Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Net loss before income taxes

Net (loss) income before income taxes for the years ended December 31, 2022, 2021, and 2020 was as follows:

	Year Ended December 31,
(in thousands)	2022		2021		2020
United States	$	(22,651)	$	(20,986)	$	(12,468)
Foreign	150		44		(49)
Total	$	(22,501)	$	(20,942)	$	(12,517)

Income tax (benefit) provision

For the years ended December 31, 2022, 2021, and 2020, the provision for income taxes consisted of the following:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Current
U.S. Federal	$	—	$	—	$	1
State	37		21		10
Foreign	—		—		—
Total current expense	37		21		11
Deferred
U.S. Federal	—		—		—
State	—		—		—
Foreign	—		—		—
Total deferred expense	—		—		—
Total provision for income taxes	$	37	$	21	$	11

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,
	2022	2021	2020
Income tax benefit using U.S. federal statutory rate	21.0%	21.0%	21.0%
State income taxes, net of federal benefit	5.0	4.7	9.0
Nondeductible expenses	(0.3)	(0.1)	(1.1)
Tax law change	—	0.2	0.5
Research credits	0.1	1.0	1.1
Sale of Design Manager	(2.2)	—	—
Stock-based compensation	(0.3)	0.4	(0.9)
Change in the valuation allowance	(23.5)	(27.2)	(30.2)
Other	—	(0.1)	0.5
Income tax benefit (provision), net	(0.2)%	(0.1)%	(0.1)%

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, 2022 and 2021 were comprised of the following:

	Year Ended December 31,
(in thousands)	2022		2021
Deferred tax assets
Net operating losses	$	32,508	$	32,734
Research credits	3,065		3,047
Property and equipment	422		488
Intangible assets and goodwill	1,293		1,496
Capitalized research and development expense	4,750		—
Operating lease liabilities	6,204		—
Other	3,180		3,297
Total deferred tax assets	51,422		41,062
Valuation allowance	(44,951)		(39,725)
Net deferred tax assets	$	6,471	$	1,337
Deferred tax liabilities
Intangible assets and goodwill	—		(291)
Capitalized internal-use software	(754)		(815)
Right-of-use assets	(5,580)		—
Other	(137)		(231)
Total deferred tax liabilities	(6,471)		(1,337)
Net deferred tax liabilities	$	—	$	—

The activity in the Company’s deferred tax asset valuation allowance for the years ended December 31, 2022 and 2021, was as follows:

	Year Ended December 31,
(in thousands)	2022		2021
Valuation allowance at beginning of year	$	39,725	$	34,039
Increases recorded to income tax provision	5,226		5,686
Valuation allowance at end of year	$	44,951	$	39,725

Unrecognized tax benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	Year Ended December 31,
(in thousands)	2022		2021
Gross tax contingencies as of beginning of year	$	1,016	$	1,007
Increases in gross tax contingencies	6		9
Gross tax contingencies as of end of year	$	1,022	$	1,016