Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Provision for Income Taxes

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

 

 

 

Years ended December 31,

 

(amounts in thousands)

 

2021

 

 

2020

 

 

2019

 

United States

 

$

7,621

 

 

$

(6,464

)

 

$

22,553

 

Foreign

 

 

1,038

 

 

 

1,184

 

 

 

1,719

 

Income (loss) before provision for income taxes

 

$

8,659

 

 

$

(5,280

)

 

$

24,272

 

Components of Provisions for Income Taxes

The provision for income taxes consists of the following:

 

 

 

Years ended December 31,

 

(amounts in thousands)

 

2021

 

 

2020

 

 

2019

 

Current tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

(74

)

 

$

(330

)

State

 

 

271

 

 

 

198

 

 

 

136

 

Foreign

 

 

266

 

 

 

381

 

 

 

560

 

Total current tax expense

 

 

537

 

 

 

505

 

 

 

366

 

Deferred tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

10,263

 

 

 

309

 

 

 

3,497

 

State

 

 

4,194

 

 

 

(193

)

 

 

(396

)

Foreign

 

 

(22

)

 

 

(72

)

 

 

(145

)

Total deferred tax expense

 

 

14,435

 

 

 

44

 

 

 

2,956

 

Interest and penalties

 

 

20

 

 

 

 

 

 

 

Provision for income taxes

 

$

14,992

 

 

$

549

 

 

$

3,322

 

Components of Deferred Tax Assets and Liabilities

 

The components of deferred tax assets and liabilities consist of the following:

 

(amounts in thousands)

 

As of December 31,

 

Deferred tax assets (liabilities)

 

2021

 

 

2020

 

Accrued expenses

 

$

10,575

 

 

$

8,346

 

Net operating loss and credit carryforward

 

 

21,138

 

 

 

20,145

 

Allowance, reserves and other

 

 

2,668

 

 

 

1,381

 

Stock-based compensation

 

 

2,665

 

 

 

3,379

 

Lease liability

 

 

6,507

 

 

 

2,427

 

Deferred tax assets

 

 

43,553

 

 

 

35,678

 

Property, plant, and equipment

 

 

(7,664

)

 

 

(4,805

)

Intangible amortization

 

 

(12,389

)

 

 

(14,292

)

Right-of-use asset

 

 

(6,077

)

 

 

(2,139

)

Deferred tax liabilities

 

 

(26,130

)

 

 

(21,236

)

Valuation allowance

 

 

(17,423

)

 

 

 

Total

 

$

 

 

$

14,442

 

Reconciliation of the Federal Statutory Income Tax Rate to the Effective Income Tax Rate

Reconciliation of the federal statutory income tax rate to the effective income tax rate for the years ended December 31, 2021, 2020 and 2019 is as follows:

 

 

 

Years ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

U.S. Statutory rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State income taxes, net of federal benefit

 

 

-1.39

%

 

 

-3.86

%

 

 

3.70

%

Stock-based compensation

 

 

-21.72

%

 

 

-16.80

%

 

 

-0.81

%

R&D credit, net of reserve

 

 

-5.95

%

 

 

-8.11

%

 

 

-8.97

%

Change in fair value

 

 

-28.19

%

 

 

-4.19

%

 

 

0.70

%

Nondeductible compensation

 

 

7.04

%

 

 

 

 

 

 

Valuation allowance

 

 

201.69

%

 

 

 

 

 

 

Other

 

 

0.63

%

 

 

1.57

%

 

 

-1.94

%

Effective income tax rate

 

 

173.11

%

 

 

-10.39

%

 

 

13.68

%

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

 

(amounts in thousands)

 

December 31,

 

Reconciliation of liability for unrecognized tax benefits

 

2021

 

 

2020

 

 

2019

 

Balance at beginning of period

 

$

1,932

 

 

$

1,889

 

 

$

1,294

 

Additions based on tax positions related to current year

 

 

146

 

 

 

70

 

 

 

595

 

Reductions based on tax positions related to prior year

 

 

 

 

 

(181

)

 

 

 

Additions based on tax positions related to prior year

 

 

 

 

 

154

 

 

 

 

Balance at end of period

 

$

2,078

 

 

$

1,932

 

 

$

1,889