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

Note 6 – Income Taxes

 

Effective January 1, 2025 the Company revoked its election to be taxed as an “S” Corporation and elected to be taxed as a C Corporation under the provision of the Internal Revenue Code. As a result of this change in tax status, the Company is now subsequent to federal corporate income taxes on its taxable income.

 

Prior to the revocation of its S-Corporation election, the Company was not subject to federal corporate income taxes, and its taxable income for the year ended December 31, 2024 was reportable by its shareholder.

 

The Company is subject to taxation in the United States.

 

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2025, the Company has not accrued any penalties or interest related to uncertain tax positions.

 

Since converting to a C corporation, the Company has incurred losses and consequently recorded no provision for federal income tax for the year ended December 31,2025. As of December 31, 2025 the Company had net operating loss (“NOL”) carryforwards for federal income tax purposes. Federal NOL’s generated may be carried forward indefinitely, subject to an annual limitation equal to 80% of taxable income in any future year under the Tax Cuts and Jobs Act.

 

Pursuant to the provisions of the Accounting Standards Codification (“ASC”) 740-10, the Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. As of the years ended December 31, 2025, and 2024, the Company had no liabilities for uncertain tax positions. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

 

YEAR ENDED DECEMBER 31, 2025

 

     
Federal statutory tax rate   (21.0)%
Impact of 70,000 NQSO Issuances (ASC 718 expense)   (21.1)%
Change in Valuation Allowance   21.0%
Effective Tax Rate   (21.1)%

 

 

YEAR ENDED DECEMBER 31, 2025

 

          
Net Operating Loss   21%   1,107,236 
Stock-based compensation   21%   253,845 
Depreciation   21%   52,902 
Total Deferred Tax Assets        1,413,983 
Deferred Tax Liabilities   -    - 
Net Deferred Tax Asset   -    1,361,081 
Less: Valuation Allowance   -    (1,361,081)
Deferred Tax Asset (Liability), Net   -    - 

 

The Company’s federal income tax returns for 2025 and 2024 are subject to examination by the IRS, generally for three years after they were filed. There are no ongoing examinations by taxing authority at this time.