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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Taxes [Abstract] |
INCOME TAXES | NOTE 8. INCOME TAXES The Company’s net deferred tax assets and liabilities are as follows:
|  | December 31, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Deferred tax liability |  |  |  |  |  |
Startup Costs |  | $ | 474,767 |  |  | $ | 291,092 |
Total deferred tax asset |  |  | 474,767 |  |  |  | 291,092 |
Valuation allowance |  |  | (474,767 | ) |  |  | (291,092 | )
Deferred tax liability, net of allowance |  | $ | — |  |  | $ | — |
The income tax provision for the year ended December 31, 2025 and 2024 consists of the following:
|  | December 31, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Federal |  |  |  |  |  |
Current |  | $ | 182,500 |  |  | $ | 860,400 |
Deferred |  |  | (183,676 | ) |  |  | (418,565 | )
State |  |  |  |  |  |  |  |
Current |  |  | — |  |  |  | — |
Deferred |  |  | — |  |  |  | — |
Penalties and interests on underpayment of estimated income taxes |  |  | 46,687 |  |  |  | 75,181 |
Change in valuation allowance |  |  | 183,676 |  |  |  | 208,413 |
Income tax provision |  | $ | 229,187 |  |  | $ | 725,429 |
As of December 31, 2025 and 2024, the Company had no U.S. federal net operating loss carryovers available to offset future taxable income. As of December 31, 2025 and 2024, the Company did not have any state net operating loss carryovers available to offset future taxable income. In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the years ended December 31, 2025 and 2024, the change in the valuation allowance were $183,676 and $208,413, respectively. A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:
|  | December 31, 2025 |  |  | December 31, 2024 |
Statutory federal income tax rate |  | $ | (1,692,801 | ) |  |  | 21.0 | % |  | $ | 210,648 |  |  |  | 21.0 | %
Penalties and interests on income taxes |  |  | 85,843 |  |  |  | (1.0 | )% |  |  | 75,181 |  |  |  | 7.5 | %
Loss on debt extinguishment of promissory note |  |  | 1,306,823 |  |  |  | (16.2 | )% |  |  | — |  |  |  | — | %
Loss on change in fair value of promissory note and forward settlement contract |  |  | 45,669 |  |  |  | (0.6 | )% |  |  | — |  |  |  | — | %
Merger & acquisitions related costs |  |  | 299,977 |  |  |  | (3.7 | )% |  |  | 231,187 |  |  |  | 23.0 | %
Change in valuation allowance |  |  | 183,676 |  |  |  | (2.3 | )% |  |  | 208,413 |  |  |  | 20.8 | %
Income tax provision |  | $ | 229,187 |  |  |  | (2.8 | )% |  | $ | 725,429 |  |  |  | 72.3 | %
As of December 31, 2025 and 2024, the Company reported a net deferred tax liability of $0, and the deferred tax asset of $474,767 and $291,092, respectively, was fully offset by a valuation allowance. The Company’s effective tax rate was (2.8)% and 72.3% for the years ended December 31, 2025 and 2024, respectively. The effective tax rate differs from the statutory tax rate of 21% for the years ended December 31, 2025 and 2024, due to interest and penalties related to income taxes, loss on debt extinguishment of promissory note, loss on change in fair value of promissory note and forward settlement contract, merger and acquisition related costs, and the valuation allowance on the deferred tax assets related to organization expenses. Total income taxes paid for the years ended December 31, 2025 and 2024 are presented below:
|  | December 31, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Federal |  | $ | 1,037,918 |  |  | $ | 347,716 |
Total income taxes paid |  | $ | 1,037,918 |  |  | $ | 347,716 |
The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing authorities. The Company has no foreign operations and therefore no foreign tax disclosures are required.

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