INCOME TAXES

9 Months Ended

Sep. 30, 2022

INCOME TAXES

INCOME TAXES

NOTE 6 – INCOME TAXES

Presently, we are a C-corporation for tax purposes and have booked an income tax provision for the periods described below.

As of September 30, 2022 and December 31, 2021, we have a deferred tax asset of $4,000 and a deferred tax liability of $45,000, respectively. As of September 30, 2022, our net deferred tax asset consists of foreign tax credit carryforwards, unrealized gain/loss, and other book to tax timing differences. Our determination of the realizable deferred tax assets and liabilities requires the exercise of significant judgment, based in part on business plans and expectations about future outcomes.

As of September 30, 2022 and December 31, 2021 we had accrued income taxes of $128,800 and $1,269,000, respectively. The change in accrued income taxes was largely driven by $1,536,000 of federal and state tax payments made during 2022. We recorded a benefit from  income taxes of $28,442 (27% effective tax rate) and a benefit from income taxes of $300 (27% effective tax rate) during the three months ended September 30, 2022 and September 30, 2021, respectively. We recorded income taxes of approximately $346,000 (27% effective tax rate) and $1,010,978 (30.4% effective tax rate) during the nine months ended September 30, 2022 and September 30, 2021, respectively.