v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

8. INCOME TAXES

 

The components of income tax expense and the effective tax rates for the years ended December 31, 2025 and 2024 are as follows:

  

         
   Year Ended December 31, 
   2025   2024 
Current:        
Federal  $-   $150,786 
State   -    - 
Total Current   -    150,786 
Deferred:          
Federal   -    1,862,884 
State   -    342,691 
Total Deferred   -    2,205,575 
Valuation Allowance   -    (2,205,575)
Total Income Tax Expense  $-   $150,786 
           
Pre-tax Income (Loss)  $(1,008,421)   $6,824,513 
           
Effective Income Tax Rate   -%   2.2%

 

A reconciliation of our income tax expense at federal statutory income tax rate of 21.0% to our income tax expense at the effective tax rate is as follows:

 

         
   Year Ended December 31, 
   2025   2024 
Tax at the Statutory Federal Rate   21.0%   21.0%
Capitalized Construction Costs   -%   -1.8%
Deferred Finance Cost   -%   0.3%
Valuation Allowance   

-21.0

%   -17.4%
Effective Income Tax Rate   -%   2.2%

 

Deferred tax assets (liabilities) consist of the following at December 31, 2025 and 2024:

 

         
   Year Ended December 31, 
   2025   2024 
Deferred tax assets:          
Accrued Interest Expense  $-   $6,560,893 
Accrued Expense   -    8,895 
Accrued Other Income   -    1,596,154 
Partnership Gain   -    13,175 
Real Estate Impairment   -    114,432 
Others   -    52,139 
Net Operating Loss   -    576,999 
Total deferred tax assets:  $-   $8,922,687 
           
Deferred tax liabilities:          
Accrued Interest Income   -    (7,752,103)
Accumulated Depreciation and Amortization   -    (204,061)
Capitalized Costs   -    (2,185,216) 
Total deferred tax liabilities:  $-   $(10,141,380)
           
Deferred Tax Assets / (Liabilities), net   -    (1,218,693) 
Less valuation allowance   -    1,218,693 
Deferred Tax Asset c/f  $-   $- 

 

 

We are subject to U.S. federal income tax as well as income tax of certain state jurisdictions. We have substantially concluded all U.S. federal income tax and state tax matters through 2021. However, our federal tax returns for the years 2022 through 2024 remain open to examination. The Company’s federal income tax return for the year ended December 31, 2023 is currently under examination by the Internal Revenue Service. State tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Consolidated Financial Statements.