Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.24.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6 – 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,  
    2023     2022  
Income tax benefit computed at the statutory rate   $ 3,959,000     $ 3,206,000  
Tax effect of:                
True-ups and non-deductible expenses     118,000     (194,000 )
Change in valuation allowance     (4,077,000 )     (3,012,000 )
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,  
    2023     2022  
Deferred income tax assets                
Net operating losses   $ 6,672,000     $ 8,603,000  
Stock-based compensation     873,000       715,000  
Capitalized 174 expenses     5,420,000       –  
Deferred income tax liability                
Prepaid expenses     (198,000 )     (628,000 )
Valuation allowance     (12,767,000 )     (8,690,000 )
Net deferred income tax assets   $ –     $ –  

 

As of December 31, 2023, the Company has an operating loss carry forward of approximately $31,771,000, which expires commencing in 2037.