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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Loss before provision for income taxes for the years ended December 31, 2021 and December 31, 2020 consists of the following:

Year Ended December 31,

20212020
U.S. loss
$(137,589)$(38,793)
Foreign income1098
Total current$(137,579)$(38,695)
The major components of income tax (expense) benefit attributable to loss from operations consists of:

Year Ended December 31,

20212020
Current:
Federal
$50$8,217
State
(33)(176)
Foreign
(160)(7)
Total current$(143)$8,034
Deferred:


Federal
——
State
——
Foreign
—(20)
Total deferred—(20)
Total income tax (expense) benefit
$(143)$8,014
Income tax (expense) benefit attributable to loss from continuing operations for the years ended December 31, 2021 and 2020 differed from the amounts computed by applying the U.S. federal income tax rates of 21.0%, as a result of the following:
Year Ended December 31,
 20212020
U.S. federal statutory tax rate
21.0%21.0%
State income taxes, net of federal tax benefit
1.8%4.7%
Share-based compensation(0.3)%7.2%
Change in fair value of financial instruments and other1.4%6.1%
Non-deductible transaction costs—%(2.1)%
Goodwill impairment(1)
(11.4)%—%
Changed in valuation allowance(2)
(12.5)%(18.5)%
Research and development tax credit0.4%2.9%
Other, net
(0.5)%(0.6)%
Effective tax rate
(0.1)%20.7%
(1)During the year ended December 31, 2021, the Company impaired its goodwill associated with the acquisition of Abacus. A portion of this impairment charge is permanently disallowed for tax purposes.
(2)During the year ended December 31, 2021, the Company maintained a full valuation allowance on its deferred tax assets.

In March 2020, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security ("CARES") Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. The CARES Act, among other things, allows for the Company to carryback certain net operating losses ("NOLs") generated in 2019. The impact of the carryback of our 2019 net operating losses resulted in an additional refund of $8,056, and is reflected in income taxes receivable as of December 31, 2021 and 2020. The carryback also resulted in an income tax benefit of $8,056, consisting of $6,218 due to the ability to recognize the net operating loss deferred tax asset and $1,838 from the rate differential between the tax effective in the carryback period and the 21% federal tax rate in 2019. The difference in the income tax receivable and the income tax benefit relates to incremental R&D credits claimed in the years the carryback was applied. These incremental tax credits recorded are also subject to the valuation established against net deferred tax assets. The Company previously recognized $3,273 of income taxes receivable related to overpayments made in 2019. The CARES Act, 2019 overpayments, and miscellaneous other income taxes receivable result in total income taxes receivable as of December 31, 2020 of $11,440. During the year ended December 31, 2021, the Company received $676 of the outstanding incomes taxes receivable related to state refunds.

The components of deferred tax assets and liabilities are as follows:


December 31,

20212020
Deferred tax assets:
Net operating loss and other carryforwards
$45,557$33,961
Share-based compensation
1,8531,717
Inventory provision and UNICAP 263A
4,1914,653
Lease liability5,5865,455
Other
3851,186
Property and equipment121 — 
Intangible assets514 — 
Total deferred tax assets
$58,207 $46,972 
Valuation allowance
(52,888)(35,685)
Total deferred tax assets, net
$5,319$11,287

Deferred tax liabilities:
Property and equipment
$—$(851)
Intangibles—(5,127)
Right of use assets(5,110)(5,103)
Warrants(209)(206)
Total deferred tax liabilities
$(5,319)$(11,287)

Net deferred taxes (liabilities)$—$—

The realization of deferred income tax assets may be dependent on the Company’s ability to generate sufficient income in future years in the associated jurisdiction to which the deferred tax assets relate. The Company considers
all available positive and negative evidence, including scheduled reversals of deferred income tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based on the review of all positive and negative evidence, including a three-year cumulative pre-tax loss, the Company continues to believe its deferred tax assets are not more-likely-than-not to be realized and, as such, a full valuation allowance is recorded against net deferred taxes. For the years ended December 31, 2021 and 2020, the Company’s valuation allowance increased by $17,203 and $11,251, respectively, primarily related to the incremental net operating losses.

As of December 31, 2021, the Company has federal and state net operating losses of approximately $170,443 and $144,225, respectively. The entire federal NOLs are post-2017 NOL and therefore can be carried forward indefinitely and the state NOLs will begin to expire on December 31, 2029. The Company also has a research and development credit carryforward of $1,788 as of December 31, 2021.

Tax laws impose restrictions on the utilization of net operating loss carryforwards and research and development credit carryforwards in the event of a change in ownership of the Company as defined by Internal Revenue Code Section 382 and 383. The Company may have experienced ownership changes in the past that impact the availability of its net operating losses and tax credits. Should there be additional ownership changes in the future, the Company's ability to utilize existing carryforwards could be substantially restricted.

Uncertain tax position
A reconciliation of the beginning and ending amount of uncertain tax positions as of December 31, 2021 and 2020 is as follows:

Balance at December 31, 2020$134 
Additions for current year tax positions52 
Additions for prior year tax positions— 
Reductions for prior year tax positions(7)
Reductions as a result of settlement with tax authority— 
Balance at December 31, 2021$179 

Balance at December 31, 2019$— 
Additions for current year tax positions55 
Additions for prior year tax positions79 
Reductions for prior year tax positions— 
Reductions as a result of settlement with tax authority— 
Balance at December 31, 2020$134 

The Company recognizes the tax benefit from an uncertain tax position only if it is probable that the tax position will be sustained based on its technical merits. The Company measures and records the tax benefits from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company’s estimated liabilities related to these matters are adjusted in the period in which the uncertain tax position is effectively settled, the statute of limitations for examination expires or when additional information becomes available. The Company’s liability for unrecognized tax benefits requires the use of assumptions and significant judgement to estimate the exposures associated with our various filing positions. Although the Company believes that the judgments and estimates made are reasonable, actual results could differ and resulting adjustments could
materially affect the Company's effective income tax rate and income tax provision. The Company’s policy is to recognize interest and penalties on taxes, if any, as income tax expense.

If recognized, none of the uncertain tax positions would affect the effective tax rate. The Company does not anticipate any significant changes to the uncertain tax positions in the next twelve months.

The Company files income tax returns in the U.S. federal and various state jurisdictions and Israel. In the normal course of business, it is subject to examination by taxing authorities throughout the world. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities in years before 2018.