v3.26.1
INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 10 – INCOME TAXES

 

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 net operating loss carryforwards. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that the assets will not be realized.

 

For the six months ended June 30, 2026 and 2025, the Company recorded no provision for income taxes due to the losses incurred during the periods and the maintenance of a full valuation allowance against its net deferred tax assets. Accordingly, the Company continues to maintain a full valuation allowance against its deferred tax assets. Management has concluded that it remains more likely than not that the Company's deferred tax assets will not be realized based upon its history of operating losses, limited operating history, and uncertainty regarding the generation of sufficient future taxable income.

 

The Company's effective income tax rate differed from the U.S. federal statutory rate for the six months ended June 30, 2026 and 2025 as follows:

                    
   Six Months Ended June 30, 2026   Rate   Six Months Ended June 30, 2025   Rate 
Expected federal income tax expense  $9,700    21.0%   $72,000    21.0% 
Expected state income tax expense net of federal effect*   1,300    2.9%    10,000    2.9% 
Change in valuation allowance   (11,000)   (23.9%)   (82,000)   (23.9%)
Income tax provision  $–    0.0%   $–    0.0% 

 

As of June 30, 2026, the Company continues to maintain a full valuation allowance against its deferred tax assets because management believes it is more likely than not that the deferred tax assets will not be realized. Management evaluates the need for a valuation allowance each reporting period based on all available positive and negative evidence.

 

The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of June 30, 2026, the Company had no unrecognized tax benefits and had not accrued any interest or penalties related to uncertain tax positions.