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NOTE 16 – INCOME TAXES
The provision for income taxes consisted of the following:
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December 31, 2025
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Current:
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Federal
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$ |
- |
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State
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$ |
1,500 |
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Total
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$ |
1,500 |
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Deferred
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|
|
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Federal
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$ |
- |
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State
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$ |
- |
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Total
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$ |
- |
|
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|
|
|
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Provision for income taxes
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|
$ |
1,500 |
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The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows:
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12/31/2025
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Book income at federal statutory rate, 21%
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$ |
20,917 |
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State Adjustments
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(315 |
) |
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State Capital Taxes
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1,500 |
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State taxes, net of federal benefit
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20,512 |
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Permanent Items
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|
505 |
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Prior Year Deferred Tax Asset/(L) True Up
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- |
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Valuation Allowance
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(41,619 |
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Federal research & development credit generated
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- |
|
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$ |
1,500 |
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Deferred income taxes reflect the net effects of temporary difference between the carrying amounts of assets and liabilities for financial reporting purposes the amounts used for income tax purposes. Significant components of deferred tax assets are as follows:
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Deferred tax assets/(liabilities)
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12/31/2025
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Federal Net operating loss carryovers
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$ |
267,497 |
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New Jersey Net operating loss carryovers
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|
150,659 |
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Federal R&D Credit
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|
316,772 |
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New Jersey R&D Credit
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|
|
- |
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Depreciation & Amortization
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155,184 |
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Allowance For Doubtful Accounts
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364,969 |
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Stock Comp Expense
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42,715 |
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Gross deferred tax assets
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1,297,796 |
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Valuation allowance
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(1,297,796 |
) |
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Total deferred tax assets
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$ |
- |
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