| Schedule of Reconciliation of Effective Income Tax Rate |
A reconciliation of the income tax expense computed using the federal statutory income tax rate to the Company’s effective income tax rate is as follows: | | | | | | | | | | | | | Year Ended
December 31, | | 2024 | | 2023 | | Income tax computed at federal statutory tax rate | 21.0 | % | | 21.0 | % | | State taxes, net of federal benefit | 4.9 | % | | 6.0 | % | | General business credit carryovers | 2.6 | % | | 2.5 | % | | 162m limitation | (0.2) | % | | — | % | | Stock options | (0.2) | % | | (4.3) | % | | Non-deductible expenses | (0.1) | % | | (0.2) | % | | Tax rate changes | (2.6) | % | | (4.5) | % | | Change in valuation allowance | (25.5) | % | | (21.8) | % | | Other | — | % | | 1.3 | % | | (0.1) | % | | — | % |
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| Schedule of Components of Deferred Tax Assets and Liabilities |
The principal components of the Company’s deferred tax assets and liabilities consist of the following at December 31, 2024 and 2023 (in thousands): | | | | | | | | | | | | | Year Ended
December 31, | | 2024 | | 2023 | | Deferred tax assets: | | | | | Net operating loss carryforwards | $ | 170,770 | | | $ | 153,365 | | | Tax credit carryforwards | 31,766 | | | 25,646 | | | Accrued expenses | 6,763 | | | 3,975 | | | Capitalized patent costs | 52,178 | | | 56,955 | | | Capitalized research | 84,703 | | | 60,891 | | | Lease liabilities | 9,134 | | | 9,966 | | | Deferred revenue | 15,755 | | | 18,791 | | | Depreciation and amortization | 978 | | | 905 | | | Stock compensation | 10,431 | | | 7,323 | | | Other | 14,976 | | | — | | | Total deferred tax assets | 397,454 | | | 337,817 | | | Less valuation allowance | (388,967) | | | (328,630) | | | Net deferred tax assets | 8,487 | | | 9,187 | | | Deferred tax liabilities | (8,487) | | | (9,187) | | | Depreciation and amortization | — | | | — | | | Right-of-use assets | (8,487) | | | (9,187) | | | Net deferred taxes | $ | — | | | $ | — | |
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| Schedule of Activity Related to Gross Unrecognized Tax Benefits |
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits at the beginning and end of the years ended December 31, 2024 and 2023 (in thousands): | | | | | | | Year Ended
December 31, 2024 | | Balance as of December 31, 2023 | $ | 13,659 | | | Gross increases for tax positions related to current year | 2,020 | | | Gross increases for tax positions related to prior year | — | | | | | Balance as of December 31, 2024 | $ | 15,679 | |
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