Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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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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2023 |
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2022 |
| United States |
$ |
(25,799,330) |
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$ |
(18,801,570) |
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| Foreign |
(11,841,854) |
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|
(673,291) |
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| Pre-tax loss and comprehensive loss from operations |
$ |
(37,641,184) |
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$ |
(19,474,861) |
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The components of the income tax expense consisted of the following:
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Year Ended December 31, |
| Current income tax expense |
2023 |
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2022 |
| Federal |
$ |
— |
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$ |
— |
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| State |
3,600 |
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|
6,741 |
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| Foreign |
— |
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— |
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| Total current income tax expense |
$ |
3,600 |
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$ |
6,741 |
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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 and (liabilities): |
2023 |
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2022 |
| Net operating loss |
$ |
40,900,348 |
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$ |
30,648,168 |
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| Capital loss carryforwards |
17,157,029 |
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|
8,824,896 |
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| Contingent legal accrual |
1,320,526 |
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1,306,098 |
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| Depreciation |
663,197 |
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286,452 |
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| Amortization |
225,678 |
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|
216,077 |
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| Research and development credits |
3,694,501 |
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1,199,256 |
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Capitalized research and development costs |
1,835,326 |
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|
1,000,777 |
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| Lease liability |
51,086 |
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16,565 |
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| State taxes |
777 |
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|
756 |
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| Other |
663,067 |
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473,429 |
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| Gross deferred tax assets |
66,511,533
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43,972,473
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| Valuation allowance |
(66,461,557) |
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(43,957,489) |
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| Net deferred tax assets |
$ |
49,976
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$ |
14,984
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| Deferred tax liabilities |
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| Right-of-use asset |
$ |
(49,976) |
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$ |
(14,984) |
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| Total deferred tax liabilities |
(49,976) |
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(14,984) |
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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, 2023 and 2022, due to the following:
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As of December 31, |
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2023 |
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2022 |
| Expected income tax benefit at federal statutory tax rate |
$ |
(7,904,649) |
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$ |
(4,089,720) |
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| State income taxes, net of federal benefit |
(847,810) |
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(749,744) |
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| Change in fair value of warrants |
— |
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(76,672) |
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| Change in valuation allowance |
3,167,507 |
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(892,837) |
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| Uncertain tax positions |
1,008,482 |
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|
884,911 |
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| Reduction in deferreds upon divestiture |
— |
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4,974,768 |
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| Non-deductible interest |
— |
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|
35,624 |
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| Stock compensation |
100,958 |
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69,754 |
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| Research and development credits |
(315,498) |
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(281,709) |
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| Rate adjustment |
6,042 |
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(3,568) |
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Foreign rate differential |
(1,918,633) |
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|
14,934 |
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Divestiture of VDL |
2,269,297 |
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— |
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In process research and development |
4,455,195 |
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— |
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Other |
(17,293) |
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|
121,000 |
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| Provision for income taxes |
$ |
3,600
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$ |
6,741
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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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2023 |
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2022 |
| Unrecognized tax positions, beginning of the year |
$ |
2,872,020
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$ |
1,784,626
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| Gross increase - current period tax positions |
1,243,191 |
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1,087,413 |
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| Gross increase - prior period tax positions |
2,316,932 |
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— |
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| Gross decrease – prior period tax positions |
— |
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(19) |
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| Unrecognized tax positions, end of year |
$ |
6,432,143
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$ |
2,872,020
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