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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company's net deferred tax assets at December 31 are as follows:
|  | 2023 |  | 2022
Deferred Tax Assets |  |  |  |
Net operating loss and tax credits |  | $ | 15,427,801 |  |  | $ | 16,164,754 |
Property and equipment and intangibles |  | 71,990 |  |  | 264,653 |
Operating lease liabilities |  | 1,307,178 |  |  | 1,121,800 |
Intangible assets |  | 2,337,091 |  |  | 866,942 |
Capitalized research cost |  | 2,208,093 |  |  | 1,481,455 |
Allowance for accounts receivable |  | 147,919 |  |  | 145,803 |
Reserve for expired product |  | 616,979 |  |  | 654,148 |
Inventory |  | 185,189 |  |  | 217,025 |
Deferred charges |  | 937,935 |  |  | 1,156,150 |
Cumulative compensation costs incurred on deductible equity awards |  | 176,926 |  |  | 635,989 |
Total deferred tax assets |  | 23,417,101 |  |  | 22,708,719 |
Deferred Tax Liabilities |  |  |  |
Operating lease right-of-use assets |  | (1,547,773) |  |  | (1,150,935) |
Intangible assets |  | — |  |  | — |
Net deferred tax assets, before valuation allowance |  | 21,869,328 |  |  | 21,557,784 |
Less: deferred tax asset valuation allowance |  | (21,869,328) |  |  | (21,557,784) |
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, 2023:
Years of expiration |  | Federal |  | State
2024 |  | $ | — |  |  | $ | 30,756,304 |
2025-2042 |  | 45,709,390 |  |  | 28,333,628 |
Indefinite Period |  | 6,405,835 |  |  | 473,278 |
Total federal and state net operating loss carryforwards |  | $ | 52,115,225 |  |  | $ | 59,563,210 |
Income tax expense includes the following components for the years ended December 31:
|  | 2023 |  | 2022 |  |
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  |
State and other |  | 45,769 |  |  | 68,850 |  |  |
Total current income tax expense |  | 45,769 |  |  | 68,850 |  |  |
Deferred: |  |  |  |  |  |
Federal |  | — |  |  | — |  |  |
State |  | — |  |  | — |  |  |
Total deferred income tax expense |  | — |  |  | — |  |  |
Total income tax expense |  | $ | 45,769 |  |  | $ | 68,850 |  |  |
The Company’s effective income tax rate for 2023 and 2022 reconciles with the federal statutory tax rate as follows:
|  | 2023 |  | 2022 |  |
Federal tax expense at statutory rate |  | $ | 21.00 |  |  | $ | 21.00 |  |  |
State income tax expense (net of federal income tax benefit) |  | (0.58) |  |  | 2.11 |  |  |
Permanent differences associated with general business credits |  | 0.80 |  |  | — |  |  |
Change in valuation allowance |  | (4.96) |  |  | (21.76) |  |  |
Other permanent differences |  | (6.51) |  |  | (2.58) |  |  |
Expiring tax credits |  | (3.32) |  |  | — |  |  |
Deferred True-ups |  | (7.16) |  |  | — |  |  |
Net loss tax expense |  | $ | (0.73) |  |  | $ | (1.23) |  |  |
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, 2023 and 2022. As of December 31, 2023, the Company has general business credit carryforwards of $1.3 million. These credit carryforwards will expire in years 2024 through 2044.
Years of expiration |  | Federal
2024 |  | $ | 18,370 |
2025-2044 |  | 1,322,531 |
Total federal and state credit carryforwards |  | $ | 1,340,901 |
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 2020, and with few exceptions, the Company is not subject to examination by state tax authorities for tax years which ended before 2020. Loss carryforwards and credit carryforwards generated or utilized in years earlier than 2020 remain subject to examination and adjustment. The Company has no unrecognized tax benefits in 2023 and 2022.

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