Joby Aviation, 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 the Components of Loss Before Taxes

The components of loss before taxes are as follows (in thousands):


	Year Ended December 31,
	2021			2020
United States	$	(184,183	)	$	(114,010	)
International		(6,678	)		(123	)
Loss before income taxes	$	(190,861	)	$	(114,133	)

Schedule of Provision For Income Taxes

The provision for income taxes is as follows (in thousands):


	Year Ended December 31,
	2021			2020
Current
Federal	$	—		$	—
State		1			24
Foreign		6			7
Total current provision		7			31
Deferred
Federal		(7,917	)		—
State		(2,627	)		—
Total deferred benefit		(10,544	)		—
Total provision (benefit)	$	(10,537	)	$	31

Schedule of Effective Tax Rate Reconciliation

A reconciliation of the statutory U.S. federal rate to the Company’s effective tax rate is as follows (dollars in thousands):


	Year Ended December 31,
	2021			2020
	%			%
Tax at federal statutory rate		(21.0	)%		(21.0	)%
State taxes, net of federal benefit		(7.3	)%		(6.7	)%
Permanent differences		(0.1	)%		0.2	%
Change in valuation allowance		27.9	%		32.5	%
Tax credits		(5.0	)%		(5.0	)%
Effective income tax rate		(5.5	)%		0.0	%

Schedule of Deferred Income Tax Assets

Significant components of the Company’s net deferred tax assets as of December 31, 2021 and 2020 (in thousands):


	December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	124,591		$	72,785
Research and development credits		22,995			13,499
Accruals and reserves		518			493
Property and equipment		1,362			811
Stock-based compensation		4,651			649
Goodwill		3,819			—
Intangibles		355			—
Total deferred tax assets		158,291			88,237
Valuation allowance		(141,618	)		(88,237	)
Net deferred tax assets		16,673			—
Deferred tax liabilities
Contractual agreement		(16,673	)		—
Total deferred tax liabilities		(16,673	)		—
Net deferred tax assets	$	—		$	—

In connection with the acquisition of Uber Elevate on January 11, 2021, a deferred tax liability was established for the book versus tax basis difference associated with the contractual agreement asset (see Note 5). This deferred tax liability created an additional source of income to realize the Company's deferred tax assets. As the Company continues to maintain a full valuation allowance against its net deferred tax assets, this additional source of income resulted in a corresponding release of the Company’s previously recorded valuation allowance against its net deferred tax assets. Consistent with the applicable guidance, this release of the valuation allowance was recorded in the consolidated statements of operations as an income tax benefit.

Schedule of the Changes in the Gross Amount of Unrecognized Tax Benefits

The following shows the changes in the gross amount of unrecognized tax benefits as follows (in thousands):


	December 31,
	2021		2020
Unrecognized tax benefits, beginning of the year	$	4,995	$	2,872
Increases related to prior year tax positions		3,523		—
Decreases related to prior year tax positions		—		—
Increases related to current year tax positions		—		2,123
Unrecognized tax benefits, end of year	$	8,518	$	4,995