v3.22.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company has incurred $177 provision for income taxes for the year ended December 31, 2021, of which $97 was related to foreign income taxes and $80 for state income taxes. For the year ended December 31, 2020, the Company incurred $68 provision for income taxes, of which $26 was related to foreign income taxes and $42 for state income taxes.
The company has the following deferred tax assets (liabilities) as of December 31, 2021 and 2020:
20212020
Net operating loss carryforwards$61,605 $20,912 
Equity compensation1,881 1,063 
Research and development credits14,480 4,936 
Lease liability7,335 2,184 
Other DTA56 65 
Sales tax / VAT reserve277 544 
Valuation allowance(76,293)(26,236)
Total deferred tax assets9,341 3,468 
ROU asset(6,389)(1,908)
Property and equipment(1,894)(1,014)
Capitalized software(1,057)(543)
Other DTL(1)(3)
Total deferred tax liabilities(9,341)(3,468)
Net deferred taxes$— $— 
The Company has provided a valuation allowance for the net deferred tax asset as it is not more likely than not that the asset will be realized. The movement in valuation allowance of $50,057 is primarily related to the generation of additional net operating losses and research and development credits.
The following table represents the activity in our valuation allowance for the years ended December 31, 2021 and 2020:
Year Ended December 31,
20212020
Beginning balance—January 1$(26,236)$(23,851)
Valuation allowances established(50,057)(2,928)
Release of valuation allowances— 543 
Ending balance—December 31$(76,293)$(26,236)
The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the years ended December 31, 2021 and 2020:
20212020
Federal statutory rate21.0 %21.0 %
State taxes6.5 1.8 
Sec. 162(m) limitation(13.5)— 
Stock options53.8 (18.4)
Other permanent adjustments(0.5)(1.8)
Research and development credit15.9 10.2 
Valuation allowance(83.5)(13.2)
Effective income tax rate(0.3)%(0.4)%
The 2021 and 2020 effective tax rate is less than the statutory rate primarily as a result of the valuation allowance for net deferred tax assets.
The Company has approximately $257,115 in federal net operating loss carryforwards and approximately $98,131 in state net operating loss carryforwards. Certain of these loss carryforwards have an indefinite
life and other amounts are available to offset future taxable income through 2041. The Company has approximately $14,480 in federal general business credits that are available to offset future taxable income through 2041. The Company has analyzed the impact of Internal Revenue Code (“IRC”) Sections 382 and 383 on these tax attributes and has determined that no prior ownership changes have occurred which would limit the Company’s ability to utilize the NOLs and research and development tax credits.
The Company’s tax years through the 2021 tax year remain subject to examination by federal and state tax authorities.
No uncertain tax benefits have been recorded in 2021 and 2020, respectively.