XML 38 R22.htm IDEA: XBRL DOCUMENT v3.25.1
Note 13 - Income Tax
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 13 – Income Tax

 

The provision for income taxes is comprised of the following:

 

  

December 31,

  

December 31,

 

(in thousands)

  2024   2023 

Current taxes

        

Federal

 $1,418  $1,080 

State

  551   614 

Total current taxes

  1,969   1,694 

Deferred taxes

        

Federal

  (1,479)  (332)

State

  (269)  (17)

Total deferred taxes

  (1,748)  (349)

Provision for income taxes

 $221  $1,345 

 

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,

 

(in thousands)

  2024   2023 

Deferred tax assets

        

Workers' compensation claims liability

  1,537  $1,578 

Bad debt reserve

  86   49 

Accrued vacation

  89   80 

Impairment of notes receivable

  191   153 

Stock based compensation

  346   92 

Net operating loss carryforward

  48   92 

Other

  38   40 

Total deferred tax asset

  2,335   2,084 

Deferred tax liabilities

        

Depreciation and amortization

  (214)  (1,702)

Deferred gain on installment sale

  (48)  (57)

Total deferred tax liabilities

  (262)  (1,759)

Total deferred taxes, net

 $2,073  $325 

 

At December 31, 2023, the Company has a federal net operating loss carry-forward of approximately $209 thousand that was utilized in 2024.

 

Our effective tax rates were approximately 5.3% and 17.3% for 2024 and 2023, respectively. 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:

 

(in thousands except percentages)

 December 31, 2024 December 31, 2023

Income tax expense based on statutory rate

 $871   21.0% $1,634   21.0%

Non-deductible executive compensation

  55   1.3%  142   1.8%

Stock based compensation

  -   0.0%  (77)  (1.0)%

State income taxes expense net of federal taxes

  166   4.0%  468   6.0%

WOTC

  (884)  (21.3)%  (925)  (11.9)%

Other

  13   0.3%  103   1.3%

Total taxes on income

 $221   5.3% $1,345   17.3%

 

U.S. federal income tax returns after 2021 remain open to examination. Generally, state income tax returns after 2020 remain open to examination. No income tax returns are currently under examination. As of December 31, 2024, and December 31, 2023, the Company does not have any unrecognized tax benefits, and continues to monitor its current and prior tax positions for any changes.