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Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

15. Income taxes

During the three and nine months ended September 30, 2022, the Company recorded an income tax provision of $2.4 million. During the three and nine months ended September 30, 2021, the Company did not record a tax provision. The income tax provision for the period ended September 30, 2022 is primarily attributable to the recognition of revenue for tax purposes under the collaboration agreements with Apellis and Pfizer, which was deferred in 2021 for tax purposes. In addition, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures currently and requires taxpayers to capitalize and amortize them over five or fifteen years pursuant to Section 174 of the Internal Revenue Code of 1986, as amended.

Utilization of the net operating loss, or NOL, and research and development credit carryforwards may be subject to a substantial annual limitation under Section 382 and 383 of the Internal Revenue Code due to ownership change limitations that have occurred previously, or that could occur in the future. These ownership changes may limit the amount of net operating loss and research and development credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company has completed a Section 382 study as of December 31, 2021. As of December 31, 2021 the Company had $374.4 million of federal net operating losses available, subject to an 80% limitation.

The Company evaluates the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective evidence evaluated was the cumulative loss incurred over the three-year period ended June 30, 2022 and that the Company has historically generated pretax losses. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. On the basis of this evaluation, as of June 30, 2022, the Company continued to maintain a full valuation allowance against its deferred tax assets, except to the extent NOLs have been used to reduce taxable income.