Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Components of the provision (benefits) for income taxes

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	848	$	223	$	—
State		34		91		15
Foreign		918		3,119		2,016
Total current		1,800		3,433		2,031
Deferred:
Federal		(591)		(188)		—
State		(4)		(1)
Foreign		980		(2,151)		—
Total deferred		385		(2,340)		—
Total provision for income taxes	$	2,185	$	1,093	$	2,031

Reconciliation of the effective income tax rates and the U.S. statutory federal income tax rate

	Year Ended December 31,
	2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefits	0.1		0.4		0.2
Valuation allowance	(19.3)		(25.4)		0.8
Stock-based compensation	0.7		(3.2)		(1.9)
Foreign tax rate differential	(2.6)		(8.6)		2.1
Foreign tax incentives	(3.5)		(3.2)		(3.8)
Foreign income inclusion	18.9		10.4		7.8
Gain from sale of IP	—		16.9		—
Tax effect in equity method loss or gain from unconsolidated affiliates	(3.0)		(2.6)		1.1
Other	(1.8)		0.5		1.4
Effective tax rate	10.5	%	6.2	%	28.7	%

Deferred tax assets and liabilities

Deferred tax assets and liabilities are summarized below (in thousands):

	As of December 31,
	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	9,571	$	11,275
Accruals, reserves and other		4,053		6,056
Credit carryforwards		206		358
Operating lease liability		60		125
Gross deferred tax assets		13,890		17,814
Valuation allowance		(11,885)		(15,371)
Total deferred tax assets		2,005		2,443
Deferred tax liabilities:
Operating lease right-of-use assets		(50)		(103)
Total net deferred tax assets (included in other assets)	$	1,955	$	2,340