Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 16: Income Taxes

Deferred income taxes result from the temporary differences primarily attributable to amortization of intangible assets and debt discount and an accumulation of net operating loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in deferred tax assets are Federal and State net operating loss carryforwards of approximately $60.7 million and $13.6 million, respectively, which will expire through 2040. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Due to significant changes in the Company’s ownership, the Company’s future use of its existing net operating losses may be limited.

For the years ended December 31, 2024, and 2023, the expected tax expense (benefit) based on the U. S. federal statutory rate is reconciled with the actual tax provision (benefit) as follows:

	For the Years Ended December 31,
	2024					2023
Expected tax at statutory rates	$	(528,000	)	21	%	$	(3,463,000	)	21	%
Permanent Differences		(4,000	)	0	%		7,000		0	%
State Income Tax, Net of Federal benefit		1,019,000		(62	)%		(418,000	)	1	%
Other		1,564,000		(41	)%		(95,000	)	2	%
Current Year Change in Valuation Allowance		(2,051,000	)	82	%		3,969,000		(24	)%
Prior Year True-Ups		-		0	%		-		0	%
Income tax expense	$	-		0	%	$	-		0	%

Deferred income taxes reflect the tax impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations.

Deferred income taxes include the net tax effects of net operating loss (NOL) carryforwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2024, and 2023, significant components of the Company’s deferred tax assets are as follows:

	As of
	December 31, 2024			December 31, 2023
Deferred Tax Assets (Liabilities):
Accrued payroll	$	141,000		$	141,000
ASC842-ROU Asset		-			-
ASC842-ROU (Liability)		822,000			822,000
Loss from derivatives		(869,000	)		(16,000	)
Waiver and commitment fee shares		-			-
Stock based compensation		(304,000	)		(171,000	)
Depreciation		3,000			3,000
Net operating loss		12,462,000			13,529,000
Net deferred tax assets (liabilities)		12,255,000			14,308,000
Valuation allowance		(12,255,000	)		(14,308,000	)
Net deferred tax assets (liabilities)	$	-		$	-