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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes The (benefit) provision for income taxes for the years ending December 31, 2023 and December 31, 2022 consists of: Schedule of (Benefit) Provision for Income Taxes
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Current |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
Foreign |  |  | 17,308 |  |  |  | — |
State |  |  | — |  |  |  | — |
Total current |  |  | 17,308 |  |  |  | — |
Deferred |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |
Foreign |  |  | — |  |  |  | — |
State |  |  | — |  |  |  | — |
Total deferred |  |  | — |  |  |  | — |
Total provision for income taxes |  | $ | 17,308 |  |  |  | — |
A reconciliation of income tax computed using the U.S. federal statutory tax rate compared to that reflected in operations for the years ending December 31, 2023 and December 31, 2022 consists of: Schedule of Reconciliation of Income Tax
|  | 2023 |  |  | 2022 |
|  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Income taxes using U.S. statutory rate |  | $ | (2,401,761 | ) |  |  | 21.00 | % |  | $ | (2,205,649 | ) |  |  | 21.00 | %
Debt fair value adjustment |  |  | 762,321 |  |  |  | (6.67 | )% |  |  | 262,500 |  |  |  | (2.50 | )%
State taxes, net of federal benefit |  |  | (538,268 | ) |  |  | 4.71 | % |  |  | (602,211 | ) |  |  | 5.73 | %
Research and development tax credit |  |  | (356,237 | ) |  |  | 3.11 | % |  |  | (433,674 | ) |  |  | 4.13 | %
Change in valuation allowance |  |  | 2,502,918 |  |  |  | (21.88 | )% |  |  | 2,889,667 |  |  |  | (27.51 | )%
Other, net |  |  | 48,335 |  |  |  | (0.42 | )% |  |  | 89,367 |  |  |  | (0.85 | )%
Income tax expenses (benefit) |  | $ | 17,308 |  |  | $ | (0.15 | )% |  | $ | — |  |  |  | — | %
AZITRA, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2023 and 2022 13. Income Taxes (continued) Deferred income taxes are provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and those for income tax reporting purposes. Deferred income tax assets / (liabilities) as of December 31, 2023 and 2022 are as follows: Schedule of Deferred Income Tax Assets and Liabilities
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 8,755,690 |  |  | $ | 7,870,665 |
Tax credits |  |  | 2,155,118 |  |  |  | 1,729,421 |
Depreciation and amortization |  |  | 2,372,070 |  |  |  | 1,189,975 |
Accrued expenses |  |  | 89,462 |  |  |  | 81,876 |
Other |  |  | 30,572 |  |  |  | 28,057 |
Total deferred tax assets |  | $ | 13,402,912 |  |  |  | 10,899,994 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | — |  |  |  | — |
Total deferred tax liabilities |  |  | — |  |  |  | — |
Valuation allowance |  |  | (13,402,912 | ) |  |  | (10,899,994 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
The Company has federal net operating loss carryforwards of approximately $32,529,000 and $29,192,000 for the tax years ending December 31, 2023 and 2022, respectively, of which $1,285,000 will expire in tax years 2036 through 2037 and approximately $31,244,000 which does not expire. The Company has state net operating loss carryforwards of approximately $32,484,000 and $29,374,000 for the tax years ending December 31, 2023 and 2022, respectively, which will expire in tax years 2037 through 2043. The Company has federal research tax credits of approximately $1,524,000 and $1,235,000 for the tax years ending December 31, 2023 and 2022, respectively, which expire in tax years 2039 through 2043. The Company has state research tax credits of approximately $466,000 and $350,000 for the tax years ending December 31, 2023 and 2022, respectively, of which $312,000 will expire in tax year 2036 through 2038 and the remainder can be carried forward indefinitely. The Company has Canadian research tax credits of approximately $263,000 and $218,000 for the tax years ending December 31, 2023 and 2022, respectively, which expire in tax years 2039 through 2043. The U.S. Internal Revenue Code Section 382 imposes an annual limit on the ability of a corporation that undergoes a greater than 50% ownership change to use its net operating loss carry forwards to reduce its tax liability. If in the future the Company undergoes an ownership change exceeding the 50% limitation threshold imposed by Section 382, the Company’s net operating loss carryforwards may be significantly limited as to the amount of use in a particular year. In addition, all or a portion of the Company’s net operating loss carryforwards incurred before 2018, may expire unutilized. AZITRA, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2023 and 2022 13. Income Taxes (continued) The realization of deferred tax assets is dependent upon the Company’s ability to generate future taxable income during the periods in which the temporary differences become deductible. Based on the Company’s recent earnings history and projected future U.S. earnings, management believes that it is more likely than not that its federal and state deferred tax assets will not be fully realized in the foreseeable future. As a result of this assessment, management believes that a full valuation allowance against its net federal and state deferred tax assets is required. The Company applies the provisions of ASC 740-10 to account for uncertain tax positions. ASC 740-10 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely that not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company has determined that it has no significant uncertain tax positions requiring recognition and measurement under ASC 740-10. The Company is subject to U.S. federal income tax, Connecticut state income tax and Canada branch tax. The Company has not been audited by the IRS, state, or foreign tax authorities in connection with income taxes. The Company’s tax years remain open to examination for all federal and state tax matters until its net operating loss carryforwards are utilized and the applicable statute of limitations have expired. The Company will recognize interest and penalties related to unrecognized tax benefits, if applicable, as a component of income tax expense.

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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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