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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) before provision for income taxes for the years ended December 31, 2021 and 2020 consisted of the following (in thousands):
|  | December 31, 2021 |  | December 31, 2020
U.S. |  | $ | 23,403 |  |  | $ | (16,667) |
Foreign |  | — |  |  | — |
Income (loss) before provision for income taxes |  | $ | 23,403 |  |  | $ | (16,667) |
The income tax (benefit)/expense for the years ended December 31, 2021 and 2020 consisted of the following (in thousands):
|  | December 31, 2021 |  | December 31, 2020
Current: |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  | 2 |  |  | — |
Foreign |  | — |  |  | — |
Total current income tax (benefit) expense |  | $ | 2 |  |  | $ | — |
Deferred: |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  | — |  |  | — |
Foreign |  | — |  |  | — |
Total deferred income tax expense (benefit) |  | — |  |  | — |
Income tax expense (benefit) |  | $ | 2 |  |  | $ | — |
The reconciliation between the provision for income tax expense and the amount of income tax computed by applying the U.S. federal statutory rate to income before provision for income taxes as shown in the accompanying consolidated statements of operations and other comprehensive loss for the years ended December 31, 2021 and 2020 consisted of the following:
|  | December 31, 2021 |  | December 31, 2020
Tax provision at U.S. federal statutory rate |  | 21.00 | % |  | — | %
Nondeductible expenses |  | 0.11 |  |  | — |
Fair value adjustments on earnout interests liability |  | (65.06) |  |  | — |
Fair value adjustments on derivative liability |  | (16.60) |  |  | — |
Fair value adjustments on convertible notes |  | 12.66 |  |  | — |
Transaction costs |  | (21.91) |  |  | — |
R&D credit |  | (3.18) |  |  | — |
State taxes, net of federal benefit |  | (20.33) |  |  | — |
Change in valuation allowance adjustment |  | 92.00 |  |  | — |
Other |  | 1.32 |  |  | — |
Effective tax rate |  | 0.01 | % |  | — | %
The Company's components of deferred tax assets and liabilities for the years ended December 31, 2021 and 2020 consisted of the following (in thousands):
|  | December 31, 2021 |  | December 31, 2020
Deferred tax assets: |  |  |  |
Net operating loss carryover |  | $ | 18,649 |  |  | $ | — |
General business and other tax credits |  | 1,180 |  |  | — |
Intangible assets |  | 2,376 |  |  | — |
Other non-current deferred tax assets |  | 603 |  |  | — |
Subtotal |  | 22,808 |  |  | — |
Valuation allowance |  | (21,530) |  |  | — |
Total |  | $ | 1,278 |  |  | $ | — |
Deferred tax liabilities: |  |  |  |
Fixed assets |  | $ | (1,278) |  |  | $ | — |
Total |  | $ | (1,278) |  |  | $ | — |
Net deferred tax asset |  | $ | — |  |  | $ | — |
The Company had net operating loss carryforwards for tax purposes of $130.9 million as of December 31, 2021. This is comprised of approximately $71.1 million of federal net operating loss carryovers and approximately $59.8 million of state net operating loss carryovers. The federal net operating loss has an indefinite carryforward period, and the state net operating loss carryovers may expire between 2036 and 2041. As of December 31, 2021, federal research and development credit carryforwards of $0.7 million which will begin to expire in 2041 and California research and development credit carryforwards of $0.5 million, which do not expire. As of December 31, 2021, the Company recorded a full valuation allowance of $21.5 million against the net deferred tax asset balance as realization is uncertain due to a history of net operating losses. Upon reversal of the valuation allowance, approximately $2.4 million is expected to benefit additional paid in capital and remaining balance of the valuation allowance will benefit income tax expense. The Company files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. The Company is not currently under audit by the Internal Revenue Service or other similar tax authorities and generally is no longer subject to examination for tax years prior to 2017. The Company had no unrecognized tax benefits for the years ended December 31, 2021 and 2020. Interest and penalties related to unrecognized tax benefits are recognized in operating expenses. No such interest and penalties were recognized during the years ended December 31, 2021 and 2020. The Company does not expect the amount of unrecognized tax benefits will materially change in the next twelve months.

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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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