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Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 13 – Income Taxes

 

For all periods presented, Empire’s effective tax rate is 0%. Other than the full year of 2022, Empire has generated net operating losses since inception, which would normally reflect a tax benefit in the unaudited interim condensed consolidated statements of operations and a deferred asset on the unaudited interim condensed consolidated balance sheets. However, because of the current uncertainty as to Empire’s ability to achieve sustained profitability, a valuation reserve has been established that offsets the amount of any tax benefit available for each period presented in the unaudited interim condensed consolidated statements of operations.

 

 

 

The following table presents a reconciliation of its effective income tax rate to the U.S. statutory income tax rate for the periods presented.

 

Schedule of reconciliation of effective income tax rate

   For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
   2024   2023   2024   2023 
   $   %   $   %   $   %   $   % 
                                         
Benefit at statutory rate   (764,319)   21.0%    (605,293)   21.0%    (2,520,962)   21.0%    (1,639,438)   21.0% 
State Taxes (net of federal impact)   (174,818)   4.8%    (138,056)   4.8%    (576,604)   4.8%    (374,979)   4.8% 
Nondeductible Expenses   37,648    -1.0%    (5,469)   0.2%    47,172    -0.4%    (1,529)   0.0% 
Stock Options Exercised   (4,615)   0.1%    (5,355)   0.2%    (135,242)   1.1%    (5,355)   0.1% 
Valuation Allowance   906,104    -24.9%    619,453    -21.5%    3,185,636    -26.5%    1,886,581    -24.2% 
Income tax benefit   —    0.0%    (134,720)   4.7%    —    0.0%    (134,720)   1.7%