Income Taxes (Tables)
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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:
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Year Ended December 31, |
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2023 |
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2022 |
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|
2021 |
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Current provision |
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Federal |
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$ |
- |
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$ |
- |
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$ |
- |
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State |
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473 |
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|
105 |
|
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68 |
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473 |
|
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|
105 |
|
|
|
68 |
|
Deferred provision |
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|
|
|
|
|
|
|
Federal |
|
|
177 |
|
|
|
177 |
|
|
|
(4,015 |
) |
State |
|
|
545 |
|
|
|
39 |
|
|
|
(713 |
) |
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|
722 |
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|
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:
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Year Ended December 31, |
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2023 |
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2022 |
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|
2021 |
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Pre-tax book loss |
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$ |
(9,687 |
) |
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$ |
(21,202 |
) |
|
$ |
(42,905 |
) |
State taxes (net of federal benefit) |
|
|
(1,249 |
) |
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|
(4,559 |
) |
|
|
(7,603 |
) |
Convertible preferred stock mark-to-market adjustment |
|
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- |
|
|
|
- |
|
|
|
5,487 |
|
Section 162(m) limitations |
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1,528 |
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|
463 |
|
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|
14 |
|
Change in valuation allowance |
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8,996 |
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22,360 |
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33,548 |
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Change in deferreds |
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1,178 |
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|
2,883 |
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|
4,326 |
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Other |
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|
429 |
|
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|
376 |
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|
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:
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As of December 31, |
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2023 |
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|
2022 |
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Assets |
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Accrued expenses |
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$ |
4,680 |
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$ |
5,148 |
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Net operating loss carryforwards |
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93,351 |
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|
96,146 |
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Research and development costs |
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41,686 |
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|
21,807 |
|
Stock-based compensation |
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4,027 |
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4,290 |
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Deferred revenue |
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6,887 |
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|
7,354 |
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Interest limitation |
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1,896 |
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9,099 |
|
Agreement with VCC vendor |
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1,367 |
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3,323 |
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Lease liability |
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16,751 |
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|
16,836 |
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Contract amendment |
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11,154 |
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|
11,835 |
|
Property and equipment |
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|
3,083 |
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|
2,355 |
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Other |
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|
4,748 |
|
|
|
5,025 |
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Total gross deferred tax assets |
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|
189,630 |
|
|
|
183,218 |
|
Less: Valuation allowance |
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|
(165,851 |
) |
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(156,422 |
) |
Net deferred tax assets |
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23,779 |
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|
26,796 |
|
Liabilities |
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Intangible assets |
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(5,789 |
) |
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(6,436 |
) |
Method change adjustments |
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(337 |
) |
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(470 |
) |
ASC 606 set-up and commission costs |
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(6,921 |
) |
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(7,209 |
) |
Right-of-use assets |
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(12,014 |
) |
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(13,242 |
) |
Total gross deferred tax liabilities |
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|
(25,061 |
) |
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(27,357 |
) |
Net deferred income tax liabilities |
|
$ |
(1,282 |
) |
|
$ |
(561 |
) |
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Summary of Changes in Valuation Allowance |
The following table presents a summary of the changes in the valuation allowance:
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Year Ended December 31, |
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Deferred tax valuation allowance |
|
2023 |
|
|
2022 |
|
Beginning of period |
|
$ |
156,422 |
|
|
$ |
134,062 |
|
Additions |
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|
9,573 |
|
|
|
24,874 |
|
Deductions |
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|
(144 |
) |
|
|
(2,514 |
) |
End of period |
|
$ |
165,851 |
|
|
$ |
156,422 |
|
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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:
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Year Ended December 31, |
|
Unrecognized Tax Benefits |
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2023 |
|
|
2022 |
|
|
2021 |
|
Beginning of period |
|
$ |
449 |
|
|
$ |
- |
|
|
$ |
- |
|
Additions based on tax positions related to the current year |
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- |
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|
104 |
|
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|
- |
|
Additions for tax positions in prior years |
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- |
|
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|
345 |
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|
|
- |
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Reductions for tax positions of prior years |
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(449 |
) |
|
|
- |
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|
- |
|
Reductions for tax positions due to lapse of statute |
|
|
- |
|
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|
- |
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|
- |
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Settlements |
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|
- |
|
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|
- |
|
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|
- |
|
End of period |
|
$ |
- |
|
|
$ |
449 |
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|
$ |
- |
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