Annual report pursuant to Section 13 and 15(d)

INCOME TAX (Tables)

v3.23.1
INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense
Income tax expense for the years ended December 31, 2022 and 2021 is summarized as follows.
 
 
 
December 31, 2022
 
 
December 31, 2021
 
Deferred:
 
 
 
 
 
 
 
 
Federal
 
$
(11,457,628
)
 
$
(8,581,566
)
State
 
 
(3,810,261
)
 
 
(2,853,820
)
Change in valuation allowance
 
 
15,267,889
 
 
 
11,435,386
 
Income tax expense (benefit)
 
$
-
 
 
$
-
 
Schedule of Reconciliation of the Provision for Income Taxes at the U.S. Federal Income Tax Rate
The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Statement of Operations:
 
 
 
December 31, 2022
 
 
December 31, 2021
 
Book income (loss)
 
 
21.00
%
 
 
21.00
%
State taxes
 
 
6.98
 
 
 
 
 
6.98
%
Change in the fair value of warrant derivative
 
 
11.80
%
 
 
2.02
%
Other permanent items
 
 
2.49
%
 
 
1.47
%
Valuation allowance
 
 
(42.2
)%
 
 
(31.51
)%
Tax expense at actual rate
 
 
-
 
 
 
 
 
-
 
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at December 31, 2022 and 2021 are as follows:
 
 
 
December 31, 2022
 
 
December 31, 2021
 
Deferred tax assets:
 
 
 
 
 
 
 
 
Net operating loss carryforward
 
$
37,803,576
 
 
$
25,466,331
 
Depreciation
 
 
(961,977
)
 
 
(827,012
)
Deferred rent
 
 
-
 
 
 
(8,267
)
Research and development
 
 
2,845,164
 
 
 
-
 
Stock-based compensation
 
 
669,382
 
 
 
457,224
 
Total gross deferred tax assets
 
 
40,356,145
 
 
 
25,088,276
 
Less: valuation allowance
 
 
(40,356,145
)
 
 
(25,088,276
)
Net deferred tax assets
 
$
-
 
 
$
-