Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Taxes [Abstract] |
|
| Schedule of Income before Income Taxes |
For financial reporting purposes, income before income taxes includes
the following components:
| | |
Years Ended December 31 | |
| | |
2025 | | |
2024 | |
| Loss before income taxes: | |
| | |
| |
| United States | |
$ | (7,452,574 | ) | |
$ | (8,993,799 | ) |
| Foreign | |
| - | | |
| - | |
| Loss before income taxes: | |
$ | (7,452,574 | ) | |
$ | (8,993,799 | ) |
|
| Schedule of Expense for Income Taxes |
The expense for income taxes consists of:
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Current income tax provision | |
| | |
| |
| Federal | |
$ | - | | |
$ | - | |
| State | |
| 14,853 | | |
| 9,946 | |
| Foreign | |
| - | | |
| - | |
| | |
| 14,853 | | |
| 9,946 | |
| Deferred income tax (benefit) expense | |
| | | |
| | |
| Federal | |
| - | | |
| - | |
| State | |
| - | | |
| - | |
| Foreign | |
| - | | |
| - | |
| | |
| - | | |
| - | |
| | |
| | | |
| | |
| Total income tax (benefit) provision | |
$ | 14,853 | | |
$ | 9,946 | |
|
| Schedule of Reconciliation Effective Tax Rate on Income |
Reconciliation between the effective tax rate on income from continuing
operations and the statutory tax rate is as follows:
| |
|
Year Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| |
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
| Provision at Federal Statutory Rate |
|
$ |
(1,565,040 |
) |
|
|
21.00 |
% |
|
$ |
(1,888,698 |
) |
|
|
21.00 |
% |
| State and local income tax, net of federal income tax effect* |
|
|
14,853 |
|
|
|
(0.20 |
)% |
|
|
10,558 |
|
|
|
(0.12 |
)% |
| Foreign tax effects |
|
|
- |
|
|
|
0.00 |
% |
|
|
- |
|
|
|
0.00 |
% |
| Effect of changes in tax laws or rates enacted in the current period |
|
|
- |
|
|
|
0.00 |
% |
|
|
- |
|
|
|
0.00 |
% |
| Effect of cross-border tax laws |
|
|
- |
|
|
|
0.00 |
% |
|
|
- |
|
|
|
0.00 |
% |
| Tax credits |
|
|
- |
|
|
|
0.00 |
% |
|
|
- |
|
|
|
0.00 |
% |
| Changes in valuation allowance |
|
|
1,288,973 |
|
|
|
(17.30 |
)% |
|
|
(1,337,613 |
) |
|
|
14.87 |
% |
| Nontaxable or nondeductible items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-Based Compensation |
|
|
327,069 |
|
|
|
(4.39 |
)% |
|
|
232,126 |
|
|
|
(2.58 |
)% |
| Stock Issuance Costs |
|
|
- |
|
|
|
0.00 |
% |
|
|
319,908 |
|
|
|
(3.56 |
)% |
| Other Nontaxable or nondeductible items |
|
|
4,340 |
|
|
|
(0.06 |
)% |
|
|
3,121 |
|
|
|
(0.03 |
)% |
| Changes in unrecognized tax benefits |
|
|
- |
|
|
|
0.00 |
% |
|
|
- |
|
|
|
0.00 |
% |
| Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attribute Expirations |
|
|
- |
|
|
|
0.00 |
% |
|
|
2,473,630 |
|
|
|
(27.50 |
)% |
| Prior Period True Ups |
|
|
(55,342 |
) |
|
|
0.74 |
% |
|
|
196,914 |
|
|
|
(2.19 |
)% |
| Provision for Income Taxes |
|
$ |
14,853 |
|
|
|
(0.21 |
)% |
|
$ |
9,946 |
|
|
|
(0.11 |
)% |
| * | State and local income tax expense was insignificant for
the period due to a full valuation allowance recorded against state deferred tax assets. As a result, state income taxes did not have
a material impact on the Company’s effective tax rate. |
|
| Schedule of Deferred Tax Assets and Liabilities |
The significant components of the Company’s deferred tax assets
and liabilities are as follows:
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Deferred tax assets: | |
| | |
| |
| Net operating loss carryforward | |
$ | 19,108,255 | | |
$ | 17,061,064 | |
| Tax credits | |
| 205,028 | | |
| 205,028 | |
| Lease liabilities | |
| 13,976 | | |
| 14,404 | |
| Accruals and reserves | |
| 160,270 | | |
| 148,784 | |
| Capitalized Research Costs | |
| 486,900 | | |
| 438,127 | |
| Taxable Goodwill | |
| 621,194 | | |
| 871,350 | |
| Intangible assets | |
| 608,149 | | |
| 556,997 | |
| Stock Compensation | |
| 266,181 | | |
| 275,637 | |
| Fixed assets | |
| 24,963 | | |
| 24,461 | |
| Other | |
| 4,179 | | |
| 4,943 | |
| Total deferred tax assets before valuation allowance: | |
| 21,499,095 | | |
| 19,600,795 | |
| Valuation allowance | |
| (21,406,326 | ) | |
| (19,587,280 | ) |
| Deferred tax assets, net of valuation allowance | |
| 92,769 | | |
| 13,515 | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| Right-of-use assets | |
| (92,769 | ) | |
| (13,515 | ) |
| Total deferred tax liabilities | |
| (92,769 | ) | |
| (13,515 | ) |
| Net deferred tax liability | |
$ | - | | |
$ | - | |
|