Eva Live Inc Income Taxes Disclosure

NOTE 10 – INCOME TAXES

 

The Company has calculated income taxes using the asset and liability method of accounting. We have computed deferred income taxes by multiplying statutory rates applicable to estimated future-year differences between the financial statement and tax basis carrying amounts of assets and liabilities.

 

The income tax provision is summarized as follows:

 SCHEDULE OF INCOME TAX PROVISION RATE

		2025				2024
Federal corporate income tax rate			21	%			21	%
State corporate income tax rate			0	%			0	%
Total corporate income tax rate			21	%			21	%

 

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITY

		Deferred Tax Assets/Liability
Income Tax		December 31, 2025								December 31, 2024
		Book value				Tax value				Book value				Tax value
Income (Loss) per Books
M-1 Differences:			8,127,313				1,706,736				(3,753,268	)			(788,186	)
Stock/options issued for services			-				-				5,561,500				1,167,915
Depreciation and amortization			98,395				20,663				-				-
Tax income (loss)			8,225,708				1,727,399				1,808,232				379,729
Prior Year NOL (excluding state tax)			(6,157,239	)			(1,293,020	)			(7,965,471	)			(1,672,749	)
Cumulative NOL			2,068,469				434,379				(6,157,239	)			(1,293,020	)

 

SCHEDULE OF INCOME TAX PROVISION

		December 31, 2025				December 31, 2024
Net operating loss carryforwards			(434,379	)			1,293,020
Stock/options issued for services			-				1,167,915
Depreciation and amortization			20,663				-
Valuation allowance			(413,716	)			(2,460,935	)
Total			-				-
Tax at the statutory rate (21%)			1,706,736				(788,186	)
State tax benefit, net of federal tax effect			-				-
Change in the valuation allowance.			(1,706,736	)			788,186
Total			-				-

 

For the fiscal year ended December 31, 2025, and 2024, the Company had cumulative net income and net losses of $8,127,313 and $3,753,268, respectively, available for carryforward to offset future taxable income, which begins to expire in 2035. The Company has determined to provide full valuation allowances for our net deferred tax assets at the end of 2023 and 2022, including NOL carryforwards generated during the years. Based on its evaluation of positive and negative evidence, including our history of operating losses and the uncertainty of generating future taxable income, it would enable us to realize our deferred tax assets.

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that we may not be able to realize some portion or all of the deferred tax assets. The ultimate realization of the deferred tax assets depends on generating future taxable income when those temporary differences become deductible.

 

Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable at December 31, 2025. Accordingly, management has maintained a full valuation allowance against its net deferred tax assets at December 31, 2025. The net change in the total valuation allowance for the 12 months ended December 31, 2025, increased by $2,874,651 to $413,716. At December 31, 2025, and 2024, we had federal and state net operating loss carryforwards of approximately $434,379 and $1,293,020, respectively, expiring beginning in 2037 for the federal and 2037 for the state.

 

For the years ended December 31, 2025, and 2024, the Company analyzed its ASC 740 position and did not identify any uncertain tax positions defined under ASC 740. Should this position be determined in the future and the Company owes interest and penalties because of this, these would be recognized as interest expense and other expenses, respectively, in the consolidated financial statements.

 

The Company has identified the United States Federal tax returns as its “major” tax jurisdiction. The United States federal returns for 2025 and 2024 have been submitted and accepted by the United States Internal Revenue Service. The Company was not subject to tax examination by authorities in the United States before 2015. The Nevada State tax returns for 2025 and 2024 have been submitted and accepted by the Nevada State Franchise Tax Board. Currently, the Company does not have any ongoing tax examinations.

 

The Company has no foreign tax expenses and liabilities as of December 31, 2025, and 2024.