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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Components of Loss Before Income Tax Provision (Benefit)

The components of loss before income tax provision (benefit) for the years ended December 31, 2022 and 2021 consisted of the following (in thousands):

		Year Ended December 31,
		2022				2021
U.S.			(60,403	)			(37,705	)
Foreign			(2,025	)			(1,347	)
		$	(62,428	)		$	(39,052	)

Summary of Reconciliation of Expected Statutory Federal Income Tax Provision to Actual Income Tax Provision

The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision for the years ended December 31, 2022 and 2021 (in thousands):

		Year Ended December 31,
		2022				2021
Income taxes at statutory rates		$	(13,110	)		$	(8,201	)
State income tax, net of federal benefit			-				-
Stock-based compensation			533				451
Permanent items			128				31
Federal research and orphan drug credits			(1,152	)			(1,713	)
Foreign rate differential			425				72
Transaction costs			89				-
Acquired in-process research and development			4,840				-
Change in federal valuation allowance			8,247				9,360
		$	-			$	-

Significant Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are as follows (in thousands):

		December 31,
		2022				2021
Deferred tax assets:
Net operating loss carryforward		$	28,222			$	19,344
Credits			9,289				3,940
Capitalized research expenditures			7,086				-
Equity compensation			1,829				1,134
Other			1,196				1,184
Total deferred tax assets			47,622				25,602
Valuation allowance			(46,317	)			(25,215	)
Total deferred tax assets, net of allowance		$	1,305			$	387
Deferred tax liabilities:
Operating lease right-of-use asset			(284	)			(346	)
Deferred revenue			(945	)			-
Other			(76	)			(41	)
Total deferred tax liabilities		$	(1,305	)		$	(387	)
Net deferred taxes		$	-			$	-

Summary of Reconciliation of Unrecognized Tax Benefits

The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2022 and 2021 (in thousands):

		Year Ended December 31,
		2022				2021
Unrecognized tax benefits – beginning		$	5,487			$	2,667
Gross increases – tax positions in prior period			-				2,266
Gross decreases – tax positions in prior period			-				-
Gross increase – current-period tax positions			392				554
Gross decrease – current-period tax positions			-				-
Settlements			-				-
Lapse of statute of limitations			-				-
Unrecognized tax benefits – ending		$	5,879			$	5,487

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Summary of reconciliation of expected statutory federal income tax provision to actual income tax provision.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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-Publisher FASB
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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination.

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