v3.26.1
Income Tax
 6 Months Ended
Jun. 30, 2026
Income Tax  
Income Tax

Note 10 – Income Tax

 

The Company accounts for income taxes under FASB ASC 740-10, which requires use of the liability method. FASB ASC 740-10-25 provided that deferred tax assets and liabilities, are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences.

 

For the six months ended June 30, 2026 and year ended December 31, 2025, the Company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. On June 30, 2026 and December 31, 2025, the Company had approximately $279,392 and $1,372,173 of loss of federal net operating losses, respectively. The net operating loss carry forwards, if not utilized, will begin to expire in 2031.

 

The components of the Company’s deferred tax assets are as follows:

 

 

 

 June 30,

2026

 

Deferred tax assets:

 

 

 

Net operating loss carry forward as of 12/31/2025

 

$19,783,456

 

Estimate Tax Loss June 30, 2026

 

 

279,392

 

 

 

 

 

 

NOL Carry Forward Cumulative as of 6/30/2026

 

 

20,062,847

 

Statutory Tax Rate

 

 

21%

Deferred Tax Asset

 

 

4,213,198

 

Valuation

 

 

(4,213,198 )

Net Deferred Tax Asset

 

 

0

 

 

Based on the available objective evidence, including the Company’s history of losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at June 30, 2026 and December 31, 2025, respectively.