Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes

Income Taxes

Note 12 - Income Taxes

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate of 21% to the income tax amount recorded as of December 31, 2022 and 2021 are as follows:

	December 31,			December 31,
	2022			2021
Net loss for the year	$	(767,417	)	$	(94,973	)
Effective Tax rate		21	%		21	%
Tax Recovery		(161,158	)		(19,944	)
Less: Valuation Allowance		161,158			19,944
Net deferred asset	$	-		$	-

Net deferred tax assets consist of the following components as of December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022			2021
Net operating loss carryforward	$	12,020,608		$	11,859,450
Less: Valuation Allowance		(12,020,608	)		(11,859,450	)
Net deferred asset	$	-		$	-

At December 31, 2022, the Company had approximately $12,020,608 of net operating losses (“NOLs”), which begin to expire beginning in 2040. NOLs generated in tax years prior to July 31, 2018, can be carryforward for twenty years, whereas NOLs generated after July 31,2018 can be carryforward indefinitely.

The NOL carry forwards are subject to certain limitations due to the change in control of the Company pursuant to Internal Revenue Code Section 382. The Company experienced a change in control for tax purposes in April 14, 2021. Due to change of control, the Company will not be able to carryover approximately $56,378,599 of NOL generated before April 14,2021 to offset future income.