| Reconciliation of Federal Statutory Income Tax Provision To Company's Actual Provision |
A reconciliation of the federal statutory income tax provision and tax rate to our actual provision and expected tax rate for the years ended December 31, 2025 and 2024 is as follows:
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2025 |
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2024 |
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Provision |
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Rate |
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Provision |
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Rate |
| Pre-tax book income (loss) |
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$ |
(8,228,728) |
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$ |
(4,651,205) |
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| Expected tax at 21% |
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(1,728,033) |
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21.0 |
% |
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(976,753) |
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21.0 |
% |
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| Permanent differences: |
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| Goodwill impairment |
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230,606 |
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(2.8) |
% |
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45,632 |
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(1.0) |
% |
| Intangible amortization |
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(23,824) |
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0.3 |
% |
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(37,003) |
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0.8 |
% |
| Other |
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7,310 |
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(0.1) |
% |
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5,169 |
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(0.1) |
% |
| State taxes: |
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| Current |
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20,615 |
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(0.3) |
% |
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22,565 |
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(0.5) |
% |
| Deferred |
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(379,627) |
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4.6 |
% |
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(234,928) |
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5.1 |
% |
| Other items: |
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| Expired net operating losses |
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130,882 |
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(1.6) |
% |
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324,799 |
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(7.0) |
% |
| Change in valuation allowance |
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1,846,721 |
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(22.4) |
% |
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920,794 |
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(19.8) |
% |
| Deferred tax past year true-up's |
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15,124 |
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(0.2) |
% |
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(91,289) |
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2.0 |
% |
| Other |
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(99,159) |
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1.2 |
% |
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43,579 |
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(0.9) |
% |
| Income tax provision |
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$ |
20,615 |
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(0.3) |
% |
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$ |
22,565 |
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(0.5) |
% |
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| Schedule of Deferred Tax Assets |
The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2025 and 2024 are as follows:
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2025 |
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2024 |
| Net operating loss carryforwards |
$ |
13,698,000 |
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$ |
12,025,000 |
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| R&D and ITC credit carryforwards |
412,000 |
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|
396,000 |
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| Accrued expenses and other |
372,000 |
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|
267,000 |
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| Intangibles |
286,000 |
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370,000 |
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| Leases |
(29,000) |
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— |
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| Accounts receivable |
102,000 |
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76,000 |
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| Stock options |
(102,000) |
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486,000 |
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| Inventory |
343,000 |
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279,000 |
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| Property, plant and equipment |
530,000 |
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|
578,000 |
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| Other |
1,176,000 |
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464,000 |
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| Deferred tax assets |
16,788,000 |
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|
14,941,000 |
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| Valuation allowance |
(16,788,000) |
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(14,941,000) |
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| Deferred tax assets, net |
$ |
— |
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$ |
— |
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