Provision for Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Loss Before Provision for Income Taxes |
The components of the Company’s loss before the provision for income taxes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
United States of America |
|
$ |
(32,298 |
) |
|
$ |
(18,309 |
) |
Foreign |
|
|
(29,375 |
) |
|
|
(4,939 |
) |
Total |
|
$ |
(61,673 |
) |
|
$ |
(23,248 |
) |
|
| Schedule of Provision for Income Taxes |
The provision for income taxes consisted of the following for the years ended December 31, 2023 and 2022:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Current |
|
|
|
|
|
|
Federal |
|
$ |
(113 |
) |
|
$ |
1,001 |
|
State |
|
|
537 |
|
|
|
384 |
|
Foreign |
|
|
1,512 |
|
|
|
2,486 |
|
Total current provision |
|
|
1,936 |
|
|
|
3,871 |
|
|
|
|
|
|
|
|
Deferred |
|
|
|
|
|
|
Federal |
|
|
(7,441 |
) |
|
|
723 |
|
State |
|
|
(1,161 |
) |
|
|
779 |
|
Foreign |
|
|
(3,757 |
) |
|
|
(2,331 |
) |
|
|
|
|
|
|
|
Change in valuation allowance |
|
|
7,375 |
|
|
|
(733 |
) |
Total deferred benefit |
|
|
(4,984 |
) |
|
|
(1,562 |
) |
Total provision for income taxes |
|
$ |
(3,048 |
) |
|
$ |
2,309 |
|
|
| Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax Rate |
A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2023 and 2022 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Tax, computed at the federal statutory rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
State taxes, net of federal tax benefit |
|
|
0.32 |
|
|
|
0.75 |
|
Impact of foreign operations |
|
|
(6.90 |
) |
|
|
(32.93 |
) |
Research and development credits |
|
|
3.75 |
|
|
|
5.74 |
|
Stock-based compensation |
|
|
(2.15 |
) |
|
|
(13.57 |
) |
Contingent consideration revaluation |
|
|
(0.22 |
) |
|
|
22.86 |
|
Other |
|
|
(0.96 |
) |
|
|
(0.49 |
) |
Change in valuation allowance |
|
|
(9.90 |
) |
|
|
(13.29 |
) |
(Provision for) benefit from income taxes |
|
|
4.94 |
% |
|
|
(9.93 |
)% |
|
| Components of Deferred Income Tax Assets and Liabilities |
The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2023 and 2022 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Net operating loss carryforwards |
|
$ |
49,757 |
|
|
$ |
44,512 |
|
Stock-based compensation |
|
|
20,026 |
|
|
|
19,722 |
|
Accrued expenses |
|
|
410 |
|
|
|
289 |
|
Capital loss Carryforward |
|
|
5,341 |
|
|
|
- |
|
Capitalized research and development |
|
|
13,915 |
|
|
|
10,318 |
|
Lease liability |
|
|
437 |
|
|
|
884 |
|
Research credits |
|
|
8,791 |
|
|
|
6,617 |
|
Other |
|
|
1,680 |
|
|
|
1,246 |
|
Total gross deferred tax assets |
|
|
100,357 |
|
|
|
83,588 |
|
Valuation allowance |
|
|
(93,768 |
) |
|
|
(81,051 |
) |
Total deferred tax assets (1) |
|
|
6,589 |
|
|
|
2,537 |
|
|
|
|
|
|
|
|
Right of use assets |
|
|
(179 |
) |
|
|
(408 |
) |
Unremitted foreign earnings |
|
|
- |
|
|
|
(1,012 |
) |
Other |
|
|
(483 |
) |
|
|
(166 |
) |
fixed assets |
|
|
(834 |
) |
|
|
(269 |
) |
Intangible assets and goodwill |
|
|
(14,597 |
) |
|
|
(11,331 |
) |
Total deferred tax liabilities |
|
|
(16,093 |
) |
|
|
(13,186 |
) |
Net deferred tax liabilities |
|
$ |
(9,504 |
) |
|
$ |
(10,649 |
) |
(1) $1,050 of deferred tax assets related to research costs at December 31, 2022 were reclassified to conform to the current year presentation.
|
| Summary of Valuation Allowance |
The change in the valuation allowance for the years ended December 31, 2023 and 2022 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Valuation allowance, at beginning of year |
|
$ |
81,051 |
|
|
$ |
81,784 |
|
Increase in valuation allowance from Broadbean acquisition |
|
|
5,204 |
|
|
|
- |
|
Increase (decrease) recognized in other comprehensive income (loss) |
|
|
138 |
|
|
|
- |
|
Increase (decrease) recognized in tax provision |
|
|
7,375 |
|
|
|
(733 |
) |
Valuation allowance, at end of year |
|
$ |
93,768 |
|
|
$ |
81,051 |
|
|
| Schedule of Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the unrecognized tax benefits from January 1, 2022 to December 31, 2023 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Unrecognized tax benefits as of January 1 |
|
$ |
1,650 |
|
|
$ |
1,111 |
|
Gross increase related to the acquisition of Broadbean |
|
|
3,326 |
|
|
|
— |
|
Gross increase for tax positions for prior year |
|
|
125 |
|
|
|
— |
|
Gross decrease for tax positions for prior year |
|
|
— |
|
|
|
(2 |
) |
Gross increase for tax positions of current year |
|
|
1,772 |
|
|
|
541 |
|
Unrecognized tax benefits balance at December 31 |
|
$ |
6,873 |
|
|
$ |
1,650 |
|
|