Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:

	Year Ended December 31,
	2021			2020
Federal statutory income tax rate		(21.0	)%		(21.0	)%
State taxes, net of federal benefit		(2.9	)		(1.7	)
Federal and state research and development tax credits		(4.0	)		(3.4	)
Nondeductible stock compensation		1.4			0.5
IPR&D expense		-			12.3
IRC Section 382 limit on attributes		(0.1	)		26.4
Other items		0.5			1.2
Increase in deferred tax asset valuation allowance		26.1			(14.3	)
Effective income tax rate		0.0	%		0.0	%

Schedule of Deferred Tax Assets

Net deferred tax assets as of December 31, 2021 and 2020 consisted of the following (in thousands):

	December 31,
	2021			2020
Deferred tax assets (liabilities):
Net operating loss carryforwards	$	30,147		$	13,618
Research and development and investment tax credits		3,719			856
Accrued expenses		734			374
Capitalized start-up costs		63			76
Capitalized research and development expense		8,529			10,317
Operating lease right-of-use assets		(703	)		(1,260	)
Operating lease liabilities		800			1,421
Contingent consideration		862			928
Stock compensation		2,257			1,149
Other		279			320
Total deferred tax assets		46,687			27,799
Valuation allowance		(46,687	)		(27,799	)
Net deferred tax assets	$	—		$	—

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets during the year ended December 31, 2021 related primarily to the operating losses occurring during the year. Changes in the valuation allowance for deferred tax assets during the year ended December 31, 2020 related primarily to the decrease in net operating loss carryforwards and research and development tax credit carryforwards as a result of the limitation under Section 382 and were as follows (in thousands):

	Year Ended December 31,
	2021		2020
Valuation allowance as of beginning of year	$	27,799	$	38,487
Decreases recorded as benefit to income tax provision		—		(10,688	)
Increases recorded to income tax provision		18,888		—
Valuation allowance as of end of year	$	46,687	$	27,799