Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Income (loss) before income taxes is summarized as follows (in thousands):

	Year Ended December 31, 2021			For the period January 21, 2020 (Inception) – December 31, 2020
US	$	12,095		$	(13,863	)
Non-US		(31,380	)		(513	)
Total	$	(19,285	)	$	(14,376	)

Schedule of Reconciliation of Statutory Tax Rate and Effective Tax Rate

A reconciliation of the Company’s effective income tax rate is as follows:

	Year Ended December 31, 2021			For the period January 21, 2020 (Inception) – December 31, 2020
Federal tax at a statutory rate		21.0	%		21.0	%
Earnings taxed at other than Federal statutory rate		6.8			0.3
Non-deductible interest expense		(5.7	)		0.0
Section 162(m)		(25.8	)		0.0
Change in fair value of earnout liability		96.7			0.0
Tax basis in acquired IP		0.3			0.0
Other		4.6			0.0
Change in valuation allowance		(97.9	)		(21.3	)
Income tax provision		0.0	%		0.0	%

Schedule of Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities are summarized as follows (in thousands):

	December 31, 2021			December 31, 2020
Deferred income tax assets:
Net operating loss carryforwards	$	18,672		$	931
Stock-based compensation		486			2,097
Lease liabilities		2,565			378
Tax basis in acquired IP		2,031			—
Other accruals		920			—
Deferred income tax assets - total		24,674			3,406
Deferred income tax liabilities:
Property and equipment		(289	)		(4	)
Right of use assets		(2,471	)		(348	)
Deferred income tax liabilities - total		(2,760	)		(352	)
Deferred income tax assets, net		21,914			3,054
Less: Valuation allowance		21,914			3,054
Deferred income taxes, net	$	—		$	—

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes as well as carryforward tax losses. At December 31, 2021, the Company had U.S. federal and foreign net operating loss carryforwards (“NOLs”) of $53.0 million and $30.0 million, respectively, to be used to offset future taxable income. The entire $53.0 million of U.S federal losses and $14.0 million of foreign losses can be carried forward indefinitely; the remaining $16.0 million of foreign losses expire on various dates through 2026.

Summary of Valuation Allowances

The following table summarizes the activity related to the Company’s valuation allowances (in thousands):

	December 31, 2021		December 31, 2020
Valuation Allowances - beginning of period	$	3,054	$	—
Local currency increase in reserve		18,860		3,054
Valuation Allowances - end of period	$	21,914	$	3,054