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Income Tax (Tables)
 3 Months Ended
Mar. 31, 2021
Investments, Owned, Federal Income Tax Note [Line Items]  
Net deferred tax assets
The tax effects of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets were as follows:
As of December 31,
20202019
Deferred tax assets:
Net operating loss carryforwards$44,583 $17,599 
Stock-based compensation7,538 376 
Accrued compensation2,337 1,331 
Research and development credits4,667 2,190 
Deferred rent493 52 
Unearned revenue186 — 
Deferred employer taxes1,050 — 
Interest expense479 10 
Other23 18 
Gross deferred tax assets61,356 21,576 
Valuation allowance(58,264)(20,082)
Total deferred tax assets3,092 1,494 
Deferred tax liabilities:
Property and equipment(685)(344)
Capitalized software(2,407)(1,150)
Total deferred tax liabilities(3,092)(1,494)
Net deferred tax assets$— $— 
Reconciliation of effective income tax rate A reconciliation of the anticipated income tax expense/
(benefit) computed by applying the statutory federal income tax rate of 21% to income before taxes to the amount reported in the statement of operations and comprehensive loss is as follows:
Year Ended December 31,
202020192018
U.S. federal taxes at statutory rate21.0%21.0%21.0%
State taxes (net of federal benefit)2.13.52.1
Research and development tax credits0.63.43.7
Non-deductible stock-based compensation(7.8)(3.3)(4.3)
Non-deductible expenses—(0.5)(0.3)
Change in valuation allowance(15.9)(24.1)(22.2)
Effective tax rate—%—%—%
CM Life Sciences, Inc.  
Investments, Owned, Federal Income Tax Note [Line Items]  
Net deferred tax assets
The Company’s net deferred tax assets are as follows:
December 31,
2020
Deferred tax asset
Net operating loss carryforward$16,902 
Organizational costs/Startup expenses23,469 
Total deferred tax asset40,371 
Valuation allowance(40,371)
Deferred tax asset, net of allowance$— 
Schedule of income tax provision
The income tax provision consists of the following:
December 31,
2020
Federal
Current$— 
Deferred(40,371)
State
Current$— 
Deferred— 
Change in valuation allowance40,371 
Income tax provision$— 
Reconciliation of effective income tax rate
A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2020 is as follows:
December 31,
2020
Statutory federal income tax rate21.0 %
State taxes, net of federal tax benefit0.0 %
Change in fair value of warrant liability(20.0)%
Transaction costs(1.0)%
Change in valuation allowance0.0 %
Income tax provision0.0 %