Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):


	2020		2019		2018
(Loss) income before income tax (benefit) expense:
Domestic	$	(6,954)	$	7,053	$	6,126
Foreign	(7,102)		(3,408)		(2,302)
Total	$	(14,056)	$	3,645	$	3,824

Income tax (benefit) expense
Current:
Federal	$	(434)	$	(303)	$	(448)
State	273		290		126
Total current benefit	$	(161)	$	(13)	$	(322)
Deferred:
Federal	$	(12,856)	$	(3,409)	$	1,070
State	(5,211)		(939)		321
Foreign	—		—		115
Total deferred (benefit) expense provision	$	(18,067)	$	(4,348)	$	1,506
Total tax (benefit) expense provision	$	(18,228)	$	(4,361)	$	1,184

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December 31, 2020, 2019 and 2018 is as follows:


	2020		2019		2018
Federal statutory tax rate	21.00	%	21.00	%	21.00	%
State income taxes, net of federal income tax benefit	14.29	%	(19.47)	%	11.01	%
Non-deductible expenses	(1.42)	%	7.49	%	3.80	%
Compensation expense	65.78	%	(135.12)	%	(12.52)	%
Transaction expenses	—	%	—	%	7.09	%
Tax credits	32.11	%	—	%	(1.87)	%
Adjustment due to adoption of accounting standards	—	%	—	%	(13.84)	%
Uncertain tax position	1.21	%	(3.32)	%	—	%
Return to provision and other deferred tax adjustments	7.38	%	(13.20)	%	—	%
Foreign tax rate differential	(1.64)	%	—	%	7.20	%
Other, net	(0.06)	%	(2.78)	%	0.66	%
Valuation allowance	(8.97)	%	25.74	%	8.44	%
Effective tax rate	129.68	%	(119.66)	%	30.97	%

Schedule of Deferred Tax Assets and Liabilities

At December 31, 2020 and 2019, deferred income tax assets and liabilities consisted of the following (in thousands):


	2020		2019
Deferred tax assets:
Accounts receivable, net	$	1,286	$	1,401
Accrued compensation	5,403		3,718
Net operating loss carry-forwards	33,888		17,687
Tax credits	4,575		—
Stock-based compensation	1,999		2,056
Operating lease liabilities	11,589		6,822
Other	1,470		571
Gross deferred tax assets	60,210		32,255
Less: valuation allowance	(2,631)		(1,261)
Total deferred tax assets	57,579		30,994
Deferred tax liabilities:
Operating lease right-of-use assets	(11,120)		(6,422)
Investment in non-consolidated affiliate	(1,000)		—
Convertible debt discount	(6,636)		—
Intangible assets	(29,268)		(31,840)
Property and equipment	(14,678)		(8,298)
Other	(292)		—
Total deferred tax liabilities	(62,994)		(46,560)
Net deferred income tax liabilities	$	(5,415)	$	(15,566)

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

The following are the unrecognized tax benefits as of December 31, 2020 and 2019 (in thousands):


	For the Years Ended December 31,
	2020		2019
Unrecognized tax benefits - January 1	$	444	$	1,847
Increases in prior year positions	1,020		27
Reversals of prior year positions	—		(1,215)
Increases in tax positions taken in current year	378		—
Statute expirations	(172)		(215)
Unrecognized tax benefits - December 31	$	1,670	$	444