v3.26.1
Income taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The source of pre-tax income and the components of income tax expense are as follows:
For the Three Months Ended
March 31,
20262025
USDUSD
Income components
United States$(847,719)$(1,818,919)
Outside United States(270,768)263,832 
Total pre-tax loss$(1,118,487)$(1,555,087)
Provision for (benefit of) income taxes  
Current  
Federal$— $— 
State— 2,088 
Foreign24,857 17,080 
24,857 19,168 
Deferred  
Federal— (608,145)
State— (150,553)
Foreign(179)— 
(179)(758,698)
Total provision for (benefit of) income taxes$24,678 $(739,530)
Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows:
For the Three Months Ended
March 31,
20262025
USD%USD%
Income tax expense at Federal statutory tax rate$(234,882)21.0 $(326,568)21.0 
Increase (decrease) in tax rate resulting from:
State and local income taxes, net of federal benefit(1)
22,213 (2.0)(117,287)7.5 
Foreign tax effects (statutory rate differential)
Hong Kong58,062 (5.2)19,622 (1.3)
Canada27,390 (2.4)3,320 (0.2)
Cayman Islands(17,059)1.5 55,003 (3.5)
Cambodia(13,335)1.2 (72,348)4.7 
Other26,481 (2.4)(42,798)2.8 
Nontaxable or nondeductible items12,425 (1.1)7,959 (0.5)
Valuation allowance143,277 (12.8)— — 
Other adjustments(2)
106 — (266,433)17.2 
Income tax expense$24,678 (2.2)$(739,530)47.7 
(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California and New Jersey for the three months ended March 31, 2026 and 2025.
(2) For the three months ended March 31, 2025, other adjustments included right-of-use asset movements.
Income taxes paid by jurisdiction were as follows:
For the Three Months Ended
March 31,
20262025
USDUSD
Federal$— $— 
State375 625 
Foreign
Cambodia11,667 — 
Germany(7,725)— 
Other452 225 
Total cash paid for income taxes, net of refunds received$4,769 $850 
The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:
As of
March 31, 2026		As of
December 31, 2025
USDUSD
Deferred tax assets  
Allowance for credit losses$48,066 $46,824 
Other reserve 138,103 157,620 
Accrued expenses157,068 149,705 
Lease liability1,063,602 1,131,158 
Charitable contributions 923 923 
Business interest limitation 927,785 927,728 
Net operating loss – federal 2,475,315 2,257,513 
Net operating loss – state648,418 573,279 
Other211,330 211,125 
Total deferred tax assets 5,670,610 5,455,875 
Less: valuation allowance(4,294,339)(4,013,288)
Net deferred tax assets1,376,271 1,442,587 
Deferred tax liabilities  
Fixed assets1,050,766 1,140,919 
Intangibles113,745 90,087 
Total deferred tax liabilities 1,164,511 1,231,006 
Deferred tax assets, net of deferred tax liabilities$211,760 $211,581 
The deferred tax assets related to the Company’s net operating losses of $22,126,619 (federal $11,787,208 and states $10,339,411) and $21,770,284 (federal $12,171,811 and states $9,598,473) as of March 31, 2026 and December 31, 2025, respectively. The federal net operating losses have no expiration date. The states net operating losses have either 20 years or no expiration date. The Company had no material unrecognized tax benefits at March 31, 2026 or December 31, 2025. The Company has not taken any tax positions for which it is reasonably possible that unrecognized tax benefits will significantly increase within the next 12 months.
On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA legislation did not have a material impact on our effective tax rate, deferred tax position, or results of operations in 2025.