| SCHEDULE OF ACTUAL INCOME TAX RATE |
The
difference between the actual income tax rate versus the tax computed at the Federal Statutory rate follows:
SCHEDULE OF ACTUAL INCOME TAX RATE
| | |
December
31, 2025 | | |
December
31, 2024 | |
| | |
Amount | | |
% | | |
Amount | | |
% | |
| U.S.
Federal statutory tax rate | |
$ | (1,426,464 | ) | |
| 21.0 | % | |
$ | (1,905,032 | ) | |
| 21.0 | % |
| State
and local income tax, net of federal income tax effect | |
| | | |
| | | |
| | | |
| | |
| Michigan | |
| (168,926 | ) | |
| 2.5 | % | |
| (208,514 | ) | |
| 2.3 | % |
| All
other states (combined) | |
| (43,894 | ) | |
| 0.6 | % | |
| (262,274 | ) | |
| 2.9 | % |
| Effects
of changes in tax laws or rates enacted in the current period | |
| (4,040 | ) | |
| 0.1 | % | |
| (98,944 | ) | |
| 1.1 | % |
| Nontaxable
or nondeductible items | |
| 5,502 | | |
| -0.1 | % | |
| (29,191 | ) | |
| 0.3 | % |
| Other
adjustments | |
| | | |
| | | |
| | | |
| | |
| Goodwill
impairment reclassification | |
| (1,951,752 | ) | |
| 28.7 | % | |
| - | | |
| 0.0 | % |
| Return
to provision | |
| 0 | | |
| 0.0 | % | |
| (133,037 | ) | |
| 1.5 | % |
| Changes
in valuation allowances | |
| 3,589,574 | | |
| -52.8 | % | |
| 2,636,992 | | |
| -29.1 | % |
| Effective
income tax rate | |
$ | - | | |
| 0 | % | |
$ | - | | |
| 0 | % |
|
| SCHEDULE OF DEFERRED INCOME TAX ASSETS AND LIABILITIES |
Deferred
income tax assets and (liabilities) consist of the following:
SCHEDULE OF DEFERRED INCOME TAX ASSETS AND LIABILITIES
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Deferred tax assets (liabilities) | |
| | | |
| | |
| Net operating loss carryforward | |
$ | 14,477,942 | | |
$ | 12,890,271 | |
| Equity-based compensation | |
| 1,868,386 | | |
| 1,592,338 | |
| Goodwill | |
| 1,263,351 | | |
| (599,864 | ) |
| Intangibles | |
| 831,258 | | |
| 990,718 | |
| Fixed assets | |
| (163,644 | ) | |
| (169,130 | ) |
| Right of use assets | |
| (230,697 | ) | |
| (269,722 | ) |
| Lease liabilities | |
| 240,993 | | |
| 279,565 | |
| Other | |
| 23,444 | | |
| 7,282 | |
| Total deferred tax assets | |
| 18,311,033 | | |
| 14,721,458 | |
| Valuation allowance | |
| (18,311,033 | ) | |
| (14,721,458 | ) |
| Net deferred tax
assets | |
$ | - | | |
$ | - | |
|