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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Expense | The Company’s provision for income taxes is comprised of the following:
|  | Year Ending December 31, |
|  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |
Federal |  | $ | 1,084,000 |  |  | $ | (176,000 | )
State and local |  |  | 114,000 |  |  |  | (82,000 | )
Total Current |  |  | 1,198,000 |  |  |  | (258,000 | )
Deferred |  |  |  |  |  |  |  |
Federal |  | $ | 96,000 |  |  | $ | 161,000 |
State and local |  |  | 427,000 |  |  |  | 318,000 |
Total Deferred |  |  | 523,000 |  |  |  | 479,000 |
Total Provision for income taxes |  | $ | 1,721,000 |  |  | $ | 221,000 |
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate | The Company’s effective tax rate differs from the U.S. federal statutory income tax rate of 21% for 2021 and 2020 as follows:
|  | Year Ending December 31, |
|  | 2021 |  |  | 2020 |
Federal statutory income tax rate |  |  | 21.0 | % |  |  | 21.0 | %
Tax amortization of intangible assets |  |  | (4.1 | %) |  |  | (8.8 | %)
Non-deductible fines and penalties |  |  | 0.8 | % |  |  | — |
Share based compensation |  |  | 1.0 | % |  |  | — |
Permanent differences |  |  | 0.8 | % |  |  | 1.5 | %
State and local taxes, net of federal benefit |  |  | 5.6 | % |  |  | 2.5 | %
Change in valuation allowance |  |  | — |  |  |  | (5.2 | %)
Other |  |  | 0.4 | % |  |  | (4.1 | %)
Effective tax rate |  |  | 25.5 | % |  |  | 6.9 | %
Schedule of Deferred Tax Assets (Liabilities) | 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 the Company’s deferred tax assets and liabilities are as follows:
|  | As of December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 5,437,000 |  |  | $ | 6,043,000 |
Lease liabilities |  |  | 749,000 |  |  |  | 722,000 |
Share-based compensation |  |  | — |  |  |  | 61,000 |
Intangible assets |  |  | — |  |  |  | 2,000 |
Investment in RISE |  |  | 140,000 |  |  |  | — |
Accrued compensation |  |  | 62,000 |  |  |  | — |
Other |  |  | 13,000 |  |  |  | — |
Subtotal |  |  | 6,401,000 |  |  |  | 6,828,000 |
Less: valuation allowance |  |  | (1,070,000 | ) |  |  | (1,070,000 | )
Total Deferred tax assets |  | $ | 5,331,000 |  |  | $ | 5,758,000 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  | $ | (892,000 | ) |  | $ | (901,000 | )
Share-based compensation |  |  | (145,000 | ) |  |  | — |
Total Deferred tax liabilities |  |  | (1,037,000 | ) |  |  | (901,000 | )
Net Deferred tax assets |  | $ | 4,294,000 |  |  | $ | 4,857,000 |
Schedule of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:
|  | Amount |
Balance as of December 31, 2019 |  | $ | — |
Additions for tax positions taken during current year |  |  | 1,105,000 |
Additions for tax positions taken during prior year |  |  | — |
Reductions for tax positions taken during prior years |  |  | — |
Settlements |  |  | — |
Expirations of statutes of limitations |  |  | — |
Balance as of December 31, 2020 |  | $ | 1,105,000 |
Additions for tax positions taken during current year |  |  | 1,315,000 |
Additions for tax positions taken during prior year |  |  | — |
Reductions for tax positions taken during prior years |  |  | (2,000 | )
Settlements |  |  | — |
Expirations of statutes of limitations |  |  | — |
Balance as of December 31, 2021 |  | $ | 2,418,000 |

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