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Income Taxes
 12 Months Ended
Dec. 31, 2021
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, 
   2021   2020 
Income tax benefit computed at the statutory rate  $2,946,000   $1,986,000 
Tax effect of:          
Non-deductible expenses   (100,000)   (70,000)
Change in valuation allowance   (2,846,000)   (1,916,000)
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, 
   2021   2020 
Deferred income tax assets          
Net operating losses  $5,763,000   $2,771,000 
Stock-based compensation   533,000    271,000 
Deferred income tax liability          
Prepaid expenses   (714,000)   (306,000)
Valuation allowance   (5,582,000)   (2,736,000)
Net deferred income tax assets  $–   $– 

 

The Company has an operating loss carry forward of approximately $27,764,000, which expires commencing in 2037.