
	Year Ended December 31,
	2025			2024
Current:
Federal	$	(1,470,003	)	$	—
State		(660,436	)		—
total	$	(2,130,439	)	$	—

Deferred:
Federal	$	207,710		$	29,664
State		65,593			9,367
total	$	273,303		$	39,031
(Benefit) provision for income tax expense	$	(1,857,136	)	$	39,031


	2025
Federal statutory income tax expense	$	(571,900	)	21.0	%
State income taxes, net of federal income tax effect ^(a)		(163,400	)	6.0	%
Changes in valuation allowance ^(b)		(1,052,870	)	38.7	%
Return to provision adjustments		(68,966	)	2.5	%
Income tax benefit	$	(1,857,136	)	68.2	%

^(a)

State taxes in Florida and California made up the majority (greater than 50 percent) of the tax effect in this category.

^(b)

The taxable gain generated from the sale of the discontinued operation (discussed below) provided a source of income, allowing for the realization of these deferred tax assets which previously did not meet the “more likely than not” criteria.

Schedule of expected income tax expense benefit


	2024
U.S. Federal Statutory Rate		21.0	%
State Taxes		6.9	%
Other permanent and prior period adjustments		5.7	%
Valuation allowance		(33.6	)%
Income tax provision		—	%

Schedule of components of deferred taxes


	Year Ended December 31,
	2025			2024
Deferred tax assets:
Net operating loss carryforwards	$	—		$	2,277,000
Operating lease – Right of use asset		—			172,496
Total deferred tax assets		—			2,449,496
Deferred tax liabilities:
Property and equipment		—			(521,358	)
Intangibles		—			(120,123	)
Goodwill		—			(195,154	)
Lease Liability		—			(158,947	)
Deferred gain		(312,334	)		—
Total deferred tax liabilities		(312,334	)		(995,582	)

Valuation Allowance		—			(1,492,945	)

Net deferred taxes	$	(312,334	)	$	(39,031	)