Income taxes

12 Months Ended

Dec. 31, 2025

Income taxes

Income taxes

11. Income taxes

The components of income before income taxes for the years ended December 31, 2025, 2024, and 2023 are as follows:

	Year Ended December 31,
	2025		2024		2023
Foreign (not subject to income taxes)	$	12,274,013	$	10,699,269	$	10,002,233
Mexico		(131,596)		10,922,374		(742,367)
United States		8,952,083		9,412,015		27,649,330
		21,094,500		31,033,658		36,909,196
Discontinued operations		290,635		(10,355,184)		1,086,744
	$	21,385,135	$	20,678,474	$	37,995,940

The Company’s provision for (benefit from) income taxes for the years ended December 31, 2025, 2024, and 2023, which related to U.S. operations, consisted of the following:

	Year Ended December 31,
	2025		2024		2023
Current:
Federal	$	1,160,917	$	2,282,566	$	5,611,360
State		507,180		255,835		1,663,653
Foreign		—		—		—
Total current income tax provision (benefit)		1,668,097		2,538,401		7,275,013
Deferred:
Federal		457,068		(267,100)		(276,070)
State		39,483		(52,787)		(248,929)
Foreign		—		—		—
Total deferred income tax provision (benefit)		496,551		(319,887)		(524,999)
Total provision for (benefit from) income taxes	$	2,164,648	$	2,218,514	$	6,750,014

A reconciliation of the U.S. statutory federal tax rate to the effective rate for the year ended December 31, 2025:

		Year Ended December 31,
		2025
		Amount	Percent
U.S. statutory federal tax rate	$	4,490,879	21.00	%
State and local income taxes, net of federal effect (a)		440,154	2.06	%
Foreign tax effects - tax rate differential
Cayman Islands		(1,265,705)	(5.92)	%
The Bahamas		(1,363,912)	(6.38)	%
Nontaxable or nondeductible items		(135,296)	(0.63)	%
Other adjustments		(1,472)	(0.01)	%
Effective tax rate	$	2,164,648	10.12	%

(a) State taxes in California made up the majority (greater than 50 percent) of the tax effect in the State and local income taxes category.

Below is a tabular rate reconciliation previously disclosed for the years ended December 31, 2024 and 2023:

		Year Ended December 31,
		2024				2023
		Amount	Percent			Amount	Percent
U.S. statutory federal rate	$	4,342,478	21.00	%	$	7,979,149	21.00	%
State taxes, net of federal effect		149,323	0.72	%		1,093,433	2.88	%
Foreign rate differential		(2,365,946)	(11.45)	%		(2,172,793)	(5.71)	%
Permanent items		94,551	0.46	%		(120,739)	(0.32)	%
Change in valuation allowance		(1,892)	—	%		(29,036)	(0.08)	%
Effective tax rate	$	2,218,514	10.73	%	$	6,750,014	17.77	%

The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2025 and 2024 were as follows:

	December 31,
	2025		2024
Continuing Operations
Deferred tax assets:
Net operating loss carryforwards	$	212,772	$	80,285
Accruals and reserves		220,343		209,549
Operating lease liabilities		439,254		425,797
Capitalized research expenditures		—		316,937
Others		156,196		88,750
Valuation allowances		—		—
		1,028,565		1,121,318
Deferred tax liabilities:
Property and equipment		764,116		239,830
Intangible assets		525,359		672,973
Operating lease right-of-use assets		433,058		419,408
Others		13,476		—
		1,736,009		1,332,211
Net deferred tax liabilities	$	(707,444)	$	(210,893)

As of December 31, 2025, the Company’s continuing operations have a federal net loss carryforward of approximately $914,000 and a state net loss carryforward of approximately $552,000. The net operating losses (“NOLs”) generated in taxable years beginning before January 1, 2018, may be carried forward up to 20 taxable years. The unused federal NOLs

will expire on various dates starting from 2030. For NOLs generated in taxable years beginning after December 31, 2017, they are carried forward indefinitely until used and never expire.

The Company made tax payments, net of refunds received during the year ended December 31, 2025, as follows:

	December 31,
	2025
Jurisdiction
United States	$	1,989,000
Florida		203,000
Other States		175,076
Net Payment	$	2,367,076