Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Loss Before Provision (Benefit) for Income Taxes

Our loss before provision (benefit) for income taxes for the years ended December 31, 2022 and 2021 consisted of the following (in thousands):

	Year Ended December 31,
	2022			2021
Domestic	$	(1,885	)	$	206
Foreign		(68,300	)		(68,017	)
Total	$	(70,185	)	$	(67,811	)

Schedule of Provision for Income Taxes

Our provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2022		2021
Current:
Federal	$	1,059	$	114
State		86		23
Foreign		52		18
		1,197		155
Deferred:
Federal		76		(72	)
State		—		(15	)
Foreign		—		—
		76		(87	)
Total provision for income taxes	$	1,273	$	68

Reconciliation of the Statutory Income Tax Rate to our Effective Income Tax Rate

The reconciliation of the statutory income tax rate to our effective income tax rate is as follows:

	Year Ended December 31,
	2022			2021
Income tax benefit at the statutory rate		21.0	%		21.0	%
Permanent differences		0.7			(6.5	)
Difference in tax rate		1.0			1.0
R&D Deduction		4.0			—
Change in valuation allowance		(27.4	)		(15.6	)
Other		(1.1	)		—
Total		(1.8	)%		(0.1	)%

Schedule of Principal Components of Deferred Tax Assets

The principal components of the Company’s deferred tax assets consisted of the following (in thousands):

	December 31,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	31,338		$	14,693
Equity-based compensation expense		1,828			345
Accrued compensation		21			88
ROU Lease Liability		618			—
Capitalized R&D		1,231			—
Other		529			73
Total deferred tax assets	$	35,565		$	15,199
Valuation allowance		(34,984	)		(15,112	)
Net deferred tax assets	$	581		$	87
ROU Lease Asset		567			—
Other Liabilities		14			—
Total deferred tax liabilities		581			—
Net deferred tax asset (liability)	$	—		$	87

In 2017, the U.S. enacted the Tax Cuts and Jobs Act (the 2017 Tax Act), which contained a provision that requires capitalization and amortization of research and development expenses for tax purposes starting in 2022. Previously, these expenses could be deducted in the year incurred. The implementation of this provision increased our deferred tax asset and valuation allowance by approximately $1.2 million in 2022.