INCOME TAXES |
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||
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| INCOME TAXES | NOTE 8 — INCOME TAXES The Company determines its provision for income taxes for interim periods using an estimated annual effective tax rate in accordance with ASC 740-270, adjusted for discrete items recognized in the period. For the three months ended March 31, 2026 and 2025, the Company recorded no provision for income taxes. At March 31, 2026, the Company had net operating loss carryforwards for U.S. federal and state income tax purposes of approximately $72,531 (December 31, 2025 — $67,331) available to reduce future taxable income. Under the Tax Cuts and Jobs Act of 2017, such carryforwards have an indefinite carryforward period, with utilization limited to 80% of taxable income in each subsequent year. The Company has recorded a full valuation allowance against the related deferred tax assets, as management does not consider it more likely than not that the deferred tax assets will be realized. The change in the valuation allowance was $1,456 for the three months ended March 31, 2026 against $0 for three months ended March 31, 2025. A reconciliation of the statutory income tax rate to the Company’s effective tax rate is as follows:
The Company has no unrecognized tax benefits and no accrued interest or penalties relating to uncertain tax positions as of March 31, 2026 and December 31, 2025. All tax years since inception remain open to examination by the relevant taxing authorities. |