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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The Company’s income (loss) before provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
U.S.	$	(165,784)	$	(84,189)	$	(356)
Foreign	4,485		3,487		3,741
Income (loss) before income taxes	$	(161,299)	$	(80,702)	$	3,385

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	—	$	52	$	—
State	46		126		(87)
Foreign	1,471		1,275		1,512
Total Current	1,517		1,453		1,425
Deferred:
Federal	6		2		2
State	1		1		1
Foreign	10		182		(105)
Total Deferred	17		185		(102)
Tax provision	$	1,534	$	1,638	$	1,323

Schedule of Deferred Tax Assets and Liabilities

The Company’s net deferred tax assets consist of the following (in thousands):


	December 31,
	2023		2022
Net operating loss carryforwards	$	47,406	$	21,443
Stock-based compensation	2,014		2,594
Other accruals and reserves	12,552		4,592
Credits	18,614		14,908
Accrued warranty	759		778
Depreciation and amortization	1,241		1,857
Section 174 Costs	13,391		7,578
Other	2,965		1,541
Operating lease liability	2,842		3,384
Deferred tax asset before valuation allowance	101,784		58,675
Valuation allowance	(97,280)		(53,118)
Deferred tax asset after valuation allowance	4,504		5,557
Deferred contract acquisition costs	(1,287)		(1,763)
Goodwill	(159)		(138)
Right of use asset	(2,479)		(3,066)
Net deferred tax asset (liability)	$	579	$	590

Schedule of Effective Income Tax Rate Reconciliation

The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows:


	Year Ended December 31,
	2023		2022		2021
U.S. federal statutory income tax rate	21.00	%	21.00	%	21.00	%
State tax rate	(0.02)		(0.16)		(2.55)
Meals and entertainment	(0.25)		(0.47)		9.28
Permanent differences	0.24		(0.07)		1.11
Stock-based compensation	(0.43)		0.89		(13.08)
Extinguishment of PPP loan	(0.07)		—		(44.59)
Debt extinguishment costs	—		(8.48)		—
Excess compensation	(0.19)		(1.34)		7.88
Foreign rate differential	(0.31)		(0.76)		17.03
General business credit	0.71		0.78		(17.95)
Valuation allowance	(21.52)		(11.41)		72.82
Change in prior year reserves	—		—		(0.08)
Deferred true-up	(0.33)		(2.02)		(11.76)
Effective tax rate	(1.17)	%	(2.04)	%	39.11	%

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits, excluding related interest and penalties, in December 31, 2021 to December 31, 2023 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	3,725	$	2,746	$	1,864
Increase (decrease) related to prior year tax positions	258		(36)		(37)

Increase related to current year tax positions	1,013		1,015		919
Balance at end of year	$	4,996	$	3,725	$	2,746