Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

There was no income tax expense reflected in the results of operations for the years ended December 31, 2023 and 2022. As of December 31, 2022, the Company had federal and state net operating loss carryforwards of $91,900,000 which may be used to offset future taxable income.

Approximately $64,629,000 will expire in 2033 while $27,226,000 will be limited to 80% of taxable income but will not expire.

The tax effects of temporary differences which give rise to deferred tax assets (liabilities) are summarized as follows:

Deferred tax assets:

	2023			2022
Net operating losses	$	19,423,000		$	19,423,000
Temporary differences		893,000			893,000
Total deferred tax assets		18,530,000			18,530,000
Valuation allowance		(18,530,000	)		(18,530,000	)
Total deferred tax assets, net	$	-		$	-

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the realization of future taxable income during the periods in which those temporary differences become deductible. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding realizability.

	For the year ended December 31,
	2023			2022
Statutory federal tax rate		21.00	%		21.00	%
Permanent differences		(17.2	)%		(17.2	)%
Temporary differences		(25.3	)%		(25.3	)%
Valuation allowance		21.5	%		21.5	%
Effective tax rate		0.0	%		0.0	%
Provision for income taxes		-			-

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of December 31, 2022, and 2021, the Company had no unrecognized tax benefits. There were no changes in the Company’s unrecognized tax benefits during the years ended December 31, 2022 and 2021. The Company did not recognize any interest or penalties during fiscal 2022 or 2021 related to unrecognized tax benefits.