Schedule of Components of Income Tax Benefits |
Components
of income tax expense /benefit for the year ended December 31, 2024 and December 31, 2023 are as follows:
Schedule
of Components of Income Tax Benefits
| |
2024 | | |
2023 | |
Current
Income Tax Expense (Benefit) - Federal | |
| - | | |
| - | |
Current
Income Tax Expense (Benefit) - State | |
| - | | |
| - | |
Total
Current Income Tax Expense (Refund) | |
| - | | |
| - | |
| |
| | | |
| | |
Deferred
Income Tax Expense (Benefit) - Federal | |
| - | | |
| - | |
Deferred
Income Tax Expense (Benefit) - State | |
| - | | |
| - | |
Total
Deferred Income Tax Expense (Benefit) | |
| - | | |
| - | |
| |
| | | |
| | |
Total
Provision for Income Taxes | |
| - | | |
| - | |
|
Schedule of Deferred Tax Assets and Liabilities |
The
tax effects of cumulative temporary differences which give rise to the significant portions of deferred tax assets or liabilities at
December 31, 2024 and 2023 are as follows:
Schedule
of Deferred Tax Assets and Liabilities
| |
2024 | | |
2023 | |
Deferred
Tax Assets: | |
2024 | | |
2023 | |
Reserves
& Allowances | |
| 61,864 | | |
| 108,584 | |
Accrued
Payroll Expenses | |
| - | | |
| - | |
Other
Accrued Expenses | |
| 671,345 | | |
| - | |
Straight-Line
Rent Accrual | |
| - | | |
| - | |
Interest
Expense | |
| - | | |
| - | |
Carryforward
of Sec. 179 | |
| - | | |
| - | |
Charitable
Contribution Carryforward | |
| 2,895 | | |
| 2,895 | |
Unrealized
Gains/Losses on FX Exchange | |
| - | | |
| - | |
Net
operating loss carryforward - Federal | |
| 12,529,285 | | |
| 9,524,275 | |
Net
operating loss carryforward - State | |
| 2,807,579 | | |
| 2,194,071 | |
Tax
Credits | |
| - | | |
| - | |
Non
Qualified Stock Options | |
| 435,808 | | |
| 430,577 | |
Amortization | |
| 167,756 | | |
| 2,014,677 | |
Total
deferred tax assets | |
| 16,676,532 | | |
| 14,275,079 | |
| |
| | | |
| | |
Deferred
Tax Liabilities: | |
| | | |
| | |
Depreciation | |
| (133,353 | ) | |
| (2,813 | ) |
Amortization | |
| - | | |
| - | |
| |
| - | | |
| - | |
Net
deferred tax liability | |
| (133,353 | ) | |
| (2,813 | ) |
| |
| | | |
| | |
Less
Valuation Allowance | |
| (16,543,179 | ) | |
| (14,272,266 | ) |
Total
Net Deferred Tax Assets | |
| - | | |
| - | |
|
Schedule of Effective Income Tax Rate Reconciliation |
The
reconciliation of the computed effective tax rate to the U.S. federal statutory rate is as follows:
Schedule
of Effective Income Tax Rate Reconciliation
| |
2024 | | |
2023 | |
Federal
statutory income tax | |
| 21.00 | % | |
| 21.00 | % |
Permanent
Differences | |
| 0.00 | % | |
| 0.00 | % |
Change
in Tax Credits | |
| 0.00 | % | |
| 0.00 | % |
Change
in Tax Rate | |
| 0.00 | % | |
| 0.00 | % |
Change
in Valuation Allowance | |
| -24.72 | % | |
| -23.23 | % |
State
income taxes, net of federal benefit | |
| 3.72 | % | |
| 3.72 | % |
Prior
Year Adjustments | |
| 0.00 | % | |
| -1.49 | % |
Total | |
| 0.00 | % | |
| 0.00 | % |
|