INCOME TAXES

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10 – INCOME TAXES

The Company’s income tax expense (benefit) differs from the amounts computed by applying the federal income tax rate of 21% to income (loss) before federal income tax expense. These differences, historically, are primarily caused by state income taxes, net of federal tax benefit, income that is not taxable for federal and state income tax purposes, expenses that are not deductible for tax purposes, and tax adjustments related to income tax returns.

Specifically, for the nine months ended September 30, 2024, these differences reflect: (i) a non-taxable $5.0 million preliminary bargain purchase gain in connection with the Merger; and (ii) certain non-deductible merger costs, including success-based fees for completing the Merger of $340,000.

During the three months ended September 30, 2024, the Company recorded an income tax provision of $477,000, reflecting an effective tax rate of 23.3%. During the nine months ended September 30, 2024, the Company recorded an income tax benefit of $1.2 million and pre-tax income of $365,000.

During the three and nine months ended September 30, 2023, the Company recorded income tax benefits of $603,000 and $426,000, respectively, reflecting an effective tax rate of 21.0% and 19.8%, respectively. The relatively lower income tax rates during these 2023 periods reflect a favorable adjustment to the year-to-date tax accrual.