Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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Schedule of deferred tax assets and liabilities, net |
The components of the Company's net deferred tax assets at December 31 are as follows: | | | | | | | | | | | | | | | | | 2022 | | 2021 | | | | | | Deferred Tax Assets | | | | | Net operating loss and tax credits | | $ | 16,164,754 | | | $ | 16,817,070 | | Property and equipment and intangibles | | 264,653 | | | 222,893 | | Operating lease liabilities | | 1,121,800 | | | — | | Intangible assets | | 866,942 | | | — | | Capitalized research cost | | 1,481,455 | | | — | | Allowance for accounts receivable | | 145,803 | | | 83,931 | | Reserve for expired product | | 654,148 | | | 457,723 | | Inventory | | 217,025 | | | 104,824 | | Deferred charges | | 1,156,150 | | | 1,303,664 | | Cumulative compensation costs incurred on deductible equity awards | | 635,989 | | | 834,070 | | Total deferred tax assets | | 22,708,719 | | | 19,824,175 | | | | | | | Deferred Tax Liabilities | | | | | Operating lease right-of-use assets | | (1,150,935) | | | — | | Intangible assets | | — | | | (62,253) | | Net deferred tax assets, before valuation allowance | | 21,557,784 | | | 19,761,922 | | Less: deferred tax asset valuation allowance | | (21,557,784) | | | (19,761,922) | | Net deferred tax assets | | $ | — | | | $ | — | |
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Schedule of federal and state net operating loss carryforwards |
The following table summarizes the amount and year of expiration of the Company's federal and state net operating loss carryforwards as of December 31, 2022: | | | | | | | | | | | | | | | Years of expiration | | Federal | | State | | | | | | 2023 | | $ | — | | | $ | 251,811 | | 2024-2042 | | 46,656,666 | | | 55,790,944 | | Indefinite Period | | 6,405,835 | | | 433,203 | | | | | | | Total federal and state net operating loss carryforwards | | $ | 53,062,501 | | | $ | 56,475,958 | |
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Schedule of the components of income tax benefit (expense) |
Income tax (expense) benefit includes the following components for the years ended December 31: | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | | | Current: | | | | | | | Federal | | $ | — | | | $ | — | | | | State and other | | 68,850 | | | 34,891 | | | | Total current income tax (expense) benefit | | 68,850 | | | 34,891 | | | | | | | | | | | Deferred: | | | | | | | Federal | | — | | | 61,678 | | | | State | | — | | | (61,678) | | | | Total deferred income tax (expense) benefit | | — | | | — | | | | Total income tax (expense) benefit | | $ | 68,850 | | | $ | 34,891 | | | | | | | | | | |
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Schedule of effective tax rate reconciliation |
The Company’s effective income tax rate for 2022 and 2021 reconciles with the federal statutory tax rate as follows: | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | | | | | | | | | | Federal tax expense at statutory rate | | 21 | % | | 21 | % | | | State income tax expense (net of federal income tax benefit) | | 2 | % | | 1 | % | | | Permanent differences associated with general business credits | | — | % | | — | % | | | Change in valuation allowance | | (22) | % | | (19) | % | | | Other permanent differences | | (2) | % | | (4) | % | | | Other | | — | % | | — | % | | | Net income tax expense | | (1) | % | | (1) | % | | | | | | | | | |
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Summary of tax credit carryforwards |
As of December 31, 2022, the Company has general business credit carryforwards of $1.5 million. These credit carryforwards will expire in years 2023 through 2042. | | | | | | | | | Years of expiration | | Federal | 2023 | | $ | 200,825 | | 2024-2042 | | 1,319,161 | | Total federal and state credit carryforwards | | $ | 1,519,986 | |
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