v3.26.1
INCOME TAXES (TO BE UPDATED BY DAVE BEHANNA) (Tables)
6 Months Ended
Jun. 30, 2026
INCOME TAXES  
Schedule of deferred tax assets

 

 

2026

 

 

2025

 

Bad debt

 

$26,000

 

 

$12,000

 

Amortization of ROU lease

 

 

-

 

 

 

36,000

 

Amortization of debt discount

 

 

433,000

 

 

 

433,000

 

Share based payments

 

 

1,295,000

 

 

 

1,295,000

 

Impairment expense

 

 

584,000

 

 

 

584,000

 

Change in the fair value of derivative liability

 

 

40,000

 

 

 

61,000

 

Net operating loss carryforward

 

 

306,000

 

 

 

1,964,000

 

Other

 

 

18,000

 

 

 

12,000

 

Total deferred tax assets

 

 

4,702,000

 

 

 

4,397,000

 

Less valuation allowance

 

 

(4,702,000)

 

 

(4,397,000)

Net deferred tax asset recorded

 

$-

 

 

$-

 

Summary of income tax expense

 

 

2026

 

 

2025

 

Current

 

$-

 

 

$-

 

Deferred

 

 

(342,000

 

 

(99,000)

Total income tax provision (benefit)

 

 

(342,000

 

 

(99,000)

Less valuation allowance

 

 

342,000

 

 

99,000

 

Income tax provision (benefit)

 

$-

 

 

$-

 

Summary of reconciliation of the provision for income taxes

 

 

2026

 

 

2025

 

Federal income tax benefit - 21.4%

 

$(234,000

 

 

(68,000)

State income tax benefit - 9.9%

 

 

(108,000

 

 

(31,000)

Subtotal

 

 

(342,000

 

 

(99,000)

Change in valuation allowance

 

 

342,000

 

 

99,000

 

Income tax provision (benefit)

 

$-

 

 

$-