| Schedule of reconciliation of federal income tax rate to effective tax rate |
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
Pretax Income |
|
(7,147,720) |
|
21.00 |
% |
|
|
|
|
|
|
Domestic state and local income taxes, net of federal effect (a) |
|
— |
|
— |
% |
|
|
|
|
|
|
Foreign tax effects: |
|
|
|
|
|
Canada |
|
|
|
|
|
Other |
|
368,275 |
|
(1.08) |
% |
Other Adjustment - NOLs |
|
1,639,371 |
|
(4.82) |
% |
Change in valuation allowance |
|
(1,442,061) |
|
4.24 |
% |
|
|
|
|
|
|
Other |
|
896 |
|
— |
% |
|
|
|
|
|
|
Effect of cross-border tax laws |
|
— |
|
— |
% |
|
|
|
|
|
|
Tax credits |
|
— |
|
— |
% |
|
|
|
|
|
|
Nontaxable or Nondeductible Items, net |
|
|
|
|
|
Debt conversion |
|
1,288,165 |
|
(3.79) |
% |
Other |
|
75,693 |
|
(0.22) |
% |
|
|
|
|
|
|
Other adjustments |
|
224 |
|
— |
% |
|
|
|
|
|
|
Change in valuation allowance |
|
5,438,253 |
|
(15.98) |
% |
|
|
|
|
|
|
Effective Income Tax rate |
|
221,096 |
|
(0.65) |
% |
|
|
|
|
|
|
Year Ended |
|
|
December 31, |
|
|
2024 |
|
U.S. federal statutory income tax rate |
|
21.00 |
% |
Permanent differences |
|
(2.60) |
% |
State taxes, net of federal benefit |
|
2.60 |
% |
Foreign exchange |
|
0.43 |
% |
Other adjustments |
|
— |
% |
Change in valuation allowance |
|
(21.43) |
% |
Effective Income Tax rate |
|
— |
% |
|
| Schedule of net deferred tax assets |
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
2025 |
|
2024 |
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
27,632,096 |
|
$ |
26,081,361 |
Research and development tax credits |
|
|
2,484,004 |
|
|
8,765,999 |
Capitalized research and development expenditures |
|
|
2,814,581 |
|
|
1,627,842 |
Stock compensation |
|
|
1,440,022 |
|
|
1,434,890 |
Depreciation and amortization |
|
|
3,023,531 |
|
|
275,412 |
Lease liabilities |
|
|
43,381 |
|
|
58,227 |
Other |
|
|
50 |
|
|
— |
Investment in partnership |
|
|
— |
|
|
30,035 |
Gross deferred tax assets |
|
|
37,437,665 |
|
|
38,273,766 |
Valuation allowance |
|
|
(36,952,112) |
|
|
(31,370,027) |
Net deferred tax assets |
|
|
485,553 |
|
|
6,903,739 |
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
Right-of-use asset |
|
|
(42,187) |
|
|
(55,341) |
In-process research and development intangible assets |
|
|
(12,112,367) |
|
|
(17,741,842) |
Prepaid expenses |
|
|
(440,403) |
|
|
(421,481) |
Deferred tax liabilities |
|
|
(12,594,957) |
|
|
(18,218,664) |
|
|
|
|
|
|
|
Net deferred taxes |
|
$ |
(12,109,404) |
|
$ |
(11,314,925) |
|