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 | |
|