| SCHEDULE OF RECONCILIATION OF STATUTORY INCOME TAX RATES |
The
following table reconciles the statutory income tax rates to actual rates based on income or loss before income taxes as of December
31, 2025 and 2024:
SCHEDULE OF RECONCILIATION OF STATUTORY INCOME TAX RATES
| | |
2025 | | |
2024 | |
| | |
Total | | |
Tax Rate | | |
Total | | |
Tax Rate | |
| Income tax benefit at federal statutory rate | |
| (10,664,057 | ) | |
| 21.0 | % | |
| (6,886,628 | ) | |
| 21.0 | % |
| Non-controlling interest | |
| 2,012,411 | | |
| -4.0 | % | |
| 312,596 | | |
| -1.0 | % |
| Equity based compensation | |
| 58,353 | | |
| -0.1 | % | |
| 1,469,853 | | |
| -4.5 | % |
| Interest expense | |
| 266,987 | | |
| -0.5 | % | |
| 595,025 | | |
| -1.8 | % |
| Financing expense | |
| - | | |
| 0.0 | % | |
| 525,000 | | |
| -1.6 | % |
| State and local income taxes net of federal tax benefit | |
| (1,450,204 | ) | |
| 2.9 | % | |
| (679,184 | ) | |
| 2.1 | % |
| Others | |
| (182,978 | ) | |
| 0.4 | % | |
| 239,627 | | |
| -0.7 | % |
| Valuation allowance | |
| 9,959,488 | | |
| -19.7 | % | |
| 4,423,711 | | |
| -13.5 | % |
| Provision for income taxes | |
| - | | |
| 0.0 | % | |
| - | | |
| 0 | % |
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
Below
is a summary of the Company’s deferred tax assets and liabilities:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| | |
2025 | | |
2024 | |
| Net operating loss and tax credits carry forwards | |
| 14,823,636 | | |
| 4,710,756 | |
| Lease liability | |
| 8,140,324 | | |
| 4,284,550 | |
| Investments in partnerships | |
| 3,227,176 | | |
| 1,565,317 | |
| Equity based compensation | |
| 5,291,552 | | |
| 1,493,341 | |
| Deferred revenue | |
| 338,390 | | |
| 407,571 | |
| Others | |
| 385,145 | | |
| 44,699 | |
| Deferred tax assets before valuation allowance | |
| 32,206,223 | | |
| 12,506,234 | |
| Valuation allowance | |
| (17,871,255 | ) | |
| (7,911,767 | ) |
| Deferred tax assets after valuation allowance | |
| 14,334,968 | | |
| 4,594,467 | |
| Right of use assets | |
| (7,934,400 | ) | |
| (4,122,635 | ) |
| Fixed assets | |
| (6,400,568 | ) | |
| (471,832 | ) |
| Deferred tax liabilities | |
| (14,334,968 | ) | |
| (4,594,467 | ) |
| Net deferred tax assets and liabilities | |
| - | | |
| - | |
|