v3.26.1
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  $-   $-