Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Effective Tax Rate Reconciliation

Effective Tax Rate Reconciliation. A reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31, 2023, 2022 and 2021 consists of the following:


	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Expected income tax expense (benefit) at 21%	$	(37,196)	$	(21,408)	$	(18,429)
State income taxes, net of federal benefit	(3,895)		—		—
Equity compensation	1,530		1,627		851
Research and development credit	(712)		—		—


State income taxes, tax rate change	(4,723)		—		—


Change in valuation allowance	44,410		19,543		17,210
Other (1)	586		238		368
Income tax benefit	$	—	$	—	$	—

(1) Other is primarily comprised of expiring NOLs and nondeductible expenses for the year ended December 31, 2023 and nondeductible expenses for the years ended December 31, 2022 and 2021.

Schedule of Deferred Tax Assets (Liabilities)

The components of Lexicon’s deferred tax assets (liabilities) at December 31, 2023 and 2022 are as follows:


	As of December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	288,264	$	251,331
Research and development tax credits	30,002		29,290
Orphan drug credits	24,524		24,524
Capitalized research and development	37,357		33,813
Stock-based compensation	6,965		5,445

Interest	1,359		398
Other	3,308		2,255
Total deferred tax assets	391,779		347,056
Deferred tax liabilities:

Other	(1,608)		(1,295)
Total deferred tax liabilities	(1,608)		(1,295)
Less: valuation allowance	(390,171)		(345,761)
Net deferred tax liabilities	$	—	$	—