v3.26.1
NOTE 13: INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Notes  
NOTE 13: INCOME TAXES

NOTE 13: INCOME TAXES

 

The provision for income taxes consists of the following:

 

 

 

Years Ended

 

 

December 31,

 

2025

 

2024

Current:

 

 

 

 

Federal

 

$- 

 

$- 

State

 

- 

 

- 

Total current

 

- 

 

- 

 

 

 

 

 

Deferred:

 

 

 

 

Federal

 

- 

 

- 

State

 

- 

 

- 

Total deferred

 

- 

 

- 

 

 

 

 

 

Total provision for income taxes

 

$- 

 

$- 

 

 

The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the statements of operations:

 

 

 

Years Ended

 

 

December 31,

 

 

2025

%

2024

%

Tax benefit at federal statutory rate

 

($1,336,565) 

21.0%

($900,766) 

21.0%

State taxes, net of federal benefit

 

-  

0.0%

-  

0.0%

Permanent differences

 

-  

0.0%

-  

0.0%

Change in valuation allowance

 

$1,336,565  

-21.0%

$900,766  

-21.0%

Total provision for income taxes

 

-  

0.0%

-  

0.0%

 

The tax effects of temporary differences that give rise to significant components of the deferred tax assets and liabilities are as follows:

 

 

 

December 31,

 

2025

 

2024

Deferred tax assets:

 

 

 

 

Net operating loss carryforwards

 

$11,891,349  

 

$10,554,784  

Impairment

 

-  

 

-  

Other temporary differences

 

($10,893) 

 

($10,893) 

Total deferred tax assets

 

$11,880,456  

 

$10,543,891  

Less: valuation allowance

 

($11,880,456) 

 

($10,543,891) 

Net deferred tax assets

 

$-  

 

$-  

 

As of December 31, 2025, the Company had federal net operating loss ("NOL") carryforwards of approximately $56.6 million available to offset future federal taxable income. The NOL carryforwards generated after 2017 do not expire and are subject to an 80% of taxable income limitation. The Company has established a full valuation allowance against its net deferred tax assets due to the uncertainty of realizing future tax benefits from its NOL carryforwards and other deferred tax assets, as it has determined that it is more likely than not that these benefits will not be realized.

 

The change in valuation allowance for the years ended December 31, 2025 and 2024 was an increase of approximately $1.3 million and $1.0 million, respectively, due to the increase in NOL carryforwards resulting from operating losses during the respective periods, net of the reversal of the impairment-related deferred tax asset in 2024.

 

Other ASU 2023-09 Disclosures

 

 

 

 

Income taxes paid, net of refunds:

 

 

 

 

 

2025

 

2024

Federal

 

$- 

 

$- 

State and local

 

- 

 

- 

Foreign

 

- 

 

- 

Total income taxes paid, net of refunds

 

$- 

 

$-