INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 16 – INCOME TAXES

At December 31, 2022 and 2021, the Company’s deferred income tax assets and liabilities were as follows:

	December 31, 2022			December 31, 2021
Deferred tax asset
Net operating loss carryforwards	$	3,294,899		$	2,502,422
Total deferred tax asset		3,294,899			2,502,422
Less: valuation allowance		(3,294,899	)		(2,502,422	)
Total deferred tax asset		-			-
Total deferred tax liabilities		-			-
Net deferred tax asset (liabilities)	$	-		$	-

The valuation allowance increased by $583,019 during the year ended December 31, 2022, as a result of the Company’s net operating losses for the year ended December 31, 2022. The Company has net operating loss carryforwards of approximately $2,776,282 for both U.S. federal and state tax purposes as of December 31, 2022. Utilization of the net operating loss and tax credit carryforwards is subject to a substantial annual limitation due to the “ownership change” limitations provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, and other similar state provisions. Any annual limitation may result in the expiration of net operating loss and tax credit carryforwards before utilization.

The Company has not recorded any income tax expense or benefit in the consolidated statements of operations for the years ended December 31, 2022 and 2021, due to the benefit of net operating losses in these periods.

The Company periodically evaluates the likelihood of the realization of deferred tax assets and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors.

Future changes in the unrecognized tax benefit will have no impact on the effective tax rate due to the existence of the valuation allowance. The Company estimates that the unrecognized tax benefit will not change significantly within the next twelve months. The Company classifies income tax penalties and interest as part of general and administrative expense in its consolidated statements of operations. There were no interest or penalties accrued as of December 31, 2022 and 2021.

In the normal course of business, the Company is subject to examination by taxing authorities, for which the Company’s major tax jurisdictions are the United States and various states for their tax return filed from 2020 to 2021.