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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s management evaluates its tax positions to determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the tax position. Management has analyzed the Company’s tax positions, and concluded that, as of December 31, 2024 , 2023 and 2022 there are no uncertain tax positions taken or expected to be taken that would require recognition or disclosure in the consolidated financial statements. The Company recorded no material interest expense or penalties in its Consolidated Statements of Operations during the years ended December 31, 2024, 2023 and 2022. The Company believes it is no longer subject to examination by United States federal and state taxing authorities for years prior to December 31, 2021 and December 31, 2020, respectively. The Company believes it is no longer subject to examination by foreign taxing authorities for years prior to December 31, 2020.
The components of loss from continuing operations before income taxes for the years ended December 31, 2024, 2023 and 2022 are summarized below (in thousands):
 202420232022
Pre tax book income (loss):
Domestic$(64,655)$(68,000)$(95,425)
Foreign(14,357)(6,735)(6,681)
Total pre tax book income (loss)$(79,012)$(74,735)$(102,106)
The components of income tax expense for the years ended December 31, 2024, 2023 and 2022 are summarized below (in thousands):
 202420232022
Current expense (benefit):
Federal$62 $28 $(36)
Foreign51 244 490 
State463 252 179 
Total current expense (benefit)576 524 633 
Deferred expense (benefit):
Federal164 201 210 
Foreign(265)(499)(1,078)
State213 300 322 
Total deferred expense (benefit)112 2 (546)
Total income tax expense$688 $526 $87 
The Company’s deferred tax assets (liabilities) consisted of the following at December 31, 2024 and 2023 (in thousands):
20242023
Deferred tax assets:
Net operating loss carryforwards$91,471 $84,935 
Excess depreciation and amortization15,427 6,679 
Deferred compensation8,058 7,321 
Lease liability9,867 4,279 
Accruals and reserves6,061 4,607 
Total gross deferred tax asset130,884 107,821 
Less valuation allowance(116,175)(100,532)
Total net deferred tax asset14,709 7,289 
Deferred tax liabilities:
Excess depreciation and amortization— — 
Right of use asset(9,734)(4,111)
Indefinite lived intangible(6,977)(4,838)
Net deferred tax liability$(2,002)$(1,660)
The Company measures deferred tax assets and liabilities using enacted tax rates that apply in the year in which the temporary differences are expected to be recovered or paid. A valuation allowance is provided for deferred tax assets (excluding certain deferred tax liabilities related to indefinite lived intangibles) if management believes that it is more likely than not that these items will either expire before the Company is able to realize their benefit or that future realizability is uncertain. The Company recorded a valuation allowance of $116.2 million and $100.5 million at December 31, 2024 and 2023, respectively against its net deferred tax assets due to the uncertainty surrounding the recoverability of such net deferred tax assets, which is an increase of $15.7 million and $15.7 million in the total valuation allowance during 2024 and 2023, respectively. The Company recognized an income tax benefit of $0.2 million from changes in its valuation allowance for its previously existing deferred tax assets as a result of acquisitions.
A reconciliation of income taxes at the federal statutory rate of 21% to actual income taxes for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):
 202420232022
Income tax benefit at federal statutory rate$(16,499)$(15,718)$(21,468)
State income taxes, net of federal income tax benefit(2,300)(2,384)(2,625)
Foreign rate differential238 (71)(77)
Permanent differences1,913 594 270 
Stock based compensation2,236 3,222 3,358 
Increase in valuation allowance15,643 15,691 20,279 
Canadian Research and Development Tax credits(425)(589)— 
Other(118)(219)350 
Provision for income taxes$688 $526 $87 
For the year ended December 31, 2024, the provision for income taxes includes a non-cash tax charge of approximately $0.6 million relating to changes in the Company's long-term deferred tax liability for indefinite-lived intangibles that are not available to offset certain deferred tax assets in determining changes to the Company's income tax valuation allowance.
At December 31, 2024, the Company had US federal, state, and Foreign net operating loss ("NOL") carryforwards for income tax purposes of approximately $348.0 million, $302.4 million and $17.8 million respectively. These carryforwards may be used to offset future taxable income, with a portion of the federal carryforwards starting to expire in 2035 and the remainder of the US federal carryforwards and foreign carryforwards available indefinitely. A portion of state carryforwards will expire in 2024 and the remainder expiring in future periods or available indefinitely.
Utilization of the net operating loss and credit carryforwards may be subject to an annual limitation due to the ownership limitations provided by the Internal Revenue Code of 1986, as amended (the “Code”), and similar state provisions. Any annual limitation may result in the expiration of net operating losses and credits before utilization.
At December 31, 2024, any undistributed earnings of the Company's foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no deferred taxes have been provided thereon.