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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax (Benefit) Expense

The table below sets forth the components of income tax (benefit) expense:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Current provision

 

 

 

 

 

 

 

 

 

Federal

 

$

-

 

 

$

-

 

 

$

-

 

State

 

 

473

 

 

 

105

 

 

 

68

 

 

 

 

473

 

 

 

105

 

 

 

68

 

Deferred provision

 

 

 

 

 

 

 

 

 

Federal

 

 

177

 

 

 

177

 

 

 

(4,015

)

State

 

 

545

 

 

 

39

 

 

 

(713

)

 

 

 

722

 

 

 

216

 

 

 

(4,728

)

Provision for (benefit from) income taxes

 

$

1,195

 

 

$

321

 

 

$

(4,660

)

Summary of Reconciliation Between Federal Statutory Rate and Effective Income Tax Rate Used to Calculate Income Tax Provision

Reconciliation between the effect of applying the federal statutory rate of 21% pre-tax loss and the effective income tax rate used to calculate the Company’s income tax provision is as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Pre-tax book loss

 

$

(9,687

)

 

$

(21,202

)

 

$

(42,905

)

State taxes (net of federal benefit)

 

 

(1,249

)

 

 

(4,559

)

 

 

(7,603

)

Convertible preferred stock mark-to-market adjustment

 

 

-

 

 

 

-

 

 

 

5,487

 

Section 162(m) limitations

 

 

1,528

 

 

 

463

 

 

 

14

 

Change in valuation allowance

 

 

8,996

 

 

 

22,360

 

 

 

33,548

 

Change in deferreds

 

 

1,178

 

 

 

2,883

 

 

 

4,326

 

Other

 

 

429

 

 

 

376

 

 

 

2,473

 

Provision for (benefit from) income taxes

 

$

1,195

 

 

$

321

 

 

$

(4,660

)

 

Summary of Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities were as follows:

 

 

As of December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Accrued expenses

 

$

4,680

 

 

$

5,148

 

Net operating loss carryforwards

 

 

93,351

 

 

 

96,146

 

Research and development costs

 

 

41,686

 

 

 

21,807

 

Stock-based compensation

 

 

4,027

 

 

 

4,290

 

Deferred revenue

 

 

6,887

 

 

 

7,354

 

Interest limitation

 

 

1,896

 

 

 

9,099

 

Agreement with VCC vendor

 

 

1,367

 

 

 

3,323

 

Lease liability

 

 

16,751

 

 

 

16,836

 

Contract amendment

 

 

11,154

 

 

 

11,835

 

Property and equipment

 

 

3,083

 

 

 

2,355

 

Other

 

 

4,748

 

 

 

5,025

 

Total gross deferred tax assets

 

 

189,630

 

 

 

183,218

 

Less: Valuation allowance

 

 

(165,851

)

 

 

(156,422

)

Net deferred tax assets

 

 

23,779

 

 

 

26,796

 

Liabilities

 

 

 

 

 

 

Intangible assets

 

 

(5,789

)

 

 

(6,436

)

Method change adjustments

 

 

(337

)

 

 

(470

)

ASC 606 set-up and commission costs

 

 

(6,921

)

 

 

(7,209

)

Right-of-use assets

 

 

(12,014

)

 

 

(13,242

)

Total gross deferred tax liabilities

 

 

(25,061

)

 

 

(27,357

)

Net deferred income tax liabilities

 

$

(1,282

)

 

$

(561

)

Summary of Changes in Valuation Allowance

The following table presents a summary of the changes in the valuation allowance:

 

 

Year Ended December 31,

 

Deferred tax valuation allowance

 

2023

 

 

2022

 

Beginning of period

 

$

156,422

 

 

$

134,062

 

Additions

 

 

9,573

 

 

 

24,874

 

Deductions

 

 

(144

)

 

 

(2,514

)

End of period

 

$

165,851

 

 

$

156,422

 

Summary of Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows for the periods presented:

 

 

Year Ended December 31,

 

Unrecognized Tax Benefits

 

2023

 

 

2022

 

 

2021

 

Beginning of period

 

$

449

 

 

$

-

 

 

$

-

 

Additions based on tax positions related to the current year

 

 

-

 

 

 

104

 

 

 

-

 

Additions for tax positions in prior years

 

 

-

 

 

 

345

 

 

 

-

 

Reductions for tax positions of prior years

 

 

(449

)

 

 

-

 

 

 

-

 

Reductions for tax positions due to lapse of statute

 

 

-

 

 

 

-

 

 

 

-

 

Settlements

 

 

-

 

 

 

-

 

 

 

-

 

End of period

 

$

-

 

 

$

449

 

 

$

-