Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

The Company’s provision for income taxes is comprised of the following:

	Year Ending December 31,
	2021		2020
Current
Federal	$	1,084,000	$	(176,000	)
State and local		114,000		(82,000	)
Total Current		1,198,000		(258,000	)
Deferred
Federal	$	96,000	$	161,000
State and local		427,000		318,000
Total Deferred		523,000		479,000
Total Provision for income taxes	$	1,721,000	$	221,000

Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate

The Company’s effective tax rate differs from the U.S. federal statutory income tax rate of 21% for 2021 and 2020 as follows:

	Year Ending December 31,
	2021			2020
Federal statutory income tax rate		21.0	%		21.0	%
Tax amortization of intangible assets		(4.1	%)		(8.8	%)
Non-deductible fines and penalties		0.8	%		—
Share based compensation		1.0	%		—
Permanent differences		0.8	%		1.5	%
State and local taxes, net of federal benefit		5.6	%		2.5	%
Change in valuation allowance		—			(5.2	%)
Other		0.4	%		(4.1	%)
Effective tax rate		25.5	%		6.9	%

Schedule of Deferred Tax Assets (Liabilities)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	As of December 31,
	2021			2020
Deferred tax assets:
Net operating losses	$	5,437,000		$	6,043,000
Lease liabilities		749,000			722,000
Share-based compensation		—			61,000
Intangible assets		—			2,000
Investment in RISE		140,000			—
Accrued compensation		62,000			—
Other		13,000			—
Subtotal		6,401,000			6,828,000
Less: valuation allowance		(1,070,000	)		(1,070,000	)
Total Deferred tax assets	$	5,331,000		$	5,758,000
Deferred tax liabilities:
Fixed assets	$	(892,000	)	$	(901,000	)
Share-based compensation		(145,000	)		—
Total Deferred tax liabilities		(1,037,000	)		(901,000	)
Net Deferred tax assets	$	4,294,000		$	4,857,000

Schedule of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:

	Amount
Balance as of December 31, 2019	$	—
Additions for tax positions taken during current year		1,105,000
Additions for tax positions taken during prior year		—
Reductions for tax positions taken during prior years		—
Settlements		—
Expirations of statutes of limitations		—
Balance as of December 31, 2020	$	1,105,000
Additions for tax positions taken during current year		1,315,000
Additions for tax positions taken during prior year		—
Reductions for tax positions taken during prior years		(2,000	)
Settlements		—
Expirations of statutes of limitations		—
Balance as of December 31, 2021	$	2,418,000