Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The components of the Company’s loss before (benefit from) or provision for income taxes are as follows:

	Years Ended December 31,
	2021			2020
United States of America	$	(16,192	)	$	(6,553	)
International		3,114			(8,209	)
Loss before (benefit from) provision for income taxes	$	(13,078	)	$	(14,762	)

The components of the (benefit from) or provision for income taxes were as follows:

	Years Ended December 31,
	2021			2020
Current income tax provision:
State	$	39		$	(4	)
Foreign		(179	)		(720	)
Total current income tax provision		(140	)		(724	)
Deferred income tax benefit:
Foreign		6			13
Total deferred income tax benefit		6			13
Benefit from income taxes	$	(134	)	$	(711	)

The differences in the total (benefit from) or provision for income taxes that would result from applying the 21% federal statutory rate in 2021 and 2020 to the loss before provision for income taxes and the reported provision for income taxes were as follows:

	Years Ended December 31,
	2021			2020
Tax benefit at U.S. statutory rate	$	(2,746	)	$	(3,100	)
Change in valuation allowance		4,547			1,152
Stock-based compensation		46			686
Uncertain tax positions		(194	)		663
State income taxes, net of federal benefit		(1,223	)		(495	)
Foreign income and withholding taxes		(560	)		458
Other permanent differences		52			(196	)
Provision to return adjustments		(56	)		121
Benefit from income taxes	$	(134	)	$	(711	)

Major components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows:

	December 31,
	2021			2020
Non-current deferred tax assets:
Net operating loss	$	32,403		$	28,264
Research and development credits		9,820			9,820
Other credits		4,164			4,164
Operating lease liabilities		566			2,045
Stock-based compensation		476			400
Property and equipment and intangible assets		653			429
Accruals and reserves		387			209
Gross non-current deferred tax assets		48,469			45,331
Right-of-use assets, operating leases		(471	)		(1,826	)
Total non-current deferred tax liabilities		(471	)		(1,826	)
Total deferred tax assets		47,998			43,505
Valuation allowance		(47,915	)		(43,368	)
Net deferred tax assets (liabilities)	$	83		$	137

The Tax Reform Act of 1986, as amended, imposes restrictions on the utilization of net operating losses and tax credit carryforwards in certain situations where changes occur in the stock ownership of a corporation. Utilization of a domestic net operation loss or tax credit carryforward may be subject to a substantial limitation due to ownership changes that may have occurred or that could occur in the future, as required by Internal Revenue Code Section 382 ("IRC Section 382"), as well as similar state provisions. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under IRC Section 382. Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. The Company last assessed the application of IRC Section 382 during the fourth quarter of 2017 and concluded that no such limitation currently applies. These conclusions are monitored in future periods as circumstances dictate, such as significant changes in the Company's stock ownership. In the event the Company experiences any subsequent changes in ownership, the amount of net operating losses and research and development credit carryovers available in any taxable year could be limited and may expire unutilized.

As of December 31, 2021, the Company had federal and state net operating loss carryforwards of approximately $132,670 and $116,387, respectively. The federal net operating loss carryforward will begin expiring in 2027 and the state net operating loss carryforward will begin expiring in 2022. As of December 31, 2021, the Company had federal and state research and development credits of approximately $6,123 and $6,451, respectively. The federal research and development credits will begin expiring in 2026. The state research and development credits are not currently subject to expiration.
 

The Company has recorded a full valuation allowance against its otherwise recognizable deferred income tax assets as of December 31, 2021 and 2020 (except for the deferred income tax assets associated with certain of the Company’s foreign subsidiaries). The Company has determined, after evaluating all positive and negative historical and prospective evidence, that it is more likely than not that the deferred income tax assets will not be realized (except for those associated with certain of the Company's foreign subsidiaries). The valuation allowance increased by $4,547 and $1,152 for the years ended December 31, 2021, and December 31, 2020, respectively.

The Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deduction, the nexus of income among various tax jurisdictions and compliance with state, local and foreign tax laws. The Company is not currently under any examination by any federal, state or foreign tax authorities. Because of net operating loss and credit carryforwards, all of the Company’s tax years dating to inception in 2006 remain open to examination.

Uncertain Tax Positions

As of December 31, 2021 and 2020, the Company had uncertain tax positions of $1,079 and $1,372, respectively, that if recognized would impact the annual effective tax rate. During 2021 and 2020, the Company did not have any material interest or penalties related to uncertain tax positions. The aggregate changes in the balance of gross uncertain tax positions were as follows:

Ending balance as of December 31, 2019	$	8,618
Increase in balances related to tax positions taken during the current period		1,193
Increase in balances related to tax positions taken during the prior period		43
Decrease in balances related to lapses in statutes of limitations		(507	)
Ending balance as of December 31, 2020		9,347
Decrease in balances related to lapses in statutes of limitations		(292	)
Ending balance as of December 31, 2021	$	9,055

The Company does not anticipate that the amount of uncertain tax positions relating to tax positions existing at December 31, 2021 will materially increase or decrease within the next twelve months.