Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Net loss before income taxes |
Net loss before income taxes for the years ended December 31, 2021, 2020, and 2019 was as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2021 | | 2020 | | 2019 | United States | $ | (20,986) | | $ | (12,468) | | $ | (30,218) | Foreign | 44 | | (49) | | (44) | Total | $ | (20,942) | | $ | (12,517) | | $ | (30,262) |
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Income tax (benefit) provision |
For the years ended December 31, 2021, 2020, and 2019, the provision for (benefit from) income taxes consisted of the following: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2021 | | 2020 | | 2019 | Current | | | | | | U.S. Federal | $ | — | | $ | 1 | | $ | 1 | State | 21 | | 10 | | 13 | Foreign | — | | — | | 1 | Total current expense | 21 | | 11 | | 15 | Deferred tax benefit | | | | | | U.S. Federal | — | | — | | (364) | State | — | | — | | (60) | Foreign | — | | — | | — | Total deferred tax benefit | — | | — | | (424) | Total provision for (benefit from) income taxes | $ | 21 | | $ | 11 | | $ | (409) |
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Reconciliation of U.S federal statutory rate to effective rate |
The reconciliation of the U.S. federal statutory rate to the Company’s effective rate is as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | Income tax benefit using U.S. federal statutory rate | 21.0% | | 21.0% | | 21.0% | State income taxes, net of federal benefit | 4.7 | | 9.0 | | 0.3 | Nondeductible expenses | 0.3 | | (2.0) | | (2.3) | Tax law change | 0.2 | | 0.5 | | — | Research credits | 1.0 | | 1.1 | | 1.2 | Change in the valuation allowance | (27.2) | | (30.2) | | (18.8) | Other | (0.1) | | 0.5 | | — | Income tax benefit (provision), net | (0.1)% | | (0.1)% | | 1.4% |
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Deferred income tax assets and liabilities, and activity in deferred tax asset valuation allowance |
The significant components of the Company’s deferred income tax assets and liabilities at December 31, 2021 and 2020 were comprised of the following: | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2021 | | 2020 | Deferred tax assets | | | | Net operating losses | $ | 32,734 | | $ | 27,526 | Research credits | 3,047 | | 3,020 | Property and equipment | 488 | | 427 | Intangible assets and goodwill | 1,496 | | 1,669 | Other | 3,297 | | 3,015 | Total deferred tax assets | 41,062 | | 35,657 | Valuation allowance | (39,725) | | (34,039) | Net deferred tax assets | $ | 1,337 | | $ | 1,618 | Deferred tax liabilities | | | | Intangible assets and goodwill | (291) | | (332) | Capitalized internal-use software | (815) | | (931) | Other | (231) | | (355) | Total deferred tax liabilities | (1,337) | | (1,618) | Net deferred tax liabilities | $ | — | | $ | — |
The activity in the Company’s deferred tax asset valuation allowance for the years ended December 31, 2021 and 2020, was as follows: | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2021 | | 2020 | Valuation allowance at beginning of year | $ | 34,039 | | $ | 30,235 | Increases recorded to income tax provision | 5,686 | | 3,804 | Valuation allowance at end of year | $ | 39,725 | | $ | 34,039 |
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Unrecognized tax benefits |
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2021 | | 2020 | Gross tax contingencies as of beginning of year | $ | 1,007 | | $ | 961 | Increases in gross tax contingencies | 9 | | 46 | Gross tax contingencies as of end of year | $ | 1,016 | | $ | 1,007 |
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