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

Income Tax

v3.26.1
Income Tax
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax

Note 12 – Income Tax

 

The Company has the following net deferred tax asset:

 

    As of
December 31, 2025		     As of
December 31, 2024		  
Temporary Differences   $ -     $ 255,138  
Unrealized gains     (39,172 )     128,077  
Loss on settlement    

(5,161,277

 )        

Stock based compensation

     (3,949,824 )     -  
Impairment losses on investment     8,505       311,280  
Net operating loss carryforward     10,408,048       546,705  
Total gross deferred tax assets    

1,266,280

     1,241,199  
Less: Valuation Allowances     (1,266,280 )     (1,241,199 )
                 
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, 2025		     For the Year ended
December 31, 2024		  
             
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, 2025, the Company had approximately $10,408,000 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 $9,697,000 can be carried forward indefinitely and cannot be carried back, in accordance with the new tax rules. The valuation allowance increased by approximately $9,861,000 for the year ended December 31, 2025, and increased by approximately $164,000 for the year ended December 31, 2024.

 

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.