Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 18 - INCOME TAXES

 

As of December 31, 2023, we estimate we will have net operating loss carryforwards available to offset future federal income tax of approximately $26.5 million. These carryforwards will expire between the years 2029 through 2038. Under the Tax Reform Act of 1986, the amount of and the benefit from net operating losses that can be carried forward may be limited in certain circumstances. Events that may cause changes in our tax carryovers include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Therefore, the amount available to offset future taxable income may be limited. We carry a deferred tax valuation allowance equal to 100% of total deferred assets. In recording this allowance, we have considered a number of factors, but chiefly, our operating losses from inception. We have concluded that a valuation allowance is required for 100% of the total deferred tax assets as it is more likely than not that the deferred tax assets will not be realized.

 

 

The non-current deferred tax asset is summarized below:

 

    2023     2022  
             
Deferred tax assets                
Net operating loss carry forwards   $ 6,800,000     $ 6,245,000  
Intangible and fixed assets     5,000      

75,000

  
Other     15,000       50,000  
Total deferred tax assets     6,820,000       6,370,000  
           
Deferred tax liabilities            
Depreciation and amortization     -       -
Valuation allowance     (6,820,000 )     (6,370,000 )
Net deferred tax asset   $ -     $ -  

 

The benefit for income taxes differed from the amount computed using the U.S. federal income tax rate of 21% for December 31, 2023 and 2022, as follows:

 

    2023     2022  
             
Income tax benefit   $ 500,000     $ 570,000
Non-deducible items     (2,000 )     (18,000 )
State and other benefits included in valuation     (7,000 )     103,000  
Provision to return adjustments     -      

55,000

  
Impairment of intangible assets     -      

82,000

  
Impairment of investment    

(38,000

 )     -  
Exclusion of income (losses) of pass-through entity     (3,000 )     55,000  
Other     -       43,000  
Change in valuation allowance     (450,000 )     (890,000 )
Income tax benefit   $ -     $ -