INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following:

	For the Years Ended December 31,
	2024		2023		2022
Current tax provision (benefit)
Federal	$	(33,734)	$	33,734	$	1,448,000
State		7,893		(65,529)		(8,711,302)
Total current provision (benefit)		(25,841)		(31,795)		(7,263,302)
Deferred tax provision (benefit)
Federal		8,285,927		(1,855,875)		3,717,559
State		106,104		(17,491)		3,629,613
Total deferred tax provision (benefit)		8,392,031		(1,873,366)		7,347,172
Total income tax provision	$	8,366,190	$	(1,905,161)	$	83,870

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

Deferred taxes are provided for those items reported in different periods for income tax and financial reporting purposes.  The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:

	December 31,
	2024		2023
Deferred tax assets
Net operating loss carry forwards	$	8,466,565	$	4,654,612
Accrued expenses and reserves		647,654		782,233
Employee stock option expense		13,311		13,311
Inventories		345,926		299,276
Deferred income – TIA contract		13,495,321		14,742,111
Capital loss		269,651		188,270
Interest expense limitation		-		—
Deferred tax assets		23,238,428		20,679,814
Deferred tax liabilities
Unrealized gains/losses		(1,088,481)		1,194,734
Property, plant, and equipment		(13,046,294)		(13,199,805)
Deferred tax liabilities		(14,134,775)		(12,005,071)
Net deferred assets		9,103,653		8,674,743
Valuation allowance		(9,103,653)		(282,713)
Net deferred tax assets	$	0	$	8,392,030

*Certain totals may not reconcile due to rounding.

Schedule of reconciliation of the federal statutory corporate tax rate to the Company's effective tax rate

A reconciliation of the federal statutory corporate tax rate to the Company’s effective tax rate is as follows:

	December 31,
	2024		2023		2022
U.S. statutory federal tax rate	21.0		21.0	%	21.0	%
State tax, net of federal tax	(0.6)		0.8		1.0
Change in valuation allowance	(250.6)		—		5.5
Valuation Allowance	—		(0.2)		4
Stock options	—		—		10.8
Section 162(m); Limit on Compensation	(0.8)		(0.2)		30.9
State rate change	—		—		(75.1)
Return-to-provision and other	(6.7)		0.1		3.7
Effective tax rate	(237.7)	%	21.5	%	1.6	%