Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Current Provision for Income Taxes

Current provision for income taxes consists of the following:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Federal

 

$

16,646

 

 

$

-

 

 

$

-

 

State

 

 

603

 

 

 

-

 

 

 

-

 

Foreign

 

 

943

 

 

 

2,500

 

 

 

-

 

Total current provision for income taxes

 

$

18,192

 

 

$

2,500

 

 

$

-

 

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,

 

 

 

2023

 

 

2022

 

 

2021

 

Federal statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State tax

 

 

(0.6

)

 

 

-

 

 

 

-

 

Change in valuation allowance

 

 

(41.2

)

 

 

(26.2

)

 

 

(24.7

)

Tax credits

 

 

(0.7

)

 

 

5.1

 

 

 

3.7

 

Stock compensation

 

 

(3.2

)

 

 

(3.2

)

 

 

(0.2

)

Foreign-Derived Intangible Income deduction

 

 

1.5

 

 

 

-

 

 

 

-

 

Foreign withholding

 

 

(1.1

)

 

 

(2.1

)

 

 

-

 

Other

 

 

3.7

 

 

 

3.3

 

 

 

0.2

 

Total

 

 

(20.6

)%

 

 

(2.1

)%

 

 

0

%

Schedule of Components of Deferred Tax Assets

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

 

 

December 31

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

37,231

 

 

$

60,952

 

Research and development credits

 

 

32,800

 

 

 

40,396

 

Capitalized research and development expenditure

 

 

46,260

 

 

 

24,481

 

Deferred royalty obligation

 

 

31,944

 

 

 

-

 

Deferred revenue

 

 

15,274

 

 

 

-

 

Accruals and other

 

 

5,309

 

 

 

3,849

 

Operating lease liability

 

 

6,335

 

 

 

7,471

 

Stock based compensation

 

 

5,613

 

 

 

4,562

 

Fixed asset basis

 

 

-

 

 

 

663

 

Total deferred tax assets

 

 

180,766

 

 

 

142,374

 

Less: valuation allowance

 

 

(167,693

)

 

 

(131,228

)

Gross deferred tax assets

 

 

13,073

 

 

 

11,146

 

Deferred tax liabilities:

 

 

 

 

 

 

Operating lease right-of-use asset

 

 

(4,887

)

 

 

(5,783

)

Fixed asset basis

 

 

(809

)

 

 

-

 

Vaxcyte investment

 

 

(7,377

)

 

 

(5,363

)

Total deferred tax liabilities

 

 

(13,073

)

 

 

(11,146

)

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

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Gross unrecognized tax benefit at January 1

 

$

8,649

 

 

$

6,409

 

 

$

4,902

 

Additions for tax positions taken in the current year

 

 

2,631

 

 

 

2,255

 

 

 

1,492

 

Additions / (Reductions) for tax positions of prior years

 

 

(2,550

)

 

 

(15

)

 

 

15

 

Gross unrecognized tax benefit at December 31

 

$

8,730

 

 

$

8,649

 

 

$

6,409