Income taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The income tax provision for the year ended December 31, 2020 was primarily due to state and foreign income tax expense and consisted of the following (in thousands):

	December 31, 2020
State	$	104
Foreign	219
Total provision for income taxes	$	323

Schedule of Loss before Provision for Income Taxes, Domestic and Foreign

Loss before provision for income taxes consisted of the following (in thousands)

	Years Ended December 31,
	2020	2019
United States	($148,332)	($84,426)
Foreign	(101,661)	(93,823)
Total loss before provision for income taxes	($249,993)	($178,249)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of amounts computed by applying the U.S. federal statutory income tax rate to loss before income taxes to total income tax expense is as follows (in thousands):

	Years Ended December 31,
	2020		2019
Income tax at U.S. statutory rate of 21%	$	(52,499)	$	(36,582)
Foreign tax rate differential	(889)		(843)
State income taxes (net of federal benefit)	(8,553)		(4,706)
Tax credits	(1,214)		—
Stock-based compensation	66		694
Non-deductible expenses	221		818
Other, net	(1)		5,545
Change in valuation allowance	63,192		35,074
Total provision for income taxes	$	323	$	—

Schedule of Deferred Tax Assets

The components of Sonder’s net deferred tax assets and liabilities were as follows (in thousands):

	Years Ended December 31,
	2020		2019
Deferred tax assets:
Federal and state net operating losses	$	85,972	$	29,916
Credit carryforwards	2,239		28
Accrued expenses and reserves	847		498
Deferred revenue	2,520		1,429
Deferred rent	4,747		5,007
Fixed and intangible assets	18,564		18,282
Other	7,131		3,667
Gross deferred tax assets	122,020		58,827
Valuation allowance	(122,020)		(58,827)
Total deferred tax assets	$	—	$	—

Schedule of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2020
Beginning unrecognized tax benefits	$	—
Addition to tax positions related to prior years	383
Addition to tax positions related to current year	300
Ending unrecognized tax benefits	$	683