Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income Tax Expense (Benefit) |
The components of the income tax expense (benefit) for the years ended December 31, 2025, 2024, and 2023 are as follows:
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Year Ended |
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Year Ended |
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Year Ended |
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December 31, 2025 |
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December 31, 2024 |
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December 31, 2023 |
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Current: |
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Federal |
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$ |
— |
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|
$ |
— |
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|
$ |
— |
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State |
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50,120 |
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132,491 |
|
|
|
(304,947 |
) |
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|
50,120 |
|
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|
132,491 |
|
|
|
(304,947 |
) |
Deferred: |
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|
|
|
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|
Federal |
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|
(194,932 |
) |
|
|
(1,109,938 |
) |
|
|
(1,559,177 |
) |
State |
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|
8,146 |
|
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(210,919 |
) |
|
|
(254,558 |
) |
Subtotals |
|
|
(186,786 |
) |
|
|
(1,320,857 |
) |
|
|
(1,813,735 |
) |
Change in deferred tax valuation allowance |
|
|
186,786 |
|
|
|
1,320,857 |
|
|
|
1,813,735 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax expense (benefit) |
|
$ |
50,120 |
|
|
$ |
132,491 |
|
|
$ |
(304,947 |
) |
|
| Reconciliation of U.S. Statutory Federal Income Tax Expense (Benefit) |
A reconciliation of the U.S. statutory federal income tax expense (benefit) to the Company’s provision for income tax is as follows:
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Year Ended |
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|
December 31, 2025 |
Statutory federal income tax expense (benefit) |
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$ |
(1,623,092 |
) |
|
|
21.0 |
|
% |
Nontaxable and nondeductible items |
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|
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Federal tax impact of REIT election |
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|
1,433,531 |
|
|
|
(18.6 |
) |
% |
Federal impact of PPP loan forgiveness |
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|
— |
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|
|
— |
|
% |
State income taxes, net of federal income tax effect (1) |
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|
52,895 |
|
|
|
(0.7 |
) |
% |
Change in valuation allowance |
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|
186,786 |
|
|
|
(2.4 |
) |
% |
Income tax expense (benefit) |
|
$ |
50,120 |
|
|
|
(0.7 |
) |
% |
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|
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(1) For the year ended December, 31 2025 , state and local income taxes in Texas comprise the majority |
(greater than 50 percent) of the tax effect in this category. |
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Year Ended |
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Year Ended |
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|
December 31, 2024 |
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December 31, 2023 |
|
Statutory federal income tax expense |
|
$ |
275,593 |
|
|
$ |
736,001 |
|
Federal tax impact of REIT election |
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|
(1,357,871 |
) |
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(2,231,835 |
) |
Statutory federal income tax expense (benefit) at TRS |
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|
(1,082,278 |
) |
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(1,495,834 |
) |
Federal impact of PPP loan forgiveness |
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|
— |
|
|
|
(56,470 |
) |
State income tax benefit, net of federal expense (benefit) |
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|
(106,088 |
) |
|
|
(566,378 |
) |
Change in valuation allowance |
|
|
1,320,857 |
|
|
|
1,813,735 |
|
Income tax expense (benefit) |
|
$ |
132,491 |
|
|
$ |
(304,947 |
) |
|
| Summary of Company Paid Income Taxes |
The Company paid income taxes as follows:
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Year Ended |
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|
December 31, 2025 |
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|
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U.S. federal |
|
$ |
— |
|
U.S. state and local |
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Maryland |
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|
38,712 |
|
Pennsylvania |
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|
60,691 |
|
Texas |
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|
43,886 |
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Other |
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|
75 |
|
Total U.S. state and local |
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|
143,364 |
|
Total income taxes paid, net of refunds |
|
$ |
143,364 |
|
|
| Schedule of Significant Components of Deferred Tax Asset |
The significant components of our deferred tax asset as of December 31, 2025 and 2024, are as follows:
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Year Ended |
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Year Ended |
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December 31, 2025 |
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December 31, 2024 |
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Deferred tax asset: |
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Net operating loss carryforwards |
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$ |
13,321,350 |
|
|
$ |
13,247,852 |
|
Accrued compensation |
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|
123,117 |
|
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|
549,538 |
|
Accrued expenses and other |
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|
1,056,700 |
|
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|
516,991 |
|
|
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|
14,501,167 |
|
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|
14,314,381 |
|
Less: Valuation allowance |
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(14,501,167 |
) |
|
|
(14,314,381 |
) |
Total |
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$ |
— |
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|
$ |
— |
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|