Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of components of the Company's loss before income tax expense
The components of the Company’s loss before income tax expense are as follows (in thousands):
Year Ended December 31,
2022 2021
United States $ (85,760) $ (10,430)
Foreign (646) (458)
Loss before income tax provision $ (86,406) $ (10,888)
Summary of reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:
Year Ended December 31,
2022 2021
Federal statutory income tax rate 21.0 % 21.0 %
State income taxes, net of federal benefit 3.5  19.2 
Federal and state research and development tax credits (1.2) 9.7 
Loss on extinguishment of debt —  (24.5)
Merger transaction costs —  (1.3)
Change in fair value of contingent earn-out liability and contingently issuable common stock liability 3.4  126.7 
Change in fair value of derivative liability —  (3.4)
Non-deductible convertible notes interest —  (10.2)
Change in valuation allowance (23.6) (140.7)
Change in tax rate (0.1) (0.5)
Stock-based compensation (0.2) 4.3 
Non-deductible compensation (2.6) — 
Permanent differences (0.2) (0.4)
Other —  0.1 
Effective income tax rate 0.0  % 0.0  %
Summary of net deferred tax assets
Net deferred tax assets consisted of the following (in thousands):
December 31,
2022 2021
Deferred tax assets:    
Net operating loss carryforwards $ 36,518 $ 25,461
Research and development tax credit carryforwards 3,836 4,910
Capitalized research and development costs 9,965 8,436
Accrued expenses 6,660 3,722
Deferred revenue 8,884 2,270
Lease liability 490 —
Other 106 43
Total deferred tax assets 66,459 44,842
Valuation allowance (64,570) (43,966)
Total deferred tax assets, net of valuation allowance 1,889 876
Deferred tax liabilities:    
Depreciation and amortization (1,464) (860)
Right of use lease asset (409) —
Other (16) (16)
Total deferred tax liabilities (1,889) (876)
Net deferred tax assets $ — $ —
Summary of changes in the valuation allowance for deferred tax assets
Changes in the valuation allowance for deferred tax assets related primarily to the increase in net operating loss carryforwards and capitalized R&D costs and were as follows (in thousands):
December 31,
2022 2021
Valuation allowance as of beginning of year $ 43,966 $ 26,275
Additions charged to provision for income taxes 20,320 15,534
Additions charged to equity 332 2,155
Currency translation and other (48) 2
Valuation allowance as of end of year $ 64,570 $ 43,966