Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Provision for Income Taxes |
The components of the Company’s provision for income taxes for the years ended December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
Federal |
$ |
36,262 |
|
|
$ |
(97,279 |
) |
State |
|
— |
|
|
|
— |
|
Total current |
|
36,262 |
|
|
|
(97,279 |
) |
Deferred: |
|
|
|
|
|
Federal |
|
(1,442,752 |
) |
|
|
(2,848,758 |
) |
State |
|
1,113,750 |
|
|
|
(1,492,656 |
) |
Total deferred |
|
(329,002 |
) |
|
|
(4,341,414 |
) |
Valuation allowance |
|
329,002 |
|
|
|
4,341,414 |
|
Income tax expense (benefit) |
$ |
36,262 |
|
|
$ |
(97,279 |
) |
|
| Reconciles the Income Tax at Federal Statutory Rate |
The following reconciles the Company’s income taxes at the federal statutory rate to its reported income tax expense (benefit):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
|
|
2024 |
|
Federal taxes at statutory rate |
$ |
(1,442,494 |
) |
|
|
21.0 |
% |
|
|
$ |
(2,257,026 |
) |
|
|
21.0 |
% |
Effects of: |
|
|
|
|
|
|
|
|
|
|
|
|
State taxes, net of federal benefit |
|
(83,407 |
) |
|
|
1.2 |
% |
|
|
|
(473,757 |
) |
|
|
4.4 |
% |
Stock-based compensation |
|
145,486 |
|
|
|
(2.1 |
)% |
|
|
|
173,679 |
|
|
|
(1.6 |
)% |
Research and development expenses, net |
|
(96,897 |
) |
|
|
1.4 |
% |
|
|
|
102,639 |
|
|
|
(1.0 |
)% |
Change in deferred tax rate |
|
654,980 |
|
|
|
(9.5 |
)% |
|
|
|
(1,100,408 |
) |
|
|
10.2 |
% |
Accrued compensation |
|
144,491 |
|
|
|
(2.1 |
)% |
|
|
|
(271,238 |
) |
|
|
2.5 |
% |
Loss on forward purchase agreement |
|
— |
|
|
|
— |
% |
|
|
|
1,197,095 |
|
|
|
(11.1 |
)% |
Other |
|
(52,160 |
) |
|
|
0.8 |
% |
|
|
|
(7,126 |
) |
|
|
(0.3 |
)% |
Valuation allowance |
|
766,263 |
|
|
|
(11.2 |
)% |
|
|
|
2,538,863 |
|
|
|
(23.2 |
)% |
Income tax expense (benefit) |
$ |
36,262 |
|
|
|
(0.5 |
)% |
|
|
$ |
(97,279 |
) |
|
|
0.9 |
% |
|
| Significant Components of Deferred Tax Assets |
Significant components of the Company’s deferred tax assets as of December 31, 2025 and 2024 are summarized below.
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2025 |
|
|
2024 |
|
Deferred income tax assets: |
|
|
|
|
|
Net operating losses |
$ |
9,872,228 |
|
|
$ |
8,909,827 |
|
Accrued interest |
|
1,745,522 |
|
|
|
1,770,766 |
|
Federal research and development tax credits |
|
56,911 |
|
|
|
56,911 |
|
Amortization of research expense |
|
333,083 |
|
|
|
460,061 |
|
Right of use asset |
|
2,654 |
|
|
|
3,590 |
|
Non-qualified deferred compensation |
|
689,833 |
|
|
|
551,492 |
|
Change in fair value of forward purchase agreement |
|
3,703,852 |
|
|
|
4,361,287 |
|
Capitalization of start-up costs |
|
303,802 |
|
|
|
386,345 |
|
Accrued liabilities |
|
145,325 |
|
|
|
— |
|
Gross deferred tax assets |
|
16,853,210 |
|
|
|
16,500,279 |
|
Deferred income tax liabilities: |
|
|
|
|
|
Depreciation and amortization |
|
(28,424 |
) |
|
|
(36,090 |
) |
Change in fair value of acquisition liabilities |
|
(31,595 |
) |
|
|
— |
|
Gross deferred tax liabilities |
|
(60,019 |
) |
|
|
(36,090 |
) |
Total net deferred tax assets |
|
16,793,191 |
|
|
|
16,464,189 |
|
Valuation allowance |
|
(16,793,191 |
) |
|
|
(16,464,189 |
) |
Net deferred income tax assets |
$ |
— |
|
|
$ |
— |
|
|