v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
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

%

(a)      For the year ended December 31, 2025, state taxes in California and New York made up the majority (greater than 50% of the tax effect).

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

 

$

 

 

$