| Schedule of Provision for Income Taxes |
The
components of the provision for income taxes for the years ended December 31, 2025 and 2024 consist of the following:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Current federal and state | |
$ | 2,300,000 | | |
$ | 65,000 | |
| Deferred federal and state | |
| 53,000 | | |
| (767,000 | ) |
| Total provision (benefit) for income taxes | |
$ | 2,353,000 | | |
$ | (702,000 | ) |
|
| Schedule of Reconciliation of the U.S. Federal Statutory Income Tax Rate |
A
reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate for the years ended December
31, 2025 and 2024 is as follows:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Federal tax | |
| 21.4 | % | |
| 21.0 | % |
| State tax | |
| 0.0 | % | |
| 0.1 | % |
| Return to provision | |
| 0.9 | % | |
| 0.0 | % |
| Valuation allowance | |
| 0.3 | % | |
| (0.2 | )% |
| Nontaxable partnership income | |
| (19.1 | )% | |
| (20.2 | )% |
| Effective income tax rate | |
| 3.5 | % | |
| 0.7 | % |
|
| Schedule of Components of Deferred Tax Assets and Liabilities |
The
significant components of deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Deferred tax assets | |
| | |
| |
| Inventory obsolescence | |
$ | 59,000 | | |
$ | 105,000 | |
| Allowance for credit losses | |
| 23,000 | | |
| – | |
| Sales return reserve | |
| 27,000 | | |
| 27,000 | |
| Business interest limitation | |
| 2,183,000 | | |
| 2,169,000 | |
| Lease liabilities | |
| 415,000 | | |
| 448,000 | |
| Accrued expenses | |
| – | | |
| 220,000 | |
| Loss carryforward | |
| 1,065,000 | | |
| 596,000 | |
| Valuation allowance | |
| (3,103,000 | ) | |
| (2,661,000 | ) |
| Total deferred tax assets | |
$ | 669,000 | | |
$ | 904,000 | |
| | |
| | | |
| | |
| Deferred tax liabilities | |
| | | |
| | |
| Fixed assets | |
$ | (125,000 | ) | |
$ | (180,000 | ) |
| Construction contracts | |
| (668,000 | ) | |
| (305,000 | ) |
| Right-of-use assets | |
| (400,000 | ) | |
| (435,000 | ) |
| Other | |
| (568,000 | ) | |
| – | |
| Intangibles | |
| (2,493,000 | ) | |
| (2,701,000 | ) |
| Receivables | |
| – | | |
| (933,000 | ) |
| Total deferred tax liabilities | |
$ | (4,254,000 | ) | |
$ | (4,554,000 | ) |
| | |
| | | |
| | |
| Total net deferred tax liabilities | |
$ | (3,585,000 | ) | |
$ | (3,650,000 | ) |
|