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Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

 

The Company has recorded an income tax provision of $0.3 million and zero for the three months ended March 31, 2023 and 2022, respectively. The primary difference in tax expense as compared to the same period from prior year and prior year end is a result of the Kite Collaboration Agreement entered into during the first quarter of 2023, resulting in estimated taxable income for the current year as compared to taxable losses in the past. See Note 6 - Collaboration Agreement. The tax provision for Q1 2023 was determined using an estimated annual effective tax rate, adjusted for discrete items, if any.

Based on the available objective evidence during the three months ended March 31, 2023, the Company believes it is more likely than not that the tax benefits of U.S. losses incurred during prior years may not be realized. Accordingly, the Company did not record the tax benefits of U.S. losses previously incurred as of March 31, 2023. The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the Company’s U.S. losses.