| Schedule of Income Before Income Taxes |
For financial
reporting purposes, income before income taxes includes the following components:
| | |
Year Ended December 31, | |
| | |
2023 | | |
2022 | |
| Loss before income taxes: | |
| | |
| |
| United States | |
$ | (14,860,458 | ) | |
$ | (6,787,009 | ) |
| Foreign | |
| - | | |
| - | |
| Loss before income taxes: | |
$ | (14,860,458 | ) | |
$ | (6,787,009 | ) |
|
| Schedule of Expense for Income Taxes |
The expense
for income taxes consists of:
| | |
Year Ended December 31, | |
| | |
2023 | | |
2022 | |
| Current income tax provision | |
| | |
| |
| Federal | |
$ | - | | |
$ | - | |
| State | |
| 10,253 | | |
| 13,859 | |
| Foreign | |
| - | | |
| - | |
| | |
| 10,253 | | |
| 13,859 | |
| Deferred income tax | |
| | | |
| | |
| Federal | |
| (106,387 | ) | |
| 36,527 | |
| State | |
| (213,715 | ) | |
| 87,570 | |
| Foreign | |
| - | | |
| - | |
| | |
| (320,102 | ) | |
| 124,097 | |
| | |
| | | |
| | |
| Total income tax (benefit) provision | |
$ | (309,849 | ) | |
$ | 137,956 | |
|
| Schedule of Deferred Tax Assets and Liabilities |
The significant
components of the Company’s deferred tax assets and liabilities are as follows:
| | |
Year Ended December 31, | |
| | |
2023 | | |
2022 | |
| Deferred tax assets: | |
| | |
| |
| Net operating loss carryforward | |
$ | 15,302,761 | | |
$ | 13,716,239 | |
| Tax credits | |
| 205,028 | | |
| 205,028 | |
| Lease liabilities | |
| 33,397 | | |
| 54,558 | |
| Accruals and reserves | |
| 168,603 | | |
| 173,247 | |
| Capital loss carryforwards | |
| 2,678,907 | | |
| 2,678,907 | |
| Capitalized research costs | |
| 383,233 | | |
| 587,202 | |
| Taxable goodwill | |
| 1,140,134 | | |
| - | |
| Intangible assets | |
| 523,899 | | |
| 508,057 | |
| Stock compensation | |
| 397,275 | | |
| 179,105 | |
| Federal effect of state taxes | |
| - | | |
| 44,880 | |
| Fixed assets | |
| 17,451 | | |
| - | |
| Other | |
| 849 | | |
| 4,533 | |
| Total deferred tax assets before valuation allowance: | |
| 20,851,537 | | |
| 18,151,756 | |
| Valuation allowance | |
| (20,819,919 | ) | |
| (17,343,925 | ) |
| Deferred tax assets, net of valuation allowance | |
| 31,618 | | |
| 807,831 | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| Right-of-use assets | |
| (31,618 | ) | |
| (52,485 | ) |
| Taxable goodwill | |
| - | | |
| (790,527 | ) |
| Fixed assets | |
| - | | |
| (284,921 | ) |
| Total deferred tax liabilities | |
| (31,618 | ) | |
| (1,127,933 | ) |
| | |
| | | |
| | |
| Net deferred tax liability | |
$ | - | | |
$ | (320,102 | ) |
|