|
NOTE 18 – TAX EXPENSE
The provision for income taxes consisted of the following for the three and six months ended June 30, 2024 and 2023:
| |
|
(in thousands) |
|
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
$ |
225 |
|
|
$ |
(125 |
) |
|
$ |
250 |
|
|
$ |
533 |
|
| State |
|
|
177 |
|
|
|
— |
|
|
|
177 |
|
|
|
— |
|
| Total Current Tax Expense |
|
|
402 |
|
|
|
(125 |
) |
|
|
427 |
|
|
|
533 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| State |
|
|
(140 |
) |
|
|
— |
|
|
|
(113 |
) |
|
|
— |
|
| Total Deferred Tax Expense (Benefit) |
|
|
(140 |
) |
|
|
— |
|
|
|
(113 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL TAX PROVISION (BENEFIT) |
|
$ |
262 |
|
|
$ |
(125 |
) |
|
$ |
314 |
|
|
$ |
533 |
|
The components of deferred income tax assets and liabilities are as follows:
| |
|
(in thousands) |
|
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Deferred Income Tax Assets: |
|
|
|
|
|
|
|
|
| Fixed Assets and Intangibles |
|
$ |
849 |
|
|
$ |
320 |
|
| Reserves and Allowances |
|
|
45 |
|
|
|
— |
|
| Investments |
|
|
— |
|
|
|
— |
|
| Accrued Expenses |
|
|
232 |
|
|
|
60 |
|
| Net Operating Losses |
|
|
7,564 |
|
|
|
4,346 |
|
| Total |
|
|
8,690 |
|
|
|
4,726 |
|
| |
|
|
|
|
|
|
|
|
| Deferred Income Tax Liabilities: |
|
|
|
|
|
|
|
|
| Fixed Assets and Intangibles |
|
|
(1,717 |
) |
|
|
— |
|
| Leases |
|
|
(76 |
) |
|
|
(152 |
) |
| Unrealized Gain on Investments |
|
|
(59 |
) |
|
|
— |
|
| Total |
|
|
(1,852 |
) |
|
|
(152 |
) |
| |
|
|
|
|
|
|
|
|
| Valuation Allowance |
|
|
(8,317 |
) |
|
|
(4,574 |
) |
| Net Deferred Tax Assets (Liabilities) |
|
$ |
(1,479 |
) |
|
$ |
— |
|
The net deferred tax liability as of June 30, 2024 is associated with the Company's continuing operations.
The reconciliation between the Company’s effective tax rate and the statutory tax rate is as follows:
| |
|
(in thousands) |
|
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Expected Income Tax Expense (Benefit) at Statutory Tax Rate, Net |
|
$ |
5,011 |
|
|
$ |
(428 |
) |
|
$ |
4,381 |
|
|
$ |
(112 |
) |
| Changes in Income Taxes Resulting From: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| State Taxes (Net of Federal Tax Benefits) |
|
|
(578 |
) |
|
|
(520 |
) |
|
|
(745 |
) |
|
|
(617 |
) |
| Decrease in Valuation Allowance |
|
|
2,453 |
|
|
|
608 |
|
|
|
2,696 |
|
|
|
447 |
|
| Disposal of Depreciable Assets |
|
|
— |
|
|
|
(436 |
) |
|
|
— |
|
|
|
(1,074 |
) |
| Gain on Write-Down of Assets |
|
|
— |
|
|
|
(346 |
) |
|
|
— |
|
|
|
(326 |
) |
| Non-Deductible 280E |
|
|
637 |
|
|
|
1,020 |
|
|
|
1,011 |
|
|
|
2,169 |
|
| Change in Fair Value of Investments |
|
|
130 |
|
|
|
— |
|
|
|
43 |
|
|
|
— |
|
| Debt Discount |
|
|
— |
|
|
|
(28 |
) |
|
|
— |
|
|
|
41 |
|
| Other Income |
|
|
(7,361 |
) |
|
|
— |
|
|
|
(7,043 |
) |
|
|
— |
|
| Prior Year Adjustments and Other |
|
|
(30 |
) |
|
|
5 |
|
|
|
(29 |
) |
|
|
5 |
|
| Reported Income Tax Expense (Benefit) |
|
$ |
262 |
|
|
$ |
(125 |
) |
|
$ |
314 |
|
|
$ |
533 |
|
|