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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Taxes [Abstract] |
INCOME TAXES | 10. INCOME TAXES The Company’s entire pretax loss for the year ended December 31, 2023, and for its entire pretax income for the year ended December 31, 2022, were from its U.S. domestic operations. The Company recorded a tax loss for the years ended December 31, 2023 and 2022. Therefore, the Company recorded no current or deferred income tax expense or benefit for the years ended December 31, 2023 and 2022. A reconciliation of the Company’s statutory income tax rate to the Company’s effective income tax rate is as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Income at US statutory rate |  |  | 21 | % |  |  | 21 | %
State taxes, net of federal benefit |  |  | 8 | % |  |  | (126 | )%
Permanent differences |  |  | — |  |  |  | 1 | %
Change in fair value of warrants |  |  | 1 | % |  |  | (342 | )%
Return to provision |  |  | — |  |  |  | (28 | )%
Officer’s compensation |  |  | — |  |  |  | 2 | %
Stock-based compensation |  |  | (2 | )% |  |  | 6 | %
Tax credits |  |  | 5 | % |  |  | (52 | )%
Change in valuation allowance |  |  | (33 | )% |  |  | 518 | %
|  |  | 0 | % |  |  | 0 | %
The Company’s deferred tax assets and (liabilities) are as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Deferred Tax Assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 34,636 |  |  | $ | 27,688 |
Tax credits |  |  | 11,850 |  |  |  | 7,057 |
Stock based compensation |  |  | 2,173 |  |  |  | 1,303 |
Capitalized R&D expenses |  |  | 22,348 |  |  |  | 11,456 |
Accruals and reserves |  |  | 843 |  |  |  | 1,034 |
Depreciation and amortization |  |  | 93 |  |  |  | 61 |
Lease liability |  |  | 4,053 |  |  |  | 4,240 |
Total deferred tax assets before valuation allowance |  |  | 75,996 |  |  |  | 52,839 |
Valuation allowance |  |  | (72,865 | ) |  |  | (49,518 | )
Net deferred tax assets |  | $ | 3,131 |  |  | $ | 3,321 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Right of use asset |  |  | (3,131 | ) |  |  | (3,321 | )
Total deferred tax liabilities |  |  | (3,131 | ) |  |  | (3,321 | )
Net deferred tax assets (liability) |  | $ | — |  |  | $ | — |
The deferred tax assets consist principally of net operating loss carryforwards and research and development tax credits. The future realization of the tax benefits from existing temporary differences and tax attributes ultimately depends on the existence of sufficient taxable income. In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers the scheduled reversal of projected future taxable income, and tax planning strategies in making this assessment. After consideration of all available evidence, both positive and negative, the Company has determined that it was more likely than not that the Company would not recognize the benefits of its federal and state net deferred tax assets. Accordingly, the Company has a full valuation allowance against the deferred tax assets as of December 31, 2023 and 2022. The change in the valuation allowance for the years ended December 31, 2023 and 2022 was an increase of $23.3 million and $26.7 million, respectively. The Company has incurred losses since inception that would generally be available to reduce future taxable income. As of December 31, 2023, the Company had U.S. federal net operating loss carryforwards of $128.8 million which includes $2.8 million that expire at various dates from 2034 through 2037, and $126.0 million that have an unlimited carryforward period. As of December 31, 2023, the Company had state net operating loss carryforwards of $120.2 million which includes $120.0 million that expire at various dates from 2035 through 2043, and $0.2 million that have an unlimited carryforward period. As of December 31, 2023, the Company had U.S. federal research and development tax credits of $8.0 million, which begin to expire in 2035. As of December 31, 2023, the Company had state research and development tax credits of $5.0 million, which begin to expire in 2034. The future realization of the Company’s net operating loss carryforwards and other tax attributes may also be limited by the change in ownership rules under Code Section 382. Under Section 382 of the Code, if a corporation undergoes an “ownership change” (as defined in Section 382 of the Code), the corporation’s ability to utilize its net operating loss carryforwards and other tax attributes to offset income may be limited. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes. The Company files income tax returns in the U.S. federal jurisdiction and in any state and local jurisdiction in which it operates. The Company is subject to tax examination by various taxing authorities. The Company is not currently under examination and is not aware of any issues under review that could result in significant payments, accruals or material deviation from its tax positions. 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 and local tax authorities to the extent utilized in a future period. As of December 31, 2023, the tax years from 2019 to present remain open to examination by relevant taxing jurisdictions to which the Company is subject. However, to the extent the Company utilizes net operating losses from years prior to 2019, the statute remains open to the extent of the net operating losses or other credits that are utilized. The calculation and assessment of the Company’s tax exposures generally involve the uncertainties in the application of complex tax laws and regulations for federal, state and local jurisdictions. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation, on the basis of the technical merits. As of December 31, 2023, the Company has not recorded any liabilities related to uncertain tax positions in its financial statements. Similarly, the Company has not accrued any interest and penalties related to uncertain tax positions as of December 31, 2023. The Company recognizes accrued interest and penalties, if any, related to uncertain tax positions in tax expense in its financial statements.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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