Income Tax Disclosure [Text Block] | Note 14 Income Taxes The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets or liabilities for the tax-effected temporary differences between the financial reporting and tax bases of its assets and liabilities, and for net operating loss (NOL) and tax credit carryforwards. Within the calculation of the Company’s annual effective tax rate the Company has used assumptions and estimates that may The Company completes a detailed analysis of its deferred income tax valuation allowances on an annual basis or more frequently if information comes to its attention that would indicate that a revision to its estimates is necessary. In evaluating the Company’s ability to realize its deferred tax assets, management considers all available positive and negative evidence on a country-by-country basis, including past operating results, forecasts of future taxable income, and the potential Section 382 2024 two not September 30, 2024 September 30, 2024 September 30, 2024 2023 September 30, 2024 2023 not may 20 September 30, 2024 2023 As of September 30, 2024 2025 2044 2038 2044. September 30, 2024 Loss before income taxes was taxed by the following jurisdictions for the years ended September 30, 2024 2023 2024 2023 Domestic $ (37,791,920 ) $ (90,522,387 ) Foreign 715,595 (2,150,099 ) Total $ (37,076,325 ) $ (92,672,486 ) A reconciliation between the effective tax rate and the U.S. statutory rate and the related income tax expense is as follows: 2024 2023 Amount Tax Rate Amount Tax Rate Income tax benefit at U.S. federal statutory rates $ (7,786,028 ) 21.0 % $ (19,461,222 ) 21.0 % State income tax benefit, net of federal benefits (602,861 ) 1.6 (1,506,855 ) 1.6 Non-deductible expenses 200,233 (0.5 ) 330,281 (0.3 ) U.S. research and development tax credit 655,526 (1.8 ) 178,378 (0.2 ) Effect of foreign income tax rates 292,970 (0.8 ) 454,808 (0.5 ) Effect of common stock options exercised 13,339 0.0 180,847 (0.2 ) Effect of global intangible low-taxed income 500,613 (1.4 ) (24,691 ) (0.0 ) Change in valuation allowance 7,367,014 (19.9 ) 20,205,808 (21.8 ) Other, net 84,295 (0.2 ) 122,852 (0.1 ) Income tax expense $ 725,101 (2.0 )% $ 480,206 (0.5 )% The federal and state income tax expense (benefit) for the years ended September 30, 2024 2023 2024 2023 Deferred – U.S. $ — $ (63,426 ) Deferred – U.K. 423,127 262,612 Deferred – Malaysia (55,945 ) (21,687 ) Subtotal 367,182 177,499 Current – U.S. — (8,624 ) Current – Malaysia 357,919 311,331 Subtotal 357,919 302,707 Income tax expense $ 725,101 $ 480,206 Significant components of the Company’s deferred tax assets and liabilities are as follows: 2024 2023 Deferred tax assets: Federal net operating loss carryforwards $ 34,485,560 $ 29,100,871 State net operating loss carryforwards 3,662,406 3,322,715 Foreign net operating loss carryforwards – U.K. 15,303,535 15,749,809 Foreign capital allowance – U.K. 184,779 174,748 Share-based compensation – U.K. 299,868 217,821 U.S. research and development tax credit carryforward 7,647,885 8,303,411 U.S. research and development expense 8,969,277 9,771,166 Accrued compensation 911,277 190,397 Share-based compensation 10,198,368 7,896,221 Interest expense 2,241,652 2,602,890 U.S. credit loss provision 885,562 885,562 Other, net – Malaysia 59,992 4,046 Other, net – U.K. 2,500 2,500 Other, net – U.S. 385,414 71,509 Gross deferred tax assets 85,238,075 78,293,666 Valuation allowance for deferred tax assets (72,502,102 ) (65,135,088 ) Net deferred tax assets 12,735,973 13,158,578 Deferred tax liabilities: Change in fair value of derivative liability (395,736 ) (449,812 ) Covenant not-to-compete — (1,347 ) Net deferred tax liabilities (395,736 ) (451,159 ) Net deferred tax asset $ 12,340,237 $ 12,707,419 The deferred tax amounts have been classified in the accompanying consolidated balance sheets as follows: 2024 2023 Long-term deferred tax asset – U.K. $ 12,280,245 $ 12,703,373 Long-term deferred tax asset – Malaysia 59,992 4,046 Total long-term deferred tax asset $ 12,340,237 $ 12,707,419 ASC Topic 740 740 two not The Company files tax returns in all appropriate jurisdictions, including foreign, U.S. federal and state tax returns. The following summarizes open tax years in the relevant jurisdictions: ● For the U.S., a tax return may 3 3 2005 2007, 2015 2019, 2022 2023, 2025 2038 no ● For Malaysia, a tax return may 5 7 2019 2023, December 31, 2024 2028. ● For the U.K., a tax return may 1 1 2023, 2025. The fiscal 2024 not September 30, 2024 2023 The Company recognizes interest and penalties related to uncertain tax positions as income tax expense as incurred. No September 30, 2024 2023 |