| SCHEDULE OF INCOME TAX PROVISION |
The
provision for income tax consists of the following:
SCHEDULE OF INCOME TAX PROVISION
| | |
| | |
| |
| | |
Three months ended March 31, | |
| | |
2026 (unaudited) | | |
2025 | |
| | |
| | |
| |
| Income tax provision – current | |
$ | 4,280 | | |
$ | 4,280 | |
| Income tax recovery - deferred | |
| (173,141 | ) | |
| (544,075 | ) |
| Income tax (recovery) provision | |
$ | (168,861 | ) | |
$ | (539,795 | ) |
|
| SCHEDULE OF RECONCILIATION OF INCOME TAXES |
The
following table reconciles the statutory tax rate to the Company’s effective tax:
SCHEDULE OF RECONCILIATION OF INCOME TAXES
| | |
| | |
| |
| | |
Three months ended | |
| | |
March 31, | |
| | |
2026 (unaudited) | | |
2025 | |
| | |
| | |
| |
| Income tax at the federal statutory rate | |
| 21 | % | |
| 21 | % |
| Statutory U.S. federal income tax (recovery) provision | |
| (247,046 | ) | |
| (551,985 | ) |
| State margin tax | |
| 4,280 | | |
| 4,280 | |
| Non-deductible expense | |
| 73,905 | | |
| 7,910 | |
| Total | |
$ | (168,861 | ) | |
$ | (539,795 | ) |
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
The
Company’s deferred tax assets and liabilities consist of the following:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| | |
March 31, 2026 (unaudited) | | |
December 31, 2025 | |
| Deferred tax assets: | |
| | | |
| | |
| Allowance for credit loss | |
$ | 98,248 | | |
$ | 126,955 | |
| Property and equipment | |
| - | | |
| 16,480 | |
| Lease liability – operating | |
| 1,440,944 | | |
| 1,556,666 | |
| Lease liability – financing | |
| 4,717 | | |
| 7,057 | |
| Other temporary difference | |
| 3,183,762 | | |
| 2,938,627 | |
| Total deferred tax assets | |
| 4,727,671 | | |
| 4,645,785 | |
| Deferred tax liabilities: | |
| | | |
| | |
| Right of use assets – operating | |
| (1,462,470 | ) | |
| (1,551,546 | ) |
| Right of use assets – financing | |
| (4,228 | ) | |
| (6,408 | ) |
| Total deferred tax liabilities | |
| (1,466,698 | ) | |
| (1,557,954 | ) |
| Deferred tax assets, net | |
$ | 3,260,973 | | |
$ | 3,087,831 | |
|