Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Tax Rate |
The effective tax rate of the Company’s provision for income taxes differs from the federal statutory rate as follows:
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Year Ended December 31, |
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2021 |
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2020 |
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2019 |
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Statutory federal income tax rate |
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21.0 |
% |
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21.0 |
% |
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21.0 |
% |
State tax, net of federal benefit |
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10.2 |
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7.9 |
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4.2 |
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Permanent differences |
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(0.1 |
) |
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(0.6 |
) |
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(0.8 |
) |
Research and development tax credits |
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1.9 |
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2.8 |
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2.6 |
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Other |
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(1.8 |
) |
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(0.2 |
) |
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(0.8 |
) |
Change in state tax apportionment |
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— |
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9.4 |
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— |
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Non-taxable stock premium |
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2.5 |
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— |
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— |
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Change in valuation allowance |
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(33.7 |
) |
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(40.3 |
) |
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(26.3 |
) |
Total provision for income taxes |
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— |
% |
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— |
% |
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— |
% |
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| Schedule of Components of Net Deferred Tax Assets/Liabilities |
The components of the net deferred tax assets/liabilities are as follows (in thousands):
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December 31, |
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2021 |
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2020 |
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Deferred tax assets: |
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Federal and state net operating loss carryforwards |
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$ |
97,575 |
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$ |
74,278 |
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Research and development tax credits |
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12,271 |
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9,247 |
|
Lease liabilities |
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7,684 |
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7,327 |
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Accruals and other |
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3,184 |
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3,354 |
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Amortization |
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10,633 |
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11,155 |
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Deferred revenue |
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2,537 |
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3,414 |
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Gross deferred tax assets |
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133,884 |
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108,775 |
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Valuation allowance |
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(127,007 |
) |
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(101,781 |
) |
Net deferred tax assets |
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6,877 |
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6,994 |
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Deferred tax liabilities: |
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Other depreciation |
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(212 |
) |
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(763 |
) |
Operating lease right-of-use assets |
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(6,665 |
) |
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(6,231 |
) |
Deferred tax assets, net of allowance |
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$ |
— |
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$ |
— |
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| Schedule of Net Operating Loss and Tax Credit Carryforwards |
Net operating loss and tax credit carryforwards as of December 31, 2021 are as follows (in thousands):
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Amount |
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Expiration Years |
Net operating losses, federal (post December 31, 2017) |
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$ |
303,229 |
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Do not expire |
Net operating losses, federal (pre January 1, 2018) |
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50,587 |
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2035 - 2037 |
Net operating loss, state |
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347,184 |
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2035 - 2040 |
Tax credits, federal |
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10,990 |
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2035 - 2040 |
Tax credits, state |
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7,806 |
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CA: credits do not expire
MA: 2035 - 2040 |
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| Schedule of Unrecognized Tax Benefits |
The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
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December 31, |
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2021 |
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2020 |
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2019 |
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Beginning of year—unrecognized tax benefits |
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$ |
4,025 |
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$ |
2,610 |
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$ |
2,077 |
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Decrease for tax positions taken during prior periods |
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— |
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— |
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(711 |
) |
Increases for tax positions taken during current period |
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1,456 |
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1,415 |
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1,244 |
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End of year—unrecognized tax benefits |
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$ |
5,481 |
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$ |
4,025 |
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$ |
2,610 |
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