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