SCHEDULE OF INCOME TAX BENEFIT EXPENSE

The Company is subject to U.S. federal, state, and local income taxes. The Components of income tax expense for the year ended December 31, 2025 are as follows:

SCHEDULE OF INCOME TAX BENEFIT EXPENSE

	Year Ended December 31,
	2025
Current
Federal	$	737
State		300
Total income taxes	$	1,037

SCHEDULE OF EFFECTIVE INCOME TAX RATE AS A PERCENTAGE OF INCOME BEFORE INCOME TAXES

The effective tax rate on income differed from the federal statutory rate of 21% for the years ended December 31, 2025 and 2024, for the following reasons:

SCHEDULE OF EFFECTIVE INCOME TAX RATE


	Year Ended December 31,
	2025					2024
U.S. Federal tax/(benefit) at statutory rate	$	1,304		21.00	%	$	(8,500	)	21.00	%
State and local income taxes, net of federal income tax effects *		300		4.83	%	$	22		(0.05	)%
Changes in valuation allowance		(1,108	)	(17.84	)%	$	7,257		(17.93	)%
Non-deductible items:
Other		117		1.89	%	$	714		(1.76	)%
Convertible note fair value adjustment		424		6.83	%	$	—		—	%
Effective income tax rate	$	1,037		16.71	%	$	(507	)	1.25	%

*	State tax expense is primarily attributable to South Carolina and Florida, which represented approximately 83.7% and 13.5% respectively, of total state and local income tax expense for the period. State income tax expense attributable to all other jurisdictions was not individually material.

SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS

The Company had deferred income tax assets as of the fiscal years ended November 30, 2025, and 2024, as follows:

	2025			2024
Deferred Tax Assets
Net operating loss carryforwards	$	2,179,800		$	1,270,500
Temporary differences		-			-
Permanent differences		-			-
Valuation allowance		(2,179,800	)		(1,270,500	)
Net deferred tax assets	$	-		$	-