INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025


	December 31,
	2025			2024
Current income tax expense (benefit)
Federal	$	—		$	—
State		—			—
Current	$	—		$	—
Deferred income tax expense (benefit)
Federal	$	(501,764	)	$	(1,971,524	)
State		(256,133	)		(812,753	)
Deferred	$	(757,897	)	$	(2,784,277	)
Change in valuation allowance
Federal	$	525,558		$	1,995,089
State		301,701			877,042
Change in valuation allowance	$	827,259		$	2,872,131

Income tax expense (benefit)	$	69,362		$	87,854


	December 31,
	2025			2024
Deferred Tax Assets:
Accrued expenses	$	1,334,754		$	1,151,704
IRC 163(j)		2,320,594			1,966,053
Lease liability		1,415,747			1,415,747
Accrued compensation		711,164			711,164
Intangibles		4,737,234			5,125,534
Other assets		351,616			356,519
Capitalized production costs		564,900			541,025
Net operating losses and credits		17,588,586			16,967,044
Equity investments		2,235,034			2,235,034
Total Deferred Tax Assets	$	31,259,629		$	30,469,824

Deferred Tax Liabilities:
Right of use asset		(1,315,796	)		(1,283,888	)
Total Deferred Tax Liability	$	(1,315,796	)	$	(1,283,888	)

Subtotal	$	29,943,833		$	29,185,936

Valuation Allowance	$	(30,407,742	)	$	(29,580,483	)

Net Deferred Tax Liability	$	(463,909	)	$	(394,547	)

Schedule of net operating loss
Jurisdiction	NOL Amount		Expires
U.S. Federal⁽¹⁾	$	60,739,198		2028
Florida		26,707,662		2029
California		22,723,897		2032
New York State		6,937,079		2039
New York City		7,747,301		2039
Illinois		746,343		2031
Massachusetts		1,591,800		2038
Total	$	127,193,280

⁽¹⁾

Federal net operating losses generated after December 31, 2017 have an indefinite life and do not expire.


	December 31,
	2025						2024
	Amount			Percent			Amount			Percent
U.S. statutory federal rate	$	(634,075	)		21.0	%	$	(2,628,228	)		21.0	%
Goodwill impairment		—			—			613,947			(4.9	%)
State and local income taxes, net of federal income tax effect		45,567	(1)		(1.5	%)		64,291	(1)		(0.5	%)
Nontaxable or nondeductible items
Meal and entertainment		55,689			(1.9	%)		55,583			(0.4	%)
Other		27,413			(0.9	%)		(30,964	)		0.2	%
Changes valuation allowances		574,768			(19.0	%)		2,013,225			(16.1	%)
Total income tax expense	$	69,362			(2.3	%)	$	87,854			(0.7	%)

(1)

Taxes in New York, State, California, and New York City made of the majority of the tax effect in this category.

Dolphin Entertainment, Inc. 10-K