Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

12) Income Taxes

The Company’s overall effective tax rate for the three month periods ended September 30, 2023 and 2022 was 21.7% and 28.7%, respectively, which resulted in a provision for income taxes of $1,117,397 and $(949,159), respectively, and for the nine month periods ended September 30, 2023 and 2022 was 21.9% and 24.2%, respectively, which resulted in a provision for income taxes of $3,258,740 and $1,421,036, respectively The Company’s effective tax rate is higher than the U.S. federal statutory rate of 21% due to, among other factors, state taxes as offset by certain state income tax benefits, along with certain permanent tax adjustments, such as meals and entertainment and stock-based compensation. The decrease in the effective tax rate when compared to the prior year was primarily due to a smaller increase in the valuation allowance.

Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although the Company believes its tax estimates are reasonable, the Company can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in its historical income tax provisions and accruals.