Note 3 - Taxes on Income

Income tax expense is $‑0‑ for both 2020 and 2019, including $‑0‑ in current taxes and $‑0‑ in deferred taxes for both 2020 and 2019.

A reconciliation of income tax expense recognized to income taxes at statutory rates is as follows:


	Year Ended December 31,
	2020		2019

Tax benefit computed at statutory rates (21% in 2020 and 2019)	$	(5,200)	$	(4,200)

Change in valuation allowance		(5,200)		(4,200)

Income tax expense	$	0	$	0

At December 31, 2020, the Company has net operating loss carryforwards (“NOLs”) of approximately $450,000 that can be used to offset future taxable income, and such NOLs result in a gross deferred tax asset of approximately $94,500 at that date. These NOLs expire in varying amounts through 2037 for losses prior to 2018, and the NOLs generated in 2018 and thereafter have no expiration date. Realization of these NOLs is subject to annual limitations under current IRS regulations pursuant to change in control provisions and is dependent on the existence of future taxable income. At December 31, 2020 and 2019, a valuation allowance has been recognized for the entire amount of the Company’s net deferred tax asset. The valuation allowance increased by $5,200 in 2020, increasing from $88,000 at December 31, 2019 to $93,500 at December 31, 2020.