| Schedule of Provision for Income Tax Expense |
The
components of the provision for income tax expense are as follows for the years ended:
Schedule
of Provision for Income Tax Expense
| | |
2025 | | |
2024 | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| Current taxes | |
| | | |
| | |
| Federal | |
$ | 18,447 | | |
$ | — | |
| State | |
| 6,299 | | |
| — | |
| Current taxes | |
| 24,746 | | |
| — | |
| True up for new state tax rate | |
| (7,254 | ) | |
| | |
| Perm differences | |
| 1,393 | | |
| | |
| Temp differences | |
| 21,803 | | |
| 62,146 | |
| Change in valuation allowance | |
| (23,656 | ) | |
| (62,146 | ) |
| | |
| | | |
| | |
| Provision for income tax expense | |
$ | 17,302 | | |
$ | — | |
|
| Summary of Significant Components of Deferred Tax Assets and Liabilities |
The
following is a summary of the significant components of the Company’s deferred tax assets and liabilities at December 31, 2025
and 2024:
Summary of Significant Components of Deferred
Tax Assets and Liabilities
| | |
2025 | | |
2024 | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| Deferred tax assets: | |
| | | |
| | |
| Equity based compensation | |
$ | 435,652 | | |
$ | 416,237 | |
| Allowance for doubtful accounts | |
| 5,209 | | |
| 5,954 | |
| Deferred Rent | |
| 6,372 | | |
| (1,796 | ) |
| Reserves for slow moving inventory | |
| 44,394 | | |
| 50,292 | |
| Depreciation | |
| 87,285 | | |
| 52,867 | |
| Reserve for recall | |
| 10,247 | | |
| 0 | |
| Net operating loss carry forward | |
| 1,995,307 | | |
| 2,027,000 | |
| Total deferred tax assets | |
| 2,584,466 | | |
| 2,550,554 | |
| Deferred tax liabilities | |
| | | |
| | |
| Reserve for recall | |
| - | | |
| - | |
| Total deferred tax asset (liability) | |
| - | | |
| - | |
| Total deferred tax | |
| 2,584,466 | | |
| 2,550,554 | |
| Valuation allowance | |
| (2,584,466 | ) | |
| (2,550,554 | ) |
| | |
| | | |
| | |
| Deferred tax assets, net of valuation allowance | |
$ | - | | |
$ | - | |
|
| Schedule of Differences Between Statutory Tax Rate and Effective Tax Rate |
The
significant differences between the statutory tax rate and the effective tax rates for the Company for the years ended are as follows:
Schedule
of Differences Between Statutory Tax Rate and Effective Tax Rate
| | |
2025 | | |
2024 | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| Statutory tax rate-Federal | |
| 21.00 | % | |
| 21.00 | % |
| State tax, net of Federal benefits | |
| 7.17 | % | |
| (4.00 | )% |
| True up for new state tax rate | |
| 8.26 | % | |
| - | |
| Permanent differences | |
| (1.58 | )% | |
| 0.11 | % |
| Temporary differences | |
| (24.82 | )% | |
| (1.17 | )% |
| Change in valuation allowance | |
| 23.76 | % | |
| 26.06 | % |
| Effective tax rate | |
| (13.740 | )% | |
| — | % |
|