XML 36 R18.htm IDEA: XBRL DOCUMENT
v3.24.3

Income Taxes | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jun. 30, 2024 | Dec. 31, 2023
Income Tax Disclosure [Abstract] |  |
Income Taxes | Note 10 – Income Taxes Schedule of Reconciliation of Income Tax Benefit Schedule of Components of Deferred Tax Assets Schedule of Effective Income Tax Rate Reconciliation | Note 10 – Income Taxes The Company has no income tax expense or benefit for the years ended December 31, 2023 and 2022, since the Company has a full valuation allowance for the net operating loss carryforwards in these periods. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized from such positions are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions to be reported for the tax years 2023 and 2022. The Tax Cuts and Jobs Act of 2017 (“TCJA”) amended IRC Section 174 to require capitalization of all research and development (“R&D”) costs incurred in tax years beginning after December 31, 2021. These costs are required to be amortized over five years if the R&D activities are performed in the U.S., or over 15 years if the activities were performed outside the U.S. For tax reporting purposes, the Company capitalized $3,517,485 and $1,488,530 of R&D expenses incurred as of December 31, 2023 and 2022, respectively. The reconciliation of income tax benefit at the U.S. statutory rate of 21% to the Company’s tax expense is as follows: Schedule of Reconciliation of Income Tax Benefit
|  | 2023 |  |  | 2022 |
|  | December 31, |  |  | December 31 |
|  | 2023 |  |  | 2022 (as restated) |
Federal tax benefit at statutory rate |  | $ | (1,384,472 | ) |  | $ | (1,049,174 | )
State income taxes, net of federal tax effect |  |  | (452,682 | ) |  |  | (351,022 | )
Rate change |  |  | (5,710 | ) |  |  | (409 | )
R & D tax credits |  |  | (240,000 | ) |  |  | (69,461 | )
Return to provision adjustments |  |  | 286,015 |  |  |  | 201,235 |
Permanent differences |  |  |  |  |  |  |  |
Derivative Debt Discount Amortization |  |  | 562,568 |  |  |  | — |
Change in FMV of Warrant Liability |  |  | (617,655 | ) |  |  | 217,926 |
Loss on convertible note conversion |  |  | 132,984 |  |  |  | 503,249 |
Other |  |  | 126,012 |  |  |  | 169,946 |
Change in valuation allowance |  |  | 1,535,466 |  |  |  | 377,709 |
Shortfall of stock compensation expense |  |  | 40,674 |  |  |  | — |
Other adjustments |  |  | 16,800 |  |  |  | 1 |
Income tax expense |  | $ | — |  |  | $ | — |
The principal components of deferred tax assets consist of the following: Schedule of Components of Deferred Tax Assets
|  | December 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 (as restated) |
Deferred tax asset: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 1,727,566 |  |  | $ | 751,844 |
Fixed assets |  |  | — |  |  |  | 804 |
Intangibles (includes Section 174 capitalization) |  |  | 1,197,938 |  |  |  | 405,172 |
R&D tax credits |  |  | 423,915 |  |  |  | 200,715 |
Equity based compensation |  |  | 1,251 |  |  |  | 11,626 |
Interest & other accrued expenses |  |  | 72,140 |  |  |  | 29,336 |
Lease asset/(liability) |  |  | 6,326 |  |  |  | 1,889 |
Total |  | $ | 3,429,136 |  |  | $ | 1,401,386 |
|  | December 31, |  |  | December 31, |
Deferred tax liabilities: |  | 2023 |  |  | 2022 (as restated) |
Change in fair market value of securities |  | $ | (19,943 | ) |  | $ | — |
Prepaid expenses |  |  | (30,544 | ) |  |  | (46,718 | )
State income tax deferred |  |  | — |  |  |  | (60,196 | )
Fixed assets |  |  | (2,746 | ) |  |  | — |
Total |  | $ | (53,233 | ) |  | $ | (106,914 | )
Total deferred tax asset |  | $ | 3,375,903 |  |  | $ | 1,294,472 |
Less: valuation allowance |  |  | (3,375,903 | ) |  |  | (1,294,472 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
A reconciliation of the U.S. federal income tax rate to the Company’s effective tax rate is as follows: Schedule of Effective Income Tax Rate Reconciliation
|  | December 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Federal income tax benefit at statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
State income tax benefit, net of federal tax effect |  |  | 6.9 | % |  |  | 7.0 | %
Change in tax rate |  |  | 0.1 | % |  |  | — | %
R&D tax credits |  |  | 3.6 | % |  |  | 1.4 | %
Return to provision adjustments |  |  | (4.3 | )% |  |  | (4.0 | )%
Permanent differences |  |  |  |  |  |  |  |
Derivative Debt Discount Amortization |  |  | (8.6 | )% |  |  | — | %
Change in FMV of Warrant Liability |  |  | 9.4 | % |  |  | (4.3 | )%
Loss on convertible note conversion |  |  | (2.0 | )% |  |  | (10.1 | )%
Other |  |  | (1.9 | )% |  |  | (3.4 | )%
Change in valuation allowance |  |  | (23.2 | )% |  |  | (7.6 | )%
Shortfall of stock compensation expense |  |  | (0.6 | )% |  |  | — | %
Other adjustments |  |  | (0.4 | )% |  |  | — | %
Total income tax expense |  |  | — | % |  |  | — | %
As of December 31, 2023, the Company had approximately $6.4 million and $5.9 million of net operating losses (“NOL”) carried forward to offset federal and state taxable income, if any, in the future. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized. NOLs created prior to 2018 could be carried back two years and carried forward 20 years. As amended by the Tax Cuts and Jobs Act of 2017 (TCJA), NOLs created after 2017 can no longer be carried back and are instead carried forward indefinitely. The Company has $139,813 and $238,380 of federal NOL carryforwards from 2016 and 2017, respectively, which begin to expire in 2036. The Company has an additional $6.0 million and $5.9 million of federal and state NOLs created after 2017, respectively, which can be carried forward indefinitely. The NOLs can be used to offset future income limited to the lesser of the NOL or 80% of the year’s taxable income. As of December 31, 2023, the Company has $360,715 of federal Research and Development (R&D) tax credits. These can be carried forward 20 years to offset future federal income tax. These begin to expire in 2037. Additionally, the Company has $80,000 of state R&D tax credits which can be carried forward seven years. These begin to expire in 2030.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: 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/1943274/2147477891/740-270-50-1 Reference 6: 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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: 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 11: 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 12: 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 13: 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 14: 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration