no income tax expense or benefit for the year ended December 31, 2025, as a result of a materially full valuation allowance against the net deferred tax assets as of December 31, 2025. Considered together with the Company’s limited history of operating losses and its net losses in 2025, the Company recorded a full valuation allowance against the net deferred tax assets as of December 31, 2025.

 

The Company has an operating loss carry forward of approximately $1,497,000. Under the Tax Cuts and Jobs Act of 2017, the net operating loss carry forwards can be carried forward indefinitely, however the deductions are limited to 80% of taxable income.