|
NOTE 6 - INCOME TAXES
The following reconciles the total income tax benefit, based on the
U.S. Federal statutory income tax rate of 21% for the twelve month period ended December 31, 2023, with TMTG’s recognized income tax
expense:
|
U.S. Statutory federal income tax expense/(benefit)
|
|
|
(12,219.7)
|
|
|
10,610.0
|
|
Permanent items
|
|
|
|
|
|
|
|
State income taxes, net of federal effect
|
|
|
1.1
|
|
|
2,633.1
|
|
Non-deductible expenses
|
|
|
334.6
|
|
|
3.0
|
|
Change in valuation allowance
|
|
|
11,885.1
|
|
|
(13,245.9)
|
|
Income tax expense
|
|
|
1.1
|
|
|
0.2
|
The tax effects of temporary differences that give rise to deferred
tax assets and deferred tax liabilities as of December 31, 2023 are as follows:
|
Deferred tax assets
|
|
|
|
|
|
|
|
Software and other claimed assets
|
|
|
360.6
|
|
|
$1,810.5
|
|
Net operating loss (NOL)
|
|
|
9,474.7
|
|
|
4,478.1
|
|
Convertible promissory notes and derivative liability
|
|
|
3,853.2
|
|
|
—
|
|
Total deferred tax assets
|
|
|
13,688.5
|
|
|
6,288.6
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
Property, plant & equipment
|
|
|
(6.2)
|
|
|
(18.2)
|
|
Convertible promissory notes and derivative liability
|
|
|
—
|
|
|
(4,473.2)
|
|
Total deferred tax liabilities
|
|
|
(6.2)
|
|
|
(4,491.4)
|
|
Net deferred tax assets
|
|
|
13,682.3
|
|
|
1,797.2
|
|
Valuation allowance
|
|
|
(13,682.3)
|
|
|
(1,797.2)
|
|
Net deferred tax, net of valuation allowance
|
|
|
—
|
|
|
—
|
As of December 31, 2023, TMTG had US Federal net operating loss
carryforwards (“NOLs”) with a tax benefit of $9,474,744 (December 31, 2022: $4,478,110).
|