v3.26.1
TAXES (Tables)
3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX PROVISION

The provision for income tax consists of the following:

 

 

         
  

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:

 

 

         
   Three months ended 
   March 31, 
  

2026

(unaudited)

   2025 
         
Net (loss) income before income taxes  $(1,176,411)  $(2,628,502)
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:

 

 

  

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