Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate consists of the following:


	Year Ended December 31,
	2023		2022		2021
Statutory federal income tax benefit	21.00	%	21.00	%	21.00	%
Permanent items	26.18	%	0.56	%	(2.71)	%
State taxes, net of federal tax benefit	20.67	%	7.77	%	5.99	%
Effects of Rates Different from Statutory	(0.04)	%	0.17	%	(0.06)	%
Rate Change	0.04	%	0.01	%	—	%
Other	(29.54)	%	(3.64)	%	(0.71)	%
Change in valuation allowance	(1.91)	%	(54.94)	%	(20.98)	%
Income tax provision (benefit)	36.40	%	(29.07)	%	2.53	%

The components of income tax expense (benefit) are as follows:


	For the Years Ended December 31,
	2023		2022		2021
Current:
Federal	$	2,555,164	$	1,493,772	$	295,956
State and local	5,782,335		502,872		319,741
Foreign	-		-		-
	$	8,337,499	$	1,996,644	$	615,697
Deferred:
Federal	$	1,650,695	$	(7,683,475)	$	-
State and local	(3,256,914)		(2,649,791)		-
Foreign	(375,300)		375,301		-
	(1,981,519)		(9,957,965)		-
Total income tax expense (benefit)	$	6,355,980	$	(7,961,321)	$	615,697

The temporary differences that give rise to deferred tax assets and liabilities are as follows:


	For the Years Ended December 31,
	2023		2022
Deferred tax assets:
Allowance for doubtful accounts	$	1,683,119	$	893,328
Accrued expenses	799,295		382,649
Lease liability	4,674,177		2,359,566
Stock compensation	5,039,590		2,780,020
Research and development expense	865,800		303,446
Net operating loss	4,568,113		11,523,633
Other	(471,694)		(466,789)
Total deferred tax asset	$	17,158,400	$	17,775,853

Valuation allowance	(1,207,673)		(1,520,345)
Deferred income tax assets, net of allowance	$	15,950,727	$	16,255,508

Deferred tax liabilities:
Prepaid expenses	$	(780,767)	$	(994,644)
Depreciation	(3,819,069)		(2,798,988)
Right-of-use asset	(4,544,024)		(2,346,070)
Amortization	5,081,672		(157,839)
Total deferred tax liability	$	(4,062,188)	$	(6,297,541)

Deferred tax assets, net of allowance	$	11,888,539	$	9,957,967