XML 34 R20.htm IDEA: XBRL DOCUMENT v3.22.1
TAXES ON INCOME
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

NOTE 14 - TAXES ON INCOME

 

The Company is subject to income taxes under the Israeli and U.S. tax laws:

 

Corporate tax rates

 

The Company is subject to Israeli corporate tax rate of 23% for the years ended 2021 and 2020.

 

The Company is subject to a blended U.S. tax rate (Federal as well as state corporate tax) of 21% for the years ended December 31, 2021 and 2020.

 

As of December 31, 2021 and 2020, the Company generated accumulated net operating losses in Israel of approximately $26,623 and $19,773, respectively, which may be carried forward and offset against taxable income in the future for an indefinite period.

 

As of December 31, 2021 and 2020, the Company generated accumulated net operating losses in the U.S. of approximately $496,950 and $492,487, respectively. Net operating losses in the United States are available through 2035. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

 

The Company is still in its development stage and has not yet generated revenues, therefore, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

 

   2021   2020 
   For the Years Ended December 31, 
   2021   2020 
         
Net operating loss carry-forward  $523,573   $512,260 
           
Total deferred tax assets   109,950    107,574 
Valuation allowance   (109,950)   (107,574)
Net deferred tax assets  $-   $- 

 

Reconciliation of Income Taxes:

 

The following is a reconciliation of the taxes on income assuming that all income is taxed at the ordinary statutory corporate tax rate in Israel and the effective income tax rate:

 

   For the Years Ended December 31, 
   2021   2020 
         
Net loss in Israel  $6,853   $4,042 
Net loss in U.S.  $4,460   $5,127 
Statutory tax rate   21%-23%    21%-23% 
Income Tax under statutory tax rate   2,513    2,005 
Change in valuation allowance   (2,513)   (2,005)
Actual provision for income tax  $-   $-