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]  
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 are as follows:

2021 2020 2019
Current
Federal $ —  $ —  $ — 
State $ 207  $ 16  $ — 
Foreign $ 26  $ —  $ — 
Total current income taxes $ 233  $ 16  $ — 
Deferred
Federal $ —  $ —  $ —  $ —  $ — 
State $ —  $ —  $ —  $ —  $ — 
Foreign $ —  $ —  $ —  $ —  $ — 
Total deferred income taxes $ —  $ —  $ —  $ —  $ — 
Income tax expense (benefit) $ 233  $ 16  $ — 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2021, 2020 and 2019, is as follows:

2021 2020 2019
Tax expense (benefit) at U.S. statutory rate 21.0  % 21.0  % 21.0  %
Effect of flow-through entity (9.4) % (21.0) % (21.0) %
State taxes 2.0  % 0.3  % 0.7  %
Remeasurement of state tax 0.0  % 0.5  % 0.0  %
Permanent differences 0.0  % (2.2) % (0.3) %
Non-controlling interest (5.4) % 0.0  % 0.0  %
Change in valuation allowance (8.0) % 1.2  % (0.4) %
Other (0.4) % 0.0  % 0.0  %
Effective income tax rate (0.2) % (0.2) % 0.0  %
Schedule of Deferred Tax Assets and Liabilities The components of the deferred tax assets and liabilities for the years ended December 31, 2021, 2020 and 2019 are as follows:
Deferred Taxes 2021 2020 2019
Deferred rent $ 11  $ 13  $ 26 
Accrued expenses — 
Stock-based compensation 111  —  — 
Investment in partnership 148,797  —  — 
Other 720 
Net operating loss 28,460  333  442 
Gross deferred tax assets 178,106  355  471 
Depreciation and amortization (5,486) (131) (147)
Prepaid expenses and other (31) (20) (24)
Gross deferred tax liabilities (5,517) (151) (171)
Deferred income tax assets before valuation allowance 172,589  204  300 
Valuation allowance (176,381) (204) (300)
Net deferred tax asset (liability) $ (3,792) $   $  
Schedule of Valuation Allowance
In 2021 and in 2020, the total valuation allowance for the Company increased significantly primarily due to increases in net operating losses and investment in partnership for which it was more likely than not that the benefits of these items will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The estimation of future taxable income and our ability to utilize deferred tax assets can significantly change based on future events.
2021 2020
Balance as of January 1 $ 204  $ 300 
Additions to valuation allowance through income tax expense 9,159  — 
Additions to valuation allowance through equity 166,919  — 
Additions to valuation allowance through goodwill 99  — 
Release of valuation allowance through income tax expense —  (96)
Balance as of December 31 $ 176,381  $ 204