Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax Expense

Loss before provision for income taxes consisted of the following for the periods indicated (in thousands):

	December 31, 2021			December 31, 2022
Domestic	$	(233,846	)	$	(196,166	)
International		(1,646	)		(502	)
Total	$	(235,492	)	$	(196,668	)

Schedule of Components of Income Tax Provision

The components of the Company’s income tax provision were as follows for the periods indicated (in thousands):

	December 31, 2021			December 31, 2022
Current:
Federal	$	—		$	—
State		72			101
Foreign		265			69
Total current income tax expense		337			170
Deferred:
Federal		253			(270	)
State		32			(35	)
Foreign		(90	)		(241	)
Total deferred income tax expense (benefit)		195			(546	)
Total income tax provision (benefit)	$	532		$	(376	)

Schedule of Federal Statutory Income Tax Rate Reconciliation

The reconciliation of the Federal statutory income tax provision to the Company’s effective income tax provision is as follows for the periods indicated (in thousands):

	December 31, 2021			December 31, 2022
Income tax benefit at statutory rates	$	(49,454	)	$	(41,300	)
Permanent differences		3			—
Debt extinguishment		33,746			(481	)
Warrant liabilities		11,066			4,455
Stock compensation		10,602			4,410
Change in FV contingent consideration		(3,143	)		—
Other permanent differences		—			3
Foreign rate differential		(44	)		14
State income taxes, net of federal tax benefit		(6,424	)		(5,644	)
Other		264			(389	)
Prior year true-up adjustments		(5,577	)		(352	)
Valuation allowance		9,493			38,908
Total income tax expense (benefit)	$	532		$	(376	)

Components of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities as of the dates indicated were as follows (in thousands):

	December 31, 2021			December 31, 2022
Deferred tax assets:
Sales returns reserve	$	130		$	—
Net operating loss carryforwards		36,250			51,889
Stock options		3,592			1,712
Deferred revenue		15			—
Interest expense limitation		10,151			10,959
Intangibles (definite life)		—			181
Intangibles (indefinite life)		—			21,386
Other		2,364			1,972
Total deferred tax assets before valuation allowance		52,502			88,099
Valuation allowance		(47,316	)		(86,224	)
Net deferred tax assets		5,186			1,875
Deferred tax liabilities:
Fixed assets		(18	)		(3	)
Goodwill		(1,528	)		—
Prepaid expenses		(3,562	)		(1,808	)
Intangibles		(560	)		—
Contingent consideration		(1,084	)		(1,092	)
Other		(130	)		(130	)
Net deferred tax liabilities		(6,882	)		(3,033	)
Deferred tax liability, net	$	(1,696	)	$	(1,158	)

At December 31, 2022, the Company had approximately $216.4 million of gross net operating losses ("NOLs") which expire in fiscal 2034 if not used. The Company also has approximately $121.3 million of apportioned state and local NOLs that expire between 2026 and 2036, depending on the state.