Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes

v3.25.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense consisted of the following:
Year Ended December 31,
2024 2023
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, 2024 and December 31, 2023 were 0% and 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,
2024 2023
Loss before income taxes $ (134,906,649) $ (50,686,601)
Tax benefit at Federal Statutory Rate (28,330,397) (10,644,186)
Debt extinguishment
19,393,825  - 
Nondeductible (add back) expenses (137,868) 1,251,583 
Federal return to accrual (66,938) (13,141)
Change in valuation allowance 9,141,378  8,895,230 
Deferred tax adjustment -  510,514 
Income tax expense $ -  $ - 
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,
2024 2023
Deferred tax assets:
Fixed assets $ 3,709,975  $ 3,377,201 
Stock compensation 192,483  267,236 
Warrant liability gain/loss 38,202  1,356,828 
Net operating losses 25,424,520  15,627,776 
Business credit carryforward 1,441,159  1,441,159 
Capitalized R & D 467,113  614,299 
Accrued expenses 496,060  - 
Other assets 266,367  199,680 
Subtotal 32,035,879  22,884,179 
Valuation allowance (31,805,983) (22,654,106)
Total deferred tax assets 229,896  230,073 
   
Deferred tax liabilities:    
Unrealized F/X -  (54,729)
Other liabilities (229,896) (175,344)
Total deferred tax liabilities (229,896) (230,073)
   
Net deferred tax assets/(liabilities) $ -  $ - 
The Company has federal net operating loss carryforwards of approximately $121 million at December 31, 2024, 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.