INCOME TAXES

12 Months Ended

Dec. 31, 2025

INCOME TAXES

INCOME TAXES

NOTE 17 — INCOME TAXES

The Company’s income from continuing operations before income tax expense for Fiscal 2025 and Fiscal 2024 was $18,723,218 and $8,749,180, 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,
	2025		2024
Current
Federal	$	3,648,001	$	1,888,771
State and local		281,332		191,544
Sub-total		3,929,333		2,080,315
Deferred
Federal	$	196,907	$	(88,194)
Sub-total		196,907		(88,194)
	$	4,126,240	$	1,992,121

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

	Year Ended December 31,
	2025				2024
Income tax expense at the federal tax rate	$	3,931,876	21.0	%	$	1,837,328	21.0	%
State and local taxes, net of federal income tax effect(1)		222,253	1.2	%		151,320	1.7	%
Foreign derived intangible income		(44,231)	(0.2)	%		—	0.0	%
Nontaxable or nondeductible items		9,648	0.1	%		8,415	0.1	%
Other		6,694	0.0	%		(4,942)	(0.1)	%
	$	4,126,240	22.0	%	$	1,992,121	22.8	%

(1) State taxes, net of federal benefit, are predominantly due to activity in Texas, as the majority of the 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, 2025 and 2024:

	Year Ended
	December 31,
	2025		2024
Federal	$	2,570,000	$	2,090,000
State and local		264,505		180,708
	$	2,834,505	$	2,270,708

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, are equal to or greater than five percent of total income taxes paid, for the years ended December 31, 2025 and 2024:

	Year Ended
	December 31,
	2025		2024
Federal	$	2,570,000	$	2,090,000
Texas (1)		—		123,000
Arizona(1)		—		30,000
	$	2,570,000	$	2,243,000

(1) Taxes paid to the state of Texas and Arizona exceeded the five percent threshold for the year ended December 31, 2024, but not for the year ended December 31, 2025.

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

	As of
	December 31, 2025		December 31, 2024
Deferred Tax Asset (Liability)
Inventories	$	19,878	$	57,015
Contingencies and accruals		167,259		128,673
Property and equipment		(386,007)		(146,109)
Goodwill and intangibles		4,148		3,111
Other		47,341		6,836
	$	(147,381)	$	49,526

No valuation allowance was recorded against the net deferred tax asset (liability) balance as of December 31, 2025 and December 31, 2024.