Income Taxes |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Note 8 – Income Taxes
The Company's provision for income taxes is determined using an estimated annual effective tax rate, adjusted for discrete items that arise during the period.
Continuing Operations: For the nine months ended September 30, 2025, the Company recorded an income tax benefit of $1,034,683 on its pre-tax loss from continuing operations of $2,347,855. This benefit resulted from a partial release of the Company's valuation allowance against its net deferred tax assets. The taxable gain generated from the sale of the discontinued operation (discussed below) provided a source of income, allowing for the realization of these deferred tax assets which previously did not meet the "more likely than not" criteria. For the comparable 2024 period, the Company maintained a full valuation allowance.
Discontinued Operations: For the nine months ended September 30, 2025, the Company recorded a pre-tax loss from discontinued operations of $116,975 and a related tax benefit of $31,624.
Separately, the Company completed the sale of its discontinued operation, resulting in a pre-tax gain of $24,802,105 for the nine months ended September 30, 2025. The Company recorded a provision for federal and state income taxes on this gain of $7,330,816. This gain is treated as a significant, discrete item for tax purposes. The final tax expense is subject to change pending the completion of formal tax studies.
The final tax expense is subject to change pending the completion of formal tax studies and final calculations, and may be adjusted in the future. The $4,362,885 tax expense is recorded as a component of the "Net gain on sale of discontinued operation" in the Condensed Consolidated Statements of Operations and as "Income taxes payable" on the Condensed Consolidated Balance Sheet.
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