XML 190 R15.htm IDEA: XBRL DOCUMENT v3.22.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 9 – Income Taxes

 

The Company accounts for income taxes in accordance with ASC Topic No. 740. This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. Income tax returns open for examination by the Internal Revenue Service consist of tax years ended December 31, 2018 through 2020.

 

The Company has available at December 31, 2021, unused operating loss carryforwards of approximately $26,342,855 which may be applied against future taxable income and which expire in various years through 2040. However, if certain substantial changes in the Company’s ownership should occur, there could be an annual limitation on the amount of net operating loss carryforward which can be utilized. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the loss carryforwards and other temporary differences of approximately $6,771,000 and $4,170,100 at December 31, 2021 and 2020, respectively, and, therefore, no deferred tax asset has been recognized for the loss carryforwards.

 

Deferred tax assets are comprised of the following:

 

   2021   2020 
Deferred tax assets:          
NOL carryover  $6,729,300   $4,184,400 
Depreciation   41,700    (14,300)
Valuation allowance   (6,771,000)   (4,170,100)
Net deferred tax asset  $-   $- 

 

The reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate (21%) to the Company’s effective tax rate for the years ended December 31, 2021 and 2020 is as follows:

 

   2020   2019 
Book Loss  $(1,572,500)  $(1,472,000)
Depreciation   (25,700)   13,500 
Meals & Entertainment   500    200 
Stock Compensation   340,521    177,333 
Change in valuation allowance   1,257,179    1,280,967 
Provision for Income Taxes  $-   $-