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Provision For Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Provision For Income Taxes

12. Provision for Income Taxes

For the three and nine months ended September 30, 2023, the Company recognized an income tax expense of $1.8 million and $2.4 million, respectively, resulting in an effective tax rate of (1.2)%.

The income tax charge for the three and nine months ended September 30, 2023, was primarily due to unfavorable book-tax differences related to capitalizing and amortizing research and development expenditures under Internal Revenue Code, or IRC, Section 174, the upfront payment from the sale of future royalties, foreign income tax, and IRC Section 382 limitations imposed on the utilization of the Company's historical tax attributes as a result of cumulative ownership changes that the Company more likely than not experienced in prior years. The effective tax rates for the three and nine months ended September, 2023 vary from the U.S. federal statutory tax rate of 21% primarily due to the Company’s inability to recognize the benefit from its net deferred tax assets, which are offset by a valuation allowance. The Company has established a full valuation allowance against its net deferred tax assets due to the uncertainty surrounding the realization of such assets. All losses to date have been incurred domestically.

The Company recorded a foreign income tax charge of zero and $2.5 million during the three and nine months ended September 30, 2022, respectively, due to a withholding tax in China on its license revenue from Tasly.