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Note 12 - Income Tax | 12 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 12 – Income Tax The provision for income taxes is comprised of the following:
|  | December 31, |  |  | December 31, |
|  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |  |  |
Federal |  | $ | 2,032,751 |  |  | $ | 1,812,710 |
State |  |  | 971,936 |  |  |  | 696,154 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | (2,045,199 | ) |  |  | (1,246,828 | )
State |  |  | (321,424 | ) |  |  | (520,998 | )
Provision for income taxes |  | $ | 638,064 |  |  | $ | 741,038 |
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 taxes are as follows:
|  | December 31, |  |  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets |  |  |  |  |  |  |  |
Workers' compensation claims liability |  | $ | 1,517,396 |  |  | $ | 1,131,695 |
Depreciation/amortization |  |  | - |  |  |  | 205,987 |
Bad debt reserve |  |  | 6,385 |  |  |  | 18,984 |
Accrued vacation |  |  | 43,854 |  |  |  | 33,956 |
Impairment of notes receivable |  |  | 463,949 |  |  |  | 394,674 |
Stock based compensation |  |  | 144,666 |  |  |  | 182,385 |
Accrued compensation |  |  | 261,417 |  |  |  | - |
Net operating loss carryforward |  |  | 228,289 |  |  |  | - |
Total deferred tax asset |  |  | 2,665,956 |  |  |  | 1,967,681 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Depreciation/amortization |  |  | (2,208,041 | ) |  |  | - |
Cash to Accrual - 481 Adjustment |  |  | (930,861 | ) |  |  | (1,888,302 | )
Total deferred tax liabilities |  |  | (3,138,902 | ) |  |  | (1,888,302 | )
Total deferred taxes, net |  | $ | (472,946 | ) |  | $ | 79,379 |
At December 31, 2021, the Company has a federal net operating loss carry-forward of approximately $860,000 available to offset future federal taxable income. The federal net operating loss may be carried forward indefinitely, however, utilization of future net operating losses may be limited due to ownership changes under applicable sections of the Internal Revenue Code. Management estimates that our effective tax rates was approximately 5.1% for 2021. The items accounting for the difference between income taxes computed at the statutory federal income tax rate and the income taxes reported on the statements of income are as follows:
|  | December 31, 2021 |  |  | December 31, 2020 |
Income tax expense based on statutory rate |  | $ | 2,622,480 |  |  |  | 21.0 | % |  | $ | 1,281,095 |  |  |  | 21.0 | %
Bargain purchase gain |  |  | (1,180,512 | ) |  |  | (9.5 | )% |  |  | 4,233 |  |  |  | 0.1 | %
Non-deductible executive compensation |  |  | 203,597 |  |  |  | 1.6 | % |  |  | - |  |  |  | 0.0 | %
Stock based compensation |  |  | (154,423 | ) |  |  | (1.2 | )% |  |  | - |  |  |  | 0.0 | %
State income taxes expense net of federal taxes |  |  | 446,422 |  |  |  | 3.6 | % |  |  | 138,375 |  |  |  | 2.3 | %
WOTC |  |  | (1,204,581 | ) |  |  | (9.6 | )% |  |  | (712,891 | ) |  |  | (11.7 | )%
Other |  |  | (94,919 | ) |  |  | (0.8 | )% |  |  | 30,226 |  |  |  | (0.5 | )%
Total taxes on income |  | $ | 638,064 |  |  |  | 5.1 | % |  | $ | 741,038 |  |  |  | 11.2 | %
U.S. federal income tax returns after 2017 remain open to examination. Generally, state income tax returns after 2016 remain open to examination. No income tax returns are currently under examination. As of December 31, 2021, and December 31, 2020, the Company does not have any unrecognized tax benefits, and continues to monitor its current and prior tax positions for any changes.

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