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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
The (benefit) for income taxes consists of the following: | The (benefit) for income taxes consists of the following:
Year ended December 31, |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
State |  | $ | 14,248 |  |  | $ | 21,332 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (12,608,425 | ) |  |  | (6,428,448 | )
State |  |  | (755,237 | ) |  |  | (146,015 | )
Total |  | $ | (13,349,414 | ) |  | $ | (6,553,131 | )
The difference between the income tax provision computed at the federal statutory rate and the actual tax benefit is accounted for as follows: | The difference between the income tax provision computed at the federal statutory rate and the actual tax benefit is accounted for as follows:
December 31, |  | 2023 |  |  | 2022 |
Taxes computed at the federal statutory rate |  | $ | 808,876 |  |  | $ | 550,850 |
State income tax, net |  |  | (585,381 | ) |  |  | (98,499 | )
Research and development tax credit |  |  | (133,089 | ) |  |  | (190,656 | )
Change in valuation allowance |  |  | (13,531,626 | ) |  |  | (6,616,952 | )
Other |  |  | 88,308 |  |  |  | 51,696 |
Accrued loss reserve adjustment |  |  | — |  |  |  | (253,738 | )
Permanent differences |  |  | 3,498 |  |  |  | 4,168 |
Benefit for income taxes |  | $ | (13,349,414 | ) |  | $ | (6,553,131 | )
The components of deferred income tax assets and liabilities are as follows at December 31: | The components of deferred income tax assets and liabilities are as follows at December 31:
Deferred Tax Assets: |  | 2023 |  |  | 2022 (As Restated) |
Allowance for credit losses |  | $ | 20,632 |  |  | $ | 60,100 |
Capitalized R&D |  |  | 1,420,263 |  |  |  | 864,969 |
Credit carryforwards |  |  | 2,278,642 |  |  |  | 2,193,146 |
Inventory reserve |  |  | 350,073 |  |  |  | 722,991 |
Accrued payroll |  |  | 151,986 |  |  |  | 267,819 |
Loss contracts reserve |  |  | 75,402 |  |  |  | 46,205 |
Restricted stock |  |  | 94,809 |  |  |  | 92,677 |
Acquisition costs |  |  | 74,136 |  |  |  | 77,762 |
Lease liability |  |  | 1,139,836 |  |  |  | 1,469,551 |
Accrued legal |  |  | — |  |  |  | 159,849 |
Disallowed interest expense |  |  | 1,067,063 |  |  |  | 943,089 |
Net operating loss carryforward |  |  | 16,356,545 |  |  |  | 17,513,901 |
Other |  |  | 45,057 |  |  |  | 20,659 |
Deferred tax assets |  |  | 23,074,444 |  |  |  | 24,432,718 |
Valuation allowance |  |  | (569,143 | ) |  |  | (14,740,034 | )
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Prepaid expenses |  |  | 143,126 |  |  |  | 207,980 |
Revenue recognition |  |  | 1,224,106 |  |  |  | 1,341,105 |
Property and equipment |  |  | 140,449 |  |  |  | 178,107 |
ROU asset |  |  | 1,059,496 |  |  |  | 1,391,029 |
Deferred tax liabilities |  | $ | 2,567,177 |  |  | $ | 3,118,221 |
Net deferred tax assets |  | $ | 19,938,124 |  |  | $ | 6,574,463 |
Accordingly, we have restated the balances as previously reported, where needed, as follows: | During our review of the Company’s deferred income tax positions as of December 31, 2023, we determined that the following adjustments are needed to our previously reported December 31, 2022 deferred tax assets and liabilities balances, with no impact to our net deferred tax assets, due to the inadequate review, assessment of and reporting of the Company’s temporary differences between book and taxable income. More specifically, the adjustments are required due to computational errors and incomplete analyses. Accordingly, we have restated the balances as previously reported, where needed, as follows:
Deferred Tax Assets: |  | 2022 (as Previously Reported) |  |  | Restatement Adjustments |  |  | 2022 (As Restated) |
Allowance for credit losses |  | $ | 60,100 |  |  | $ | — |  |  | $ | 60,100 |
Capitalized R&D |  |  | 864,969 |  |  |  | — |  |  |  | 864,969 |
Credit carryforwards |  |  | 2,193,146 |  |  |  | — |  |  |  | 2,193,146 |
Inventory reserve |  |  | 1,130,788 |  |  |  | (407,797 | ) |  |  | 722,991 |
Accrued payroll |  |  | 267,819 |  |  |  | — |  |  |  | 267,819 |
Loss contracts reserve |  |  | 46,205 |  |  |  | — |  |  |  | 46,205 |
Restricted stock |  |  | 160,989 |  |  |  | (68,312 | ) |  |  | 92,677 |
Acquisition costs |  |  | 77,762 |  |  |  | — |  |  |  | 77,762 |
Lease liability |  |  | 1,469,551 |  |  |  | — |  |  |  | 1,469,551 |
Accrued legal |  |  | 159,849 |  |  |  | — |  |  |  | 159,849 |
Disallowed interest expense |  |  | 1,268,226 |  |  |  | (325,137 | ) |  |  | 943,089 |
Net operating loss carryforward |  |  | 19,493,530 |  |  |  | (1,979,629 | ) |  |  | 17,513,901 |
Other |  |  | 20,659 |  |  |  | — |  |  |  | 20,659 |
Deferred tax assets |  |  | 27,213,593 |  |  |  | (2,780,875 | ) |  |  | 24,432,718 |
Valuation allowance |  |  | (14,916,923 | ) |  |  | 176,889 |  |  |  | (14,740,034 | )
Deferred Tax Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Prepaid expenses |  |  | 207,980 |  |  |  | — |  |  |  | 207,980 |
Revenue recognition |  |  | 3,966,404 |  |  |  | (2,625,299 | ) |  |  | 1,341,105 |
Property and equipment |  |  | 156,794 |  |  |  | 21,313 |  |  |  | 178,107 |
ROU asset |  |  | 1,391,029 |  |  |  | — |  |  |  | 1,391,029 |
Deferred tax liabilities |  | $ | 5,722,207 |  |  | $ | (2,603,986 | ) |  | $ | 3,118,221 |
Net deferred tax assets |  | $ | 6,574,463 |  |  | $ | — |  |  | $ | 6,574,463 |

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