Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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

Loss before income taxes was as follows (in thousands):

The following reconciles the differences between the federal statutory income tax rate in effect in each year to the Company’s effective tax rate:


	Year Ended December 31,
	2023		2022		2021
Statutory federal tax rate	21.00	%	21.00	%	21.00	%
State tax, net of federal tax effect	2.70		1.02		2.64
Stock compensation	(5.86)		(4.07)		3.51
Change in valuation allowance	(19.97)		(17.94)		(27.21)
Other	1.29		(0.03)		(0.06)
Effective tax rate	(0.84)	%	(0.02)	%	(0.12)	%

The components of deferred tax assets and (liabilities) were as follows (in thousands):


	December 31, 2023		December 31, 2022
Deferred tax assets:
Net operating losses	$	44,357	$	42,181
Sales and use tax reserves	187		195
Stock compensation	2,112		3,449
Compensation related accruals	1,749		933
Interest expense limitations	396		487
Leases - Right-of-use liability	11,702		13,150
Other	168		55
Fixed assets	1,013		736
Capitalized research expenses	8,470		5,411
Valuation allowance	(54,867)		(48,723)
Total deferred tax assets - net	15,287		17,874
Deferred tax liabilities:
State taxes	—		(1,267)
Intangible assets	(266)		(342)
Leases - Right-of-use asset	(10,309)		(11,729)
Deferred contract costs	(4,647)		(4,512)
Total deferred tax liabilities	(15,222)		(17,850)
Net deferred taxes assets	$	65	$	24

Activity of the deferred tax asset valuation allowance was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of the year	$	48,723	$	40,101	$	26,052
Charged to costs and expense	6,144		8,622		14,049
Balance at end of the year	$	54,867	$	48,723	$	40,101