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INCOME TAXES | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 12 – INCOME TAXES As of December 31, 2024, the Company has approximately $102.8 million of operating loss carryforwards for federal income tax reporting purposes that may be applied against future taxable income. All remaining net operating loss carryforwards were generated after 2017 and can be carried forward indefinitely. The net operating loss carryforwards could be subject to limitation in any given year in the event of a change in ownership as defined by Internal Revenue Code Section 382. The valuation allowance overall increased by approximately $4.8 million and $5.4 million during the years ended December 31, 2024 and 2023, respectively. The Company has fully reserved the deferred tax asset resulting from available net operating loss carryforwards. The income tax provision charged to continuing operations for the years ended December 31, 2024 and 2023 was as follows: SCHEDULE OF INCOME TAX PROVISION CHARGES
|  | December 31, |
|  | 2024 |  |  | 2023 |
Current: |  |  |  |  |  |
U.S. federal |  | $ | 144,000 |  |  | $ | - |
State and local |  |  | 196,000 |  |  |  | 111,000 |
Foreign |  |  | 62,000 |  |  |  | 317,000 |
Total |  |  | 402,000 |  |  |  | 428,000 |
Deferred: |  |  |  |  |  |  |  |
U.S. federal |  |  | - |  |  |  | - |
State and local |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | - |
Total |  |  | - |  |  |  | - |
Provision for income taxes |  | $ | 402,000 |  |  | $ | 428,000 |
The provision for income taxes differs from the expected amount of income tax benefit determined by applying the U.S. federal income tax rate of 21% to pretax income (loss) for the years ended December 31, 2024 and 2023 as follows: SCHEDULE OF PROVISION DIFFERS FROM THE AMOUNT OF INCOME TAX
|  | December 31, |
|  | 2024 |  |  | 2023 |
Computed “expected” tax benefit |  | $ | (3,848,000 | ) |  | $ | (1,951,000 | )
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |  |  |
State taxes |  |  | (397,000 | ) |  |  | (440,000 | )
Permanent differences |  |  | 56,000 |  |  |  | 71,000 |
Apportionment of Puerto Rico income |  |  | (13,000 | ) |  |  | (133,000 | )
Nondeductible expenses |  |  | - |  |  |  | - |
GILTI, net of 250 deduction |  |  | 69,000 |  |  |  | 1,855,000 |
Dividends received deduction |  |  | - |  |  |  | (1,224,000 | )
Change in valuation allowance |  |  | 4,846,000 |  |  |  | 5,361,000 |
Rate differential |  |  | (108,000 | ) |  |  | (2,125,000 | )
Deferred true up |  |  | (358,000 | ) |  |  | (515,000 | )
Other |  |  | 155,000 |  |  |  | (471,000 | )
Provision for income taxes |  | $ | 402,000 |  |  | $ | 428,000 |
Net deferred tax liabilities consist of the following components as of December 31, 2024 and 2023: SCHEDULE OF NET DEFERRED TAX LIABILITIES
|  | 2024 |  |  | 2023 |
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Stock-based compensation |  |  | 17,981,000 |  |  |  | 15,100,000 |
Sec 174 – software development |  |  | 915,000 |  |  |  | 298,000 |
Accrued compensation |  |  | 976,000 |  |  |  | 521,000 |
Operating lease liabilities |  |  | 1,569,000 |  |  |  | 145,000 |
Business interest limitation |  |  | 1,324,000 |  |  |  | 1,044,000 |
Other |  |  | 1,026,000 |  |  |  | 957,000 |
Net operating loss carryforwards |  |  | 23,634,000 |  |  |  | 23,057,000 |
Total Deferred tax assets |  |  | 47,425,000 |  |  |  | 41,122,000 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Right of use assets |  |  | (1,478,000 | ) |  |  | (125,000 | )
Depreciation |  |  | (181,000 | ) |  |  | (77,000 | )
Total deferred tax liabilities |  |  | (1,659,000 | ) |  |  | (202,000 | )
Less valuation allowance |  |  | (45,766,000 | ) |  |  | (40,920,000 | )
Deferred tax assets, Net |  | $ | - |  |  | $ | - |

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