INCOME TAXES |
6 Months Ended | |||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||
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| INCOME TAXES | NOTE 6 – INCOME TAXES
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates expected to apply in the years in which such differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when management determines it is more likely than not that such assets will not be realized.
For the six months ended June 30, 2026, the Company recorded no provision for income taxes. The Company incurred a net loss of $11,664 for the period and continues to maintain a full valuation allowance against its deferred tax assets, as management has determined that it is more likely than not that such assets will not be realized.
The Company's deferred tax assets increased as a result of current-period operating losses. Because management continues to believe it is more likely than not that these deferred tax assets will not be realized, a full valuation allowance has been maintained.
The following table reconciles the combined statutory income tax rate to the Company’s effective tax rate for the six months ended June 30, 2026:
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