INCOME TAXES

12 Months Ended

Dec. 31, 2024

INCOME TAXES

INCOME TAXES

NOTE 18 — INCOME TAXES

The Company’s income from continuing operations before income tax expense for Fiscal 2024 and Fiscal 2023 was $8,749,180 and $9,021,370, respectively, and was derived entirely from domestic operations.

The following table summarizes the components of income tax expense, disaggregated by current and deferred, and by federal and state:

	Year Ended
	December 31,
	2024		2023
Current
Federal	$	1,888,771	$	164,376
State and local		191,544		175,318
Sub-total		2,080,315		339,694
Deferred
Federal	$	(88,194)	$	1,534,224
Sub-total		(88,194)		1,534,224
	$	1,992,121	$	1,873,918

The following table provides a reconciliation of the Company’s federal tax rate to its effective tax rate:

	Year Ended December 31,
	2024				2023
Income tax expense at the federal tax rate	$	1,837,328	21.00	%	$	1,894,488	21.0	%
State and local taxes, net of federal income tax effect(1)		151,320	1.8	%		137,915	1.5	%
Nontaxable or nondeductible items		8,415	0.1	%		9,178	0.1	%
Other		(4,942)	(0.1)	%		(167,663)	(1.9)	%
	$	1,992,121	22.8	%	$	1,873,918	20.8	%

(1) State taxes, net of federal benefit are predominately due to activity in Texas as the majority of business activity of the Company is from that state.

The following table summarizes income taxes paid, net of any refunds received for the years ended December 31, 2024 and 2023:

	Year Ended
	December 31,
	2024		2023
Federal	$	2,090,000	$	—
State and local		180,708		197,561
	$	2,270,708	$	197,561

The following table summarizes income taxes paid, net of any refunds received, disaggregated by individual jurisdictions in which income taxes paid, net of refunds received is equal to or greater than five percent of total income taxes paid, for the years ended December 31, 2024 and 2023:

	Year Ended
	December 31,
	2024		2023
Federal	$	2,090,000	$	—
Texas		123,000		142,000
Arizona(1)		30,000		50,000
	$	2,243,000	$	192,000

(1) Taxes paid to the state of Arizona exceeded the five percent threshold for the year ended December 31, 2023, but not for the year ended December 31, 2024.

The following chart provides detail of the significant temporary differences giving rise to deferred tax assets and liabilities:

	As of
	December 31, 2024		December 31, 2023
Deferred Tax Asset (Liability)
Inventories	$	57,015	$	83,963
Contingencies and accruals		128,673		100,910
Property and equipment		(146,109)		(226,446)
Goodwill and intangibles		3,111		(3,931)
Other		6,836		6,836
	$	49,526	$	(38,668)

No valuation allowance was recorded against the net deferred tax asset (liability) balance as of December 31, 2024 and December 31, 2023.