Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 7. Income Taxes

There was no income tax expense reflected in the results of operations for the quarter ended March 31, 2025 and the year ended December 31, 2024, because the Company carried forward net losses for tax purposes.

As of March 31, 2025 and December 31, 2024, the Company had federal net operating loss carry forwards of $664,000 and $707,000, respectively, and state net operating loss carryforwards of $2,546,000 and $2,568,000, respectively, which may be used to offset future taxable income. The remaining federal NOL's will not expire but will be limited to 80% of taxable income. The Pennsylvania NOL's began to expire in 2024, with $1,307,000 expiring by 2032. The remaining Pennsylvania NOL's expire in 20 years and the Florida NOL's will not expire.

The tax effects of temporary differences which give rise to deferred tax assets (liabilities) are summarized as follows:

	March 31, 2025			December 31, 2024
Deferred tax assets/(liabilities)
Net operating loss carryforward	$	336,700		$	595,300
R&D Credits		39,000			41,300
Stock-based compensation		600			—
Operating lease assets		300			800
Capitalize research & development costs		81,300			73,400
Depreciation & amortization		900			600
Total deferred tax assets		458,800			711,400
Valuation allowance		(458,800	)		(711,400	)
Net	$	—		$	—

For the quarter ended March 31, 2025, the net decrease in valuation allowance was $252,600.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. 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. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability.

Reconciliation of the statutory federal income tax to the Company's effective tax:

	March 31, 2025						December 31, 2024
	Amount			%			Amount			%
Statutory federal tax rate		5,300			21.00			(568,900	)		(21.00	)
State tax, net of federal benefit		3,100			12.00			(272,900	)		(10.00	)
NOL adjustment and other attributes		244,200			959.00			(168,000	)		(6.00	)
Stock based compensation		—			—			1,027,100			38.00
Other		—			—			(136,300	)		(5.00	)
Valuation allowance		(252,600	)		(992.00	)		119,000			4.00
Provision (Benefit) for income taxes		—			—			—			—

Internal Revenue Code Section 382 limits the ability to utilize net operating losses if a 50% change in ownership occurs over a three-year period. Such limitation of the net operating losses may have occurred, but we have not analyzed it at this time as the deferred tax asset is fully reserved.

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. The Company did not recognize any interest or penalties during 2024 related to unrecognized tax benefits.

Tax years 2021 through 2024 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which the Company is subject.