Annual report [Section 13 and 15(d), not S-K Item 405]

Income Tax

v3.25.1
Income Tax
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax

Note 9 – Income Tax

 

The Company has the following net deferred tax asset:

 

    As of
December 31, 2024		     As of
December 31, 2023		  
Temporary Differences   $ 255,138     $ 255,138  
Unrealized gains     128,077       120,135  
Impairment losses on investment     311,280       313,925  
Net operating loss carryforward     546,705       383,370  
Total gross deferred tax assets     (1,241,199 )     (1,072,568 )
                 
Net deferred tax assets   $ -     $ -  

 

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

    For the Year ended
December 31, 2024		     For the Year ended
December 31, 2023		  
             
Expected federal statutory rate     (21.00 )%     (21.00 )%
State Effect on tax rate, net of federal benefit     (4.35 )%     (4.35 )%
Permanent differences     (5.75 )%     (5.75 )%
Change in valuation allowance     31.10 %     31.10 %
                 
Income tax provision (benefit)     -       -  

 

As of December 31, 2024, the Company had approximately $1,675,000 of federal and state net operating loss carryovers (“NOLs”). From this amount, $711,000 expire after 20 years, and can be carried back 2 years, according to the old tax law, while $964,000 can be carried forward indefinitely and cannot be carried back, in accordance with the new tax rules. The valuation allowance increased by approximately $168,631 for the year ended December 31, 2024, and increased by approximately $93,909 for the year ended December 31, 2023.

 

The Company, after considering all available evidence, fully reserved its deferred tax assets since it is more likely than not that such benefits may be realized in future periods. The Company has not yet established that it can generate taxable income. The Company will continue to evaluate its deferred tax assets to determine whether any changes in circumstances could affect the realization of their future benefit. If it is determined in future periods that portions of the Company’s deferred tax assets satisfy the realization standards, the valuation allowance will be reduced accordingly.