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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Provision (Benefit) Expense for Income Taxes

Total provision (benefit) for income taxes for the years ended December 31, 2023, 2022 and 2021:


	December 31,
	2023			2022			2021
(Loss) income before taxes
Domestic	$	(46,650	)	$	(65,749	)	$	(17,030	)
Foreign		(978	)		(1,641	)		4,050
Total loss before taxes		(47,628	)		(67,390	)		(12,980	)
Current tax expense (benefit):
Federal		104			—			(165	)
State		58			96			(36	)
Foreign		731			315			744
Total current tax expense		893			411			543
Deferred tax expense (benefit):
Federal		(9,273	)		(16,253	)		(3,506	)
State		(1,177	)		(1,977	)		(464	)
Foreign		(1,099	)		(909	)		170
Change in valuation allowance		10,869			18,664			3,970
Total deferred tax (benefit) expense		(680	)		(475	)		170
Total tax (benefit) expense:
Federal		(9,169	)		(16,253	)		(3,671	)
State		(1,119	)		(1,881	)		(500	)
Foreign		(368	)		(594	)		914
Change in valuation allowance		10,869			18,664			3,970
Total income tax expense (benefit)	$	213		$	(64	)	$	713

The Company had an effective tax rate of (0.45)% and 0.09% for the years ended December 31, 2023 and 2022, respectively. Significant items that are impacting the rate include valuation allowance applied against domestic and certain foreign deferred tax assets (“DTA”), state taxes, permanent book tax difference for foreign sourced income and stock compensation, R&D Credit and FIN 48.

A reconciliation of the provision for income taxes at the federal statutory rate compared to the effective tax rate for the years ended December 31, 2023, 2022 and 2021 is:


	2023			2022			2021
Statutory U.S. federal tax rate	$	(10,002	)	$	(14,152	)	$	(2,726	)
State taxes net of federal benefit		(1,132	)		(1,901	)		(492	)
Non-U.S. earnings taxed at rates different than the U.S. statutory rate		5			(80	)		(150	)
Foreign source earnings, net of associated foreign tax credits		628			486			601
Benefit of tax credits		(501	)		(458	)		(1,569	)
Stock based compensation		27			(2,852	)		(212	)
Change in valuation allowance		10,869			18,664			3,970
Change in unrecognized tax benefits		175			92			710
Other		144			137			581
Total provision (benefit) for income taxes	$	213		$	(64	)	$	713

As of December 31, 2023, our foreign operations held cash totaling $10,293. We have not provided for a U.S. deferred tax liability or foreign withholding tax on the undistributed earnings from our non-U.S. subsidiaries that are considered to be indefinitely reinvested. If such earnings were to be distributed, any U.S. deferred tax liability or foreign withholding tax would not be significant.

Schedule of Reconciliation of Provision for Income Taxes at Federal Statutory Rate

A reconciliation of the provision for income taxes at the federal statutory rate compared to the effective tax rate for the years ended December 31, 2023, 2022 and 2021 is:


	2023			2022			2021
Statutory U.S. federal tax rate	$	(10,002	)	$	(14,152	)	$	(2,726	)
State taxes net of federal benefit		(1,132	)		(1,901	)		(492	)
Non-U.S. earnings taxed at rates different than the U.S. statutory rate		5			(80	)		(150	)
Foreign source earnings, net of associated foreign tax credits		628			486			601
Benefit of tax credits		(501	)		(458	)		(1,569	)
Stock based compensation		27			(2,852	)		(212	)
Change in valuation allowance		10,869			18,664			3,970
Change in unrecognized tax benefits		175			92			710
Other		144			137			581
Total provision (benefit) for income taxes	$	213		$	(64	)	$	713

Schedule of Significant Components of Deferred Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred taxes as of December 31, 2023 and 2022 were:


	December 31,
	2023			2022
Deferred tax assets:
Receivable allowances	$	253		$	356
Accrued expenses		1,262			5,351
S263A capitalizable costs		3,045			461
Inventory reserves		3,611			3,436
Research and development credits		3,974			3,615
Net operating losses		24,208			13,584
Interest expense		2,407			1,218
Stock-based compensation		4,496			3,324
Lease liability		356			384
R&D IRC 174(b) capitalized costs		5,161			3,433
Other		764			650
Total deferred tax assets		49,537			35,812
Valuation allowance		(39,802	)		(28,933	)
Net deferred tax assets		9,735			6,879
Deferred tax liabilities:
Property and equipment		(6,807	)		(5,391	)
Section 481 adjustment		(821	)		—
Patents and trademarks		(1,343	)		(1,304	)
Right of use asset		(292	)		(378	)
Total deferred tax liabilities		(9,263	)		(7,073	)
Total net deferred tax asset (liability)	$	472		$	(194	)

Schedule of Reconciliation of Unrecognized Tax Benefits

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


	2023		2022
Gross unrecognized tax benefits - beginning of period	$	1,431	$	1,337
Increases related to current year tax positions		92		92
Increases related to prior year tax positions		—		2
Gross unrecognized tax benefits - end of period	$	1,523	$	1,431