A reconciliation of the difference between the expected income tax expense, computed at federal income tax rate of 21% for the three and nine months ended September 30, 2025 and state income tax rate of 1.5% for the three and nine months ended September 30, 2024, and the Company’s reported income tax expense is shown in the following table:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
(Loss) income before income tax expense	$	(510,774	)	$	(11,540	)	$	803,190		$	1,849,386
Statutory federal/state corporate income tax rates		21	%		1.5	%		21	%		1.5	%
Income tax computed at statutory state income tax rates	$	(107,262	)	$	(173	)	$	168,670		$	27,741
Tax effect on non-deductible expense		(23,893	)		760			224,454			1,885
Tax effect on non-taxable income		—			—			(170,341	)		—
Tax effect on deferred tax assets recognition relating to conversion of S Corporation to C Corporation		82,269			—			(568,243	)		—
Tax effect on deductible passed through entity tax payment		—			—			—			(8,100	)
Tax effect on state and local income taxes		(19,422	)		—			108,601			—
Income tax (benefit) expense	$	(68,308	)	$	587		$	(236,859	)	$	21,526

Schedule of Deferred Tax Assets and Liabilities

Components of the Company’s deferred tax assets and liabilities are as follows:

	As of
	September 30, 2025			December 31, 2024
	(Unaudited)			(Audited)
Deferred tax assets:
Accrued vacation	$	51,313		$	2,140
Allowance for expected credit losses		147,284			8,449
Depreciation		—			7,353
Inventory valuation allowance		120,193			—
Operating lease liabilities		5,024,923			—
Capitalized costs		153,360
Total deferred tax assets	$	5,497,073		$	17,942

Deferred tax liabilities:
Operating lease right-of-use assets	$	(4,719,602	)	$	—
Depreciation		(132,513	)		—
Total deferred tax liabilities	$	(4,852,115	)	$	—
Deferred tax assets, net	$	644,958		$	17,942