Axogen, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Differences Between the Carrying Amount of Assets and Liabilities for Financial Reporting Purposes and Their Respective Income Tax Basis

Deferred income taxes are accounted for using the balance sheet approach, which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as measured by enacted state and federal tax rates. Deferred tax assets and deferred tax liabilities are as follows:


(in thousands)	December 31, 2021		December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	47,021	$	42,317
Inventory write-down	653		397
Depreciation			—

Interest limitation	453		115
Allowance for doubtful accounts	70		106
Lease obligations	5,736		5,551
Stock-based compensation	3,985		3,218
Research and development credit	6		—
Total deferred tax assets	57,924		51,704
Deferred tax liabilities:
Depreciation	(692)		(1,145)
Amortization	(116)		(34)
Right-of-use assets	(3,861)		(4,004)
Contract liabilities	(4)		(4)
Total deferred tax liabilities	(4,673)		(5,187)
Net deferred tax assets	$	53,251	$	46,517
Valuation allowance	$	(53,251)	$	(46,517)

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate differs from the statutory federal income tax rate for the years ended December 31, 2021, 2020 and 2019 as follows:


	Year Ended December 31,
	2021		2020		2019
Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes - net of Federal benefit	5.1		7.3		4.1
Permanent items and other deductions	(1.4)		(0.6)		(4.3)
Valuation allowance	(24.7)		(27.7)		(20.8)
Effective income tax rate	—	%	—	%	—	%