v3.26.1
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Schedule of Provision for Income Taxes

The Company’s provision for income taxes for the three and six months ended June 30, 2026 consists of the following:

 

    Three
Months
Ended
June 30,
2026
    Three
Months
Ended
June 30,
2025
    Six Months
Ended
June 30,
2026
    Six Months
Ended
June 30,
2025
 
Current taxes:                        
Federal   $ 562,427     $        -     $ 562,427     $        -  
State     220,954       -       220,954       -  
Total current taxes     783,381       -       783,381       -  
Deferred taxes:                                
Federal     (2,360,782 )     -       (2,360,782 )     -  
State     (927,450 )     -       (927,450 )     -  
Total deferred taxes     (3,288,232 )     -       (3,288,232 )     -  
Total income tax provision (benefit)   $ (2,504,851 )   $ -     $ (2,504,851 )   $ -  
Schedule of Deferred Tax Assets

Deferred tax assets and liabilities as of June 30, 2026 and December 31, 2025 consist of the following:

 

    June 30,
2026
    December 31,
2025
 
Deferred tax assets:            
Net operating loss carryforwards   $ 2,560,350     $ 5,693,874  
Employee compensation and benefits     297,698       166,773  
Operating lease liabilities     230,991       2,770  
Stock-based compensation     600,284       596,136  
Gross deferred tax assets     3,689,323       6,459,553  
Valuation allowance     -       (6,456,783 )
Total deferred tax assets, net of valuation allowance     3,689,323       2,770  
Deferred tax liabilities:                
Book basis of operation lease ROU assets in excess of tax basis     (230,992 )     (2,770 )
Book basis of property and equipment in excess of tax basis     (93,851 )     -  
Other     (403 )     -  
Total deferred tax liabilities     (325,246 )     (2,770 )
Net deferred tax asset   $ 3,364,077     $ -  
Schedule of Income Tax Rate

The Company’s effective tax rate for the six months ended June 30, 2026 and 2025 differs from the U.S. federal statutory rate as follows:

 

    Six Months
Ended
June 30,
2026
    Six Months
Ended
June 30,
2025
 
U.S. federal statutory tax rate     21.0 %     21.0 %
State income taxes, net of federal benefit     6.5 %     6.5 %
Transaction costs     0.1 %     0.0 %
Permanent differences     0.0 %     0.0 %
Utilization of reserved NOLs     -23.3 %     0.0 %
Change in valuation allowance     -24.7 %     -29.3 %
Other     1.8 %     1.8 %
Effective tax rate     -18.6 %     0.0 %

 

 

    Six Months
Ended
June 30,
2026
    Six Months
Ended
June 30,
2025
 
Pre-tax book income (loss)   $ 13,431,517     $ (789,596 )
Tax provision (benefit)     (2,504,851 )     -  
Effective rate     -18.6 %     0.0 %