Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.21.1
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of effective income tax rate reconciliation
The following table is a reconciliation of the components that caused our provision for income taxes to differ from amounts computed by applying the United States federal statutory rate of 21% (in thousands):
Years Ended December 31,
2020 2019
Statutory U.S. Federal income tax $ (12,482) 21.0  % $ (38,760) 21.0  %
State income taxes, net (1,720) 2.9  % (818) 0.4  %
LLC income not taxed —  —  % 2,376  (1.3  %)
Loss on acquisitions —  —  % 29,051  (15.7  %)
Change in valuation allowance 8,811  (14.8  %) 7,892  (4.3  %)
Warrant valuation 4,763  (8.0) % 19  —  %
Tax effect of non-deductible warrant expense 2,000  (3.4) % —  —  %
Return to provision adjustment (1,571) 2.6  % —  —  %
Other 199  (0.3) % 240  0.1  %
Total provision $ —  0  % $ —  0  %
Schedule of deferred tax assets and liabilities
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
December 31,
2020 2019
Deferred income tax assets:
Net operating loss carryforwards $ 11,185  $ 8,503 
ROU assets 81  — 
Share-based compensation 5,728  2,493 
Inventory 212  — 
Other assets 2,595  301 
Gross deferred tax assets 19,801  11,297 
Valuation allowance (16,724) (7,913)
Net deferred tax assets $ 3,077  $ 3,384 
Deferred income tax liabilities:
Inventory —  (137)
Operating lease liabilities (79) — 
Intangibles (2,998) (3,247)
Deferred tax assets, net of valuation allowance $ —  $ — 
Summary of valuation allowance
Changes in valuation allowance are as follows (in thousands):
Years Ended December 31,
2020 2019
Valuation allowance, at beginning of year $ 7,913  $ — 
Increase in valuation allowance 8,811  7,892 
Halo Acquisition —  21 
Valuation allowance, at end of year $ 16,724  $ 7,913