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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) before income taxes consisted entirely of income (loss) from domestic operations of $6.0 million, $133.7 million and $(109.1) million for the calendar year ended December 31, 2020, 2021 and 2022, respectively. Income tax (benefit) expense included in the statements of operations and comprehensive income (loss) consisted of the following:

Year Ended December 31,
202020212022
Current:
Federal$— $— $— 
State371 229 174 
Total current tax expense371 229 174 
Deferred:
Federal— (1,435)41 
State— (506)(624)
Total deferred tax expense— (1,941)(583)
Total (benefit) provision for income taxes$371 $(1,712)$(409)

Income tax expense differed from the amount computed by applying the Federal statutory income tax rate of 21% to net income (loss) before income taxes for the year ended December 31, 2022 as a result of the following:
Year Ended December 31,
202020212022
Federal tax at statutory rate$1,271 $28,084 $(22,906)
State income taxes, net of federal tax benefit369 (248)(448)
Fair value adjustment on warrants2,371 — — 
Stock-based compensation(1,476)(236,726)(4,490)
Research and development credit(1,231)(19,103)(6,333)
PPP loan forgiveness (CARES Act)(1,110)1,110 — 
Change in valuation allowance273 222,230 26,263 
Tax return to tax provision adjustment(216)(34)309 
Section 162(m) limitation— 2,653 6,494 
Noncontrolling interests85 — — 
Other35 322 702 
(Benefit) provision for income taxes$371 $(1,712)$(409)

The tax effects of temporary differences that gave rise to significant portions of the Company’s deferred tax assets and liabilities related to the following:
December 31,
20212022
Deferred tax assets:
Net operating loss carryforwards$297,851 $304,879 
Operating lease liabilities29,870 29,052 
Research and development credits29,046 38,796 
Capitalized research and experimental expenditures— 28,732 
Convertible debt transactions15,184 10,734 
Stock-based compensation9,895 13,714 
Accruals and reserves6,908 2,948 
Investment in partnerships1,020 801 
Amortization111 90 
Other573 631 
Total deferred tax assets390,458 430,377 
Less: valuation allowance(351,542)(387,976)
Deferred tax assets – net of valuation allowance38,916 42,401 
Deferred tax liabilities:
Right of use asset28,606 24,887 
Servicing rights2,859 9,368 
Intangible assets5,911 4,502 
Depreciation2,123 3,644 
Total deferred tax liabilities39,499 42,401 
Net deferred tax liabilities$(583)$— 
Management believes that, based on available evidence, both positive and negative, it is more likely than not that the deferred tax assets will not be utilized, and as such the Company maintains a full valuation allowance at December 31, 2022. The valuation allowance increased by $36.4 million for the year ended December 31, 2022 primarily as a result of current year activities.

As of December 31, 2022, the Company had approximately $1,012.0 million and $1,400.6 million of federal and state (post-apportioned) net operating losses (NOL), that will begin to expire in 2035 and 2034, respectively. The Company also has Federal and California research and development tax credits of $40.1 million and $19.1 million, respectively. The Federal research credits will begin to expire in 2032 and the California research credits have no expiration date. The Internal Revenue Code (“IRC”) limits the amount of NOL carryforwards that a company may use in a given year in the event of certain cumulative changes in ownership over a three-year period as described in Section 382 of the IRC. Utilization of NOL carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. The Company performed an ownership analysis and identified ownership changes in prior years, as defined under IRC Section 382 and 383, however neither resulted in a material limitation that will reduce the total amount of NOL carryforwards and credits that can be utilized.

A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows:
Year Ended December 31,
202020212022
Balance at beginning of year$1,031 $1,820 $13,904 
Additions for tax positions of prior years— 461 885 
Tax positions related to the current year789 11,623 3,685 
Balance at end of year$1,820 $13,904 $18,474 

If recognized, all of the unrecognized tax benefits would not impact the effective tax rate due to the valuation allowance against certain deferred tax assets. As of December 31, 2022, the Company had $18.5 million unrecognized income tax benefits and there was an increase of $4.6 million to the Company’s unrecognized tax benefits during the year. The Company does not anticipate any significant increases or decreases to unrecognized tax benefits during the next twelve months. The Company’s policy is to classify interest and penalties associated with unrecognized tax benefits as income tax expense. The Company had no interest or penalty accruals associated with uncertain tax benefits in its consolidated balance sheet and consolidated statement of operations and comprehensive income (loss) for the tax year ended December 31, 2022.

The Company files income tax returns in the U.S. Federal jurisdiction and various state and local jurisdictions. The Company is not currently under examination by income tax authorities in federal, state, or local jurisdictions. However, because the Company has net operating losses and credits carried forward in several jurisdictions, certain items attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment to tax attributes carried forward to open years. All tax returns will remain open for examination by the federal and most state taxing authorities for three years and four years, respectively, from the date of utilization of any net operating loss carryforwards or research and development credits.