v3.26.1
Note 14 - Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
  

December 31, 2025

  

December 31, 2024

 

Current taxes:

        

Federal

 $12,821,098  $13,195,875 

State

  900,114   1,014,207 

Foreign

  -   - 

Current tax expense (benefit)

  13,721,212   14,210,082 
         

Deferred taxes:

        

Federal

  (1,766,025)  (1,578,197)

State

  (311,475)  (441,642)

Foreign

  -   - 

Deferred tax expense (benefit)

  (2,077,500)  (2,019,839)
         

Income tax expense (benefit)

 $11,643,712  $12,190,243 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
  

December 31, 2025

  

December 31, 2024

 

Income (loss) before income taxes

 $(52,279,983) $(35,606,613)

Statutory income tax rate

  21%  21%

Income tax expense (benefit) at statutory rate

  (10,978,796)  (7,477,389)
         

State income taxes

  588,639   1,853,657 

UTP Related to 208E

  18,576,098   12,273,276 

Nondeductible penalties

  -   489,813 

Other permanent differences

  173,102   - 

Book Impairment

  -   3,175,774 

Change in valuation allowance

  1,570,242   847,315 

Change in state rate

  17,005   4,561 

Prior period adjustments

  1,458,561   200,817 

2023 UTP related to Holdco

  -   188,550 

UTP Penalties & Interests

  2,548,718   545,937 

Other adjustments

  (2,309,857)  87,931 

Income tax expense (benefit)

 $11,643,712  $12,190,243 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
  

December 31, 2025

  

December 31, 2024

 

Deferred tax assets:

        

Loss carryforwards

 $15,654,624  $15,885,208 

Share based compensation

  2,102,227   1,611,565 

Charitable Contribution

  515   515 

Loyalty points

  48,573   513,959 

Capital loss carry forward

  11,109,075   11,109,075 

Lease liabilities

  4,740,770   4,913,815 

Inventory Reserve

  719,809   49,463 

COGS related Impairment

  1,177,959   370,419 

Gross deferred tax assets

  35,553,552   34,454,019 
         

Valuation allowance

  (30,043,884)  (28,473,642)

Net deferred tax assets

  5,509,668   5,980,377 
         

Deferred Tax Liabilities:

        

Other Licenses

  1,219,063   2,242,272 

Right-of-use assets

  2,951,308   4,452,567 

Property and equipment

  47,479   71,220 

Net deferred tax liabilities

  4,217,850   6,766,059 
         
         

Total net deferred tax assets (liabilities)

 $1,291,818  $(785,682)
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending amount of uncertain tax liabilities is as follow:

         
   

2025

  

2024

 
 

Balance at Beginning of Year

  19,321,475   - 
 

Additions based on tax position related to the current year 280E position

  11,594,492   13,800,944 
 

Additions based on tax position related to the prior year

  2,125,435   5,520,531 
 

Balance at End of Year

  33,041,402   19,321,475 
          

A reconciliation of the beginning and ending amount of uncertain tax benefits is as follow:

         
   

2025

  

2024

 
 

Balance at Beginning of Year

  41,877,402   - 
 

Increase related to tax position in a prior period

  -   27,530,520 
 

Increase relted to tax positions in the current period

  11,594,492   13,800,944 
 

Interest and penalties in income tax expense

  2,125,435   545,937 
 

Balance at End of Year

  55,597,329   41,877,402