v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
INCOME TAXES

G. Income Taxes

 

Income taxes have been accounted for in accordance with ASC 740, “Accounting for Income Taxes”. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

 

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

The note receivable from GridCore is considered an installment sale under the Internal Revenue Code and treated as a timing difference in the Company’s tax computations. As such, the Company will recognize taxable income from the note receivable as principal and interest payments are received.

 

Income tax expense (benefit) for 2025 and 2024 consisted of the following:

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

Computed expected tax expense (benefit)

 

$18,234,388

 

 

$-

 

Amount attributable to pre-merger income (loss)

 

 

(282,484)

 

 

 

 

Change in valuation allowance

 

 

(9,928)

 

 

-

 

Total provision for income taxes

 

$17,941,976

 

 

$-

 

Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred tax assets relate entirely to its net operating loss carryforwards. The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows:

 

 

 

2025

 

 

2024

 

Deferred tax assets and liabilities:

 

 

 

 

 

 

Net operating loss carryforwards

 

$244,024

 

 

$-

 

Deferred gain on installment sale

 

 

(18,186,000)

 

 

-

 

Valuation allowance

 

 

-

 

 

 

-

 

Net deferred tax liability

 

$(17,941,976)

 

$-