Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Temporary Differences Between Basis of Deferred Tax Assets and Liabilities

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred tax assets consist of the following (in thousands):

	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	46,362		$	33,275
Tax credit carryforwards		4,262			4,365
Accrued expenses		37			103
Deferred rent		—			2,209
Lease liabilities		6,776			—
Equity compensation		1,481			784
Amortizable intangibles		1,214			1,339
Other		138			78
Gross deferred tax assets		60,270			42,153
Deferred tax liabilities:
Property and equipment		(1,720	)		(1,863	)
Right of use assets		(4,716	)		—
Gross deferred tax liabilities		(6,436	)		(1,863	)
Valuation allowance		(53,834	)		(40,290	)
Net deferred tax assets	$	—		$	—

Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows (dollars in thousands):

	Years ended December 31,
	2019			2018
	Tax Rate			Tax Rate
U.S. federal statutory rate		21	%		21	%
State income taxes, net of federal benefit		6	%		6	%
Other permanent differences		(1	)%		(1	)%
Tax credits		0	%		3	%
Other items		0	%		(1	)%
Net change in valuation allowance		(26	)%		(28	)%
Effective income tax rate		—			—

Schedule of Valuation Allowance

A roll-forward of the valuation allowance for the years ended December 31, 2019 and 2018 is as follows (in thousands):

	Years ended December 31,
	2019			2018
Balance at beginning of year	$	(40,290	)	$	(26,515	)
Increase in valuation allowance		(13,544	)		(13,775	)
Balance at end of year	$	(53,834	)	$	(40,290	)