v3.24.0.1
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:

 

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