Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Summary of Components of Loss Before Income Tax Provision (Benefit)

The components of loss before income tax provision (benefit) for the years ended December 31, 2023 and 2022 consisted of the following (in thousands):

	Year Ended December 31,
	2023			2022
U.S.		(7,659	)		(60,403	)
Foreign		(5,096	)		(2,025	)
	$	(12,755	)	$	(62,428	)

Summary of Reconciliation of Expected Statutory Federal Income Tax Provision to Actual Income Tax Provision

The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision for the years ended December 31, 2023 and 2022 (in thousands):

	Year Ended December 31,
	2023			2022
Income taxes at statutory rates	$	(2,679	)	$	(13,110	)
State income tax, net of federal benefit		1,802			(1,681	)
Stock-based compensation		(728	)		533
Officers compensation		1,379			-
Permanent items		55			95
Research and orphan drug credits		(619	)		(1,493	)
Foreign rate differential		448			243
Acquired in-process research and development		-			4,840
Change in valuation allowance		922			10,573
	$	580		$	-

Significant Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2023 and 2022 are as follows (in thousands):

	December 31,
	2023			2022
Deferred tax assets:
Net operating loss carryforward	$	19,562		$	28,222
Credits		8,314			9,289
Capitalized research expenditures		4,235			7,086
Deferred revenue		12,748			-
Equity compensation		1,801			1,829
Other		781			1,196
Total deferred tax assets		47,441			47,622
Valuation allowance		(47,213	)		(46,317	)
Total deferred tax assets, net of allowance	$	228		$	1,305
Deferred tax liabilities:
Operating lease right-of-use asset		(167	)		(284	)
Deferred revenue		-			(945	)
Other		(61	)		(76	)
Total deferred tax liabilities	$	(228	)	$	(1,305	)

Summary of Reconciliation of Unrecognized Tax Benefits

The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2023 and 2022 (in thousands):

	Year Ended December 31,
	2023		2022
Unrecognized tax benefits – beginning	$	5,879	$	5,487
Gross increases – tax positions in prior period		83		-
Gross decreases – tax positions in prior period		-		-
Gross increase – current-period tax positions		113		392
Gross decrease – current-period tax positions		-		-
Settlements		-		-
Lapse of statute of limitations		-		-
Unrecognized tax benefits – ending	$	6,075	$	5,879