Sensus Healthcare, Inc. Income Taxes Disclosure

Note 11 — Income Taxes

 

The provision for income taxes consisted of the following:

 Schedule of Provision for Income Taxes

		For The Years Ended
		December 31,
(in thousands)		2024				2023
Current - Federal		$	1,576			$	249
Current - State			856				345
Deferred - Federal			(71	)			(369	)
Deferred - State			14				(58	)
Income tax provision		$	2,375			$	167

  

 

For the years ended December 31, 2024 and 2023, the expected tax expense based on the statutory rate is reconciled with the actual tax expense as follows:

 Schedule of Tax Expense Based on the Statutory Rate is Reconciled with the Actual Tax Expense

		For The Years Ended
		December 31,
		2024				2023
U.S. federal statutory rate			21.0	%			21.0	%
State taxes, net of federal benefit			8.0	%			9.7	%
Permanent differences			(0.4	%)			6.3	%
Change in tax rates			(0.4	%)			9.0	%
Return-to-provision adjustments			(0.5	%)			1.9	%
Tax credits			(1.5	%)			(22.3	%)
Income tax provision			26.2	%			25.6	%

 

As of December 31, 2024 and December 31, 2023, the Company’s net deferred tax asset consisted of the effects of temporary differences attributable to the following:

 Schedule of Net Deferred Tax Asset

		As of December 31,
(in thousands)		2024				2023
Deferred tax assets:			-
Net operating losses		$	647			$	814
Stock-based compensation			115				103
Depreciation and amortization			942				762
Accrued expenses and reserves			243				257
Inventory capitalization			165				—
Customer deposits			18				37
Tax credits			267				367
Lease accounting, net			6				2
Gross deferred tax assets			2,403				2,342
Valuation allowance			(185	)			(185	)
Total deferred tax assets			2,218				2,157
Deferred tax liabilities			-
Prepaid expenses			(21	)			(17	)
Total deferred tax liabilities			(21	)			(17	)
Net deferred tax assets		$	2,197			$	2,140

 

The Company has state net operating loss carryforwards (each, an “NOL”) spread across various jurisdictions with a combined total of approximately $6.3 million as of December 31, 2024. A majority of the state NOL’s are attributed to the State of Illinois which begin to expire in 2037. Additionally, the Company also has federal and state tax credit carryforwards of approximately $0.3 million as of December 31, 2024. These credit carryforwards do not expire.

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the future generation of taxable income during the periods in which those temporary differences become deductible. Management considers the ability to carryback taxable income, future reversals of existing taxable temporary differences, tax-planning strategies, and future taxable income exclusive of reversing temporary differences and carryforwards in making this assessment. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of December 31, 2024, management determined there continues to be sufficient positive evidence that it is more likely than not that the net deferred tax assets (other than foreign net operating losses) are realizable.

 

 

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2024 and 2023. The Company does not expect any significant changes in its unrecognized tax benefits within 12 months of the reporting date. The Company has U.S. federal and certain state tax returns subject to examination by tax authorities beginning with those filed for the year ended December 31, 2017.