v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Old Glory Holding Co [Member]  
INCOME TAXES

 

(12) INCOME TAXES

 

The components of income tax expense (benefit) are summarized as follows for the years ended December 31, 2025 and 2024:

 

   2025   2024 
   Year Ended December 31, 
   2025   2024 
Current taxes          
Federal  $-   $- 
State   -    - 
Total current income taxes   -    - 
Deferred   (3,449)   (3,403)
Change in valuation allowance   3,449    3,403 
           
Income tax expense (benefit)  $-   $- 

 

 

OLD GLORY HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except share data)

 

December 31, 2025 and 2024

 

 

A reconciliation of actual income tax expense in the consolidated financial statements to the expected tax expense (computed by applying the statutory federal income tax rate of 21% to income before income taxes) for the years ended December 31, 2025 and 2024 is as follows:

 

   Amount   Income   Amount   Income 
   Years Ended December 31, 
   2025   2024 
       % of Pretax       % of Pretax 
   Amount   Income   Amount   Income 
U.S. federal statutory rate  $(3,117)   -21.0%  $(3,042)   21.0%
                     
State income taxes, net of federal benefit   -    0.0%   -    0.0%
Nondeductible expenses:                    
Stock-based compensation   84    0.6%   38    -0.3%
Meals and entertainment   28    0.2%   41    -0.3%
Valuation allowance changes   3,005    20.2%   2,963    -20.5%
                     
Income tax expense  $-    0.0%  $-    0.0%

 

The following is a summary of the components of the net deferred tax assets recognized in the accompanying statements of financial condition at December 31:

 

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

   2025   2024 
   December 31, 
   2025   2024 
         
Deferred Tax Assets          
Start up costs  $713   $777 
Stock based compensation   348    194 
Net unrealized loss on available for sale securities   137    - 
Other   75    - 
Net operating losses   9,811    6,506 
Deferred Tax Assets   11,084    7,477 
           
Deferred Tax Liabilities          
Net unrealized gain on available-for-sale securities   -    (1)
Other   (23)   (1)
Deferred Tax Liabilities   (23)   (2)
           
Valuation allowance   (11,061)   (7,475)
           
Net deferred tax assets  $-   $- 

 

A valuation allowance has been established because the Company has not yet reported sufficient earnings to support the recognition of the deferred tax assets.

 

The Company has federal and state income tax net operating loss (“NOL”) carryforwards of the following as of December 31, 2025 and 2024 after consideration of IRS code section 382 NOL limitations: 

 

   2025   2024   Expiration
            
Federal   40,796    26,900   Do not expire
              
Oklahoma   41,011    26,900   Do not expire

 

The Company is subject to federal income tax and income tax of the state of Oklahoma. Federal and Oklahoma income tax returns for the years ended December 31, 2024 and 2023 are open to audit.

 

In accordance with current accounting guidance, the Company records interest and penalties related to uncertain tax positions as part of income tax expense. There was no penalty or interest expense recorded for the years ended December 31, 2025 and 2024.

 

The Company does not have any material uncertain tax positions as of December 31, 2025 and 2024.

 

The Company is not subject to foreign income tax and has no foreign income from continuing operations.

 

 

OLD GLORY HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except share data)

 

December 31, 2025 and 2024

 

 

(13) RELATED-PARTY TRANSACTIONS