v3.23.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2022
INCOME TAXES  
INCOME TAXES

NOTE 11 — INCOME TAXES

 

Presently, we are a “C-corporation” for tax purposes and have booked an income tax provision for the years ended December 31, 2022 and 2021. Income taxes as of December 31, 2022, and 2021 are described below.

  

 

 

December 31

 

 

 

2022

 

 

2021

 

Current taxes

 

 

 

 

 

 

Federal

 

$406,700

 

 

$909,530

 

State

 

 

18,169

 

 

 

358,168

 

Deferred taxes

 

 

 

 

 

 

 

 

Federal

 

 

(246,000)

 

 

(213,000)

State

 

 

—

 

 

 

—

 

Provision for income taxes

 

$178,869

 

 

$1,054,698

 

 

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal year 2022 and 2021 is as follows:

  

 

 

2022

 

 

2021

 

Rate reconciliation:

 

 

 

 

 

 

Tax expense at U.S. statutory rate

 

$185,887

 

 

$1,080,213

 

Change in deferred tax rate

 

 

450

 

 

(8,796)

Provision-to-return reconciliation

 

 

(18,536)

 

 

(14,743)

Other

 

 

11,068

 

 

 

(1,976)

Income tax provision

 

$178,869

 

 

$1,054,698

 

As of December 31, 2022 and 2021 we had a deferred tax asset of $201,000 and a deferred tax liability of $45,000, respectively. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows:

   

 

 

December 31

 

 

 

2022

 

 

2021

 

Deferred tax components

 

 

 

 

 

 

Unrealized (gain) loss on marketable securities

 

$156,550

 

 

$(46,660)

Depreciation

 

 

1,781

 

 

 

2,458

 

R&D and foreign credits

 

 

43,828

 

 

 

—

 

Lease liability

 

 

(39)

 

 

—

 

Other

 

 

(1,120)

 

 

(798)

Net deferred tax asset (liability)

 

$201,000

 

 

$(45,000)