Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Taxes [Abstract] |
|
| Schedule of Loss Before Income Taxes |
The following table presented the loss
before income taxes for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09:
| | |
For
the Year Ended December 31, 2025 | |
| | |
| |
| Domestic | |
$ | 11,542,018 | |
| Foreign | |
| 6,730,255 | |
| Total loss before income
taxes | |
$ | 18,272,273 | |
|
| Schedule of Income Tax Expense |
Income
tax expense for the year ended December 31, 2025 and 2024 consisted of the following:
| | |
For the Years
Ended | |
| | |
December
31, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Current: | |
| | |
| |
| Federal | |
$ | - | | |
$ | - | |
| State | |
| 2,400 | | |
| 2,400 | |
| Foreign | |
| - | | |
| - | |
| Total | |
$ | 2,400 | | |
$ | 2,400 | |
|
| Schedule of Reconciliation of Income Tax |
The
following table presents a reconciliation of the Company’s income tax at statutory tax rate and income tax at effective tax rate
for the year ended December 31, 2024.
| | |
For the Years
Ended December 31, | |
| | |
2024 | |
| | |
| |
| Tax benefit at statutory rate | |
$ | (4,747,929 | ) |
| Net operating loss carryforwards (NOLs) | |
| 2,714,658 | |
| Foreign investment losses (gains) | |
| 650,560 | |
| Stock-based compensation expense | |
| 1,139,800 | |
| Amortization expense | |
| 73,900 | |
| Accrued payroll | |
| 232,000 | |
| Unrealized exchange losses (gains) | |
| (225,989 | ) |
| Others | |
| 165,400 | |
| Tax expense at effective
tax rate | |
$ | 2,400 | |
The following table is a reconciliation
of the U.S. federal statutory rate of 21% to the Company’s effective rate for the year ended December 31, 2025 in accordance with
the guidance in ASU No. 2023-09:
| | |
For the Years
Ended December 31, | |
| | |
2025 | |
| | |
$ | | |
% | |
| Federal statutory tax rate | |
$ | (3,839,553 | ) | |
| 21 | % |
| State statutory tax rate, net of deduction
on federal tax return | |
| 2,400 | | |
| 0.0 | % |
| Foreign tax effects: | |
| | | |
| | |
| Foreign tax effects - Japan | |
| (92,369 | ) | |
| 0.5 | % |
| Foreign tax effects - Others | |
| 31,252 | | |
| (0.2 | )% |
| Permanent difference: | |
| | | |
| | |
| Non-deductible items | |
| 429,709 | | |
| (2.4 | )% |
| Change in valuation
allowance | |
| 3,470,961 | | |
| (18.9 | )% |
| Effective tax rate | |
$ | 2,400 | | |
| 0.0 | % |
|
| Schedule of Deferred Tax Assets |
Deferred
tax assets as of December 31, 2025 and 2024 consist approximately of:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| | |
| | |
| |
| Net operating loss carryforwards
(NOLs) | |
$ | 19,273,474 | | |
$ | 17,047,000 | |
| Stock-based compensation expense | |
| 5,526,900 | | |
| 5,021,000 | |
| Accrued expenses and unpaid expenses payable | |
| 1,900,000 | | |
| 1,416,000 | |
| Tax credit carryforwards | |
| 68,000 | | |
| 68,000 | |
| Unrealized exchange losses (gain) | |
| (144,013 | ) | |
| (358,000 | ) |
| Excess of tax amortization over book amortization | |
| (112,000 | ) | |
| (112,000 | ) |
| Others | |
| (7,400 | ) | |
| (48,000 | ) |
| Gross | |
| 26,504,961 | | |
| 23,034,000 | |
| Valuation allowance | |
| (26,504,961 | ) | |
| (23,034,000 | ) |
| Net | |
$ | - | | |
$ | - | |
|