Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes

Income Taxes

4. INCOME TAXES

Income tax expense is comprised of the following (in thousands):

	December 31,
	2021			2020
Federal:
Current	$	1,574		$	212
Deferred		(382	)		416
		1,192			628
State:
Current		456			340
Deferred		(124	)		159
		332			499
	$	1,524		$	1,127

The provision for income taxes differs from the amount determined by applying the federal statutory tax rate to pre-tax income as a result of the following (in thousands):

	December 31,
	2021					2020
Income taxes at statutory rate	$	1,910		21.0	%	$	796		21.0	%
Increase (decrease) in taxes resulting from:
State income taxes, net of federal benefit		267		2.9	%		443		11.7	%
Stock Compensation		(63	)	(0.7	)%		—		—	%
Deferred true-ups		17		0.2	%		10		0.3	%
Provision-to-return		5		0.1	%		(33	)	(0.9	)%
CARES Act Benefit		(4	)	(0.1	)%		(79	)	(2.1	)%
PPP Loan Forgiveness		(565	)	(6.2	)%		—		—	%
Other		(43	)	(0.4	)%		(10	)	(0.3	)%
	$	1,524		16.8	%	$	1,127		29.7	%

Deferred tax assets (liabilities) are as follows (in thousands):

	December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	51		$	26
Allowance for doubtful accounts		109			100
Accrued vacation		61			60
Deferred buy-back asset		942			1,259
Deferred income		774			314
Right-of-use asset		53			75
Other		102			80
Gross deferred tax assets		2,092			1,914
Deferred tax liabilities:
Retainage		(284	)		(424	)
Deferred buy-back obligation		(846	)		(1,069	)
Fixed assets		(2,770	)		(2,685	)
Prepaid expenses		(72	)		(114	)
Amortization - intangibles		(16	)		(8	)
Realized gain loss		(6	)		—
Lease liability		(53	)		(75	)
Gross deferred tax liabilities		(4,047	)		(4,375	)
Valuation allowance		—			—
Net deferred tax liability	$	(1,955	)	$	(2,461	)

As of December 31, 2021 and 2020, the Company had approximately $2,361 and $2,611, respectively, of state NOL’s available to offset future state taxable income. The state NOL’s begin expiring at various times between 2028 and 2037.