| Income Taxes | 11.
Income Taxes The
components of the provision for income taxes for the years ended December 31, 2023 and 2022 are as follows: Schedule
of Components of Provision for Income Taxes
2023 2022
Current $ — $ —
Deferred (5,791,558 ) (3,714,988 )
Valuation Allowance 5,791,558 3,714,988
Total provision (Deferred benefit) for income taxes $ — $ — At
December 31, 2023 and 2022, the Company had temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and their respective income tax bases, as measured by enacted state and federal tax rates, as follows: Summary
of Components of Deferred Tax
2023 2022
Deferred tax assets (liabilities):
Net operating loss carryforward $ 39,810,409 $ 37,713,107
Accrued vacation - 8,751
Non-qualified stock compensation 1,160,775 1,119,642
Capitalized Research & Development costs 3,417,706 2,325,391
Intangibles 2,569,559 -
Total deferred tax assets 46,958,449 41,166,891
Less valuation allowance (46,958,449 ) (41,166,891 )
Total net deferred tax asset, net of valuation allowance $ — $ — The
following is a reconciliation of tax computed at the statutory federal rate to the income tax expense (benefit) in the statements of operations
for the years ended December 31, 2023 and 2022: Schedule
of Reconciliation of Tax Computed at Statutory Federal Rate
2023 2022
Income tax benefit computed at statutory federal rate of 21 21 $ (4,337,705 ) $ (3,000,564 )
State income tax benefits, net of federal expense/benefit (1,204,720 ) (785,862 )
Prior year adjustment 150,533 -
Change in valuation allowance 5,342,529 3,714,988
Non-deductible expenses 272 612
Other 49,091 70,826
Total provision (benefit) for income taxes $ — $ — In
assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all
of the deferred tax assets will not 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
upon the levels of historical taxable income and projections of future taxable income over which the deferred tax assets are
deductible, the Company believes that it is more likely than not that it will not be able to realize the benefits of these
deductible differences. Accordingly,
a valuation allowance of $ 46,958,449 and $ 41,166,891 has been provided in the accompanying consolidated
financial statements as of December 31, 2023 and 2022, respectively. The December 31, 2023 and December 31, 2022 net change in valuation
allowance related to deferred tax assets was an increase of $ 5,791,558 and $ 3,714,988 At
December 31, 2023, the Company has federal and state tax net operating loss carryforwards of $ 153,575,836 137,731,183 The State of Pennsylvania tax net
operating loss carryforwards will expire through 2036. Federal and Florida tax net operating loss carryforwards generated prior to
December 31, 2017 will expire through 2037 and are not subject to taxable income limitations. Federal and Florida tax net operating
loss carryforwards generated subsequent to December 31, 2017, do not expire but may be subject to taxable income limitation pursuant
to the Tax Cuts and Jobs Act that was enacted on December 22, 2017. The Company also has federal research and development tax credit
carryforwards of $ 4,169,354 .
The federal tax credit carryforward will expire beginning in 2021 and continuing through 2043 unless utilized. Utilization
of net operating loss carryforwards and research and development credit carryforwards may be subject to a substantial annual limitation
due to ownership change limitations that may have occurred or, could occur in the future in accordance with Section 382 of the Internal
Revenue Code of 1986 (“IRC Section 382”) and with Section 383 of the Internal Revenue Code of 1986, as well as similar state
provisions. These ownership changes may limit the amount of net operating loss carryforwards and research and development credit carryforwards
that can be utilized annually to offset future taxable income and taxes, respectively. In general, an ownership change, as defined by
IRC Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation
by more than 50 percentage points over a three-year period. The Company has completed several financings since its inception which may
result in a change in ownership as defined by IRC Section 382 or could result in a change in control in the future. For
the years ended December 31, 2023 and 2022, the Company incurred $ 46,229 940,106 The
Company files its income tax returns in the U.S. federal jurisdiction and in Florida and Pennsylvania. With few exceptions, the Company
is no longer subject to federal or state income tax examinations by tax authorities for years before 201. A
reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Schedule
of Reconciliation of Unrecognized Tax Benefits
Balance as of December 31, 2021 $ 4,027,180
Additions
based on tax positions related to the current year 940,106
Reductions
for the tax positions of prior years (115,396 )
Expired
Tax Credits due to 20-year life (17,043 )
Balance as of December
31, 2022 $ 4,834,847
Additions
based on tax positions related to the current 46,229
Reductions for the tax
positions of prior years (680,042 )
Expired
Tax Credits due to 20-year life (31,680 )
Balance as of December
31, 2023 $ 4,169,354 Included
in the balance at December 31, 2023 and 2022, are $ 4,169,354 4,834,847 During
the years 2023 and 2022 the Company did not recognize any interest and penalties. Due to the potential offset of the Company’s
operating loss carryforward for any future activity, the amount attributed to interest and penalties would be immaterial. |
