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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income TaxesThe Company had a pre-tax U.S. book loss of $97.3 million, $41.5 million, and $0.6 million for the years ended December 31, 2021, 2020 and 2019 respectively. During the years ended December 31, 2021, 2020 and 2019, the Company did not record an income tax provision. The Company will continue to maintain a 100% valuation allowance on total deferred tax assets. The Company believes it is more likely than not that the related deferred tax assets will not be realized. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Income tax computed at federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal tax benefit | 7.7 | % |  | 7.4 | % |  | 2.7 | %
General business credit—federal | 5.3 | % |  | 5.3 | % |  | 295.9 | %
Stock-based compensation | (0.7) | % |  | (1.0) | % |  | (50.0) | %
Other permanent differences | (0.1) | % |  | (0.1) | % |  | (2.4) | %
Change in valuation allowance | (33.2) | % |  | (32.6) | % |  | (267.7) | %
Effective income tax rate | 0.0 | % |  | — | % |  | (0.5) | %
Net deferred tax assets and liabilities consisted of the following (in thousands):
| December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Net operating losses | $ | 51,554 |  |  | $ | 27,047 |
Research and development credits | 13,989 |  |  | 7,617 |
Accrued expenses | 292 |  |  | 291 |
Other | 775 |  |  | 474 |
Deferred rent | — |  |  | 266 |
Lease liability | 2,000 |  |  | — |
Stock based compensation | 1,816 |  |  | 428 |
Total deferred tax assets | 70,426 |  |  | 36,123 |
Deferred tax liabilities: |  |  |
Fixed asset basis | $ | (61) |  |  | $ | (124) |
Prepaid expenses | (921) |  |  | (558) |
Right of use asset | (1,760) |  |  | — |
Total deferred tax liabilities | (2,742) |  |  | (682) |
Valuation allowance | 67,684 |  |  | 35,441 |
Net deferred taxes | $ | — |  |  | $ | — |
Net operating losses and tax credit carryforwards were as follows (in thousands):
| December 31, 2021 |  | Expiration Year
Net operating losses, federal (starting from January 1, 2018) | $ | 155,231 |  |  | Does not expire
Net operating losses, federal (before January 1, 2018) | $ | 29,486 |  |  | 2035-2037
Net operating losses, state | $ | 182,964 |  |  | 2035-2041
Tax credits, federal | $ | 14,094 |  |  | 2036-2041
Tax credits, state | $ | 4,069 |  |  | Does not expire
Utilization of the net operating loss carryforwards and research credit carryforwards may be subject to an annual limitation due to the ownership percentage change limitations provided by the Internal Revenue Code (“IRC”) and similar state provisions. Annual limitations may result in the expiration of the net operating losses and tax credit carryforwards before they are utilized. The Company performed a IRC Section 382 analysis through December 31, 2021 and does not expect any previous ownership changes to result in a limitation that will reduce the total amount of net operating loss and tax credit carryforwards disclosed that can be utilized. Subsequent ownership changes may affect the limitation in future years. During the years ended December 31, 2021 and 2020, the Company recorded a full valuation allowance on federal and state deferred balances since management does not forecast the Company to be in a profitable position in the near future. Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2021 and 2020 related primarily to the increases in net operating loss carryforwards and research and development tax credit carryforwards and were as follows (in thousands):
| Year Ended December 31,
| 2021 |  | 2020
Valuation allowance at the beginning of the year | $ | 35,441 |  |  | $ | 21,929 |
Increases recorded to income tax provision | 32,243 |  |  | 13,512 |
Valuation allowance at the end of the year | $ | 67,684 |  |  | $ | 35,441 |
The Company’s U.S. federal and state income tax returns are generally subject to tax examinations for the tax years ended December 31, 2017 through December 31, 2021. There are currently no pending income tax examinations. 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 and state tax authorities to the extent utilized in a future period. The entire amount of the unrecognized tax benefits would not impact the Company’s effective tax rate if recognized. The Company's accounting policy is to include interest and penalties as a component of tax expense. During the years ended December 31, 2021, 2020 and 2019, the Company did not recognize accrued interest and penalties related to unrecognized tax benefits. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease during the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
January 1 | $ | 2,007 |  |  | $ | 1,355 |  |  | $ | 855 |
Additions based on tax positions related to current year | 1,081 |  |  | 513 |  |  | 570 |
Additions (reductions) for tax positions of prior year | 417 |  |  | 139 |  |  | (70) |
December 31 | $ | 3,505 |  |  | $ | 2,007 |  |  | $ | 1,355 |
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "Cares Act") was enacted. The CARES Act changed net loss carryforward and back provisions and the business interest expenses limitation. The Company has evaluated the impact of the CARES Act and determined that none of the changes would result in a material cash benefit to the Company.

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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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