v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
SCHEDULE OF COMPONENTS OF INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES

The components of income (loss) before provision for income taxes are as follows:

 

SCHEDULE OF COMPONENTS OF INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 

   2025   2024 
Domestic  $(1,369,854)  $1,169,659 
Foreign   7,969,493    (4,217,730)
Income before provision for income taxes  $6,599,639   $(3,048,071)
SCHEDULE OF PROVISION FOR INCOME TAXES

The provision for income taxes consists of the following:

 

SCHEDULE OF PROVISION FOR INCOME TAXES 

   2025   2024 
Current:          
Federal  $21,610   $- 
State   3,233    - 
Foreign   -    - 
Total current tax expense   24,843    - 
Deferred:          
Federal   -    - 
State   -    - 
Foreign   (270,101)   - 
Total deferred tax (benefits) expense   (270,101)   - 
           
Provision for income taxes  $(245,258)  $- 
SCHEDULE OF CASH PAID FOR INCOME TAXES

The cash paid for income taxes (net of refunds) during the year ended December 31, 2025 was as follows:

 

SCHEDULE OF CASH PAID FOR INCOME TAXES  

   2025 
Federal  $9,022 
State and Local     
California   857 
Tennessee   (6,516)
North Carolina   339 
Total income taxes paid, net of refunds  $3,702 
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES

The components of deferred tax assets and liabilities consist of the following at December 31, 2025 and 2024:

 

SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES 

   2025   2024 
Assets:          
Net operating loss carryforwards  $14,299,432   $10,969,756 
Stock options   951,817    989,741 
Charitable contribution carryforward   -    21,169 
Goodwill   743,159    1,043,533 
Unrealized loss   -    457,919 
Other intangible assets   6,064,511    8,274,403 
Other assets   589,493    63,584 
Total assets   22,648,412    21,820,105 
Liabilities:          
Unrealized gain   1,225,900    - 
Right-of-use assets   5,155    14,829 
Change in fair value of warrants   7,190    - 
Total liabilities   1,238,245    14,829 
           
Net asset before valuation allowance   21,410,167    21,805,276 
Valuation allowance   (21,140,066)   (21,805,276)
Net deferred tax asset  $270,101   $- 
SCHEDULE OF EFFECTIVE INCOME TAX RATE AND THE FEDERAL STATUTORY INCOME TAX RATE

SCHEDULE OF EFFECTIVE INCOME TAX RATE AND THE FEDERAL STATUTORY INCOME TAX RATE 

  -    -
   2025 
Federal statutory income tax expense   $1,385,924    21.0%
State income taxes, net of federal income tax effect (a)   2,554    0.0%
Effect of cross-border tax laws          
Foreign disregarded entity income   502,594    7.6%
Change in valuation allowance   (477,752)   (7.2)%
Nondeductible Items          
Noncontrolling interest adjustment   40,428    0.6%
Other   6,876    0.1%
Foreign tax effects          
United Kingdom          
Statutory tax rate difference between U.K. and U.S.   263,300    4.0%
Valuation allowance   (2,138,364)   (32.4)%
Australia          
Statutory tax rate difference between Australia and U.S.   41,728    0.6%
Valuation allowance   (139,093)   (2.1)%
Other foreign jurisdictions   28,734    0.4%
Other          
Adjustment to deferred balance   235,677    3.6%
Other   2,136    0.0%
Effective income tax rate  $(245,258)   (3.7)%

 

(a)State taxes in Florida and California made up the majority (greater than 50 percent) of the tax effect in this category for all periods presented.

 

For comparison purposes, a reconciliation between the Company’s effective income tax rate and the federal statutory income tax rate for the year ended December 31, 2024 is as follows:

 

   2024 
Federal statutory income tax benefit   21.0%
State income taxes, net of federal income tax benefit   30.5%
Permanent differences and other   (0.1)%
Change in valuation allowance   (52.1)%
Effect of flow through entity   (6.4)%
Other adjustments   6.8%
Effective income tax rate   (0.3)%