Schedule of components of loss before income taxes |
The components of loss before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2023 |
|
2022 |
Domestic |
$ |
(9,384,178) |
|
|
$ |
(10,563,302) |
|
Foreign |
(3,039,399) |
|
|
(3,133,318) |
|
Total Loss Before Income Taxes |
$ |
(12,423,577) |
|
|
$ |
(13,696,620) |
|
|
Schedule of components of income tax expense |
The components of income tax expense (benefit) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2023 |
|
2022 |
Deferred Taxes: |
|
|
|
Federal |
$ |
(280,954) |
|
|
$ |
4,954 |
|
State |
371,273 |
|
|
(117,964) |
|
Total Deferred Taxes |
$ |
90,319 |
|
|
$ |
(113,010) |
|
Income Tax Expense (Benefit) |
$ |
90,319 |
|
|
$ |
(113,010) |
|
|
Schedule of effective income tax rate reconciliation |
The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the applicable statutory U.S. tax rate are analyzed below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2023 |
|
2022 |
United States Federal Income Tax Rate |
21.00 |
% |
|
21.00 |
% |
State Taxes, Net of Federal Benefit |
13.26 |
|
|
(2.59) |
|
Non-deductible R&D Expenses |
(3.49) |
|
|
— |
|
Contingent Consideration |
(3.36) |
|
|
— |
|
GILTI Inclusion |
(1.12) |
|
|
— |
|
Other Permanent Differences |
(0.65) |
|
|
(9.24) |
|
|
|
|
|
Change in Valuation Allowance |
(27.61) |
|
|
(9.53) |
|
Research and Development Credits |
0.24 |
|
|
0.58 |
|
Tax Rate Differential |
0.32 |
|
|
2.89 |
|
|
|
|
|
|
|
|
|
True Up Credit |
(0.08) |
|
|
— |
|
Other |
0.76 |
|
|
(0.26) |
|
Effective Tax Rate Expense |
(0.73) |
% |
|
2.85 |
% |
|
Schedule of deferred tax assets and liabilities |
The Company’s deferred tax assets and liabilities consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2023 |
|
2022 |
Net Deferred Tax Liability: |
|
|
|
Net Operating Loss Carryforwards |
$ |
25,982,646 |
|
|
$ |
22,809,667 |
|
Research and Development Credit Carryforwards |
2,955,627 |
|
|
2,925,890 |
|
Capitalized Research and Development |
4,743,068 |
|
|
4,606,902 |
|
Stock-Based Compensation |
784,366 |
|
|
782,355 |
|
Cash Versus Accrual Adjustments |
77,729 |
|
|
336,360 |
|
Total Deferred Tax Assets |
34,543,436 |
|
|
31,461,174 |
|
Valuation Allowance |
(33,025,829) |
|
|
(29,593,286) |
|
Net Deferred Tax Asset |
1,517,607 |
|
|
1,867,888 |
|
Depreciation and Amortization |
— |
|
|
(477) |
|
In-Process Research and Development |
(2,297,047) |
|
|
(2,556,532) |
|
Net Deferred Tax Liability |
$ |
(779,440) |
|
|
$ |
(689,121) |
|
|