| SCHEDULE OF INCOME TAX RECONCILIATION EXPECTED EXPENSE (BENEFIT) |
The
following table sets forth the reconciliation of income tax expense (benefit) (in dollars):
SCHEDULE
OF INCOME TAX RECONCILIATION EXPECTED EXPENSE (BENEFIT)
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| U.S. federal statutory rate | |
$ | (1,473,768 | ) | |
$ | (1,704,209 | ) |
| State tax benefit net of federal benefit | |
| (303,721 | ) | |
| (351,765 | ) |
| Change in valuation allowance | |
| 550,980 | | |
| 2,051,899 | |
| True-Up & Deferred Adjustment | |
| 61,605 | | |
| - | |
| Forfeitures & Expiration of Stock Comp | |
| 2,029,401 | | |
| - | |
| Spin-off tax attribute discrete adjustment | |
| (681,876 | ) | |
| - | |
| Other permanent items | |
| 5,841 | | |
| 4,075 | |
| Other | |
| (188,462 | ) | |
| - | |
| Income tax provision/(benefit) | |
$ | - | | |
$ | - | |
|
| SCHEDULE OF RECONCILIATION INCOME TAX RATE |
The
following table sets forth the reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax
rate (in percentages):
SCHEDULE
OF RECONCILIATION INCOME TAX RATE
| Reconciliation
of Statutory Rate to Effective Rate | |
2025 | | |
2024 | |
| Statutory
U.S. federal income tax rate | |
| 21.00 | % | |
| 21.00 | % |
| State
income taxes, net of federal benefit | |
| 4.35 | % | |
| 4.35 | % |
| Change
in valuation allowance | |
| (7.85 | )% | |
| (25.28 | )% |
| True-Up
& Deferred Adjustment | |
| (0.88 | )% | |
| 0.00 | % |
| Forfeitures
& Expiration of Stock Comp | |
| (28.92 | )% | |
| 0.00 | % |
| Spin-off
tax attribute discrete adjustment | |
| 9.72 | % | |
| 0.00 | % |
| Other
Permanent Items | |
| (0.08 | )% | |
| (0.05 | )% |
| Change
in Tax Rate | |
| 0.00 | % | |
| 0.00 | % |
| Other | |
| 2.66 | % | |
| 0.00 | % |
| Effective
income tax rate | |
| 0.00 | % | |
| 0.00 | % |
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
As
of December 31, 2025 and 2024, the Company’s deferred tax assets and liabilities consisted of the effects of temporary differences
attributable to the following:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Deferred tax assets: | |
| | | |
| | |
| NOL carryforward | |
$ | 22,361,579 | | |
$ | 18,918,516 | |
| Accrued expenses | |
| - | | |
| 174,687 | |
| ASC 842 - Lease Accounting | |
| - | | |
| 77,152 | |
| Charitable contributions | |
| 1,444 | | |
| 7,933 | |
| Intangible Assets | |
| 6,325 | | |
| 5,841 | |
| Interest expense | |
| 1,225 | | |
| - | |
| Reserves and Allowances | |
| - | | |
| 16,860 | |
| Stock Compensation | |
| - | | |
| 2,593,511 | |
| Net book value of fixed assets | |
| 2,398 | | |
| - | |
| Unrealized Loss on Investment | |
| - | | |
| 38,030 | |
| Total deferred tax assets | |
| 22,372,971 | | |
| 21,832,530 | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| Net book value of fixed assets | |
| - | | |
| (10,539 | ) |
| Total deferred tax liabilities | |
| - | | |
| (10,539 | ) |
| | |
| | | |
| | |
| Net deferred tax assets | |
| 22,372,971 | | |
| 21,821,991 | |
| Valuation allowance | |
| (22,372,971 | ) | |
| (21,821,991 | ) |
| Net deferred tax assets | |
$ | - | | |
$ | - | |
|