NOTE 8 - INCOME TAXES (RESTATED)

12 Months Ended

Dec. 31, 2021

Notes

NOTE 8 - INCOME TAXES (RESTATED)

NOTE 8 – INCOME TAXES (RESTATED)

The provision for federal and state income taxes is associated with and included in net income from discontinued operations and consists of the following components:

	2021		2020
Current Income taxes	$		$
Federal		-		-
State		-		-
Total current income tax expenses	$	-	$	-
Deferred income taxes
Federal	$	-	$	-
State		-		-
Total current income tax expenses	$	-	$	-
Total income tax expense	$	-	$	-

The reconciliation between income taxes at the U.S. federal and state statutory rates of approximately 25.5% and the amount recorded in the accompanying consolidated financial statements is as follows:

	2021		2020
Tax expense at U.S. federal statutory rate (21%)	$	(1,079,104)	$	(2,993)
Tax expense at state statutory rate (4.5%)		(123,863)		(619)
Stock Based Compensation		479,220		-
Amortization of Debt Discount		25,961		-
Change in valuation allowance		722,509		3,612
Other		(24,723)		-
Total	$	-	$	-

We comply with GAAP, which requires the determination of deferred income taxes using an asset and liability approach, whereby deferred tax liabilities and assets are recognized for expected future tax consequences of temporary differences between carrying amounts and tax basis of asset and liabilities. Deferred balances are adjusted to reflect enacted changes in income tax rates. Due to the likelihood that the deferred assets will not be realized, a full valuation allowance has been recorded. Deferred tax assets are as follows:

	2021		2020
Federal net operating loss carryforward	$	601,639	$	2,993
State net operating loss carryforward		124,482		619
Deferred tax assets	$	726,121	$	3,612
Valuation allowance		(726,121)		(3,612)
Total net deferred tax assets	$	-	$	-

The Company has net operating losses amounting to $464,636 for federal and Florida which can be carried forward indefinitely but are limited to 80% usage.