Note 10 - Income Taxes

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 10 – INCOME TAXES - TO BE UPDATED

The Company paid no federal or state income taxes during 2023 and 2022. Income tax benefit on losses differed from the amounts computed by applying the recently enacted U.S. federal income tax rate of 21% to pretax losses as a result of the following:

	2023			2022
Income tax expense (benefit)	$	(182,493	)	$	72,207
Book and tax differences		40,577			(72,207	)
State taxes net of federal benefit		—			—
Change in valuation allowance		141,916			—
	$	—		$	—

The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets (liabilities) as of December 31, 2023 and 2022 are presented below:

	2023			2022
Deferred income tax asset	$	—		$	—
Net operating loss carryforward		7,918,996			7,736,618
Valuation allowance		(7,476,180	)		(7,363,815	)
Total deferred income tax asset		442,816			372,803
Deferred income tax liability - depreciation		(442,816	)		(372,803	)
Deferred tax asset (liability)	$	—		$	—

At December 31, 2023, the Company had net operating losses of approximately $37,000,000 that will begin to expire in 2024. The valuation allowances for 2023 and 2022 have been applied to offset the deferred tax assets in recognition of the uncertainty that such benefits will be realized.

In accordance with GAAP, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has no significant reserves for uncertain tax positions, and no adjustment to such reserves was required by GAAP. No interest or penalties have been levied against the Company and none are anticipated, therefore no interest or penalty has been included in the provision for income taxes in the consolidated statements of operations.

The Internal Revenue Code contains provisions which reduce or limit the availability and utilization of net operating loss carry forwards in the event of a more than 50% change in ownership. If such an ownership change occurs with the Company, the use of these net operating losses could be limited.