Income Tax (Benefit) Expense by Jurisdiction |
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Year Ended December 31 |
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2023 |
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2022 |
Current year income taxes : |
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Federal |
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$ |
17,622 |
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$ |
— |
State |
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59,975 |
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12,237 |
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77,597 |
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12,237 |
Deferred income taxes: |
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Federal |
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$ |
41,579 |
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$ |
— |
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41,579 |
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— |
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Income tax expense |
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$ |
119,176 |
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$ |
12,237 |
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Schedule of Deferred Tax Assets and Liabilities |
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2023 |
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2022 |
Deferred tax assets: |
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Allowance for doubtful accounts |
$ |
24,266 |
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$ |
47,353 |
Inventory |
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32,768 |
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30,528 |
Accrued and prepaid expenses |
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131,692 |
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184,418 |
Lease liability |
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1,183,679 |
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1,055,975 |
Domestic net operating loss carry-forward |
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5,308,336 |
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4,612,193 |
Other stock compensation |
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214,248 |
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82,973 |
Intangible assets |
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214,600 |
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— |
Foreign net operating loss carry-forwards and credits |
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1,451,985 |
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1,451,985 |
Federal and state credits |
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357,430 |
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366,964 |
Other |
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1,378,936 |
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786,904 |
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Gross deferred tax assets |
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10,297,940 |
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8,619,293 |
Valuation allowance |
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(8,970,982) |
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(6,560,649) |
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Net deferred tax assets |
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1,326,958 |
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2,058,644 |
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Deferred tax liabilities |
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Depreciation |
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(203,210) |
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(154,507) |
Intangible assets |
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— |
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(853,130) |
Lease right-of-use asset |
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(1,165,327) |
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(1,051,007) |
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Net deferred tax liability |
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(1,368,537) |
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(2,058,644) |
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Total net deferred tax liability |
$ |
(41,579) |
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$ |
— |
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Summary of Uncertain Tax Positions |
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2023 |
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2022 |
Uncertain tax positions – January 1 |
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$ |
75,347 |
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$ |
— |
Opening balance sheet |
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— |
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112,850 |
Gross decreases - current period tax positions |
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(32,319) |
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(37,503) |
Uncertain tax positions – December 31, 2023 |
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$ |
43,028 |
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$ |
75,347 |
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