General form of registration statement for all companies including face-amount certificate companies

INCOME TAXES (Tables)

v3.23.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Income (Loss) Before Provision (Benefit)
Income (loss) before provision (benefit) for income taxes from operations for the years ended December 31, 2022, and 2021, consisted of the following:
Years Ended
(In thousands, USD) December 31, 2022 December 31, 2021
United States $ (92,021) $ (12,184)
Foreign (24,596) (21,368)
Total loss before income taxes $ (116,617) $ (33,552)
Summary of Components of the Provision for Income Taxes
The components of the provision (benefit) for income taxes from operations consisted of the following:
Years Ended
(In thousands, USD) December 31, 2022 December 31, 2021
Current:
Federal $ 4,309  $ 782 
State 905  442 
Foreign 558  (309)
Total current provision 5,772  915 
Deferred:
Federal (9,336) (6,478)
State (4,455) (748)
Foreign (2,398) (2,465)
Total deferred benefit (16,189) (9,691)
Total income tax benefit $ (10,417) $ (8,776)
Summary 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 our provision for income taxes for the years ended December 31, 2022, and 2021 is as follows:
Years Ended
(In thousands, USD) December 31, 2022 December 31, 2021
Benefit for income taxes at 21% rate $ (24,490) 21.0  % $ (7,045) 21.0  %
State taxes, net of federal benefit (1,358) 1.2  % (1,147) 3.4  %
Change in valuation allowance 10,628  -9.1  % (642) 1.9  %
Rate change (1,687) 1.4  % 774  -2.3  %
Credits (604) 0.5  % (602) 1.8  %
Permanent differences and other (2,712) 2.2  % 2,852  -8.5  %
Revaluation of warrants (53) 0.0  % (1,106) 3.3  %
Uncertain tax positions 591  -0.5  % 544  -1.6  %
Foreign withholding tax 134  -0.1  % 116  -0.3  %
Foreign rate differential (2,120) 1.8  % (2,587) 7.7  %
Executive compensation expense 872  -0.7  % 1,517  -4.5  %
Transaction related expense 210  -0.2  % (1,450) 4.3  %
Global intangible low taxed income 283  -0.2  % —  0.0  %
Foreign derived intangible income (311) 0.3  % —  0.0  %
Goodwill impairment 10,200  -8.7  % —  0.0  %
Benefit for income taxes
$ (10,417) 8.9  % $ (8,776) 26.2  %
Summary of Deferred Income Taxes
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2022, and 2021 are as follows:
Years Ended
(In thousands, USD) December 31, 2022 December 31, 2021
Deferred tax assets:
    Net operating loss carry-forward $ 13,617  $ 7,504 
    Credit carry-forward 1,386  1,956 
    Interest expense limitation carry-forward 15,844  12,053 
    Non-deductible reserves 339  374 
    Accruals and other temporary differences 2,835  1,288 
    Stock compensation 1,164  — 
Lease liability 2,780  — 
    Property and equipment 1,007  1,018 
Gross deferred tax assets 38,972  24,193 
    Less Valuation allowance (16,177) (5,750)
Total deferred tax assets (after valuation allowance) 22,795  18,443 
Deferred tax liabilities:
    Property and equipment (1,738) (4,151)
    Intangible assets (33,117) (40,771)
    Goodwill (5,914) (7,474)
Debt Discount —  (3,972)
Accounting method change (1,378) — 
Right of use asset (2,514) — 
Research and development costs (3,327) — 
Total deferred tax liabilities $ (47,988) $ (56,368)
Net deferred tax liabilities $ (25,193) $ (37,925)
Summary of Gross Unrecognized Tax Benefits
The following table presents a reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, included in accrued liabilities and other long-term liabilities in the consolidated balance sheets.
Years Ended
(In thousands, USD) December 31, 2022 December 31, 2021
Unrecognized tax benefits at the beginning of the year $ 8,132  $ 7,690 
Additions for tax positions of current year 442  442 
Unrecognized tax benefits at the end of the year $ 8,574  $ 8,132