Income Taxes |
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| Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes |
14Income Taxes As of result of the Combination discussed above, the Company acquired operations in Canada. The foreign loss before taxes and the deferred tax expense disclosed below relates to the Company’s new operations in Canada. For the three and six months ended June 30, 2025 and 2024, the domestic and foreign components of net loss before income taxes are as follows:
The Company recorded a deferred tax expense of $149 and $190,691 for the three and six months ended June 30, 2025. There was no deferred tax expense (benefit) for the three and six months ended June 30, 2024. The components of the deferred tax expense are as follows:
As of December 31, 2024, the Company had U.S. federal net operating loss carryforwards of approximately $36,669,000, which have an indefinite carryforward and Georgia and Florida state net operating loss carryforwards of approximately $44,443,000 and $1,372,000, respectively, which have a twenty-year carryforward and begin expiring in 2037. As of December 31, 2024, the Company had Canadian non-capital loss carryforwards of approximately $25,277,000, which have a twenty year carryforward and begin expiring in 2025 and Hong Kong tax losses carryforwards or approximately $58,126,000 which have no expiry. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA requires adjustments to existing deferred tax assets and liabilities based on new tax rates and provisions. The effects of the OBBBA will be recognized in the Company’s third quarter 2025 financial statements. Since the Company has substantial net operating loss carryforwards and has a full valuation allowance for its domestic deferred tax assets, the Company does not believe there will be a material impact to the Company’s consolidated financial statements. |
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