| Schedule of Reconciliation of Income Tax Benefit |
The
reconciliation of income tax benefit at the U.S. statutory rate of 21% to the Company’s tax expense is as follows:
Schedule
of Reconciliation of Income Tax Benefit
| | |
2023 | | |
2022 | |
| | |
December
31, | | |
December 31 | |
| | |
2023 | | |
2022
(as restated) | |
| Federal tax benefit at statutory rate | |
$ | (1,384,472 | ) | |
$ | (1,049,174 | ) |
| State income taxes, net of federal tax effect | |
| (452,682 | ) | |
| (351,022 | ) |
| Rate change | |
| (5,710 | ) | |
| (409 | ) |
| R & D tax credits | |
| (240,000 | ) | |
| (69,461 | ) |
| Return to provision adjustments | |
| 286,015 | | |
| 201,235 | |
| Permanent differences | |
| | | |
| | |
| Derivative Debt Discount Amortization | |
| 562,568 | | |
| — | |
| Change in FMV of Warrant Liability | |
| (617,655 | ) | |
| 217,926 | |
| Loss on convertible note conversion | |
| 132,984 | | |
| 503,249 | |
| Other | |
| 126,012 | | |
| 169,946 | |
| Change in valuation allowance | |
| 1,535,466 | | |
| 377,709 | |
| Shortfall of stock compensation expense | |
| 40,674 | | |
| — | |
| Other adjustments | |
| 16,800 | | |
| 1 | |
| Income tax expense | |
$ | — | | |
$ | — | |
|
| Schedule of Components of Deferred Tax Assets |
The
principal components of deferred tax assets consist of the following:
Schedule
of Components of Deferred Tax Assets
| | |
December 31, | | |
December 31, | |
| | |
2023 | | |
2022
(as restated) | |
| Deferred tax asset: | |
| | | |
| | |
| Net operating loss carryforwards | |
$ | 1,727,566 | | |
$ | 751,844 | |
| Fixed assets | |
| — | | |
| 804 | |
| Intangibles (includes Section 174 capitalization) | |
| 1,197,938 | | |
| 405,172 | |
| R&D tax credits | |
| 423,915 | | |
| 200,715 | |
| Equity based compensation | |
| 1,251 | | |
| 11,626 | |
| Interest & other accrued expenses | |
| 72,140 | | |
| 29,336 | |
| Lease asset/(liability) | |
| 6,326 | | |
| 1,889 | |
| Total | |
$ | 3,429,136 | | |
$ | 1,401,386 | |
| | |
December 31, | | |
December 31, | |
| Deferred tax liabilities: | |
2023 | | |
2022
(as restated)
| |
| Change in fair market value of securities | |
$ | (19,943 | ) | |
$ | — | |
| Prepaid expenses | |
| (30,544 | ) | |
| (46,718 | ) |
| State income tax deferred | |
| — | | |
| (60,196 | ) |
| Fixed assets | |
| (2,746 | ) | |
| — | |
| Total | |
$ | (53,233 | ) | |
$ | (106,914 | ) |
| | |
| | | |
| | |
| Total deferred tax asset | |
$ | 3,375,903 | | |
$ | 1,294,472 | |
| Less: valuation allowance | |
| (3,375,903 | ) | |
| (1,294,472 | ) |
| Net deferred tax asset | |
$ | — | | |
$ | — | |
|
| Schedule of Effective Income Tax Rate Reconciliation |
A
reconciliation of the U.S. federal income tax rate to the Company’s effective tax rate is as follows:
Schedule of Effective Income Tax Rate Reconciliation
| | |
December 31, | | |
December 31, | |
| | |
2023 | | |
2022 | |
| Federal income tax benefit at statutory rate | |
| 21.0 | % | |
| 21.0 | % |
| State income tax benefit, net of federal tax effect | |
| 6.9 | % | |
| 7.0 | % |
| Change in tax rate | |
| 0.1 | % | |
| — | % |
| R&D tax credits | |
| 3.6 | % | |
| 1.4 | % |
| Return to provision adjustments | |
| (4.3 | )% | |
| (4.0 | )% |
| Permanent differences | |
| | | |
| | |
| Derivative Debt Discount Amortization | |
| (8.6 | )% | |
| — | % |
| Change in FMV of Warrant Liability | |
| 9.4 | % | |
| (4.3 | )% |
| Loss on convertible note conversion | |
| (2.0 | )% | |
| (10.1 | )% |
| Other | |
| (1.9 | )% | |
| (3.4 | )% |
| Change in valuation allowance | |
| (23.2 | )% | |
| (7.6 | )% |
| Shortfall of stock compensation expense | |
| (0.6 | )% | |
| — | % |
| Other adjustments | |
| (0.4 | )% | |
| — | % |
| Total income tax expense | |
| — | % | |
| — | % |
|