INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of components of Income (Loss) before provision for income taxes

For financial reporting purposes, loss before provision for income taxes, includes the following components (in thousands):

	Years Ended December 31,
	2021		2020
Domestic	$	(252,343)	$	(34,285)
Foreign		(17,659)		(670)
Loss before income taxes	$	(270,002)	$	(34,955)

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following (in thousands):

	Years Ended December 31,
	2021		2020
Current:
Federal	$	(33)		—
State		20		—
Total Current		(13)		—
Deferred:
Federal		(23,378)		(670)
State		(5,494)		(270)
Foreign		(783)		—
Total Deferred		(29,655)		(940)
Benefit for income taxes	$	(29,668)	$	(940)

Schedule of Reconciliation of the expected income tax (benefit) computed using the federal statutory income tax rate

	Years Ended December 31,
	2021			2020
Effective income tax rate:
Expected income tax benefit at the federal statutory rate		21	%		21	%
State taxes		(2)	%		6	%
Change in valuation allowance		(4)	%		(68)	%
Research and development credit carryover		(1)	%		2	%
Stock-based compensation expense		3	%		—	%
Warrant Expense		(5)	%		—	%
Permanent differences		—	%		42	%
Other		(1)	%		—	%
Effective income tax rate		11	%		3	%

Schedule of deferred net tax assets and liabilities

As of December 31, 2021, and 2020, deferred tax assets and liabilities consist of the following (in thousands):

	Years Ended December 31,
	2021		2020
Deferred tax assets:
Federal and state net operating carryforwards	$	148,946	$	77,463
Research and development and other credits		10,977		13,555
Start-up costs		12,904		15,717
Stock-based compensation		4,242		2,257
Reserves and accruals		1,452		15
Deferred lease liability		4,856		872
Depreciation		3		1,503
Divisional foreign entity deferred		2,137		—
Other deferred tax assets		6,457		2,257
Total gross deferred tax asset		191,974		113,639
Valuation allowance		(127,150)		(111,494)
Net deferred tax asset		64,824		2,145
Deferred tax liabilities:
Right‑of‑use asset		(4,692)		(522)
Intangible assets		(68,504)		(1,623)
Depreciation		(1,527)		—
Other		(796)		—
Total deferred tax liabilities		(75,519)		(2,145)
Net deferred tax liability	$	(10,695)	$	—

Schedule of changes in the valuation allowance for deferred tax assets

Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2021 and 2020 were as follows (in thousands):

	Years Ended December 31,
	2021		2020
Valuation allowance at beginning of the year	$	111,494	$	87,370
Increases recorded to income tax provision		45,139		25,058
Decreases recorded as a benefit to income tax provision		(29,483)		(934)
Valuation allowance at end of year	$	127,150	$	111,494

Schedule of reconciliation unrecognized tax liabilities

A reconciliation of the beginning and ending amount of unrecognized tax liabilities as of December 31, 2021 and 2020 is as follows (in thousands):

	Years Ended December 31,
	2021		2020
Unrecognized tax liability, beginning of year	$	—	$	—
Unrecognized tax liability acquired through purchase accounting		1,005		—
Gross decreases - foreign exchange translation adjustments		(8)		—
Unrecognized tax liability, end of year	$	997	$	—