Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.24.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
INCOME TAXES

NOTE 17 - INCOME TAXES

 

The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The deferred tax assets on December 31, 2023 and 2022 consist only 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 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:

 

    2023     2022  
Income tax expense (benefit) at U.S. statutory rate   $ 396,229     $ (1,081,240 )
Non-deductible expenses     (64,617 )     506,677  
Change in valuation allowance     (331,612 )     574,563  
Total provision for income tax   $
-
     $
-
  

  

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

 

 

Deferred Tax Asset:

   December 31,
2023		     December 31,
2022		  
Net operating loss carryforward   $ 2,176,983     $ 2,512,665  
Allowance for bad debt     4,070      
-
  
Total deferred tax asset before valuation allowance     2,181,053       2,512,665  
Valuation allowance     (2,181,053 )     (2,512,665 )
Net deferred tax asset   $
-
     $
-
  

 

The net operating loss carryforward was approximately $10,386,000 on December 31, 2023. The Company provided a valuation allowance equal to the net deferred income tax asset as of December 31, 2023 and 2022 because it was not known whether future taxable income will be sufficient to utilize the loss carryforward. During the year ended December 31, 2023, the valuation allowance decreased by $331,612. Additionally, the future utilization of the net operating loss carryforward to offset future taxable income is subject to an annual limitation as a result of ownership changes that may occur in the future. The potential tax benefit arising from the loss carryforward may be carried forward indefinitely subject to usage limitations.

 

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