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INCOME AND OTHER TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Loss before provision for income taxes for the years ended December 31, 2022 and December 31, 2021 consists of the following:


	Year Ended December 31,
	2022		2021
U.S. loss	$	(59,153)	$	(137,589)
Foreign income (loss)	(69)		10
Total current	$	(59,222)	$	(137,579)

Major components of income tax expense (benefit)

The major components of income tax (expense) benefit attributable to loss from operations consists of:


	Year Ended December 31,
	2022		2021
Current:
Federal	$	—	$	50
State	(87)		(33)
Foreign	(4)		(160)
Total current	$	(91)	$	(143)
Deferred:
Federal	—		—
State	—		—
Foreign	—		—
Total deferred	—		—
Total income tax expense	$	(91)	$	(143)

Effective tax rate reconciliation

Income tax (expense) benefit attributable to loss from continuing operations for the years ended December 31, 2022 and 2021 differed from the amounts computed by applying the U.S. federal income tax rates of 21.0%, as a result of the following:


	Year Ended December 31,
	2022	2021
U.S. federal statutory tax rate	21.0%	21.0%
State taxes, net of federal benefit	3.3%	1.8%
Share based compensation	(2.0)%	(0.3)%
Change in fair value of financial instruments and other	(2.7)%	1.4%
Goodwill impairment(1)	—%	(11.4)%
Change in valuation allowance(2)	(24.8)%	(12.5)%
R&D credit	0.7%	0.4%
Prior year true up	5.2%	—%
Other, net	(0.8)%	(0.5)%

Effective tax rate	(0.1)%	(0.1)%

(1)During the year ended December 31, 2021, the Company impaired its goodwill associated with the acquisition of Abacus. A portion of this impairment charge is permanently disallowed for tax purposes.

(2)During the year ended December 31, 2022 and 2021, the Company maintained a full valuation allowance on its deferred tax assets.

Components of deferred tax assets and liabilities

The components of deferred tax assets and liabilities are as follows:


	December 31,
	2022		2021
Deferred tax assets:
Net operating loss and other carryforwards	$	53,997	$	45,557

Inventory provision and UNICAP 263A	8,079		4,191
Lease liability	4,972		5,586
Section 174 capitalized costs	1,733		—
Share-based compensation	976		1,853
Other	2,061		1,020
Total deferred tax assets	$	71,818	$	58,207
Valuation allowance	(67,582)		(52,888)
Total deferred tax assets, net	$	4,236	$	5,319

Deferred tax liabilities:
Right of use assets	(4,063)		(5,110)
Warrants	(173)		(209)
Total deferred tax liabilities	$	(4,236)	$	(5,319)

Net deferred taxes	$	—	$	—

Reconciliation of uncertain tax positions

A reconciliation of the beginning and ending amount of uncertain tax positions as of December 31, 2022 and 2021 is as follows:


Balance at December 31, 2021	$	179
Additions for current year tax positions	40
Additions for prior year tax positions	2
Reductions for prior year tax positions	—
Reductions as a result of settlement with tax authority	—
Balance at December 31, 2022	$	221


Balance at December 31, 2020	$	134
Additions for current year tax positions	52
Additions for prior year tax positions	—
Reductions for prior year tax positions	(7)
Reductions as a result of settlement with tax authority	—
Balance at December 31, 2021	$	179