v3.24.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2023
INCOME TAXES  
INCOME TAXES

NOTE 12 — INCOME TAXES

 

Presently, we are a “C-corporation” for tax purposes and have booked an income tax provision for the years ended December 31, 2023 and 2022.  Income taxes for the year ended December 31, 2023, and 2022 are described below.

 

 

December 31

 

 

 

2023

 

 

2022

 

Current taxes

 

 

 

 

 

 

Federal

 

$83,402

 

 

$268,803

 

State

 

 

18,044

 

 

 

(13,155)

Deferred taxes

 

 

 

 

 

 

 

 

Federal

 

 

(556,000)

 

 

(246,000)

State

 

 

—

 

 

 

—

 

Provision for (benefit from) income taxes

 

$(454,554)

 

$9,648

 

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal year 2023 and 2022 is as follows:

 

 

 

2023

 

 

2022

 

Rate reconciliation:

 

 

 

 

 

 

Tax expense at U.S. statutory rate

 

$(431,776)

 

$97,503

 

Change in deferred tax rate

 

 

(1,866)

 

 

450

 

Prior year over / under accrual

 

 

93,702

 

 

 

 —

 

Provision-to-return reconciliation

 

 

(110,457)

 

 

(18,536)

Temporary differences

 

 

—

 

 

 

(71,856)

Other

 

 

(4,157)

 

 

2,087

 

Income tax provision

 

$(454,554)

 

$9,648

 

 

As of December 31, 2023 and 2022 we had a deferred tax asset of $757,000 and $201,000, 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, 2023 and 2022 were as follows:

 

 

December 31

 

 

 

2023

 

 

2022

 

Deferred tax components

 

 

 

 

 

 

Unrealized (gain) loss on marketable securities

 

$343,886

 

 

$156,590

 

Depreciation

 

 

1,619

 

 

 

1,781

 

R&D and foreign credits

 

 

40,820

 

 

 

43,828

 

Lease liability

 

 

—

 

 

 

(39)

Stock options

 

 

275,632

 

 

 

—

 

Acquisition costs

 

 

30,402

 

 

 

 

 

Accrued bonuses

 

 

66,500

 

 

 

—

 

Other

 

 

(1,859)

 

 

(1,160)

Net deferred tax asset

 

$757,000

 

 

$201,000