INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Benefit from (provision for) income taxes the years ended December 31, 2023 and 2022 consisted of the following (in thousands):

		Years Ended December 31,
			2023		2022
Income before provision for (benefit from) income taxes	42,915	26,965
Provision for (benefit from) income taxes			8,939		(3,699	)
Effective tax rate			20.8	%	13.7	%

The components of our income before benefit from (provision for) income taxes were as follows (in thousands):

The benefit from (provision for) income taxes consisted of the following (in thousands):

	Years Ended December 31,
	2023		2022
Current:
U.S. federal	$	3,554	$	458
States and local	236		74
Foreign	1,621		871
Total current	5,411		1,403
Deferred:
U.S. federal	2,921		(5,694		)
States and local	—		—
Foreign	607		592
Total deferred	3,528		(5,102		)
Total benefit from (provision for) income taxes	$	8,939	$	(3,699	)

Significant components of the net deferred tax assets and liabilities consisted of (in thousands):

	December 31,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	4,785		$	5,391
State income taxes	50			15
Deferred revenue	2,769			3,498
Research and development and other credits	3,701			3,757
Reserve and accruals recognized in different periods	(563		)	1,692
Capitalized research and development expenses	2,850			3,019
Depreciation and amortization	587			1,802
Lease liability	7			104
Total deferred tax assets	14,186			19,278
Valuation allowance	(10,837		)	(12,341		)
Net deferred tax assets	3,349			6,937
Deferred tax liabilities:
Right of use lease assets	(6		)	(67		)
Total deferred tax liabilities	(6		)	(67		)
Net deferred taxes	$	3,343		$	6,870

The reconciliation of federal statutory income tax rate to our effective tax rate was as follows (in thousands):

	Years Ended December 31,
	2023		2022
Federal statutory rate	21.0	%	21.0	%
Foreign withholding	0.7	%	0.3	%
Stock-based compensation expense	(0.7)	%	0.3	%
Foreign rate differential	(2.1)	%	(2.3)	%
Prior year true-up items	—	%	(0.9)	%
Tax reserves	4.0	%	5.3	%
FTC	(6.0)	%	1.4	%
Other	0.6	%	0.7	%
State taxes, net of federal benefit	0.2	%	0.2	%
Global intangible low-taxed income	3.8	%	6.4	%
Nondeductible officers compensation	2.8	%	1.1	%
Valuation allowance	(3.5)	%	(47.2)	%
Effective tax rate	20.8	%	(13.7)	%

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):

	Years Ended December 31,
	2023	2022
Balance at beginning of year	7,093	7,569
Gross increases for tax positions of prior years	—	647
Gross decreases for federal tax rate change for tax positions of prior years	125	(2,170	)
Gross increases for tax positions of current year	272	1,146
Lapse of statute of limitations	—	(99	)
Balance at end of year	7,490	7,093