TAXES |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| TAXES | |||
| TAXES |
The Company estimates an annual effective tax rate of (0.08)% for the year ending December 31, 2026 as the Company incurred losses for the three and six months ended June 30, 2026 and expects to continue to incur losses through the remainder of the fiscal year ending December 31, 2026, resulting in an estimated net loss for both financial statement and tax purposes for the year ending December 31, 2026. Therefore, no federal or state income taxes are expected outside of state minimum tax payments. The effective rate during this period includes income tax benefits and exclusions associated with convertible debt interest and changes in valuation allowances related to future deductible temporary differences. Due to the Company’s history of losses since inception, there is not enough evidence at this time to support that the Company will generate future income of a sufficient amount and nature to utilize the benefits of its net deferred tax assets. Accordingly, the deferred tax assets have been reduced by a full valuation allowance, since the Company does not currently believe that realization of its deferred tax assets is more likely than not. As of June 30, 2026, the Company has no uncertain tax positions that require the establishment of a reserve. |