INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| 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, 2024 and 2023 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
| (in thousands) |
2024 |
|
2023 |
| United States |
$ |
(108,848) |
|
|
$ |
(140,821) |
|
| Foreign |
(43,165) |
|
|
(30,379) |
|
| Total loss before income taxes |
$ |
(152,013) |
|
|
$ |
(171,200) |
|
|
| Schedule of Components of the Benefit from Income Taxes |
The components of the provision (benefit) from income taxes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
| (in thousands) |
2024 |
|
2023 |
| Current: |
|
| Federal |
$ |
3,488 |
|
|
$ |
5,788 |
|
| State |
402 |
|
|
743 |
|
| Foreign |
282 |
|
|
723 |
|
| Total current provision |
$ |
4,172
|
|
|
$ |
7,254
|
|
| Deferred: |
|
|
|
| Federal |
(5,779) |
|
|
(8,580) |
|
| State |
(902) |
|
|
(946) |
|
| Foreign |
(3,428) |
|
|
(1,886) |
|
| Total deferred benefit |
(10,109) |
|
|
(11,412) |
|
| Total income tax benefit |
$ |
(5,937) |
|
|
$ |
(4,158) |
|
|
| 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, 2024 and 2023 is set forth in the table below as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
| (in thousands) |
2024 |
|
2023 |
| Benefit for income taxes at 21% rate |
$ |
(31,923) |
|
|
21.0 |
% |
|
$ |
(35,952) |
|
|
21.0 |
% |
| State taxes, net of federal benefit |
(1,621) |
|
|
1.0 |
% |
|
(2,123) |
|
|
1.2 |
% |
| Change in valuation allowance |
11,917 |
|
|
(7.8) |
% |
|
16,889 |
|
|
(9.9) |
% |
| Rate change |
(301) |
|
|
0.2 |
% |
|
(44) |
|
|
— |
% |
| Credits |
(544) |
|
|
0.4 |
% |
|
(544) |
|
|
0.3 |
% |
| Permanent differences and other |
(654) |
|
|
0.4 |
% |
|
(254) |
|
|
0.2 |
% |
| Revaluation of warrants |
(848) |
|
|
0.6 |
% |
|
1,352 |
|
|
(0.8) |
% |
| Uncertain tax positions |
1,591 |
|
|
(1.0) |
% |
|
1,580 |
|
|
(0.9) |
% |
| Foreign withholding tax |
118 |
|
|
(0.1) |
% |
|
148 |
|
|
(0.1) |
% |
| Foreign rate differential |
(1,971) |
|
|
1.2 |
% |
|
(1,725) |
|
|
1.0 |
% |
| Executive compensation expense |
393 |
|
|
(0.3) |
% |
|
113 |
|
|
(0.1) |
% |
| Global intangible low taxed income |
— |
|
|
— |
% |
|
314 |
|
|
(0.2) |
% |
| Goodwill impairment |
11,666 |
|
|
(7.7) |
% |
|
13,873 |
|
|
(8.1) |
% |
| Stock-based compensation |
1,774 |
|
|
(1.2) |
% |
|
1,684 |
|
|
(0.9) |
% |
| Preferred stock dividend |
4,466 |
|
|
(2.9) |
% |
|
531 |
|
|
(0.4) |
% |
| Benefit for income taxes |
$ |
(5,937) |
|
|
3.8
|
% |
|
$ |
(4,158) |
|
|
2.3
|
% |
|
| Schedule of Deferred Income Taxes |
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2024 and 2023 are set forth as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
| (in thousands) |
2024 |
|
2023 |
| Deferred tax assets: |
|
|
|
| Net operating loss carryforward |
$ |
20,515 |
|
|
$ |
17,221 |
|
| Credit carryforward |
1,329 |
|
|
1,325 |
|
| Interest expense limitation carryforward |
26,889 |
|
|
21,978 |
|
| Non-deductible reserves |
2,052 |
|
|
1,571 |
|
| Accruals and other temporary differences |
2,757 |
|
|
2,622 |
|
| Stock compensation |
782 |
|
|
1,665 |
|
| Capitalized research and development costs |
1,916 |
|
|
2,301 |
|
| Lease liability |
2,532 |
|
|
2,745 |
|
| Property and equipment |
3,264 |
|
|
1,849 |
|
| Gross deferred tax assets |
$ |
62,036
|
|
|
$ |
53,277
|
|
| Less: valuation allowance |
(44,178) |
|
|
(33,454) |
|
| Total deferred tax assets (after valuation allowance) |
$ |
17,858
|
|
|
$ |
19,823
|
|
| Deferred tax liabilities: |
|
|
|
| Property and equipment |
(1,210) |
|
|
(1,442) |
|
| Intangible assets |
(12,428) |
|
|
(22,193) |
|
| Goodwill |
(2,317) |
|
|
(3,569) |
|
| Change in accounting method |
(153) |
|
|
(719) |
|
| Right-of-use operating lease asset |
(2,208) |
|
|
(2,357) |
|
| Research and development costs |
(3,230) |
|
|
(3,338) |
|
| Total deferred tax liabilities |
$ |
(21,546) |
|
|
$ |
(33,618) |
|
| Net deferred tax liabilities |
$ |
(3,688) |
|
|
$ |
(13,795) |
|
|
| 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, 2024 |
|
December 31, 2023 |
| Unrecognized tax benefits as of the beginning of the year |
$ |
8,766 |
|
|
$ |
8,574 |
|
| Additions for tax positions of current year |
693 |
|
|
192 |
|
| Unrecognized tax benefits as of the end of the year |
$ |
9,459
|
|
|
$ |
8,766
|
|
|