v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
INCOME TAXES

7. INCOME TAXES

 

Since the Company has not generated operating profits during the reporting periods, there is no income tax expenses or benefits recognized for the three months or six months ended June 30, 2026 and 2025, respectively.

 

The income tax expense applicable to income before income taxes consists of the following:

 

    Three Months Ended
June 30,
(Unaudited)		 
    2026    2025 
Current income taxes:          
Federal   
      -
    
-
 
State   
-
    
-
 
Foreign   
-
    
-
 
Total Current   
-
    
-
 
Deferred income taxes:          
Federal   
-
    
-
 
State   
-
    
-
 
Foreign   
-
    
-
 
Total deferred   
-
    
-
 
Income tax expenses   
-
    
-
 

 

   Six Months Ended
June 30,
(Unaudited)		 
    2026    2025 
Current income taxes:          
Federal   
-
    
-
 
State   
-
    
-
 
Foreign   
-
    
-
 
Total Current   
-
    
-
 
Deferred income taxes:          
Federal   
-
    
-
 
State   
-
    
-
 
Foreign   
-
    
-
 
Total deferred   
-
    
-
 
Income tax expenses   
-
    
-
 

 

Loss before income tax consists of the following:

 

   Three Months Ended
June 30,
(Unaudited)		 
   2026   2025 
U.S.   (268,417)   (145,444)
Loss before income tax  $(268,417)  $(145,444)

 

   Six Months Ended
June 30,
(Unaudited)		 
   2026   2025 
U.S.   (476,143)   (298,430)
Loss before income tax  $(476,143)  $(298,430)

The income tax expense (benefit) differs from the amount computed by applying the US federal statutory rate of 21.0% to income before income taxes for three months and six months ended June 30, 2026 and 2025, respectively, as follows:

 

   Three Months Ended
June 30, 2026		   Three Months Ended
June 30, 2025		 
US Federal Statutory Tax Rate  $(56,367)   21.0%  $(30,543)  $21.0%
State and Local Income Taxes, net of Federal Income Tax Effect   (23,728)   8.8%   (12,738)   8.8%
Foreign tax effects                    
Effect of Cross-border tax laws   
-
    -%   
-
    -%
Tax credits   
-
    -%   
-
    -%
Nontaxable or non-deductible items                    
Change in valuation allowances   80,095    (29.8)%   43,281    (29.8)%
Others (1)   
-
    -%   
-
    -%
Income tax expenses   
-
    -%   
-
    -%

 

   Six Months Ended
June 30, 2026		   Six Months Ended
June 30, 2025		 
US Federal Statutory Tax Rate  $(99,990)   21.0%  $(62,670)  $21.0%
State and Local Income Taxes, net of Federal Income Tax Effect   (42,091)   8.8%   (26,262)   8.8%
Foreign tax effects                    
Effect of Cross-border tax laws   
-
    
-
%   
-
    
-
%
Tax credits   
-
    
-
%   
-
    
-
%
Nontaxable or non-deductible items                    
Change in valuation allowances   142,081    (29.8)%   88,932    (29.8)%
Others (1)   
-
    
-
%   
-
    
-
%
Income tax expenses   
-
    
-
%   
-
    
-
%

 

(1) includes the tax effects of enactment of new tax laws and change in unrecognized tax benefits.

 

The amount of cash paid for income taxes (net of refunds) for the three months and six months ended June 30, 2026 and 2025 is as follows:

 

    Three Months Ended
June 30,
(Unaudited)		 
    2026    2025 
Federal   
-
    
-
 
State   
-
    
-
 
Total Current   
-
    
-
 

 

   Six Months Ended
June 30,
(Unaudited)		 
    2026    2025 
Federal   
-
    
-
 
State   
-
    
-
 
Total Current   
-
    
-
 

Deferred tax assets (liability) as of June 30, 2026 and December 31, 2025 consist approximately of:

 

   June 30,
2026		   December 31, 
   (Unaudited)   2025 
Net operating loss carryforwards  $1,645,947   $1,503,866 
Operating lease liabilities   336,101    363,180 
Operating lease assets   (331,972)   (362,125)
Deferred tax assets, Gross   1,650,076    1,504,921 
Valuation allowance   (1,650,076)   (1,504,921)
Deferred tax assets, net  $
-
   $
-
 

 

A reconciliation of gross unrecognized tax benefits is as follows:

 

The Company had no unrecognized tax benefits or related interest or penalties accrued as of June 30, 2026 or December 31, 2025. The Company’s accounting policy is to recognize any interest and penalties related to uncertain tax positions as components of income tax expense.