Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.23.1
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6 – Income Taxes

 

As of December 31, 2022, the Company has net operating loss carryforwards (“NOL”) of approximately $1,796,000, which is available to reduce future taxable income, for federal and state income taxes, respectively. The NOL is scheduled to expire in 2037. At the current federal tax rate of 21% and including book to tax differences result in the current NOL of $319,000 at December 31, 2022. The Company has no income tax effect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets. During the year ended December 31, 2022, the Company has increased the valuation allowance from $181,000 to $319,000.

 

The tax effect of the carry forwards that give rise to deferred tax assets at December 31, 2022 consists of the following:

 Schedule of Deferred Tax Assets

 

    2022     2021  
Deferred tax assets:                
Net operating loss   $ 319,000     $ 181,000  
Total deferred tax assets     319,000     $ 181,000  
Valuation allowance     (319,000 )     (181,000 )
Deferred tax asset, net of allowance   $ —     $ -  

 

A reconciliation of the statutory income tax rate and the Company’s effective tax rate is as follows:

 Schedule of Effective Income Tax Rate Reconciliation

 

    2022     2021  
Statutory U.S. federal rate     21.0 %     21.0 %
Book to tax differences     (6.0 )%     (6.0 )%
Valuation allowance     (15.0 )%     (15.0 )%
Effective tax rate     0.0 %     0.0 %