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INCOME TAXES
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

10. INCOME TAXES

 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

Net deferred tax assets consist of the following components as of September 30, 2024 and 2023:

 

   September 30,
2024		   September 30,
2023		 
Deferred tax assets:        
NOL Carryover  $5,603,050   $5,239,461 
R&D Credit Carryforward   70,536    46,147 
Deferred Compensation   160,699    120,070 
Related party accruals   -    40,576 
Deferred tax liabilities          
Valuation allowance   (5,834,285)   (5,446,254)
Net deferred tax asset  $-   $- 

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended September 30, 2024 and 2023 due to the following:

 

   September 30,
2024		   September 30,
2023		 
Book Income  $(558,160)  $(962,410)
Nondeductible Other Expenses   245,946    708,725 
Other - Return to provision adjustments   (116,451)   - 
Deferred Compensation   40,630    47,620 
Related party accrual   -    19,950 
Valuation Allowance   388,035    186,115 
Income Tax Expense  $-   $- 

 

As of September 30, 2024, the Company had net operating loss carry-forwards of approximately $26,681,000 that may be offset against future taxable income varying from the year 2024 through 2040 and indefinitely. NOLs of $4,881,000 may be carried forward indefinitely while the balance has a 20 year carryforward.  No tax benefit has been reported in the September 30, 2024, consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.