Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of components of the income tax provision

The components of the Company’s income tax provision (benefit) are as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	(119)	$	—	$	—
State	262		88		15
Total current provision	143		88		15
Deferred:
Federal	43		(60)		(1,118)
State	20		(34)		(218)
Total deferred provision (benefit)	63		(94)		(1,336)
Total income tax provision (benefit)	$	206	$	(6)	$	(1,321)

Schedule of overall effective income tax rate

The overall effective income tax rate differs from the statutory federal rate as follows:

	Year Ended December 31,
	2021		2020		2019
Income tax benefit based on the federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	4.4		35.7		(2.1)
Nondeductible expenses	3.2		(3.2)		(3.1)
Change in valuation allowance	2.4		(49.9)		(3.1)
Stock-based compensation	(8.6)		(23.2)		(10.5)
Research and development tax credits	(20.1)		25.1		—
Uncertain tax positions	(2.8)		—		—
Goodwill impairment	—		(5.5)		—
Overall effective income tax rate	(0.5)	%	—	%	2.2	%

Schedule of components of deferred tax assets (liabilities)

The components of deferred tax assets (liabilities) are as follows (in thousands):

	December 31,
	2021		2020
Deferred income tax assets:
Net operating loss carryforwards	$	77,634	$	70,828
Stock-based compensation	6,550		9,406
Accrued expenses	914		1,861
Research and development tax credits	6,405		13,421
Operating leases liabilities	7,662		9,026
Intangible assets and goodwill	1,205		1,405
Other	1,176		3
Gross deferred tax assets	101,546		105,950
Valuation allowance	(94,117)		(95,042)
Net deferred tax assets	7,429		10,908
Deferred tax liabilities:
Property, equipment and software	(1,363)		(1,934)
Capitalized commissions	(427)		(578)
§481(a) Adjustment - ASC 606	—		(186)
Operating lease assets	(5,742)		(7,097)
Contingent consideration from divestiture	—		(1,153)
Gross deferred tax liabilities	(7,532)		(10,948)
Total net deferred tax liabilities	$	(103)	$	(40)

Schedule of change in the valuation allowance

The change in the valuation allowance for the years ended December 31, 2021, 2020, and 2019 is as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Valuation allowance, at beginning of year	$	95,042	$	111,193	$	109,625
Decrease in valuation allowance - operating lease impact	—		—		(915)
Valuation allowance, at beginning of year, as adjusted	$	95,042	$	111,193	$	108,710
Increase in valuation allowance	—		—		2,483
Decrease in valuation allowance	(925)		(16,151)		—
Valuation allowance, at end of year	$	94,117	$	95,042	$	111,193

Schedule of reconciliation of the total amounts of unrecognized tax benefits

The following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2021		2020		2019
Unrecognized tax benefit, beginning of year	$	7,640	$	(3)	$	(3)
Increase (decrease) based on tax positions in prior period	(3,504)		1,447		—
Increase based on tax positions in current period	1,101		6,196		—
Unrecognized tax benefit, end of year	$	5,237	$	7,640	$	(3)