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

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Income Tax Benefits Due to the Losses Incurred

During the years ended December 31, 2021 and 2020, the Company recorded no income tax benefits due to the losses incurred and the uncertainty of future taxable income. For financial reporting purposes, net loss before income taxes, includes the following components:


	Years Ended December 31,
	2021			2020
	(in thousands)
Domestic	$	(153,426	)	$	(57,638	)
Foreign		104			45
Total	$	(153,322	)	$	(57,593	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected income tax (benefit) computed using the federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Years Ended December 31,
	2021			2020
Federal statutory rate%		21.0	%		21.0	%
State rate, net of federal benefit%		7.5	%		4.1	%
Change in valuation allowance%		(28.0	)%		(30.0	)%
Tax credits generated%		3.3	%		5.9	%
Stock-based compensation%		(2.6	)%		(2.1	)%
Warrant revaluation%		1.5	%		1.4	%
Permanent differences%		(2.5	)%		(0.2	)%
Other Items		(0.3	)%		0.0	%
Effective tax rate%		(0.1	)%		0.1	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following:


	Years Ended December 31,
	2021			2020
	(in thousands)
Federal and state net operating carryforwards	$	70,569		$	36,988
Research and development and other credits		13,046			8,000
Stock-based compensation		1,742			240
Deferred revenue		—			228
Other		4,359			1,262
Gross deferred tax assets		89,716			46,718
Valuation allowance		(89,633	)		(46,722	)
Net deferred tax assets	$	83		$	(4	)