Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provisions

The provision for income taxes for the year ended December 31, 2021 and 2020, respectively, consisted of:

	Year Ended December 31,
	2021		2020
	(in thousands)
Current
Federal	$	4,504	$	109
State	1,068		1,212
	5,572		1,321
Deferred
Federal	(576)		4,172
State	93		(234)
	(483)		3,938
Provision for income taxes	$	5,089	$	5,259

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets (liabilities), calculated using effective tax rates is as follows:

	December 31, 2021		December 31, 2020
	(in thousands)
Deferred tax assets:
State taxes	$	257	$	237
Reserves	537		590
Accruals & deferred expenses	188		132
Tenant improvement allowance	1,216		1,336
R&D credit	44		45
Section 263A	1,196		993
Government grant	311		235
Stock based compensation	267		—
Total deferred tax assets	4,016		3,568
Deferred tax liabilities:
Fixed assets – depreciation	(9,518)		(9,613)
Investment in Global Wells Investment Group	(132)		(72)
Total deferred tax liabilities	(9,650)		(9,685)
Net deferred tax liability	$	(5,634)	$	(6,117)

Schedule of Reconciliation of Income Taxes

Reconciliation of income taxes are as follows from statutory rate of 21% to the effective tax rate for the year ended December 31, 2021 and 2020, respectively:

	Year Ended December 31,
	2021		2020
	(in thousands)
Income tax computed at the federal statutory rate	$	5,780	$	4,608
State taxes, net of federal tax benefits	1,055		939
Noncontrolling Interest -Income not subject to tax	(349)		178
Government forgiveness of debt	(1,050)		—
Permanent items	201		100
R&D Credit	(239)		(295)
Excess tax benefit from stock based compensation	(237)		—
Other	(72)		(271)
Provision for income taxes	$	5,089	$	5,259