Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
|
| Schedule of Taxes Payable |
Taxes payable consisted of the following at December 31, 2025 and 2024:
Schedule of Taxes Payable
| | |
2025 | | |
2024 | |
| Income tax payable - current | |
| - | | |
| (1,852,399 | ) |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The
(benefit) provision for income taxes on loss from continuing operations consisted of the following:
Schedule of Components of Income Tax Expense (Benefit)
| | |
2025 | | |
2024 | |
| Current: | |
| | | |
| | |
| Federal | |
$ | 194,021 | | |
$ | - | |
| State | |
| 800 | | |
| 2,400 | |
| Malaysia | |
| (775,808 | ) | |
| 214 | |
| Income tax expense current | |
| (580,987 | ) | |
| 2,614 | |
| | |
| | | |
| | |
| Deferred: | |
| | | |
| | |
| Federal | |
| - | | |
| - | |
| State | |
| - | | |
| - | |
| Total provision expense for income taxes | |
$ | (580,987 | ) | |
$ | 2,614 | |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The
following is a reconciliation of the difference between the actual (benefit) provision for income taxes and the (benefit) provision computed
by applying the federal statutory rate on income before income taxes from continuing operations:
Schedule of Effective Income Tax Rate Reconciliation
| | |
2025 | | |
2024 | |
| Tax at federal statutory rate | |
$ | (106,257 | ) | |
$ | (1,167,410 | ) |
| State and local income taxes, net of federal effect | |
| 800 | | |
| - | |
| Foreign tax effects | |
| | | |
| | |
| Malaysia | |
| | | |
| | |
| Foreign rate differential | |
| (10,549 | ) | |
| (128,754 | ) |
| Tax effects of liquidation | |
| (691,414 | ) | |
| - | |
| Other foreign | |
| (16,467 | ) | |
| - | |
| Stock based compensation | |
| - | | |
| 123,077 | |
| Non-deductible Expenses | |
| - | | |
| - | |
| Penalty | |
| 194,021 | | |
| - | |
| Others | |
| (19,966 | ) | |
| (779,043 | ) |
| Valuation allowance | |
| 68,845 | | |
| 1,954,744 | |
| Total provision for income taxes | |
$ | (580,987 | ) | |
$ | 2,614 | |
|
| Schedule of Aggregate Dollar Effects of the Company’s Tax Exemption |
The
following presents the aggregate dollar effects of the Company’s tax exemption from its continuing operations:
Schedule of Aggregate Dollar Effects of the Company’s Tax Exemption
| | |
| 2025 | | |
| 2024 | |
| Aggregate dollar effect of tax holiday | |
$ | - | | |
$ | - | |
|
| Schedule of Deferred Tax Assets And Liabilities |
Deferred
tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets
and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to
reverse. Deferred taxes are comprised of the following:
Schedule of Deferred Tax Assets And Liabilities
| | |
2025 | | |
2024 | |
| Non-Current Deferred Tax Assets: | |
| | | |
| | |
| Accrued liabilities | |
$ | 408 | | |
$ | 57,773 | |
| Accrued Warranty Liability | |
| 8,955 | | |
| 3,796 | |
| Fed & CA amortization | |
| 2,489 | | |
| 5,587 | |
| Stock compensation | |
| 155,532 | | |
| 143,960 | |
| ASC 842 – lease liability | |
| 176,800 | | |
| 335,645 | |
| Inventory | |
| - | | |
| - | |
| U.S. NOL | |
| 5,214,957 | | |
| 5,374,809 | |
| Capital loss | |
| 734,976 | | |
| 734,976 | |
| Charitable Contribution | |
| 1,906 | | |
| 1,129 | |
| R&D Capitalization | |
| 2,047 | | |
| 794,736 | |
| Interest | |
| 1,944 | | |
| 1,944 | |
| | |
| | | |
| | |
| Non-Current Deferred Tax Liabilities: | |
| | | |
| | |
| Fed & CA depreciation | |
| (5,679 | ) | |
| (7,926 | ) |
| Prepaid expenses | |
| (4,114 | ) | |
| (18,940 | ) |
| ASC 842- ROU Asset | |
| (166,447 | ) | |
| (320,454 | ) |
| Unrealized Gain on Preamble | |
| (88,452 | ) | |
| - | |
| | |
| | | |
| | |
| Net Non-Current Deferred Tax Assets before Valuation Allowance | |
| 6,035,322 | | |
| 7,107,035 | |
| Less: Valuation Allowance | |
| (6,035,322 | ) | |
| (7,107,035 | ) |
| Non-Current Deferred Tax Assets, Net: | |
| - | | |
| - | |
| Total Deferred Assets, Net: | |
$ | - | | |
$ | - | |
|
| Schedule of Income Taxes Paid(Net of Refunds Received) |
Cash
paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended
December 31, 2025 is as follows:
Schedule
of Income Taxes Paid(Net of Refunds Received)
| | |
2025 | |
| Federal | |
$ | 1,304,247 | |
| State | |
| - | |
| Foreign | |
| - | |
| Cash paid for income taxes, net of refunds received | |
$ | 1,304,247 | |
|