Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of (Loss) Income before Provision for Income Taxes

(Loss) income before provision for income taxes was generated from the following sources (in thousands):

	Year Ended December 31,
	2021			2020
Domestic	$	(31,301	)	$	4,213
Foreign		473			112
Total (loss) income before provision for income taxes	$	(30,828	)	$	4,325

F-18

Summary of Income Tax Expense (Benefit)

A summary of the income tax expense (benefit) is as follows (in thousands):

	Year Ended December 31,
	2021			2020
Current:
Federal	$	—		$	(133	)
State		5			6
Foreign		152			134
Total current		157			7
Deferred:
Federal		24			155
State		35			24
Foreign		(1	)		(26	)
Total deferred		58			153
Total income tax expense	$	215		$	160

Federal Statutory Rate to Loss Before Income Taxes

A reconciliation of the provision for income taxes to the amount of income tax expense (benefit) that would result from applying the federal statutory rate to the loss before income taxes is as follows:

	Year Ended December 31,
	2021				2020
Federal statutory rate		21.0		%		21.0		%
State tax, net of federal benefit		4.3				2.7
Equity compensation		0.4				(1.8	)
International tax items		0.1				(0.1	)
Foreign taxes		(0.5	)			2.5
State NOL true-up		1.2				2.5
Miscellaneous		(0.4	)			1.3
Effect of change in rate		0.8				3.5
Change in valuation allowance		(27.6	)			(27.9	)
		(0.7	)	%		3.7		%

F-19

Components of Deferred Tax Assets and Liabilities

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

	Year Ended December 31,
	2021			2020
Deferred income tax assets
Net operating loss carry forwards	$	47,204		$	42,127
Credit carry forwards		3,027			3,027
Fixed assets		84			116
Intangibles		6,259			3,346
Equity-based compensation		208			343
Nondeductible accruals		532			365
Various reserves		-			23
Deferred rent		33			94
Other		7			2
Valuation allowance		(57,346	)		(49,405	)
Total deferred income taxes - net		8			38
Deferred income tax liabilities
Foreign intangibles		-			(1	)
Unrealized translation gain/loss		(45	)		3
Prepaid expenses		(80	)		(99	)
Total deferred income liabilities		(125	)		(97	)
Net deferred income tax (liabilities)	$	(117	)	$	(59	)

Gross Unrecognized Tax Benefits Changes in Balances

The Company’s gross unrecognized tax benefits as of December 31, 2021 and 2020 and the changes in those balances are as follows (in thousands):

	Year Ended December 31,
	2021			2020
Beginning balance	$	428		$	428
Other		(16	)		—
Gross unrecognized tax benefits, ending balance	$	412		$	428