INCOME TAX

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 8 — INCOME TAX

The Company is incorporated in the State of Delaware and is subject to a U.S. federal and state corporate income taxation. The Company is not filing as a member of the U.S. consolidated group of Collective Audience, Inc. and will file the US tax returns on a separate return basis. The tax provision has been prepared using this filing profile and does not include any activity of any entities outside of the Company.

The Company incurred net operating losses for the three and nine months ended September 30, 2024, and 2023. The Company is subject to U.S. federal corporate income tax rate of 21% and estimated state tax rate of 8.7%

As of September 30, 2024, and 2023, this company does not have any net deferred tax assets.

	September 30, 2024		December 31, 2023
Statutory tax rate		21.00%		21.00%
State income tax		8.70%		8.70%
Change in Valuation Allowance		–%		–%
True-Up		–%		–%
Change in State Rate		–%		–%
Total		29.70%		29.70%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Details of the Company’s deferred tax assets and liabilities as of September 30, 2024 and December 31, 2023 were as follows:

Deferred Tax Assets and Liabilities	September 30, 2024			December 31, 2023
Startup costs	$	–		$	–
Depreciation		–			–
Amortization		–			–
Net Operating Loss		13,687,476			4,575,314
Valuation Allowance		(13,687,476	)		(4,575,314	)
Net Deferred Tax Assets	$	–		$	–

Management has determined that it is more likely than not that the Company will not realize its net deferred tax asset, and accordingly, a valuation allowance has been deemed necessary. As of September 30, 2024, and December 31, 2023, respectively, the valuation allowance is $13,687,476 and $4,575,314.

The Company reports income tax related interest and penalties within the income tax line item on the consolidated statements of operations. The company likewise reports the reversal of income tax-related interest and penalties within such line item to the extent it resolves the liabilities for uncertain tax positions in a manner favorable to the accruals. As of September 30, 2024, and 2023, the Company has not recorded any uncertain tax positions.