INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 – INCOME TAXES

The Company’s net deferred tax assets at December 31, 2023 and 2022 is approximately $7.1 million and $4.1 million, respectively, which primarily consists of net operating loss carry forwards and various accruals. As of December 31, 2023 and 2022, the Company provided a 100% valuation allowance against the net deferred tax assets. During the years ended December 31, 2023 and 2022, the valuation allowance increased by approximately $3.0 million and $1.7 million, respectively.

At December 31, 2023 and 2022, the applicable federal rate used in calculating the deferred tax provision was 21%.

The Company is subject to tax in the United States (“U.S.”) and files tax returns in the U.S. Federal jurisdiction and California state jurisdiction. The Company is subject to U.S. Federal, state and local income tax examinations by tax authorities for all periods starting in 2020. The Company currently is not under examination by any tax authorities.