| Schedule of Effective Income Tax Rate Reconciliation |
For the nine months ended September 30, 2025,
the expected tax expense (benefit) based on the U. S. federal statutory rate is reconciled with the actual tax provision (benefit) as
follows:
| | |
For the Nine Months Ended
September 30, | |
| | |
2025 | |
| Expected tax at statutory rates | |
| | |
| |
| Federal | |
$ | 34,000 | | |
| 21 | % |
| State | |
| (16,000 | ) | |
| (10 | )% |
| Permanent Differences | |
| (1,000 | ) | |
| (1 | )% |
| Temporary difference for derivative gain | |
| (738,000 | ) | |
| (461 | )% |
| Temporary difference for stock compensation | |
| 173,000 | | |
| 108 | % |
| Other | |
| 70,000 | | |
| 44 | % |
| Current Year Change in Valuation Allowance | |
| | | |
| | |
| Federal | |
| 990,000 | | |
| 618 | % |
| State | |
| (512,000 | ) | |
| (320 | )% |
| Income tax expense | |
$ | - | | |
| 0 | % |
|
For the years ended December 31, 2024, and
2023, the expected tax expense (benefit) based on the U. S. federal statutory rate is reconciled with the actual tax provision (benefit)
as follows:
| | |
For the Years Ended
December
31, | |
| | |
2024 | | |
2023 | |
| Expected tax at statutory rates | |
$ | (528,000 | ) | |
| 21 | % | |
$ | (3,463,000 | ) | |
| 21 | % |
| Permanent Differences | |
| (4,000 | ) | |
| 0 | % | |
| 7,000 | | |
| 0 | % |
| State Income Tax, Net of Federal benefit | |
| 1,019,000 | | |
| (62 | )% | |
| (418,000 | ) | |
| 1 | % |
| Other | |
| 1,564,000 | | |
| (41 | )% | |
| (95,000 | ) | |
| 2 | % |
| Current Year Change in Valuation Allowance | |
| (2,051,000 | ) | |
| 82 | % | |
| 3,969,000 | | |
| (24 | )% |
| Prior Year True-Ups | |
| - | | |
| 0 | % | |
| - | | |
| 0 | % |
| Income tax expense | |
$ | - | | |
| 0 | % | |
$ | - | | |
| 0 | % |
|
| Schedule of Deferred Tax Assets and Liabilities |
As of September 30, 2025, and December 31, 2024, significant
components of the Company’s deferred tax assets are as follows:
| | |
As of | |
| | |
September 30,
2025 | | |
December 31,
2024 | |
| Deferred Tax Assets (Liabilities): | |
| | |
| |
| Accrued payroll | |
$ | 141,000 | | |
$ | 141,000 | |
| ASC842-ROU (Liability) | |
| 822,000 | | |
| 822,000 | |
| Loss from derivatives | |
| (203,000 | ) | |
| (869,000 | ) |
| Stock based compensation | |
| (460,000 | ) | |
| (304,000 | ) |
| Depreciation | |
| 3,000 | | |
| 3,000 | |
| Net operating loss | |
| 12,942,000 | | |
| 12,462,000 | |
| Net deferred tax assets (liabilities) | |
| 13,245,000 | | |
| 12,255,000 | |
| Valuation allowance | |
| (13,245,000 | ) | |
| (12,255,000 | ) |
| Net deferred tax assets (liabilities) | |
$ | - | | |
$ | - | |
|
As of December 31, 2024, and 2023, significant components
of the Company’s deferred tax assets are as follows:
| | |
As of | |
| | |
December 31,
2024 | | |
December 31,
2023 | |
| Deferred Tax Assets (Liabilities): | |
| | |
| |
| Accrued payroll | |
$ | 141,000 | | |
$ | 141,000 | |
| ASC842-ROU Asset | |
| - | | |
| - | |
| ASC842-ROU (Liability) | |
| 822,000 | | |
| 822,000 | |
| Loss from derivatives | |
| (869,000 | ) | |
| (16,000 | ) |
| Waiver and commitment fee shares | |
| - | | |
| - | |
| Stock based compensation | |
| (304,000 | ) | |
| (171,000 | ) |
| Depreciation | |
| 3,000 | | |
| 3,000 | |
| Net operating loss | |
| 12,462,000 | | |
| 13,529,000 | |
| Net deferred tax assets (liabilities) | |
| 12,255,000 | | |
| 14,308,000 | |
| Valuation allowance | |
| (12,255,000 | ) | |
| (14,308,000 | ) |
| Net deferred tax assets (liabilities) | |
$ | - | | |
$ | - | |
|