Income taxes

12 Months Ended

Dec. 31, 2023

Income taxes

Income taxes

10. Income taxes   

The Company did not provide any current or deferred US federal income tax provision or benefit for the years ending December 31, 2023 and 2022 as they incurred tax losses during both of these years.

When it is more likely than not, that a tax asset cannot be realized through future income, the Company must record an allowance against any future potential future tax benefit. We have provided a full valuation allowance against the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that the Company will not earn income sufficient to realize the deferred tax assets during the carry forward periods.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the year ended December 31, 2023 and 2022 as defined under ASC 740, "Accounting for Income Taxes."

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes.

The sources and tax effects of the differences for the periods presented are as follows:

	Years Ended
	December 31, 2023			December 31, 2022
U.S. statutory federal income tax rate		21	%		21	%
State income taxes		5	%		5	%
Change in valuation allowance	(26		%)	(26		%)
Effective income tax rate		0	%		0	%

A reconciliation of the income taxes computed at the statutory rate is as follows:

	Years Ended
	December 31, 2023			December 31, 2022
Tax credit (expense) at statutory rate (26%)	$	104,564		$	153,940
Increase in valuation allowance		(104,564	)		(153,940	)
Net deferred income tax asset	$	—		$	—

As of December 31, 2023 and 2022, the Company had a federal net operating loss carryforward of approximately $860,000 and $457,000, respectively. The federal net operating loss carryforward do not expire but may only be used against taxable income to 80%. No tax benefit has been reported in the financial statements. The annual offset of this carryforward loss against any future taxable profits may be limited under the provisions of Internal Revenue Code Section 381 upon any future change(s) in control of the Company.