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INCOME TAXES (Tables)
 12 Months Ended
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