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Note 9 - Income Taxes
 12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
9.
Income Taxes
 
At
December 31, 2021,
we have a consolidated federal net operating loss (“NOL”) carryforward of approximately
$75.2
million available to offset against future taxable income of which approximately
$48.9
million expires in varying amounts in
2022
through
2037.
Additionally, we have approximately
$1.6
million in research and development (“R&D”) tax credits that expire in
2022
through
2041
unless utilized earlier.
No
income taxes have been paid to date. Section
382
of the Internal Revenue Code contains provisions that
may
limit our utilization of our NOL and R&D tax credit carryforwards in any given year as a result of significant changes in ownership interests that have occurred in past periods or
may
occur in future periods.
 
Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities included the following at
December 31, 2021
and
2020:
 
   
2021
    
2020
  
Deferred tax assets:
                
Net operating loss carryforward
   $
18,449,694
     $
14,737,240
  
Research and development tax credit carryforward
    
1,566,293
      
1,189,110
  
Stock-based compensation expense
    
129,475
      
4,870
  
Accrued salaries
    
69,940
      
72,721
  
Total deferred tax assets
    
20,215,402
      
16,003,941
  
Deferred tax liabilities
                
Depreciation
    
30,945
      
28,274
  
Net deferred tax assets
    
20,184,457
      
15,975,667
  
Valuation allowance
    
(20,184,457
 )    
(15,975,667
 )
Net deferred tax asset after reduction for valuation allowance
   $
-0-
     $
-0-
  
 
We have established a full valuation allowance equal to the amount of our net deferred tax assets due to uncertainties with respect to our ability to generate sufficient taxable income to realize these assets in the future. A reconciliation of the income tax benefit on losses at the U.S. federal statutory rate to the reported income tax expense is as follows:
 
   
2021
    
2020
  
U.S. federal statutory rate applied to pretax loss
   $
(3,899,767
 )   $
(621,194
 )
Permanent differences
    
-
      
65
  
Research and development credits
    
(377,183
 )    
(66,574
 )
Change in valuation allowance, net of expired items and other adjustments
    
4,276,950
      
687,703
  
Reported income tax expense
   $
-0-
     $
-0-