v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8- Income Taxes

 

The Company recognizes deferred income tax liabilities and assets for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company has not incurred any income tax liabilities due to accumulated net losses.

 

The Company recorded a net loss before income taxes of $35,271 for the nine months ended September 30, 2025, compared with $41,362 for the nine months ended September 30, 2024.

 

The components of the Company’s deferred tax assets and reconciliation of income taxes, computed at the combined statutory federal tax rate of 21% and the Montana state tax rate of 6.75%, as of September 30, 2025 and December 31, 2024, are as follows:

 

Schedule of deferred tax asset and reconciliation of income taxes          
   September 30, 2025  December 31, 2024
Net operating loss carryforward  $408,284   $372,770 
Effective federal tax rate   21%   21%
Effective state tax rate   6.75%   6.75%
Deferred tax asset  $113,299   $103,206 
Less: valuation allowance   (113,299)   (103,206)
Net deferred tax asset  $—   $— 

 

Due to continued losses and uncertainties regarding the Company’s ability to generate future taxable income, a full valuation allowance has been established to offset deferred tax assets. The increase in the valuation allowance during the nine months ended September 30, 2025 was approximately $10,093.

 

For federal purposes, NOLs arising in tax years beginning after December 31, 2017 do not expire and are subject to an 80% of taxable income limitation. State NOL carryforwards may have different expiration and limitation rules.

 

The Company has adopted the provisions of ASC 740, Income Taxes, relating to uncertainty in income tax positions. Management has concluded that there were no material uncertain tax positions as of September 30, 2025 or December 31, 2024. The Company’s tax returns for years 2018 forward remain subject to examination by major taxing authorities.