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INCOME TAXES
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
INCOME TAXES INCOME TAXES During the nine months ended September 30, 2021 and 2020, the Company recorded a full valuation allowance on federal and state deferred tax assets since management does not forecast the Company to be in a taxable position in the near future. INCOME TAXES
A reconciliation of the US federal statutory income rate to the Company’s effective income tax rate is as follows:
Years Ended December 31,
20202019
Federal statutory income tax rate
21.0 %21.0 %
State income taxes, net of federal benefit
5.1 %7.2 %
Permanent differences
(5.8 %)(3.3 %)
Federal and state research and development tax credits
1.8 %27.0 %
Other
0.4 %(3.5 %)
Provision to return adjustment
(0.3 %)(7.3 %)
Change in deferred tax asset valuation allowance
(22.2 %)(41.1 %)
Effective income tax rate
— %— %
The components of the Company’s deferred tax assets are as follows:
December 31,
20202019
Deferred tax assets:
Net operating loss carryforwards
$34,040 $12,088 
Deferred revenues
10 1,678 
Research and development credit carryforwards
4,988 3,179 
Accrued expenses and other
1,145 1,610 
Stock-based compensation
167 113 
Depreciation
(100)16 
Total deferred tax assets
40,250 18,684 
Less: valuation allowance
(40,250)(18,684)
Net deferred tax assets
$— $— 
The Company had no income tax expense due to the operating loss incurred for the years ended December 31, 2020 and 2019. The Company’s management has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and has determined that it is more likely than not that the Company will not recognize the benefits of the net deferred tax assets. As a result, the Company recorded a full valuation allowance at December 31, 2020 and 2019. The valuation allowance increased by $21,566 during the year ended December 31, 2020, due to the increase in deferred tax assets, primarily due to net operating loss carryforwards, research and development tax credits and accrued expenses. The valuation allowance increased by $3,826 for the year ended December 31, 2019.
As of December 31, 2020, the Company has unused federal and state net operating loss carryforwards, or NOLs, available for carryforward of $124,255 and $125,741, respectively. The federal and state NOL carryforwards begin to expire after 2034 and 2029, respectively. Approximately $106,884 of the federal NOLs have an indefinite carryover period. The Company also had available research and development credits for federal and state income tax purposes of $4,378 and $924, respectively. Utilization of the NOL, research and development credits and other tax attributes may be subject to a substantial annual limitation under Section 382 of the Internal Revenue Code of 1986 due to ownership change limitations that have occurred previously or could occur in the future. The Company has not yet completed an evaluation of the ownership changes through December 31, 2020.
As of December 31, 2020, and 2019, the Company had no uncertain tax positions. The Company recognizes both interest and penalties associated with unrecognized tax benefits as a component of income tax expense. The Company has not recorded any interest or penalties for unrecognized tax benefits since its inception. In the normal course of business, the Company and its subsidiaries may be periodically examined by various taxing authorities. The Company files income tax returns in the United States on a federal basis and in certain U.S. states. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. With few exceptions, the Company is no longer subject to income tax examinations for years prior to 2017.