Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 10. Income Taxes

The Company accounts for its deferred tax assets and liabilities, including excess tax benefits of share-based payments, based on the tax ordering of deductions to be used on its tax returns. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities for the years ended December 31 is as follows:

	Years ending December 31,
	2023			2022
Deferred Tax Assets:
Net Operating Loss Carry Forwards	$	-		$	-
Tax Credits		560,971			471,186
Deferred Revenue		1,525,489			759,304
Stock Compensation		395,485			291,279
Reserves, Accruals, Other		356,689			299,358
Intangibles		1,420,445			986,534
Capital Loss Carryforward					70,423
Right of Use Liability		189,289			-
Total Deferred Tax Assets	$	4,448,368		$	2,878,084
Deferred Tax Liabilities:
Fixed Assets	$	(637,337	)	$	(639,322	)
Right of Use Asset		(180,877	)
Total Deferred Tax Liabilities	$	(818,214	)	$	(639,322	)
Valuation Allowance		-			-
Net Deferred Taxes	$	3,630,154		$	2,238,762

Internal Revenue Code Section 382 limits the ability to utilize net operating losses if a 50% change in ownership occurs over a three-year period. The Company does not believe that such a limitation of the net operating losses has occurred.

Significant components of the provision (benefit) for income tax for the years ended December 31 as follows:

	2023			2022
Current	$	4,924,686		$	1,136,170
Deferred		(3,105,874	)		(564,528	)
Change in valuation allowance		-			-
Provision (benefit) for income taxes	$	1,818,812		$	571,642

The Company is subject to federal and state taxes. Reconciliations of the Company’s effective income tax rate to the federal statutory rate for the years ended December 31 are as follows:

	2023			2022
Federal income tax expense at the statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		.12	%		3.1	%
Research credits		-4.85	%		-5.5	%
Permanent differences		0.38	%		0.2	%
PPP Loan Forgiveness		0.0	%		-9.9	%
Other		-.14	%		0.0	%
Change in valuation allowance		0.0	%		0.0	%
Provision (benefit) for income taxes		16.51	%		8.9	%