Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the provision for income taxes (in thousands):


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	—	$	(6)	$	(44)
State	24		14		12
Total current	$	24	$	8	$	(32)
Deferred:
Federal	$	68	$	94	$	138
State	104		102		54
Foreign	(309)		—		—
Total deferred	$	(137)	$	196	$	192
Income tax expense (benefit)	$	(113)	$	204	$	160

Schedule of Effective Income Tax Rate Reconciliation

The difference between the provision for income taxes and the amount computed by applying the statutory federal income tax rate of 21% to loss before income taxes is as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Statutory rate applied to pre-tax loss	$	(12,876)	$	(3,533)	$	(4,755)
Permanent items	141		256		115
Foreign tax provision	(165)		—		—
Stock compensation related expenses	(3,842)		(449)		274
Compensation limitations	682		—		—
Transaction costs	(453)		—		—
Fair value adjustments	2,106		—		—

State taxes	(2,673)		(458)		(290)
Valuation allowance	16,965		4,462		4,816
Other	2		(74)		—
Income tax expense (benefit)	$	(113)	$	204	$	160

Schedule of Deferred Tax Assets and Liabilities

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


	As of December 31,
	2021		2020
Deferred tax assets:
Compensation and bonuses	$	2,955	$	1,707
Intangible assets	—		2,303
Stock-based compensation	4,225		620
Accrued expenses and other	847		863
Net operating loss carryforwards	32,625		20,242
Unearned revenue	3,499		3,179
Other carryforwards	34		30
Interest expense limitation	2,286		1,652
Lease liabilities	8,868		—
Deferred rent	—		641
Valuation allowance	(41,143)		(24,178)
Deferred tax assets, net of valuation allowance	$	14,196	$	7,059
Deferred tax liabilities:
Deferred implementation costs	$	(2,808)	$	(2,707)
ROU assets	(7,113)		—
Fixed assets	(3,603)		(2,723)
Intangible Assets	(1,319)		—
Goodwill	(3,691)		(2,397)
Deferred tax liabilities	$	(18,534)	$	(7,827)
Total deferred taxes	$	(4,338)	$	(768)