v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12 Income Taxes

 

The components of our income (loss) before income taxes were as follows:

 

   For the six months ended 
   June 30,
2026		   June 30,
2025		 
United States  $(1,744,394)  $(6,554,734)
Total  $(1,744,394)  $(6,554,734)
   For the three months ended 
   June 30,
2026		   June 30,
2025		 
United States  $832,130   $(2,608,799)
Total  $832,130   $(2,608,799)

 

The components of income tax expense (benefit) were as follows: 

 

   For the six months ended 
   June 30,
2026		   June 30,
2025		 
Continuing operations  $5,260   $15,233 
Discontinued operations   3,335    2,756 
Total  $8,595   $17,989 

 

   For the three months ended 
   June 30,
2026		   June 30,
2025		 
Continuing operations  $(17,899)  $1,728 
Discontinued operations   2,756    2,756 
Total  $(15,143)  $4,484 

 

The Company evaluates and updates the estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. Consequently, based upon the mix and timing of the Company’s actual earnings compared to annual projections, the effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. The quarterly income tax provision is generally comprised of tax expense on income or benefit on loss at the most recent estimated annual effective tax rate. The tax effect of discrete items is recognized in the period in which they occur at the applicable statutory rate.

 

For the six-month periods ended June 30, 2026, and June 30, 2025, the Company recorded income tax expense of $5,260 and $15,233 for continuing operations, respectively, and income tax expense of $3,335 and $2,756 from discontinued operations, respectively. The effective tax rate of (0.49) % and (0.27) % applied to income for six months ended June 30, 2026, and June 30, 2025, respectively varied from the statutory United States federal income tax rate of 21.0% primarily due to the effect of state income taxes, net of the federal benefit, and adjustments for meals, entertainment and penalties, changes in fair value of financial instruments, stock compensation expenses and changes to valuation allowance.

 

For the three-month periods ended June 30, 2026, and June 30, 2025, the Company recorded income tax benefit of $(17,899) and income tax expense of $1,728 for continuing operations, respectively, and income tax expense of $2,756 and $2,756 from discontinued operations, respectively. The effective tax rate of (1.82) % and (0.17) % applied to income for three months ended June 30, 2026 and June 30, 2025, respectively varied from the statutory United States federal income tax rate of 21.0% primarily due to the effect of state income taxes, net of the federal benefit, and adjustments for meals, entertainment and penalties, changes in fair value of financial instruments, stock compensation expenses and changes to valuation allowance.

 

The Company does not have any uncertain income tax positions as of June 30, 2026, and December 31, 2025.