| Schedule of Components of Income Tax Expense (Benefit) |
Income tax expense (benefit) reported in the consolidated income statements is comprised of the following:
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|
December 31, |
|
2022 |
|
2021 |
| Current expense (benefit): |
|
|
|
| Federal |
$ |
— |
|
|
$ |
— |
|
| State, net of state tax credits |
19,589 |
|
|
(46,031) |
|
| Total current expense (benefit) |
19,589 |
|
|
(46,031) |
|
| Deferred expense (benefit): |
|
|
|
| Federal |
610,210 |
|
|
(969,628) |
|
| State |
136,711 |
|
|
(277,570) |
|
| Total deferred expense (benefit) |
746,921 |
|
|
(1,247,198) |
|
| Total income tax expense (benefit) |
$ |
766,510 |
|
|
$ |
(1,293,229) |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The following are the components of the Company’s deferred tax assets (liabilities) for federal and state income taxes:
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December 31, |
|
2022 |
|
2021 |
| Deferred income tax assets: |
|
|
|
| Accrued expenses |
$ |
109,437 |
|
|
$ |
938,916 |
|
| Deferred revenue |
5,338,821 |
|
|
4,546,130 |
|
| Lease liability |
6,582,122 |
|
|
5,839,233 |
|
| Goodwill - component 2 |
72,033 |
|
|
53,946 |
|
| Nonqualified stock options |
339,076 |
|
|
255,921 |
|
| Net operating loss carryforwards |
3,400,019 |
|
|
4,210,605 |
|
| Tax credits |
35,850 |
|
|
35,850 |
|
| Intangibles |
2,595,312 |
|
|
1,719,484 |
|
| Total deferred income tax assets |
18,472,670 |
|
|
17,600,085 |
|
| Deferred income tax liabilities: |
|
|
|
| Lease right-of-use asset |
(5,694,797) |
|
|
(5,022,052) |
|
| Deferred franchise costs |
(100,558) |
|
|
(122,431) |
|
| Goodwill - component 1 |
(537,421) |
|
|
(405,964) |
|
| Asset basis difference related to property and equipment |
(2,545,455) |
|
|
(1,902,389) |
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| Restricted stock compensation |
(145,956) |
|
|
(98,958) |
|
| Total deferred income tax liabilities |
(9,024,187) |
|
|
(7,551,794) |
|
| Valuation allowance |
(1,006,770) |
|
|
(859,657) |
|
| Net deferred tax asset |
$ |
8,441,713 |
|
|
$ |
9,188,634 |
|
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| Schedule of Effective Income Tax Rate Reconciliation |
The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net income, compared to the income tax benefit in the consolidated income statements:
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For the Years Ended December 31, |
| |
2022 |
|
2021 |
| |
Amount |
|
Percent |
|
Amount |
|
Percent |
| Expected federal tax expense (benefit) |
$ |
408,190 |
|
|
21.0 |
% |
|
$ |
1,109,334 |
|
|
21.0 |
% |
| State tax provision (benefit), net of federal benefit |
160,187 |
|
|
8.2 |
% |
|
(382,181) |
|
|
(7.2) |
% |
| Change in valuation allowance |
147,113 |
|
|
7.6 |
% |
|
174,008 |
|
|
3.3 |
% |
| Other permanent differences |
199,927 |
|
|
10.3 |
% |
|
311,360 |
|
|
5.9 |
% |
| Stock compensation |
(91,454) |
|
|
(4.7) |
% |
|
(2,519,083) |
|
|
(47.7) |
% |
| Change in tax rate |
(85,536) |
|
|
(4.4) |
% |
|
— |
|
|
— |
% |
| Other adjustments |
28,083 |
|
|
1.4 |
% |
|
13,333 |
|
|
0.3 |
% |
| Expense (Benefit) |
$ |
766,510 |
|
|
39.4 |
% |
|
$ |
(1,293,229) |
|
|
(24.4) |
% |
|