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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table presents domestic and foreign components of loss before provision for income taxes:
| Years ended December 31,
| 2021 |  | 2020 |  |
| (In thousands)
U.S. | $ | (145,375) |  |  | $ | (110,327) |  |  |
Foreign | (165) |  |  | (6,066) |  |  |
Loss before income taxes | $ | (145,540) |  |  | $ | (116,393) |  |  |
The components of the Company’s income tax provision (benefit) were as follows:
| Years ended December 31,
| 2021 |  | 2020 |  |
| (In thousands)
Current: |  |  |  |  |
Foreign | $ | — |  |  | $ | 1,114 |  |  |
Total current tax provision | — |  |  | 1,114 |  |  |
Deferred |  |  |  |  |
Foreign | — |  |  | — |  |  |
Total deferred tax provision | — |  |  | — |  |  |
Total income tax provision | $ | — |  |  | $ | 1,114 |  |  |
Income tax provision for the years ended December 31, 2021 and 2020 differed from the amounts computed by applying the statutory federal income tax rate of 21% to pretax loss as a result of the following:
| Years ended December 31,
| 2021 |  | 2020 |  |
| (In thousands)
Federal income tax expense at statutory rate | $ | (30,563) |  |  | $ | (24,442) |  |  |
Stock compensation | 1,662 |  |  | (2,787) |  |  |
Non-deductible expenses | 28 |  |  | 941 |  |  |
Research and development tax credits | (2,672) |  |  | (3,150) |  |  |
Change in valuation allowance | 41,324 |  |  | 24,817 |  |  |
Foreign rate differential | (9) |  |  | 595 |  |  |
Impact of internal reorganization | (9,763) |  |  | 2,669 |  |  |
Uncertain tax positions | — |  |  | 2,305 |  |  |
Other | (7) |  |  | 166 |  |  |
Total tax provision | $ | — |  |  | $ | 1,114 |  |  |
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. The following table presents significant components of the Company’s deferred tax assets and liabilities:
| As of December 31,
| 2021 |  | 2020
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 111,741 |  |  | $ | 74,023 |
Accruals, reserve and other | 2,255 |  |  | 1,588 |
Tax credit carryforwards | 16,838 |  |  | 11,727 |
Stock-based compensation | 9,741 |  |  | 5,975 |
Intangibles | 1,613 |  |  | 18 |
Lease obligation | 24,224 |  |  | 6,630 |
Capital losses | 9,850 |  |  | 1 |
Other | 17 |  |  | 1 |
Total deferred tax assets before valuation allowance | 176,279 |  |  | 99,963 |
Valuation allowance | (154,672) |  |  | (94,645) |
Total deferred tax assets | 21,607 |  |  | 5,318 |
Deferred tax liabilities: |  |  |
Right-of-use assets | (20,227) |  |  | (4,183) |
Property and equipment | (1,380) |  |  | (1,135) |
Total deferred tax liabilities | $ | (21,607) |  |  | $ | (5,318) |
Net deferred tax assets | $ | — |  |  | $ | — |
The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company’s history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for deferred tax assets as of December 31, 2021 and 2020. The valuation allowance increased approximately $60.0 million and $28.4 million during the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company had U.S. federal net operating losses (“NOLs”) carryforwards of approximately $393.4 million to offset any future federal income. Approximately $57.3 million of NOLs expire at various years beginning with 2036. As of December 31, 2021, the Company also had U.S. state NOL carryforwards of approximately $227.1 million to offset any future state income. U.S. state NOLs expire at various years beginning with 2037. At December 31, 2021, the Company also had approximately $50.1 million of foreign net operating loss carryforwards which may be available to offset future foreign income; these carryforwards do not expire. As of December 31, 2021, the Company had federal research and development tax credit carryforwards of approximately $13.6 million available to reduce future tax liabilities which expire at various years beginning with 2036. As of December 31, 2021, the Company had state credit carryforwards of approximately $12.3 million available to reduce future tax liabilities which do not expire. Under Section 382 and 383 of the Code, our ability to utilize NOL carryforwards or other tax attributes such as research tax credits, in any taxable year may be limited if we have experienced an “ownership change.” Generally, a Section 382 ownership change occurs if there is a cumulative increase of more than 50 percentage points in the stock ownership of one or more stockholders or groups of stockholders who own at least 5% of a corporation’s stock within a specified testing period. Similar rules may apply under state tax laws. Due to a June 30, 2020 ownership change, we determined that certain NOLs and research and development tax credits for both federal and state purposes are subject to the 382 limitation; however, it was determined that there should be no material impact to the ability of the utilization before expiration. The Company files income tax returns in the U.S. federal, state, and foreign jurisdictions. The federal, state and foreign income tax returns are open under the statute of limitations subject to tax examinations for the tax years ended December 31, 2016 through December 31, 2020. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. The Company has total unrecognized tax benefits as of December 31, 2021 and 2020 of approximately $21.9 million and $8.7 million, respectively. As of December 31, 2021, the total amount of unrecognized tax benefits that would affect the Company's effective tax rate, if recognized, is $1.1 million. The Company does not anticipate a significant change to its unrecognized tax benefits over the next twelve months. A reconciliation of the unrecognized tax benefits is as follows:
| Years ended December 31,
| 2021 |  | 2020 |  |
| (In thousands)
Unrecognized tax benefits as of the beginning of the year | $ | 8,677 |  |  | $ | 3,558 |  |  |
Increase (decrease) related to prior year tax provisions | 10,656 |  |  | — |  |  |
Increase related to current year tax provisions | 2,611 |  |  | 5,119 |  |  |
Unrecognized tax benefits as of the end of the year | $ | 21,944 |  |  | $ | 8,677 |  |  |
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2021 and 2020, the Company accrued interest and penalties related to uncertain tax positions of $257,000. There are no ongoing examinations by taxing authorities at this time.

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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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