Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12.Income Taxes

The Company’s effective income tax rate was 0.0% and -0.3% for the three months ended June 30, 2022 and 2021, respectively, and 0.0% and -0.3% for the six months ended June 30, 2022 and 2021, respectively. The income tax provision was $3 thousand and the income tax benefit was $21 thousand for the three months ended June 30, 2022 and 2021, respectively, and the income tax provision was $3 thousand and $53 thousand for the six months ended June 30, 2022 and 2021, respectively. The change in the provision for income taxes for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021 was primarily due to taxable deferred revenue in 2021 partially offset by the utilization of federal and state net operating losses and federal and state tax credits. For 2022, the Company assessed the new requirement to capitalize and amortize research and experimentation expenditures for U.S. tax purposes, which became effective as of January 1, 2022. The Company is forecasting a taxable loss position in 2022 for which no tax benefit is recorded due to the valuation allowance maintained against the Company’s deferred tax assets.

The effective income tax rate for the three and six months ended June 30, 2022 and 2021 differed from the federal statutory rate primarily due to the valuation allowance maintained against the Company’s deferred tax assets.