v3.26.1
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  $-   $-