Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

The components of the loss before income taxes are as follows:


	Year Ended December 31,
(in thousands)	2022		2021
Germany	$	(7,290)	$	(5,852)
Foreign	(29,908)		(43,905)
Total	$	(37,198)	$	(49,757)

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) are as follows:


	Years Ended December 31,
(in thousands)	2022		2021
Current tax expense:
Germany	721		2,260
Foreign	38		797
Total current tax expense	$	759	$	3,057

Deferred tax expense (benefit):
Germany	6,903		239
Foreign	(670)		15,102
Total deferred tax expense	$	6,233	$	15,341
Income tax expense	$	6,992	$	18,398

Schedule of Effective Income Tax Rate Reconciliation

Reported income tax expense differed from the amounts computed by applying the combined German corporate and trade income tax rate of 30.2% in both 2022 and 2021 to loss before income taxes as a result of the following:


	Year Ended December 31,
(in thousands)	2022		2021
Income tax (benefit) at statutory rate	$	(11,225)	$	(15,014)
Foreign tax rate differential	2,090		10,538
Impairment of goodwill	4,657		4,575
Change in valuation allowance	11,478		16,659
Share-based payment arrangements	469		832
Unrecognized tax benefits	(574)		255
Tax credits	—		340
Other	97		213
Income tax expense	$	6,992	$	18,398

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets (liabilities) are as follows:


	Years Ended December 31,
(in thousands)	2022		2021
Deferred tax assets:
Property and equipment	$	129	$	49
Intangible assets	337		401
Accrued employee compensation and benefits	133		26
Deferred revenue	284		737
Lease liabilities	941		1,289
Interest expense carryforwards	7,573		4,567
Other	1,455		1,753
Capitalized research & development costs	637		—
Tax credit carryforwards	8,884		9,323
Tax loss carryforwards	35,625		38,018
Total deferred tax assets	55,998		56,163
Less: valuation allowance	(50,628)		(40,233)
Deferred tax assets, net of valuation allowance	5,370		15,930

Deferred tax liabilities:
Intangible assets	(3,399)		(7,013)
Right-of-use assets	(883)		(1,006)
Property and equipment	(695)		(356)
Other	(802)		(1,009)
Total deferred tax liabilities	(5,779)		(9,384)

Net deferred tax assets	$	(409)	$	6,546

Schedule of Unrecognized Tax Benefits Roll Forward

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


	Year Ended December 31,
(in thousands)	2022		2021
Balance at the beginning of the year	$	4,731	$	4,593
Increases for current year tax positions	276		242
Increases (decreases) for prior year tax positions	—		(104)

Statute of limitation expirations	(498)		—
Settlements with taxing authorities	—		—
Balance at the end of the year	$	4,509	$	4,731