Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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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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2023 |
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2022 |
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Current expense: |
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| Federal |
$ |
178,152 |
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$ |
377,281 |
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| State, net of state tax credits |
251,428 |
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|
132,520 |
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Total current expense |
429,580 |
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|
509,801 |
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| Deferred expense (benefit): |
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| Federal |
8,606,677 |
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(295,011) |
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| State |
2,354,696 |
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(146,342) |
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| Total deferred expense (benefit) |
10,961,373 |
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(441,353) |
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Total income tax expense |
$ |
11,390,953 |
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|
$ |
68,448 |
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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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2023 |
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2022 |
| Deferred income tax assets: |
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| Accrued expenses |
$ |
426,218 |
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$ |
97,148 |
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| Deferred revenue |
5,414,824 |
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|
5,338,821 |
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| Lease liability |
6,697,111 |
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|
6,582,122 |
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| Goodwill - component 2 |
63,328 |
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|
72,033 |
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| Nonqualified stock options |
378,208 |
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|
339,075 |
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| Interest expense limitation |
— |
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|
35,031 |
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| Net operating loss carryforwards |
3,383,391 |
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5,285,726 |
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| Tax credits |
35,850 |
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|
35,850 |
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| Intangibles |
3,907,623 |
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|
3,166,533 |
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| Total deferred income tax assets |
20,306,553 |
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20,952,339 |
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| Deferred income tax liabilities: |
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| Lease right-of-use asset |
(5,852,353) |
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(5,694,797) |
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| Deferred franchise costs |
(108,148) |
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(100,558) |
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| Goodwill - component 1 |
(673,278) |
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(537,421) |
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| Asset basis difference related to property and equipment |
(1,853,103) |
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(2,545,455) |
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| Restricted stock compensation |
65,886 |
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(145,956) |
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| Total deferred income tax liabilities |
(8,420,996) |
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(9,024,187) |
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| Valuation allowance |
(10,853,909) |
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— |
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Net deferred tax asset ($1.1 million and $1.0 million attributable to VIEs as of December 31, 2023 and 2022) |
$ |
1,031,648 |
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$ |
11,928,152 |
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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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2023 |
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2022 |
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Amount |
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Percent |
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Amount |
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Percent |
| Expected federal tax expense |
$ |
344,139 |
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|
21.0 |
% |
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$ |
145,982 |
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21.0 |
% |
| Meals and entertainment |
31,057 |
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1.9 |
% |
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— |
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— |
% |
| State tax provision (benefit), net of federal benefit |
163,657 |
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10.0 |
% |
|
41,660 |
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6.0 |
% |
Other permanent differences |
12,651 |
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0.8 |
% |
|
15,458 |
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2.2 |
% |
| Change in VA |
10,849,714 |
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|
662.1 |
% |
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— |
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— |
% |
Stock compensation |
(2,030) |
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(0.1) |
% |
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(91,454) |
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(13.2) |
% |
Change in tax rate |
147,911 |
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9.0 |
% |
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(64,756) |
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(9.3) |
% |
| Return to provision |
(153,254) |
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(9.4) |
% |
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— |
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— |
% |
Other adjustments |
(2,892) |
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(0.2) |
% |
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21,558 |
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3.1 |
% |
| Expense |
$ |
11,390,953 |
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|
695.1 |
% |
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$ |
68,448 |
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9.8 |
% |
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| Schedule of Uncertain Tax Positions Roll Forward |
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December 31, |
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2023 |
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2022 |
Beginning balances |
$ |
1,314,351 |
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$ |
1,314,351 |
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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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— |
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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 |
(138,585) |
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— |
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Ending balances |
$ |
1,175,766 |
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$ |
1,314,351 |
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