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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company has historically generated net operating losses in each of the tax jurisdictions in which it operates and has provided a valuation allowance against net deferred tax assets due to uncertainties regarding the Company’s ability to realize these assets. For financial reporting purposes, Loss before (benefits) provision for income taxes, includes the following components:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Domestic | $ | (200,485) |  |  | $ | (145,395) |  |  | $ | (23,605) |
Foreign | 112 |  |  | — |  |  | — |
Total | $ | (200,373) |  |  | $ | (145,395) |  |  | $ | (23,605) |
The provision for income taxes consists of the following:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 214 |  |  | 115 |  |  | — |
Foreign | 23 |  |  | — |  |  | — |
Total Current | 237 |  |  | 115 |  |  | — |
Deferred: |  |  |  |  |
Federal | (17,182) |  |  | — |  |  | — |
State | (2,051) |  |  | — |  |  | — |
Foreign | — |  |  | — |  |  | — |
Total Deferred | (19,233) |  |  | — |  |  | — |
Provision for income taxes | $ | (18,996) |  |  | $ | 115 |  |  | $ | — |
A reconciliation of the Company’s effective tax rate to the statutory U.S. federal rate of 21% is as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
U.S. Federal provision (benefit) |  |  |  |  |
At statutory rate | $ | (42,125) |  |  | $ | (30,533) |  |  | $ | (5,956) |
State taxes | (1,481) |  |  | 90 |  |  | — |
Valuation allowance | 38,456 |  |  | 26,245 |  |  | 6,320 |
Stock based compensation | (1,834) |  |  | (7,257) |  |  | (182) |
Permanent differences related to fair value adjustments | (18,464) |  |  | 8,573 |  |  | — |
Other permanent differences | 6,452 |  |  | 2,997 |  |  | (182) |
Total | $ | (18,996) |  |  | $ | 115 |  |  | $ | — |
Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities for federal and state income taxes are as follows:
| December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 105,317 |  |  | $ | 47,864 |
Stock-based compensation | 2,682 |  |  | 2,492 |
Reserves and accruals | 5,154 |  |  | 1,239 |
Lease liabilities | 3,750 |  |  | — |
Other | 632 |  |  | 291 |
Total deferred tax assets | $ | 117,535 |  |  | $ | 51,886 |
Less: valuation allowance | (95,857) |  |  | (51,859) |
Deferred tax assets, net of valuation allowance | $ | 21,678 |  |  | $ | 27 |
Deferred tax liabilities: |  |  |
Intangibles | (18,930) |  |  | — |
Property and Equipment | (120) |  |  | (27) |
Right of use assets | (3,471) |  |  | — |
Total deferred tax liabilities | (22,521) |  |  | (27) |
Net deferred tax assets | $ | (843) |  |  | $ | — |
A valuation allowance is required to be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A full review of all positive and negative evidence needs to be considered. As of December 31, 2021 and 2020, the Company has provided a full valuation allowance on its net deferred tax assets. The change in total valuation allowance from 2020 to 2021 was an increase of $44.0 million. The purchase accounting for the Aarki acquisition gave rise to a deferred tax liability during the year ended December 31, 2021; this resulted in a partial release of prior valuation allowance and a discrete benefit of $18.6 million was recorded. The Company has net operating loss carryforwards for federal and state income tax purposes of approximately $442.3 million and $151.9 million, respectively, as of December 31, 2021. The federal and state net operating loss carryforwards, if not utilized, will expire beginning in 2033 and 2032, respectively. $406.3 million of the federal net operating loss carryforwards are not subject to expiration. Utilization of some of the federal and state net operating loss and credit carryforwards may be subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before utilization. The Company has performed a Section 382 study as of December 31, 2021 and does not expect any net operating losses to expire unused due to Section 382 limitations. The Company files tax returns in the U.S., California, Massachusetts, and Oregon. The Company is not currently under examination in any of these jurisdictions and all its tax years remain open to examination due to net operating loss carryforwards. The Company does not have any material reserves for uncertain tax positions.

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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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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