Schedule of components of loss before income taxes |
The components of loss before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
Domestic |
$ |
(10,563,302) |
|
|
$ |
(10,639,818) |
|
Foreign |
(3,133,318) |
|
|
(3,323,470) |
|
Total Loss Before Income Taxes |
$ |
(13,696,620) |
|
|
$ |
(13,963,288) |
|
|
Schedule of components of income tax expense |
The components of income tax (benefit) expense are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
Deferred Taxes: |
|
|
|
Federal |
$ |
4,954 |
|
|
$ |
(24,086) |
|
State |
(117,964) |
|
|
(168,517) |
|
Total Deferred Taxes |
$ |
(113,010) |
|
|
$ |
(192,603) |
|
Income Tax Benefit |
$ |
(113,010) |
|
|
$ |
(192,603) |
|
|
Schedule of effective income tax rate reconciliation |
The difference between the effective rate reflected in the provision for income taxes on loss before taxes and the amounts determined by applying the applicable statutory U.S. tax rate are analyzed below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
United States Federal Income Tax Rate |
21.00 |
% |
|
21.00 |
% |
State Taxes, Net of Federal Benefit |
(2.59) |
|
|
3.35 |
|
Permanent Differences |
(9.24) |
|
|
0.72 |
|
Goodwill Impairment |
— |
|
|
(6.07) |
|
Change in Valuation Allowance |
(9.53) |
|
|
(21.33) |
|
Research and Development Credits |
0.58 |
|
|
1.09 |
|
Tax Rate Differential |
2.89 |
|
|
1.00 |
|
State Non-Income Based Tax |
— |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
Other |
(0.26) |
|
|
1.61 |
|
Effective Tax Rate Expense |
2.84 |
% |
|
1.38 |
% |
|
Schedule of deferred tax assets and liabilities |
The Company’s deferred tax assets and liabilities consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
Net Deferred Tax Liability: |
|
|
|
Net Operating Loss Carryforwards |
$ |
22,809,667 |
|
|
$ |
20,689,134 |
|
Research and Development Credit Carryforwards |
2,925,890 |
|
|
2,853,598 |
|
Capitalized Research and Development |
4,606,902 |
|
|
5,640,428 |
|
Stock-Based Compensation |
782,355 |
|
|
835,432 |
|
Cash Versus Accrual Adjustments |
336,360 |
|
|
128,188 |
|
Total Deferred Tax Assets |
31,461,174 |
|
|
30,146,780 |
|
Valuation Allowance |
(29,593,286) |
|
|
(28,298,339) |
|
Net Deferred Tax Asset |
1,867,888 |
|
|
1,848,441 |
|
Depreciation and Amortization |
(477) |
|
|
(956) |
|
In-Process Research and Development |
(2,556,532) |
|
|
(2,649,616) |
|
Net Deferred Tax Liability |
$ |
(689,121) |
|
|
$ |
(802,131) |
|
|