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Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11 — Income taxes

The source of pre-tax income and the components of income tax expense are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

​

June 30, 

​

June 30, 

​

​

    

2024

    

2023

    

2024

    

2023

 

​

​

USD

​

USD

​

USD

​

USD

​

Income components

​

​

​

​

​

​

​

​

​

​

​

​

​

United States

​

$

(1,200,966)

​

$

36,944

​

$

(1,840,931)

​

$

(401,898)

​

Outside United States

​

 

879,136

​

 

242,983

​

 

1,003,531

​

 

411,079

​

Total pre-tax (loss) income

​

$

(321,830)

​

$

279,927

​

$

(837,400)

​

$

9,181

​

Provision for income taxes

​

 

  

​

 

  

​

 

  

​

 

  

​

Current

​

 

  

​

 

  

​

 

  

​

 

  

​

Federal

​

$

34,488

​

$

11,165

​

$

538

​

$

10,624

​

State

​

 

12,554

​

 

5,887

​

 

8,425

​

 

3,133

​

Foreign

​

 

220,834

​

 

164,709

​

 

329,745

​

 

300,797

​

​

​

 

267,876

​

 

181,761

​

 

338,708

​

 

314,554

​

Deferred

​

 

  

​

 

  

​

 

  

​

 

  

​

Federal

​

 

(379,397)

​

 

7,888

​

 

(417,347)

​

 

(92,675)

​

State

​

 

(42,821)

​

 

5,785

​

 

(53,414)

​

 

6,184

​

Foreign

​

 

(144,073)

​

 

(3,988)

​

 

(144,073)

​

 

(3,988)

​

​

​

 

(566,291)

​

 

9,685

​

 

(614,834)

​

 

(90,479)

​

Total provision for income taxes

​

$

(298,415)

​

$

191,446

​

$

(276,126)

​

$

224,075

​

 

 

​

Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows:

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended

 

​

​

​

June 30, 

 

​

​

    

2024

    

2023

 

​

Federal statutory rate

​

21.0

%  

21.0

%

​

Increase (decrease) in tax rate resulting from:

​

  

 

  

​

​

State and local income taxes, net of federal benefit

​

4.3

 

(5.3)

​

​

Foreign operations

​

(1.6)

 

84.0

​

​

Permanent items

​

(10.6)

 

2.5

​

​

Deferred adjustments

​

17.9

 

9.6

​

​

Others

​

2.0

 

(0.9)

​

​

Effective tax rate

​

33.0

%  

110.9

%

​

 

​

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:

​

​

​

​

​

​

​

​

​

    

As of

    

As of

​

​

June 30, 2024

​

December 31, 2023

​

​

USD

​

USD

​

​

​

​

​

Deferred tax assets

 

​

  

 

​

  

Allowance for credit losses

​

$

52,163

​

$

58,476

Other reserve

​

 

57,857

​

 

61,371

Accrued expenses

​

 

157,981

​

 

143,823

Lease liability

​

 

1,619,063

​

 

1,769,328

Charitable contributions

​

 

8,187

​

 

8,181

Business interest limitation

​

 

378,489

​

 

242,862

Net operating loss – federal

​

 

623,342

​

 

310,099

Net operating loss – state

​

 

65,184

​

 

27,337

Other

​

 

195,104

​

 

66,063

Total deferred tax assets

​

 

3,157,370

​

 

2,687,540

Less: valuation allowance

​

 

—

​

 

—

Net deferred tax assets

​

 

3,157,370

​

 

2,687,540

Deferred tax liabilities

​

 

  

​

 

  

Fixed assets

​

 

1,561,953

​

 

1,728,364

Intangibles

​

 

(188,250)

​

 

(209,657)

Total deferred tax liabilities

​

 

1,373,703

​

 

1,518,707

Deferred tax assets, net of deferred tax liabilities

​

$

1,783,667

​

$

1,168,833

 

​

The deferred tax assets related to the Company’s net operating losses of $4,040,249 (Federal $2,968,286 and States $1,071,963) and $1,836,077 (Federal $1,476,655 and States $359,422) as of June 30, 2024 and December 31, 2023, respectively. The Federal Net Operating losses have no expiration date. The States Net Operating losses have either 20 years or no expiration date. The Company had no material unrecognized tax benefits at June 30, 2024 or, December 31, 2023. The Company has not taken any tax positions for which it is reasonably possible that unrecognized tax benefits will significantly increase within the next 12 months.

Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares

repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. There was no material impact of the IR Act on the Company’s consolidated financial statements.