Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

12. Income taxes

Our loss before income taxes is as follows (in thousands):

	2021			2020			2019
United States	$	(172,415	)	$	(183,524	)	$	(176,145	)

For 2021, 2020 and 2019, there was no current or deferred provision for income taxes, current or deferred.

As of December 31, 2021, we had a federal net operating loss (“NOL”) carryforwards of $885.1 million, which is available to offset future taxable income. Of the total NOL, $338.8 million can be carried forward for 20 years and will begin to expire in 2031. The remaining $546.3 million can be carried forward indefinitely. In the event of future income, the NOL deduction arising from NOL generated in taxable years beginning in 2021 will be limited to 80% of the excess taxable income.

A reconciliation between taxes computed at the federal statutory rate and the consolidated effective tax rate is as follows:

	2021			2020			2019
Federal statutory tax rate		21.0	%		21.0	%		21.0	%
State tax rate, net of federal tax benefit		4.7	%		5.1	%		4.0	%
Adjustment in valuation allowances		(22.1	%)		(27.0	%)		(22.5	%)
Excess stock benefits		(1.5	%)		0.1	%		0.2	%
Permanent and other differences		(2.1	%)		0.8	%		(2.7	%)
Provision (benefit) for income taxes		0.0	%		0.0	%		0.0	%

The components of the net deferred income tax asset as of December 31, 2021 and 2020 are as follows (in thousands):

	As of December 31,
	2021			2020
Deferred income tax assets:
Net operating loss	$	224,660		$	195,008
Share-based payment compensation		17,698			17,252
Interest expense limitation		20,391			12,992
Accrual for sales returns and coupons		3,779			5,060
R&D credit		186			186
Other, net		1,674			(241	)
Deferred income tax asset		268,388			230,257
Valuation allowance		(268,388	)		(230,257	)
Deferred income tax assets, net	$	—		$	—

We believe that it is more likely than not that we will not generate sufficient future taxable income to realize the tax benefits related to the deferred tax assets on our balance sheet. Accordingly, a valuation allowance has been established against the deferred tax assets as of December 31, 2021 and 2020.

Since our first year of operations in 2011, we generated net operating losses, and our U.S. federal and state tax returns remain open to examination.

As of December 31, 2021 and 2020, we had no tax positions relating to open tax returns that were considered to be uncertain, and we had no unrecognized tax benefits.