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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 13. Income Taxes The Company’s pre-tax income (loss) by jurisdiction was as follows for the years ending December 31, 2024 and December 31, 2023: Schedule of Pre-tax Income (Loss) by Jurisdiction
|  | 2024 |  |  | 2023 |
|  | Year ended December 31, 2023 |
|  | 2024 |  |  | 2023 |
Domestic |  | $ | (25,047,740 | ) |  | $ | (25,567,244 | )
Foreign |  |  | (3,513,957 | ) |  |  | 3,545 |
Total |  |  | (28,561,697 | ) |  |  | (25,563,699 | )
The provision for income taxes for continuing operations for the year ended December 31, 2024 and 2023 consist of the following Schedule of Income Tax for Continuing Operations
|  | 2024 |  |  | 2023 |
|  | Year ended December 31, 2024 |
|  | 2024 |  |  | 2023 |
Current Income Taxes |  |  |  |  |  |  |  |
Federal |  | $ | 0 |  |  | $ | 0 |
State |  |  | 26,315 |  |  |  | 60,000 |
Foreign |  |  | 0 |  |  |  | 0 |
Total current income taxes |  |  | 26,315 |  |  |  | 60,000 |
Deferred Income Taxes |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | - |
Total deferred income taxes |  |  | - |  |  |  | - |
Total Income Tax Expense (benefit) |  | $ | 26,315 |  |  | $ | 60,000 |
A reconciliation between the amount of reported income tax expense (benefit) and the amount computed by multiplying income from continuing operations before income taxes by the statutory federal income tax rate is shown below. Income tax expense for the year ended December 31, 2024 includes state minimum taxes, permanent differences, and deferred tax assets for which a full valuation allowance has been placed. Schedule of Increase in the Valuation Allowance
|  | 2024 |  |  | 2023 |
|  | Year ended December 31, 2024 |
|  | 2024 |  |  | 2023 |
Tax Expense at statutory federal rate of 21% |  | $ | (5,510,503 | ) |  | $ | (5,369,121 | )
State income taxes, net of federal income tax benefit |  |  | 26,315 |  |  |  | 60,000 |
Foreign Rate Differential |  |  | 319 |  |  |  | 319 |
Permanent Differences |  |  | 1,203,361 |  |  |  | 1,203,361 |
Other - Misc. |  |  |  |  |  |  |  |
Change in Valuation Allowance |  |  | 4,306,823 |  |  |  | 4,165,441 |
Income tax expense (benefit) |  |  | 26,315 |  |  |  | 60,000 |
Deferred income taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. The following table discloses those significant components of our deferred tax assets and liabilities, including any valuation allowance: Schedule of Deferred Tax Assets and Liabilities
|  | 2024 |  |  | 2023 |
Long-term deferred tax assets: |  |  |  |  |  |  |  |
Federal Net Operating Loss Carryforwards |  | $ | 36,378,116 |  |  | $ | 36,378,116 |
Intangible Assets |  |  | 1,492,426 |  |  |  | 1,492,426 |
Accrued Compensation & Benefits |  |  | 863,049 |  |  |  | 863,049 |
Foreign Net Operating Loss Carryforwards |  |  | 773,134 |  |  |  | 773,134 |
Stock Compensation |  |  | - |  |  |  | - |
State Net Operating Loss Carryforwards |  |  | - |  |  |  | - |
Other |  |  | 19,540 |  |  |  | 19,540 |
Total deferred tax assets before valuation allowance |  |  | 39,526,265 |  |  |  | 39,526,265 |
|  |  | - |  |  |  | - |
Deferred tax liabilities: |  |  | - |  |  |  | - |
Fixed Assets |  |  | 316 |  |  |  | 316 |
Intangible Assets |  |  | - |  |  |  | - |
Total deferred tax liabilities |  |  | 316 |  |  |  | 316 |
Valuation Allowance |  |  | (39,525,950 | ) |  |  | (39,525,950 | )
Net deferred tax assets and liabilities |  | $ | - |  |  | $ | - |
For the year ended December 31, 2024, the valuation allowance increased by $10,265,807. The Company believes a full valuation allowance against the net deferred tax asset is appropriate at this time. The Company will continue to evaluate the realizability of its deferred tax assets in future years. At December 31, 2024, our carryforwards available to offset future taxable income consisted of federal net operating loss (“NOL”) carryforwards of approximately $173,229,125. Of this total $22,050,149 expires between 2035 and 2037 and $151,178,976 of which has no expiration date. We account for uncertain tax positions in accordance with ASC 740-10-25, which prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. We have not recorded any unrecognized tax benefits as of December 31, 2024. Our practice is to recognize interest and penalties related to income tax matters in income tax expense in our consolidated statements of operations. The Company files U.S. federal and state returns. The Company’s foreign subsidiaries also file local tax returns in their jurisdiction. From a U.S. federal, state, Mexican and United Kingdom perspective the years that remain open to examination are consistent with each jurisdiction’s statute of limitations. The Company has not filed its 2023 and 2024 U.S. federal and state corporate income tax returns. The Company’s foreign subsidiaries in Mexico and the United Kingdom are current with the filing of their tax returns through 2023. The Company expects to file U.S. federal and state tax returns for 2023 and 2024 as soon as possible. While the Company is in a net loss position and expects no income tax amounts to be due except for minimum state and local income taxes, the Company is at risk of penalties for failure to file. As of the date of this Report, the Company has not been informed that such penalties have been assessed, therefore no accrual for such has been recorded in the Company’s financial statements. The Company’s federal income tax returns for the years 2020-2023 remain subject to examination by the Internal Revenue Service. The state returns for 2019-2023 are also open for examination.

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