General form of registration statement for all companies including face-amount certificate companies

Provision for Income Taxes (Tables)

v3.22.2
Provision for Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Summary of effective income tax rate reconciliation
The Company’s effective income tax rate reconciliation is composed of the following for the periods presented:
 
    
Years Ended December 31,
 
    
2019
   
2020
   
2021
 
Federal statutory rate
     21.0     21.0     21.0
Change in valuation allowance
     (19.5 )%      (19.5 )%      (20.2 )% 
Stock-based compensation
     (1.4 )%      (1.7 )%      (0.6 )% 
Other
     (0.1 )%      (0.2 )%      (0.2 )% 
    
 
 
   
 
 
   
 
 
 
Provision for income taxes
            
    
 
 
   
 
 
   
 
 
 
Summary of components of net deferred tax assets
The components of net deferred tax assets are as follows (in thousands):
 
    
December 31,
 
    
2020
    
2021
 
Deferred tax assets:
                 
Net operating loss carryforwards
   $ 69,486      $ 95,311  
Deferred revenue
     2,532        2,665  
Inventory reserve and uniform capitalization
     2,067        2,795  
Operating lease liabilities
     6,042        5,576  
Accruals and other reserves
     1,794        1,908  
Stock-based compensation
     240        4,339  
Other
     1,637        3,103  
    
 
 
    
 
 
 
Total deferred tax assets
     83,798        115,697  
Less: valuation allowance
     75,061        107,300  
    
 
 
    
 
 
 
Total deferred tax assets, net of valuation allowance
     8,737        8,397  
    
 
 
    
 
 
 
Deferred tax liabilities:
                 
Operating lease
right-of-use
assets
     (5,518      (5,017
Depreciation and amortization
     (3,219      (3,380
    
 
 
    
 
 
 
Total deferred tax liabilities
     (8,737      (8,397
    
 
 
    
 
 
 
Net deferred tax assets
   $      $  
    
 
 
    
 
 
 
Summary of valuation allowances on deferred tax assets
The following summarizes the activity related to valuation allowances on deferred tax assets:
 
    
December 31,
 
    
2020
    
2021
 
Valuation allowance, as of beginning of year
   $ 59,634      $ 75,061  
Valuation allowance established
     15,499        32,511  
Changes to existing valuation allowances
     (72      (272
    
 
 
    
 
 
 
Valuation allowance, as of end of year
   $ 75,061      $ 107,300  
    
 
 
    
 
 
 
Summary of unrecognized tax benefits
The Company’s unrecognized tax benefits are as follows (in thousands):
 
    
December 31,
 
    
2020
    
2021
 
Balance at beginning of year
   $ 530      $ 35  
Decrease related to prior period tax positions
     (505      —    
Increase related to current year tax positions
     10        5  
    
 
 
    
 
 
 
Balance at end of year
   $ 35      $ 40