INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

INCOME TAXES

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following:

	For the Years Ended December 31,
	2025		2024		2023
Current tax provision (benefit)
Federal	$	—	$	(33,734)	$	33,734
State		291,293		7,893		(65,529)
Total current provision (benefit)		291,293		(25,841)		(31,795)
Deferred tax provision (benefit)
Federal		—		8,285,927		(1,855,875)
State		—		106,104		(17,491)
Total deferred tax provision (benefit)		—		8,392,031		(1,873,366)
Total income tax provision	$	291,293	$	8,366,190	$	(1,905,161)

Schedule of deferred tax assets and liabilities

Deferred taxes are provided for those items reported in different periods for income tax and financial reporting purposes.  The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:

	December 31,
	2025		2024
Deferred tax assets
Net operating loss carry forwards	$	9,687,582	$	8,466,565
Right of Use Lease Liability		43,562		—
Interest Expense Limitation		8,755		—
Charitable Contribution Carryover		105,563		—
Accrued expenses and reserves		802,544		647,654
Employee stock option expense		13,311		13,311
Inventories		201,421		345,926
Deferred income – TIA contract		12,237,854		13,495,321
Capital loss		194,397		269,651
Deferred tax assets		23,294,988		23,238,428
Deferred tax liabilities
Unrealized gains/losses		(24,451)		(1,088,481)
Right of Use Asset		(65,075)		—
Property, plant, and equipment		(11,556,742)		(13,046,294)
Deferred tax liabilities		(11,646,268)		(14,134,775)
Net deferred assets		11,648,721		9,103,653
Valuation allowance		(11,648,721)		(9,103,653)
Net deferred tax assets	$	—	$	—

*Certain totals may not reconcile due to rounding.

Schedule of reconciliation of the federal statutory corporate tax rate to the Company's effective tax rate

A reconciliation of the federal statutory corporate tax rate to the Company’s effective tax rate is as follows:

		December 31,
		2025
U.S. statutory federal tax rate	$	(2,577,526)	21.0	%
State tax, net of federal tax		239,507	(1.9)
Valuation Allowance		2,535,681	(20.7)
Nontaxable or Nondeductible Items		93,631	(0.8)
Effective tax rate	$	291,293	(2.4)	%

	December 31,
	2024		2023
U.S. statutory federal tax rate	21.0	%	21.0	%
State tax, net of federal tax	(0.6)		0.8
Change in valuation allowance	(250.6)		—
Valuation Allowance	—		(0.2)
Section 162(m); Limit on Compensation	(0.8)		(0.2)
Return-to-provision and deferred true up	(6.7)		0.1
Effective tax rate	(237.7)	%	21.5	%

Schedule of cash paid for income taxes, net of refunds

Cash paid for income taxes, net of refunds, for the year ended December 31, 2025 were as follows:

	December 31,
	2025
Federal	$	—
State:
California		(353,453)
Other		6,546
Income taxes, net of amounts refunded	$	(346,907)

	For the Years Ended December 31,
	2024		2023
Income taxes, net of amounts refunded	$	—	$	(9,747,239)