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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income Taxes and Deferred Tax Assets and Liabilities
The components of loss from operations before provision for income taxes consist of the following:
Year Ended December 31,
20212020
Domestic$(11,062)$(10,287)
Foreign67 137 
Net loss from operations before income tax provision$(10,995)$(10,150)
The components of the income tax provision consisted of the following for the years ended December 31, 2021 and 2020:
Year Ended December 31,
20212020
Current Tax Provision:
Federal$— $— 
State— — 
Foreign— — 
Total current— — 
Deferred Tax Benefit:
Federal— — 
State— — 
Foreign36 56 
Total deferred36 56 
Total tax provision$36 $56 
Significant components of the Company's deferred tax assets are as follows:
Year Ended December 31,
20212020
Deferred Tax Assets:
Net operating loss carryforward$5,533 $28,425 
Capitalization of research and development expense— 938 
Credit carryforwards565 2,431 
Capital loss carryover— 646 
Stock compensation886 764 
Lease liability864 993 
Other temporary differences106 338 
Total deferred tax assets7,954 34,535 
Valuation allowance(6,961)(33,377)
Net deferred tax assets993 1,158 
Deferred Tax Liabilities:
Depreciation(185)(216)
Right-of-use asset(643)(741)
Net deferred taxes$165 $201 
Tax Rate
The items accounting for the difference between the income tax (provision) benefit computed at the federal statutory rate of 21% and the provision for income taxes were as follows:
Year Ended December 31,
20212020
Federal income tax at statutory federal rate21.0 %21.0 %
State taxes5.9 %5.1 %
Permanent differences(0.2)%0.2 %
Tax credits2.0 %1.7 %
Foreign rate differential(0.1)%(0.1)%
Impact of ownership change(267.0)%0.0 %
Non-deductible equity transactions0.0 %(2.0)%
Stock compensation(2.1)%(2.6)%
Other(0.1)%0.0 %
Change in valuation allowance240.3 %(23.9)%
Total(0.3)%(0.6)%
Tax Attributes
At December 31, 2021, the Company had U.S. net operating loss carryforwards ("NOLs") for federal and state income tax purposes of approximately $20,242 and $20,279, respectively. All of the $20,242 of federal NOLs will carry forward indefinitely. The Company's state NOL carryforwards will begin to expire on various dates through 2041. The Company also had available research and development and investment tax credits for federal and state income tax purposes of approximately $257 and $183, respectively. These federal and state credits will begin to expire on various dates through
2041. In Canada, the Company has cumulative research tax credits totaling $165 that will begin to expire on various dates through 2036.
Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which is comprised principally of NOL carryforwards. Under the applicable accounting standards, management has considered the Company's history of losses and concluded that it is more likely than not that the Company will not recognize the benefits of U.S. federal and state deferred tax assets. Accordingly, a full valuation allowance has been established against the U.S. net deferred tax assets. Alternatively, the Company has concluded that it is more likely than not that the net deferred tax assets of its wholly-owned Canadian subsidiary, MOI, totaling $165, will be recognized in the future as a result of annual taxable income generated through MOI's research services and transfer pricing agreements with its U.S. parent.
Utilization of the NOL and research and development credit ("R&D Credit") carryforwards may be subject to a substantial annual limitation under Section 382 of the U.S. Internal Revenue Code of 1986 (the "Code") due to ownership change limitations, as defined by the Code, that have occurred previously or that could occur in the future. These ownership changes may limit the amount of NOL and R&D Credit carryforwards that can be utilized annually to offset future U.S. taxable income and tax, respectively. The Company evaluated its Section 382 ownership changes through May 31, 2021 and has determined that the most recent change that occurred in November 2019 resulted in all NOL and R&D Credit carryforwards outstanding as of that date becoming fully limited. The Company has reduced its associated deferred tax assets accordingly. To the extent an ownership change occurs in the future, the NOL, R&D Credit carryforwards and other deferred tax assets recorded after the November 2019 ownership change may also be subject to limitations.
Other
The tax years 2018 through 2021 remain open to examination by major taxing jurisdictions to which the Company is subject, which are primarily in the U.S. The statute of limitations for NOLs utilized in future years will remain open beginning in the year of utilization.
The Company's policy is to record estimated interest and penalties related to uncertain tax positions as income tax expense. As of December 31, 2021 and 2020, the Company had no accrued interest or penalties recorded related to uncertain tax positions.
No additional provision has been made for U.S. income taxes related to the undistributed earnings of the wholly-owned subsidiaries of Yield10 Bioscience, Inc. or for unrecognized deferred tax liabilities for temporary differences related to investments in subsidiaries as the amounts are not significant. As such, earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or the Company has concluded that no additional tax liability will arise as a result of the distribution of such earnings.  A liability could arise if amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed.  It is not practical to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investment in subsidiaries.  Unremitted earnings at December 31, 2021 and December 31, 2020 approximated $1,032 and $999, respectively.