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Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

10.   Income Taxes

The income tax provision (benefit) for income taxes in the consolidated statements of operations consists of the following:

​

​	​	​	​	​	​	​
​	​	Years Ended December 31,
($ in thousands)		2023			2022
Current:		​			​
Federal	​	$	22	​	$	300
State and local	​		83	​		234
Total current	​		105	​		534
​	​	​	​	​	​	​
Deferred:	​			​
Federal	​		727	​		(509)
State and local	​		380	​		(456)
Total deferred	​		1,107	​		(965)
Total provision (benefit)	​	$	1,212	​	$	(431)

​

The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate reflected in the income tax provision (benefit) shown in the consolidated statements of operations is as follows:

​

​	​	​	​	​	​
​	​	Years Ended December 31,			​
​		2023		2022
U.S. statutory federal rate		21.00	%	21.00	%
State and local rate, net of federal tax benefit		6.36		6.10	​
Stock compensation		(0.14)		(6.14)	​
Excess compensation deduction		(0.27)		(5.32)	​
Federal true-ups		0.18		(5.09)	​
Life insurance		(0.12)		(0.52)	​
Change in valuation allowance		(33.16)		—	​
Income tax (provision) benefit		(6.15)	%	10.03	%

​

​

The significant components of net deferred tax assets (liabilities) of the Company consist of the following:

​

​	​	​	​	​	​	​
​	​	December 31,
($ in thousands)		2023			2022
Deferred tax assets		​			​
Stock-based compensation	​	$	712	​	$	712
Federal, state and local net operating loss carryforwards	​		8,127	​		3,175
Accrued compensation and other accrued expenses	​		451	​		748
Allowance for doubtful accounts	​		231	​		—
Basis difference arising from discounted note payable	​		11	​		11
Charitable contribution carryover	​		1	​		—
Property and equipment	​		169	​		497
Interest expense	​		31	​		—
Total deferred tax assets	​	​	9,733	​	​	5,143
Valuation allowance	​	​	(6,537)	​	​	—
Total deferred tax assets, net of valuation allowance	​	​	3,196	​	​	5,143
​	​	​	​	​	​	​
Deferred tax liabilities	​	​	​	​	​	​
Basis difference arising from intangible assets of acquisition	​		(3,196)	​		(4,036)
Total deferred tax liabilities	​		(3,196)	​		(4,036)
​	​	​	​	​	​	​
Net deferred tax assets	​	$	—	​	$	1,107

​

As of December 31, 2023 and 2022, the Company had approximately $28.6 million and $10.9 million, respectively, of federal net operating loss carryforwards ("NOLs") available to offset future taxable income. The NOL as of December 31, 2017 of $0.3 million has an expiration period through 2037. The NOL generated during tax years beginning after December 31, 2017 of $28.3 million has an indefinite life and does not expire.

As of December 31, 2023 and 2022, management does not believe the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its consolidated financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its consolidated financial statements is necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year.

​

During the Current Year, the Company recognized a valuation allowance in order to reduce deferred tax assets to the amount expected to be realized. The change in the valuation allowance from December 31, 2022 to December 31, 2023 was approximately $6.5 million.

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- References

No definition available.

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- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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-Topic 946
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