INCOME TAXES

12 Months Ended

Dec. 31, 2022

INCOME TAXES

INCOME TAXES

NOTE 10 - INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company recorded the valuation allowance due to the uncertainty of future realization of federal and state net operating loss carryforwards. The deferred income tax assets are comprised of the following at December 31, 2022 and 2021:

	2022			2021
Deferred income tax assets:	$	13,342,160		$	12,899,777
Valuation allowance		(13,342,160	)		(12,899,777	)
Net deferred tax asset	$	-		$	-

Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2022 and 2021:

	2022			2021
Effective Tax Rate Reconciliation:
Federal statutory tax rate		21.0	%		21.0	%
State taxes, net of federal benefit		0.0	%		0.0	%
Change in valuation allowance		(21.0	)%		(21.0	)%
Effective tax rate		0.0	%		0.0	%

As of December 31, 2022, the Company had net operating loss carryforwards of approximately $64,627,455 and net operating loss carryforwards expire in 2022 through 2030. The current year’s net operating loss will carryforward indefinitely, limited to 80% of the current year taxable income.

The current income tax benefit of $442,383 generated for the year ended December 31, 2022 was offset by an equal increase in the valuation allowance. The valuation allowance was increased due to uncertainties as to the Company’s ability to generate sufficient taxable income to utilize the net operating loss carryforwards which is the only significant component of deferred taxes.

The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expense. As of December 31, 2022 and 2021 the Company has no unrecognized uncertain tax positions, including interest and penalties.