INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| INCOME TAXES |
|
| Schedule of components of Income (Loss) before provision for income taxes |
For financial reporting purposes, loss before provision for income taxes, includes the following components (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2021 |
|
2020 |
Domestic |
|
$ |
(252,343) |
|
$ |
(34,285) |
Foreign |
|
|
(17,659) |
|
|
(670) |
Loss before income taxes |
|
$ |
(270,002) |
|
$ |
(34,955) |
|
| Schedule of provision (benefit) for income taxes |
The provision (benefit) for income taxes consists of the following (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2021 |
|
2020 |
Current: |
|
|
|
|
|
|
Federal |
|
$ |
(33) |
|
|
— |
State |
|
|
20 |
|
|
— |
Total Current |
|
|
(13) |
|
|
— |
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(23,378) |
|
|
(670) |
State |
|
|
(5,494) |
|
|
(270) |
Foreign |
|
|
(783) |
|
|
— |
Total Deferred |
|
|
(29,655) |
|
|
(940) |
Benefit for income taxes |
|
$ |
(29,668) |
|
$ |
(940) |
|
| Schedule of Reconciliation of the expected income tax (benefit) computed using the federal statutory income tax rate |
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2021 |
|
2020 |
|
Effective income tax rate: |
|
|
|
|
|
|
|
Expected income tax benefit at the federal statutory rate |
|
|
21 |
% |
|
21 |
% |
State taxes |
|
|
(2) |
% |
|
6 |
% |
Change in valuation allowance |
|
|
(4) |
% |
|
(68) |
% |
Research and development credit carryover |
|
|
(1) |
% |
|
2 |
% |
Stock-based compensation expense |
|
|
3 |
% |
|
— |
% |
Warrant Expense |
|
|
(5) |
% |
|
— |
% |
Permanent differences |
|
|
— |
% |
|
42 |
% |
Other |
|
|
(1) |
% |
|
— |
% |
Effective income tax rate |
|
|
11 |
% |
|
3 |
% |
|
| Schedule of deferred net tax assets and liabilities |
As of December 31, 2021, and 2020, deferred tax assets and liabilities consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2021 |
|
2020 |
Deferred tax assets: |
|
|
|
|
|
|
Federal and state net operating carryforwards |
|
$ |
148,946 |
|
$ |
77,463 |
Research and development and other credits |
|
|
10,977 |
|
|
13,555 |
Start-up costs |
|
|
12,904 |
|
|
15,717 |
Stock-based compensation |
|
|
4,242 |
|
|
2,257 |
Reserves and accruals |
|
|
1,452 |
|
|
15 |
Deferred lease liability |
|
|
4,856 |
|
|
872 |
Depreciation |
|
|
3 |
|
|
1,503 |
Divisional foreign entity deferred |
|
|
2,137 |
|
|
— |
Other deferred tax assets |
|
|
6,457 |
|
|
2,257 |
Total gross deferred tax asset |
|
|
191,974 |
|
|
113,639 |
Valuation allowance |
|
|
(127,150) |
|
|
(111,494) |
Net deferred tax asset |
|
|
64,824 |
|
|
2,145 |
Deferred tax liabilities: |
|
|
|
|
|
|
Right‑of‑use asset |
|
|
(4,692) |
|
|
(522) |
Intangible assets |
|
|
(68,504) |
|
|
(1,623) |
Depreciation |
|
|
(1,527) |
|
|
— |
Other |
|
|
(796) |
|
|
— |
Total deferred tax liabilities |
|
|
(75,519) |
|
|
(2,145) |
Net deferred tax liability |
|
$ |
(10,695) |
|
$ |
— |
|
| Schedule of changes in the valuation allowance for deferred tax assets |
Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2021 and 2020 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2021 |
|
2020 |
Valuation allowance at beginning of the year |
|
$ |
111,494 |
|
$ |
87,370 |
Increases recorded to income tax provision |
|
|
45,139 |
|
|
25,058 |
Decreases recorded as a benefit to income tax provision |
|
|
(29,483) |
|
|
(934) |
Valuation allowance at end of year |
|
$ |
127,150 |
|
$ |
111,494 |
|
| Schedule of reconciliation unrecognized tax liabilities |
A reconciliation of the beginning and ending amount of unrecognized tax liabilities as of December 31, 2021 and 2020 is as follows (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2021 |
|
2020 |
Unrecognized tax liability, beginning of year |
|
$ |
— |
|
$ |
— |
Unrecognized tax liability acquired through purchase accounting |
|
|
1,005 |
|
|
— |
Gross decreases - foreign exchange translation adjustments |
|
|
(8) |
|
|
— |
Unrecognized tax liability, end of year |
|
$ |
997 |
|
$ |
— |
|