Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of income (loss) before provision for income taxes

The components of the Company’s income (loss) before provision for income taxes are as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
U.S.	$	34,344	$	(61,332)	$	77,778
Foreign	(39,296)		211		—
Income (loss) before provision for income taxes	$	(4,952)	$	(61,121)	$	77,778

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,
	2022		2021		2020
Current expense (benefit):
Federal	$	12,826	$	(8)	$	17,248
State	1,630		(668)		4,196
Foreign	7,725		60		—
	22,181		(616)		21,444
Deferred expense (benefit):
Federal	(6,160)		(9,085)		(2,799)
State	(960)		(1,017)		60
Foreign	(24,445)		—		—
	(31,565)		(10,102)		(2,739)
Total income tax expense (benefit)	$	(9,384)	$	(10,718)	$	18,705

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,
	2022		2021
Deferred tax assets:
Bad debts	$	234	$	32
Inventories	2,780		2,411
Accrued warranties	3,575		1,242
Accrued compensation	637		315
Net operating loss	1,014		1,944
Equity-based compensation	2,240		948
Lease liabilities	4,588		2,661
Premium on capped call	10,792		12,356
Interest expense carryforward	6,750		5,301
Capitalized research and development expenses	1,752		—
Other	2,435		275
Deferred tax assets	36,797		27,485
Valuation allowance	(1,449)		(222)
Deferred tax assets, net	35,348		27,263
Deferred tax liabilities:
Property, plant, and equipment	(1,592)		(1,083)
Intangible assets	(85,927)		(14,165)
ROU assets	(3,969)		(2,670)
Deferred tax liabilities	(91,488)		(17,918)
Deferred tax asset (liability), net	$	(56,140)	$	9,345

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,
	2022		2021		2020
Income tax rate reconciliation
Income tax expense (benefit) at U.S. statutory rate	$	(1,040)	$	(12,835)	$	16,333
State income taxes	530		(1,545)		3,375
Officer’s compensation	740		435		—
Equity-based compensation	712		1,542		852
Contingent consideration	(947)		567		5,553
Tax credits	(421)		(620)		(79)
Effect of CARES Act	—		—		(6,608)
Non-U.S. income taxed at different rate than U.S. statutory rate	(4,274)		—		—
Non-U.S. tax incentives	(4,183)		—		—
Foreign derived intangible income benefit	(1,668)		—		(1,201)
Transaction costs	1,628		950		—
Change in valuation allowance	(534)		14		—
Nondeductible expenses	10		69		437
Other	63		705		43
Total income tax expense (benefit)	$	(9,384)	$	(10,718)	$	18,705