Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

The provision for income taxes consisted of the following for the years ended December 31, 2020 and 2019, respectively:


Year ended December 31,	2020		2019
	(in thousands)
Current provision	$	(2)	$	(2)
Deferred expense	2		2
Provision for income taxes	$	—	$	—

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes was different from the amount computed using the federal statutory rate of 21% for the years ended December 31, 2020 and 2019, respectively, due to the following:


Year ended December 31,	2020		2019
	(in thousands)
Income tax provision at federal statutory rate (21%)	$	(28,642)	$	(76,385)
Interest on convertible securities	6,537		3,505
Interest on convertible securities discount	4,423		3,257
Debt issuance cost related to convertible securities	—		76
Derivative liability related to convertible securities	(19,688)		29,098
Warrant expense	16,823		596
Meals and entertainment	13		210
Health insurance industry fee	2,715		—
Other, net	(766)		—
Valuation allowance	18,585		39,643
Provision for income taxes	$	—	$	—

Schedule of Deferred Tax Assets and Liabilities

Principal components of net deferred tax balances at December 31, 2020 and 2019, respectively, were as follows:


Year ended December 31,	2020		2019
	(in thousands)
Deferred income tax assets:
Net operating loss carryforward (NOL)	$	152,423	$	133,564
Unpaid claim reserve discounting	335		269
Start-up costs amortization	408		464
Charitable contributions carryforward	154		146
Bonus accrual	52		52
Stock based compensation	2,568		1,554
Convertible securities issuance costs	1		1
Tax credits (AMT)	—		2
Prepaid and accrued expenses	568		683
Property and equipment	1,318		1,779
Capital loss carryforward	—		49
Operating lease liability	2,340		3,109
Premium deficiency reserve	—		3,597
Acquisition costs amortization	60		66
Interest expense carryforward	2,318		1,675
Bad debt reserves	2,363		—
Total deferred income tax assets	164,908		147,010
Less: valuation allowance	(163,204)		(144,619)
Total deferred income tax assets, net of valuation allowance	1,704		2,391
Deferred income tax liabilities:
TCJA Transition Adj. IRC 846	(49)		(58)
Market discount	—		(1)
Operating lease right of use asset	(1,655)		(2,330)
Total deferred income tax liabilities	(1,704)		(2,389)
Net deferred income tax asset	$	—	$	2