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Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents components of the Company’s provision for income taxes as for the period presented (in thousands):
December 31,
202020192018
Current expense (benefit):
Federal$— $— $— 
State181 — — 
Foreign59 68 80 
Total current tax expense (benefit) 240 68 80 
Deferred expense (benefit):
Federal— — — 
State— — — 
Foreign(11)(3)(36)
Total deferred tax expense (benefit)(11)(3)(36)
Total Tax Expense (benefit)$229 $65 $44 
The following table presents a reconciliation of the tax expense computed at the statutory federal rate and the Company’s tax expense for the period presented (in thousands):
December 31,
202020192018
Tax at statutory federal rate$(9,172)$(11,446)$(10,570)
Stock-based compensation(20,762)(5,560)(8,557)
Meals and Entertainment177 409 309 
Other805 614 148 
Tax credits(1,426)(1,128)(1,015)
2017 Tax Act— — 44 
Change in valuation allowance30,607 17,176 19,685 
Provision for income taxes$229 $65 $44 

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
December 31,
20202019
Deferred tax assets:
Net operating loss carryforwards$91,034 $64,648 
Tax credit carryforwards7,110 5,601 
Share-based compensation8,831 5,932 
Allowances and other14,996 11,443 
Lease obligation22,624 23,869 
Total deferred tax assets144,595 111,493 
Valuation allowance(123,803)(88,433)
Net deferred tax assets20,792 23,060 
Deferred Tax Liabilities:
Depreciation and Amortization(108)(850)
Right of use asset(20,634)(22,171)
Total deferred tax liability(20,742)(23,021)
Total deferred tax assets$50 $39 
Due to the uncertainties surrounding the realization of deferred tax assets through future taxable income, the Company has provided a full valuation allowance against its U.S. deferred tax assets, and, therefore, no benefit has been recognized for the net operating loss carryforwards and other deferred tax assets. The U.S. valuation allowance increased by $35.4 million and $22.0 million for the years ended December 31, 2020 and December 31, 2019, respectively. The current year change in the U.S. valuation allowance is primarily related to the increase in net operating loss carryforwards generated during the year. The Company recorded an immaterial deferred tax asset related to the Company’s foreign operations in the United Kingdom.
The valuation allowance for deferred tax assets consisted of the following activity for the years ended December 31, 2020, 2019 and 2018 (in thousands):
Balance at beginning of yearAdditionsDeductionsBalance at end of year
Year Ended December 31, 2018$44,321 $22,114 $— $66,435 
Year Ended December 31, 201966,435 21,998 — 88,433 
Year Ended December 31, 2020$88,433 $35,370 $— $123,803 
As of December 31, 2020, the Company had approximately $368.2 million of federal and $218.7 million of state net operating loss carryforwards available to offset future taxable income which expires in varying amounts beginning in 2027 and 2020 respectively.
As of December 31, 2020, the Company had research tax credit carryforwards of approximately $6.9 million, and $3.1 million available to reduce future taxable income, if any, for both federal and state purposes, respectively. The federal tax credit carryforwards expire beginning in 2028 and the state tax credits can be carried forward indefinitely.
Section 382 of the Internal Revenue Code, and similar state provisions, limits the use of net operating loss and tax credit carryforwards in certain situations where equity transactions result in a change of ownership as defined by Internal Revenue Code Section 382. In the event the Company should experience an ownership change, as defined, utilization of its net operating loss carryforwards and tax credits could be limited.
Effective January 1, 2019, the Company adopted ASC 740-10 (formerly known as FIN 48), Accounting for Income Taxes, guidance that addresses the recognition, measurement, and disclosure of uncertain tax positions. Total unrecognized income tax benefits was $2.3 million and $1.8 million at December 31, 2020 and 2019, respectively. The Company does not anticipate the total amounts of unrecognized tax benefits will significantly increase or decrease in the next 12 months.
A reconciliation of the Company’s unrecognized tax benefit amount is as follows (in thousands):

Year Ended December 31,
202020192018
Balance at beginning of year$1,842 $1,459 $943 
Additions for tax positions taken in current year488 383 441 
Increases in balance related to prior year tax positions— — 75 
Decreases in balance related to prior year tax positions(28)— — 
Balance at end of year$2,302 $1,842 $1,459 

The total amount of gross unrecognized tax benefits was $2.3 million, $1.8 million, and $1.5 million as of December 31, 2020, 2019, and 2018 respectively. None of the Company’s unrecognized tax benefits that, if recognized, would affect its effective tax rate. The Company does not anticipate the total amounts of unrecognized tax benefits will significantly increase or decrease in the next 12 months. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for taxes. Management determined that no accrual for interest or penalties was required as of December 31, 2020, 2019 and 2018.

The Company files income tax returns in the U.S. and UK jurisdictions. All of the Company's tax years are open to examination by the US federal and state tax authorities. The UK is open to examination for tax years starting 2017 and forward. The Company currently has no federal, state or foreign tax examinations in progress, nor has it had any federal or state examinations since inception.