v3.26.3
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company’s Effective Tax Rate The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2025 and 2024, were as follows:

 

   2025     2024  
Expected income tax benefit at the U.S. federal statutory tax rate   $ (81,826 )     21.00 %   $ 6,409,528       21.00 %
State and local taxes, net of federal benefit (1)     (263,804 )     67.70 %     1,321,662       4.33 %
Changes in valuation allowance     5,845,289       (1,500.15 )%     (9,662,685 )     (31.65 )%
Nontaxable or Nondeductible Items                                
Equity Compensation     644,474       (165.40 )%     562,345       1.84 %
Transaction costs     197,291       (50.63 )%     -       0.00 %
Nondeductible Contribution     35,315       (9.06 )%     -       -  
Other nontaxable or nondeductible Items     688       (0.18 )%     282,991       0.93 %
Changes in unrecognized tax benefits     (186,161 )     47.78 %     589,314       1.93 %
Effective tax rate   $ 6,191,266       (1,588.95 )%   $ (496,845 )     (1.62 )%

 

(1) During the year ended December 31, 2025, state taxes in Florida made up the majority (greater than 50%) of the tax effect in this category
Schedule of Tax Expenses by Jurisdiction

The following table presents tax expenses by jurisdiction for the years ended December 31, 2025 and 2024:

 

    2025     2024  
Current            
U.S. Federal   $ 2,678,244     $ 2,409,796  
U.S. State     (481,841 )     1,088,249  
Total current expense   $ 2,196,403     $ 3,498,045  
                 
Deferred                
U.S. Federal   $ 3,831,640     $ (3,310,028 )
U.S. State     163,224       (684,861 )
Total deferred provision (benefit)     3,994,864       (3,994,890 )
Change in valuation allowance     -       -  
Total provision for income tax expense (benefit), net   $ 6,191,266     $ (496,845 )
Schedule of Net Cash Paid for Income Taxes

Net cash paid for income taxes consisted of the following for the year ended December 31, 2025:

 

    2025     2024  
Federal taxes paid   $ 5,300,000     $     -  
State and city taxes paid:             -  
Florida     1,175,000       -  
Georgia     25,000       -  
Total state and city taxes paid     1,200,000       -  
Total income taxes paid   $ 6,500,000     $ -  
Schedule of Deferred Tax Assets and Liabilities

The table below presents the effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2025 and 2024:

 

    2025     2024  
Deferred tax assets:            
Net operating loss carryforward   $ -     $ -  
Accrued payroll taxes     48,034       52,797  
Stock-based compensation     3,745,791       3,535,310  
Research and development credits     -       -  
Capitalized research and development expenses     -       348,592  
Allowance for doubtful accounts     2,080,670       56,561  
Nondeductible charitable contributions     -       -  
Inventory reserve     49,225       36,989  
Lease liability     36,495       65,807  
Intangible assets     54,165       73,102  
Gross deferred tax assts     6,014,382       4,169,158  
Less valuation allowance     (5,845,289 )     -  
Total deferred tax assets     169,093       4,169,158  
                 
Deferred tax liabilities:                
Fixed assets   $ (147,557 )   $ (112,763 )
ROU asset     (21,536 )     (61,505 )
Total deferred tax liabilities     (169,093 )     (174,268 )
Net deferred tax assets   $ -     $ 3,994,890  
Schedule of Gross Unrecognized Tax Benefits For the years ended December 31, 2025 and 2024, gross unrecognized tax benefits was $343,780 and $513,00, respectively.

 

    2025     2024  
Gross unrecognized tax benefits, beginning of period   $ 513,000     $ -  
Additions based on tax positions related to the current year     3,780       513,000  
Reductions based on lapse of statute of limitations     (173,000 )     -  
Gross unrecognized tax benefits, end of period   $ 343,780     $ 513,000