XML 38 R23.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 16 – INCOME TAXES As of December 31, 2023, the Company had consolidated income tax net operating loss (“NOL”) carryforwards for federal tax purposes of approximately $212,425,199 and net operating loss carryforwards for foreign income tax purposes of approximately $46,098,050. The federal NOL carryforwards from 2005 forward will expire in various years beginning 2025 and ending through the year 2035. From 2025 through 2027, approximately $29 million of the NOL will expire, and from 2028 through 2037, approximately $128 million of the NOL will expire. The NOL generated in 2018 through 2023 of approximately $55 million will be carried forward indefinitely. The components of the provision for income tax (benefits) are attributable to continuing operations as follows:
|  | December 31, 2023 |  |  | December 31, 2022 (As Restated) |
Current |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | — |
Deferred |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | — |
Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | December 31, 2023 |  |  | December 31, 2022 (As Restated) |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss and tax credit carryforwards |  | $ | 67,688,664 |  |  | $ | 64,609,834 |
Start-up costs |  |  | — |  |  |  | 6,033 |
Excess of book over tax depreciation |  |  | 39,070 |  |  |  | 206,998 |
Stock option and restricted stock award expense |  |  | 1,799,988 |  |  |  | 1,806,546 |
Debt Extinguishment |  |  | 61,946 |  |  |  | 61,945 |
Less: valuation allowance |  |  | (69,345,930 | ) |  |  | (66,461,662 | )
|  | $ | 243,738 |  |  | $ | 229,694 |
Deferred tax liability: |  |  |  |  |  |  |  |
Property and equipment basis |  | $ | 84,020 |  |  | $ | 50,174 |
Prepaid expenses |  |  | 159,718 |  |  |  | 179,520 |
|  | $ | 243,738 |  |  | $ | 229,694 |
Net deferred tax asset |  | $ | — |  |  | $ | — |
As reflected above, we have recorded a net deferred tax asset of $0 at December 31, 2023. As required by the Accounting for Income Taxes topic in the ASC, we have evaluated whether it is more likely than not that the deferred tax assets will be realized. Based on the available evidence, we have concluded that it is more likely than not that those assets would not be realized without the recognition of substantial taxable income in the future, thus a valuation allowance has been recorded as of December 31, 2023. The change in the valuation allowance is as follows:
December 31, 2023 |  | $ | 69,345,930 |
December 31, 2022 |  |  | 66,461,662 |
Change in valuation allowance |  | $ | (2,884,268 | )
The federal and state income tax provision (benefit) is summarized as follows for the years ended:
|  | December 31, 2023 |  |  | December 31, 2022 (Restated) |
Expected (benefit) |  | $ | 1,122,622 |  |  | $ | (4,636,770 | )
Effects of: |  |  |  |  |  |  |  |
State income taxes net of federal benefits |  |  | 294,020 |  |  |  | (1,214,392 | )
Nondeductible expense |  |  | 698,160 |  |  |  | 78,422 |
Subpart F income |  |  | 6,418,307 |  |  |  | 33,040 |
Equity method investment |  |  |  |  |  |  | — |
Derivatives fair value |  |  | 2,200,259 |  |  |  | 2,627,355 |
Change in valuation allowance |  |  | (1,721,451 | ) |  |  | 6,249,059 |
Foreign rate differential |  |  | (9,011,917 | ) |  |  | (3,136,714 | )
|  | $ | — |  |  | $ | — |
The Company’s effective income tax rate is lower than what would be expected if the federal statutory rate were applied to income before income taxes primarily because of certain expenses deductible for financial reporting purposes that are not deductible for tax purposes, research and development tax credits, operating loss carryforwards, and adjustments to previously-recorded deferred tax assets and liabilities due to the enactment of the Tax Cuts and Jobs Act. We have not recognized a material adjustment in the liability for unrecognized tax benefits and have not recorded any provisions for accrued interest and penalties related to uncertain tax positions. The earliest tax year still subject to examination by a major taxing jurisdiction is 2019.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration