| 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 | ) | | $ | - | |
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| Schedule of Deferred Tax Assets and Liabilities |
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 | | | $ | - | |
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Significant components of the Company’s deferred tax assets as of December 31, 2025 and 2024 are summarized below. | | | December 31,
2025 | | | December 31,
2024 | | | Net operating loss carryforwards | | $ | 5,693,874 | | | $ | 5,303,813 | | | | | | 5,693,874 | | | | 5,303,813 | | | Valuation allowance | | | (5,693,874 | ) | | | (5,303,813 | ) | | Net deferred tax assets | | $ | — | | | $ | — | |
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| Schedule of Effective 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 | % |
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The reconciliation below presents the difference between the income tax rate computed by applying the U.S. federal statutory rate and the effective tax rate for the years ended December 31, 2025 and 2024. | | | December 31,
2025 | | | December 31,
2024 | | | U. S. federal statutory tax rate | | | (21.0 | )% | | | (21.0 | )% | | State statutory tax rate | | | (8.25 | )% | | | (8.25 | )% | | Change in valuation allowance | | | 29.25 | % | | | 29.25 | % | | Effective tax rate | | | 0.0 | % | | | 0.0 | % |
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