v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of Differences Between United States Statutory Federal Income Tax Rate and Effective Tax Rate

A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate, as provided in the consolidated statements of operations, is as follows for the year ended December 31, 2025:

 

Statutory rate

 

 

 

21.00

 

%

 

 

21.00

 

%

State income taxes, net of federal benefit*

 

 

 

0.00

 

%

 

 

0.00

 

%

Change in valuation allowance

 

 

 

(20.08

)

%

 

 

(0.11

)

%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

Transferable tax credits, net

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

Nondeductible items

 

 

 

(0.01

)

%

 

 

-0.16

 

%

Change in unrecognized tax benefits

 

 

 

 

 

 

 

 

 

Other adjustments

 

 

 

 

 

 

 

 

 

Capital loss expiration

 

 

 

 

 

 

 

 

 

Deferred true up adjustments

 

 

 

 

 

 

 

 

 

Other

 

 

 

(0.91

)

%

 

 

0.05

 

%

Effective rate

 

 

 

0.00

 

%

 

 

20.78

 

%
Schedule of Components of Deferred Income Taxes The components of deferred income taxes included in the consolidated balance sheets were as follows:

 

 

 

 

December 31,

 

 

 

 

 

2025

 

 

 

2024

 

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

 

15,799,998

 

 

 

 

8,835,743

 

 

Net property and equipment

 

 

 

64,978

 

 

 

 

 

 

Stock compensations

 

 

 

4,090,849

 

 

 

 

3,587,594

 

 

Stock based debt discounts

 

 

 

686,553

 

 

 

 

669,499

 

 

Goodwill and intangibles

 

 

 

916,880

 

 

 

 

1,012,214

 

 

Other Assets - Reorganization Costs

 

 

 

28,135

 

 

 

 

28,135

 

 

Allowance for credit losses and other assets

 

 

 

256,411

 

 

 

 

237,044

 

 

Total gross deferred tax assets

 

 

 

21,843,804

 

 

 

 

14,370,229

 

 

Less: valuation allowance

 

 

 

(21,843,804

)

 

 

 

(13,698,081

)

 

Total deferred tax assets, net of valuation allowance

 

 

 

-

 

 

 

 

672,148

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

 

-

 

 

 

 

(672,148

)

 

Total deferred tax liabilities

 

 

 

-

 

 

 

 

(672,148

)

 

 

 

 

 

 

 

 

 

 

 

Net deferred tax liabilities, included in other liabilities

 

 $

 

-

 

 

 $

 

-

 

 
Schedule of Net Operating Loss Carryforwards Expire These net operating loss carryforwards expire as follows:

 

Tax Years

 

Federal

 

 

State

 

 

2026–2030

 

 $

 

-

 

 

 $

 

-

 

 

2031–2035

 

 

 

22,530,746

 

 

 

 

-

 

 

2036–2040

 

 

 

2,940,525

 

 

 

 

-

 

 

2041 and after*

 

 

 

49,648,096

 

 

 

 

-

 

 

Total NOLs

 

 $

 

75,119,367

 

 

 $

 

-

 

 
Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning balance and the ending balance of gross unrecognized tax benefits, before interest and penalties, for the period presented is as follows (in thousands):

 

 

December 31,

 

 

 

 

2025

 

 

2024

 

 

Unrecognized tax benefits at beginning of year

 

$

 

-

 

 

$

 

-

 

 

Increases related to current-year tax positions

 

 

 

-

 

 

 

 

-

 

 

Decreases related to current-year tax positions

 

 

 

-

 

 

 

 

-

 

 

Increases related to prior year tax positions

 

 

 

-

 

 

 

 

-

 

 

Decreases related to prior year tax positions

 

 

 

-

 

 

 

 

-

 

 

Decreases related to expiration of prior year tax positions

 

 

 

-

 

 

 

 

-

 

 

Decreases related to settlements of prior year tax positions

 

 

 

-

 

 

 

 

-

 

 

Unrecognized tax benefits at end of year

 

$

 

-

 

 

$

 

-

 

 

 
Schedule of Years Still Open to Audit Under Applicable Statutes of Limitation

The Company is subject to income tax in the United States federal jurisdiction and various state jurisdictions and has identified its federal tax return and tax returns in state jurisdictions below as “major” tax filings. These jurisdictions, along with the years still open to audit under the applicable statutes of limitation, are as follows:

 

Jurisdiction

 

Tax Years

Federal

 

2022 – 2025

Texas

 

2021 – 2025