| 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.
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