Reconciliation of Federal Statutory Income Tax Provision To Company's Actual Provision |
A reconciliation of the federal statutory income tax provision to our actual provision for the years ended December 31, 2024 and 2023 is as follows:
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2024 |
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2023 |
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Pre-tax book income (loss) |
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$ |
(4,651,205) |
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$ |
(4,490,665) |
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Expected tax at 21% |
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(976,753) |
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(943,040) |
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Permanent differences: |
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Goodwill impairment |
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45,632 |
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— |
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Intangible amortization |
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(37,003) |
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(46,373) |
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Other |
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5,169 |
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6,474 |
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State taxes: |
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Current |
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22,565 |
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32,491 |
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Deferred |
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(234,928) |
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(264,759) |
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Other items: |
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Expired net operating losses |
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324,799 |
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— |
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Federal research and development credits |
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— |
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(84,592) |
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Deferred tax past year true-ups |
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(91,289) |
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(63,440) |
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Change in valuation allowance |
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920,794 |
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980,342 |
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Capitalized research and development expenses |
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— |
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334,120 |
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Other |
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43,579 |
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81,268 |
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Income tax provision |
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$ |
22,565 |
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$ |
32,491 |
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Schedule of Deferred Tax Assets |
The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2024 and 2023 are as follows:
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2024 |
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2023 |
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Net operating loss carryforwards |
$ |
12,025,000 |
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$ |
10,840,000 |
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R&D and ITC credit carryforwards |
396,000 |
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403,000 |
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Accrued expenses and other |
267,000 |
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381,000 |
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Intangibles |
370,000 |
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499,000 |
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Leases |
— |
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8,000 |
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Accounts receivable |
76,000 |
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39,000 |
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Stock options |
486,000 |
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450,000 |
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Inventory |
279,000 |
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427,000 |
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Property, plant and equipment |
578,000 |
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650,000 |
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Other |
464,000 |
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323,000 |
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Deferred tax assets |
14,941,000 |
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14,020,000 |
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Valuation allowance |
(14,941,000) |
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(14,020,000) |
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Deferred tax assets, net |
$ |
— |
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$ |
— |
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