Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of income tax provisions

The provision for income taxes for the years ended December 31, 2022 and 2021, respectively, consisted of:

	Year Ended December 31,
	2022		2021
	(in thousands)
Current
Federal	$	6,291	$	4,504
State	863		1,068
	7,154		5,572
Deferred
Federal	(502)		(576)
State	24		93
	(478)		(483)
Provision for income taxes	$	6,676	$	5,089

Schedule of deferred tax assets and liabilities

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

	December 31, 2022		December 31, 2021
	(in thousands)
Deferred tax assets:
State taxes	$	252	$	257
Reserves	825		537
Accruals & deferred expenses	66		188
Tenant improvement allowance	—		1,216
R&D credit	43		44
Inventory	1,042		1,196
Government grant	343		311
Stock based compensation	573		267
Capitalized research and development costs	1,043		—
Operating lease liabilities	8,452		—
Total deferred tax assets	12,639		4,016
Deferred tax liabilities:
Fixed assets – depreciation	(10,350)		(9,518)
Investment in Global Wells Investment Group	(172)		(132)
Operating ROU asset	(7,273)		—
Total deferred tax liabilities	(17,795)		(9,650)
Net deferred tax liability	$	(5,156)	$	(5,634)

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 years ended December 31, 2022 and 2021, respectively:

	December 31, 2022		December 31, 2021
	(in thousands)
Income tax computed at the federal statutory rate	$	6,828	$	5,780
State taxes, net of federal tax benefits	1,101		1,055
Noncontrolling Interest - Income not subject to tax	(460)		(349)
Government forgiveness of debt	—		(1,050)
Permanent items	31		201
Excess tax benefit from stock based compensation	(89)		(237)
Research and development credit	(455)		(239)
Other	(280)		(72)
Provision for income taxes	$	6,676	$	5,089