| Schedule of Net Pre-Tax Book Loss for the United States and Foreign |
For financial reporting purposes, the net pre-tax book loss for the United States and foreign entities, in the aggregate, was:
|
|
|
Year Ended December 31, 2025
|
|
Year Ended December 31, 2024
|
|
Federal
|
|
$
|
(1,436,000 |
)
|
|
$
|
(1,366,000 |
)
|
|
Foreign
|
|
|
—
|
|
|
|
—
|
|
|
Total
|
|
$
|
(1,436,000 |
)
|
|
$
|
(1,366,000 |
)
|
|
| Schedule of Provision for Income Taxes |
The provision for (benefit from) income taxes for the years ended December 31, 2025 and 2024, is set forth below:
|
Current
|
|
Year Ended December 31, 2025
|
|
Year Ended December 31, 2024
|
|
Federal
|
|
$
|
(131,000 |
)
|
|
$
|
—
|
|
State
|
|
|
—
|
|
|
|
—
|
|
Foreign
|
|
|
—
|
|
|
|
—
|
|
Total Provision for Income Taxes
|
|
$
|
(131,000 |
)
|
|
$
|
—
|
|
| Schedule of Reconciliation of Effective Tax Rate |
The following is a reconciliation of our effective tax rate on income and the statutory rate for the year ended December 31, 2025:
|
|
|
Year Ended December 31, 2025
|
|
|
|
Current tax at U.S statutory rate
|
|
$
|
(301,000 |
)
|
|
21.0 |
%
|
|
State and local taxes, net of federal taxes(a)
|
|
|
—
|
|
|
0.0 |
%
|
| |
|
|
|
|
|
|
|
|
Changes in Valuation Allowance
|
|
|
154,000 |
|
|
-10.7 |
%
|
| |
|
|
|
|
|
|
|
|
Nondeductible/non taxable items
|
|
|
|
|
|
|
|
|
Nondeductible/nontaxable items
|
|
|
31,000 |
|
|
-2.2 |
%
|
|
Other Adjustments
|
|
|
|
|
|
|
|
|
Deferred Adjustment – Asset Write-Down Related to Transferable Credit
|
|
|
115,000 |
|
|
-8.0 |
%
|
|
True-up and Other
|
|
|
1,000 |
|
|
-0.1 |
%
|
|
Sale of Transferable Credit
|
|
|
(131,000 |
)
|
|
9.1 |
%
|
|
Income tax expense
|
|
$
|
(131,000 |
)
|
|
9.1 |
%
|
As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU No. 2023-09, the following is a reconciliation of our income tax rate computed using the federal statutory rate to our actual income tax rate.
|
|
|
Year Ended December 31, 2024
|
|
U.S. statutory income tax rate
|
|
21.00 |
%
|
|
State taxes, net of federal benefit
|
|
0.22 |
%
|
|
Permanent difference, overaccruals,and non-deductible items
|
|
-0.82 |
%
|
|
Change in state rate
|
|
-7.53 |
%
|
|
Deferred tax valuation allowance
|
|
-13.77 |
%
|
|
True-up and Other
|
|
0.90 |
%
|
|
Total
|
|
0.00 |
%
|
|
| Schedule of Components of Net Deferred Tax Assets |
The components of net deferred tax assets at December 31, are set forth below:
|
|
|
December 31, 2025
|
|
December 31, 2024
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
|
|
|
|
Net operation loss
|
|
$
|
4,990,000 |
|
|
$
|
4,871,000 |
|
|
Allowance for doubtful accounts
|
|
|
158,000 |
|
|
|
140,000 |
|
|
Inventory – IRC 263A adjustment
|
|
|
356,000 |
|
|
|
296,000 |
|
|
Stock based compensation – options and restricted stock
|
|
|
425,000 |
|
|
|
218,000 |
|
|
Capitalized engineering costs
|
|
|
75,000 |
|
|
|
134,000 |
|
|
Amortization – NTW Transaction
|
|
|
107,000 |
|
|
|
178,000 |
|
|
Inventory reserve
|
|
|
470,000 |
|
|
|
644,000 |
|
|
Deferred gain on sale of real estate
|
|
|
5,000 |
|
|
|
14,000 |
|
|
Accrued Expenses
|
|
|
54,000 |
|
|
|
113,000 |
|
|
Disallowed interest
|
|
|
2,480,000 |
|
|
|
2,269,000 |
|
|
Operating lease liabilities
|
|
|
153,000 |
|
|
|
339,000 |
|
|
Charitable Contributions
|
|
|
2,000 |
|
|
|
—
|
|
|
Total deferred tax asset before valuation allowance
|
|
|
9,275,000 |
|
|
|
9,216,000 |
|
|
Valuation allowance
|
|
|
(8,306,000 |
)
|
|
|
(8,091,000 |
)
|
|
Total deferred tax asset after valuation allowance
|
|
|
969,000 |
|
|
|
1,125,000 |
|
|
Right of Use Asset
|
|
|
(112,000 |
)
|
|
|
(255,000 |
)
|
|
Property and equipment
|
|
|
(857,000 |
)
|
|
|
(870,000 |
)
|
|
Total deferred tax liabilities
|
|
|
(969,000 |
)
|
|
|
(1,125,000 |
)
|
| |
|
|
|
|
|
|
|
|
|
Net deferred tax asset
|
|
$
|
—
|
|
|
$
|
—
|
|
|