| Income Tax Disclosure [Text Block] |
Note I – Taxes
The components of the provision for income taxes are as follows:
| |
|
Years Ended December 31,
|
|
| |
|
2025
|
|
|
2024
|
|
| |
|
|
|
|
|
|
|
|
|
Current taxes:
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
|
|
|
$ |
- |
|
|
State
|
|
|
- |
|
|
|
|
|
|
Current taxes
|
|
|
- |
|
|
|
- |
|
|
Deferred taxes:
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
- |
|
|
$ |
(163,000 |
) |
|
State
|
|
|
- |
|
|
|
- |
|
|
Deferred taxes
|
|
|
- |
|
|
|
(163,000 |
) |
|
Income tax provision
|
|
$ |
- |
|
|
$ |
(163,000 |
) |
A reconciliation of the tax provision calculated at the statutory federal income tax rate with amounts reported follows:
| |
|
Year Ended December 31,
|
|
| |
|
2025
|
|
|
2024
|
|
| |
|
Amount
|
|
|
Percent
|
|
|
Amount |
|
|
Percent
|
|
|
Income tax benefit at the federal statutory rate
|
|
$ |
(1,639,000 |
) |
|
|
21.0 |
% |
|
$ |
(466,000 |
) |
|
|
21.0 |
% |
|
State income tax, net of federal taxes
|
|
|
(529,000 |
) |
|
|
6.7 |
|
|
|
(106,000 |
) |
|
|
5.2 |
|
|
Permanent differences and other
|
|
|
37,000 |
|
|
|
(0.5 |
) |
|
|
(6,000 |
) |
|
|
0.3 |
|
|
True up to tax return for JV investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation shortfall
|
|
|
504,000 |
|
|
|
(6.4 |
) |
|
|
|
|
|
|
|
|
|
Variance-reversal of previous tax provision
|
|
|
- |
|
|
|
|
|
|
|
163,000 |
|
|
|
(7.9 |
) |
|
Change in valuation allowance
|
|
|
1,627,000 |
|
|
|
(20.8 |
) |
|
|
252,000 |
|
|
|
(12.3 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
$ |
- |
|
|
|
0 |
% |
|
$ |
(163,000 |
) |
|
|
7.9 |
% |
Items which give rise to deferred tax assets and liabilities are as follows:
| |
|
December 31,
|
|
| |
|
2025
|
|
|
2024
|
|
|
Deferred tax asset:
|
|
|
|
|
|
|
|
|
|
Basis differences in unconsolidated entities, including advances and loans to those entities
|
|
$ |
230,000 |
|
|
$ |
210,000 |
|
|
Net intangible assets and other capitalized costs
|
|
|
1,013,000 |
|
|
|
|
|
|
Net operating loss
|
|
|
1,015,000 |
|
|
|
499,000 |
|
|
Net effect of conversion from the accrual basis of accounting to the cash basis of accounting for tax purposes primarily related to accounts receivable, prepaid expense, deferred revenue, and accounts payable
|
|
|
63,000 |
|
|
|
11,000 |
|
| Stock based compensation |
|
|
19,000 |
|
|
|
|
|
|
Valuation allowance
|
|
|
(2,340,000 |
) |
|
|
(720,000 |
) |
|
Net deferred tax asset
|
|
$ |
- |
|
|
$ |
- |
|
The Company files income tax returns in the U.S. federal jurisdiction, the State of Maryland, the State of Florida, the State of California, and the State of New York. With few possible exceptions, tax years from January 1, 2020 to the current year remain open for examination by federal and state tax authorities.
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