INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Provision for Income Taxes |
The components of the provision consist of the following for the years ended December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
U.S. (loss) |
|
$ |
(9,892,170 |
) |
|
$ |
(10,051,064 |
) |
Non-U.S. income |
|
|
11,520,138 |
|
|
|
7,481,601 |
|
Income (loss) before income taxes |
|
$ |
1,627,968 |
|
|
$ |
(2,569,463 |
) |
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
843 |
|
|
$ |
(17,309 |
) |
State |
|
|
25,282 |
|
|
|
2,393 |
|
Foreign |
|
|
113,509 |
|
|
|
117,899 |
|
Total current |
|
|
139,634 |
|
|
|
102,983 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
16,535 |
|
|
|
8,993 |
|
State |
|
|
(11,820 |
) |
|
|
(25,353 |
) |
Total deferred |
|
|
4,715 |
|
|
|
(16,360 |
) |
Noncurrent |
|
|
|
|
|
|
Federal |
|
|
— |
|
|
|
(28,976 |
) |
Total Noncurrent |
|
|
— |
|
|
|
(28,976 |
) |
Provision for income taxes |
|
$ |
144,349 |
|
|
$ |
57,647 |
|
|
| Schedule of Deferred Tax Assets |
The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following at December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Deferred Tax Assets: |
|
|
|
|
|
|
Right-of-use liability |
|
$ |
67,558 |
|
|
$ |
119,719 |
|
Net operating loss |
|
|
519,957 |
|
|
|
403,289 |
|
Share based compensation |
|
|
544,474 |
|
|
|
459,640 |
|
Intangible assets |
|
|
(452,099 |
) |
|
|
103,274 |
|
Tax credits |
|
|
816,451 |
|
|
|
638,363 |
|
Capitalized R&D Cost |
|
|
— |
|
|
|
407,919 |
|
Accruals and reserves |
|
|
376,079 |
|
|
|
107,861 |
|
Debt issuance costs |
|
|
— |
|
|
|
128,645 |
|
Business Interest Expense Limitation |
|
|
99,489 |
|
|
|
— |
|
Other |
|
|
94,206 |
|
|
|
70,527 |
|
Total deferred tax assets |
|
|
2,066,115 |
|
|
|
2,439,237 |
|
|
|
|
|
|
|
|
Total valuation allowance |
|
|
(1,807,161 |
) |
|
|
(2,102,373 |
) |
|
|
|
|
|
|
|
Deferred Tax Liabilities: |
|
|
|
|
|
|
Right-of-use asset |
|
|
(62,952 |
) |
|
|
(131,074 |
) |
Prepaid assets |
|
|
(93,449 |
) |
|
|
(103,921 |
) |
Basis difference in fixed assets |
|
|
(151,698 |
) |
|
|
(128,115 |
) |
Other |
|
|
— |
|
|
|
(18,183 |
) |
Total deferred tax liabilities |
|
|
(308,099 |
) |
|
|
(381,293 |
) |
Net deferred tax liabilities |
|
$ |
(49,145 |
) |
|
$ |
(44,429 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The income tax provision differs from that computed at the federal statutory corporate income tax rate as follows:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
Amount |
|
|
% |
|
|
|
|
|
|
|
|
Income tax (benefit) at statutory rate |
|
$ |
341,873 |
|
|
|
21.0 |
% |
State and local income taxes (net of federal income tax effect) [a] |
|
|
3,421 |
|
|
|
0.2 |
% |
Foreign tax effects |
|
|
113,509 |
|
|
|
7.0 |
% |
Tax credits |
|
|
(178,088 |
) |
|
|
-10.9 |
% |
Change in valuation allowance |
|
|
(244,349 |
) |
|
|
-15.0 |
% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
Transaction costs |
|
|
84,042 |
|
|
|
5.2 |
% |
Share Based Compensation |
|
|
(23,100 |
) |
|
|
-1.4 |
% |
Other perms |
|
|
21,268 |
|
|
|
1.3 |
% |
Other reconciling items |
|
|
|
|
|
|
RTP |
|
|
(66,228 |
) |
|
|
-4.1 |
% |
Other |
|
|
92,001 |
|
|
|
5.7 |
% |
Provision for income taxes |
|
$ |
144,349 |
|
|
|
8.9 |
% |
[a] State taxes in Illinois, Louisiana and New Jersey made up the majority (greater than 50 percent) of the tax effect in this category.
As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:
|
|
|
|
|
2024 |
|
Tax provision computed at the federal statutory rate |
$ |
(458,856 |
) |
Foreign rate differential |
|
52,559 |
|
State income tax, net of federal benefit |
|
13,719 |
|
Other permanent items |
|
660,115 |
|
Credits |
|
(205,311 |
) |
State tax true ups |
|
(40,157 |
) |
Other rate changes, net of benefit |
|
(28,859 |
) |
Change in valuation allowance |
|
64,437 |
|
Provision for income taxes |
$ |
57,647 |
|
|
| Schedule of Cash Taxes Paid |
The amounts of cash taxes paid are as follows:
|
|
|
|
|
|
|
2025 |
|
US Federal |
|
$ |
35,000 |
|
State |
|
|
|
California |
|
|
12,000 |
|
New Jersey |
|
|
3,000 |
|
Other States |
|
|
6,330 |
|
Foreign |
|
|
|
Puerto Rico |
|
|
111,250 |
|
Income taxes paid (net of refunds received) |
|
$ |
167,580 |
|
|
| Summary of Net Operating Losses ("NOLs") and Credit Carryforwards |
Net operating losses ("NOLs") and credit carryforwards as of December 31, 2025:
|
|
|
|
|
Federal NOLs prior to 2018 |
|
|
— |
|
Begin to Expire In |
|
N/A |
|
|
|
|
|
Federal NOLs post 2017 |
|
$ |
2,032,247 |
|
Begin to Expire In |
|
Indefinite |
|
|
|
|
|
State NOLs |
|
$ |
2,022,341 |
|
Begin to Expire In |
|
|
2032 |
|
|
|
|
|
Federal R&D Credits |
|
$ |
301,341 |
|
Begin to Expire In |
|
|
2042 |
|
|
|
|
|
Foreign Tax credit |
|
$ |
515,110 |
|
Begin to Expire In |
|
|
2030 |
|
|
| Schedule of Gross Unrecognized Tax Benefits |
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Beginning balance of unrecognized tax benefits |
|
$ |
1,934 |
|
|
$ |
30,909 |
|
Decreases for tax positions related to the prior year |
|
|
— |
|
|
|
(28,975 |
) |
Lapse of statutes of limitations |
|
|
(1,934 |
) |
|
|
— |
|
Ending balance of unrecognized tax benefits |
|
$ |
— |
|
|
$ |
1,934 |
|
|