Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Taxes [Abstract] |
|
| Schedule of Losses Before Income Taxes Consist of the Following Domestic and International Components |
The losses before income taxes consist of the following domestic and
international components:
| |
|
For the Years Ended |
|
| |
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Domestic |
|
$ |
(4,798,196 |
) |
|
$ |
(20,025,289 |
) |
| International |
|
|
(1,666,005 |
) |
|
|
(2,259,237 |
) |
| |
|
$ |
(6,464,201 |
) |
|
$ |
(22,284,526 |
) |
|
| Schedule of Income Taxes Consists of the Following Benefits (Provisions) |
The provision for income taxes consists of the following benefits:
| |
|
For the Years Ended |
|
| |
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Deferred tax benefits: |
|
|
|
|
|
|
| Domestic: |
|
|
|
|
|
|
| Federal |
|
$ |
1,534,308 |
|
|
$ |
4,004,891 |
|
| State |
|
|
137,469 |
|
|
|
1,399,496 |
|
| International |
|
|
(490,178 |
) |
|
|
591,583 |
|
| |
|
|
1,181,599 |
|
|
|
5,995,970 |
|
| Change in valuation allowance |
|
|
(885,575 |
) |
|
|
(3,646,556 |
) |
| Net income tax benefit |
|
$ |
296,024 |
|
|
$ |
2,349,414 |
|
|
| Schedule of United States Federal Statutory Rate |
The provision for
income taxes differs from the United States Federal statutory rate as follows:
| |
|
For the Years Ended |
|
| |
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| US Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
| Difference between domestic and foreign federal rates |
|
|
(1.3 |
)% |
|
|
(0.2 |
)% |
| State and provincial taxes, net of federal benefits |
|
|
3.1 |
% |
|
|
6.3 |
% |
| Permanent differences: |
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
(1.0 |
)% |
|
|
- |
% |
| Change in the fair value of derivatives and accrued issuable equity |
|
|
(5.6 |
)% |
|
|
0.4 |
% |
| Other |
|
|
4.0 |
% |
|
|
(0.5 |
)% |
| Change in valuation allowance |
|
|
(15.1 |
)% |
|
|
(16.4 |
)% |
| Effective income tax rate |
|
|
5.0 |
% |
|
|
10.6 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities
consist of the following:
| |
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Deferred tax assets: |
|
|
|
|
|
|
| Net operating loss carryforwards |
|
$ |
17,520,749 |
|
|
$ |
16,460,534 |
|
| Amortization |
|
|
567,589 |
|
|
|
318,546 |
|
| Accrued compensation not currently deductible |
|
|
- |
|
|
|
75,638 |
|
| Stock compensation |
|
|
2,098,598 |
|
|
|
2,126,581 |
|
| Accrued interest |
|
|
16,461 |
|
|
|
150,502 |
|
| Reserve for uncollectible notes receivable |
|
|
28,061 |
|
|
|
162,770 |
|
| Organizational costs deferred for tax purposes |
|
|
- |
|
|
|
8,125 |
|
| Other |
|
|
510,298 |
|
|
|
- |
|
| |
|
|
20,741,756 |
|
|
|
19,302,696 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Difference between book and tax basis related to: |
|
|
|
|
|
|
|
|
| Technology license |
|
|
- |
|
|
|
(351,791 |
) |
| Other |
|
|
(1, 210,157) |
|
|
|
(639,726 |
) |
| |
|
|
(1,210,157 |
) |
|
|
(991,517 |
) |
| |
|
|
|
|
|
|
|
|
| Total of deferred tax assets and liabilities |
|
|
19,531,599 |
|
|
|
18,311,179 |
|
| Valuation allowance |
|
|
(19,531,599 |
) |
|
|
(18,662,970 |
) |
| Total of deferred tax assets and liabilities, net |
|
$ |
- |
|
|
$ |
(351,791 |
) |
|
| Schedule of Valuation Reserve for Deferred Tax Assets |
The change in the valuation
reserve for deferred tax assets consists of the following:
| |
|
For the Years Ended |
|
| |
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Beginning of period |
|
$ |
(18,662,971 |
) |
|
$ |
(15,016,414 |
) |
| Change in valuation pursuant to the tax provision |
|
|
(1,170,373 |
) |
|
|
(3,732,408 |
) |
| True-up to a prior year’s tax return |
|
|
301,745 |
|
|
|
85,851 |
|
| End of period |
|
$ |
(19,531,599 |
) |
|
$ |
(18,662,971 |
) |
|