XML 39 R20.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company's net deferred tax assets at December 31 are as follows:
|  | 2024 |  | 2023
Deferred Tax Assets |  |  |  |
Net operating loss and tax credits |  | $ | 14,312,099 |  |  | $ | 15,427,801 |
Property and equipment and intangibles |  | 79,979 |  |  | 71,990 |
Right-of-use liability |  | 1,205,692 |  |  | 1,307,178 |
Intangible assets |  | 2,762,590 |  |  | 2,337,091 |
Section 174 expenses |  | 2,586,832 |  |  | 2,208,093 |
Allowance for accounts receivable |  | 306,007 |  |  | 147,919 |
Reserve for expired product |  | 649,549 |  |  | 616,979 |
Inventory |  | 266,695 |  |  | 185,189 |
Business interest expense limitation |  | 54,720 |  |  | — |
Deferred charges |  | 1,027,520 |  |  | 937,935 |
Cumulative compensation costs incurred on deductible equity awards |  | 83,189 |  |  | 176,926 |
Total deferred tax assets |  | 23,334,872 |  |  | 23,417,101 |
Deferred Tax Liabilities |  |  |  |
Right-of-use asset |  | (1,385,534) |  |  | (1,547,773) |
Net deferred tax assets, before valuation allowance |  | 21,949,338 |  |  | 21,869,328 |
Less: deferred tax asset valuation allowance |  | (21,949,338) |  |  | (21,869,328) |
Net deferred taxes |  | $ | — |  |  | $ | — |
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, 2024:
Years of expiration |  | Federal |  | State
2025 |  | $ | — |  |  | $ | 213,534 |
2026-2042 |  | 45,526,439 |  |  | 26,275,020 |
Indefinite Period |  | 7,143,930 |  |  | 3,299,837 |
Total federal and state net operating loss carryforwards |  | $ | 52,670,369 |  |  | $ | 29,788,391 |
Income tax expense (benefit) includes the following components for the years ended December 31:
|  | 2024 |  | 2023 |  |
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  |
State and other |  | (22,669) |  |  | 45,769 |  |  |
Total current income tax expense |  | (22,669) |  |  | 45,769 |  |  |
Deferred: |  |  |  |  |  |
Federal |  | — |  |  | — |  |  |
State |  | — |  |  | — |  |  |
Total deferred income tax expense |  | — |  |  | — |  |  |
Total income tax expense (benefit) |  | $ | (22,669) |  |  | $ | 45,769 |  |  |
The Company’s effective income tax rate for 2024 and 2023 reconciles with the federal statutory tax rate as follows:
|  | 2024 |  | 2023 |  |
Income tax expense computed at federal statutory tax rate |  | 21.00 | % |  | 21.00 | % |  |
State Taxes Net of Federal Benefit |  | 0.11 |  |  | (0.58) |  |  |
Tax Credits Generated |  | 3.31 |  |  | 0.80 |  |  |
Change in valuation allowance |  | (23.61) |  |  | (4.96) |  |  |
Permanent differences |  | (1.86) |  |  | (6.51) |  |  |
Expiring tax credits |  | (0.28) |  |  | (3.32) |  |  |
Deferred True-ups |  | 1.67 |  |  | (7.16) |  |  |
Net loss tax benefit (expense) |  | 0.34 | % |  | (0.73) | % |  |
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, 2024 and 2023. As of December 31, 2024, the Company has general business credit carryforwards of $1.5 million. These credit carryforwards will expire in years 2025 through 2044.
Years of expiration |  | Federal
2025 |  | $ | 25,323 |
2026-2044 |  | 1,518,577 |
Total federal and state credit carryforwards |  | $ | 1,543,900 |
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 2021, and with few exceptions, the Company is not subject to examination by state tax authorities for tax years which ended before 2021. Loss carryforwards and credit carryforwards generated or utilized in years earlier than 2021 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. During 2024, the 2022 federal tax return was selected for examination by the Internal Revenue Service. Based on the audit plan, the estimated completion date of this exam is July 31, 2025. The Company has no unrecognized tax benefits in 2024 and 2023.

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 tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: 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/1943274/2147477891/740-270-50-1 Reference 6: 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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: 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 11: 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 12: 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 13: 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 14: 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