Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Loss From Continuing Operations Before the Provision for Income Taxes |
The components of loss from continuing operations before the provision for income taxes, by taxing jurisdiction are as follows:
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December 31, |
|
2025 |
|
2024 |
| Domestic |
$ |
(229,504) |
|
|
$ |
(1,608,738) |
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|
|
|
|
| Total |
$ |
(229,504) |
|
|
$ |
(1,608,738) |
|
|
| Schedule of Components of Income Tax Expense |
Income tax expense reported in the consolidated income statements is comprised of the following:
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December 31, |
|
2025 |
|
2024 |
| Current expense: |
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|
|
|
|
| State, net of state tax credits |
$ |
38,653 |
|
|
$ |
62,759 |
|
|
|
|
|
| Total current expense |
38,653 |
|
|
62,759 |
|
| Deferred expense (benefit): |
|
|
|
| Federal |
— |
|
|
(57,153) |
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|
|
|
|
|
|
|
|
|
|
|
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| Total deferred expense (benefit) |
— |
|
|
(57,153) |
|
| Total income tax expense |
$ |
38,653 |
|
|
$ |
5,606 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant components of the deferred tax assets and liabilities are provided below:
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December 31, |
|
2025 |
|
2024 |
| Deferred income tax assets: |
|
|
|
| Accrued expenses |
$ |
757,576 |
|
|
$ |
1,607,324 |
|
| Deferred revenue |
3,535,528 |
|
|
3,909,555 |
|
| Lease liabilities |
3,795,895 |
|
|
5,710,136 |
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| Goodwill - component 1 |
383,987 |
|
|
— |
|
| Goodwill - component 2 |
49,829 |
|
|
55,368 |
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| Fixed assets |
471,855 |
|
|
— |
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| Nonqualified stock options |
117,962 |
|
|
322,376 |
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|
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| Net operating loss carryforwards |
3,261,907 |
|
|
3,029,413 |
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|
|
|
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| Tax credits |
35,850 |
|
|
35,850 |
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| Intangible assets |
3,416,636 |
|
|
3,921,742 |
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| Stock-based compensation expense |
141,563 |
|
|
139,038 |
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| Total |
15,968,588 |
|
|
18,730,802 |
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| Less: valuation allowance |
(11,327,659) |
|
|
(12,307,555) |
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| Total deferred income tax assets |
4,640,929 |
|
|
6,423,247 |
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| Deferred income tax liabilities: |
|
|
|
| Lease ROU asset |
(4,320,092) |
|
|
(5,392,996) |
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| Deferred franchise costs |
(320,837) |
|
|
(75,284) |
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| Goodwill - component 1 |
— |
|
|
(807,824) |
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| Fixed assets |
— |
|
|
(147,143) |
|
| Total deferred income tax liabilities |
(4,640,929) |
|
|
(6,423,247) |
|
Net deferred income taxes |
$ |
— |
|
|
$ |
— |
|
|
| Schedule of Effective Income Tax Reconciliation |
The provision for income taxes differs from the amount calculated using the statutory federal corporate income tax rate of 21% due to the following items:
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For the Years Ended December 31, |
| |
2025 |
|
2024 |
| |
Amount |
|
Percent |
|
Amount |
|
Percent |
| Loss from continuing operations before provision for income taxes |
$ |
(229,504) |
|
|
|
|
$ |
(1,608,738) |
|
|
|
|
|
|
|
|
|
|
|
| Expected federal tax expense at U.S. federal statutory rate |
(48,388) |
|
|
21.0 |
% |
|
(337,835) |
|
|
21.0 |
% |
| State and local income taxes (net of federal income tax effect) (1) |
(128,782) |
|
|
56.1 |
% |
|
79,774 |
|
|
(5.0) |
% |
|
|
|
|
|
|
|
|
| Changes in valuation allowances |
(507,419) |
|
|
221.1 |
% |
|
66,503 |
|
|
(4.1) |
% |
| Nontaxable or nondeductible items: |
|
|
|
|
|
|
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| Section 162(m) officer compensation |
— |
|
|
— |
% |
|
85,992 |
|
|
(5.3) |
% |
| Share based compensation (2) |
(28,302) |
|
|
12.3 |
% |
|
(119,263) |
|
|
7.4 |
% |
| Payroll tax penalty |
(45,749) |
|
|
19.9 |
% |
|
— |
|
|
— |
% |
| Meals and entertainment |
23,549 |
|
|
(10.2) |
% |
|
30,462 |
|
|
(1.9) |
% |
| Other items |
17,710 |
|
|
(7.7) |
% |
|
26,572 |
|
|
(1.6) |
% |
| Changes in unrecognized tax benefits |
300,582 |
|
|
(130.9) |
% |
|
212,687 |
|
|
(13.2) |
% |
| Other adjustments: |
|
|
|
|
|
|
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| Deferred true-up to deferred franchise costs |
285,915 |
|
|
(124.5) |
% |
|
— |
|
|
— |
% |
| Current year expirations of non-qualified stock options |
217,356 |
|
|
(94.7) |
% |
|
— |
|
|
— |
% |
| Other items |
(47,819) |
|
|
20.8 |
% |
|
(39,286) |
|
|
2.4 |
% |
| Total income tax expense and effective rate |
$ |
38,653 |
|
|
(16.8) |
% |
|
$ |
5,606 |
|
|
(0.3) |
% |
___________
(1) State taxes in Arizona, California and Texas made up the majority (greater than 50%) of the tax effect in this category.
(2) Share based compensation includes incentive stock options, non-qualified stock options and restricted stock awards.
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| Schedule of Uncertain Tax Position Rollforward |
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December 31, |
|
2025 |
|
2024 |
| Beginning balance |
$ |
948,182 |
|
|
$ |
1,175,766 |
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| Reductions for expiration of the statute of limitations |
(314,468) |
|
|
(227,584) |
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| Ending balance |
$ |
633,714 |
|
|
$ |
948,182 |
|
|
| Schedule of Cash Paid For Income Taxes (Net of Refunds Received) |
The amount of cash paid for income taxes (net of refunds received) was as follows:
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|
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|
December 31, |
|
2025 |
|
2024 |
| Federal |
$ |
321,000 |
|
|
$ |
285,510 |
|
| State: |
|
|
|
| Arizona |
62,000 |
|
|
— |
|
| California |
168,000 |
|
|
182,000 |
|
| Texas |
62,000 |
|
|
51,026 |
|
| Other state jurisdictions |
13,752 |
|
|
91,956 |
|
|
|
|
|
|
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|
|
|
| Income taxes paid (net of refunds received) |
$ |
626,752 |
|
|
$ |
610,492 |
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