Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Loss From Continuing Operations Before Income Taxes
The components of loss from continuing operations before income taxes were as follows:
Year Ended December 31,
2025 2024
Domestic operations $ (40,506,558) $(133,802,575)
Foreign operations (321,844) (1,104,074)
Loss before income taxes $ (40,828,402) $ (134,906,649)
Schedule of Income Tax Expense
The income tax expense consisted of the following:
Year Ended December 31,
2025 2024
Current income taxes:
Federal $ -  $ - 
State and local -  - 
Total current tax -  - 
   
Deferred income taxes:    
Federal -  - 
State and local -  - 
Total deferred tax -  - 
Income tax expense $ -  $ - 
Schedule of Reconciliation of Effective Tax Rates
A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows, in accordance with the updated requirements of ASU 2023-09 for the year ended December 31, 2025:
2025 2024
$ % $ %
Loss before income taxes (40,828,402) (134,906,649)
 Income taxes at U.S. federal statutory income tax rate (8,573,964) 21.0  % (28,330,397) 21.0  %
 State and local income taxes, net -  -  % -  -  %
 Foreign tax effects -  -  %
 Other foreign jurisdictions 67,587  (0.2) % -  -  %
 Change in valuation allowance 5,317,285  (13.0) % 9,141,378  (6.8) %
 Nontaxable or nondeductible items
 Debt Extinguishment 1,338,114  (3.3) % 19,393,825  (14.4) %
 Stock Based Compensation -  -  %
 Other 484,272  (1.2) % (137,868) 0.1  %
 Other Adjustments
Change in UTP 1,468,795  (3.6) % -  -  %
 Other (102,089) 0.3  % (66,938) -  %
 Total tax provision and effective tax rate -  -  % -  -  %
As previously disclosed for the years ended December 31, 2024, and December 31, 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:
Year Ended December 31, Year Ended December 31,
2024 2023
Loss before income taxes $ (134,906,649) $ (50,686,601)
Tax at Federal Statutory Rate (28,330,397) (10,644,186)
Debt extinguishment
19,393,825  - 
Nondeductible (add back) expenses (137,868) 1,251,583 
Federal return to accrual (66,938) (13,141)
Change in valuation allowance 9,141,378  8,895,230 
Deferred tax adjustment -  510,514 
Income tax expense $ -  $ - 
Schedule of Deferred Tax Assets and Liabilities Significant components of the deferred tax assets and liabilities are as follows:
Year Ended December 31,
2025 2024
Deferred tax assets:
Fixed assets $ 3,193,550  $ 3,709,975 
Stock compensation 174,888  192,483 
Warrant liability gain/loss 2,369  38,202 
Net operating losses 33,063,184  25,424,520 
Business credit carryforward -  1,441,159 
Capitalized R&D expenses 306,914  467,113 
Accrued expenses 352,206  496,060 
Other assets 13,621  266,367 
ROU Liability $ 133,927  $ - 
Subtotal 37,240,659  32,035,879 
Valuation allowance (37,123,268) (31,805,983)
Total deferred tax assets 117,391  229,896 
   
Deferred tax liabilities:    
Other liabilities (117,391) (229,896)
Total deferred tax liabilities (117,391) (229,896)
   
Net deferred tax assets/(liabilities) $ -  $ - 
Schedule of Unrecognized Tax Positions A reconciliation of the beginning and ending amount of uncertain tax positions is as follows:
2025 Activity Amounts
Balance at January 1, 2025 - 
Additional based on tax positions related to prior years $ 1,441,159 
Settlements $ - 
Balance at December 31, 2025 $ 1,441,159