Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of components of income (loss) before the income tax provision (benefit) |
The components of loss before the income tax provision consist of the following:
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Year Ended
December 31, |
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2022 |
|
2021 |
| United States |
$ |
(18,801,570) |
|
|
$ |
(8,446,034) |
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| Foreign |
(673,291) |
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|
(74,048) |
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| Pre-tax loss and comprehensive loss from operations |
$ |
(19,474,861) |
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|
$ |
(8,520,082) |
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The components of the income tax expense consisted of the following:
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Year Ended
December 31, |
|
2022 |
|
2021 |
| Current income tax expense |
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|
|
| State |
6,741 |
|
|
2,100 |
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| Total current income tax expense |
6,741
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|
|
2,100
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|
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| Schedule for significant portions of deferred income tax assets |
The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred income tax assets are as follows:
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As of December 31, |
| Current deferred tax assets/(liabilities): |
2022 |
|
2021 |
| State taxes |
$ |
756 |
|
|
$ |
441 |
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| Amortization |
61 |
|
|
109 |
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| Research and development credits |
1,199,256 |
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|
138,581 |
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| Capitalized research and development costs |
1,000,777 |
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|
— |
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| Lease liability |
16,565 |
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|
33,906 |
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| Contingent legal accrual |
1,306,097 |
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— |
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| Capital loss carryforwards |
8,824,896 |
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— |
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| Net operating loss |
30,648,168 |
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|
8,887,647 |
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| Other |
975,897 |
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|
446,623 |
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| Gross deferred tax assets |
43,972,473
|
|
|
9,507,307
|
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| Valuation allowance |
(43,957,489) |
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|
(9,373,577) |
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| Net deferred tax assets |
$ |
14,984
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$ |
133,730
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| Deferred tax liabilities |
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| Right-of-use asset |
$ |
(14,984) |
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$ |
(30,939) |
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| Discount - Amended Credit Agreement |
— |
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|
(102,791) |
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| Total deferred tax liabilities |
(14,984) |
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|
(133,730) |
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| Net deferred tax assets |
$ |
—
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|
$ |
—
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| Schedule of provision for income taxes on earnings subject to income taxes differs from the statutory Federal rate |
The provision for income taxes on earnings subject to income taxes differs from the statutory Federal rate at December 31, 2022 and 2021, due to the following:
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As of December 31, |
| |
2022 |
|
2021 |
| Expected income tax benefit at federal statutory tax rate |
$ |
(4,089,720) |
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|
$ |
(1,789,217) |
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| State income taxes, net of federal benefit |
(749,744) |
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|
(475,287) |
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| Change in fair value of warrants |
(76,672) |
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|
4,445 |
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| Change in valuation allowance |
(892,837) |
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|
1,783,362 |
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| Uncertain tax positions |
884,911 |
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|
557,016 |
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| Reduction in compound derivative |
4,974,768 |
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— |
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| Non-deductible interest |
35,624 |
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|
36,731 |
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| Stock compensation |
69,754 |
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|
31,863 |
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| Research and development credits |
(281,709) |
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|
(168,514) |
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| Rate adjustment |
— |
|
|
785 |
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| Other permanent difference |
132,366 |
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|
20,916 |
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| Provision for income taxes |
$ |
6,741
|
|
|
$ |
2,100
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| Schedule of reconciliation of beginning and ending amounts of unrecognized tax positions |
A reconciliation of the beginning and ending amounts of unrecognized tax positions are as follows:
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As of December 31, |
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2022 |
|
2021 |
| Unrecognized tax positions, beginning of the year |
$ |
1,784,626 |
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|
$ |
1,134,173 |
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| Gross increase - current period tax positions |
1,087,413 |
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|
687,598 |
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| Gross decrease – prior period tax positions |
(19) |
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(37,145) |
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| Unrecognized tax positions, end of year |
$ |
2,872,020
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$ |
1,784,626
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