NOTE 9 - INCOME TAXES
A reconciliation of the provision for
income taxes at the United States federal statutory rate of 21% and a Colorado state rate of 5% compared to the Company’s
income tax expense as reported at December 31, 2024 and 2023 is as follows:
| | |
Income tax valuation allowance |
| | |
| |
|
| | |
2024 | |
2023 |
| | |
| |
|
| Net loss before income taxes | |
$ | (1,514,839 | ) | |
$ | (917,088 | ) |
| Adjustments to net loss | |
| | | |
| | |
| Convertible note expense | |
| 109,956 | | |
| 28,547 | |
| Net taxable income (loss) | |
| (1,404,883 | ) | |
| (888,541 | ) |
| Income tax rate | |
| 26 | % | |
| 26 | % |
| Income tax recovery | |
| 365,270 | | |
| 231,021 | |
| Valuation allowance change | |
| (365,270 | ) | |
| (231,021 | ) |
| Provision for income taxes | |
$ | — | | |
$ | — | |
| | |
| | | |
| | |
The significant components of deferred income
tax assets at December 31, 2024 and 2023 are as follows:
| | |
Components of deferred income tax assets |
| | |
| |
|
| | |
2024 | |
2023 |
| | |
| |
|
| Net operating loss carryforward | |
$ | 5,534,349 | | |
$ | 4,129,466 | |
| | |
| | | |
| | |
| Valuation allowance | |
| (5,534,349 | ) | |
| (4,129,466 | ) |
| | |
| | | |
| | |
| Net deferred income tax asset | |
$ | — | | |
$ | — | |
| | |
| | | |
| | |
|