INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| INCOME TAXES [Abstract] |
|
| Components of Provision for Income Taxes |
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 |
|
|
| Income Tax Reconciliation |
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 |
% |
|
| Deferred Tax Assets and Liabilities |
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 |
) |
|
| 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 | |
|