Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule Of (Benefit) Provision For Income Taxes
The components of the (benefit) provision for income taxes are as follows:

Years Ended December 31,
2022 2021 2020
Current:
 Federal $ —  $ —  $ — 
 State and Local —  (13,159) — 
Total Current —  (13,159) — 
Deferred:
 Federal —  (21,864,569) 21,864,569 
 State and Local —  30,639  (30,639)
Total Deferred —  (21,833,930) 21,833,930 
Total (benefit) provision for income taxes $ —  $ (21,847,089) $ 21,833,930 
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation of taxes at the federal statutory rate to our provision for income taxes was as follows:

Years Ended December 31,
2022 2021
2020
Federal tax benefit at statutory rates 21.0  % 21.0  % 21.0  %
State and local tax at statutory rates —  % 0.1  % (0.1) %
Fair value adjustments on warrant liability —  % —  % 37.1  %
Fair value adjustments on convertible notes (0.3) % (0.4) % 2.8  %
Tax gain on sale of investment —  % (0.6) % —  %
Stock-based compensation deductions (1.7) % 0.2  % (6.6) %
Research and development credits 0.3  % 1.2  % —  %
Other permanent differences and credits (0.5) % (0.2) % —  %
Change in valuation allowance (18.8) % (16.1) % (30.4) %
Total tax benefit —  % 5.2  % 23.8  %
Schedule of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities are as follows:
December 31
2022 2021
Deferred Tax (Liabilities) Assets:
Accrued expenses and reserves $ 4,528,418  $ 590,340 
Warranty reserve 470,342  976,956 
Inventory and prepaid purchase reserves 17,326,397  21,506,626 
Non-qualified stock options (328,410) (160,921)
Property, plant and equipment (1,955,842) 54,556 
Research and experimental costs 4,435,891  — 
Lease right-of-use assets (2,515,792) — 
Lease liability 2,175,883  — 
Issuance fees on convertible notes 343,886  687,772 
Federal tax credits 5,099,750  4,873,099 
Net operating losses 66,112,929  45,143,740 
Total Deferred Tax (Liabilities) Assets 95,693,452  73,672,168 
Valuation Allowance (95,693,452) (73,672,168)
Total Deferred Tax Assets (Liabilities), net of valuation allowance $ —  $ — 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table presents a reconciliation of unrecognized tax benefits:

2022 2021
Unrecognized tax benefits - January 1 $ 805,392  $ 1,163,282 
Gross increases - tax positions in prior period —  — 
Gross decreases - tax positions in prior period —  (357,890)
Gross increases - tax positions in current period —  — 
Settlement —  — 
Lapse of statute of limitations —  — 
Unrecognized tax benefits - December 31 $ 805,392  $ 805,392