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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table presents components of the Company’s provision for income taxes (in thousands):
Year Ended December 31,
202220212020
Current expense:
Federal$— $— $— 
State160 223 181 
Foreign111 150 59 
Total current tax expense 271 373 240 
Deferred tax benefit:
Federal— — — 
State— — — 
Foreign(2)(6)(11)
Total deferred tax benefit(2)(6)(11)
Total tax expense$269 $367 $229 

The following table presents a reconciliation of the tax expense computed at the statutory federal rate and the Company’s tax expense (in thousands):
Year Ended December 31,
202220212020
Tax at statutory federal rate$(24,323)$(21,198)$(9,172)
State income taxes, net of federal benefit160 223 181 
Stock-based compensation(3,492)(7,049)(20,762)
Meals and entertainment348 182 177 
Section 162(m) limitation - officers compensation
2,498 4,856 544 
Other
526 (347)89 
Tax credits(2,695)(381)(1,426)
Foreign rate differential(40)(30)(9)
Change in valuation allowance27,287 24,111 30,607 
Provision for income taxes$269 $367 $229 

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,
20222021
Deferred tax assets:
Net operating loss carryforwards$111,236 $114,856 
Tax credit carryforwards29,455 9,174 
Stock-based compensation11,942 9,812 
 Capital research expenditures15,997 — 
Allowances and other19,399 20,988 
Lease obligation24,232 23,868 
Total deferred tax assets212,261 178,698 
Valuation allowance(188,070)(154,734)
Net deferred tax assets24,191 23,964 
Deferred tax liabilities:
Depreciation and amortization(9,402)(3,212)
ROU assets(14,731)(20,696)
Total deferred tax liabilities(24,133)(23,908)
Total deferred tax assets$58 $56 
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 $33.3 million, $30.9 million and $35.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. The current year change in the U.S. valuation allowance is primarily related to the increase in reserves and research and development not currently deductible. 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, 2022, 2021, and 2020 (in thousands):
Balance at Beginning of YearAdditionsDeductionsBalance at End of Year
Year Ended December 31, 2022$154,734 $33,336 $— $188,070 
Year Ended December 31, 2021$123,803 $30,931 $— $154,734 
Year Ended December 31, 2020$88,433 $35,370 $— $123,803 

As of December 31, 2022, the Company had approximately $445.0 million of federal and $285.5 million of state net operating loss carryforwards available to offset future taxable income which expires in varying amounts beginning in 2027 and 2022, respectively. Federal losses incurred from 2019 can be carried forward indefinitely.
As of December 31, 2022, the Company had research tax credit carryforwards of approximately $10.7 million, and $8.6 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.
The Tax Reform Act of 1986, 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.
A reconciliation of the Company’s unrecognized tax benefit amount is as follows (in thousands):
Year Ended December 31,
202220212020
Balance at beginning of year$3,310 $2,302 $1,842 
Additions for tax positions taken in current year996 772 488 
Increases in balance related to prior year tax positions426 236 — 
Decreases in balance related to prior year tax positions— — (28)
Balance at end of year$4,732 $3,310 $2,302 

The total amount of gross unrecognized tax benefits was $4.7 million, $3.3 million, and $2.3 million as of December 31, 2022, 2021, and 2020 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. The Company determined that no accrual for interest or penalties was required as of December 31, 2022, 2021, and 2020.
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.