| Schedule of Effective Income Tax Rate Reconciliation |
The
tables below reconcile the United States effective tax rate of 21% to the Company’s income tax (benefit) for the years ended
December 31, 2025 (pursuant to ASU 203-09) and December 31, 2024.
Schedule of Effective Income Tax Rate Reconciliation
| | |
| | |
|
|
|
|
| | |
December 31, 2025 | |
|
|
|
| | |
| |
|
|
|
|
| United States federal statutory tax rate | |
| (466,088 | ) |
|
|
21.0 |
% |
| Arkansas tax benefit, net of federal tax benefit | |
| (58,470 | ) |
|
|
2.6 |
% |
| Deferred state income taxes, no federal benefit | |
| (172,158 | ) |
|
|
7.8 |
% |
| Permanent differences, net | |
| | |
|
|
|
|
| Changes in valuation allowance | |
| 1,476,893 | |
|
|
(66.5 |
)% |
| Non-taxable or non-deductible items | |
| | |
|
|
|
|
| Change in fair market value of warrant liability | |
| (277,383 | ) |
|
|
12.5 |
% |
| Gain on extinguishment of forward purchase derivative and exchange of debt | |
| (700,605 | ) |
|
|
31.6 |
% |
| Costs incurred to secure financing | |
| 168,000 | |
|
|
(7.6 |
)% |
| Other | |
| (52,114 | ) |
|
|
2.4 |
% |
| Prior year true up of deferred taxes | |
| 23,455 | |
|
|
(1.0 |
)% |
| Income tax benefit | |
$ | (58,470 | ) |
|
|
2.6 |
% |
| | |
| | |
| | |
December 31, 2024 | |
| | |
| |
| United States federal statutory income tax rate of 21% | |
| (936,555 | ) |
| State income tax benefit, net of federal benefit | |
| (8,418 | ) |
| Permanent differences, net | |
| 583,678 | |
| Valuation allowance charges affecting the provision for income taxes | |
| 44,277,923 | |
| Other | |
| (56,942 | ) |
| Total | |
$ | 43,859,686 | |
|
| Schedule of deferred tax assets and liabilities |
Schedule
of deferred tax assets and liabilities
| |
|
December
31, 2025 |
|
|
December
31, 2024 |
|
|
Change |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital loss carryover |
|
$ |
70,627 |
|
|
$ |
70,627 |
|
|
$ |
- |
|
| Stock option expense |
|
|
2,043,599 |
|
|
|
1,674,554 |
|
|
|
369,045 |
|
| Deferred revenue |
|
|
3,774 |
|
|
|
6,935 |
|
|
|
(3,161 |
) |
| Fixed assets |
|
|
8,794 |
|
|
|
23,992 |
|
|
|
(15,198 |
) |
| Transaction costs |
|
|
924,764 |
|
|
|
942,062 |
|
|
|
(17,298 |
) |
| Forward purchase contract |
|
|
- |
|
|
|
8,155,953 |
|
|
|
(8,155,953 |
) |
| Goodwill |
|
|
26,180,613 |
|
|
|
28,404,108 |
|
|
|
(2,223,495 |
) |
| NOL
carry forward |
|
|
16,551,647 |
|
|
|
5,030,672 |
|
|
|
11,520,975 |
|
| Accrued expenses |
|
|
3,917 |
|
|
|
- |
|
|
|
3,917 |
|
| Contract assets |
|
|
789,914 |
|
|
|
- |
|
|
|
789,914 |
|
| Right of use assets |
|
|
173,934 |
|
|
|
214,124 |
|
|
|
(40,190 |
) |
| Total deferred tax assets |
|
|
46,751,583 |
|
|
|
44,523,027 |
|
|
|
2,228,556 |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Lease liabilities |
|
|
(133,944 |
) |
|
|
(172,195 |
) |
|
|
38,251 |
|
| Financial indemnification liability | |
| (267,266 | ) | |
| - | | |
| (267,266 | ) |
| Stand ready liability | |
| (522,648 | ) | |
| - | | |
| (522,648 | ) |
| Total deferred tax liabilities |
|
|
(923,858 |
) |
|
|
(172,195 |
) |
|
|
(751,663 |
) |
| Net deferred tax assets |
|
|
45,827,725 |
|
|
|
44,350,832 |
|
|
|
1,476,893 |
|
| Valuation allowance |
|
|
(45,827,725 |
) |
|
|
(44,350,832 |
) |
|
|
(1,476,893 |
) |
| Deferred tax asset |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|