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]  
Schedule of Current Provision for Income Taxes

Current provision for income taxes consists of the following:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

State

 

$

-

 

 

$

-

 

 

$

103

 

Foreign

 

 

2,500

 

 

 

-

 

 

 

-

 

Total current provision for income taxes

 

$

2,500

 

 

$

-

 

 

$

103

 

 

Schedule of Effective Tax Rate of Provision (Benefit) for Income Taxes

The effective tax rate of the Company’s provision (benefit) for income taxes differs from the federal statutory rate as follows:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Federal statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State tax

 

 

-

 

 

 

-

 

 

 

(0.1

)

Change in valuation allowance

 

 

(26.2

)

 

 

(24.7

)

 

 

(34.7

)

Tax credits

 

 

5.1

 

 

 

3.7

 

 

 

9.3

 

Stock compensation

 

 

(3.2

)

 

 

(0.2

)

 

 

(1.9

)

Foreign withholding

 

 

(2.1

)

 

 

-

 

 

 

-

 

Other

 

 

3.3

 

 

 

0.2

 

 

 

6.1

 

Total

 

 

(2.1

)%

 

 

0

%

 

 

(0.3

)%

Schedule of Components of Deferred Tax Assets

The components of the Company’s deferred tax assets consist of the following:

 

 

December 31

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

60,952

 

 

$

67,719

 

Research and development credits

 

 

40,396

 

 

 

31,864

 

Capatalized research and development expenditure

 

 

24,481

 

 

 

-

 

Accruals and other

 

 

3,849

 

 

 

3,973

 

Operating lease liability

 

 

7,471

 

 

 

7,266

 

Stock based compensation

 

 

4,562

 

 

 

3,910

 

Fixed asset basis

 

 

663

 

 

 

1,008

 

Total deferred tax assets

 

 

142,374

 

 

 

115,740

 

Less: valuation allowance

 

 

(131,228

)

 

 

(100,646

)

Gross deferred tax assets

 

 

11,146

 

 

 

15,094

 

Deferred tax liabilities:

 

 

 

 

 

 

Operating lease right-of-use asset

 

 

(5,783

)

 

 

(6,716

)

Vaxcyte investment

 

 

(5,363

)

 

 

(8,378

)

Total deferred tax liabilities

 

 

(11,146

)

 

 

(15,094

)

Total net deferred tax assets

 

$

-

 

 

$

-

 

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

 

 

December 31

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Gross unrecognized tax benefit at January 1

 

$

6,409

 

 

$

4,902

 

 

$

3,783

 

Additions for tax positions taken in the current year

 

 

2,255

 

 

 

1,492

 

 

 

1,090

 

Additions / (Reductions) for tax positions of prior years

 

 

(15

)

 

 

15

 

 

 

29

 

Gross unrecognized tax benefit at December 31

 

$

8,649

 

 

$

6,409

 

 

$

4,902