Income Tax

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Tax

NOTE 12 - Income Tax

Effective Tax Rate Reconciliation, for the six months ended June 30, 2024
		%			$
Pretax book income	2,432,850		21.00	%		510,898
Permanent differences	42,336		0.37	%		8,891
State income tax	146,590		8.15	%		198,186
Other deferred adjustment	-		0.00	%		(89	)
Total tax expense			29.51	%		717,886

Effective Tax Rate Reconciliation, for the six months ended June 30, 2023
			%			$
Pretax book loss	(2,550,550	)		21.93	%		(559,248	)
Permanent differences	81,179			-0.70	%		17,800
Other deferred adjustment	-			0.18	%		(4,490	)
Total tax benefits				21.40	%		(545,938	)

	Current		Deferred		Total
Tax Expense Summary, for the six months ended June 30, 2024	Income Tax Expense		Income Tax Expense		Income Tax Expense
Federal	$	-	$	488,916	$	488,916
State		146,590		82,380		228,970
Total tax expense	$	146,590	$	571,296	$	717,886

	Current		Deferred			Total
Tax Expense Summary, for the six months ended June 30, 2023	Income Tax Benefit		Income Tax Expense			Income Tax Benefit
Federal	$	-	$	(464,349	)	$	(464,349	)
State		-		(81,589	)		(81,589	)
Total tax benefit	$	-	$	(545,938	)	$	(545,938	)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at June 30, 2024 and December 31, 2023 were as follows:

	Deferred Tax		Deferred Tax
	Assets		Assets
Deferred Tax Assets Summary	June 30, 2024		December 31, 2023
Federal	$	612,920	$	1,101,836
State		119,999		202,379
Total	$	732,919	$	1,304,215

	Deferred Tax		Deferred Tax
	Assets		Assets
Deferred Tax Assets Summary	June 30, 2024		December 31, 2023
Operating lease right of use lease assets	$	1,635	$	172
Inventories allowance		162,064		169,725
Net loss carry forward		569,220		1,134,318
Total	$	732,919	$	1,304,215

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on management’s evaluation, there was no provision necessary for material uncertain tax position for the Company on June 30, 2024 and December 31, 2023.

For the six months ended June 30, 2024 and 2023, the Company reported net operating income (loss) of $1,714,964 and $(2,004,612), respectively. The net operating loss carryforward is not subject to any expiration period under federal regulations, while at the state level, the expiration period usually ranges up to 20 years, or there may be no expiration period at all.

The Company expects to generate sufficient taxable income in future periods against which the deferred tax assets can be utilized. Accordingly, a valuation allowance may not be needed.