INCOME TAXES

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

(10) INCOME TAXES

The Company provides for income taxes under ASC 740, Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.

The Company recorded $0 provision for income taxes for the years ended March 31, 2024, and 2023.

The income tax provision differs from the amount of income tax determined by applying the U.S. federal tax rate of 21% to pretax income from continuing operations for the years ended March 31, 2024, and 2023, due to the following:

	2024			2023
Income tax benefit at U. S. federal statutory rates:	$	(385,348	)	$	(590,516	)
State tax, net of federal benefit	$	(67,408	)		(109,962	)
Permanent and other differences		258,483			463,012
Change in valuation allowance		194,273			223,229
Other					14,237
	$	-		$	-

The tax effects of significant items comprising the Company’s net deferred taxes as of March 31, 2024, and 2023 were as follows:

	2024			2023
Deferred Tax assets:
Net operating loss carry forwards	$	7,620,722		$	7,387,464
Stock and warrant compensation		479,708			479,708
Valuation allowance		(8,100,430	)		(7,867,172	)
Net deferred tax asset	$	-		$	-

The Company assesses the need for a valuation allowance against its deferred income tax assets at March 31, 2024. Factors considered in this assessment include recent and expected future earnings and the Company’s liquidity and equity positions. The Company has placed a 100% valuation allowance on the deferred tax assets. The deferred tax assets primarily relate to net operating loss carryforwards.

As of March 31, 2024, the Company has U.S. federal net operating loss carryforwards of $30,822,643. These carry forwards are available to offset future taxable income, if any, and begin to expire in 2025 . The utilization of the net operating loss carry forwards is dependent upon the tax laws in effect at the time the net operating loss carry forwards can be utilized and may be significantly limited based on ownership changes within the meaning of section 382 of the Internal Revenue Code.

Under FASB ASC 740-10-05-6, tax benefits are recognized only for the tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the company’s tax return that do not meet these recognition and measurement standards.

The Company had no liabilities for unrecognized tax benefits and the Company has recorded no additional interest or penalties.