Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
Income tax expense reported in the consolidated income statements is comprised of the following:
December 31,
2024 2023
Current expense:
Federal $ —  $ — 
State, net of state tax credits 62,142  101,232 
Total current expense
62,142  101,232 
Deferred expense (benefit):
Federal —  8,545,086 
State —  2,377,093 
Total deferred expense (benefit) —  10,922,179 
Total income tax expense
$ 62,142  $ 11,023,411 
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 reported in the consolidated balance sheets:
December 31,
2024 2023
Deferred income tax assets:
Accrued expenses $ 1,607,324  $ 424,865 
Deferred revenue 3,909,556  4,269,104 
Lease liability 5,710,136  6,697,111 
Goodwill - component 2 55,368  63,328 
Asset basis difference related to property and equipment 560,818  — 
Nonqualified stock options 322,376  378,208 
Net operating loss carryforwards 3,095,071  3,337,155 
Tax credits 35,850  35,850 
Intangibles 3,921,752  3,932,350 
Restricted stock compensation 90,471  65,886 
Total deferred income tax assets 19,308,722  19,203,857 
Deferred income tax liabilities:
Lease right-of-use asset (5,392,996) (5,852,353)
Deferred franchise costs (75,284) (108,148)
Goodwill - component 1 (807,823) (673,278)
Asset basis difference related to property and equipment —  (1,853,103)
Total deferred income tax liabilities (6,276,103) (8,486,882)
Valuation allowance (13,032,619) (10,774,128)
Net deferred tax liabilities
$ —  $ (57,153)
Schedule of Effective Income Tax Reconciliation
The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net (loss) income, compared to the income tax expense in the consolidated income statements:
  For the Years Ended December 31,
  2024 2023
  Amount Percent Amount Percent
Expected federal tax expense $ (309,702) 21.0  % $ 53,341  21.0  %
Meals and entertainment 30,460  (2.1) % 31,055  12.2  %
State tax provision (benefit), net of federal benefit 62,142  (4.2) % 69,794  27.5  %
Section 162(m) limitation on compensation 85,992  (5.8) % —  —  %
Other permanent differences
26,576  (1.8) % 15,664  6.2  %
Change in VA 9,521  (0.6) % 10,692,253  4,209.5  %
Stock compensation
(119,263) 8.1  % (2,030) (0.8) %
Change in tax rate
123,722  (8.4) % 171,007  67.3  %
Return to provision (25,025) 1.7  % (146,638) (57.7) %
Uncertain tax position - net impact 212,687  (14.4) % 138,585  54.6  %
Other adjustments
(34,968) 2.4  % 380  0.1  %
Expense $ 62,142  (4.2) % $ 11,023,411  4,339.9  %
Schedule of Uncertain Tax Positions Roll Forward
December 31,
2024 2023
Beginning balances
$ 1,175,766  $ 1,314,351 
Increases related to tax positions taken during a prior year —  — 
Decreases related to tax positions taken during a prior year —  — 
Increases related to tax positions taken during a current year —  — 
Decreases related to settlements with taxing authorities —  — 
Decreases related to expiration of the statute of limitations (227,584) (138,585)
Ending balances
$ 948,182  $ 1,175,766