Markforged Holding Corporation General form of registration statement for all companies including face-amount certificate companies

Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

The components of the Company’s loss before income taxes are as follows:

The components of the income tax provision are as follows:

The overall effective tax rate differs from the statutory federal tax rate as follows:


	Year Ended December 31,
	% of Pretax Loss
	2020			2019
Statutory US federal rate		21.00	%		21.00	%
State income taxes		1.85			2.19
Stock-based compensation		(1.06	)		(0.23	)
Nondeductible expenses		(0.61	)		(0.22	)
Global intangible low-taxed income		(0.46	)		(0.06	)
Research & development credits		3.48			2.35
Valuation allowance		(25.18	)		(25.65	)
Change in statutory tax rate		(0.20	)		—
Other rate items		0.24			0.50

Effective tax rate		(0.94	)%		(0.12	)%

Significant components of the Company’s net deferred tax assets are as follows:


	December 31,
(in thousands)	2020			2019
Deferred tax assets
Amortization		23			27
Deferred revenue		318			86
Deferred expenses		280			322
Reserves		560			713
Accrued expenses		453			97
Stock compensation		372			43
Uniform capitalization		45			31
Net operating losses		16,266			13,184
Research and development credits		3,085			2,467
Other state credits		147			141

Gross deferred tax assets	$	21,546		$	17,111
Less: Valuation allowance		(21,507	)		(17,001	)

Deferred tax liabilities
Depreciation		(39	)		(110	)
Unrealized foreign currency loss		(3	)		—

Net deferred tax assets	$	—		$	—

The following table presents the changes in the balance of the Company’s deferred income tax asset valuation allowance:


	Year Ended December 31,
(in thousands)	2020		2019
Balance at beginning of year	$	17,001	$	9,343
Additions charged to expense		4,465		7,658

Balance at end of year	$	21,466	$	17,001