Income Tax (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, loss before income taxes includes the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	(16,749)	$	(62,539)	$	(109,393)
Foreign	(4,822)		(3,170)		(1,402)
Loss before income taxes	$	(21,571)	$	(65,709)	$	(110,795)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	532	$	—	$	—
State	1,456		563		252
Total current provision	1,988		563		252
Deferred:
Federal	12		(339)		(2,280)
State	(25)		(110)		(966)
Foreign	—		(145)		(142)
Total deferred benefit	(13)		(594)		(3,388)
Total provision (benefit) for income taxes	$	1,975	$	(31)	$	(3,136)

Schedule of Effective Income Tax Rate Reconciliation

The provision (benefit) for income taxes differs from the amounts computed by applying the statutory federal income tax rate of 21% to pretax loss as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Tax benefit at federal statutory rate	$	(4,530)	$	(13,799)	$	(23,267)
State taxes, net of federal benefits	1,636		(609)		(3,498)
Transaction costs	—		(731)		369
Stock-based compensation	1,747		3,897		2,018
Warrants and earn-outs	226		(15)		(1,710)
Non-deductible officers' compensation	6,386		2,881		8,352
Change in valuation allowance	1,330		7,794		15,971
Research and development credits	(5,398)		—		—
Non-deductible expenses	714		613		—
Other, net	(136)		(62)		(1,371)
Total	$	1,975	$	(31)	$	(3,136)

Schedule of Deferred Tax Assets and Liabilities

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


	As of December 31,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	53,309	$	67,214
Research and other credits	3,779		—
Capitalized research and development	15,106		—
Accrued expenses and reserves	2,164		1,952
Stock-based compensation	3,572		4,079
Inventory	1,890		2,338
Other intangible assets	350		487
Deferred revenue	124		17
Operating lease liabilities	2,615		1,382
Other deferred tax assets	87		553
Total gross deferred tax assets	82,996		78,022
Less valuation allowance	(70,506)		(69,357)
Total deferred tax assets	12,490		8,665
Deferred tax liabilities:
Other intangible assets	(4,777)		(5,623)
Fixed assets	(1,532)		(1,722)
Prepaid expenses	(1,825)		—
Operating lease right-of-use assets	(2,519)		(1,285)
Other deferred tax liabilities	(1,859)		(70)
Total deferred tax liabilities	(12,512)		(8,700)
Net deferred tax liabilities	$	(22)	$	(35)

Schedule of Unrecognized Tax Benefits Roll Forward

Changes in unrecognized tax benefits for the year ended December 31, 2023, excluding interest and penalties, were as follows (in thousands):


Balance at December 31, 2022	$	—
Increases in balances related to prior year tax positions	1,357
Increases in balances related to current year tax positions	956
Balance at December 31, 2023	$	2,313