Note 8 - Income Taxes |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Notes to Financial Statements | |||
| Income Tax Disclosure [Text Block] |
The Company’s effective tax rates for the three and six-month periods ended June 30, 2026, were 29.3% and 30.3%, respectively, and were primarily related to the impact of state taxes and the change in valuation allowance on the Company's deferred tax assets. The Company's effective tax rates for the three and six-month periods ended June 30, 2025, were 0.0% and (0.8%), respectively, which were primarily driven by a taxable loss at all jurisdictions and a full valuation allowance against the net operating losses.
During the six months ended June 30, 2026, the Company recorded a non-cash credit to its valuation allowance of increasing its valuation allowance against deferred tax assets to $5.1 million, as of June 30, 2026. The primary assets covered by this valuation allowance are federal net operating losses, which approximate $30.7 million at June 30, 2026. The Company made cash payments for Florida state income taxes for the three- and six-month periods ended June 30, 2026 of $30,000 and $40,000, respectively. The Company did make any federal tax payments for the three- and six-month periods ended June 30, 2026. For the three- and six-month periods ended June 30, 2025, the Company did make any federal or state cash tax payments due to its net operating loss carryforwards.
As of June 30, 2026, the Company maintained a partial valuation allowance against its deferred tax assets. A valuation allowance is recorded to reduce the gross deferred tax assets to an amount management believes is more likely than not to be realized. The valuation allowance is primarily attributable to the uncertainty regarding the realization of net operating losses, which is dependent upon future taxable income. |