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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Note 11 – Income Taxes The components of the provision (benefit) for income taxes consists of the following for the years ended December 31, 2023 and 2022: Schedule of Components Income Tax Provision
|  | 2023 |  |  | 2022 |
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 84,435 |  |  | $ | 563,821 |
State |  |  | (540,240 | ) |  |  | (266,248 | )
Total current |  | $ | (455,805 | ) |  | $ | 297,573 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (7,228,611 | ) |  |  | (3,945,090 | )
State |  |  | (2,068,509 | ) |  |  | (961,468 | )
Change in valuation allowance |  |  | 6,975,234 |  |  |  | - |
Total deferred |  |  | (2,321,886 | ) |  |  | (4,906,558 | )
Total income tax benefit |  | $ | (2,777,691 | ) |  | $ | (4,608,985 | )
A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the financial statements is as follows: Schedule of Benefit from Income Taxes and Effective Tax Rates
|  | 2023 |  |  | 2022 |
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Federal income tax expense at statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
State income tax expense, net of federal tax benefit |  |  | 1.6 | % |  |  | 4.8 | %
Permanent differences: |  |  |  |  |  |  |  |
- Foreign derived intangible income deduction |  |  | 0.0 | % |  |  | 1.4 | %
- Stock based compensation |  |  | -3.5 | % |  |  | -3.6 | %
- Contingent consideration remeasurement |  |  | 0.6 | % |  |  | 8.8 | %
- Goodwill impairment |  |  | 0.0 | % |  |  | -17.1 | %
- Other permanent differences |  |  | -0.2 | % |  |  | -0.6 | %
Research and development credits |  |  | 4.6 | % |  |  | 11.1 | %
Change in uncertain tax positions |  |  | 1.2 | % |  |  | -2.1 | %
Change in valuation allowance |  |  | -18.3 | % |  |  | 0.0 | %
Other |  |  | 0.3 | % |  |  | 0.8 | %
Effective income tax rate |  |  | 7.3 | % |  |  | 24.5 | %
Net deferred tax liabilities consist of the following components as of December 31, 2023 and 2022: Schedule of Deferred Tax Assets and Liabilities
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued liabilities |  | $ | 58,158 |  |  | $ | 98,141 |
Reserves and allowances |  |  | 734,631 |  |  |  | 765,004 |
Deferred compensation |  |  | 620,551 |  |  |  | 566,076 |
Section 174 costs |  |  | 7,337,629 |  |  |  | 3,460,159 |
Lease liability |  |  | 742,131 |  |  |  | 85,899 |
UNICAP |  |  | 43,943 |  |  |  | 168,936 |
Net operating loss carryforwards |  |  | 4,040,601 |  |  |  | - |
Research and development credits |  |  | 1,688,255 |  |  |  | - |
Total gross deferred tax assets |  |  | 15,265,899 |  |  |  | 5,144,215 |
Less valuation allowance |  |  | (6,938,829 | ) |  |  | - |
Total deferred tax assets |  |  | 8,327,070 |  |  |  | 5,144,215 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment, net |  |  | (672,416 | ) |  |  | (609,261 | )
Intangibles, net |  |  | (6,552,255 | ) |  |  | (6,608,914 | )
Prepaids |  |  | (329,768 | ) |  |  | (156,053 | )
Right of use asset |  |  | (736,226 | ) |  |  | (91,873 | )
Other comprehensive income |  |  | (36,405 | ) |  |  | (96,101 | )
Other |  |  | - |  |  |  | - |
Total deferred tax liabilities |  |  | (8,327,070 | ) |  |  | (7,562,202 | )
Net deferred tax liability |  | $ | - |  |  | $ | (2,417,987 | )
At December 31, 2023, the Company had federal net operating loss carryforwards of $16.3 million and federal research and development credit carryforwards of $1.4 million. At December 31, 2023, the Company had state net operating loss carryforwards of $16.9 million and $0.8 million of state research and development credit carryforwards. If unused, the state research credit carryforward will expire in 2037. ASC Topic 740-10-05 requires that the impact of a tax position be recognized in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Our unrecognized tax benefit balances included $1,078,431 at December 31, 2023 and $1,469,577 at December 31, 2022 of tax positions that, if recognized, would impact our effective tax rate. The Company expects no material changes to the liability for unrecognized tax benefits in the next 12 months. Interest and penalties associated with uncertain tax positions are recorded as a component of income tax expense. A reconciliation of the beginning and ending amount of unrecognized benefits is as follows: Schedule of Unrecognized Tax Benefits
|  | December 31, |
|  | 2023 |  |  | 2022 |
Unrecognized tax benefits at the beginning of the year |  | $ | 1,469,577 |  |  | $ | 1,067,853 |
Gross increases - current year tax positions |  |  | 273,569 |  |  |  | 1,045,590 |
Gross increases - prior year tax positions |  |  | 66,127 |  |  |  | 34,035 |
Gross decreases - prior year tax positions |  |  | (730,842 | ) |  |  | (677,901 | )
Unrecognized tax benefits at end of year |  | $ | 1,078,431 |  |  | $ | 1,469,577 |
Interest and penalties in year-end balance |  | $ | 100,162 |  |  | $ | 34,035 |
The Company is subject to taxation in the United States and other state jurisdictions. The tax years from December 31, 2020 through December 31, 2023 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject. The Company is not currently under examination by any taxing authority.

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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 -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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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
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