Note 13 - Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
13. Income Taxes
The Company’s quarterly income tax provision is based upon an estimated annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of discrete items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.
During the three months ended September 30, 2024 and 2023, the Company recorded no income tax expense and an income tax benefit of $7,228, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded income tax expense of $6,271 and an income tax benefit of $17,151, respectively.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a valuation allowance as of September 30, 2024. The valuation allowance at September 30, 2024 was $11,368,001. The net change in the valuation allowance during the nine months ended September 30, 2024 was an increase of $43,454. |