Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Income Taxes

14. Income Taxes

The components of the net deferred tax assets are as follows at December 31:

	2021			2020
	(in thousands)
Operating loss carryforwards	$	54,949		$	46,203
Tax credit carryforwards		3,720			910
Other temporary differences		1,652			5,438
		60,321			52,551
Less valuation allowance		(60,321	)		(52,551	)
Net deferred tax asset	$	—		$	—

The primary factors affecting the Company’s income tax rates were as follows:

	2021			2020
Tax benefit at U.S. statutory rates		(21	%)		(21	%)
State tax benefit		(4.7	%)		(4.7	%)
Permanent differences		0.5	%		0.8	%
Other		(0.1	%)		(2.2	%)
Changes in valuation allowance		25.3	%		27.1	%
		0	%		0	%

As of December 31, 2021, the Company has federal and state net operating loss carryforwards totaling $72,855,000 and $79,191,000, respectively, which will never expire as a result of the 2017 Tax Act. As of December 31, 2021, the Company has federal and state net operating loss carryforwards totaling $134,273,000 and $102,003,000 respectively, which expire through 2037. In addition, the Company has federal and state research and development credits of $2,437,000 and $1,282,000, respectively, which expire through 2035. Ownership changes, as defined by Section 382 of the Internal Revenue Code, may have limited the amount of net operating loss carryforwards that can be utilized annually to offset future taxable income. Past and subsequent ownership changes could further affect the limitation in future years. Because of the Company’s limited operating history and its recorded losses, management has provided, in each of the last two years, a 100% valuation allowance against the Company’s net deferred tax assets.

The Company is subject to taxation in the U.S. and various states. Based on the history of net operating losses all jurisdictions and tax years are open for examination until the operating losses are utilized or the statute of limitations expires. As of December 31, 2021 and 2020, the Company does not have any significant uncertain tax positions.