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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 13. Income Taxes U.S and foreign components of consolidated loss before income taxes for the years ended December 31, 2022, 2021 and 2020, was as follows (in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Loss before income taxes: |  |  |  |  |  |  |  |  |
U.S. |  | $ | (43,096 | ) |  | $ | (54,757 | ) |  | $ | (61,246 | )
Foreign |  |  | 759 |  |  |  | 700 |  |  |  | 1,673 |
Loss before income taxes |  | $ | (42,337 | ) |  | $ | (54,057 | ) |  | $ | (59,573 | )
The provision for income taxes for the years ended December 31, 2022, 2021 and 2020, was as follows (in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Provision for income taxes: |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |
Foreign |  | $ | 520 |  |  | $ | 274 |  |  | $ | 274 |
Federal |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | 5 |  |  |  | — |  |  |  | — |
Total current |  |  | 525 |  |  |  | 274 |  |  |  | 274 |
Deferred: |  |  |  |  |  |  |  |  |
Foreign |  |  |  |  |  | — |  |  |  | — |
Federal |  |  | (18 | ) |  |  | 23 |  |  |  | 6 |
State |  |  | (19 | ) |  |  | 22 |  |  |  | 4 |
Total deferred |  |  | (37 | ) |  |  | 45 |  |  |  | 10 |
Provision for income taxes |  | $ | 488 |  |  | $ | 319 |  |  | $ | 284 |
The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to loss before taxes for the years ended December 31, 2022, 2021 and 2020, was as follows (in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal statutory tax |  | $ | (8,891 | ) |  | $ | (11,352 | ) |  | $ | (12,510 | )
Federal research credits |  |  | (1,874 | ) |  |  | (2,159 | ) |  |  | (1,630 | )
State research credits |  |  | (822 | ) |  |  | (767 | ) |  |  | (749 | )
Expiration of federal carryovers |  |  | 4,858 |  |  |  | 4,651 |  |  |  | 9,200 |
Change in valuation allowance |  |  | 6,379 |  |  |  | 10,482 |  |  |  | 6,738 |
Compensation related items |  |  | 1,794 |  |  |  | 460 |  |  |  | 978 |
State taxes |  |  | (1,127 | ) |  |  | (1,294 | ) |  |  | (1,921 | )
Other |  |  | 171 |  |  |  | 298 |  |  |  | 178 |
Provision for income taxes |  | $ | 488 |  |  | $ | 319 |  |  | $ | 284 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at the enacted rates. The significant components of the Company’s deferred tax assets and liabilities at December 31, 2022, 2021 and 2020, were as follows (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 136,632 |  |  | $ | 150,523 |
Research and development credit carryforwards |  |  | 29,242 |  |  |  | 29,411 |
Capitalized research and development |  |  | 27,916 |  |  |  | 8,406 |
Compensation related items |  |  | 12,014 |  |  |  | 11,951 |
Operating leases |  |  | 3,786 |  |  |  | 4,125 |
Other |  |  | 9,056 |  |  |  | 8,218 |
Total deferred tax assets |  |  | 218,646 |  |  |  | 212,634 |
Valuation allowance |  |  | (215,903 | ) |  |  | (209,524 | )
Net deferred tax assets |  | $ | 2,743 |  |  | $ | 3,110 |
Deferred tax liabilities: |  |  |  |  |  |
Right-of-use assets |  | $ | 2,610 |  |  | $ | 2,895 |
Other |  |  | 194 |  |  |  | 313 |
Total deferred tax liabilities |  | $ | 2,804 |  |  | $ | 3,208 |
The valuation allowance increased by $6.4 million for the year ended December 31, 2022, compared to the increase of $10.5 million and $6.7 million for the years ended December 31, 2021 and 2020, respectively. The Company believes that, based on a number of factors, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets such that a valuation allowance has been recorded. These factors include the Company’s history of net losses since its inception, the need for regulatory approval of the Company’s products prior to commercialization and expected near-term future losses. The Company expects to maintain a valuation allowance until circumstances change. For the year ended December 31, 2022, the Company reported pretax net losses on its consolidated statement of operations and calculated taxable losses for both federal and state taxes. The difference between reported net loss and taxable loss are due to differences between book accounting and the respective tax laws. The Company's tax losses and credits are subject to varying carryforward periods. The gross amounts and dates of expiration of the significant carryforwards are as follows:
|  |  |  |  | Expires |  |  | Expires |  |  | Expires |  |  | No |
|  | Total |  |  | 2023-2025 |  |  | 2026-2032 |  |  | 2033-2042 |  |  | Expiration |
Federal losses carryovers |  | $ | 616,922 |  |  | $ | 69,647 |  |  | $ | 186,833 |  |  | $ | 169,673 |  |  | $ | 190,769 |
California loss carryovers |  |  | 75,192 |  |  |  |  |  |  | 46,641 |  |  |  | 28,551 |  |  |  |
Other state loss carryovers |  |  | 37,687 |  |  |  | 601 |  |  |  | 364 |  |  |  | 36,722 |  |  |  |
Federal research credits |  |  | 18,036 |  |  |  | 3,758 |  |  |  | 1,483 |  |  |  | 12,795 |  |  |  |
California research credits |  |  | 14,186 |  |  |  |  |  |  |  |  |  |  |  |  | 14,186 |
Federal foreign tax credits |  |  | 610 |  |  |  |  |  |  | 610 |  |  |  |  |  |  |
The Company’s ability to utilize net operating loss and research and development credit carryforwards is limited by (a) its ability to generate future taxable income, (b) varying apportionment and allocation rules, and (c) limitations pursuant to the ownership change rules in accordance with Section 382 of the Internal Revenue Code of 1986 and with Section 383 of the Internal Revenue Code of 1986, as well as similar state provisions. The Company’s unrecognized tax benefits primarily relate to federal and California research tax credits. These tax credits have not been utilized on any tax return and currently have no impact on the Company’s tax expense due to the Company’s operating losses and the related valuation allowances. There are additional unrecognized tax benefits related to foreign activities. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):
|  | December 31, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Unrecognized tax benefits at beginning of period |  | $ | 9,366 |  |  | $ | 10,110 |
Decreases related to expired carryforwards |  |  | (1,481 | ) |  |  | (1,296 | )
Increases related to prior year tax positions |  |  | 258 |  |  |  | 112 |
Increases related to current year tax positions |  |  | 509 |  |  |  | 440 |
Unrecognized tax benefits at end of period |  | $ | 8,652 |  |  | $ | 9,366 |
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. During the next twelve months, it is reasonably possible that the Company’s unrecognized tax benefit may decrease by as much as $0.3 million due to settlements in foreign tax jurisdictions. However, this may change as the Company continues to have ongoing negotiations with foreign taxing authorities throughout the year.

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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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