v3.25.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 7 - INCOME TAXES

 

Income tax expense (benefit) for the years ended December 31, 2024 and 2023 are comprised of the following:

 

   2024   2023 
Current federal income tax  $-   $- 
Current state income tax   -    14 
Deferred income tax (benefit)   -    - 
Income tax expense (benefit)  $-   $14 

 

Significant components of the Company’s deferred income tax assets (liabilities) are as follows at

 

   2024   2023 
   December 31, 
   2024   2023 
Deferred tax assets (liabilities):          
Employee accruals  $39   $97 
Cash to accrual   -    - 
Accrued workers’ compensation and other   1    3 
State deduction   -    - 
Sec. 163(j) interest limitation   -    - 
Federal and State net operating loss carry forwards   605    401 
Other   1    1 
Deferred tax liabilities:          
Intangibles   12    13 
Fixed assets   (5)   (5)
Deferred income taxes, net   653    510 
Valuation allowance   (653)   (510)
Deferred tax assets (liabilities)  $-   $- 

 

The income tax provision, reconciled to the tax computed at the statutory federal rate, is as follows:

 

 

RELIABILITY INCORPORATED AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands)

 

   December 31, 
   2024   2023 
Tax expense at federal statutory rate  $(125)   21.0%  $(147)   21.0%
State income taxes, net   (27)   4.6%   (33)   4.8%
Permanent Differences   1    -0.1%   2    -0.2%
                     
Effect of deferred rate change   6    -1.1%   15    -2.2%
Historical Adjustments   2    -0.3%   28    -4.0%
Valuation allowance   143    -24.1%   135    -19.4%
Other, net   -    0.0%   14    2.0%
Income tax expense  $-    0.0%  $14    2.0%