| Income Taxes | Note 6: Income
Taxes For the years ended December 31, 2022 and
2021, the Company did not recognize any current or deferred income tax benefit or expense. For the years ended December 31, 2022 and
2021, the reconciliation between the income tax benefit computed by applying the statutory U.S. federal income tax rate of 21.0
Schedule of income tax rate reconciliation
2022 2021
Income tax benefit at statutory U.S. federal rate $ 406,343 $ 586,728
Income tax benefit attributable to U.S. states 67,259 99,325
Research and development credits (66,000 ) 137,728
Non-taxable forgiveness of PPP and EIDL loans — 20,478
Non-deductible expenses (299 ) (300 )
Stock- based compensation related to incentive stock options (47,290 ) (53,952 )
Other changes (7,439 ) (15,182 )
Change in valuation allowance (352,574 ) (774,825
Total income tax expense (benefit) $ — $ — As of December 31, 2022 and 2021, the components
of deferred income tax assets and liabilities were as follows:
Schedule of deferred tax assets and liabilities
2022 2021
Deferred income tax assets:
Net operating loss carryforwards $ 2,928,442 $ 2,876,543
Research and development credits 449,981 515,982
Accrued Compensation 23,667 —
Long-term capital loss carryforward 94,445 94,728
Valuation allowance for deferred income tax assets (3,187,682 ) (2,835,108 )
Net deferred income tax assets 308,853 652,145
Deferred income tax liabilities:
Intangible assets (307,885 ) (647,554 )
Property, equipment and other (968 ) (4,591 )
Total deferred income tax liabilities (308,853 ) (652,145 )
Net deferred income tax assets $ — $ — The Company records a valuation allowance
for certain temporary differences for which it is more likely than not that a future tax benefit will be received. The Company assesses
its past earnings history and trends and projections of future net income. The Company recorded a valuation allowance for the entire
amount of the net deferred tax asset as of December 31, 2022 and 2021. As of December 31, 2022, the Company had a total valuation allowance
of approximately $ 3,188,000 As of December 31, 2022, the Company had
net operating loss (“NOL”) carryforwards of approximately $ 11,965,000 5,545,000 6,420,000 386,000 450,000 The calculation of the Company’s tax
liabilities involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740 states that a tax benefit
from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination,
including resolutions of any related appeals or litigation processes, on the basis of the technical merits. At this time, the Company
does not have any uncertain tax positions to assess. |
