INCOME TAX

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 4 - INCOME TAX

A. Tax rates applicable to the income

U.S. corporate tax

The maximum statutory federal tax rate in the US is 21%. The Company is not subject to current federal taxes, as it has incurred losses.

Israel corporate tax

The Company’s subsidiary in Israel is subject to income tax at a regular corporate tax of 23%.

B. Deferred income taxes

As the Company has not yet generated revenues, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

	As of December 31, 2021			As of December 31, 2020
Deferred tax assets:
Deferred taxes due to carryforward losses		2,941			2,906
Valuation allowance		(2,941	)		(2,906	)
Net deferred tax asset		-			-

C. Tax loss carry-forwards

Net operating loss carry-forwards as of December 31, 2021 and 2020 are as follows:

	As of December 31,		As of December 31,
	2021		2020
Israel		5,019		4,974
United States (*)		8,509		8,392
		13,528		13,366

Net operating losses in Israel may be carried forward indefinitely. Net operating losses in the U.S. are available through 2027.

(*) Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.