Income Taxes (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
| Income Taxes [Abstract] |
|
| Schedule of (Loss) Income Before Income Taxes |
(Loss) income before income taxes consists of the following:
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
| | |
| | |
| | |
| |
| Federal | |
$ | (3,321,074 | ) | |
| 833,268 | | |
$ | (5,389,424 | ) | |
| 1,517,691 | |
| Foreign | |
| — | | |
| — | | |
| — | | |
| — | |
| (Loss) income before income taxes | |
$ | (3,321,074 | ) | |
| 833,268 | | |
$ | (5,389,424 | ) | |
| 1,517,691 | |
|
| Schedule of Income Tax Provision |
The Company’s income tax provision consists of the following
for the three and six months ended June 30, 2026 and 2025:
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Current income tax expense | |
| | |
| | |
| | |
| |
| Federal | |
$ | — | | |
$ | 193,516 | | |
$ | — | | |
$ | 370,659 | |
| State | |
| 3,751 | | |
| 41,195 | | |
| 8,154 | | |
| 84,356 | |
| Total current income tax expense | |
$ | 3,751 | | |
$ | 234,711 | | |
$ | 8,154 | | |
$ | 455,015 | |
| | |
| | | |
| | | |
| | | |
| | |
| Deferred income tax benefit | |
| | | |
| | | |
| | | |
| | |
| Federal | |
| (796,224 | ) | |
| (25,402 | ) | |
| (1,139,405 | ) | |
| (64,637 | ) |
| State | |
| (17,415 | ) | |
| (6,672 | ) | |
| (158,706 | ) | |
| (1,910 | ) |
| Total deferred income tax benefit | |
$ | (813,639 | ) | |
$ | (32,074 | ) | |
$ | (1,298,111 | ) | |
$ | (66,547 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Total income tax provision | |
$ | (809,888 | ) | |
$ | 202,637 | | |
$ | (1,289,957 | ) | |
$ | 388,468 | |
|
| Schedule of Reconciliation of Income Taxes |
The following table presents the reconciliation of income taxes computed at the U.S. federal statutory
tax rate to income tax provision for the three and six months ended June 30, 2026 after the adoption of ASU 2023-09:
| | |
Three Months Ended June 30, 2026 | | |
Six Months Ended June 30, 2026 | |
| | |
Amount | | |
Rate | | |
Amount | | |
Rate | |
| Statutory federal income tax rate | |
| (697,391 | ) | |
| 21.0 | % | |
| (1,131,745 | ) | |
| 21.0 | % |
| State taxes (net of federal benefit) | |
| (105,171 | ) | |
| 3.2 | | |
| (167,663 | ) | |
| 3.1 | |
| Permanent difference | |
| (9,900 | ) | |
| 0.3 | | |
| (5,948 | ) | |
| 0.1 | |
| Other | |
| 2,574 | | |
| (0.1 | ) | |
| 15,399 | | |
| (0.3 | ) |
| Effective tax rate | |
| (809,888 | ) | |
| 24.4 | % | |
| (1,289,957 | ) | |
| 23.9 | % |
The following table presents the reconciliation of income taxes computed
at the U.S. federal statutory tax rate to income tax provision for the three and six months ended June 30, 2025 prior to the adoption
of ASU 2023-09:
| | |
Three Months
Ended June 30,
2025 | | |
Six Months
Ended June 30,
2025 | |
| Statutory federal income tax rate | |
| 21.0 | % | |
| 21.0 | % |
| State taxes (net of federal benefit) | |
| 3.1 | | |
| 4.3 | |
| Permanent difference | |
| 0.2 | | |
| 0.3 | |
| Effective tax rate | |
| 24.3 | % | |
| 25.6 | % |
|
| Schedule of Net Deferred Tax Assets and Liabilities |
The Company’s net deferred tax assets and liabilities consisted
of the following as of June 30, 2026 and December 31, 2025:
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| Deferred tax assets: | |
| | |
| |
| Net Operating Loss | |
| 1,612,058 | | |
| 388,182 | |
| Stock-based compensation | |
| 80,333 | | |
| 53,586 | |
| Bad debt allowance | |
| 263,634 | | |
| 91,828 | |
| Accrued liability | |
| 8,065 | | |
| 8,140 | |
| Gross deferred tax assets | |
$ | 1,964,090 | | |
$ | 541,736 | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| Research & Development credits | |
| (1,423,623 | ) | |
| (1,299,380 | ) |
| Right of use assets/Lease Liability | |
| (31 | ) | |
| (31 | ) |
| Total Deferred Tax Liabilities | |
$ | (1,423,654 | ) | |
$ | (1,299,411 | ) |
| | |
| | | |
| | |
| Net deferred tax assets (liabilities): | |
$ | 540,436 | | |
$ | (757,675 | ) |
|
| Schedule of Cash Income Taxes |
The amounts of cash income taxes paid by the Company were as follows:
| | |
Six Months
Ended June 30,
2026 | |
| Federal | |
| — | |
| State | |
| 10,035 | |
| Foreign | |
| — | |
| Total | |
$ | 10,035 | |
|