v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 13 – INCOME TAXES

 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. 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 Company used an effective tax rate of 21% when calculating the deferred tax assets and liabilities and income tax provision below.

 

The Company’s income (loss) before income taxes were broken down as follows:

 

   Year Ended December 31, 2025   Year Ended December 31, 2024 
Domestic  $(8,967,280)  $2,085,356 
Foreign   -    - 
Total Income (loss) before income taxes  $(8,967,280)  $2,085,356 

 

The Company’s tax provision (benefit) as of December 31, 2025 and 2024 is summarized as follows:

 

   December 31, 2025   December 31, 2024 
Current          
Federal  $(77,341)  $903,347 
State   18,540    (8,407)
Foreign   -    - 
Total current income tax expense   (58,801)   894,940 
           
Total income tax expense  $(58,801)  $894,940 

 

Net deferred tax assets consist of the following components as of December 31, 2025 and 2024:

 

   December 31, 2025   December 31, 2024 
Deferred tax assets          
NOL carryover  $3,438,636   $2,417,161 
Amortization   1,976,244    1,850,667 
Other accruals   2,468,356    1,988,821 
Depreciation   (18,482)   862,384 
Investment in partnership   11,011,465    10,985,183 
Deferred tax liabilities   -    - 
Valuation allowance   (18,876,219)   (18,104,216)
Net deferred tax liability  $-   $- 

 

The table below provides the updated requirements of ASU 2023-09 for 2025. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the year ended December 31, 2025 due to the following:

 

   Year ended December 31, 2025 
   $   % 
Income taxes at statutory rate  $(1,883,129)   21.00%
State and Local Income Taxes - Net of Federal Benefit [1]   18,541    -0.21%
Changes in Valuation Allowance   665,298    -7.42%
Nontaxable or Nondeductible items          
Related party interest   260,317    -2.90%
Administrative fine   858,561    -9.57%
Other   4,971    -0.06%
Other   16,640    -0.19%
Total income tax provision (benefit)  $(58,801)   0.65%

 

[1] State taxes in California, Pennsylvania and New Jersey made up the majority (greater than 50%) of the tax effect in this category.

 

 

INVESTVIEW, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025 AND 2024

 

As previously disclosed for the year ending December 31, 2024, prior to the adoption of ASU 2023-09, the income tax provision differs from the amount of income tax by applying the U.S. federal income tax rate to pretax income from continuing operations due to the following:

 

   Year ended December 31, 2024 
Pretax Book Income/(Loss)  $2,085,356 
      
Income taxes at statutory rate   437,925 
State taxes – net of federal benefit   (6,641)
Valuation allowance   581,800 
Foreign derived intangible income   (420,033)
Interest   260,511 
Other   41,378 
Total income tax provision (benefit)  $894,940 

 

At December 31, 2025 and December 31, 2024, the Company had federal and state net operating loss carryforwards of approximately $3.4 million (tax effected) and $2.4M (tax effected), portions of which will begin to expire in 2026. Utilization of some of the federal and state net operating losses carryforwards are subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses before utilization.

 

The Company will recognize penalties and interest accrued related to unrecognized tax benefits as a component of income taxes. As of December 31, 2024, the Company had $26,094 of accrued interest and penalties related to state income tax uncertain tax positions, in which $4,188 has been recognized in the Company’s statements of operations in the current year.

 

The Company is required to file income tax returns in various states. The Company is subject to income tax examinations by federal and state taxing authorities. The taxable years that are open under federal and state statute of limitations are 2021 through 2025. Due to net operating loss carryforwards that remain unutilized, such loss carryforwards remain subject to review until utilized.

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

   Year ended December 31, 2025   Year ended December 31, 2024 
Balance at the beginning of the year  $26,768   $- 
Increases related to positions taken in prior years   -    26,768 
Balance at the end of the year  $26,768   $26,768 

 

Income taxes paid, net of (refunds) received, is as follows:

 

   Year ended December 31, 2024 
Federal  $(169,495)
State   (1,967)
Total taxes paid  $(171,462)