v3.26.1
INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX EXPENSE AND EFFECTIVE TAX RATES

The Company’s income tax expense and effective tax rates for the six and three months ended June 30, 2026 and 2025 were as follows:

 

             
   Six Months Ended June 30,   Three Months Ended June 30, 
   2026   2025   2026   2025 
Income (loss) before income taxes  $(140,816)   2,546,285   $(85,795)  $2,753,501 
Income tax expense   -    -    -    - 
Effective tax rate   0.00%   0.00%   0.00%   0.00%
SCHEDULE OF INCOME BEFORE INCOME TAXES

The Company’s income tax provision differs from the expense that would result from applying statutory rates to income (loss) before taxes. A reconciliation of the provision (benefit) for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows (unaudited):

 

      Tax Rate      Tax Rate 
   Six Months Ended June 30, 
   2026   2025 
   Amount   Tax Rate   Amount   Tax Rate 
Computed tax at the federal statutory rate of 21%  $(29,571)   21.00%  $534,720    21.00%
Increase (decrease) in income tax rate resulting from:                    
Nondeductible/nontaxable items                    
Interest- related party, note discount and limitation   21,195    (15.05)%   34,432    1.35%
Other   

(14,482

)   10.28%   (108,295)   (4.25)%
State income taxes, net of federal income tax benefit   (6,125)   4.35%   110,763    4.35%
Permanent difference - relief of indebtedness income   -   0.00%   (356,375)   (14.00)%
Change in federal valuation allowance   28,983    (20.58)%   (215,245)   (8.45)%
Total provision for income tax  $-    0.00%  $-    0.00%

 

      Tax Rate      Tax Rate 
   Three Months Ended June 30, 
   2026   2025 
   Amount   Tax Rate   Amount   Tax Rate 
Computed tax at the federal statutory rate of 21%  $(18,017)   21.00%  $578,235    21.00%
Increase (decrease) in income tax rate resulting from:                    
Nondeductible/nontaxable items                    
Interest- related party, note discount and limitation   10,681    (12.45)%   10,777    0.39%
Other   (14,483)   16.88%   (84,640)   (3.07)%
State income taxes, net of federal income tax benefit   (3,733)   4.35%   119,777    4.35%
Permanent difference - relief of indebtedness income   -    0.00%   (356,375)   (12.94)%
Change in federal valuation allowance   25,552    (29.78)%   (267,774)   (9.72)%
Total provision for income tax  $-    0.00%  $-    0.00%