Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

16. INCOME TAXES

Details of the provision for income taxes consist of the following:

	Year Ended December 31,
	2021		2020		2019
Federal	$	6,487	$	(6,416)	$	(32,508)
State		2,852		4,198		(9,641)
Valuation allowance		(6,508)		2,218		42,149
	$	2,831	$	—	$	—
Current	$	2,831	$	—	$	—
Deferred		6,508		(2,218)		(42,149)
Valuation allowance		(6,508)		2,218		42,149
Total	$	2,831	$	—	$	—

The reasons for the difference between the statutory federal income tax rate and the Company’s effective income tax rate as of December 31, 2021, 2020 and 2019 are as follows:

	Year Ended December 31,
	2021		2020		2019
Federal income tax rate	21.0	%	21.0	%	21.0	%
Stock-based compensation	(2.3)		—		—
State taxes	6.4		(11.4)		6.3
Other	(0.2)		(3.6)		0.4
Valuation allowance	(17.3)		(6.0)		(27.7)
Total	7.6	%	—	%	—	%

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020, are as follows:

	As of December 31,
	2021				2020
	Assets		Liabilities		Assets		Liabilities
Acquired in-process research and development	$	42,460	$	—	$	45,346	$	—
Net operating loss carryforward		29,739		—		44,983		—
Accrued compensation		6,285		—		4,075		—
Credits		168		—		1,604		—
Disallowed interest		7,635		—		7,751		—
Lease obligations, net		123		—		121		—
Fixed assets		124		—		65		—
Inventory		6,294		—		100		—
Accrued rebates		4,564		—		—		—
Other		70		1,096		71		1,242
Total	$	97,462		1,096	$	104,116		1,242
Net deferred tax asset	$	96,366	$	—	$	102,874	$	—
Valuation allowance	$	(96,366)	$	—	$	(102,874)	$	—
Total	$	—	$	—	$	—	$	—

The Company has considered available positive and negative evidence to estimate if sufficient future taxable income will be generated to allow utilization of the existing deferred tax assets. Prior to the year ended December 31, 2021, the Company had incurred operating losses and negative cash flows from operations. In light of these considerations, as well as the uncertainty as to when the Company might generate taxable income, the Company has recorded a full valuation allowance of $96,366, which represents an decrease of $6,508 in the Company’s valuation allowance from December 31, 2020 to December 31, 2021. The amount of the net deferred tax asset considered realizable could be adjusted in the future if estimates of taxable income change or if objective negative evidence in no longer present and additional weight may be given to subjective evidence. Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2021, 2020 and 2019 were as follows:

	Year Ended December 31,
	2021		2020		2019
Valuation allowance at the beginning of the year	$	(102,874)	$	(100,656)	$	(58,507)
Decreases recorded as a benefit to income tax provision		6,508		—		—
Increases recorded to income tax provision		—		(2,218)		(42,149)
Valuation allowance at the end of the year	$	(96,366)	$	(102,874)	$	(100,656)

As of December 31, 2021 and 2020, the Company has approximately $98,069 and $159,395, respectively, of federal net operating loss ("NOL") carryforward available to offset future federal taxable income. The Company also has approximately $120,074 and $157,743 of state NOL carryforwards as of December 31, 2021 and 2020, respectively, available to offset future state taxable income. All of the Company’s tax years remain open to examination by federal and state taxing authorities. The Company’s pre-2018 federal NOLs expire in 2037 whereas the Company’s NOLs arising in 2018, and subsequent years, have an unlimited carryforward period. The Company’s state NOLs begin to expire in 2037. Utilization of the net operating loss carryforwards may be subject to a substantial limitation due to ownership change limitations that may occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state provisions. These ownership changes may limit the amount of net operating loss and tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups.

As of December 31, 2021 and 2020, the Company has federal tax credits of $168 and $1,603, respectively. These credits begin to expire in 2037.