v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
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, 2024 and 2023.  Income taxes for the year ended December 31, 2024, and 2023 are described below.

 

 

December 31

 

 

 

2024

 

 

2023

 

Current taxes

 

 

 

 

 

 

Federal

 

$325,172

 

 

$83,402

 

State

 

 

113,278

 

 

 

18,044

 

Deferred taxes

 

 

 

 

 

 

 

 

Federal

 

 

(13,000)

 

 

(556,000)

State

 

 

—

 

 

 

—

 

Provision for (benefit from) income taxes

 

$425,450

 

 

$(454,554)

 

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal year 2024 and 2023 is as follows:

 

 

 

2024

 

 

2023

 

Rate reconciliation:

 

 

 

 

 

 

Tax expense at U.S. statutory rate

 

$423,931

 

 

$(431,776)

Change in deferred tax rate

 

 

(91)

 

 

(1,866)

Prior year over / under accrual

 

 

4,923

 

 

 

93,702

 

Provision-to-return reconciliation

 

 

(1,417)

 

 

(110,457)

Other

 

 

(1,896)

 

 

(4,157)

Income tax provision

 

$425,450

 

 

$(454,554)

 

As of December 31, 2024 and 2023 we had a deferred tax asset of $770,000 and $757,000, 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, 2024 and 2023 were as follows:

 

 

December 31

 

 

 

2024

 

 

2023

 

Deferred tax components

 

 

 

 

 

 

Unrealized (gain) loss on marketable securities

 

$69,887

 

 

$343,886

 

Capital loss carryforward

 

 

345,256

 

 

 

—

 

Depreciation

 

 

1,265

 

 

 

1,619

 

R&D and foreign credits

 

 

40,820

 

 

 

40,820

 

Stock options

 

 

274,803

 

 

 

275,632

 

Acquisition costs

 

 

—

 

 

 

30,402

 

Accrued bonuses

 

 

39,780

 

 

 

66,500

 

Other

 

 

(1,811)

 

 

(1,859)

Net deferred tax asset

 

$770,000

 

 

$757,000