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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE 15—INCOME TAXES

 

The Company has calculated the provision for income taxes during the interim reporting period by applying an estimate of the Annual Effective Tax Rate (AETR) for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Our effective tax rate (ETR) from continuing operations was a 2.7% provision and a 1.5% benefit for the three months ended September 30, 2025 and 2024, respectively, and a 2.2% provision and a 2.7% benefit for the nine months ended September 30, 2025 and 2024, respectively. The ETR for the three and nine months ended September 30, 2025 differs from statutory rates primarily due to the non-controlling interest portion of ESGEN Opco, LLC, which is a partnership for federal tax purposes and a change in valuation allowance. Additionally, the Company determined that the deferred tax assets are not more likely than not to be realized based on all available evidence as of the current quarter and recorded a valuation allowance on deferred tax assets. The ETR for the three and nine months ended September 30, 2024 differs from statutory rates primarily due to the non-controlling interest portion of ESGEN Opco, LLC, which is a partnership for federal tax purposes.

 

The components of the deferred income tax assets and liabilities were as follows:

 

   September 30,
2025		   December 31,
2024		 
Other Asset assets:        
Deferred tax assets  $6,444,972   $661,904 
Valuation allowance   (6,444,972)   
-
 
Net deferred tax asset  $
-
   $661,904 
Deferred tax liabilities   
-
    (423,413)
Net deferred tax assets and liabilities  $
-
   $238,491