INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of components of income tax expense

The components of income before income taxes were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	(13,465)	$	2,347	$	(9,441)
Foreign	(8,369)		(5,788)		(4,352)
	$	(21,834)	$	(3,441)	$	(13,793)

The components of the income tax (benefit) expense are as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current income tax expense (benefit) :
Federal	$	273	$	—	$	(24)
State	1,041		666		339
Foreign	(26)		225		1,465
Total current expense	$	1,288	$	891	$	1,780
Deferred income tax (benefit) expense:
Federal	$	(2,930)	$	(4,364)	$	369
State	(1,223)		(813)		289
Foreign	(545)		713		(2,199)
Total deferred benefit	(4,698)		(4,464)		(1,541)
Total income tax (benefit) expense	$	(3,410)	$	(3,573)	$	239

Temporary differences to the components of deferred tax assets

Temporary differences that give rise to the components of net deferred tax assets (liabilities) are as follows (in thousands):


	December 31,
	2022		2021
Inventory	$	6,995	$	4,616
Accrued compensation	182		(70)
Stock options	3,882		3,581
Research and development tax credit	1,803		1,276
Research and development expense	6,387		3,291
Deferred revenue	1,411		1,390
Property and equipment	1,533		524
Net operating loss carryforwards	3,764		4,401
Foreign tax credit carryforward	—		64
Sales-type leases	1,800		2,494

Foreign intangible	(14,098)		(11,477)
Foreign net investment in leases	(2,474)		—
Allowance for bad debt	1,319		219
Interest expense limitation	807		—
Other	(598)		(759)
	12,713		9,550
Valuation allowance	(4,997)		(2,788)
Total net deferred tax assets	$	7,716	$	6,762

Effective income tax rate

The Company's income tax (benefit) expense relating to income (loss) for the periods presented differs from the amounts that would result from applying the federal statutory rate to that income (loss) as follows:


	Year Ended December 31,
	2022		2021		2020
Statutory federal tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	1	%	3	%	(4)	%
Non-consolidated investment income	1	%	8	%	1	%
Foreign income inclusion	—	%	—	%	(12)	%
Non-temporary stock option benefit	4	%	49	%	6	%


Other permanent differences	(1)	%	—	%	1	%
Foreign tax rate differences	3	%	10	%	2	%
Change in tax rate	—	%	8	%	1	%
Change in valuation allowance	(11)	%	88	%	(4)	%
Other deferred differences	(1)	%	(25)	%	(2)	%
Transaction costs	—	%	(4)	%	(6)	%
Executive compensation limitation	(9)	%	(65)	%	(6)	%
Research & development credit	6	%	(1)	%	2	%
Equity investment	(1)	%	(8)	%	(4)	%
Change in uncertain tax benefits	—	%	11	%	3	%
Contingent consideration	2	%	10	%	—	%
Other foreign income taxes due	—	%	(2)	%	—	%
Other	1	%	1	%	(1)	%
Effective income tax rate	16	%	104	%	(2)	%

Schedule of unrecognized tax benefits roll forward

The following provides a reconciliation of unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2022		2021
Balance at beginning of period	$	(893)	$	(808)
Additions based on prior year tax positions	(378)		(508)
Additions based on current year tax position	(104)		—
Reductions from lapse in statues of limitation	436		404
Currency translation adjustment	47		19
Other adjustment	28		—
Balance at the end of period	$	(864)	$	(893)