| SCHEDULE OF INCOME TAX PROVISION |
The
provision (benefit) for income taxes consists of the following:
SCHEDULE
OF INCOME TAX PROVISION
| | |
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:
SCHEDULE
OF DEFERRED TAX ASSETS AND LIABILITIES
| | |
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:
SCHEDULE
OF EFFECTIVE INCOME TAX RATE RECONCILIATION
| | |
| | | |
| 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 | )% |
|