Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense consisted of the following:
Year Ended December 31,
2023 2022
Current income taxes:
Federal $ -  $ - 
State and local -  - 
Total current tax -  - 
   
Deferred income taxes:    
Federal -  - 
State and local -  - 
Total deferred tax -  - 
Income tax expense $ -  $ - 
The effective tax rates on continuing operations for the years ended December 31, 2023 and 2022 were 0% respectively. The table below reconciles these effective tax rates with the U.S. federal statutory income tax rate as follows:
Year Ended December 31,
2023 2022
Income (loss) before income taxes $ (50,686,601) $ (28,260,571)
Tax at Federal Statutory Rate (10,644,186) (5,934,720)
Non deductible expenses 1,251,583  193,421 
Deferred adjustment 510,514  - 
Federal return to accrual (13,141) - 
Change in valuation allowance 8,895,230  5,741,299 
Income tax expense $ -  $ - 
0.00  % 0.00  %
The Company’s deferred tax position reflects the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Significant components of the deferred tax assets and liabilities are as follows:
Year Ended December 31,
2023 2022
Deferred tax assets:
Fixed Assets $ 3,377,201  $ 113,135 
Stock Compensation 267,236  758,306 
Warrant Liability Gain/Loss 1,356,828  1,356,828 
Net Operating Losses 15,627,776  9,666,591 
Business Credit Carryforward 1,441,159  1,426,116 
Capitalized R & D 614,299  449,626 
Other assets 199,680  109,616 
Subtotal 22,884,179  13,880,218 
Valuation allowance (22,654,106) (13,758,875)
Total deferred tax assets 230,073  121,343 
   
Deferred tax liabilities:    
Fixed assets —  - 
Unrealized F/X (54,729) (54,729)
Other Liabilities (175,344) (66,614)
Total deferred tax liabilities (230,073) (121,343)
   
Net deferred tax assets/(liabilities) $ -  $ - 
The Company has federal net operating loss carryforwards of approximately $74.4 million at December 31, 2023, of which about $646,000 begin to expire in 2035 and the remainder have no expiration. The Company has recorded a full valuation allowance against its net deferred tax assets due to recurring net losses.