Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Income Taxes by Tax Jurisdiction
Income (loss) before income taxes by tax jurisdiction consists of the following for the periods shown below (in thousands):
Years Ended December 31,
2022 2021 2020
United States $ (27,615) $ 25,181  $ 8,738 
Foreign 3,997  (14,702) 2,398 
Total income (loss) $ (23,618) $ 10,479  $ 11,136 
Schedule of Provision for (Benefit from) Current and Deferred Income Taxes
Provision for (benefit from) current and deferred income taxes consists of the following for the periods shown below (in thousands):
Years Ended December 31,
2022 2021 2020
Current tax expense:
Federal $ (422) $ 959  $ 945 
State (314) 731  297 
Foreign 2,632  396  791 
Total current tax expense $ 1,896  $ 2,086  $ 2,033 
Deferred tax expense:
Federal $ (6,818) $ 1,443  $ (3,045)
State 197  (404) (748)
Foreign (1,110) (3,383) 89 
Total deferred tax expense $ (7,731) $ (2,344) $ (3,704)
Income tax benefit $ (5,835) $ (258) $ (1,671)
Schedule of Difference Between the Actual Rate and the Federal Statutory Rate The difference between the actual rate and the federal statutory rate is as follows:
Years Ended December 31,
2022 2021 2020
Statutory rate 21.0  % 21.0  % 21.0  %
Foreign provision —  0.6  (0.3)
State/province income tax 5.8  4.0  0.1 
Stock compensation 8.9  (1.6) (19.2)
Unrecognized tax benefits 0.9  8.9  — 
Other effects of check-the-box election —  —  (6.2)
Research credit 3.5  (11.0) (11.5)
Adjustment to carrying value 0.8  1.5  (4.0)
Foreign tax credit (10.2) (4.6) (9.1)
Valuation allowance (3.6) 3.2  9.0 
Foreign-derived intangible income deduction (FDII) 0.3  —  (2.7)
Global intangible low taxed income (GILTI) (0.5) —  — 
Non-deductible expenses-other (2.3) 3.4  2.4 
Foreign branch income (3.5) 1.3  4.5 
Foreign tax deduction 2.4  —  — 
Fair value adjustment on warrants 0.9  (27.9) — 
Other 0.2  (1.3) 1.0 
Effective tax rate 24.6  % (2.5) % (15.0) %
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consist of the following (in thousands):
December 31,
2022 2021
Deferred tax assets:
Net operating loss carryforwards $ 8,704  $ 10,384 
Tax credit carryforwards 3,213  4,929 
Accrued liabilities 1,308  785 
Stock compensation 4,712  2,221 
Charitable contribution 651  697 
Deferred rent —  41 
Operating lease assets and lease liabilities, net 181  — 
Other —  89 
Total gross deferred tax assets $ 18,769  $ 19,146 
Less: Valuation allowance (2,191) (1,334)
Total deferred tax assets $ 16,578  $ 17,812 
Deferred tax liabilities:
Intangibles 373  176 
Property and equipment 748  10,189 
Prepaid expenses 1,031  1,165 
Other 457  — 
Total deferred tax liabilities $ 2,609  $ 11,530 
Deferred tax assets (liability), net $ 13,969  $ 6,282 
Schedule of Deferred Tax Asset Valuation Allowances
The following is a tabular reconciliation of the total amounts of deferred tax asset valuation allowance:
Years Ended December 31,
2022 2021 2020
Balance at beginning of period $ 1,334  $ 1,002  $ — 
Increase 2,191  332  1,002 
Decrease (1,334) —  — 
Balance at end of period $ 2,191  $ 1,334  $ 1,002 
Schedule of Unrecognized Tax Benefits Roll Forward
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
Years Ended December 31,
2022 2021 2020
Balance at beginning of period $ 637  $ —  $ — 
Increases for tax positions of prior years 313  609  — 
Increases for tax positions of current year —  148  — 
Decreases for tax positions of prior years —  —  — 
Settlements (183) (120) — 
Decreases for lapses in statute of limitations (234) $ —  $ — 
Balance at end of period $ 533  $ 637  $ —