Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

The Company’s provision for income taxes is comprised of the following:

	Year Ended December 31,
	2020			2019
Current
Federal	$	(176,000	)	$	288,000
State and local		(82,000	)		270,000
Total Current		(258,000	)		558,000
Deferred
Federal	$	161,000		$	229,000
State and local		318,000			261,000
Total Deferred		479,000			490,000
Total Provision for income taxes	$	221,000		$	1,048,000

Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate

The Company’s effective tax rate differs from the U.S. federal statutory income tax rate of 21% for 2020 and 2019 as follows:

	Year Ended December 31,
	2020			2019
Federal statutory income tax rate		21.0	%		21.0	%
Tax amortization of intangible assets		(8.8	%)		(1.3	%)
Permanent differences		1.5	%		0.9	%
State and local taxes, net of federal benefit		2.5	%		4.3	%
Change in valuation allowance		(5.2	%)		—
Other		(4.1	%)		(0.4	%)
Effective tax rate		6.9	%		24.5	%

Schedule of Deferred Tax Assets (Liabilities)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	As of December 31,
	2020			2019
Deferred tax assets:
Net operating losses	$	6,043,000		$	6,876,000
Lease liabilities		722,000			810,000
Share-based compensation		61,000			—
Intangible assets		2,000			—
Subtotal		6,828,000			7,686,000
Less: Valuation allowance		(1,070,000	)		(1,236,000	)
Total Deferred tax assets		5,758,000			6,450,000
Deferred tax liabilities:
Fixed assets	$	(901,000	)	$	(1,062,000	)
Total Deferred tax liabilities		(901,000	)		(1,062,000	)
Net Deferred tax assets	$	4,857,000		$

Schedule of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:

	As of December 31,
	2020		2019
Balance at beginning of period	$	—	$	—
Additions for tax positions taken during current year		1,105,000		—
Additions for tax positions taken during prior year		—		—
Reductions for tax positions taken during prior years		—		—
Settlements		—		—
Expirations of statutes of limitations		—
Balance at end of period	$	1,105,000	$	—