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INCOME TAXES | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | 12. INCOME TAXES The provision for income tax expense (benefit) is comprised of the following: SCHEDULE OF PROVISION FOR INCOME TAX EXPENSE (BENEFIT)
|  | 2024 |  |  | 2023 |
Current tax, federal |  | $ | 763,471 |  |  | $ | 753,683 |
Current tax, state |  |  | 345,380 |  |  |  | 340,952 |
Current tax, foreign |  |  | 217,552 |  |  |  | 151,236 |
Current tax expense |  |  | 1,326,403 |  |  |  | 1,245,871 |
Income tax benefit |  |  | (621,959 | ) |  |  | (1,127,689 | )
Current tax, total expense |  |  | 704,444 |  |  |  | 118,182 |
Deferred income tax, federal |  |  | 101,053 |  |  |  | (172,763 | )
Deferred income tax, state |  |  | 45,714 |  |  |  | (78,154 | )
Deferred income tax, foreign |  |  | - |  |  |  | - |
Deferred income tax, total expense (benefit) |  |  | 146,767 |  |  |  | (250,917 | )
Total |  | $ | 851,211 |  |  | $ | (132,735 | )
The following table reconciles the income tax expense at the U.S. Federal statutory rate to income tax expense at the Company’s effective tax rates. SCHEDULE OF RECONCILIATION OF INCOME TAXES
|  | 2024 |  |  | 2023 |
Income before income tax - United States |  | $ | 4,472,950 |  |  | $ | 3,249,901 |
Income before income tax - Canada |  |  | 479,850 |  |  |  | 373,349 |
Income before income tax |  |  | 4,952,800 |  |  |  | 3,623,250 |
US federal statutory tax rate |  |  | 21.00 | % |  |  | 21.00 | %
Expected income tax expense |  |  | 1,040,088 |  |  |  | 760,883 |
State income tax expense, net of federal tax benefit |  |  | 371,708 |  |  |  | 344,208 |
Non-deductible items |  |  | 64,857 |  |  |  | 362,554 |
Change in estimates and other |  |  | (194,142 | ) |  |  | (1,585,427 | )
Foreign tax rate differential |  |  | (35,952 | ) |  |  | (92,379 | )
Change in valuation allowance |  |  | (395,348 | ) |  |  | 77,426 |
Total income taxes expense (benefit) |  | $ | 851,211 |  |  | $ | (132,735 | )
Included in current income tax expense for the year ended December 31, 2024 is a recovery of $621,959 (2023 - $1,127,689) for a revision of estimated current taxes payable for previous years. Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2024 and 2023 are comprised of the following: SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES)
|  | 2024 |  |  | 2023 |
Canada |  |  |  |  |  |  |  |
Non-capital loss carryforwards |  | $ | 1,059,468 |  |  | $ | 855,176 |
Share issuance costs |  |  | 1,024 |  |  |  | - |
Property, equipment and leaseholds |  |  | 27,995 |  |  |  | 30,916 |
Deferred tax assets gross |  |  | 1,088,487 |  |  |  | 886,092 |
Valuation allowance |  |  | (1,088,487 | ) |  |  | (886,092 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
|  |  | 2024 |  |  |  | 2023 |
United States |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 190,024 |  |  | $ | - |
Property, equipment and leaseholds |  |  | 502,646 |  |  |  | 36,093 |
Deferred tax asset |  |  | 692,670 |  |  |  | 36,093 |
Valuation allowance |  |  | (192,953 | ) |  |  | - |
Net deferred tax asset |  | $ | 499,717 |  |  | $ | 36,093 |
Intangible assets |  | $ | (516,414 | ) |  | $ | (11,346 | )
Investments |  |  | (105,322 | ) |  |  | - |
Deferred tax liability |  |  | (621,736 | ) |  |  | (11,346 | )
Net deferred tax asset (liability) |  | $ | (122,019 | ) |  | $ | 24,747 |
The Company has non-capital loss carryforwards of approximately $4,606,383 which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years: SCHEDULE OF NON OPERATING LOSS CARRYFORWARDS
|  | Loss |
2030 |  | $ | 249,807 |
2031 |  |  | 865,746 |
2032 |  |  | 566,109 |
2037 |  |  | 1,555,780 |
2039 |  |  | 134,471 |
2040 |  |  | 396,186 |
2041 |  |  | 301,063 |
2042 |  |  | 315,157 |
2043 |  |  | 222,064 |
Total |  | $ | 4,606,383 |
As at December 31, 2024, the Company has federal and state income tax net operating loss carryforwards of $623,028 available for US tax purposes. The NOLs carry forward indefinitely, with utilization limited to offsetting up to 80% of taxable income in any given year. Accounting for Uncertainty for Income Tax The Company recognizes income tax liabilities from uncertain tax positions where there is uncertainty as to a tax position being sustainable using the more-likely-than-not threshold. During the years ended December 31, 2024 and 2023, the total liability for uncertain tax positions increased by $419,214 and $464,185 respectively, primarily due to increased liabilities based on existing tax positions. As of December 31, 2024 and 2023, the Company has recognized liabilities for uncertain tax positions of $2,754,007 and $2,334,793, respectively, which is included in income taxes payable on the consolidated balance sheets. All recorded uncertain tax positions impact the Company’s effective tax rate. The timing of any future settlements or payments related to uncertain tax positions is uncertain. Additionally, the Company has accrued interest and penalties related to these unrecognized tax benefits and other items, which are recorded as a component of income tax expense (benefit). As of December 31, 2024 and 2023, the Company recorded an additional $333,086 and $193,551 in accrued interest and penalties. At December 31, 2024 and 2023, the Company had accrued interest and penalties related to unrecognized tax benefits of $1,237,637 and $904,549 respectively, which is included in income taxes payable on the consolidated balance sheets.

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