| Schedule of Reconciliation of the Federal Statutory Tax Rate to the Effective Tax Rate |
Schedule
of Reconciliation of the Federal Statutory Tax Rate to the Effective Tax Rate
| | |
Year
Ended December 31, | |
| | |
2025 | |
| U.S. federal
statutory income tax rate | |
| (1,950,074 | ) | |
| 21.00 | % |
| State, net of federal
tax benefit | |
| (648,502 | ) | |
| 6.98 | % |
| Nontaxable or nondeductible
items | |
| | | |
| | |
| Stock
options | |
| 325,060 | | |
| -3.50 | % |
| Equity
based award vestings | |
| (1,618 | ) | |
| 0.02 | % |
| Meals
& entertainment | |
| 4,602 | | |
| -0.05 | % |
| Other state adjustments | |
| 107,971 | | |
| -1.16 | % |
| Changes in valuation allowances | |
| 2,057,356 | | |
| -22.16 | % |
| Effective rate | |
| (105,205 | ) | |
| 1.13 | % |
A
reconciliation of the federal statutory tax rate to the effective tax rate for the year ended December 31, 2024 is as follows:
| | |
Year
Ended December 31, | | |
Year
Ended December 31, | |
| | |
2024 | | |
2023 | |
| U.S. federal
statutory income tax rate | |
| (1,230,880 | ) | |
| 21.00 | % | |
| (419,185 | ) | |
| 21.00 | % |
| State, net of federal
tax benefit | |
| (409,332 | ) | |
| 6.98 | % | |
| (118,270 | ) | |
| 5.93 | % |
| Permanent differences | |
| 235,127 | | |
| -4.01 | % | |
| 8,069 | | |
| -0.40 | % |
| Return-to-provision adjustments | |
| (236 | ) | |
| 0.00 | % | |
| (155,781 | ) | |
| 7.80 | % |
| Other | |
| 264,819 | | |
| -4.52 | % | |
| (59,308 | ) | |
| 2.97 | % |
| Valuation allowance | |
| 1,140,502 | | |
| -19.46 | % | |
| 786,743 | | |
| -39.41 | % |
| Income
tax expense | |
| - | | |
| 0.00 | % | |
| 42,267 | | |
| -2.12 | % |
|
| Schedule of Significant Components of the Deferred Tax Assets and Liabilities |
Significant
components of the deferred tax assets and liabilities were as follows:
Schedule
of Significant Components of the Deferred Tax Assets and Liabilities
| | |
2025 | | |
2024 | |
| | |
Year
Ended December 31, | |
| | |
2025 | | |
2024 | |
| Deferred
tax assets: | |
| | | |
| | |
| Start-up
expenditures | |
| 13,313 | | |
| 14,792 | |
| Sec
174 - Research & development costs | |
| 0 | | |
| 1,538,557 | |
| Charitable
Contribution | |
| 5,119 | | |
| - | |
| Lease
liability | |
| 347,902 | | |
| 388,085 | |
| Investment
Securities | |
| 43,437 | | |
| 43,437 | |
| Warrants | |
| 67,366 | | |
| 67,366 | |
| Bonus
expense | |
| 198,344 | | |
| 188,820 | |
| Net
operating loss carryforwards | |
| 4,876,812 | | |
| 1,306,652 | |
| Valuation
allowance | |
| (5,123,316 | ) | |
| (3,065,959 | ) |
| Total
deferred tax assets | |
| 428,977 | | |
| 481,750 | |
| Deferred
tax liabilities: | |
| | | |
| | |
| Right-of-use
asset | |
| (325,260 | ) | |
| (372,623 | ) |
| Property
and equipment principally due to differences in depreciation | |
| (103,717 | ) | |
| (109,127 | ) |
| Total
deferred tax liabilities | |
| (428,977 | ) | |
| (481,750 | ) |
| Net
deferred tax assets/(liabilities) | |
| - | | |
| - | |
Net
deferred tax assets and liabilities were classified on the consolidated balance sheets as follows:
| | |
2025 | | |
2024 | |
| | |
Year
Ended December 31, | |
| | |
2025 | | |
2024 | |
| Deferred tax
assets | |
| 428,977 | | |
| 481,750 | |
| Deferred tax liabilities | |
| (428,977 | ) | |
| (481,750 | ) |
| Other noncurrent assets/(liabilities) | |
| - | | |
| - | |
|