Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
|
| Schedule of Domestic and Foreign Components of Loss Before Income Taxes |
The following table presents the domestic and
foreign components of loss before income taxes:
Schedule of Domestic and Foreign Components of Loss Before Income Taxes
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Domestic | |
| (42,103,363 | ) | |
| (12,197,568 | ) |
| Foreign | |
| - | | |
| - | |
|
| Schedule of Income Tax Provision (Benefit) |
The income tax provision (benefit) consists of the following amounts:
Schedule
of Income Tax Provision (Benefit)
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Current tax provision (benefit) | |
| | | |
| | |
| Federal | |
| - | | |
| - | |
| State and local | |
| - | | |
| - | |
| Total current tax provision (benefit) | |
| - | | |
| - | |
| Deferred tax provision (benefit) | |
| | | |
| | |
| Federal | |
| (4,622,176 | ) | |
| | |
| State and local | |
| (1,564,937 | ) | |
| - | |
| Total deferred tax provision (benefit) | |
| (6,187,113 | ) | |
| - | |
| Net tax provision (benefit) | |
$ | (6,187,113 | ) | |
$ | - | |
|
| Schedule of Effective Income Tax Reconciliation |
A reconciliation of the income tax provision (benefit)
to the amount computed by applying the 21% statutory US Federal Income tax rate to loss before income taxes after adoption of ASU 2023-09
is as follows:
Schedule
of Effective Income Tax Reconciliation
| | |
For the years ended December 31, 2025 | |
| Income tax benefit at the federal statutory rate | |
$ | (8,841,706 | ) | |
| 21.0 | % |
| Permanent differences and other | |
| 839,473 | | |
| (2.0 | )% |
| State income taxes | |
| (1,564,937 | ) | |
| 3.7 | % |
| Research and development credit limitation | |
| 381,702 | | |
| (0.9 | )% |
| Net operating loss carryforward limitation | |
| 6,523,237 | | |
| (15.5 | )% |
| Other | |
| 389,084 | | |
| (0.9 | )% |
| Change in valuation allowance | |
| (3,913,966 | ) | |
| 9.3 | % |
| Effective income tax expense | |
$ | (6,187,113 | ) | |
$ | 14.7 | % |
A reconciliation of the income tax provision (benefit) to the amount computed
by applying the 21% statutory US Federal Income tax rate to loss before income taxes for years prior to adoption of ASU 2023-09 is as
follows:
| | |
For the year
ended
December 31, 2024 | |
| Income tax benefit at the federal statutory rate | |
| 21.0 | % |
| Permanent differences and other | |
| (0.2 | )% |
| State income taxes | |
| 7.0 | % |
| Research and development credit | |
| 1.1 | % |
| Change in valuation allowance | |
| (28.9 | )% |
| Effective income tax expense | |
$ | 0.0 | % |
|
| Schedule of Significant Components of Company’s Deferred Tax Assets |
The significant components of the Company’s
deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:
Schedule of Significant Components of Company’s Deferred Tax Assets
| |
2025 | | |
2024 | |
| | |
December 31, | |
| |
2025 | | |
2024 | |
| Deferred tax asset (liabilities) related to: | |
| | |
| |
| Federal net operating loss carryforward | |
$ | 1,266,245 | | |
$ | 4,264,000 | |
| State net operating loss carryforward | |
| 428,714 | | |
| 1,444,000 | |
| Capitalized costs | |
| 1,613,924 | | |
| 1,957,000 | |
| Acquired in-process research and development | |
| 1,341,733 | | |
| 1,027,000 | |
| Research and development credit | |
| - | | |
| 382,000 | |
| Stock compensation | |
| 403,744 | | |
| 904,000 | |
| Accrued expenses and other | |
| 24,602 | | |
| 211,000 | |
| Digital assets | |
| (117,934,191 | ) | |
| - | |
| Total deferred tax assets (liabilities) | |
| (112,855,228 | ) | |
| 10,189,000 | |
| Valuation allowance | |
| (5,078,963 | ) | |
| (10,189,000 | ) |
| Deferred tax assets (liabilities), net of valuation allowance | |
$ | (117,934,191 | ) | |
$ | - | |
|