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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
INCOME TAXES

NOTE 9 – INCOME TAXES

 

The Company maintains deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax assets on December 31, 2023 and 2022 consist of net operating loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of the attainment of future taxable income.

 

The Company has incurred aggregate net operating losses of approximately $26,782,280 for income tax purposes as of December 31, 2023. The net operating losses carry forward for United States income taxes, which may be available to reduce future years’ taxable income. Management believes that the realization of the benefits from these losses appears unlikely due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset resulting from the net operating losses to reduce the asset to zero. Management will review this valuation allowance periodically and make adjustments as necessary.

 

The items accounting for the difference between income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2023 and 2022 were as follows: 

 

   Year Ended
December 31,
2023		   Year Ended
December 31,
2022		 
Income tax benefit at U.S. statutory rate  $(1,765,044)  $(2,549,100)
Income tax benefit – State   (420,248)   (606,929)
Non-deductible (income) expenses   587,344    1,170,555 
Change in valuation allowance   1,597,948    1,985,474 
Total provision for income tax  $
-
   $
-
 

 

The Company’s approximate net deferred tax asset on December 31, 2023 and 2022 was as follows:

 

Deferred Tax Asset:  December 31,
2023		   December 31,
2022		 
Net operating loss carryforward  $6,963,393   $5,365,445 
Valuation allowance   (6,963,393)   (5,365,445)
Net deferred tax asset  $
-
   $
-
 

 

Of the $26,782,280 of available net operating losses, $1,403,306 begins to expire in 2034 and $25,378,974 which were generated after 2018 can be utilized indefinitely subject to annual usage limitations.

 

The Company provided a valuation allowance equal to the deferred income tax asset for the years ended December 31, 2023 and 2022 because it was not known whether future taxable income will be sufficient to utilize the loss carryforward. The increase in the allowance was $1,597,948 and $1,985,474 in years 2023 and 2022.

 

Additionally, the future utilization of the net operating loss carryforward to offset future taxable income may be subject to an annual limitation as a result of ownership changes that could occur in the future. If necessary, the deferred tax assets will be reduced by any carryforward that expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.

 

The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2020, 2021, 2022 and 2023 Corporate Income Tax Returns are subject to Internal Revenue Service examination.