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INCOME TAX
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 9 – INCOME TAX

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss carryforwards. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some or all of the deferred tax assets will not be realized.

 

For the years ended December 31, 2024 and 2023, the Company incurred losses before income taxes and recorded no provision or benefit for federal or state income taxes. The Company's effective tax rate differed from the statutory federal rate primarily due to the establishment and maintenance of a full valuation allowance against deferred tax assets.

 

Income Tax Rate Reconciliation

Schedule of income tax reconciliation            
   2024  Rate  2023  Rate
Expected federal tax benefit  $133,248    21.0%   $174,426    21.0% 
Expected state tax benefit, net of federal effect   18,400    2.9%    24,100    2.9% 
Increase in valuation allowance   (151,648)   (23.9%)   (198,526)   (23.9%)
Income tax provision  $–    0.0%   $–    0.0% 

 

Deferred Tax Assets

Schedule of deferred tax assets      
   2024  2023
Net operating loss carryforwards  $151,648   $708,000 
Total deferred tax assets   151,648    708,000 
Less: Valuation allowance   (151,648)   (708,000)
Net deferred tax assets  $–   $– 

 

At December 31, 2024 and 2023, the Company had federal net operating loss carryforwards of approximately $3,583,000 and $2,949,000, respectively, available to offset future taxable income. Certain net operating losses generated after 2017 may be carried forward indefinitely; however, utilization may be limited to 80% of taxable income in any future year. In addition, utilization of the Company's net operating loss carryforwards may be subject to limitation under Section 382 of the Internal Revenue Code in the event of certain ownership changes.

 

Management has evaluated the realizability of the deferred tax assets and has concluded that a full valuation allowance is required as of December 31, 2024 and 2023 because it is more likely than not that the deferred tax assets will not be realized through future taxable income.

 

The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2024 and 2023, the Company had no unrecognized tax benefits and had not accrued any interest or penalties related to uncertain tax positions. Tax years generally remain subject to examination by federal and state taxing authorities for all years since inception.