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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 8 – Income Taxes For the years ended December 31, 2024 and 2023, the Company recorded no income tax benefit for the net operating losses incurred during the year, due to the uncertainty of realizing a benefit from those items. The following is a reconciliation of the statutory federal income tax rate to the effective tax rate reported in the financial statements:
Schedule of effective income tax rate reconciliation |  |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |
U.S. federal statutory rate |  |  | 21.0% |  |  |  | 21.0% |
Effects of: |  |  |  |  |  |  |  |
State and local taxes, net of federal benefit |  |  | 4.5% |  |  |  | 4.5% |
Prior year true-ups |  |  | (1.0)% |  |  |  | (1.0)% |
Other |  |  | (0.1)% |  |  |  | (0.1)% |
Change in valuation allowance |  |  | (24.4)% |  |  |  | (24.4)% |
Effective rate |  |  | –% |  |  |  | –% |
Significant components of the Company’s deferred tax assets as of December 31, 2024 and 2023 are summarized below.
Schedule of deferred tax assets |  |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Federal net operation losses |  | $ | 4,716,750 |  |  | $ | 4,141,314 |
State net operation losses |  |  | 1,153,016 |  |  |  | 713,407 |
Stock based compensation |  |  | 840,860 |  |  |  | 731,311 |
Other assets |  |  | 154,788 |  |  |  | 12,773 |
Total deferred tax assets |  |  | 6,909,306 |  |  |  | 5,598,805 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Capitalized software |  |  | – |  |  |  | (742,450 | )
Property & equipment |  |  | (1,270 | ) |  |  | (4,451 | )
Total deferred tax liabilities |  |  | (1,270 | ) |  |  | (746,901 | )
Net deferred tax assets |  |  | 6,908,036 |  |  |  | 4,851,904 |
Valuation allowance |  |  | (6,908,036 | ) |  |  | (4,851,904 | )
Net deferred tax asset, net of valuation allowance |  | $ | – |  |  | $ | – |
For the year ended December 31, 2024, the Company has federal and state net operating loss carryforwards of $22,457,710 and $955,911, respectively. The federal net operating loss carryforwards do not have an expiration, however, are limited to 80% of the excess of taxable income over the total net operating loss deduction. The state net operating loss carryforwards will conform to the federal provisions. After weighing all available positive and negative evidence for the years ended December 31, 2024 and 2023, the Company has recorded a valuation allowance of $6,908,036 and $4,851,904, respectively. The Company continuously monitors its current and prior filing positions in order to determine if any unrecognized tax positions should be recorded. The analysis involves considerable judgement and is based on the best information available. For the years ended December 31, 2024 and 2023, the Company is not aware of any positions which require an uncertain tax position liability. The Company is subject to taxation in the United States and Colorado. The statute of limitations on the initial tax return filed for 2021 tax year will expire in 2025 for federal and in 2026 for state jurisdictions.

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