Income taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income taxes

Note 18 Income taxes

The components of income tax expense (benefit) for the nine months ended September 30, 2022 was as follows:

	September 30, 2022
Current
Federal	$	-
State and local		-
Total current	$	-
Deferred
Federal		666,616
State and local		-
Total deferred	$	666,616
Total income tax expense (benefit)	$	666,616

The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate for the three months ended September 30, 2022:

	September 30, 2022
U.S. statutory federal income tax rate		21.0	%
Stock compensation		(12.87	)%
Convertible debt		(1.96	)%
Other		0.59	%
Income tax (expense) benefit for the period		6.76	%

Deferred income taxes reflect the net tax effect of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income taxes.

Significant components of U.S. federal and state deferred tax assets and liabilities as of September 30, 2022 and December 31, 2021 are as follows:

Future utilization of NOL’s arising in tax years after December 31, 2017 are limited to eighty percent of taxable income and are allowed to be carried forward indefinitely. NOL’s generated in 2017 and prior may carry forward 20 years. As of September 30, 2022, the Company has $0.193 million of NOL’s generated prior to December 31, 2017 and $4.8 million of NOL’s generated after 2017. The Company’s NOL carryforwards generated prior to December 31, 2017 will begin to expire in the year 2031. Included in the total NOLs discussed above, are $.203 million of NOLs generated by the Company’s 100% owned subsidiary Adhererx Corporation. When the Company acquired Adhererx Corporation in 2020, Adhererx Corporation underwent an ownership change as defined by section 382 of the Internal Revenue Code, and as such the NOL will be subject to annual limitation. Management has reviewed and evaluated the relevant technical merits of each of its tax positions and determined that there are no uncertain tax positions that would have a material impact on these financial statements.

	September 30,			December 31,
	2022			2021
Deferred tax assets
Federal net operating loss carryforwards	$	1,241,174		$	601,151
State net operating loss carryforwards		286,874			-
Lease Liability		95,616			68,290
Accrued Salary		39,888			51,345
Unrealized gains / (loss)		52,198			12,553
Accrued expenses		-			-
Charitable contribution carryover		6,826			1,155
NQSOs		40,547			-
Total gross deferred tax assets		1,763,123			734,494
Deferred tax liabilities
Property, plant and equipment	$	(382,911	)	$	(948	)
Right of use Asset		(93,055	)		(66,930	)
Total gross deferred tax liabilities		(475,966	)		(67,878	)
Gross deferred tax asset (liabilities)		1,287,157			666,616
Valuation allowance		(1,287,157	)		-
Net deferred tax asset (liabilities)	$	-		$	666,616