v3.26.1
Income Tax
 3 Months Ended
Mar. 31, 2026
Income Tax [Abstract]  
INCOME TAX

NOTE 16 – INCOME TAX

 

The effective tax rate for the three months ended March 31, 2026 was (4.41%) compared to nil for the three months ended March 31, 2025. The Company recorded income tax expense of $151,352 and nil for the three months ended March 31, 2026 and 2025, respectively. The increase is due to the recognition of income tax expense in our Indian operations and in previous period, Indian subsidiary had incurred tax losses and was not subject to income tax.

 

Deferred income taxes recognized in OCI are as follows:

 

   Period ended 
Particulars  March 31,
2026		   March 31,
2025		 
         
Deferred taxes benefit / (expense) recognized on:        
Domestic        
Federal   
-
    
-
 
State   
-
    
-
 
Foreign          
India          
Retirement benefits   (1,203)   
-
 
Total   (1,203)   
-
 

 

As of March 31, 2026, and December 31, 2025, the Company recorded a valuation allowance of $14,236,309 and $12,870,003, respectively, against deferred tax assets arising from net operating losses and temporary differences in its U.S. operations, due to a history of operating losses and limited visibility into future taxable income. Based on the assessment, deferred tax assets related to the Indian operations are considered realizable, and no valuation allowance has been recorded for those jurisdictions.

 

The Company’s policy is to recognize interest and penalties related to uncertain income tax matters within income tax expense in the condensed consolidated statements of operations. As of March 31, 2026, the Company had accrued $521,814 (December 31, 2025: $525,278) related to income-tax-related interest.

 

As of March 31, 2026, the Company has no unrecognized tax benefits.