Note 15. Income Taxes The amount of loss before taxes from continuing operations is as follows: Year Ended December 31, 2021 2020 U.S. loss before taxes (58,928) (88,360) Foreign income before taxes 459 368 Loss before income taxes (58,469) (87,992) The components of the provision for income taxes are presented in the following table: Year Ended December 31, 2021 2020 Current: Federal $ — $ (13) State 89 170 Foreign 68 66 Total current provision 157 223 Deferred: Federal (2) (80) State (45) 46 Foreign (13) (3) Total deferred benefit (60) (37) Less: (Benefit from) provision for income taxes from discontinued operations, net — (261) Provision for (benefit from) income taxes from continuing operations, net $ 97 $ 447 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax loss as a result of the following differences: Year Ended December 31, 2021 2020 United States federal tax at statutory rate 21.00 % 21.00 % Items affecting federal income tax rate: State tax, net of federal benefit 6.51 % 3.44 % Valuation allowance (37.34)% (23.07)% R&D Credit 9.47 % — % NOL Expiration (1.69)% (0.41)% Other adjustments 1.89 % (1.47)% Effective income tax rate (0.16)% (0.51)% On June 29, 2020, the state of California enacted Assembly Bill No. 85 ("AB 85") suspending California net operating loss utilization and imposing a cap on the amount of business incentive tax credits companies can utilize, effective for tax years 2020, 2021 and 2022. There was no material impact from the provisions of AB 85 for the years ended December 31, 2021 and 2020. As of December 31, 2021 and 2020, the Company had an immaterial amount of unremitted earnings related to certain foreign subsidiaries. The Company intends to continue to reinvest its foreign earnings indefinitely and does not expect to incur any significant taxes related to such amounts. NantHealth, Inc. Notes to Consolidated Financial Statements (Dollars in thousands, except per share amounts) - 127 -
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