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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes The Company accounts for income taxes under FASB ASC 740 (“ASC 740”). For the years ended December 31, 2023 and 2022, the Company did not record a current or deferred income tax expense or benefit. The following table reconciles the federal statutory income rate to the Company’s effective income tax rate:
|  | Year Ended December 31,
|  | 2023 |  | 2022
Federal income tax rate |  | 21.0 % |  | 21.0 %
State income tax benefit |  | 6.1 % |  | 5.8 %
Permanent items |  | (0.9) % |  | (0.4) %
Research tax credits |  | 5.7 % |  | 5.5 %
Other |  | (0.4) % |  | (0.4) %
Valuation allowance |  | (31.5) % |  | (31.5) %
Effective income tax rate |  | — |  | —
Deferred tax assets and liabilities reflect the net tax effects of net operating loss and tax credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting and the amounts used for tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows:
|  | December 31, |
(in thousands) |  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Accrued expenses |  | $ | 1,428 |  |  | $ | 1,224 |
Federal net operating loss carryforwards |  |  | 39,934 |  |  |  | 32,262 |
State net operating loss carryforwards |  |  | 11,423 |  |  |  | 8,919 |
Tax credits |  |  | 17,062 |  |  |  | 10,712 |
Stock compensation |  |  | 1,545 |  |  |  | 1,248 |
R&D Capitalization |  |  | 33,503 |  |  |  | 14,881 |
Amortization |  |  | 1,464 |  |  |  | 429 |
Lease liability |  |  | 9,746 |  |  |  | 10,445 |
Total deferred tax assets |  |  | 116,105 |  |  |  | 80,120 |
Valuation allowance |  |  | (104,403 | ) |  |  | (68,348 | )
Net total deferred tax assets |  | $ | 11,702 |  |  | $ | 11,772 |
Deferred tax liabilities: |  |  |  |  |  |
Lease right of use asset |  |  | (10,945 | ) |  |  | (11,951 | )
Depreciation and amortization |  |  | (757 | ) |  |  | 179 |
Total deferred tax liabilities |  | $ | (11,702 | ) |  | $ | (11,772 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
The Company has weighed the positive and negative evidence to assess the recoverability of its deferred tax assets. Realization of future tax benefits is dependent on many factors, including the Company’s ability to generate taxable income. After this assessment, the Company determined it was more likely than not that the Company will not realize the benefit of its deferred tax assets. As a result, the Company has provided a full valuation allowance against its net deferred tax assets. The valuation allowance for deferred tax assets as of December 31, 2023 and 2022 was $104.4 million and $68.3 million, respectively. For the years ended December 31, 2023 and 2022, the Company recorded an increase in the valuation allowance of $36.1 million and $28.9 million, respectively, primarily related to net operating losses incurred by the Company. As of December 31, 2023, the Company had gross U.S. federal net operating loss carryforwards of $190.2 million including $188.3 million that had an indefinite carryforward period and $1.9 million that were subject to expiration at various dates through 2037. As of December 31, 2023, the Company had state net operating loss carryforwards of $180.8 million which will expire at various dates through 2043. As of December 31, 2023, the Company had U.S. federal research and development tax credit carryforwards of $12.2 million which will expire at various dates through 2042 and state research and credit carryforwards of $6.1 million which will expire at various dates through 2038. The net operating loss and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Net operating loss and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has not determined whether an ownership change has occurred and as such, the Company’s net operating losses may be limited. Any limitation may result in expiration of a portion of the net operating loss carryforwards or research development credit carryforwards before utilization. The Company has not, as yet, conducted a study of research and development credit carryforwards. Such a study, once undertaken by the Company, may result in an adjustment to the research and development credit carryforwards. However, a full valuation allowance has been provided against the Company’s research and development credits and, if any adjustment is required, such adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if any adjustment is required. As of December 31, 2023 and 2022, the Company did no t have any unrecognized tax benefits. Any future interest and penalties related to income tax matters would be recognized in the provision for income tax. As of December 31, 2023 and 2022, the Company did no t have a balance of accrued interest and penalties related to uncertain tax positions. The Company files income tax returns in the United States and various states. As of December 31, 2023, there were no income tax examinations in progress. The tax years 2020 through present remain open to examination by major taxing jurisdictions to which the Company is subject, which are primarily in the United States. In addition, tax years prior to 2019 resulted in losses and the Company also generated research and development tax credits during those years. Since carryforward attributes generated in these years may be utilized in future years, years prior to 2019 may still be adjusted upon examination by the Internal Revenue Service or state tax authorities if they have or will be used in a future period.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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