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Note 4 - Income Taxes | 12 Months Ended
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Dec. 31, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 4: Income Taxes For the year ended December 31, 2022, there was no provision for income taxes or unrecognized tax benefits recorded. The significant components of gain (loss) before income taxes are as follows:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |
U.S. operations |  | $ | (9,828,427 | ) |  | $ | (13,115,869 | )
Foreign operations |  |  | 93,169 |  |  |  | 45,618 |
Total loss before provision for income taxes |  | $ | (9,735,258 | ) |  | $ | (13,070,251 | )
The Company has no current or deferred income tax for the years ended December 31, 2022 and 2021. The income tax provision differs from the expense amount that would result from applying the federal statutory rates to income before income taxes due to permanent differences, state income taxes and a change in the deferred tax valuation allowance. The reconciliation between the statutory tax rate and the Company’s actual effective tax rate is as follows:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |
Tax at U.S. statutory rate |  |  | (21.00 | )% |  |  | (21.00 | )%
State taxes, net of federal benefit |  |  | (4.35 | ) |  |  | (4.52 | )
Non-deductible items |  |  | — |  |  |  | (0.84 | )
Change in valuation allowance |  |  | 24.77 |  |  |  | 28.09 |
True-up adjustment |  |  | 0.34 |  |  |  | 0.06 |
Foreign operations |  |  | 0.24 |  |  |  | 0.09 |
Change in tax rate |  |  | — |  |  |  | (1.88 | )
Other |  |  | — |  |  |  | — |
Effective income tax rate |  |  | — | % |  |  | — | %
The significant components of the Company’s net deferred income tax assets are as follows:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Stock option expense |  | $ | 1,341,900 |  |  | $ | 947,400 |
NOL carryforward |  |  | 11,524,900 |  |  |  | 10,509,900 |
Research and development credits |  |  | 1,623,100 |  |  |  | 1,656,500 |
Section 174 - R&D expenses |  |  | 1,046,400 |  |  |  | — |
Unrealized gain from investment in Alphazyme |  |  | — |  |  |  | (72,100 | )
Other |  |  | (78,200 | ) |  |  | (6,100 | )
Deferred tax asset, net of deferred tax liabilities |  |  | 15,458,100 |  |  |  | 13,035,600 |
Valuation allowance |  |  | (15,458,100 | ) |  |  | (13,035,600 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, Management evaluates whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on Management’s evaluation, the net deferred tax asset, was offset by a full valuation allowance as of December 31, 2022 and 2021. The Company had net operating loss (“NOL”) carryforwards available as of December 31, 2022, and 2021, in the amount of approximately $44.0 million and $39.9 million, respectively. Approximately $41.1 million of the net operating loss carryforwards will be carried forward indefinitely and will be available to offset 80% of taxable income. The remaining amount of the net operating loss carryforwards will expire at varying dates through 2037. The Tax Cuts and Jobs Act eliminated the current year deduction election for research and experimental expenditures. Instead, a taxpayer must charge such expenditures to a capital account and is allowed to amortize such expenditures ratably over a five-year period (or fifteen-year period for expenditures attributable to foreign research), beginning with the midpoint of the tax year in which such expenditures are paid or incurred.

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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