Income Taxes

12 Months Ended

Sep. 30, 2023

Income Taxes [Abstract]

INCOME TAXES

NOTE 17 - INCOME TAXES

The Company recognizes deferred tax assets and liabilities for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance is established to reduce the deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.

As of September 30, 2023, the Company has net operating loss carryforwards of approximately $19,264,000 to reduce future taxable income. Of the $19,264,000, approximately $14,604,000 can be used through 2039, and $4,660,000 may be carried forward indefinitely. A valuation allowance for the entire amount of deferred tax assets has been established as of September 30, 2023 and 2022.

A reconciliation of the provision for income taxes at the federal statutory rates of 21% to the Company’s provision for income tax is as follows:

	Year Ended September 30, 2023			Year Ended September 30, 2022
U.S. Federal (tax benefit) provision at statutory rate	$	(467,320	)	$	(561,403	)
State (tax benefit) income taxes, net of federal benefit		(188,041	)		(225,898	)
Permanent differences		(64,035	)		(40,511	)
True up		28,151			78,612
Changes in valuation allowance		691,245			749,200
Total	$	-		$	-

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented:

	September 30, 2023			September 30, 2022
Deferred Tax Assets
Stock-based compensation	$	873,096		$	873,096
Accrued salary – unpaid		992,450			827,377
Net operating losses		5,673,374			5,147,202
Total deferred tax assets		7,538,920			6,847,675
Valuation allowance		(7,538,920	)		(6,847,675	)
Net deferred tax assets	$	-		$	-

The Company determines its valuation allowance on deferred tax assets by considering both positive and negative evidence in order to ascertain whether it is more likely than not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Due to the history of losses the Company has generated in the past, the Company believes that it is not more likely than not that all of the deferred tax assets in the U.S. can be realized as of September 30, 2023 and 2022, accordingly, the Company has recorded a full valuation allowance on its U.S. deferred tax assets.

The Company files income tax returns in the United States on federal basis and various states. The Company is not currently under any international or any United States federal, state and local income tax examinations for any taxable years. All of the Company’s net operating losses are subject to tax authority adjustment upon examination.