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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our loss before provision for income taxes were as follows (in thousands): 
 Year Ended December 31,
 202420232022
United States$(65,231)$(76,169)$(33,269)
Foreign(11)(2)(47)
Loss before provision for income taxes$(65,242)$(76,171)$(33,316)
The tax provision for the year ended December 31, 2024 and 2023 consists primarily of current year state and foreign income taxes. The tax provision for the year ended December 31, 2022 consists primarily of taxes attributable to foreign operations. The components of the provision for income taxes are as follows (in thousands): 
 Year Ended December 31,
 202420232022
Current provision:
State$(6)$27 $141 
Foreign42 42 142 
Total current provision 36 69 283 
Deferred benefit:
Foreign(2)— (7)
Total deferred benefit(2)— (7)
Provision for income taxes$34 $69 $276 
Reconciliation of the provision for income taxes calculated at the statutory rate to our provision for income taxes is as follows (in thousands): 
 Year Ended December 31,
 202420232022
Tax benefit at federal statutory rate$(13,701)$(15,995)$(6,996)
State taxes(3,133)(2,208)(494)
Research and development credits(419)(925)(1,793)
Foreign operations taxed at different rates— — 78 
Stock-based compensation1,930 1,967 239 
Other nondeductible items(108)438 (238)
Executive compensation306 152 80 
Change in valuation allowance15,159 16,640 9,400 
Provision for income taxes$34 $69 $276 
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards.
Significant components of our deferred tax assets and liabilities are as follows (in thousands): 
 December 31,
 20242023
Deferred tax assets:
Net operating losses$82,925 $72,586 
Credits17,660 16,412 
Deferred revenues48 176 
Stock-based compensation4,786 4,445 
Reserves and accruals2,650 2,774 
Property and Equipment830 457 
Intangible assets244 532 
Capital losses452 424 
R&D Capitalization28,471 26,821 
Unrealized gain/loss2 — 
Lease liability7,445 3,608 
Other assets4,362 2,542 
Total deferred tax assets:149,875 130,777 
Valuation allowance(142,994)(127,835)
Deferred tax liabilities:
Right-of-use assets(6,895)(2,958)
Total deferred tax liabilities:(6,895)(2,958)
Net deferred tax liabilities$(14)$(16)
ASC 740 requires that the tax benefit of NOLs, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Because of our history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not more likely than not to be realized and, accordingly, has provided a valuation allowance against our deferred tax assets. Accordingly, the net deferred tax assets in all our jurisdictions have been fully reserved by a valuation allowance. The net valuation allowance increased by $15.2 million during the year ended December 31, 2024, increased by $16.7 million during the year ended December 31, 2023, and increased by $9.4 million during the year ended December 31, 2022. At such time as it is determined that it is more likely than not that the deferred tax assets are realizable, the valuation allowance will be reduced.
The following table sets forth our federal, state and foreign NOL carryforwards and federal research and development tax credits as of December 31, 2024 (in thousands): 
 December 31, 2024
 AmountExpiration
Years
Net operating losses, federal$182,918 2026-2037
Net operating losses, federal$158,554 Do not expire
Net operating losses, state$175,040 2028-2044
Tax credits, federal$19,073 2024-2044
Tax credits, state$20,791 Do not expire
Current U.S. federal and California tax laws include substantial restrictions on the utilization of NOLs and tax credit carryforwards in the event of an ownership change of a corporation. Accordingly, the Company's ability to utilize NOLs and tax credit carryforwards may be limited as a result of such ownership changes. We performed an analysis in 2024 and determined that there was not a limitation that would result in the expiration of carryforwards before they are utilized.
We apply the provisions of ASC 740 to account for uncertain income taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 
 December 31,
 202420232022
Balance at beginning of year$20,204 $18,571 $15,261 
Additions based on tax positions related to current year1,332 2,164 3,553 
Additions to tax position of prior years82 — — 
Reductions to tax position of prior years— (531)(243)
Balance at end of year$21,618 $20,204 $18,571 
We recognize interest and penalties as a component of our income tax expense. Total interest and penalties recognized in the consolidated statements of operations were $42 thousand, $42 thousand and $42 thousand in 2024, 2023 and 2022, respectively. Total penalties and interest recognized in the balance sheet was $0.6 million, $0.6 million and $0.5 million as of December 31, 2024, 2023 and 2022, respectively. The total unrecognized tax benefits that, if recognized currently, would impact our company’s effective tax rate were $0.3 million as of December 31, 2024, 2023 and 2022. We do not expect any material changes to our uncertain tax positions within the next 12 months. We are not subject to examination by United States federal or state tax authorities for years prior to 2002 and foreign tax authorities for years prior to 2014.