| Schedule of Components of Income Tax Expense (Benefit) |
Income tax benefit reported in the consolidated income statements is comprised of the following:
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December 31, |
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2021 |
|
2020 |
| Current provision: |
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| Federal |
$ |
— |
|
|
$ |
— |
|
| State, net of state tax credits |
(46,031) |
|
|
342,832 |
|
| Total current (benefit) provision |
(46,031) |
|
|
342,832 |
|
| Deferred benefit: |
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|
|
| Federal |
(969,628) |
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|
(6,074,433) |
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| State |
(277,570) |
|
|
(2,023,061) |
|
| Total deferred (benefit) |
(1,247,198) |
|
|
(8,097,494) |
|
| Total income tax (benefit) |
$ |
(1,293,229) |
|
|
$ |
(7,754,662) |
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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, |
|
2021 |
|
2020 |
| Deferred income tax assets: |
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| Accrued expenses |
$ |
938,916 |
|
|
$ |
697,411 |
|
| Deferred revenue |
4,546,130 |
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|
5,103,496 |
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| Lease liability |
5,839,233 |
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|
3,696,955 |
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| Goodwill - component 2 |
53,946 |
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|
51,536 |
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| Nonqualified stock options |
255,921 |
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|
249,127 |
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| Net operating loss carryforwards |
4,210,605 |
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|
1,995,293 |
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| Tax credits |
35,850 |
|
|
35,850 |
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| Intangibles |
1,719,484 |
|
|
890,440 |
|
| Total deferred income tax assets |
17,600,085 |
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|
12,720,108 |
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| Deferred income tax liabilities: |
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|
| Lease right-of-use asset |
(5,022,052) |
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|
(3,153,951) |
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| Deferred franchise costs |
(122,431) |
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|
(291,915) |
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| Goodwill - component 1 |
(405,964) |
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|
(321,967) |
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| Asset basis difference related to property and equipment |
(1,902,389) |
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|
(256,487) |
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| Restricted stock compensation |
(98,958) |
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|
(68,703) |
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| Total deferred income tax liabilities |
(7,551,794) |
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|
(4,093,023) |
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| Valuation allowance |
(859,657) |
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|
(685,650) |
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| Net deferred tax asset |
$ |
9,188,634 |
|
|
$ |
7,941,435 |
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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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2021 |
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2020 |
| |
Amount |
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Percent |
|
Amount |
|
Percent |
| Expected federal tax expense |
$ |
1,109,334 |
|
|
21.0 |
% |
|
$ |
1,136,657 |
|
|
21.0 |
% |
| State tax provision, net of federal benefit |
(382,181) |
|
|
(7.2) |
% |
|
277,401 |
|
|
5.1 |
% |
| Change in valuation allowance |
174,008 |
|
|
3.3 |
% |
|
(8,877,736) |
|
|
(164.0) |
% |
| Other permanent differences |
311,360 |
|
|
5.9 |
% |
|
123,913 |
|
|
2.3 |
% |
| Stock compensation |
(2,519,083) |
|
|
(47.7) |
% |
|
(398,007) |
|
|
(7.4) |
% |
| Other adjustments |
13,333 |
|
|
0.3 |
% |
|
(16,890) |
|
|
(0.3) |
% |
| Benefit |
$ |
(1,293,229) |
|
|
(24.4) |
% |
|
$ |
(7,754,662) |
|
|
(143.3) |
% |
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