INCOME TAXES

12 Months Ended

Dec. 31, 2022

INCOME TAXES

INCOME TAXES

NOTE 9 — INCOME TAXES

The reconciliation of the statutory federal income tax with the provision for income taxes is as follows at December 31:

(in thousands except for rate)

	2022		Rate		2021		Rate		2020		Rate
Federal tax benefit as statutory rates	$	(59,305)	(21.0)	%	$	(86,177)	(21.0)	%	$	(26,050)	(21.0)	%
Stock based compensation		731	0.2			(1,004)	(0.2)			192	0.2
Other permanent differences		77	—			60	—			32	—
Research and development credit		—	—			(68)	—			—	—
Other		(1,947)	(0.7)			—	—			—	—
State & local taxes		(672)	(0.1)			(3,234)	(0.8)			—	—
Change in valuation allowance		61,115	21.64			90,423	22.0			25,826	20.8
Total tax benefit	$	—	—	%	$	—	—	%	$	—	—	%

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. A valuation allowance is provided against deferred tax assets when, based on all available evidence, it is considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. The Company cannot be certain that future taxable income will be sufficient to realize its deferred tax assets, and accordingly, a full valuation allowance has been provided on its deferred tax assets.

Components of the Company's deferred tax assets are as follows at December 31:

	2022		2021
Deferred tax assets:
Share based compensation	$	2,831	$	2,288
Intangible and other assets		745		1,984
Fixed Assets		19,193		—

Capitalized research and development		13,292	—	136
Accruals		7,514		—
Net operating losses		135,948		113,999
Total deferred tax assets		179,523		118,407
Valuation allowance		(179,523)		(118,407)
Total deferred tax assets, net of valuation allowance	$	—	$	—

At December 31, 2022 the Company had $629.6 million and $372.2 million of federal and local net operating losses, respectively. The federal net operating losses carry forward indefinitely and the local net operating losses have a five-year life. No federal income taxes were paid during 2022 or 2021.