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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the Company's net deferred tax assets at December 31 are as follows:
20222021
Deferred Tax Assets
Net operating loss and tax credits$16,164,754 $16,817,070 
Property and equipment and intangibles264,653 222,893 
Operating lease liabilities1,121,800 — 
Intangible assets866,942 — 
Capitalized research cost1,481,455 — 
Allowance for accounts receivable145,803 83,931 
Reserve for expired product654,148 457,723 
Inventory217,025 104,824 
Deferred charges1,156,150 1,303,664 
Cumulative compensation costs incurred on deductible equity awards635,989 834,070 
Total deferred tax assets22,708,719 19,824,175 
Deferred Tax Liabilities
Operating lease right-of-use assets(1,150,935)— 
Intangible assets— (62,253)
Net deferred tax assets, before valuation allowance21,557,784 19,761,922 
Less: deferred tax asset valuation allowance(21,557,784)(19,761,922)
Net deferred tax assets$— $— 
The following table summarizes the amount and year of expiration of the Company's federal and state net operating loss carryforwards as of December 31, 2022:
Years of expirationFederalState
2023$— $251,811 
2024-204246,656,666 55,790,944 
Indefinite Period6,405,835 433,203 
Total federal and state net operating loss carryforwards$53,062,501 $56,475,958 
Income tax (expense) benefit includes the following components for the years ended December 31:
20222021
Current:
Federal$— $— 
State and other68,850 34,891 
Total current income tax (expense) benefit68,850 34,891 
Deferred:
Federal— 61,678 
State— (61,678)
Total deferred income tax (expense) benefit— — 
Total income tax (expense) benefit $68,850 $34,891 
The Company’s effective income tax rate for 2022 and 2021 reconciles with the federal statutory tax rate as follows:
 
20222021
Federal tax expense at statutory rate21 %21 %
State income tax expense (net of federal income tax benefit)2 %1 %
Permanent differences associated with general business credits— %— %
Change in valuation allowance(22)%(19)%
Other permanent differences(2)%(4)%
Other— %— %
Net income tax expense(1)%(1)%
The Company believes that it is not more likely than not that its net deferred tax assets will be realized. As such, the net deferred tax assets are fully offset with a valuation allowance as of the periods ended December 31, 2022 and 2021.
As of December 31, 2022, the Company has general business credit carryforwards of $1.5 million. These credit carryforwards will expire in years 2023 through 2042.
Years of expirationFederal
2023$200,825 
2024-20421,319,161 
Total federal and state credit carryforwards$1,519,986 
The Company expects it will continue to pay minimal taxes in future periods through the continued utilization of net operating loss carryforwards, as it is able to achieve taxable income through its operations.
The Company is no longer subject to U.S. federal tax examinations for tax years before 2019, and with few exceptions, the Company is not subject to examination by state tax authorities for tax years which ended before 2019. Loss carryforwards and credit carryforwards generated or utilized in years earlier than 2019 remain subject to examination and adjustment. During 2012, the 2009 federal tax return was examined by the Internal Revenue Service with no significant findings or adjustments. The Company has no unrecognized tax benefits at December 31, 2022 and 2021.