Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.23.1
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 7 – Income Taxes 

 

The Company is subject to United States federal income taxes at an approximate rate of 21%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows: 

               
    Year Ended     Year Ended  
    December 31,     December 31,  
    2022     2021  
Income tax benefit computed at the statutory rate   $ 3,206,000     $ 3,042,000  
Tax effect of:                
True-ups and non-deductible expenses     (194,000 )     (100,000 )
Change in valuation allowance     (3,012,000 )     (2,942,000 )
Provision for income taxes   $ –     $ –  

 

Significant components of the Company’s deferred tax assets and liabilities after applying enacted corporate income tax rates are as follows: 

               
    As of     As of  
    December 31,     December 31,  
    2022     2021  
Deferred income tax assets                
Net operating losses   $ 8,603,000     $ 5,860,000  
Stock-based compensation     715,000       533,000  
Deferred income tax liability                
Prepaid expenses     (628,000 )     (715,000 )
Valuation allowance     (8,690,000 )     (5,678,000 )
Net deferred income tax assets   $ –     $ –  

 

As of December 31, 2022, the Company has an operating loss carry forward of approximately $40,966,000, which expires commencing in 2037.