Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Income Tax Disclosure [Abstract] |
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| 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, |
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2022 |
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2021 |
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(As Restated) |
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(As Restated) |
| Current expense (benefit): |
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| Federal |
$ |
377,281 |
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|
$ |
241,243 |
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| State, net of state tax credits |
132,520 |
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|
27,954 |
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| Total current expense (benefit) |
509,801 |
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|
269,197 |
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| Deferred expense (benefit): |
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| Federal |
(295,011) |
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|
(1,376,812) |
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| State |
(146,342) |
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|
(401,345) |
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| Total deferred expense (benefit) |
(441,353) |
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|
(1,778,157) |
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| Total income tax expense (benefit) |
$ |
68,448 |
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|
$ |
(1,508,960) |
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| 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, |
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2022 |
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2021 |
|
(As Restated) |
|
(As Restated) |
| Deferred income tax assets: |
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| Accrued expenses |
$ |
97,148 |
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|
$ |
938,916 |
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| Deferred revenue |
5,338,821 |
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|
4,546,130 |
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| Lease liability |
6,582,122 |
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|
5,839,233 |
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| Goodwill - component 2 |
72,033 |
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|
53,946 |
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| Nonqualified stock options |
339,075 |
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|
255,921 |
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| Interest expense limitation |
35,031 |
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— |
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| Net operating loss carryforwards |
5,285,726 |
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|
5,461,650 |
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| Tax credits |
35,850 |
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|
35,850 |
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| Intangibles |
3,166,533 |
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|
1,906,947 |
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| Total deferred income tax assets |
20,952,339 |
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19,038,593 |
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| Deferred income tax liabilities: |
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| Lease right-of-use asset |
(5,694,797) |
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|
(5,022,052) |
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| Deferred franchise costs |
(100,558) |
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(122,431) |
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| Goodwill - component 1 |
(537,421) |
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(405,964) |
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| Asset basis difference related to property and equipment |
(2,545,455) |
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(1,902,389) |
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| Restricted stock compensation |
(145,956) |
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(98,958) |
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| Total deferred income tax liabilities |
(9,024,187) |
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(7,551,794) |
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| Valuation allowance |
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| Net deferred tax asset |
$ |
11,928,152 |
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$ |
11,486,799 |
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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, |
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2022 |
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2021 |
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(As Restated) |
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(As Restated) |
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Amount |
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Percent |
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Amount |
|
Percent |
| Expected federal tax expense (benefit) |
$ |
145,982 |
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|
21.0 |
% |
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$ |
1,280,282 |
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21.0 |
% |
| State tax provision (benefit), net of federal benefit |
41,660 |
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6.0 |
% |
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(332,169) |
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(5.5) |
% |
Other permanent differences |
15,458 |
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2.2 |
% |
|
72,794 |
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1.2 |
% |
Stock compensation |
(91,454) |
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|
(13.2) |
% |
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(2,519,083) |
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|
(41.4) |
% |
Change in tax rate |
(64,756) |
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|
(9.3) |
% |
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— |
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|
— |
% |
Other adjustments |
21,558 |
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3.1 |
% |
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(10,784) |
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(0.2) |
% |
| Expense (Benefit) |
$ |
68,448 |
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9.8 |
% |
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$ |
(1,508,960) |
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(24.9) |
% |
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| Schedule of Uncertain Tax Positions Roll Forward |
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December 31, |
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2022 |
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2021 |
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(As Restated) |
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(As Restated) |
Beginning balances |
$ |
1,314,351 |
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$ |
729,837 |
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| Increases related to tax positions taken during a prior year |
— |
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— |
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| Decreases related to tax positions taken during a prior year |
— |
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— |
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| Increases related to tax positions taken during a current year |
— |
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584,514 |
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| Decreases related to settlements with taxing authorities |
— |
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— |
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| Decreases related to expiration of the statute of limitations |
— |
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— |
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Ending balances |
$ |
1,314,351 |
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$ |
1,314,351 |
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