Schedule of Provision for Income Taxes |
The components of income (loss) before taxes for the years ended December 31, 2023 and 2022 are as follows:
| | | | | | | | | | 2023 | 2022 | United States | $ | 6,949,525 | | $ | (32,493,098) | | International | 759,984 | | (5,531,211) | | Total | $ | 7,709,509 | | $ | (38,024,309) | |
The components of income tax expense for the years ended December 31, 2023 and 2022 are as follows:
| | | | | | | | | | 2023 | 2022 | Current tax expense | | | Federal | $ | 421,237 | | $ | — | | Foreign | — | | — | | State | 190,250 | | 69,447 | | Deferred tax expense | | | Federal | — | | — | | Foreign | — | | — | | State | — | | — | | Income tax expense | $ | 611,487 | | $ | 69,447 | |
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Schedule of Deferred Tax Assets and Liabilities |
The components of the net deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows:
| | | | | | | | | | 2023 | 2022 | Deferred tax assets: | | | Net operating loss carryforwards | $ | 21,713,610 | | $ | 25,459,247 | | Allowance for credit losses | 3,141,395 | | 3,389,435 | | Equity based compensation | 802,100 | | 1,322,642 | | Research and experimental expenditures | 412,699 | | 216,391 | | Lease liability | 285,415 | | 17,575 | | Startup costs | 8,339 | | 9,514 | | Accruals | 922,553 | | 458,609 | | Nondeductible interest | 5,691,795 | | 3,816,974 | | Other | 60,819 | | 365,743 | | Total net deferred tax assets | 33,038,725 | | 35,056,130 | | Valuation allowance | (32,450,807) | | (34,868,210) | | Deferred tax liabilities: | | | Depreciation and amortization | (291,252) | | (168,505) | | Right-of-use asset | (296,666) | | (19,415) | | Total net deferred tax liabilities | (587,918) | | (187,920) | | Net deferred tax asset (liability) | $ | — | | $ | — | |
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Schedule of Federal Income Tax Rate |
A reconciliation of our provision for income taxes at the federal statutory rate to the reported income tax provision for the years ended December 31, 2023 and 2022 are as follows:
| | | | | | | | | | 2023 | 2022 | Computed "expected" tax benefit | 21.0 | % | (21.0) | % | State income tax benefit, net of federal tax effect | 5.8 | | (2.6) | | Nondeductible equity based compensation | 10.2 | | 9.7 | | Other permanent differences | 1.7 | | (0.5) | | Change in valuation allowance | (30.9) | | 15.9 | | Foreign rate differentials and other | 0.1 | | (1.3) | | Income tax expense | 7.9 | % | 0.2 | % |
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