NOTE 9 – RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. These amendments expanded the permitted use of the proportional amortization method, which was previously only available to low-income housing tax credit investments, to other tax equity investments if certain conditions are met. Under the proportional amortization method, the initial cost of an investment is amortized in proportion to the income tax benefits received and both the amortization of the investment and the income tax benefits received are recognized as a component of income tax expense. ASU 2023-02 was adopted on a modified retrospective basis of transition or, for certain changes, a prospective basis.  The Company had not completed its analysis of the individual credits by the filing date of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, but had determined the policy election did not have a material impact on the consolidated financial statements. To correct an immaterial error, activity for the three months ended March 31, 2024, under the proportional amortization method has been recorded in the three months ended June 30, 2024. As a result, the six months ending June 30, 2024, accurately present the results for that period under the proportional amortization method. During the second quarter, the analysis was completed and a reduction to retained earnings as of January 1, 2024, of $2.3 million was recorded.