Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Effective Income Tax Rate Reconciliation The difference between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax expense (benefit) are summarized as follows:

Year Ended December 31,
2021 2020
Income tax (benefit) at statutory rate $ (11,330) $ (4,661)
Valuation allowance 11,500  4,408 
State income tax (benefit), net of federal benefit (1,978) (330)
Business tax credit net of reserves (190) — 
Non-deductible expenses 2,210  585 
Business combination (437) — 
Foreign income taxes at different rate (201) — 
Income tax (benefit) expense $ (426) $ 2 
Effective tax rate 0.79  % (0.01) %
Provision Expense for Income Taxes The provision expense for income taxes consists of the following:

Year Ended December 31,
2021 2020
Current:
Federal $ —  $ — 
State 11  2 
Foreign —  — 
Total current 11  2 
Deferred:
Federal (416) — 
State (21) — 
Foreign —  — 
Total deferred (437) — 
Total income tax (benefit) expense $ (426) $ 2 
Components of Net Deferred Income Taxes The components of net deferred income taxes consist of the following:

December 31,
2021 2020
Deferred tax assets:
Net operating loss $ 40,922  $ 30,705 
Unrealized loss on digital assets 2,015  — 
Tax credits 1,416  1,193 
Reserves and accruals 732  3,739 
Leases - lease liability 376  — 
Amortization of acquired intangibles 232  — 
Other deferred tax assets 1,748  — 
Gross deferred tax assets 47,441  35,637 
Less valuation allowance (46,163) (35,100)
Total deferred tax assets 1,278  537 
Deferred tax liabilities:
Amortization of acquired intangibles —  (537)
Leases - right of use asset (306) — 
Other deferred tax liabilities (972) — 
Total deferred tax liabilities (1,278) (537)
Net deferred tax liabilities $ —  $ — 
Reconciliation of Unrecognized Tax Benefits The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

December 31,
2021 2020
Unrecognized tax benefits, beginning of period $ 1,314  $ 1,531 
Tax positions taken in prior periods:
Gross increases —  69 
Gross decreases —  (297)
Tax positions taken in current period:
Gross increases 231  11 
Settlements —  — 
Lapse of statute of limitations —  — 
Unrecognized tax benefits, end of period $ 1,545  $ 1,314