Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes

INCOME TAXES

14. Income Taxes

There were no income tax expenses reflected in the results of operations for the years ended December 31, 2023 and 2022.

	For the years ended December 31,
	2023			2022
Net income (loss) per book	$	(2,618,965	)	$	113,445
Federal statutory income tax rate		-			23,823
State income tax, net of federal benefit		-			(114,230	)
Employee Retention Credit		-			(621,560	)
Non-deductible amortization		433,021			164,848
Other		-			11,364
Valuation allowance		2,185,944			535,756
Income tax	$	-		$	-

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

	For the years ended December 31,
	2023			2022
Net operating loss carry forwards	$	1,381,803		$	846,059
Right of use assets		-			4,202
Fixed assets		(41,359	)		(17,785
Total deferred tax assets		1,340,444			832,476
Valuation allowance		(1,340,444	)		(832,476	)
Net deferred tax assets	$	-		$	-

The Company had net operating losses of approximately $6,647,817 for both federal and state that were generated in the current year which do not expire but are subject to an 80% utilization against future taxable income.

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.

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of December 31, 2023 and 2022, the Company had no unrecognized tax benefits. There were no changes in the Company’s unrecognized tax benefits during the years ended December 31, 2023 and 2022. The Company did not recognize any interest or penalties during the 2023 and 2022 fiscal year related to unrecognized tax benefits.