v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
Schedule of Income Tax (Benefit) Expense Amount Computed At the Federal Statutory Corporate Income tax (benefit) expense for the years ended December 31, 2023, 2022 and 2021 consist of the following (in thousands):
   Year ended December 31, 
   2023   2022   2021 
Current:            
Federal  $(167)  $(1,030)  $1,692 
State   217    344    699 
  Total current   50    (686)   2,391 
Deferred:               
Federal   (42)   169,180    (6,678)
State   
—
    44,675    2,765 
  Total deferred   (42)   213,855    (3,913)
         Income tax (benefit) expense  $8   $213,169   $(1,522)
Schedule of Income Tax (Benefit) Expense Amount Computed At the Federal Statutory Corporate Income tax (benefit) expense differs from the amount computed at the federal statutory corporate income tax rate as follows (in thousands):
   Year ended December 31, 
   2023   2022   2021 
Tax (provision) benefit at Federal statutory rate  $(25,454)  $25,293   $299 
State income tax provision (benefit), net of federal benefit   (6,235)   292    (821)
Noncontrolling interest   96    59    (418)
Tax receivable agreement liability   
—
    (34,014)   (843)
Change in fair value – warrant liabilities   —    (912)   (5,051)
Change in valuation allowance   35,592    189,870    
—
 
Remeasurement due to rate change   (31)   2,530    3,287 
Research and development tax credits   (1,113)   (1,763)   
—
 
Remeasurement of investment in Purple LLC   (4,028)   29,822    1,834 
Nondeductible compensation   281    
—
    531 
Stock-based compensation   605    2,303    (330)
Other   295    (311)   (10)
      Income tax (benefit) expense  $8   $213,169   $(1,522)

 

Schedule of Deferred Income Taxes Deferred income taxes at December 31, 2023 and 2022 consisted of the following (in thousands):
   2023   2022 
Basis difference in Purple LLC investment  $156,521   $131,260 
Tax over book basis in capital contributions   78,158    100,413 
Start-up costs   405    449 
Stock-based compensation   999    874 
Interest carryforwards   2,314    1,573 
Research and development tax credits   2,712    1,389 
Charitable contribution carryforwards   121    77 
Net operating losses   62,550    32,681 
Total net deferred income tax asset   303,780    268,716 
Less: Valuation allowance   (303,780)   (268,716)
Net deferred income tax asset  $
—
   $
—
 
Schedule of Company’s Uncertain Tax Positions Recognized as Liabilities The following table summarizes the Company’s unrecognized tax benefits for the years ended December 31, 2023 and 2022:
(In thousands)  Unrecognized Tax
Benefits
 
Unrecognized tax benefits as of December 31, 2021  $
—
 
Increase due to current year tax positions   177 
Increase due to prior year tax positions   264 
Increase due to acquisition   152 
Unrecognized tax benefits as of December 31, 2022  $593 
Increase due to current year tax positions   215 
Increase due to prior year tax positions   291 
Decrease due to lapse of statute of limitations   (153)
Unrecognized tax benefits as of December 31, 2023  $946