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

9.         Income Taxes

 

The Company recorded the following provision for income taxes for the years ended December 31:

        
   2025   2024 
         
Current:          
Federal  $–   $– 
State   –    – 
Total current   –    – 
Deferred:          
Federal   (797,866)   

(433,537

)
State   (251,626)   

(144,117

)
Total deferred   (1,049,492)   (577,654)
Valuation allowance   1,049,492    (577,654)
Total provision for taxes  $–   $– 

 

The Company’s net deferred tax assets and liabilities are as follows at December 31:

        
   2025   2024 
         
Net operating losses  $1,099,798   $458,796 
Reserves and accruals   544,425    125,935 
Depreciation and amortization   (17,077)   (17,077)
Total:   1,627,146    577,654 
Valuation allowance   (1,627,146)   (577,654)
Net deferred tax assets  $–   $– 

 

During the years ended December 31, 2025 and 2024, the effective rate was approximately 0% and 0%, respectively. The Company’s federal income tax rate was 21% for the year ended December 31, 2025 and 21% for the year ended December 31, 2024. The difference between the federal statutory rate and the effective tax rate was due to a full valuation allowance on the deferred tax assets.

 

Prior to January 1, 2024, the Company was a limited liability company whereby its income or loss is allocated to the members. The Company will not be subject to federal or state income taxes from future profits or losses. Upon the conversion to a C-corporation, the Company recorded a deferred tax liability of $22,990 in connection with excess depreciation taken by the LLC. For tax purposes, the Company was considered a disregarded entity.

 

The Company has timely filed all its United States Federal and State tax returns. The Company has identified the United States Federal tax returns as its “major” tax jurisdiction, and for state tax reporting, the California. The Company‘s Federal income tax returns for the tax year 2021 forward is still subject to examination by the IRS. The Company’s state income tax return years for the tax year 2020 forward is still subject to examination by the corresponding state authorities. We do not currently have any ongoing tax examinations.