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INCOME TAXES
 3 Months Ended
Jun. 30, 2023
INCOME TAXES  
INCOME TAXES

NOTE 4 – INCOME TAXES

The Company accounts for income taxes under ASC 740, Income Taxes. The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. The Company recorded income tax benefit of ($146,430) and ($173,714) for the three months ended June 30, 2023 and 2022, respectively. The Company’s effective tax rate for the three months ended June 30, 2023 and 2022 was 21.7% and 25.7%, respectively.

The valuation allowance on deferred tax assets was approximately $2.1 million at June 30, 2023. We believe that it is more likely than not that the benefit from certain state net operating losses, or “NOLs”, carryforwards and other deferred tax assets will not be realized. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, the Company could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in the Company’s effective tax rate.

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