| SCHEDULE OF DEFERRED TAX ASSETS |
Net
deferred tax assets (liabilities) consist of the following components as of December 31:
SCHEDULE
OF DEFERRED TAX ASSETS
| |
|
2025 |
|
|
2024 |
|
| Deferred Tax Assets (Liabilities): |
|
|
|
|
|
|
|
|
| Net operating losses |
|
$ |
29,672,000 |
|
|
$ |
25,430,000 |
|
| Stock-based compensation |
|
|
1,945,000 |
|
|
|
1,899,000 |
|
| Interest expense |
|
|
406,000 |
|
|
|
381,000 |
|
| Accounts receivable reserve |
|
|
241,000 |
|
|
|
129,000 |
|
| Contributions carryover |
|
|
314,000 |
|
|
|
242,000 |
|
| Intangibles |
|
|
(7,797,056 |
) |
|
|
(8,307,000 |
) |
| Inventory |
|
|
1,267,000 |
|
|
|
684,000 |
|
| Research and development costs |
|
|
55,000 |
|
|
|
57,000 |
|
| Total deferred tax assets: |
|
|
26,102,944 |
|
|
|
20,515,000 |
|
| Less valuation allowance |
|
|
(26,102,944 |
) |
|
|
(20,515,000 |
) |
| Net deferred tax assets (liabilities) |
|
$ |
- |
|
|
$ |
- |
|
|
| SCHEDULE OF INCOME FROM CONTINUING OPERATIONS |
The
following is a reconciliation from the Company’s statutory rate to the effective tax rate reported in the financial statements:
SCHEDULE
OF INCOME FROM CONTINUING OPERATIONS
| |
|
2025 |
|
|
2024 |
|
| Federal statutory tax benefit |
|
$ |
(4,394,716 |
) |
|
|
21.0 |
% |
|
$ |
(1,037,264 |
) |
|
|
21.0 |
% |
| State tax benefit, net of federal |
|
|
(1,461,473 |
) |
|
|
7.0 |
% |
|
|
(345,200 |
) |
|
|
7.0 |
% |
| Non-deductible items |
|
|
301,154 |
|
|
|
(1.5 |
)% |
|
|
3,914 |
|
|
|
(0.1 |
)% |
| True-up adjustments |
|
|
(32,908 |
) |
|
|
0.2 |
% |
|
|
(10,350 |
) |
|
|
0.2 |
% |
| Change in valuation allowance |
|
|
5,587,944 |
|
|
|
(26.7 |
)% |
|
|
1,388,900 |
|
|
|
(28.1 |
)% |
| Total tax expense |
|
$ |
- |
|
|
|
0.0 |
% |
|
$ |
- |
|
|
|
0.0 |
% |
|