v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 8 - INCOME TAXES
 
Components of Income Tax Expense
 
The components of the provision for income taxes for the years ended December 31, 2025 and 2024 are as follows:
 
                 
    2025     2024  
Current:
               
Federal
  $ 423,465     $ 354,044  
State
    48,693       71,981  
Total current
    472,158       426,025  
Deferred:
               
Federal
    (256,941 )      (131,108 ) 
State
    (9,076 )      (12,189 ) 
Total deferred
    (266,017 )      (143,297 ) 
                 
Income tax expense
  $ 206,141     $ 282,728  
 
Components of Effective Income Tax Rate
 
The actual income tax expense differs from the “expected” income tax expense (computed by applying the applicable U.S. federal corporate tax rate to income before income taxes) for the years ended December 31, 2025 and 2024, as follows:
 
                                 
    2025     2024  
    Amount     Percent     Amount     Percent  
                                 
Computed “expected” expense
  $ 150,633       21.00 %   $ 333,757       21.00 %
Permanent differences
    23,474       3.27 %     22,432       1.41 %
State and local income tax expense
    8,406       1.17 %     18,626       1.17 %
State actual versus blended rate differences
    (11,278 )      (1.57 )%       -           -   %
VDA income tax
    29,242       4.08 %     47,545       3.00 %
True-up of current taxes
    55,762       7.77 %     1,802       0.11 %
True-up of deferred taxes
    (50,098 )      (6.98 )%     (141,434 )      (8.90 )%
                                 
Income tax expense
  $ 206,141       28.74 %   $ 282,728       17.79 %
Components of Deferred Income Taxes
 
Deferred tax assets and liabilities represent the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:
 
                 
    2025     2024  
Deferred tax assets:
               
Stock options
  $ 26,495     $ 25,411  
Accrued vacation
    124,462         -    
Allowance for credit losses
    6,652       6,570  
Net operating loss
    6,730       5,613  
Accrued income and sales tax VDAs
    415,654       274,112  
Total deferred tax assets
    579,993       311,706  
                 
Deferred tax liabilities:
               
Goodwill
    (433,342 )      (428,036 ) 
Property and equipment
    (87,942 )      (90,978 ) 
Total deferred tax liabilities
    (521,284 )      (519,014 ) 
                 
Deferred tax assets (liabilities), net
  $ 58,709     $ (207,308 ) 
 
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act (“OBBBA”), introducing significant amendments to the U.S. Internal Revenue Code. The amendments include the permanent extension of certain individual, business, and international tax measures initially established under the 2017 Tax Cuts and Jobs Act, which were set to expire at the end of 2025. The legislation did not have a material impact on income tax expense for 2025.
 
The Company does not have any unrecognized income tax benefits recorded.
 
Components of Income Taxes Paid
 
The Company paid income taxes by jurisdiction for the years ended December 31, 2025 and 2024 as follows:
 
               
       2025       2024  
               
Federal
  $ 370,000    $ 585,000 
State
    10,600      26,882 
               
Total cash taxes paid
  $ 380,600    $ 611,882 
 
As the Company's business and sales grow, the Company may incur additional state income tax obligations.
 
In fiscal years 2025 and 2024, the Company paid no foreign income taxes.