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INCOME TAX
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 9 – INCOME TAX

 

The Company accounts for income taxes under ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting basis and tax basis of assets and liabilities and for net operating loss carryforwards. Deferred tax assets are reduced by a valuation allowance when management determines it is more likely than not that some or all of the deferred tax assets will not be realized.

 

For the three months ended March 31, 2025 and 2024, the Company incurred losses before income taxes of $170,479 and $173,068, respectively. No federal or state income tax provision or benefit was recorded for either period because management has determined that it is more likely than not that the Company's deferred tax assets will not be realized and, accordingly, a full valuation allowance has been maintained against such assets.

 

The effective income tax rate differs from the statutory federal income tax rate primarily due to the valuation allowance recorded against deferred tax assets.

 

Schedule of income tax reconciliation            
   March 31, 2025  Rate  March 31, 2024  Rate
Loss before income taxes  $(170,479)        (173,068)     
Expected federal tax benefit at 21%   35,801    21.0%   $36,344    21.0% 
State tax benefit, net of federal effect   13,197    7.74%    13,397    7.74% 
Increase in valuation allowance   (48,998)   (28.74%)   (49,741)   (28.74%)
Income tax provision  $–    0.0%   $–    0.0% 

 

At March 31, 2025, the Company had estimated federal net operating loss carryforwards of approximately $3.8 million available to offset future taxable income. Utilization of these carryforwards may be limited under Section 382 of the Internal Revenue Code in the event of certain ownership changes

 

The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of March 31, 2025 and December 31, 2024, the Company had no unrecognized tax benefits and had not accrued any interest or penalties related to uncertain tax positions. Tax years remain subject to examination by taxing authorities for all years since inception.