| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. As of March 31, 2024, and March 31, 2023, the Company did not have any cash equivalents. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company provides for probable uncollectible amounts based upon its assessment of the current status of the individual receivables and after using reasonable collection efforts. The allowance for doubtful accounts as of March 31, 2024 and 2023 was zero. Inventory Inventory, consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”). If necessary, the Company provides allowances to adjust the carrying value of its inventories to NRV when NRV is below cost. There were no such adjustments in 2024 or 2023. Revenue Recognition Revenue from sales of products is recognized when the related performance obligation is satisfied. The Company’s performance obligation is satisfied upon the shipment or delivery of products to customers. The Company’s products are sold on cash and credit terms which are established in accordance with standardized industry practices and typically require payment within 30 days of delivery. Shipping and Handling Costs Shipping and Handling Costs incurred to move finished goods from our distribution center to customer locations are included in the line Selling, General and Administrative Expenses in our Statements of Operations. Net Income/(Loss) Per Common Share The Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “ Income Taxes The Company provides for income taxes using the 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. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company did not have a deferred tax liability at March 31, 2024 and 2023. As of March 31, 2024, and March 31, 2023, the Company had no accrued interest or penalties. The Company had no Federal or State tax examinations in the past nor does it have any at the current time. The table below shows the details of the Net Operating Loss Carryforward and Deferred Tax Assets for 2024 and 2023: 2024 2023 Net Operating Loss Carryforward, January 1 $ 3,616,513 $ 3,796,573 Taxable Income, January 1 to March 31 35,607 18,477 Net Operating Loss Carryforward, March 31 $ 3,580,906 $ 3,778,096 Federal Deferred Tax Asset, January 1 759,468 797,280 Federal Tax Expense as of March 31 (21% Tax Rate) (7,477 ) (3,880 ) Federal Deferred Tax Asset, March 31 $ 751,991 $ 793,400 State of New Jersey Deferred Tax Asset, January 1 324,678 341,692 State of New Jersey Tax Expense as of March 31 (9% Tax Rate) (3,205 ) (1,663 ) State of New Jersey Deferred Tax Asset, March 31 $ 321,473 $ 340,029 Total Deferred Tax Asset, March 31 $ 1,073,464 $ 1,133,429 Total Tax Expense $ 10,682 5,543 The table below shows the reconciliation of Net Income / (Loss) per Books to Taxable Income: 2024 2023 Net Income/(Loss) before Taxes $ (102,378 ) $ 4,485 Stock Awards 137,985 13,992 Taxable Net Income $ 35,607 $ 18,477 Fair value of financial instruments The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable and accrued expense, approximate their fair values due to their short-term nature. |
