The components of the pretax income (loss) are presented in the following table (in thousands):

	Year Ended December 31,
	2020			2019
U.S. Domestic	$	(78,849	)	$	(57,141	)
Foreign		—			(100	)
Pretax loss from operations	$	(78,849	)	$	(57,241	)

The components of the provision (benefit) for income taxes from continuing operations are presented in the following table (in thousands):

	Year Ended December 31,
	2020			2019
Current income tax provision:
Federal	$	—		$	—
State		100			207
Foreign		35			—
Total current		135			207
Deferred income tax (benefit) provision:
Federal		(2	)		(195	)
State		12			(251	)
Total deferred		10			(446	)
Total income tax provision (benefit)	$	145		$	(239	)

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax loss from continuing operations as a result of the following differences:

	December 31,
	2020			2019
Federal statutory rate		21.00	%		21.00	%
Adjustments for tax effects of:
State taxes, net		(0.11	)%		0.12	%
Stock-based compensation		(0.93	)%		0.26	%
R&D credit expiration		-	%		(5.96	)%
Foreign taxes		(0.04	)%		-	%
Other permanent adjustments		(1.70	)%		(0.42	)%
Foreign partnership liquidation		-	%		19.19	%
Federal uncertain tax positions		-	%		3.25	%
NOL expiration		-	%		(3.01	)%
Other		(0.15	)%		1.16	%
Valuation allowance		(18.25	)%		(35.09	)%
Effective income tax rate		(0.18	)%		0.50	%

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (in thousands):

	December 31,
	2020			2019
Deferred tax assets:
Accruals and reserves	$	3,665		$	2,730
Income tax credit carryforwards		1,582			1,591
Interest		8,193			4,095
Inventory		8,117			8,625
Legal settlement		2,875			3,789
Net operating losses		70,220			53,592
Stock-based compensation		2,464			2,256
Total deferred tax assets		97,116			76,678
Valuation allowance		(87,489	)		(71,159	)
Total deferred tax assets, net of valuation allowance		9,627			5,519
Deferred tax liabilities:
Property and equipment		(7,094	)		(3,117	)
Goodwill and intangibles		(2,483	)		(2,344	)
Total deferred tax liabilities		(9,577	)		(5,461	)
Net deferred tax assets	$	50		$	58

The realization of deferred tax assets is dependent on the Company’s ability to generate sufficient taxable income in future years in the associated jurisdiction to which the deferred tax assets relate. As of December 31, 2020, a valuation allowance of $87.5 million has been established against the deferred tax assets, as the Company has determined that it is currently not likely that these assets will be realized. During the years ended December 31, 2020, the federal and state valuation allowances collectively increased by $14.4 million and $1.9 million, respectively.

In determining the need for a valuation allowance, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based on the review of all positive and negative evidence, including a three-year cumulative pre-tax loss, the Company determined that a full valuation allowance should be recorded against its deferred tax assets, with the exception of the Company’s Texas Temporary Credit for Business Loss Carryforwards. There are no indefinite life assets.

At December 31, 2020, the Company has unrecognized tax benefits of $2.5 million which will affect the effective tax rate if recognized when the Company no longer has a valuation allowance offsetting its deferred tax assets.

The following table summarizes the changes to unrecognized tax benefits (in thousands):

	Year ended December 31,
	2020		2019
Unrecognized tax benefit at the beginning of the year	$	2,452	$	4,334
Reductions as a result of lapse of applicable statute of limitations		—		(1,882	)
Unrecognized tax benefits at the end of the year	$	2,452	$	2,452

The Company and its subsidiaries are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examination by tax authorities in major jurisdictions for years prior to 2015. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and tax credits were generated

and carried forward and make adjustments up to the amount of the carryforwards. The Company is not currently under examination by the Internal Revenue Service, foreign or state and local tax authorities.

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. As of December 31, 2020, there were no accrued interest and penalties.

At December 31, 2020, the Company had federal and state net operating loss carryforwards of $273.7 million and $193.4 million, respectively, which began expiring at various dates beginning in 2021 and through 2040. Federal and some state net operating losses generated in years ending after December 31, 2017 can be carried forward indefinitely. At December 31, 2020, the Company had state research and development tax credit carryforwards of $3.2 million. The state research and development tax credits do not have an expiration date and may be carried forward indefinitely. Utilization of the net operating loss and tax credit carryforwards may become subject to annual limitations due to ownership change limitations that could occur in the future as provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), as well as similar state provisions. These ownership changes may limit the amount of the net operating loss and tax credit carryforwards that can be utilized annually to offset future taxable income, if the Company experiences a cumulative change in ownership of more than 50% within a three-year testing period. The Company completed formal study through the year ended December 31, 2018 and determined ownership changes within the meaning of IRC Section 382 had occurred. The Company adjusted federal tax attribute carry forwards and deferred tax assets accordingly. As the deferred tax assets associated with the tax attribute carry forwards were fully offset by a valuation allowance, a corresponding reduction in the Company’s valuation allowance was also recorded, resulting in no income tax impact.