| Schedule of Domestic and Foreign Components of Net Loss Before Income Taxes |
Pre-tax loss
from continuing operations is disaggregated between U.S. domestic and foreign jurisdictions in accordance with ASU 2023-09 and is presented
below:
Schedule
of Domestic and Foreign Components of Net Loss Before Income Taxes
| |
|
2025 |
|
|
2024 |
|
| |
|
December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Components of pre-tax loss |
|
|
|
|
|
|
|
|
| Domestic |
|
$ |
(13,204,883 |
) |
|
$ |
(10,992,106 |
) |
| Foreign |
|
|
(358,951 |
) |
|
|
(858,012 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The
following table is a reconciliation of our effective income tax rate and statutory income tax rate for the years ended December 31,
2025 and 2024 in accordance with the guidance in ASU 2023-09:
Schedule of Effective Income Tax Rate Reconciliation
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| At federal statutory income tax rate |
|
$ |
(2,848,405 |
) |
|
|
21.00 |
% |
|
$ |
(2,488,525 |
) |
|
|
21.00 |
% |
|
State
tax rate, net of federal benefit |
|
|
(315,309 |
) |
|
|
2.32 |
% |
|
|
(494,140 |
) |
|
|
4.17 |
% |
| Change in state tax rate |
|
|
301,856 |
|
|
|
(2.23 |
)% |
|
|
81,784 |
|
|
|
(0.69 |
)% |
| Nontaxable or nondeductible items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock compensation – restricted stock units |
|
|
1,284,795 |
|
|
|
(9.47 |
)% |
|
|
560,835 |
|
|
|
(4.73 |
)% |
| Other |
|
|
155,827 |
|
|
|
(1.15 |
)% |
|
|
71,375 |
|
|
|
(0.60 |
)% |
| Other – deferred adjustments |
|
|
- |
|
|
|
- |
|
|
|
11,319 |
|
|
|
(0.10 |
)% |
| Federal orphan drug tax credit |
|
|
(1,824 |
) |
|
|
0.01 |
% |
|
|
(6,247 |
) |
|
|
0.05 |
% |
| Change in valuation allowance |
|
|
1,423,060 |
|
|
|
(10.48 |
)% |
|
|
2,263,599 |
|
|
|
(19.10 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
- |
|
|
|
0.00 |
% |
|
$ |
- |
|
|
|
0.00 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
The
significant components of our deferred tax assets and liabilities for Federal and state income taxes consisted of the following:
Schedule of Deferred Tax Assets and Liabilities
| |
|
2025 |
|
|
2024 |
|
| |
|
December
31, |
|
| |
|
2025 |
|
|
2024 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| Non-current: |
|
|
|
|
|
|
|
|
| Net operating
loss carry forward – Federal |
|
$ |
11,507,543 |
|
|
$ |
7,566,071 |
|
| Net operating loss carry
forward – State |
|
|
2,957,337 |
|
|
|
2,074,542 |
|
| Stock compensation expense and other |
|
|
1,322,468 |
|
|
|
2,794,464 |
|
| Unrealized gain related to digital asset |
|
|
(75,871 |
) |
|
|
- |
|
| Purchased in-process R&D |
|
|
2,394,596 |
|
|
|
2,477,193 |
|
| Federal orphan drug credits |
|
|
1,211,026 |
|
|
|
1,209,202 |
|
| Capitalized research and
development costs |
|
|
2,008,637 |
|
|
|
3,781,193 |
|
| Total non-current deferred tax assets |
|
|
21,325,736 |
|
|
|
19,902,665 |
|
| Valuation allowance for
deferred tax assets |
|
|
(21,325,736 |
) |
|
|
(19,902,665 |
) |
| Total deferred tax assets |
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
| Non-current: |
|
|
|
|
|
|
|
|
| Intangible
asset |
|
|
- |
|
|
|
- |
|
| Total non-current deferred
tax liabilities |
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Total deferred tax asset
(liability) |
|
$ |
- |
|
|
$ |
- |
|
|