| Schedule of Company’s Loss Before Income Taxes |
The Company’s loss before income taxes includes
the following components:
| |
|
Years Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| United States loss before income taxes |
|
$ |
18,175,072 |
|
|
$ |
7,639,148 |
|
| China loss before income taxes |
|
|
85,904 |
|
|
|
264,246 |
|
| Total loss before income taxes |
|
$ |
18,260,976 |
|
|
$ |
7,903,394 |
|
|
| Schedule of Components of Income Taxes Expense (Benefit) |
Components of income taxes expense (benefit) consisted
of the following:
| |
|
Years Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Current: |
|
|
|
|
|
|
| U.S. federal |
|
$ |
- |
|
|
$ |
- |
|
| U.S. state and local |
|
|
- |
|
|
|
- |
|
| China |
|
|
- |
|
|
|
- |
|
| Total current income taxes expense |
|
$ |
- |
|
|
$ |
- |
|
| Deferred: |
|
|
|
|
|
|
|
|
| U.S. federal |
|
$ |
(3,585,262 |
) |
|
$ |
(4,874 |
) |
| U.S. state and local |
|
|
(1,213,867 |
) |
|
|
(1,650 |
) |
| China |
|
|
77,641 |
|
|
|
93,437 |
|
| Total deferred income taxes (benefit) |
|
$ |
(4,721,488 |
) |
|
$ |
86,913 |
|
| Change in valuation allowance |
|
|
4,721,488 |
|
|
|
(86,913 |
) |
| Total income taxes expense |
|
$ |
- |
|
|
$ |
- |
|
|
| Schedule of U.S. Statutory Rate and the Company’s Effective Tax Rate |
The table below summarizes the differences between
the U.S. statutory rate and the Company’s effective tax rate for the years ended December 31, 2025 and 2024:
| |
|
Years Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| U.S. federal rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
| U.S. state rate |
|
|
7.1 |
% |
|
|
6.4 |
% |
| Permanent difference |
|
|
(4.2 |
)% |
|
|
(1.3 |
)% |
| Non-US rate differential |
|
|
0.0 |
% |
|
|
0.1 |
% |
| True ups |
|
|
1.9 |
% |
|
|
(27.3 |
)% |
| U.S. valuation allowance |
|
|
(25.9 |
)% |
|
|
1.1 |
% |
| Total provision for income taxes |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
| Schedule of Deferred Taxes |
The Company’s components of deferred taxes
as of December 31, 2025 and 2024 were as follows:
| |
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| Deferred tax assets |
|
|
|
|
|
|
| Stock-based compensation |
|
$ |
1,410,079 |
|
|
$ |
1,598,257 |
|
| Disallowed business interest deduction |
|
|
- |
|
|
|
- |
|
| Research and development expense |
|
|
81,638 |
|
|
|
106,783 |
|
| Accrued directors’ compensation |
|
|
102,166 |
|
|
|
104,977 |
|
| Accrued settlement |
|
|
301,047 |
|
|
|
140,904 |
|
| Partnership investment |
|
|
- |
|
|
|
2,167,965 |
|
| Lease liability |
|
|
1,687 |
|
|
|
1,687 |
|
| Capital loss limitation |
|
|
1,846,243 |
|
|
|
149,394 |
|
| Net operating loss carryforward |
|
|
22,942,772 |
|
|
|
17,648,077 |
|
| Total deferred tax assets, gross |
|
|
26,685,632 |
|
|
|
21,918,044 |
|
| Valuation allowance |
|
|
(26,506,126 |
) |
|
|
(21,784,638 |
) |
| Total deferred tax assets, net |
|
$ |
179,506 |
|
|
$ |
133,406 |
|
| Deferred tax liabilities |
|
|
|
|
|
|
|
|
| Fixed assets and intangible assets book/tax basis difference |
|
$ |
(179,506 |
) |
|
$ |
(133,406 |
) |
| Right-of-use assets |
|
|
- |
|
|
|
- |
|
| Total deferred tax liabilities |
|
$ |
(179,506 |
) |
|
$ |
(133,406 |
) |
| Net deferred tax assets |
|
$ |
- |
|
|
$ |
- |
|
|