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

Income Taxes (Tables)

v3.21.2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Summary of Income (Loss) Before Provision (Benefit)
Income (Loss) before provision (benefit) for income taxes from continuing operations for the years ended December 31, 2020 and 2019 consisted of the following:
 
(in ‘000)
   
December 31,
2020
     
December 31,
2019
  
United States
    $ (25,283 )     $ (27,728 ) 
Foreign
      (15,236 )       (8,656 ) 
    
 
 
     
 
 
  
Total loss before income taxes
   
$
(40,519
) 
   
$
(36,384
) 
    
 
 
     
 
 
  
Summary of Components of the Provision for Income Taxes
The components of the provision (benefit) for income taxes from continuing operations
 
consisted of the following:
 
(in ‘000)
   
December 31,
2020
     
December 31,
2019
  
Current:
                  
Federal
    $ —        $ (1,136 ) 
State
      546        (44 ) 
Foreign
      505        (270 ) 
    
 
 
     
 
 
  
Total current provision (benefit)
   
 
1,051
 
   
 
(1,450
) 
Deferred:
                  
Federal
      (7,120 )       (8,626 ) 
State
      2,285        (2,117 ) 
Foreign
      (1,534 )       (748 ) 
    
 
 
     
 
 
  
Total deferred benefit
   
$
(6,369
) 
   
$
(11,491
) 
    
 
 
     
 
 
  
Total benefit
   
$
(5,318
) 
   
$
(12,941
) 
    
 
 
     
 
 
  
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, 2020 and 2019 are as follows:
 
(in ‘000)
   
December 31,
2020
     
December 31,
2019
  
Benefit for income taxes at 21% rate
    $ (8,509 )     $ (7,641 ) 
State taxes, net of federal benefit
      (947 )       (2,161 ) 
Change in valuation allowance
      1,016        —    
Rate change
      2,856        —    
Credits
      (811 )       (541 ) 
Permanent differences and other
      307        (41 ) 
Revaluation of warrants
      1,572        (49 ) 
Uncertain tax provision
      226        (984 ) 
Foreign withholding tax
      420        —    
Foreign rate differential
      (1,448 )       (1,524 ) 
    
 
 
     
 
 
  
Benefit for income taxes
   
$
(5,318
) 
   
 
(12,941
) 
    
 
 
     
 
 
  
Summary of Deferred Income Taxes
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2020 and 2019 are as follows:
 
(in ‘000)
   
December 31,
2020
     
December 31,
2019
  
Deferred tax assets:
                  
Net operating loss carry-forward
    $ 10,604      $ 11,618  
Credit carry-forward
      2,468        1,476  
Interest expense limitation carry-forward
      7,811        7,087  
Non-deductible
reserves
      520        444  
Accruals and other temporary differences
      1,047        423  
Stock compensation
      698        439  
Property and equipment
      1,089        855  
    
 
 
     
 
 
  
Gross deferred tax assets
   
$
24,237
 
   
$
22,342
 
Less valuation allowance
      (7,164 )       (6,148 ) 
    
 
 
     
 
 
  
Total deferred tax assets (after valuation allowance)
   
$
17,073
 
   
$
16,194
 
    
 
 
     
 
 
  
Deferred tax liabilities:
                  
Property and equipment
      (4,089 )       (3,849 ) 
Intangible assets
      (49,461 )       (56,329 ) 
Goodwill
      (6,241 )       (4,894 ) 
    
 
 
     
 
 
  
Total deferred tax liabilities
   
$
(59,791
) 
   
$
(65,072
) 
    
 
 
     
 
 
  
Net deferred tax liabilities
   
$
(42,718
) 
   
$
(48,878
) 
    
 
 
     
 
 
  
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 on the balance sheet.
 
(in ‘000)
   
December 31,
2020
     
December 31,
2019
  
Unrecognized tax benefits at the beginning of the year
    $ 3,658      $ 4,508  
Additions for tax positions of current year
                  
Additions for tax positions of prior years
      209           
Reductions for tax positions of prior years
               (850 ) 
Expirations statutes of limitation
                  
    
 
 
     
 
 
  
Unrecognized tax benefits at the end of the year
   
$
3,867
 
   
$
3,658