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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

12) Income Taxes

 

The Company’s overall effective tax rate for the three month periods ended September 30, 2025 and 2024 was 23.0% and 22.2%, respectively, which resulted in a provision for income taxes of $2,337,926 and $3,383,238, respectively, and for the nine month periods ended September 30, 2025 and 2024 was 22.4% and 22.3%, respectively, which resulted in a provision for income taxes of $5,400,792 and $7,646,071, respectively. The Company’s effective tax rate is higher than the U.S. federal statutory rate of 21% due to, among other factors, state taxes as offset by certain state income tax benefits, along with certain permanent tax adjustments such as meals and entertainment and stock-based compensation. The increase in the effective tax rate when compared to the prior year was primarily due to certain permanent tax adjustments that, as a ratio of lower pre-tax book income, are higher than when compared to the prior year.

 

Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although the Company believes its tax estimates are reasonable, the Company can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in its historical income tax provisions and accruals.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes provisions that allow for the immediate expensing of domestic research and development expenses, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. The Company continues to evaluate the impact the new legislation will have on its estimated annual effective tax rate and cash tax position; however, the Company does not expect a material impact to its estimated effective tax rate in 2025.