Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 10. Income Taxes

The Company’s income tax provision was $0.1 million for the three months ended March 31, 2023, representing an effective tax rate of (0.1)%. There was no tax provision for the three months ended March 31, 2022. The increase in the income tax provision for the three months ended March 31, 2023, as compared to the same period in 2022 was primarily due to recognizing deferred income in 2023 from the $150.0 million Sanofi upfront payment received in 2022 (See Note 7 – Sanofi Agreement).

The Company continuously evaluates the need for a valuation allowance based on all available evidence, both positive and negative. As of March 31, 2023, the Company continues to maintain a full valuation allowance on all of its deferred tax assets. The Company's effective tax rate for the three months ended March 31, 2023 differed from the federal statutory income tax rate primarily due to the full valuation allowance recorded on its net federal and state deferred tax assets and non-deductible stock-based compensation.

The Company files U.S. federal and state tax returns. The Company is not currently under any examinations in any jurisdictions where it files a tax return.