NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)

3 Months Ended

Mar. 31, 2023

Policies

Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. For the period ending March 31, 2022 and March 31, 2023, the Company did not have any amounts recorded pertaining to uncertain tax positions.

The following is accounting our operating loss carry-forward since our inception:

NOL Carryforward:		Year Total		Balance	Est Tax Benefit
2014 (Estimated Tax Rate 15%)	$	(19,500)	$	(19,500)	(2,925)
2015 (Estimated Tax Rate 15%)		(730,872)		(750,372)	(109,631)
2016 (Estimated Tax Rate 15%)		(3,370,935)		(4,121,307)	(505,640)
2017 (Estimated Tax Rate 15%)		(3,562,075)		(7,683,382)	(534,311)
2018 (Estimated Tax Rate 21%)		(3,329,517)		(11,012,899)	(699,199)
2019 (Estimated Tax Rate 21%)		632,776		(10,380,123)	132,883
2020 (Estimated Tax Rate 21%)		(2,576,375)		(12,956,498)	(541,039)
2021 (Estimated Tax Rate 21%)		(1,987,122)		(14,943,620)	(417,296)
2022 (Estimated Tax Rate 21%)		(983,122)		(15,926,742)	(206,456)
2023 (Estimated Tax Rate 21%)		(579,157)		(16,505,899)	(121,623)
Total of NOL Carryforward				(16,505,899)	(3,005,237)

Most of the net operating loss carry-forward has been created through continuing operations.  In 2020, the Company wrote-off $1.58M due to the goodwill impairment from the purchase of Ultimate Brain Nutrients, LLC.  If we use the highest federal tax rate from 2022 and 2021 of 21% we would have a tax benefit, due to the net operating loss carry-forward of ($2,883,614) and ($2,677,158) respectively.  Due to being a Nevada corporation, we don’t have any state taxes due.  Pursuant to Sec. 172(b)(3) of the Internal Revenue Code, the Company relinquish the entire carryback period with respect to the net operating loss incurred for the tax year ended above, and will have such losses available for carryforward only due to the negative earnings.  All of the above listed carryforward balances will be subject to the carryover limit of 80% to offset future earnings for up to 20 years.