Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Income Taxes [Abstract] |
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| Income Tax (Benefit) Expense by Jurisdiction |
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Year Ended December 31 |
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2025 |
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2024 |
Current year income taxes : |
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State |
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51,140 |
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76,398 |
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51,140 |
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76,398 |
Deferred income taxes: |
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Federal |
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$ |
— |
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$ |
(41,579) |
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— |
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(41,579) |
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Income tax expense |
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$ |
51,140 |
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$ |
34,819 |
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| Reconciliation of Effective Tax Rate, by Percentage |
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Year Ended December 31, 2025 |
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$ |
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% |
U.S. Federal Statutory Tax Rate |
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$ |
(2,276,756) |
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21.0% |
State and Local Income Taxes, Net of Federal Income Tax Effect(1) |
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40,400 |
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(0.4) |
Nontaxable or Nondeductible Items: |
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Financing Fees |
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238,672 |
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(2.2) |
Fair value remeasurement of warrant liability |
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1,581,519 |
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(14.6) |
Fair value remeasurement of contingent forward contract |
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(188,807) |
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1.7 |
Other |
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40,815 |
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(0.4) |
Changes in Valuation Allowances |
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618,100 |
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(5.7) |
Changes in Unrecognized Tax Benefits |
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(2,803) |
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0.1 |
Other Adjustments |
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— |
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— |
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$ |
51,140 |
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(0.5%) |
(1) State taxes in New York made up the majority (greater than 50%) of the tax effect in this category.
The reconciliation of the federal statutory income tax rate to the Company’s provision for income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 is as follows:
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Year Ended December 31 |
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2024 |
Tax at U.S. statutory rate |
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21.0% |
State income taxes, net of federal benefit |
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(3.8) |
Other nondeductible items |
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(4.3) |
Change in valuation allowance |
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(8.1) |
Other |
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(5.0) |
Effective tax rate |
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(0.2%) |
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| Schedule of Income Taxes Paid |
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State and Local Income Taxes |
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California |
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$ |
9,109 |
Massachusetts |
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4,200 |
New York |
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51,400 |
Other States |
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838 |
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$ |
65,547 |
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| Schedule of Deferred Tax Assets and Liabilities |
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2025 |
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2024 |
Deferred tax assets: |
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Allowance for doubtful accounts |
$ |
80,686 |
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$ |
62,747 |
Inventory |
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112,518 |
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98,271 |
Accrued and prepaid expenses |
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458,227 |
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287,495 |
Lease liability |
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902,131 |
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988,437 |
Domestic net operating loss carry-forward |
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6,701,417 |
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6,018,361 |
Other stock compensation |
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52,924 |
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72,613 |
Intangible assets |
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224,436 |
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— |
Foreign net operating loss carry-forwards and credits |
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1,910,507 |
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1,910,507 |
Federal and state credits |
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372,642 |
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369,839 |
Business interest limitation carryforward |
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1,993,748 |
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1,696,118 |
Other |
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26,110 |
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15,961 |
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Gross deferred tax assets |
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12,835,346 |
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11,520,349 |
Valuation allowance |
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(11,882,160) |
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(10,248,132) |
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Net deferred tax assets |
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953,186 |
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1,272,217 |
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Deferred tax liabilities |
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Depreciation |
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(86,429) |
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(109,390) |
Intangible assets |
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— |
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(202,202) |
Lease right-of-use asset |
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(866,757) |
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(960,625) |
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Net deferred tax liability |
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(953,186) |
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(1,272,217) |
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Total net deferred tax liability |
$ |
— |
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$ |
— |
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| Summary of Uncertain Tax Positions |
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2025 |
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2024 |
Uncertain tax positions – January 1 |
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$ |
35,468 |
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$ |
43,028 |
Expiration of statute of limitations |
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(2,803) |
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(7,560) |
Uncertain tax positions – December 31 |
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$ |
32,665 |
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$ |
35,468 |
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