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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 recorded no federal provision for income taxes as of December 31, 2021 and 2020 due to reported net losses since inception. The difference between the Company’s provision for income taxes and the amounts computed by applying the statutory federal income tax rate to income before income taxes is as follows for the years ended December 31, 2021 and 2020 (amounts in thousands):
| Year Ended December 31,
| 2021 |  | 2020
Income tax benefit computed at federal statutory tax rate | $ | (9,445) |  |  | $ | (7,687) |
Change in valuation allowance | 13,045 |  |  | 8,717 |
Return to provision adjustments | — |  |  | (745) |
General business credits | (3,108) |  |  | (1,114) |
Other permanent differences | — |  |  | 119 |
Stock compensation | (1,923) |  |  | — |
Section 162(m) limitation | 809 |  |  | — |
Change in uncertain tax position | 622 |  |  | 223 |
Other | — |  |  | 487 |
Income tax benefit | $ | — |  |  | $ | — |
Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (amounts in thousands):
| December 31,
| 2021 |  | 2020
Deferred tax asset: |  |  |
Net operating loss carryforwards | $ | 20,460 |  |  | $ | 9,891 |
Accrued expenses and other | 3,520 |  |  | 1,345 |
Stock compensation | 779 |  |  | 182 |
Credit carryforwards | 6,194 |  |  | 3,708 |
Deferred revenue | — |  |  | 2,631 |
Capital loss carryforwards | 484 |  |  | 27 |
Gross deferred tax asset | 31,437 |  |  | 17,784 |
Less valuation allowance | (30,331) |  |  | (17,285) |
Net deferred tax asset | 1,106 |  |  | 499 |
Deferred tax liability: |  |  |
Depreciation and amortization | (578) |  |  | (121) |
Prepaid expenses | (528) |  |  | (378) |
Total deferred tax liability | (1,106) |  |  | (499) |
Total net deferred tax asset | $ | — |  |  | $ | — |
The Company has established a valuation allowance equal to the net deferred tax asset due to uncertainties regarding the realization of the deferred tax asset based on the Company’s lack of earnings history. The valuation allowance increased by $13.0 million and $8.7 million during the years ended December 31, 2021 and 2020, respectively, primarily due to continuing loss from operations, general business credit carryforwards, and accrued expenses. As of December 31, 2021 and 2020, the Company had gross U.S. net operating loss (“NOL”) carryforwards of $97.4 million and $47.1 million, respectively. Additionally, as of December 31, 2021 and 2020, the Company had capital loss carryforwards of $2.3 million and $0.1 million, respectively. As of December 31, 2021 and 2020, the Company had gross state NOL carryforwards of $0.2 million and $0.2 million, respectively. As of December 31, 2021 and 2020, the Company had gross U.S. tax credit carryforwards of $7.6 million and $4.5 million, respectively. The NOL, capital loss, and tax credit carryforwards will begin to expire in 2036, if not utilized. The NOL, capital loss, and credit carryforwards are subject to Internal Revenue Service adjustments until the statute closes on the year the net operating loss or credit carryforwards are utilized. Section 382 of the Internal Revenue Code limits the utilization of U.S. NOLs following a change of control. After the 2019 financial statements were filed, the Company completed a Section 382 study from formation through October 14, 2020. Although an ownership change occurred during 2020, no deferred tax assets were impacted by the limitation. A reconciliation of our liability for unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2021 |  | 2020
Balance, beginning of the year | $ | 783 |  |  | $ | 560 |
Increase for tax positions related to the current year | 449 |  |  | 223 |
Increase for tax positions related to prior years | 172 |  |  | — |
Balance, end of year | $ | 1,404 |  |  | $ | 783 |
All of the Company’s gross unrecognized tax benefits, if recognized, would affect its effective tax rate. The Company does not expect unrecognized tax benefits to decrease within the next twelve months due to the lapse of statute limitations. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2021, the Company has not accrued any interest or penalties related to unrecognized tax benefits. The Company files income tax returns in the U.S. and state jurisdictions. The Company is subject to examination by taxing authorities in its significant jurisdictions for the 2018, 2019, and 2020 tax years. There are currently no federal or state income tax audits in progress.

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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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