Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of components of the income tax provision

The components of the Company’s income tax provision (benefit) are as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	—	$	(119)	$	—
State	(202)		262		88
Total current provision (benefit)	(202)		143		88
Deferred:
Federal	(2,046)		43		(60)
State	(312)		20		(34)
Total deferred provision (benefit)	(2,358)		63		(94)
Total income tax provision (benefit)	$	(2,560)	$	206	$	(6)

Schedule of overall effective income tax rate

The overall effective income tax rate differs from the statutory federal rate as follows:

	Year Ended December 31,
	2022		2021		2020
Income tax benefit based on the federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	1.8		4.4		35.7
Nondeductible expenses	(0.3)		3.2		(3.2)
Change in valuation allowance	(12.7)		2.4		(49.9)
Stock-based compensation	(1.3)		(8.6)		(23.2)
Research and development tax credits	—		(20.1)		25.1
Uncertain tax positions	0.6		(2.8)		—
Goodwill impairment	(7.0)		—		(5.5)
Overall effective income tax rate	2.1	%	(0.5)	%	—	%

Schedule of components of deferred tax assets (liabilities)

The components of deferred tax assets (liabilities) are as follows (in thousands):

	December 31,
	2022		2021
Deferred income tax assets:
Net operating loss carryforwards	$	80,688	$	77,634
Stock-based compensation	6,827		6,550
Accrued expenses	1,303		914
Research and development tax credits	6,558		6,405
Operating leases liabilities	5,457		7,662
Intangible assets and goodwill	2,953		1,205
Property, equipment and software	1,104		—
Capitalized research and development costs	8,792		—
Other	652		1,176
Gross deferred tax assets	114,334		101,546
Valuation allowance	(109,876)		(94,117)
Net deferred tax assets	4,458		7,429
Deferred tax liabilities:
Property, equipment and software	—		(1,363)
Capitalized commissions	(365)		(427)
Operating lease assets	(4,093)		(5,742)
Gross deferred tax liabilities	(4,458)		(7,532)
Total net deferred tax assets (liabilities)	$	—	$	(103)

Schedule of change in the valuation allowance

The change in the valuation allowance for the years ended December 31, 2022, 2021, and 2020 is as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Valuation allowance, at beginning of year	$	94,117	$	95,042	$	111,193
Increase in valuation allowance	15,759		—		—
Decrease in valuation allowance	—		(925)		(16,151)
Valuation allowance, at end of year	$	109,876	$	94,117	$	95,042

Schedule of reconciliation of the total amounts of unrecognized tax benefits

The following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2022		2021		2020
Unrecognized tax benefit, beginning of year	$	5,237	$	7,640	$	(3)
Increase (decrease) based on tax positions in prior period	(1,101)		(3,504)		1,447
Increase based on tax positions in current period	434		1,101		6,196
Unrecognized tax benefit, end of year	$	4,570	$	5,237	$	7,640