Post-effective amendment to a registration statement that is not immediately effective upon filing

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019 consisted of the following:
 
 
  
For the Years Ended
December 31,
 
 
  
2021
 
  
2020
 
  
2019
 
 
  
(in thousands)
 
  
 
 
United State
s
  
$
(13,326
  
$
(25,283
  
$
(27,728
Foreign
  
 
(20,821
  
 
(15,236
  
 
(8,656
 
  
 
 
 
  
 
 
 
  
 
 
 
Total loss before income taxes
  
$
(34,147
  
$
(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:
 
 
  
For the Years Ended December 31,
 
 
  
2021
 
  
2020
 
  
2019
 
Current:
  
(in thousands)
 
  
 
 
Federal
  
$
—  
 
  
$
  
 
  
$
(1,136
State
  
 
420
 
  
 
546
 
  
 
(44
Foreign
  
 
(243
  
 
505
 
  
 
(270
 
  
 
 
 
  
 
 
 
  
 
 
 
Total current provision (benefit)
  
 
177
 
  
 
1,051
 
  
 
(1,450
 
  
 
 
 
  
 
 
 
  
 
 
 
Deferred:
  
 
 
 
  
 
 
 
  
 
 
 
Federa
l
  
 
(6,213
  
 
(7,120
  
 
(8,626
State
  
 
(784
  
 
2,285
 
  
 
(2,117
Foreign
  
 
(2,874
  
 
(1,534
  
 
(748
 
  
 
 
 
  
 
 
 
  
 
 
 
Total deferred benefit
  
 
(9,871
  
 
(6,369
  
 
(11,491
 
  
 
 
 
  
 
 
 
  
 
 
 
Total benefit
  
$
(9,694
  
$
(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, 2021, 2020 and 2019 are as follows:
 
 
  
For the Years Ended December 31,
 
 
  
2021
 
 
2020
 
 
2019
 
 
  
(in thousands)
 
 
 
 
 
 
 
Benefit for income taxes at 21% rate
  
$
(7,171
  
 
21.0
 
$
(8,509
  
 
21.0
 
$
(7,641
  
 
21.0
State taxes, net of federal benefit
  
 
(1,227
  
 
3.5
 
 
(947
  
 
2.3
 
 
(2,161
  
 
6.0
Change in valuation allowance
  
 
975
 
  
 
-2.9
 
 
1,016
 
  
 
-2.5
 
 
  
 
  
 
0.0
Rate change
  
 
775
 
  
 
-2.3
 
 
2,856
 
  
 
-7.0
 
 
  
 
  
 
0.0
Credits
  
 
(602
  
 
1.8
 
 
(811
  
 
2.0
 
 
(541
  
 
1.5
Permanent differences and other
  
 
47
 
  
 
-0.1
 
 
307
 
  
 
-0.8
 
 
(41
  
 
0.1
Revaluation of warrants
  
 
(1,106
  
 
3.2
 
 
1,572
 
  
 
-3.9
 
 
(49
  
 
0.1
Uncertain tax positions
  
 
9
 
  
 
0.0
 
 
226
 
  
 
-0.6
 
 
(984
  
 
2.7
Foreign withholding tax
  
 
116
 
  
 
-0.3
 
 
420
 
  
 
-1.0
 
 
  
 
  
 
0.0
Foreign rate differential
  
 
(1,573
  
 
4.6
 
 
(1,448
  
 
3.6
 
 
(1,524
  
 
4.2
Executive compensation expens
e
  
 
1,517
 
  
 
-4.4
 
 
  
 
  
 
0.0
 
 
  
 
  
 
0.0
Transaction related expense
  
 
(1,454
  
 
4.3
 
 
  
 
  
 
0.0
 
 
  
 
  
 
0.0
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
Benefit for income taxes
  
$
(9,694
  
 
28.4
 
$
(5,318
  
 
13.1
 
$
(12,941
  
 
35.6
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
Summary of Deferred Income Taxes
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2021 and 2020 are as follows:
 
 
  
As of December 31,
 
 
  
2021
 
  
2020
 
 
  
(in thousands)
 
Deferred tax assets:
  
  
Net operating loss carry-forward
  
$
11,081
 
  
$
10,604
 
Credit carry-forward
  
 
2,802
 
  
 
2,468
 
Interest expense limitation carry-forward
  
 
10,997
 
  
 
7,811
 
Non-deductible
reserves
  
 
374
 
  
 
520
 
Accruals and other temporary differences
  
 
1,046
 
  
 
1,047
 
Stock compensation
  
 
  
 
  
 
698
 
Property and equipment
  
 
1,018
 
  
 
1,089
 
 
  
 
 
 
  
 
 
 
Gross deferred tax assets
  
 
27,318
 
  
 
24,237
 
Less Valuation allowance
  
 
(7,731
  
 
(7,164
 
  
 
 
 
  
 
 
 
Total deferred tax assets (after valuation allowance)
  
 
19,587
 
  
 
17,073
 
Deferred tax liabilities:
  
 
 
 
  
 
 
 
Property and equipment
  
 
(4,151
  
 
(4,089
Intangible assets
  
 
(40,754
  
 
(49,461
Goodwill
  
 
(7,432
  
 
(6,241
Debt discount
  
 
(3,972
  
 
—  
 
 
  
 
 
 
  
 
 
 
Total deferred tax liabilities
  
 
(56,309
  
 
(59,791
 
  
 
 
 
  
 
 
 
Net deferred tax liabilities
  
$
(36,722
)
 
  
$
(42,718
)
 
 
  
 
 
 
  
 
 
 
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 consolidated balance sheets.
 
 
  
For the Years Ended December 31,
 
 
  
2021
 
  
2020
 
 
  
(in thousands)
 
Unrecognized tax benefits at the beginning of the year
  
$
3,867
 
  
$
3,658
 
Additions for tax positions of current year
  
 
—  
 
  
 
—  
 
Additions for tax positions of prior years
  
 
  
 
  
 
209
 
Reductions for tax positions of prior years
  
 
—  
 
  
 
—  
 
Expirations statutes of limitation
  
 
—  
 
  
 
—  
 
 
  
 
 
 
  
 
 
 
Unrecognized tax benefits at the end of the year
  
$
3,867
 
  
$
3,867