v3.26.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX PROVISION

The provision (benefit) for income taxes consists of the following:

 

   2025   2024 
Currently payable:          
Federal  $-   $- 
State   -    8,000 
Foreign   -    - 
Total currently payable   -    8,000 
Deferred:          
Federal   (4,672,000)   256,000
State   

70,000

   (290,000)
Foreign   (9,000)   (4,000)
Total deferred   (4,611,000)   (38,000)
Less: increase/(decrease) in allowance   4,611,000    38,000 
Net deferred   -    - 
Total income tax provision  $-   $8,000 
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

Individual components of deferred tax assets and liabilities are as follows:

 

 

   2025   2024 
Deferred tax assets:          
Net operating loss carry forwards  $25,672,000   $19,201,000 
Net operating loss IRC 382 limited   9,634,000    9,634,000 
Unrealized loss on securities   4,407,000    4,243,000 
Equity issued for services   197,000    194,000 
Goodwill and other intangibles   95,000    84,000 
Investment in pass-through entity   11,000    11,000 
Deferred revenue   176,000    176,000 
Operating Lease Liability   1,419,000    1,557,000 
Depreciation and amortization   1,000    1,000 
Other   2,480,000    3,094,000 
Gross deferred tax assets   44,092,000    38,195,000 
           
Deferred tax liabilities:          
Goodwill and other intangibles   3,367,000    1,567,000 
Depreciation and amortization   (61,000)   309,000 
Right to Use Asset   1,311,000    1,455,000 
Gross deferred tax liabilities   4,617,000    3,331,000 
Less: valuation allowance   (39,475,000)   (34,864,000)
           
Net deferred tax assets (liabilities)  $-   $- 
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows:

 

 

         2025         2024 
   2025   2024 
Statutory United States federal rate  $(5,766,000)   21.00%   (11,276,000)   21.00%
State income taxes net of federal benefit   63,000    (0.23)   (210,000)   0.39 
Permanent differences   13,000    (0.05)   5,286,000    (9.84)
Foreign Rate   1,000    (0.00)   -    0.00 
NOL DTA Write-off   36,000    (0.13)   41,000    (0.08)
other   1,042,000    (3.80)   6,142,000    (11.44)
Change in valuation reserves   4,611,000    (16.79)   25,000    (0.05)
                     
Effective tax rate  $-    0.00%  $8,000    (0.02)%