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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the Company’s loss before income taxes are as follows:
Year Ended December 31,
20232022
 (in thousands)
Domestic
$(43,491)$(61,396)
Foreign
155 140 
Loss before income taxes
$(43,336)$(61,256)
There was no provision for income taxes recorded for the years ended December 31, 2023 and 2022. The Company continues to maintain a full valuation allowance against its net deferred tax assets due to the uncertainty surrounding realization of such assets. The Company periodically evaluates the realizability of its net deferred tax assets based on the expected realization and is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets.
The components of deferred income taxes are as follows:
Year Ended December 31,
20232022
(in thousands)
Federal$10,606 $13,085 
State1,856 2,997 
Foreign(28)(92)
Total deferred income taxes12,434 15,990 
Change in deferred tax valuation allowance(12,434)(15,990)
Net deferred income tax$— $— 
Income tax expense differs from the amount computed by applying the statutory federal income tax rate due to the following:
Year Ended December 31,
20232022
Tax at statutory federal rate(21.0)%(21.0)%
State tax, net of federal benefit(4.3)%(4.9)%
Tax credits(1.3)%(0.7)%
Change in deferred tax valuation allowance28.7 %26.1 %
Stock compensation(2.8)%0.3 %
Foreign rate differences(2.1)%0.1 %
Other2.8 %0.1 %
Total income tax expense— %— %
The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are presented below:
Year Ended December 31,
20232022
 (in thousands)
Net operating loss carryforwards
$85,173 $77,057 
Research and development credits
5,342 4,464 
Accruals and reserves
3,698 2,616 
Interest limitation4,378 4,447 
Depreciation and amortization
474 263 
Stock compensation3,474 3,378 
Operating lease liabilities735 1,079 
Capitalized research and development4,614 2,486 
Total deferred tax assets107,888 95,790 
Operating lease right-of-use assets(678)(1,014)
Total deferred tax liabilities(678)(1,014)
Less: Valuation allowance
(107,210)(94,776)
Total deferred tax asset, net of valuation allowance
$— $— 
The following table summarizes changes in the valuation allowance for the years ended December 31, 2023 and 2022:
Year Ended December 31,
20232022
 (in thousands)
Beginning balance$94,776 $78,786 
Net changes during the period12,434 15,990 
Ending balance$107,210 $94,776 
As of December 31, 2023, the Company had net operating loss (“NOL”) carryforwards of approximately $331.6 million and $259.6 million available to reduce future taxable income, if any, for federal and state income tax purposes, respectively. If not utilized, the Company’s federal NOL carryforward begins to expire in 2030, and the state NOL carryforward began to expire in 2023.
As of December 31, 2023, the Company had credit carryforwards of approximately $4.6 million and $3.8 million available to reduce future taxable income, if any, for both federal and state income tax purposes, respectively. The federal credits begin to expire in 2029, and the state credits have no expiration date.
The Company updated its Section 382 ownership change analysis through December 31, 2020 and determined that the last ownership change was in February 2020 due to the follow-offering. The analysis concluded that no additional NOL carryforwards will expire due to the Section 382 limitation from the ownership change for both federal and state tax purposes. The Company maintains the reduction of $1.4 million of its NOL carryforwards from the previous ownership change. The Company has reviewed changes in the outstanding number of shares and equity transactions for the period January 1, 2021 through December 31, 2023 to determine if an additional ownership change occurred for Section 382 purposes. The Company reasonably believes no additional ownership change occurred in the current year, however, noted there has been a material increase to the equity shift. The Company will continually assess the need to update its Section 382 ownership change analysis. An ownership change in the future could materially limit the Company’s ability to utilize its NOL carryforwards and other tax attributes.
Under an Organization for Economic Co-operation and Development Inclusive Framework, countries that agreed to enact a two-pillar solution aim to address the challenges arising from the digitalization of the world economy (Pillar Two). Pillar Two sets out a global minimum Effective Tax Rate (ETR) rules to ensure that large multinational businesses with consolidated revenue over €750 million are subject to a minimum ETR of 15% on income arising in low-tax jurisdictions. Rules under Pillar Two are expected to be enacted beginning January 1, 2024. The Company will continue to monitor the impact of Pillar Two; however, the Pillar Two is currently not applicable as the Company does not meet the threshold of having consolidated revenue over €750 million.
The Company accounts for the uncertainty in income taxes by utilizing a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of any uncertain tax positions that have been taken or are expected to be taken on an income tax return. The changes in the Company’s uncertain income tax positions for the years ended December 31, 2023 and 2022 consisted of the following:
Year ended December 31,
20232022
(in thousands)
Balance at beginning of the year
$2,944 $2,655 
Increases related to tax positions taken prior to current year(726)$(12)
Increases related to current year's tax positions411 301 
Balance at end of the year$2,629 $2,944 

The Company has elected to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. The Company has no accrued interest related to unrecognized tax benefits as of December 31, 2023 and 2022. None of the Company’s unrecognized tax benefits that, if recognized, would affect its effective tax rates for the years ended December 31, 2023 and 2022. The Company does not anticipate the total amounts of unrecognized tax benefits will significantly increase or decrease in the next 12 months.

The Company currently has no federal, state or foreign tax examinations in progress nor has it had any federal or state examinations since inception. As a result of the Company’s net operating loss carry forwards, all of its tax years are subject to federal and state tax examinations.