Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Taxes [Abstract] |
|
| Schedule of Reconciliation of Taxes |
Our
income before provision for (benefit from) income taxes for the years ended December 31, 2025 and 2024 was as follows:
| | |
December
31, | |
| | |
2025 | | |
2024 | |
| Income (loss) before income taxes | |
| | |
| |
| Domestic | |
$ | (30,016,549 | ) | |
$ | (14,318,644 | ) |
| Foreign | |
| (393,873 | ) | |
| (31,352 | ) |
| Income
(loss) before income taxes | |
$ | (30,410,422 | ) | |
$ | (14,349,996 | ) |
|
| Schedule of Benefit from Income Taxes |
The
benefit from income taxes was as follows:
| | |
December
31, | |
| | |
2025 | | |
2024 | |
| Current | |
| | |
| |
| U.S.
Federal | |
$ | - | | |
$ | - | |
| State
and local | |
| - | | |
| - | |
| Foreign | |
| - | | |
| - | |
| | |
| | | |
| | |
| | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| Deferred | |
| | | |
| | |
| U.S.
Federal | |
$ | (963,436 | ) | |
$ | (2,423,582 | ) |
| State
and local | |
| (301,873 | ) | |
| (695,810 | ) |
| Foreign | |
| (89,657 | ) | |
| - | |
| | |
| | | |
| | |
| | |
| (1,354,966 | ) | |
| (3,119,392 | ) |
| Valuation
Allowance | |
| 1,354,966 | | |
| 3,119,392 | |
| | |
| | | |
| | |
| | |
$ | - | | |
$ | - | |
| Total | |
| | | |
| | |
| U.S.
Federal | |
$ | - | | |
$ | - | |
| State
and local | |
| - | | |
| - | |
| Foreign | |
| - | | |
| - | |
| | |
$ | - | | |
$ | - | |
|
| Schedule of Reconciliation of Taxes |
Upon
adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Summary of Significant Accounting Policies,
the reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended December
31, 2025 was as follows:
| | |
December
31,
2025 | |
| | |
$ | | |
% | |
| U.S. federal statutory tax rate | |
| (6,386,189 | ) | |
| 21.00 | % |
| State and local tax effect | |
| - | | |
| 0.00 | % |
| Foreign tax effects | |
| | | |
| | |
| Spain | |
| 51,875 | | |
| -0.17 | % |
| Puerto Rico | |
| 30,838 | | |
| -0.10 | % |
| Effect of changes in tax laws or rates | |
| | | |
| | |
| Effect of cross-border tax laws | |
| | | |
| | |
| Tax Credits | |
| | | |
| | |
| Changes in valuation allowances | |
| 1,026,553 | | |
| -3.38 | % |
| Nontaxable or nondeductible items | |
| | | |
| | |
| Permanent items | |
| | | |
| | |
| Change in fair value
of warrants and convertible notes | |
| 3,228,505 | | |
| -10.62 | % |
| Goodwill impairment | |
| 1,298,038 | | |
| -4.27 | % |
| Non-controlling interest | |
| (28,170 | ) | |
| 0.09 | % |
| Deferred NOL true-up | |
| 1,455,051 | | |
| -4.78 | % |
| Deferred basis true-up | |
| (669,205 | ) | |
| 2.20 | % |
| Other | |
| (7,296 | ) | |
| 0.03 | % |
| Effective Tax Rate | |
| - | | |
| 0.00 | % |
A
reconciliation of the provision for income taxes with the amounts computed by applying the Federal income tax rate to income from operations
before the provision for income taxes is as follows for the years ended December 31, 2024:
| | |
December 31, | |
| | |
2024 | |
| U.S.
federal statutory rate | |
| 21.00 | % |
| | |
| | |
| State
taxes, net of federal benefit | |
| 4.51 | % |
| Permanent
items | |
| -1.97 | % |
| Deferred
true-Up | |
| 0.00 | % |
| Valuation
allowance | |
| -21.74 | % |
| Foreign
tax | |
| 0.00 | % |
| Other | |
| -1.80 | % |
| Effective
income tax rate | |
| 0.00 | % |
|
| Schedule of Cash Paid for Income Taxes |
There was
no cash paid for income taxes, net of refunds, during the years ended December 31, 2025 and 2024, respectively.
| | |
December
31, | |
| | |
2025 | | |
2024 | |
| Deferred tax assets: | |
| | |
| |
| Net
operating loss carryforwards | |
$ | 3,181,291 | | |
$ | 3,085,132 | |
| Stock
compensation | |
| 3,813,065 | | |
| 2,550,588 | |
| Lease
liability | |
| 253,720 | | |
| 258,441 | |
| Goodwill | |
| - | | |
| 51,036 | |
| Allowance
for bad debts | |
| 45,539 | | |
| 33,356 | |
| Charitable
contributions | |
| 19,031 | | |
| 14,126 | |
| | |
| | | |
| | |
| Total
deferred assets | |
| 7,312,646 | | |
| 5,992,679 | |
| | |
| | | |
| | |
| Deferred
tax liabilities | |
| | | |
| | |
| Basis
adjustment on acquired assets | |
| (1,121,748 | ) | |
| (1,157,639 | ) |
| Right
of use asset | |
| (244,372 | ) | |
| (252,920 | ) |
| Other | |
| (9,440 | ) | |
| - | |
| | |
| | | |
| | |
| Total
deferred liabilities | |
| (1,375,560 | ) | |
| (1,410,559 | ) |
| | |
| | | |
| | |
| Deferred
tax assets (liabilities) | |
| 5,937,086 | | |
| 4,582,120 | |
| Deferred
tax liabilities, net of valuation allowance | |
| (5,937,086 | ) | |
| (4,582,120 | ) |
| | |
| | | |
| | |
| Deferred
tax assets (liabilities, net of valuation allowance | |
$ | - | | |
$ | - | |
|