INCOME TAXES

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company recorded income tax expense of $0.2 million for the three months ended September 30, 2023 and a benefit of $3.1 million for the three months ended September 30, 2022. The Company recorded income tax expense of $3.0 million for the nine months ended September 30, 2023 and a benefit of $6.9 million for the nine months ended September 30, 2022. The Company’s income tax expense recorded during the three and nine months ended September 30, 2023 is primarily related to current foreign and state tax expense. A deferred tax liability of $18.7 million and $19.7 million was recorded as of September 30, 2023 and December 31, 2022, respectively, which is included in other long-term liabilities on the Company’s condensed consolidated balance sheet. The Company continues to maintain a full valuation allowance against its deferred tax assets based on management’s determination that it is more likely than not the benefit will not be realized.

The Company had $33.7 million and $28.3 million of unrecognized tax benefits at September 30, 2023 and December 31, 2022, respectively. These amounts have been recorded as a reduction to the Company’s deferred tax asset, if recognized they would not have an impact on the effective tax rate due to the existing valuation allowance. Certain of the Company's unrecognized tax benefits could change due to activities of various tax authorities, including possible settlement of audits, or through normal expiration of various statutes of limitations. The Company does not expect a material change in unrecognized tax benefits in the next twelve months.

As of September 30, 2023, due to the carryforward of unutilized net operating losses and research and development credits, the Company is subject to U.S. federal income tax examinations for the tax years 2000 through 2023, and to state income tax examinations for the tax years 2000 through 2023. No interest or penalties related to income taxes have been accrued or recognized as of September 30, 2023.