Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
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,
2023 2022 2021
United States $ (7,749) $ (27,615) $ 25,181 
Foreign 5,229  3,997  (14,702)
Total income (loss) $ (2,520) $ (23,618) $ 10,479 
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,
2023 2022 2021
Current tax expense:
Federal $ 55  $ (422) $ 959 
State 559  (314) 731 
Foreign 3,861  2,632  396 
Total current tax expense $ 4,475  $ 1,896  $ 2,086 
Deferred tax expense:
Federal $ 9,234  $ (6,818) $ 1,443 
State 3,643  197  (404)
Foreign (479) (1,110) (3,383)
Total deferred tax expense $ 12,398  $ (7,731) $ (2,344)
Income tax expense (benefit) $ 16,873  $ (5,835) $ (258)
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,
2023 2022 2021
Statutory rate 21.0  % 21.0  % 21.0  %
Foreign provision 6.6  —  0.6 
State/province income tax (3.7) 5.8  4.0 
Stock compensation 43.6  8.9  (1.6)
Unrecognized tax benefits 11.1  0.9  8.9 
Research credit 14.8  3.5  (11.0)
Return to provision
 (15.3) 0.8  1.5 
Other foreign branch impacts
 (16.7) (10.2) (4.6)
Valuation allowance (643.4) (3.6) 3.2 
Foreign-derived intangible income deduction (FDII) 1.2  0.3  — 
Global intangible low taxed income (GILTI) (2.8) (0.5) — 
Non-deductible expenses-other (30.7) (2.3) 3.4 
Foreign branch income (43.6) (3.5) 1.3 
Foreign tax deduction 23.8  2.4  — 
Fair value adjustment on warrants 25.2  0.9  (27.9)
Foreign tax settlement
 (60.6) —  — 
Other (0.2) 0.2  (1.3)
Effective tax rate (669.7) % 24.6  % (2.5) %
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consist of the following (in thousands):
December 31,
2023 2022
Deferred tax assets:
Net operating loss carryforwards $ 5,770  $ 8,704 
Tax credit carryforwards 1,953  3,213 
Accrued liabilities 955  1,308 
Stock compensation 5,826  4,712 
Charitable contribution 509  651 
Intangibles
 852  — 
Property and equipment 5,288  — 
Operating lease liabilities 2,425  4,672 
Total gross deferred tax assets $ 23,578  $ 23,260 
Less: Valuation allowance (18,300) (2,191)
Total deferred tax assets $ 5,278  $ 21,069 
Deferred tax liabilities:
Intangibles —  373 
Property and equipment —  748 
Prepaid expenses 1,159  1,031 
Operating lease assets 2,282  4,491 
Other 271  457 
Total deferred tax liabilities $ 3,712  $ 7,100 
Deferred tax assets (liability), net $ 1,566  $ 13,969 
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,
2023 2022 2021
Balance at beginning of period $ 533  $ 637  $ — 
Increases for tax positions of prior years 75  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 (261) $ (234) $ — 
Balance at end of period $ 347  $ 533  $ 637