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Income taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income taxes

Note 10 – Income taxes

 

The provision for income taxes consists of the following:

        
   For the Years Ended December 31, 
   2024   2023 
Current:        
Federal  $3,371   $3,591 
State and local   1,512    1,719 
Total current   4,883    5,310 
Deferred   61    (28)
Provision for income taxes  $4,944   $5,282 

 

The following is a reconciliation of income tax expense computed at the U.S. federal statutory tax rate to income tax expense reported in the consolidated statement of operations:

                
   2024   2023 
   Amount   Percentage   Amount   Percentage 
Federal income tax at statutory rate  $2,933    21.0%   $3,496    21.0% 
State and local tax, net   737    5.3%    1,126    6.8% 
Other permanent differences   29    0.2%    17    0.1% 
Section 162m   1,074    7.7%    435    2.6% 
Stock based compensation   167    1.2%    203    1.2% 
Change in tax rates   2    0.0%    5    0.0% 
Other   2    0.0%    –    –% 
Provision for income taxes  $4,944    35.4%   $5,282    31.7% 

  

The tax effects of temporary differences giving rise to deferred income tax assets and liabilities were:

        
   December 31, 
   2024   2023 
Deferred tax liabilities attributable to:          
Accumulated depreciation and amortization  $(3,829)  $(3,519)
Unrealized gains   (467)   (469)
Total deferred tax liabilities   (4,296)   (3,988)
Deferred tax assets attributable to:          
Net operating losses   6    6 
Accrued compensation   454    403 
Incentive compensation   499    301 
Inventory   279    280 
Allowances for doubtful accounts and discounts   2    3 
Other   (6)   (6)
Total net deferred tax assets   1,234    987 
Net deferred tax liabilities  $(3,062)  $(3,001)

 

The following table details the Company’s tax attributes related to net operating losses for which it has recorded deferred tax assets.

                     
Tax Attributes   Gross Amount     Net Amount     Expiration Years  
State net operating losses   $ 116     $ 6     2035  
            $ 6        

 

Lifeway is subject to U.S. federal income tax as well as income tax in multiple state and city jurisdictions. With limited exceptions, Lifeway’s calendar year 2021 and subsequent federal and state tax years remain open by statute. As of December 31, 2024, the unrecognized tax benefit is $0.

 

The amount of interest and penalties recognized in the consolidated statements of operations was $0 during 2024 and 2023, respectively. The amount of accrued interest and penalties recognized in the consolidated balance sheets was $0 at December 31, 2024 and 2023, respectively.