XML 23 R16.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

10. Income Taxes

Our statutory income tax rate is anticipated to be approximately 26%. We had income tax expense of $743,461 and $539,283 for the six months ended June 30, 2024 and 2023, respectively, which was attributable to state tax obligations for states with no net operating loss carryforwards, federal income tax after anticipated utilization of all federal net operating loss carryforwards by year end, and other timing differences.

We compute income taxes using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes. Under the asset and liability method, we determine deferred income tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities and measure them using currently enacted tax rates and laws. We provide a valuation allowance to reduce the amount of deferred tax assets that, based on available evidence, is more likely than not to be realized. Realization of our deferred tax assets was not reasonably assured as of June 30, 2024 and December 31, 2023, and we had recorded a valuation allowance of $18,017,000 and $17,413,000, respectively, against deferred tax assets in excess of deferred tax liabilities in the accompanying condensed consolidated financial statements. As of June 30, 2024 and December 31, 2023, we had federal income tax net operating loss carryforwards of approximately $2,500,000 and $5,900,000, respectively, which expire at various dates ranging from 2034-2037.