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Income Taxes | 9 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | (12) Income Taxes Cingulate Inc. is taxed as a C corporation under the Internal Revenue Code. Cingulate Inc. records deferred income taxes to reflect the impact of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. CTx is a wholly-owned disregarded entity of Cingulate Inc., and all of the activity for CTx, along with its wholly-owned subsidiary Cingulate Works Inc., is included in the calculation of the current and deferred tax assets and liabilities for Cingulate Inc. No deferred income tax benefit or expense was recorded as of September 30, 2022, for federal or state income taxes. Income tax expense differed from the expected expense computed by applying the U.S. Federal income tax rate as follows: Schedule of Effective Income Tax Rate Reconciliation
|  | Nine Months Ended |  |  | Three Months Ended |
|  | September 30, 2022 |  |  | September 30, 2022 |
Federal income tax benefit at statutory rate |  | $ | (2,733,779 | ) |  | $ | (845,722 | )
State income tax benefit |  |  | (719,896 | ) |  |  | (222,707 | )
Permanent differences |  |  | 11,920 |  |  |  | 3,157 |
Change in valuation allowance |  |  | 3,685,697 |  |  |  | 1,246,403 |
Research and development tax credit adjustment |  |  | (131,681 | ) |  |  | (131,681 | )
Other |  |  | (112,261 | ) |  |  | (49,450 | )
Total income tax expense |  | $ | - |  |  | $ | - |
Evaluating the need for, and amount of, a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence on a jurisdiction-by-jurisdiction basis. Such judgments require the Company to interpret existing tax law and other published guidance as applied to its circumstances. As part of this assessment, the Company considers both positive and negative evidence about its profitability and tax situation. A valuation allowance is provided if, based on available evidence, it is more likely than not that all or some portion of a deferred tax asset will not be realized. The Company determined that it was more likely than not that it would not realize its deferred tax assets, based on historical levels of income and future forecasts of taxable income, among other items. The Company recorded a valuation allowance of its net deferred tax assets totaling $4,532,968 as of September 30, 2022 and $847,269 at December 31, 2021, which was recorded as a component of income tax expense on the accompanying consolidated statements of operations and other comprehensive loss. The Company files income tax returns in the U.S. federal and various state jurisdictions. The Companies are not subject to U.S. federal and state income tax examinations by tax authorities for years before 2018. The Company follows the provisions of FASB ASC 740, Income Taxes, to evaluate uncertain tax positions. This topic prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has not identified any material uncertain tax positions requiring recognition in the consolidated financial statements as of September 30, 2022. Schedule of Deferred Tax Assets and Liabilities
|  | September 30, 2022 |  |  | December 31, 2021 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Contingent liability |  | $ | 71,550 |  |  | $ | - |
Other |  |  | - |  |  |  | 4,050 |
Non-current: |  |  |  |  |  |  |  |
Net operating losses |  |  | 2,616,726 |  |  |  | 1,201,974 |
Research and development costs |  |  | 1,694,249 |  |  |  | - |
Unvested stock options |  |  | 172,313 |  |  |  | 11,835 |
Research and development tax credits |  |  | 131,681 |  |  |  | - |
Patents |  |  | 104,726 |  |  |  | 90,480 |
Other |  |  | 69,010 |  |  |  | 49,606 |
Gross deferred income tax assets |  |  | 4,860,255 |  |  |  | 1,357,945 |
Less: valuation allowance |  |  | (4,532,968 | ) |  |  | (847,269 | )
Net deferred income tax asset |  |  | 327,287 |  |  |  | 510,676 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Accrual to cash |  |  | (3,843 | ) |  |  | (105,075 | )
Non-current |  |  |  |  |  |  |  |
Property and equipment |  |  | (323,444 | ) |  |  | (405,601 | )
Gross deferred income tax liabilities |  |  | (327,287 | ) |  |  | (510,676 | )
Net deferred tax asset (liability) |  | $ | - |  |  | $ | - |

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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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