Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Components of Net Loss Before Income Taxes |
The components of net loss before income taxes, which includes the pre and post IPO periods were as follows:
|
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|
|
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|
|
|
|
|
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For the Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
Domestic |
|
$ |
(19,040,019 |
) |
|
$ |
(33,214,967 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
Net Loss Before Income Taxes |
|
$ |
(19,040,019 |
) |
|
$ |
(33,214,967 |
) |
|
| Schedule of Significant Components of Income Tax (Benefit) Expense |
Significant components of income tax (benefit) expense were as follows:
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|
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For the Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
Current income taxes: |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
2,485 |
|
|
|
(8,854 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
Total current income taxes |
|
$ |
2,485 |
|
|
$ |
(8,854 |
) |
Deferred income taxes: |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
(1,520 |
) |
|
|
(65,668 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
Total deferred income taxes |
|
$ |
(1,520 |
) |
|
$ |
(65,668 |
) |
Income tax (benefit) expense |
|
$ |
965 |
|
|
$ |
(74,522 |
) |
|
| Schedule of Reconciliation of Income Taxes Computed at United States Federal Statutory Income Tax Rate |
A reconciliation of income taxes computed at the United States federal statutory income tax rate of 21% to income tax (benefit) expense was as follows:
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|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
U.S. federal income taxes at statutory rate |
|
$ |
(3,971,275 |
) |
|
$ |
(6,975,143 |
) |
State and local income tax, net of federal benefit |
|
|
(622,879 |
) |
|
|
(830,189 |
) |
Noncontrolling interest |
|
|
695,467 |
|
|
|
2,726,960 |
|
FMV of Warrant |
|
|
(4,331 |
) |
|
|
(22,628 |
) |
Partnership Basis Adjustment |
|
|
(5,522,247 |
) |
|
|
— |
|
Change in valuation allowance |
|
|
9,426,230 |
|
|
|
5,170,541 |
|
Other |
|
|
— |
|
|
|
(144,063 |
) |
Income tax (benefit) expense |
|
$ |
965 |
|
|
$ |
(74,522 |
) |
|
| Schedule of Components of Deferred Tax Assets and Liabilities |
The tax effect of temporary differences that gave rise to significant components of deferred tax assets and liabilities consisted of the following at December 31:
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2023 |
|
|
2022 |
|
Deferred Tax Assets: |
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|
|
|
|
|
Investment in partnership |
|
$ |
12,463,390 |
|
|
$ |
6,609,360 |
|
Net operating loss |
|
$ |
9,660,705 |
|
|
|
6,894,644 |
|
163(j) |
|
$ |
762,211 |
|
|
|
74,762 |
|
Charitable Contributions |
|
$ |
81,784 |
|
|
|
141,510 |
|
Stock based compensation |
|
$ |
242,459 |
|
|
|
64,044 |
|
Total deferred tax assets |
|
$ |
23,210,549 |
|
|
$ |
13,784,320 |
|
Valuation allowance |
|
|
(23,210,549 |
) |
|
|
(13,784,320 |
) |
Net deferred tax asset |
|
$ |
— |
|
|
$ |
— |
|
Deferred Tax Liabilities: |
|
|
|
|
|
|
Other |
|
$ |
(35 |
) |
|
$ |
(1,555 |
) |
Total deferred tax liabilities |
|
|
(35 |
) |
|
|
(1,555 |
) |
Net deferred tax liability |
|
$ |
(35 |
) |
|
$ |
(1,555 |
) |
|
| Summary of Valuation Allowance |
The Company's valuation allowance increased by approximately $9,426,230 and $5,170,541 in 2023 and 2022, respectively.
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|
|
|
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|
|
|
|
2023 |
|
|
2022 |
|
Beginning balance |
|
$ |
13,784,320 |
|
|
$ |
8,613,779 |
|
Charged to costs and expenses |
|
|
9,426,229 |
|
|
|
5,170,541 |
|
Ending balance |
|
$ |
23,210,549 |
|
|
$ |
13,784,320 |
|
|