Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Reconciliation of Income Tax Expense (Benefit)

A reconciliation of income tax expense (benefit) to the amount computed by applying the statutory federal income tax rate to the loss from operations is summarized for the years ended December 31, 2019 and 2018, respectively, as follows (in thousands):



	Year Ended December 31,
	2019			2018
Income tax benefit at statutory rate	$	(8,242	)	$	(5,008	)
State income tax, net of federal benefit	(3,783		)	(1,593		)
Permanent items	16			3
Fair value adjustments	—			15
Non-deductible interest expense	—			706
Stock-based compensation	56			45
Orphan drug credit	(925		)	(475		)
Research and development credits	(763		)	(274		)
Uncertain tax positions	548			222
Tax Cuts and Jobs Act	—			(15		)
Change in state rate	(34		)	—
Change in valuation allowance	13,179			6,426
Other	(52		)	(52		)
	$	—		$	—

Significant Components of Deferred Tax Assets

Significant components of the Company’s deferred tax assets as of December 31, 2019 and 2018 are shown below:



	As of December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	42,872		$	31,744
Research and development and orphan drug credits	6,212			4,615
Accrued expenses	519			332
Intangibles	60			69
Operating lease liabilities	545			—
Other, net	322			54
Total deferred tax assets	50,530			36,814

Deferred tax liabilities:
Operating lease right-of-use assets	(527		)	—
Property and equipment, net	(28		)	(18		)
Total deferred tax liabilities	(555		)	(18		)

Net deferred tax assets before valuation allowance	49,975			36,796
Valuation allowance	(49,975		)	(36,796		)
Net deferred tax assets	$	—		$	—

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended December 31, 2019 and 2018 (in thousands):



	Year Ended December 31
	2019		2018
Gross unrecognized tax benefits at the beginning of the year	$	1,809	$	1,293
Increases related to current year positions	645		362
Increases related to prior year positions	106		154
Decreases related to prior year positions	—		—
Expiration of unrecognized tax benefits	—		—
Gross unrecognized tax benefits at the end of the year	$	2,560	$	1,809