Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| 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, |
|
| |
|
2023 |
|
|
2022 |
|
| Domestic |
|
$ |
(20,025,289 |
) |
|
$ |
(37,727,021 |
) |
| International |
|
|
(2,259,237 |
) |
|
|
(1,941,987 |
) |
| |
|
$ |
(22,284,526 |
) |
|
$ |
(39,669,008 |
) |
|
| 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, |
|
| |
|
2023 |
|
|
2022 |
|
| Deferred tax benefits: |
|
|
|
|
|
|
| Domestic: |
|
|
|
|
|
|
| Federal |
|
$ |
4,004,891 |
|
|
$ |
4,057,936 |
|
| State |
|
|
1,399,496 |
|
|
|
1,343,123 |
|
| International |
|
|
591,583 |
|
|
|
353,038 |
|
| |
|
|
5,995,970 |
|
|
|
5,754,097 |
|
| Change in valuation allowance |
|
|
(3,646,556 |
) |
|
|
(4,811,348 |
) |
| Net income tax benefit |
|
$ |
2,349,414 |
|
|
$ |
942,749 |
|
|
| Schedule of United States Federal Statutory Rate |
Certain deferred tax assets
are denominated in currencies other than the US dollar and are subject to foreign currency translation adjustments. The provision for
income taxes differs from the United States Federal statutory rate as follows:
| |
|
For the Years Ended |
|
| |
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
| US Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
| Difference between domestic and foreign federal rates |
|
|
(0.2 |
)% |
|
|
(0.1 |
)% |
| State and provincial taxes, net of federal benefits |
|
|
6.3 |
% |
|
|
6.6 |
% |
| Permanent differences: |
|
|
|
|
|
|
|
|
| Goodwill impairment |
|
|
- |
|
|
|
(23.7 |
)% |
| Change in the fair value of derivatives and accrued issuable equity |
|
|
0.4 |
% |
|
|
10.7 |
% |
| Other |
|
|
(0.5 |
)% |
|
|
- |
|
| Change in valuation allowance |
|
|
(16.4 |
)% |
|
|
(12.1 |
)% |
| Effective income tax rate |
|
|
10.6 |
% |
|
|
2.4 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities
consist of the following:
| |
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
| Deferred tax assets: |
|
|
|
|
|
|
| Net operating loss carryforwards |
|
$ |
16,460,534 |
|
|
$ |
13,399,384 |
|
| Amortization |
|
|
318,546 |
|
|
|
165,476 |
|
| Accrued compensation not currently deductible |
|
|
75,638 |
|
|
|
343,787 |
|
| Stock compensation |
|
|
2,126,581 |
|
|
|
1,588,866 |
|
| Accrued interest |
|
|
150,502 |
|
|
|
150,502 |
|
| Reserve for uncollectible notes receivable |
|
|
162,770 |
|
|
|
- |
|
| Organizational costs deferred for tax purposes |
|
|
8,125 |
|
|
|
8,125 |
|
| |
|
|
19,302,696 |
|
|
|
15,656,140 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Difference between book and tax basis related to: |
|
|
|
|
|
|
|
|
| Technology license |
|
|
(351,791 |
) |
|
|
(368,587 |
) |
| Acquired in-process research and development |
|
|
- |
|
|
|
(2,332,618 |
) |
| Other |
|
|
(639,726 |
) |
|
|
(555,880 |
) |
| |
|
|
(991,517 |
) |
|
|
(3,257,085 |
) |
| |
|
|
|
|
|
|
|
|
| Total of deferred tax assets and liabilities |
|
|
18,311,179 |
|
|
|
12,399,055 |
|
| Valuation allowance |
|
|
(18,662,970 |
) |
|
|
(15,016,414 |
) |
| Total of deferred tax assets and liabilities, net |
|
$ |
(351,791 |
) |
|
$ |
(2,617,359 |
) |
|
| 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, |
|
| |
|
2023 |
|
|
2022 |
|
| Beginning of period |
|
$ |
(15,016,414 |
) |
|
$ |
(9,072,118 |
) |
| Change in valuation pursuant to the tax provision |
|
|
(3,732,408 |
) |
|
|
(4,811,348 |
) |
| True-up to a prior year’s tax return |
|
|
85,851 |
|
|
|
(1,132,948 |
) |
| End of period |
|
$ |
(18,662,971 |
) |
|
$ |
(15,016,414 |
) |
|