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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s loss before income taxes was generated from its U.S. operations and foreign operations as follows:
Year Ended December 31,
202420232022
United States$33,349 $51,004 $66,103 
Foreign16,407 10,505 8,214 
Loss before taxes$49,756 $61,509 $74,317 
The following table shows the expense (benefit) for income taxes:
Year Ended December 31,
202420232022
Current provision:
Federal $— $— $— 
State279 138 113 
Foreign406 33 — 
Total current provision$685 $171 $113 
Deferred provision (benefit):
Federal $(18)$1 $(8)
State(3)4 (10)
Foreign— — — 
Total deferred (benefit) provision$(21)$5 $(18)
Total provision for income taxes$664 $176 $95 
As of December 31, 2024, the Company has federal net operating loss (“NOL”) carryforwards of $315,179, of which $68,301 will begin to expire in 2034. The federal NOLs generated in 2018 and in the subsequent years in the amount of $246,877 have an indefinite carryforward period. As of December 31, 2024, the Company has state NOL carryforwards of $231,980, which will begin to expire in 2024. As of December 31, 2024, the Company has foreign NOL carryforwards of $38,922, which can be carried forward indefinitely. As of December 31, 2024, the Company has federal research and development
(“R&D”) credit carryforwards of $2,929, which will begin to expire in 2034. The Company also has California R&D credit carryforwards of $2,918, which has an indefinite carryforward period.
In general, if a company experiences a greater than 50 percentage point aggregate change in ownership of certain significant stockholders over a three-year period, utilization of its pre-change NOL carryforwards and R&D credit carryforwards, and interest expense under section 163(j), is subject to an annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state laws. The annual limitation may result in the expiration of the Company’s tax attribute carryforwards before utilization and may be material. The Company has completed a study to evaluate whether an ownership change, as defined by Section 382 of the Internal Revenue Code, occurred from the Company's formation through December 31, 2023. Based on the findings of this study, the Company has determined that several ownership changes have occurred. Consequently, the Company’s tax attribute carryforwards allocable to the periods preceding the ownership change are subject to limitation under Section 382. However, it is important to note that the Company’s tax attribute carryforwards, which include net operating losses (NOLs), research and development (R&D) credits, and interest expense under Section 163(j), are not anticipated to expire unused, solely due to the limitations under Section 382. The Company started but has not completed a study to determine whether its tax attribute carryforwards generated through December 31, 2024, are likely to be limited by Section 382 and 383. The Company’s net deferred income tax assets have been offset by a valuation allowance. Therefore, any resulting reduction to the Company’s tax attribute carryforwards once the analysis is completed will be offset by a corresponding reduction of the valuation allowance and there would be no impact on the Company’s consolidated balance sheet, statement of operations, or cash flows.

The components of deferred tax assets and liabilities were as follows:
As of December 31,
202420232022
Deferred income tax assets:
Net operating losses$86,277 $83,257 $80,494 
Stock compensation7,808 5,442 5,168 
Research and development credits2,617 2,617 2,617 
Accrued compensation6,405 5,955 4,675 
Operating lease liabilities2,152 1,567 646 
Accrued legal settlement16,283 17,674 19,203 
R&E capitalization4,107 3,415 1,100 
Fixed asset depreciation26 183 — 
Other, net8,382 5,126 2,135 
Valuation allowance(124,895)(116,073)(103,695)
Total deferred income tax assets9,162 9,163 12,343 
Deferred income tax liabilities:
Intangible amortization(7,343)(7,730)(11,525)
Operating lease right-of-use assets(1,825)(1,460)(495)
Fixed asset depreciation— — (345)
Total deferred income tax liabilities(9,168)(9,190)(12,365)
Net deferred income taxes$(6)$(27)$(22)
A reconciliation of the difference between the provision (benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows:
Year Ended December 31,
202420232022
Income tax at statutory rate$(10,413)$(12,917)$(15,607)
State income taxes, net of federal benefit(753)(1,981)(2,673)
Revaluation of contingent royalty obligation1,823 1,078 1,462 
Meals and entertainment713 385 358 
Change in state tax rate50 218 (3)
Officers' compensation1,231 793 (1,529)
Foreign Rate Differential443 222 10 
Stock compensation(1,377)449 299 
Other, net125 (449)(391)
Valuation allowance8,822 12,378 18,169 
Income tax provision
$664 $176 $95 
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
202420232022
Beginning balance$2,924 $2,924 $2,924 
Increases to prior year tax positions— — — 
Increases to current year tax positions— — — 
Ending balance$2,924 $2,924 $2,924 
The Company has considered the amounts and probabilities of the outcomes that can be realized upon ultimate settlement with the tax authorities and determined unrecognized tax benefits primarily related to credits should be established as noted in the summary rollforward above. The Company’s effective income tax rate would not be impacted if the unrecognized tax benefits are recognized. Additional amounts in the summary rollforward could impact the Company’s effective tax rate if it did not maintain a full valuation allowance on its net deferred tax assets. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.
The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There were no accrued interest and penalties associated with uncertain tax positions as of December 31, 2024, 2023, and 2022. The Company’s tax returns for all years since inception are open for audit. The Internal Revenue Service (“IRS”) commenced an examination of our U.S. income tax returns for the tax year ended December 31, 2022, in the third quarter of 2024. The exam is still in progress. As of December 31, 2024, the IRS has not proposed any adjustments to our tax positions.