v3.25.4
Note 10 - Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 – Income Taxes
 

Income tax provision consisted of the following for the years ended December 31, 2024 and 2023 as follows:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Current:

 

 

 

 

 

 

 

 

State

 

$

(43

 )

 

$

(43

)

Total current expense

 

 

(43

 )

 

 

(43

)

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

(3,825

 )

 

 

(1,177

 )

State

 

 

(2,710

 )

 

 

(1,036

 )

Change in valuation allowance

 

 

6,535

 

 

2,213


Total deferred expense

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total income tax provision

 

$

(43

 )

 

$

(43

)


The income tax provision differs from the amount computed at federal statutory rates for the years ended December 31, 2024 and 2023 as follows:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Effective rate reconciliation

 

 

 

 

 

 

 

 

Computed Federal income tax benefit at the statutory rate

 

$

1,994

 

 

$

2,873

 

 

 

 

 

 

 

 

 

 

State income taxes, net of federal benefit

(736 )

(843 )
Federal NOL Expirations

(7,832 )

(4,280

 )

Change in valuation allowance

 

 

6,535

 

 

2,213


Other

 

 

(4

 )

 

 

(6

 )

 

 

 

 

 

 

 

 

Income tax provision

 

$

(43

 )

 

$

(43

)


Deferred tax assets (liabilities) are comprised of the following at December 31, 2024 and 2023:


 

 

December 31, 2024

 

 

December 31, 2023

 

Deferred tax assets/(liabilities)

 

 

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

52,250

 

 

$

58,820

 

Accruals and reserves

 

 

11,235

 

 

 

10,546

 

Depreciation and amortization

 

 

4,581

 

 

 

4,860

 

Indefinite-lived intangibles

 

 

1,615

 

 

 

2,191

 

Other

 

 

3,503

 

 

 

3,302

 

Total deferred tax assets

 

 

73,184

 

 

 

79,719

 

 

 

 

 

 

 

 

 

 

Less valuation allowance

 

 

(73,184

 )

 

 

(79,719

)

 

 

 

 

 

 

 

 

 

Net deferred tax assets

 

$

-

 

 

$

-

 

 

As a result of recurring operating losses, we have recorded a full valuation allowance against our net deferred tax assets as of December 31, 2024 and 2023, as management was unable to conclude that it is more likely than not that the deferred tax assets will be realized. During the years ended December 31, 2024 and 2023, the valuation allowance on deferred tax assets increased by $6,535 and $2,213, respectively.

 

We had federal net operating loss carryforwards of approximately $214,000 and state net operating loss carryforwards of approximately $156,000 at December 31, 2024, which are available to reduce future federal and state taxable income. The federal and state net operating loss carryforwards begin to expire 2025. If substantial changes in our ownership should occur, there would be an annual limitation of the amount of the net operating loss carryforwards which could be utilized.

 

We perform a review of our material tax positions in accordance with recognition and measurement standards established by authoritative accounting literature, which requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position.  If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.  Based upon our review and evaluation, during the years ended December 31, 2024 and 2023, we concluded that we had no unrecognized tax benefit that would affect our effective tax rate if recognized.

 

The Company files U.S. and state income tax returns in jurisdictions with various statutes of limitations. The 2021 through 2023 tax years remain subject to selection for examination as of December 31, 2024. None of the Company’s income tax returns are currently under audit.