Note 10 - Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
Note 10. Income Taxes
During the three months ended June 30, 2025, net income attributable to Avalon Holdings Corporation shareholders was $0.3 million compared to net income attributable to Avalon Holdings Corporation shareholders of $1.0 million during the three months ending June 30, 2024. During the six months ended June 30, 2025, a net loss attributable to Avalon Holdings Corporation shareholders was $1.2 million compared to a net loss attributable to Avalon Holdings Corporation shareholders of $25,000 during the six months ended June 30, 2024. Avalon recorded a state income tax provision in both the three and six month periods ended June 30, 2025 and 2024, which was related entirely to the waste management and brokerage operations. Due to the recording of a full valuation allowance against the Company’s federal and state net deferred tax assets, the overall effective tax rate in both periods reflects taxes owed in certain U.S state jurisdictions. Avalon’s income tax on the income (loss) before taxes was offset by a change in the valuation allowance. A valuation allowance is provided when it is more likely than not that deferred tax assets relating to certain federal and state loss carryforwards will not be realized. Avalon continues to maintain a valuation allowance against the majority of its deferred tax amounts until it is evident that the deferred tax asset will be utilized in the future.
The One Big Beautiful Bill Act (the “OBBBA”) was signed into law on July 4, 2025. The OBBBA contains significant tax law changes with various effective dates after its enactment date. The Company does not expect the tax law changes will have a material impact on its financial position, results of operations or financial disclosure. |