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

(a) Composition of income before income taxes is as follows (in thousands):

 

SCHEDULE OF COMPOSITION OF INCOME BEFORE INCOME TAXES

         
   Year ended December 31, 
   2025   2024 
Pre Tax Book Loss          
Domestic  $(458,588)  $(10,339)
Foreign   (5,426)   - 
Total  $(464,014)  $(10,339)
SCHEDULE OF INCOME TAX (BENEFIT) EXPENSE

Income tax (benefit) expense consists of the following (in thousands):

 

SCHEDULE OF INCOME TAX (BENEFIT) EXPENSE

         
   Year ended December 31, 
   2025   2024 
Current:        
Federal  $ -   $ - 
State   2    - 
Foreign   -    - 
Current income tax provision  $2   $- 
Deferred:          
Federal   (7,002)   - 
State and local   297    - 
Foreign   (1,257)   - 
Valuation allowance   6,706    - 
Net deferred income tax provision (benefit)   (1,256)   - 
Total income tax provision (benefit)   (1,254)   - 
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

Set forth below is a reconciliation between the federal tax rate and the Company’s effective income tax rates with respect to continuing operations:

 

 SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

         
   Year ended December 31, 
   2025   2025 
Expected income tax benefit at the U.S. federal statutory tax rate  $(97,443)   21%
State and local taxes, net of federal benefit(a)   2    -%
Foreign tax effects   (118)   -%
Effects of cross-border tax laws     -       - %
Research and development credits   110    -%
Changes in valuation allowance   9,075    (2)%
Nontaxable or nondeductible Items:          
Unrealized change in derivative value   80,360    (18)%
Stock based compensation   2,717    (1)%
Other   2,499    -%
Other Adjustments:          
Deferred tax adjustment   1,544    

-

%
Effective Tax Rate   (1,254)   -%

 

(a) For the year ended December 31, 2025, state taxes in the following states listed below made up a majority (greater than 50% of the tax effect of the state and local income taxes, net of federal taxes rate reconciliation line item).

 

Florida

 

The rate reconciliation above has been adjusted to be presented in compliance with the guidance under ASU 2023-09. The Company has adopted this guidance on a prospective basis.

 

 

As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU No. 2023-09, the following reconciles the federal tax rate and the Company’s effective income tax rates with respect to continuing operations:

 

  

Year ended

December 31, 2024

 
     
Statutory rate on pre-tax book loss   26%
Other   -%
Valuation allowance   (26)%
Effective income tax rates   -%
SCHEDULE OF ANALYSIS OF DEFERRED TAX ASSETS AND LIABILITIES

(c) Analysis of Deferred Tax Assets and (Liabilities) (in thousands):

 

 SCHEDULE OF ANALYSIS OF DEFERRED TAX ASSETS AND LIABILITIES

         
   As of December 31, 
   2025   2024 
Deferred tax assets (liabilities) consist of the following:    
Accruals  $360   $- 
Research & Development Costs   -    562 
Amortization Expense - Patents and Trademarks   10    - 
Unrealized Gain/Loss From Foreign Currency Exchange   163    - 
Nonqualified Stock Options   -    848 
Charitable Contributions   25    - 
163(j) Interest Expense Limitation   46    - 
Net Operating Loss Carryforwards   52,986    45,319 
Foreign Net Operating Loss Carryforward   697    - 
Research & Development Tax Credit   98    - 
Other Assets   -    252 
Total Deferred Tax Assets before Valuation Allowance   54,385    46,981 
Valuation Allowance   (53,686)   (46,981)
Total Deferred Tax Assets   699    - 
Depreciation Expense   (3)   - 
Foreign Acquisition of Intangible Assets Step Up   (12,117)   - 
Total deferred tax liabilities   (12,120)   - 
Net Deferred tax asset (liability)  $(11,421)  $- 
SCHEDULE OF NET OPERATING LOSS CARRYFORWARDS

As of December 31, 2025, the Company had various NOL carryforwards expiring as follows (in thousands):

 

Expiration  Federal   State   Foreign 
2026-2031   961    657    - 
2032-2037   22,641    15,481    - 
2038-2045   -    -    2,512 
Unlimited   188,043    128,575    - 
Total  $211,645   $144,713   $2,512