| Schedule of Income Tax Provision |
| | |
For the year ended | |
| | |
December 31,
2025, | | |
December 31,
2024, | |
| Current income tax provision/(benefit): | |
| | |
| |
| Federal | |
$ | - | | |
$ | - | |
| State | |
| 16,612 | | |
| 36,504 | |
| Total current income tax provision/(benefit) | |
| 16,612 | | |
| 36,504 | |
| | |
| | | |
| | |
| Deferred income tax provision/(benefit): | |
| | | |
| | |
| Federal | |
| 8,515 | | |
| (1,475,347 | ) |
| State | |
| 43,299 | | |
| (204,058 | ) |
| Total deferred income tax provision/(benefit) | |
| 51,814 | | |
| (1,679,405 | ) |
| | |
| | | |
| | |
| Total income tax provision for (benefit from) continuing operations | |
$ | 68,426 | | |
$ | (1,642,901 | ) |
|
| Schedule of Reconciliation of Federal Income Tax Rate to Company's Effective Tax Rate |
| | |
For the year ended
December 31, 2025, | |
| | |
Amount | | |
Percentage | |
| U.S. federal statutory tax | |
$ | (3,075,328 | ) | |
| 21.00 | % |
| Foreign tax effects | |
| | | |
| | |
| Statutory tax rate difference between Foreign and United States | |
| - | | |
| - | |
| Other | |
| - | | |
| - | |
| State taxes, net of federal tax benefit | |
| (440,377 | ) | |
| 3.01 | |
| Return to income tax provision adjustments | |
| (164,991 | ) | |
| 1.13 | |
| Changes in valuation allowances | |
| 3,170,633 | | |
| (21.65 | ) |
| Nontaxable or nondeductible items | |
| | | |
| | |
| Meals and entertainment | |
| 1,401 | | |
| (0.01 | ) |
| Extinguishment of debt | |
| 37,550 | | |
| (0.26 | ) |
| Gain/loss on change in fair value of financial instruments | |
| 380,791 | | |
| (2.60 | ) |
| Stock-based compensation | |
| 148,559 | | |
| (1.02 | ) |
| Penalties | |
| 10,188 | | |
| (0.07 | ) |
| Provision for income tax | |
$ | 68,426 | | |
| (0.47 | )% |
| | |
December 31,
2024 | |
| Income tax benefit at federal statutory rate | |
| 21.00 | % |
| State taxes, net of federal tax benefit | |
| 3.35 | |
| Change in valuation allowance | |
| 2.10 | |
| Return to income tax provision adjustments | |
| (1.69 | ) |
| Goodwill impairment | |
| (22.60 | ) |
| Permanent differences, net | |
| 0.61 | |
| Income tax benefit | |
| 2.77 | % |
|
| Schedule of Deferred Tax Assets and Liabilities |
| | |
As of December 31, | |
| | |
2025 | | |
2024 | |
| Deferred tax assets: | |
| | |
| |
| Net operating loss carryforwards | |
$ | 6,982,167 | | |
$ | 3,919,766 | |
| Bad debt expense | |
| 189,503 | | |
| 566,346 | |
| Accounts payable and accrued liabilities | |
| - | | |
| 375,907 | |
| Interest payable | |
| - | | |
| 74,565 | |
| Accrued payroll | |
| - | | |
| 269,958 | |
| Deferred revenue | |
| 17,198 | | |
| 78,189 | |
| Deferred compensation | |
| 75,665 | | |
| 211,778 | |
| Accrued interest, related party | |
| 41,847 | | |
| 28,909 | |
| Encompass Purchase Liability | |
| 80,996 | | |
| - | |
| Start-up costs | |
| 736,710 | | |
| 738,876 | |
| Operating and finance lease liabilities | |
| - | | |
| 70,742 | |
| Total deferred tax assets | |
| 8,124,086 | | |
| 6,335,036 | |
| (Less) valuation allowance | |
| (6,257,237 | ) | |
| (3,086,603 | ) |
| Net deferred tax assets | |
| 1,866,849 | | |
| 3,248,433 | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| Depreciation | |
| (8,893 | ) | |
| (5,051 | ) |
| Amortization | |
| (1,977,148 | ) | |
| (2,581,286 | ) |
| Accounts receivable | |
| - | | |
| (702,703 | ) |
| Prepaids and other current assets | |
| - | | |
| (26,771 | ) |
| Total deferred tax liabilities | |
| (1,986,041 | ) | |
| (3,315,811 | ) |
| | |
| | | |
| | |
| Total deferred tax liabilities | |
$ | (119,192 | ) | |
$ | (67,378 | ) |
|