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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2025
INCOME TAXES [Abstract] |
Income (Loss) Before Income Taxes | The following table summarizes income (loss) before income taxes:
|  |  | Year Ended |
|  |  | December 31, 2025 |
Domestic |  | $ | (10,335 | )
Foreign |  |  | - |
Total |  | $ | (10,335 | )
Components of Income Tax Expense (Benefit) | The Company's income tax expense (benefit) is as follows:
|  |  | Year Ended |
|  |  | December 31, 2025 |
U.S. Federal |  | $ | - |
State |  |  | - |
Foreign |  |  | - |
Current income tax expense (benefit) |  |  | - |
U.S. Federal |  |  | - |
State |  |  | - |
Foreign |  |  | - |
Deferred income tax expense (benefit) |  |  | - |
Total income tax expense (benefit) |  | $ | - |
The provision/(benefit) for Income Taxes for the year ended December 31, 2024, consists of the following:
| Year Ended
| December 31, 2024
Current Tax Expense/(Benefit) |  |  |
Deferred Tax Expense/(Benefit) | $ | (2,712 | )
Change in Valuation Allowance |  | 2,712 |
Income Tax Provision/(Benefit) | $ | - |
Reconciliation of Statutory to Effective Federal Tax Rate | The following is a reconciliation from the Company's statutory rate to the effective tax rate reported in the financial statements:
|  | Year Ended
|  | December 31, 2025
Statutory Federal Income Tax Rate |  | $ | (2,170 | ) |  |  | 21.0 | %
State and local income taxes, net of federal benefit of state |  |  | (978 | ) |  |  | 9.5 | %
Foreign Tax Effects |  |  | - |  |  |  | 0.0 | %
Federal Law Changes |  |  | - |  |  |  | 0.0 | %
Total Effect of Cross-Border Tax Laws |  |  | - |  |  |  | 0.0 | %
Tax Credits (Federal) |  |  | - |  |  |  | 0.0 | %
Valuation Allowance |  |  | 3,440 |  |  |  | (33.3 | )%
Non-Deductible or Non-Taxable Items |  |  | (584 | ) |  |  | 5.7 | %
Unrecognized Tax Benefits |  |  | - |  |  |  | 0.0 | %
Other Adjustments |  |  | 292 |  |  |  | (2.9 | )%
Effective Income Tax Rate |  | $ | - |  |  |  | 0.0 | %
The Company’s effective income tax rate is different from the federal statutory tax rate in 2024 predominantly due to the valuation allowance, permanent differences, and state taxes. A reconciliation of the statutory U.S. Federal Tax Rate to the Company's Effective Tax Rate is as follows:
| Year Ended
| December 31, 2024
U.S. Statutory Federal Income Tax Rate | $ | (1,234 | )
State Income Taxes, net of Federal Income tax Benefit |  | (67 | )
Permanent differences and other |  | (1,411 | )
Valuation Allowance |  | 2,712 |
Income Tax Provision/(Benefit) | $ | - |
Deferred Tax Assets and Liabilities | The tax effect of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to deferred tax assets and liabilities is as follows:
|  |  | Year Ended |
|  |  | December 31, 2025 |
Capitalized Sec. 174 expenses |  | $ | 1,137 |
Stock-based compensation |  |  | 2,631 |
Tax credits |  |  | 81 |
Net operating losses - U.S. |  |  | 22,195 |
Accruals and other |  |  | 967 |
Gross deferred tax assets |  |  | 27,011 |
Valuation allowance |  |  | (26,455 | )
Net deferred tax assets |  |  | 556 |
Deferred tax liabilities |  |  |  |
Capital Lease - ROU Asset |  |  | (516 | )
Prepaid Expense |  |  | (40 | )
Total deferred tax liabilities |  |  | (556 | )
Total deferred tax assets (liabilities) |  | $ | - |
Deferred income taxes represent the tax effect of transactions that are reported in different periods for financial and tax reporting purposes. The combined temporary differences and carryforwards of each tax paying component of the Company that give rise to a significant portion of the deferred income tax benefits and liabilities are as follows as of December 31, 2024:
| Year Ended
| December 31, 2024
Deferred income tax assets: |  |  |
Net operating loss carryforwards | $ | 18,832 |
Sec. 174 capitalization |  | 1,931 |
Research and development credits |  | 81 |
Stock Based Compensation |  | 1,708 |
Accruals and Other |  | 925 |
Total deferred tax assets (gross) |  | 23,477 |
Less valuation allowance |  | (23,015 | )
Net deferred tax assets |  | 462 |
Deferred income tax liabilities: |  | - |
Depreciation and other |  | (462 | )
Net deferred tax liabilities | $ | (462 | )
Net deferred income taxes | $ | - |
Unrecognized Tax Benefits | The Company is subject to income tax in multiple jurisdictions, including federal, states, and city jurisdictions. The Company has federal, state, and city income tax returns that are open to examination from 2022, 2023, and 2024. In addition, the utilization of tax carryforwards from periods prior to those previously mentioned may also be audited by the taxing authorities once utilized.
|  |  | Year Ended |
|  |  | December 31, 2025 |
Balance as of December 31, 2024 |  | $ | - |
Additions based on tax positions related to the current year |  |  | - |
Additions for tax positions of prior years |  |  | - |
Reductions for tax positions of prior years |  |  | - |
Reductions related to settlements |  |  | - |
Reductions from lapse of statute of limitations |  |  | - |
Balance as of December 31, 2025 |  | $ | - |

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