Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

15. Income taxes

The Company did not provide for any income taxes in its condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022. While the Company has net income for the three months ended June 30, 2023, the Company is projecting book and tax losses for the twelve months ended December 31, 2023, for which it is more likely than not that the Company will not realize a benefit as the Company has recorded a full valuation allowance against its deferred tax assets. Therefore, the Company has not recorded any income taxes for the three and six months ended June 30, 2023.

The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its early stage of commercialization of VOWST and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Accordingly, a full valuation allowance has been established against the deferred tax assets as of June 30, 2023 and December 31, 2022. Management reevaluates the positive and negative evidence at each reporting period.