Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Company's Profit (Loss) Before Income Taxes and Tax Provisions

The components of the Company’s profit (loss) before income taxes are as follows:

 

 

 

Year Ended

 

 

 

December 31,

 

(in thousands)

 

2022

 

 

2021

 

Profit (loss) before income taxes:

 

 

 

 

 

 

Domestic

 

 

(24,673

)

 

$

3,685

 

Foreign

 

 

(1,133

)

 

 

226

 

Total

 

$

(25,806

)

 

$

3,911

 

 

The components of the income tax expense (benefit) are as follows:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

Current Provision

 

 

 

 

 

 

Federal

 

$

 

 

$

 

State

 

3

 

 

 

1

 

Foreign

 

69

 

 

 

55

 

Total current provision

 

72

 

 

 

56

 

Deferred Provision

 

 

 

 

 

 

Federal

 

 

(136

)

 

 

 

State

 

 

(52

)

 

 

 

Foreign

 

 

(302

)

 

 

 

Total deferred expense (benefit)

 

 

(490

)

 

 

 

Total income tax expense (benefit)

 

$

(418

)

 

$

56

 

 

Schedule of Overall Effective Income Tax Rate

The overall effective tax rate differs from the statutory US federal tax rate as follows:

 

 

 

Year Ended December 31,

 

 

 

% of Pretax Profit (Loss)

 

 

 

2022

 

 

2021

 

Statutory US federal tax rate

 

 

21.00

%

 

 

21.00

%

State income taxes, net of federal benefit

 

 

5.88

 

 

 

(51.05

)

Stock-based compensation

 

 

(8.24

)

 

 

26.08

 

Nondeductible expenses

 

 

 

 

 

1.44

 

Global intangible low-taxed income

 

 

 

 

 

1.17

 

Fair market value change in warrants and earn out liabilities

 

 

47.85

 

 

 

(337.50

)

Transaction costs

 

 

(1.26

)

 

 

(25.85

)

Officer's compensation

 

 

(0.69

)

 

 

26.36

 

Research and development credits

 

 

32.93

 

 

 

(11.95

)

Valuation allowance

 

 

(91.07

)

 

 

356.34

 

Change in statutory tax rate

 

 

(1.05

)

 

 

(3.26

)

Other

 

 

(3.80

)

 

 

(1.39

)

Effective tax rate

 

 

1.55

%

 

 

1.39

%

Schedule of Components of the Company's Net Deferred Tax Assets

Significant components of the Company’s net deferred tax assets are as follows:

 

 

 

December 31,

 

(in thousands)

 

2022

 

 

2021

 

Deferred tax assets

 

 

 

 

 

 

Lease liability

 

$

11,220

 

 

$

 

Capitalized research and development costs

 

 

9,453

 

 

 

 

Stock compensation

 

 

2,296

 

 

 

2,138

 

Reserves

 

 

824

 

 

 

647

 

Deferred revenue

 

 

778

 

 

 

577

 

Accrued expenses

 

 

509

 

 

 

369

 

Amortization

 

 

200

 

 

 

174

 

Deferred expenses

 

 

 

 

 

446

 

Net operating losses

 

 

33,690

 

 

 

27,846

 

Research and development credits

 

 

12,260

 

 

 

3,717

 

Other credits

 

 

254

 

 

 

74

 

Gross deferred tax assets

 

$

71,484

 

 

$

35,988

 

Less: Valuation allowance

 

 

(59,514

)

 

 

(36,009

)

Deferred tax liabilities

 



 

 

 

 

Right-of-use assets

 

 

(10,599

)

 

 

 

Acquired intangible assets

 

 

(3,690

)

 

 

 

Depreciation

 

 

(464

)

 

 

21

 

Net deferred tax assets

 

$

(2,783

)

 

$

 

Schedule of Deferred Income Tax Asset Valuation Allowance

The following table presents the changes in the balance of the Company’s deferred income tax asset valuation allowance:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

Balance at beginning of year

 

$

36,009

 

 

$

21,466

 

Additions charged to expense

 

 

23,505

 

 

 

14,543

 

Balance at end of year

 

$

59,514

 

 

$

36,009