Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

(7) Income Taxes

Income tax expense is comprised of the following:

	Year ended December 31,
	2021		2020		2019
Current:
Federal	$	—	$	—	$	583
State		67		178		(95	)
Foreign		344		167		(779	)
Current income tax expense (benefit)		411		345		(291	)
Deferred:
Federal		—		—		—
State		—		—		—
Deferred income tax expense (benefit)		—		—		—
	$	411	$	345	$	(291	)

Components of loss before income taxes by tax jurisdiction were as follows:

	Year ended December 31,
	2021			2020			2019
United States	$	(101,341	)	$	(24,567	)	$	(25,385	)
Foreign		1,359			449			523
Loss before income taxes	$	(99,982	)	$	(24,118	)	$	(24,862	)

Reconciliation of income tax expense at the applicable statutory income tax rates to the effective income tax rate is as follows:

	Year ended December 31,
	2021			2020			2019
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefits		4.9			14.2			4.2
Withholding tax		—			—			(2.3	)
Section 162(m) limitation		(5.2	)		(12.8	)		—
Stock compensation		12.4			68.5			0.2
Return-to-provision adjustments		(1.7	)		(1.3	)		3.2
Research and development credit		6.3			6.2			5.2
Tax contingencies, net of reversals		(0.7	)		(0.6	)		(0.5	)
Change in valuation allowance		(37.2	)		(95.0	)		(31.3	)
Other		(0.2	)		(1.6	)		(0.6	)
Effective income tax rate		(0.4	)%		(1.4	)%		(0.9	)%

The income tax expense for the years ended December 31, 2021 and December 31, 2020 primarily related to state taxes and taxes in foreign jurisdictions. Income tax benefit for the year ended December 31, 2019 primarily related to alternative minimum tax credits previously utilized that are refundable under the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”).

The total change in valuation allowance for the year ended December 31, 2021 was $37,149, which primarily was due to the generation of net operating losses.

Tax effects of temporary differences that give rise to significant portions of deferred income tax assets and deferred income tax liabilities were as follows:

	As of December 31,
	2021			2020			2019
Deferred income tax assets:
Net operating loss carryforwards	$	67,985		$	51,498		$	26,119
Accrued expenses		10,309			7,918			6,164
Deferred Revenue		10,632			394			500
Lease Liabilities		18,773			2,165			433
Credits		14,559			8,752			7,468
Gross deferred tax assets		122,258			70,727			40,684
Less valuation allowance		(95,304	)		(58,155	)		(35,251	)
Net deferred tax assets		26,954			12,572			5,433
Deferred income tax liabilities:
Unrealized gain on equity investments		(8,545	)		(10,185	)		(1,984	)
Prepaid expenses		(969	)		(889	)		(441	)
Depreciation and amortization		(17,440	)		(1,498	)		(3,008	)
Net deferred income tax assets	$	—		$	—		$	—

As of December 31, 2021, the Company had federal and state net operating loss (“NOL”) carryforwards of $283,314 and $148,130, respectively. These carryforwards, with the exception of federal NOLs generated post 2017, will expire between 2022 and 2041 if not used by the Company to reduce income taxes payable in future periods. Utilization of post 2017 federal NOL carryforwards are limited to 80% of taxable income generated in a given year and carry forward indefinitely. As of December 31, 2021, the Company had federal and state research and development tax credit carryforwards of $15,459 and $977, respectively. These carryforwards will expire between 2022 and 2041 if not used by the Company to reduce income taxes payable in future periods.

Pursuant to Internal Revenue Code Sections 382 and 383, the utilization of NOLs and other tax attributes may be substantially limited due to cumulative changes in ownership greater than 50% that may have occurred or could occur during applicable testing periods. The Company has performed an analysis through March 31, 2021 and

determined that such an ownership change has occurred. There was no material impact to the financial statements due to this ownership change.

The Company has not recognized a deferred tax liability for the undistributed earnings of its foreign operations as the Company considers these earnings to be indefinitely reinvested.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the 2017 Tax Act. With the enactment of the CARES Act, the Company has not recognized a quantitative or qualitative impact for the years ended December 31, 2021, 2020, and 2019.

The Company classifies interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statement of operations. Following is a reconciliation of total gross unrecognized tax benefits:

	Year ended December 31,
	2021			2020			2019
Balance, January 1	$	1,046		$	902		$	781
Additions for tax positions taken in prior years		282			25			24
Reductions for tax positions taken in prior years		(20	)		(16	)		(12	)
Additions for tax positions related to the current year		394			135			109
Balance, December 31	$	1,702		$	1,046		$	902

The Company does not anticipate any significant increases or decreases in its uncertain tax positions within the next 12 months.

The Company and its subsidiaries file U.S. federal income tax returns and various state, local and foreign income tax returns. As of December 31, 2021, the Company’s statutes of limitations are open for all federal and state years tax returns filed after the years ended December 31, 2016 and 2015, respectively. Net operating loss and credit carryforwards for all years are subject to examination and adjustments for the three years following the year in which the carryforwards are utilized. The Company is not currently under Internal Revenue Service or state examination.