Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of components of income tax expense (benefit)

The provision for income taxes charged to operations consists of the following (in thousands):


	Year Ended December 31,
	2021		2020		2019
Current Expense:
Federal	$	(8)	$	17,248	$	1,709
State	(668)		4,196		803
Foreign	60		—		—
	(616)		21,444		2,512
Deferred Expense (Benefit):
Federal	(9,085)		(2,799)		20,576
State	(1,017)		60		1,746
	(10,102)		(2,739)		22,322
Total Income Tax Expense (Benefit)	$	(10,718)	$	18,705	$	24,834

Schedule of deferred tax assets and liabilities

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


	December 31,
	2021		2020
Deferred Tax Assets:
Bad debts	$	32	$	156
Inventories	2,411		2,050
Accrued warranties	1,242		841
Accrued compensation	315		271
Accrued settlement	—		524

Net operating loss	1,944		506
Equity-based compensation	948		154
Lease liabilities	2,661		—
Premium on capped call	12,356		—
Interest expense carryforward	5,301		—
Other	275		239
Deferred Tax Assets	27,485		4,741
Valuation allowance	(222)		(208)
Deferred Tax Assets, net	27,263		4,533
Deferred Tax Liabilities:
Property, plant, and equipment	(1,083)		(1,043)
Intangible assets	(14,165)		(16,604)
ROU assets	(2,670)		—
Deferred Tax Liabilities	(17,918)		(17,647)
Deferred Tax Asset (Liability), net	$	9,345	$	(13,114)

Schedule of effective income tax rate reconciliation

A reconciliation of income tax expense computed at the federal statutory rate of 21% to actual income tax expense at the Company’s effective rate is as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Income tax rate reconciliation
Income tax expense (benefit) at U.S. statutory rate	$	(12,835)	$	16,333	$	13,562
State income taxes	(1,545)		3,375		2,049
Permanent differences:
Derecognition of tax assets from IRS examination	—		—		9,284
Equity-based compensation	1,542		852		168
Contingent consideration	567		5,553		134
Credits	(620)		(79)		(284)
Other nondeductible expenses	69		437		40
Effect of CARES Act	—		(6,608)		—
Foreign income benefit	—		(1,201)		(155)
Officer’s compensation	435		—		—
Transaction costs	950		—		—
Change in valuation allowance	14		—		(45)
Other	705		43		81
Total Income Tax Expense (Benefit)	$	(10,718)	$	18,705	$	24,834