Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
| Income Tax Disclosure [Abstract] |
|
| Schedule of Components of Loss Before Provision for Income Taxes |
The following table presents the components of loss before provision for income taxes (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
United States |
|
$ |
(23,190 |
) |
|
$ |
(45,341 |
) |
|
$ |
(29,186 |
) |
Foreign |
|
|
18,838 |
|
|
|
7,982 |
|
|
|
3,259 |
|
|
|
$ |
(4,352 |
) |
|
$ |
(37,359 |
) |
|
$ |
(25,927 |
) |
|
| Schedule of Components of Company's Provision for Income Taxes |
The following table summarizes the components of the Company’s provision for income taxes (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Current |
|
|
|
|
|
|
|
|
|
United States: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
131 |
|
|
|
206 |
|
|
|
198 |
|
Foreign |
|
|
4,011 |
|
|
|
3,490 |
|
|
|
1,814 |
|
Total current provision for income taxes |
|
$ |
4,142 |
|
|
$ |
3,696 |
|
|
$ |
2,012 |
|
Deferred |
|
|
|
|
|
|
|
|
|
United States: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
55 |
|
|
$ |
36 |
|
|
$ |
15 |
|
State |
|
|
(102 |
) |
|
|
6 |
|
|
|
95 |
|
Foreign |
|
|
119 |
|
|
|
(1,750 |
) |
|
|
36 |
|
Total deferred income tax provision (benefit) |
|
|
72 |
|
|
|
(1,708 |
) |
|
|
146 |
|
Total income tax provision |
|
$ |
4,214 |
|
|
$ |
1,988 |
|
|
$ |
2,158 |
|
|
| Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Rate |
A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Federal statutory income tax rate |
|
$ |
(914 |
) |
|
21.0 |
% |
|
$ |
(7,845 |
) |
|
21.0 |
% |
|
$ |
(5,435 |
) |
|
21.0 |
% |
State income taxes, net of federal benefit |
|
|
(721 |
) |
|
16.6 |
|
|
|
(2,228 |
) |
|
6.0 |
|
|
|
(1,300 |
) |
|
5.0 |
|
Non-deductible expenses |
|
|
181 |
|
|
(4.2 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Imputed interest |
|
|
114 |
|
|
(2.6 |
) |
|
|
456 |
|
|
(1.2 |
) |
|
|
— |
|
|
— |
|
Fair value of contingent consideration |
|
|
79 |
|
|
(1.8 |
) |
|
|
(579 |
) |
|
1.5 |
|
|
|
462 |
|
|
(1.8 |
) |
Global intangible low-taxed income inclusion |
|
|
3,128 |
|
|
(71.9 |
) |
|
|
391 |
|
|
(1.0 |
) |
|
|
— |
|
|
— |
|
Equity-based compensation |
|
|
(4,668 |
) |
|
107.3 |
|
|
|
(3,538 |
) |
|
9.5 |
|
|
|
(2,724 |
) |
|
10.5 |
|
Change in fair value of preferred stock warrant liability |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
2,259 |
|
|
(8.7 |
) |
Excess executive compensation |
|
|
1,865 |
|
|
(42.9 |
) |
|
|
1,267 |
|
|
(3.4 |
) |
|
|
1,727 |
|
|
(6.7 |
) |
Change in uncertain tax position |
|
|
(30 |
) |
|
0.7 |
|
|
|
(68 |
) |
|
0.2 |
|
|
|
582 |
|
|
(2.2 |
) |
Change in valuation allowance |
|
|
2,734 |
|
|
(62.8 |
) |
|
|
13,797 |
|
|
(36.9 |
) |
|
|
6,384 |
|
|
(24.6 |
) |
Foreign rate differential |
|
|
1,015 |
|
|
(23.3 |
) |
|
|
491 |
|
|
(1.3 |
) |
|
|
(61 |
) |
|
0.2 |
|
Deferred statutory rate changes |
|
|
1,296 |
|
|
(29.8 |
) |
|
|
(367 |
) |
|
1.0 |
|
|
|
87 |
|
|
(0.3 |
) |
Foreign withholding taxes |
|
|
137 |
|
|
(3.1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Other |
|
|
(2 |
) |
|
— |
|
|
|
211 |
|
|
(0.8 |
) |
|
|
177 |
|
|
(0.7 |
) |
Effective income tax rate |
|
$ |
4,214 |
|
|
(96.8 |
)% |
|
$ |
1,988 |
|
(5.4)% |
|
|
$ |
2,158 |
|
|
(8.3 |
)% |
|
| Schedule of Company's Deferred Tax Assets and Liabilities |
The Company’s deferred tax assets and liabilities consisted of the following components (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
26,690 |
|
|
$ |
33,078 |
|
Property and equipment |
|
|
395 |
|
|
|
496 |
|
Accrued expenses |
|
|
1,814 |
|
|
|
1,398 |
|
Equity-based compensation |
|
|
5,113 |
|
|
|
5,370 |
|
Lease liability |
|
|
768 |
|
|
|
686 |
|
Interest limitation carryforward |
|
|
— |
|
|
|
650 |
|
Capitalized research and development costs |
|
|
20,776 |
|
|
|
10,360 |
|
Unrealized foreign exchange loss |
|
|
46 |
|
|
|
941 |
|
Other temporary differences |
|
|
259 |
|
|
|
360 |
|
Total deferred tax assets |
|
|
55,861 |
|
|
|
53,339 |
|
Deferred tax asset valuation allowance |
|
|
(40,444 |
) |
|
|
(37,627 |
) |
|
|
$ |
15,417 |
|
|
$ |
15,712 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Intangible assets |
|
|
(15,234 |
) |
|
|
(20,272 |
) |
Goodwill |
|
|
(7,843 |
) |
|
|
(1,033 |
) |
Right-of-use asset |
|
|
(743 |
) |
|
|
(596 |
) |
Deferred revenue |
|
|
(2,387 |
) |
|
|
(2,272 |
) |
Deferred contract costs |
|
|
(2,668 |
) |
|
|
(1,726 |
) |
Other temporary differences |
|
|
(38 |
) |
|
|
(163 |
) |
Total deferred tax liabilities |
|
|
(28,913 |
) |
|
|
(26,062 |
) |
Net deferred tax liabilities |
|
$ |
(13,496 |
) |
|
$ |
(10,350 |
) |
|
| Summary of Changes in Valuation Allowance |
Changes in the valuation allowance are summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Valuation allowance at beginning of year |
|
$ |
(37,627 |
) |
|
$ |
(23,864 |
) |
|
$ |
(17,485 |
) |
Change recorded to income tax provision as part of operations |
|
|
(2,817 |
) |
|
|
(13,763 |
) |
|
|
(6,379 |
) |
Valuation allowance at end of year |
|
$ |
(40,444 |
) |
|
$ |
(37,627 |
) |
|
$ |
(23,864 |
) |
|
| Schedule of changes in our accruals for unrecognized tax benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Balance at beginning of year |
|
$ |
659 |
|
|
$ |
889 |
|
|
$ |
— |
|
Settlements with taxing authorities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Increases (decreases) related to tax positions taken during prior years |
|
|
— |
|
|
|
(170 |
) |
|
|
502 |
|
Decreases related to lapses in statute of limitations |
|
|
(39 |
) |
|
|
(60 |
) |
|
|
— |
|
Increases related to tax positions taken during the current year |
|
|
— |
|
|
|
— |
|
|
|
387 |
|
Balance at end of year |
|
$ |
620 |
|
|
$ |
659 |
|
|
$ |
889 |
|
|