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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company’s income (loss) from operations before income tax provision (benefit) by jurisdiction for the years ended December 31 are as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Domestic | $ | (712,183) |  |  | $ | (1,633,016) |  |  | $ | (455,253) |
Foreign | 58,536 |  |  | (81,520) |  |  | 36,994 |
Loss before income tax expense | $ | (653,647) |  |  | $ | (1,714,536) |  |  | $ | (418,259) |
Significant components of the current income tax provision (benefit) are as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Domestic | $ | 1,300 |  |  | $ | — |  |  | $ | — |
State and local | 503 |  |  | — |  |  | — |
Foreign | 2,489 |  |  | 29,215 |  |  | — |
Total current income tax expense | $ | 4,292 |  |  | $ | 29,215 |  |  | $ | — |
During the years ended December 31, 2022, 2021, and 2020, the Company recognized $4.3 million, $29.2 million, and no federal, state, and foreign current income tax expense. The foreign income tax expense is primarily related to foreign withholding tax on royalties. The Company recognized no deferred income tax expense during the years listed above due to a full valuation allowance. A reconciliation of the provision for income tax to the amount computed by applying the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Statutory federal tax rate | 21 | % |  | 21 | % |  | 21 | %
State income taxes, net of federal benefit | 2 | % |  | 6 | % |  | 3 | %
Research and development and other tax credits | 1 | % |  | 1 | % |  | — | %
Non-deductible expenses | (1) | % |  | (2) | % |  | (4) | %
Non-cash stock-based compensation | (1) | % |  | 4 | % |  | 7 | %
U.S. taxation of foreign operations | (3) | % |  | — | % |  | — | %
Foreign tax expense | — | % |  | (1) | % |  | — | %
Other | 2 | % |  | (1) | % |  | (1) | %
Change in tax rate | (20) | % |  | — | % |  | 5 | %
Change in valuation allowance | (2) | % |  | (30) | % |  | (31) | %
Income tax provision | (1) | % |  | (2) | % |  | — | %
As of December 31, 2022, the Company has available federal, state, and foreign net operating losses of $2.0 billion, $0.9 billion, and $29.1 million, respectively, that may be applied against future taxable income in the respective jurisdiction. The federal net operating losses of $2.0 billion can be carried forward indefinitely, although limited to 80% of annual taxable income. State net operating losses of $0.4 billion have various expiration dates between 2028 and 2042. The remaining state net operating losses of $0.5 billion can be carried forward indefinitely. Approximately $15.1 million of the foreign net operating losses will begin to expire in 2024 through 2027. The remaining $14.0 million of foreign net operating losses can be carried forward indefinitely. The Company also has research tax credits of $46.0 million that will begin to expire in 2030 through 2052. Utilization of the domestic net operating loss carryforwards and research tax credits may be subject to an annual limitation due to potential ownership changes of the Company. As of December 31, 2022, the Company does not expect such limitation, if any, to impact the use of these domestic net operating losses and research tax credits. The Company files income tax returns in the U.S. federal jurisdiction and in various states, as well as in foreign jurisdictions such as Sweden and the Czech Republic. The Company has U.S. federal and state net operating losses and credit carryforwards that are subject to examination from 2002 through 2022. The returns in Sweden are subject to examination from 2016 through 2022 and the returns for the Czech Republic are subject to examination from 2019 through 2022. The significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands):
| December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Federal and state net operating loss carryforward | $ | 479,134 |  |  | $ | 845,731 |
Foreign net operating loss carryforward | 5,752 |  |  | 25,625 |
Research tax credits | 45,560 |  |  | 44,618 |
Lease liability | 27,625 |  |  | 52,852 |
Deferred revenue | 195,049 |  |  | 20,262 |
Inventory reserve | 213,076 |  |  | — |
Non-cash stock-based compensation | 27,599 |  |  | 24,698 |
Original discount interest | — |  |  | 1,729 |
Capitalized research costs | 49,309 |  |  | — |
Other | 13,695 |  |  | 11,801 |
Gross deferred tax assets | 1,056,799 |  |  | 1,027,316 |
Valuation allowance | (1,020,123) |  |  | (1,015,333) |
Total deferred tax assets | $ | 36,676 |  |  | $ | 11,983 |
Deferred tax liabilities: |  |  |
ROU assets | (23,330) |  |  | (10,071) |
Fixed assets | (11,587) |  |  | — |
Intangibles | (1,055) |  |  | (1,034) |
Other | (704) |  |  | (878) |
Total deferred tax liabilities | $ | (36,676) |  |  | $ | (11,983) |
Net deferred tax assets (liabilities) | $ | — |  |  | $ | — |
The Company has evaluated the positive and negative evidence bearing upon the realization of its deferred tax assets, including its history of significant losses in every year since inception and, in accordance with U.S GAAP, has fully reserved the net deferred tax asset. The Company concluded that realization of its net deferred tax assets is not more-likely-than-not to be realized as of December 31, 2022 and 2021. The valuation allowance increased by $4.8 million and $510.5 million for the years ended December 31, 2022 and 2021, respectively. On a periodic basis, the Company reassesses the valuation allowance on its deferred income tax assets, weighing positive and negative evidence to assess the recoverability. In 2022, the Company reassessed the valuation allowance and considered negative evidence, including its cumulative losses over the three years ended December 31, 2022 and the substantial doubt about the Company’s ability to continue as a going concern through one year from the date that these financial statements are issued, and positive evidence, including its regulatory authorizations for and commercial sales of NVX-CoV2373. After assessing both the negative and positive evidence, the Company concluded that it should maintain the valuation allowance on its net operating losses, credits, and its other deferred tax assets as of December 31, 2022. The release of the valuation allowance, as well as the exact timing and the amount of such release, continue to be subject to, among other things, the Company's level of profitability, revenue growth, clinical program progression, and expectations regarding future profitability. The Company's total net deferred tax asset balance subject to the valuation allowance was $1.1 billion and $1.0 billion as of December 31, 2022 and 2021, respectively. The Company recognizes the effect of an income tax position when it is more likely than not, based on the technical merits, that the income tax position will be sustained upon examination. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the year ended December 31, 2022, 2021, and 2020 is as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Unrecognized tax benefits balance at January 1, | $ | 11,154 |  |  | $ | 8,766 |  |  | $ | — |
Additions for tax positions of current year | 1,260 |  |  | 4,158 |  |  | 1,413 |
Additions for tax positions of prior years | 807 |  |  | — |  |  | 7,353 |
Reductions for tax positions of prior year | (8,027) |  |  | (1,770) |  |  | — |
Settlements of tax positions of prior years | — |  |  | — |  |  | — |
Unrecognized tax benefits balance at December 31, | $ | 5,194 |  |  | $ | 11,154 |  |  | $ | 8,766 |
The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2022 and 2021, the Company had no accruals for interest or penalties related to income tax matters. The total amount of unrecognized tax benefits that, if recognized, could affect the effective tax rate was $5.2 million and $11.2 million as of December 31, 2022 and 2021, respectively. However, the Company maintains a full valuation allowance as of December 31, 2022 and 2021 and the recognition of any unrecognized tax benefits would be offset with a change in the valuation allowance and therefore there would be no income statement impact. As of December 31, 2022, the Company does not expect a significant change in the recorded unrecognized tax benefits reserve balance during the next twelve months. The unrecognized tax benefits are presented in the financial statements as a reduction to the deferred tax assets for all periods.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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