Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of loss before income taxes

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

	For the year ended
	December 31, 2018		December 31, 2017
Domestic	$	(130,609)	$	(7,352)
Foreign		916		(437)
Loss before income taxes	$	(129,693)	$	(7,789)

Schedule of benefit for income taxes

The benefit for income taxes is as follows (in thousands):

	For the year ended
	December 31, 2018		December 31, 2017
Current:
Federal	$	—	$	(1,056)
State		712		229
Foreign		—		43
		712		(784)
Deferred:
Federal		(3,415)		(4,425)
State		(1,100)		(178)
Foreign		(2,124)		56
		(6,639)		(4,547)
Total	$	(5,927)	$	(5,331)

Schedule of effective income tax rate reconciliation

Income tax benefit for the years ended December 31, 2018 and 2017, respectively, differ from the amounts computed by applying the U.S. statutory income tax rate of 21% (in 2018) and 34% (in 2017) to pretax loss as follows (in thousands):

	Year ended December 31,
	2018		2017
U.S. Federal (benefit) provision
At statutory rate	$	(27,235)	$	(2,649)
State taxes		(358)		34
Federal Valuation allowance		23,792		(8,431)
Foreign tax adjustments		(2,332)		81
Disallowed interest expense		—		190
Federal tax rate change		—		7,338
Permanent Adjustments		236		—
Effect of uncertain tax positions		(30)		10
Book income from pre-transaction period		—		(1,932)
Other		—		28
Total	$	(5,927)	$	(5,331)

Deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows (in thousands):

	As of December 31,
	2018		2017
Deferred tax assets:
Federal and state NOL carryforward	$	31,157	$	9,889
Fixed assets		3		462
Accruals		27,946		682
Stock-based compensation		1,639		454
Inventory		667		835
Other intangibles		18,566		9,151
Allowance for customer credits and doubtful accounts		—		843
Deferred rent		—		985
Contribution carryforward		103		—
Business interest limitation		9,844		—
Deferred state income tax		309		231
Other		1,032		186
Total gross deferred tax assets		91,266		23,718
Less: valuation allowance		(77,864)		(19,975)
Total deferred tax assets	$	13,402	$	3,743
Deferred tax liabilities:
Indefinite lived intangibles	$	(10,696)	$	(9,382)
Fixed Assets		(2,586)		—
Prepaids		(120)		(90)
Debt discount		—		(921)
Total gross deferred tax liabilities		(13,402)		(10,393)
Net deferred tax liabilities	$	—	$	(6,650)

Schedule of roll forward of unrecognized tax benefits

The Company has the following activity relating to unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2018			2017
Beginning balance	$	119	$	81
Gross increase - tax positions in prior periods		—		38
Lapse in statutes of limitations		(30)		—
Ending balance	$	89	$	119