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 Loss from Operations Before Benefit for Income Taxes
The Company’s loss from operations before benefit for income taxes for the years ended December 31, 2023 and 2022 consisted of the following:

For the Year Ended December 31,
(in thousands) 2023 2022
United States $ (140,821) $ (92,021)
Foreign (30,379) (24,596)
Total loss before income taxes $ (171,200) $ (116,617)
Schedule of Components of the Benefit from Income Taxes
The components of the benefit from income taxes consisted of the following:
For the Year Ended December 31,
(in thousands) 2023 2022
Current:
Federal $ 5,788  $ 4,309 
State 743  905 
Foreign 723  558 
Total current provision $ 7,254  $ 5,772 
Deferred:
Federal (8,580) (9,336)
State (946) (4,455)
Foreign (1,886) (2,398)
Total deferred benefit (11,412) (16,189)
Total income tax benefit $ (4,158) $ (10,417)
Schedule of Reconciliation Between Income Taxes Computed at the U.S. Statutory Income Tax Rate
The reconciliation between income taxes computed at the U.S. statutory income tax rate to the Company’s benefit from income taxes for the years ended December 31, 2023 and 2022 is set forth in the table below as follows:

For the Year Ended December 31,
(in thousands) 2023 2022
Benefit for income taxes at 21% rate $ (35,952) 21.0  % $ (24,490) 21.0  %
State taxes, net of federal benefit (2,123) 1.2  % (1,358) 1.2  %
Change in valuation allowance 16,889  (9.9) % 10,628  (9.1) %
Rate change (44) 0.0  % (1,687) 1.4  %
Credits (544) 0.3  % (604) 0.5  %
Permanent differences and other 1,440  (0.7) % (2,712) 2.2  %
Revaluation of warrants 1,352  (0.8) % (53) 0.0  %
Uncertain tax positions 1,580  (0.9) % 591  (0.5) %
Foreign withholding tax 148  (0.1) % 134  (0.1) %
Foreign rate differential (1,725) 1.0  % (2,120) 1.8  %
Executive compensation expense 634  (0.4) % 872  (0.7) %
Transaction related expense —  0.0  % 210  (0.2) %
Global intangible low taxed income 314  (0.2) % 283  (0.2) %
Foreign derived intangible income —  0.0  % (311) 0.3  %
Goodwill impairment 13,873  (8.1) % 10,200  (8.7) %
Benefit for income taxes $ (4,158) 2.4  % $ (10,417) 8.9  %
Schedule of Deferred Income Taxes
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2023 and 2022 are set forth as follows:
December 31,
(in thousands) 2023 2022
Deferred tax assets:
Net operating loss carry-forward $ 17,221  $ 13,617 
Credit carryforward 1,325  1,386 
Interest expense limitation carryforward 21,978  15,844 
Non-deductible reserves 1,571  339 
Accruals and other temporary differences 2,622  2,835 
Stock compensation 1,665  1,164 
Capitalized R&D Costs 2,301  — 
Lease liability 2,745  2,780 
Property and equipment 1,849  1,007 
Gross deferred tax assets $ 53,277  $ 38,972 
Less: valuation allowance (33,454) (16,177)
Total deferred tax assets (after valuation allowance) $ 19,823  $ 22,795 
Deferred tax liabilities:
Property and equipment (1,442) (1,738)
Intangible assets (22,193) (33,117)
Goodwill (3,569) (5,914)
Change in accounting method (719) (1,378)
Right-of-use asset (2,357) (2,514)
Research and development costs (3,338) (3,327)
Total deferred tax liabilities $ (33,618) $ (47,988)
Net deferred tax liabilities $ (13,795) $ (25,193)
Schedule of Gross Unrecognized Tax Benefits
The following table sets forth a reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, included in accrued liabilities and other noncurrent liabilities in the Company’s consolidated balance sheets:

(in thousands) December 31, 2023 December 31, 2022
Unrecognized tax benefits as of the beginning of the year $ 8,574  $ 8,132 
Additions for tax positions of current year 192  442 
Unrecognized tax benefits as of the end of the year $ 8,766  $ 8,574