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 Taxes [Abstract]  
Reconciliation of Statutory to Effective Income Tax Rate
A reconciliation of income tax computed at the statutory federal income tax rate to the provision (benefit) for income taxes included in the accompanying statements of comprehensive income (loss) is as follows for the years ended December 31, 2022 and 2021:
 
   
2022
    
2021
  
Income tax (benefit) provision at federal statutory rate     21.0
 %
     (21.0
 )%
Valuation allowance
     (21.4
 )
     11.9
  
State income tax, net of federal benefit
     4.9
       (4.8
 )
Warrants
     —
       15.3
  
Stock options
     0.4
       (0.1
 )
Research and development
     (3.1
 )
     (1.1
 )
Other
     (0.1
 )
     (0.2
 )
Effective tax rate
     1.7
 %
     —
 %
Components of Income Tax Provision (Benefit)

The components of income tax provision (benefit) consisted of the following for the years ended December 31, 2022 and 2021 (in thousands):

    2022
    2021
 
Income (loss) before income taxes:
   $ 18,203     $ (56,693 )
                 
Current:
                
Federal
   $ 279     $ —  
State
     36       —  
Total current tax provision (benefit)
     315       —  
Deferred:
                
Federal
     —       —  
State
     —       —  
Total tax provision (benefit)
  $ 315     $ —  
Deferred Tax Assets and Liabilities
Significant components of the Company’s deferred tax assets and liabilities are summarized in the tables below as of December 31, 2022 and 2021 (in thousands):
 
   
2022
    
2021
  
Deferred tax assets:
            
Federal and state operating loss carryforwards   $ 13,087     $ 19,244  
Acquired intangibles
     547      
547
  
Deferral of research and development costs
    2,820       —  
Organizational costs
     7      
7
  
Other     62       18  
Stock-based compensation
     1,152      
811
  
Research and development credit carryforward
     731      
1,035
  
Subtotal
     18,406      
21,662
  
Valuation allowance
    
(17,770
)
    
(21,662
)
Total deferred tax assets, net of valuation allowance
    
636
      
—
  
Deferred tax liabilities:
                
Deferred revenue
    (636 )     —  
Total deferred tax liabilities
    
(636
)
    
—
  
Net deferred tax assets
  
$
—
    
$
—