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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.