Income Taxes

6 Months Ended

Jun. 30, 2024

Note 6 – Income Taxes

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Pursuant to FASB ASC Topic 740, when it is more likely than not that a tax asset cannot be realized through future income, the Company must provide an allowance for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry-forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry-forward period. The Company records estimated losses from interest and penalties arising from taxes remitted late as well as unrecognized tax benefits as they are incurred as general and administrative expenses. The Company did not have accrued interest or penalties related to income taxes as of December 31, 2023 or 2022. The Company has not filed its 2023 and 2022 tax returns as of the date of this filing.

The sources and tax effects of the temporary differences for the periods presented are as follows (rounded to the nearest thousand):

	June 30,			December 31,
	2024			2023
Net operating loss carry forward	$	4,796,000		$	4,451,000
Applicable Canadian Federal and Provincial tax rates		26.5	%		26.5	%
Deferred tax asset related to net operating losses	$	1,270,000		$	1,202,000
Deferred tax asset relating to debt discounts and derivative liability (at 26.5%)		—			—
Valuation allowance		(1,270,000	)		(1,202,000	)

Net deferred tax asset	$	—		$	—

The Company did not pay any income taxes during the six months ended June 30, 2024, or since inception.

The net federal operating loss carry forward will begin to expire in 2026. This carry forward may be limited upon the consummation of a business combination under IRC Section 381. Tax years commencing at inception remain open for examination by the IRS, where applicable.

- Definition

The entire disclosure for income tax.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DLT Resolution Inc. 10-Q