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

NOTE 13 – INCOME TAXES

 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss, and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income tax rate of 21% is being used as the effective tax rate. The Company filed an extension for federal income taxes for the year ended December 31, 2025 and the Federal corporate tax return for 2024 has not been filed as of August 13, 2026.

 

Income taxes consist of the following components as of:

        
         
   Six months ended
June 30, 2026		   Six months ended
June 30, 2025		 
Federal income tax benefit attributable to:          
Current Operations  $358,202   $483,491 
Less: Valuation allowance   (358,202)   (483491)
Net provision for Federal income taxes  $—   $— 

  

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the periods ended June 30, 2026 and December 31, 2025, due to the following:

        
   June 30, 2026   December 31, 2025 
Deferred tax asset attributable to:          
Net operating loss carryover  $4,334,877   $3,976,675 
Less: Valuation allowance   (4,334,877)   (3,976,675)
Net deferred tax asset  $—   $— 

 

At June 30, 2026 and December 31, 2025, the Company had net operating loss carry forwards of $20,642,270 and $18,936,548, respectively. In addition, there was an increase of $358,202 in valuation allowance for the first six months of 2026.  

 

Net operating losses generated in tax years beginning after December 31, 2017 may be carried forward indefinitely, subject to applicable limitations, including the limitation that such losses may generally offset no more than 80% of taxable income in future taxable years. No tax benefit has been reported in December 2025 and 2024 unaudited consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

 

Utilization of the Company’s net operating loss carryforwards may be subject to annual limitations under Section 382 of the Internal Revenue Code if the Company has experienced, or experiences in the future, an ownership change. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.