Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of reconciliation of federal statutory income tax rate to effective income tax rate

	Year Ended December 31,
	2023		2022
Federal statutory income tax rate	(21.0)	%	(21.0)	%
State income taxes, net of federal benefit	(3.2)		(4.7)
Federal and state research and development tax credits	(5.0)		(5.1)
Nondeductible items	3.1		(1.7)
Change in valuation allowance	25.5		32.5
Effective income tax rate	(0.6)	%	0.0	%

Schedule of net deferred tax assets

Net deferred tax liabilities consisted of the following (in thousands):

	December 31,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	27,221	$	23,210
Research and development tax credit carryforwards		10,557		8,722
Lease liability		1,362		1,139
Deferred Revenue		2,527		3,268
Accrued expenses and other		5,421		4,314
Capitalization under Section 174(a)		7,172		3,857
Total deferred tax assets		54,260		44,510
Deferred tax liabilities:
Right-of-use asset		(1,394)		(1,000)
Intangible assets		(2,482)		(2,671)
Total deferred tax liabilities		(3,876)		(3,671)
Valuation allowance		(52,825)		(43,510)
Net deferred tax liabilities	$	(2,441)	$	(2,671)

Schedule of changes in valuation allowance

Changes in the valuation allowance for deferred tax assets related primarily to the increase in net operating loss carryforwards and research and development tax credit carryforwards and were as follows (in thousands):

	Year Ended December 31,
	2023		2022
Valuation allowance as of beginning of year	$	43,510	$	32,631
Increases recorded to income tax provision		9,315		10,879
Valuation allowance as of end of year	$	52,825	$	43,510