| Schedule of Net Deferred Tax Assets |
The following represents the components of the Company’s deferred tax assets and liabilities at December 31, 2025 and 2024: | | | | | | | | | | | | | | December 31, | | | 2025 | | 2024 | | Deferred tax assets: | | | | | Sec. 174 Cost – Domestic and Foreign | $ | 1,374,000 | | | $ | 2,187,000 | | | Net operating loss – Federal and State | 23,516,000 | | | 15,878,000 | | | Loan lease loss reserve | 214,000 | | | 195,000 | | | Share-based compensation | 5,616,000 | | | 4,483,000 | | | Depreciation and amortization | 1,897,000 | | | 660,000 | | | Capitalized acquisition cost | 62,000 | | | 132,000 | | | Other | 707,000 | | | 206,000 | | | Total deferred tax asset | 33,386,000 | | | 23,741,000 | | | | | | | Deferred tax liabilities: | | | | | Identifiable Intangibles from Credova Acquisition | (1,700,000) | | | (2,434,000) | | | Operating lease right-of-use assets | (152,000) | | | (66,000) | | | Unrealized gain/loss | — | | | (26,000) | | | Total deferred tax liabilities | (1,852,000) | | | (2,526,000) | | | Net deferred tax assets before valuation allowance | 31,534,000 | | | 21,215,000 | | | Less: valuation allowance | (31,534,000) | | | (21,215,000) | | | Net deferred tax asset | $ | — | | | $ | — | |
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| Schedule of Income Tax Expense Benefit at the Statutory Federal Income Tax Rate |
A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | For the years ended December 31, | | | 2025 | | 2024 | | U.S. federal statutory income tax rate | $ | (7,679,040) | | | 21.0 | % | | $ | (12,114,330) | | | 21.0 | % | | State income taxes, net of federal income tax benefit | 509,694 | | | (1.4 | %) | | (1,315,995) | | | 2.3 | % | | Nontaxable or nondeductible items: | | | | | | | | | Change in fair value of warrant liabilities and earn-out liabilities | (2,013,008) | | | 5.5 | % | | (3,360) | | | 0.0 | % | | Change in valuation allowance | 10,320,241 | | | (28.2) | % | | 12,147,000 | | | (21.1) | % | | Other adjustments | (1,137,887) | | | 3.1 | % | | 1,285,085 | | | (2.2) | % | | | $ | — | | | 0.0 | % | | $ | (1,600) | | | 0.0 | % |
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