v3.26.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,160,998) $ (48,319,475)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization expense 3,155 711,929
Amortization of contract asset 129,072
Stock compensation expense 1,523,489 1,575,952
Gain on extinguishment of forward purchase derivative (3,336,213)
Amortization of prepaid consulting from the issuance of Series B Convertible Preferred Stock and Series B Warrants 59,857
Net deferred indemnified loan origination fees (63,275)
Discount on common stock sold pursuant to the ELOC 76,553
Other non-cash issuance costs related to the ELOC 800,000
Shares issued in settlement of a legal dispute 200,000
Non-cash interest on issuance of convertible notes 137,500
Lease expense (7,981) 23,181
Credit loss (benefit) expense (177,917) (1,393,131)
Impairment of goodwill 6,058,000
Impairment of long-lived intangible assets 3,090,881
Deferred tax expense, net 43,859,686
Marketing expense settled via Common Stock 100,000
Change in fair value of warrant liabilities (1,320,871) (2,803,638)
Change in the fair value of deferred consideration (79,475) (361,449)
Changes in operating assets and liabilities:    
Accounts receivable – trade 103,233 (12,734)
Accounts receivable – related party (41,460) 1,127,297
Prepaid expenses 561,913 86,901
Other current liabilities (48,960) 527
Accrued interest receivable 16,319 (2,542)
Other current assets 4,057 (2,968,061)
Accounts payable 49,105 (76,672)
Accounts payable – related party 95,757 (501,709)
Accrued expenses 9,085 292,396
Deferred revenue (12,920) 6,413
Net cash (used in) provided by operating activities (3,417,700) 430,477
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from sale of preferred securities 50,000
Proceeds from loan repayment and sale 392,186 12,394
Net cash provided by investing activities 442,186 12,394
CASH FLOWS FROM FINANCING ACTIVITIES:    
Tax withholding payments on vesting of restricted stock units (12,771)
Proceeds from convertible debt 550,000
Redemption of Series B Convertible Preferred Stock (292,800)
Gross proceeds from issuance of Series B Convertible Preferred Stock and Series B Warrants 6,130,000
Offering cost (351,646)
Proceeds from the sale of Class A Common Stock 1,778,987
Repayment of financed insurance contract (116,098)
Repayment of senior secured promissory note (255,765) (3,006,993)
Net cash provided by (used in) financing activities 7,429,907 (3,006,993)
Net increase (decrease) in cash and cash equivalents 4,454,393 (2,564,122)
Cash and cash equivalents – beginning of period 2,324,647 4,888,769
Cash and cash equivalents – end of period 6,779,040 2,324,647
Supplemental disclosure of cash flow information    
Interest paid 388,457 416,852
Non cash transactions:    
Reclassification of forward purchase receivable (4,584,221)
Marketing expense settled by the issuance of Common Stock 50,000
Investment in preferred securities 1,500,000
Prepaid consulting expense from the issuance of the Series B Convertible Preferred Stock and Series B Warrants 371,307
Extinguishment of debt for issuance of Series B Convertible Preferred Stock and Series B Warrants 10,748,408
Exchange of forward purchase derivative liability for the issuance of Series B Convertible Preferred Stock and Series B Warrants 4,000,867
Exchange of convertible notes for Series B Convertible Preferred Stock and Series B warrants 659,997
Financed insurance contract (classified in accrued expense) 395,900
Issuance of stock to Abaca shareholders 258,868
Accrued redemption payable to Series B holders 181,378
Recognition of contract asset with corresponding stand-ready guarantee liability 2,135,000
Recognition of contract asset with corresponding financial indemnification liability $ 1,091,772