Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.22.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9 – Income Taxes

 

The Company has the following net deferred tax asset:

 

   

As of

December 31, 2021

    

As of

December 31, 2020

  
Temporary Differences   $ 232,327     $ 201,913  
Unrealized gains    

84,399

       34,976  
Impairment losses on investment    

208,471

      

-

  
Net operating loss carryforward     339,152       375,733  
Total deferred tax assets    

864,349

      

612,622

  
Valuation allowance     (864,349 )     (612,622 )
                 
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, 2021

    

For the Year ended

December 31, 2020

  
             
Expected federal statutory rate     (21 )%     (21 )%
State Effect on tax rate, net of federal benefit     (4.35 )%     (4.35 )%
Permanent differences     (5.75 )%     (8.37 )%
Change in valuation allowance     31.1 %     33.72 %
                 
Income tax provision (benefit)     -       -  

 

As of December 31, 2021, the Company had approximately $1,338,000 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 $627,000 can be carried forward indefinitely and cannot be carried back, in accordance with the new tax rules. The valuation allowance increased by approximately $251,726 for the year ended December 31, 2021, and increased by $137,747 for the year ended December 31, 2020.

 

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.