| Schedule of provision for income taxes |
| Schedule of provision for income taxes |
|
|
|
|
| |
|
2025 |
|
| Current |
|
|
|
|
| Federal taxes |
|
$ |
– |
|
| State taxes |
|
|
– |
|
| Total current |
|
|
– |
|
| |
|
|
|
|
| Deferred |
|
|
|
|
| Federal tax benefit |
|
|
(5,060,603 |
) |
| State tax benefit, net of federal benefit |
|
|
(323,370 |
) |
| Total income tax benefit |
|
$ |
(5,383,973 |
) |
|
| Schedule of components of income tax expense (benefit) |
| Schedule of components of income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2025 |
|
|
% |
|
|
2024 |
|
|
% |
|
| Expected federal income tax benefit at statutory rate |
|
$ |
(32,641,656 |
) |
|
|
21.0 |
|
|
$ |
(9,557,165 |
) |
|
|
21.0 |
|
| State income taxes, net of federal benefit |
|
|
(1,618,882 |
) |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-taxable or non-deductible items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock compensation |
|
|
105,000 |
|
|
|
(0.1 |
) |
|
|
65,301 |
|
|
|
(0.1 |
) |
| (Gain) loss on warrants classified as liabilities |
|
|
– |
|
|
|
|
|
|
|
3,101,361 |
|
|
|
(6.8 |
) |
| Loss on extinguishment of Convertible Notes |
|
|
– |
|
|
|
|
|
|
|
345,998 |
|
|
|
(0.8 |
) |
| Interest expense on Convertible Notes |
|
|
– |
|
|
|
|
|
|
|
66,116 |
|
|
|
(0.1 |
) |
| Other |
|
|
25,788 |
|
|
|
–* |
|
|
|
15,517 |
|
|
|
–* |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax rate change |
|
|
(119,516 |
) |
|
|
0.1 |
|
|
|
– |
|
|
|
|
|
| Return to provision and true ups |
|
|
– |
|
|
|
|
|
|
|
345,266 |
|
|
|
(0.8 |
) |
| Write off of deferred tax asset for stock-based compensation |
|
|
– |
|
|
|
|
|
|
|
3,235,732 |
|
|
|
(7.1 |
) |
| Change in valuation allowance |
|
|
28,865,293 |
|
|
|
(18.6 |
) |
|
|
2,381,874 |
|
|
|
(5.2 |
) |
| Income tax benefit |
|
$ |
(5,383,973 |
) |
|
|
3.5 |
|
|
$ |
– |
|
|
|
0.0 |
|
|
| Schedule of deferred tax assets and liabilities |
| Schedule of deferred tax assets and liabilities |
|
|
|
|
|
|
| |
|
December 31, 2025
|
|
|
December 31, 2024
|
|
| Deferred tax assets |
|
|
|
|
|
|
|
|
| Net operating losses |
|
$ |
25,562,308 |
|
|
$ |
20,932,619 |
|
| Unrealized loss on digital assets |
|
|
21,657,531 |
|
|
|
– |
|
| Stock-based compensation |
|
|
3,819,466 |
|
|
|
– |
|
| Depreciation and amortization |
|
|
776,599 |
|
|
|
1,562,438 |
|
| Research & development credit |
|
|
1,099,535 |
|
|
|
1,099,535 |
|
| Lease liability |
|
|
174,998 |
|
|
|
162,786 |
|
| Accrued expenses |
|
|
47,898 |
|
|
|
94,561 |
|
| Capital loss carryover |
|
|
187,549 |
|
|
|
178,442 |
|
| Vendor settlements and reserves |
|
|
262,168 |
|
|
|
689,253 |
|
| Other |
|
|
26,066 |
|
|
|
41,554 |
|
| Total |
|
|
53,614,118 |
|
|
|
24,761,188 |
|
| Valuation allowance |
|
|
(53,296,785 |
) |
|
|
(24,431,492 |
) |
| Net deferred tax asset |
|
|
317,333 |
|
|
|
329,696 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
|
|
|
|
|
|
| Prepaid expenses |
|
|
(145,763 |
) |
|
|
(174,457 |
) |
| Right-of-use assets |
|
|
(171,570 |
) |
|
|
(155,239 |
) |
| Total net deferred taxes deferred tax liabilities |
|
$ |
– |
|
|
$ |
– |
|
|