Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Schedule of Components of Income Tax Expense (Benefit) |
(Loss) income before income tax benefit for the years ended December 31, 2021, 2020, and 2019 is as follows (in thousands): | | | | | | | | | | | | | | | | | | | 2021 | | 2020 | | 2019 | (Loss) income before income tax expense (benefit): | | | | | | Domestic | $ | 24,761 | | | $ | (6,954) | | | $ | 7,053 | | Foreign | (39,836) | | | (7,102) | | | (3,408) | | Total | $ | (15,075) | | | $ | (14,056) | | | $ | 3,645 | | | | | | | | Income tax expense (benefit) | | | | | | Current: | | | | | | Federal | $ | 41 | | | $ | (434) | | | $ | (303) | | State | 41 | | | 273 | | | 290 | | Total current tax (benefit) expense | $ | 82 | | | $ | (161) | | | $ | (13) | | Deferred: | | | | | | Federal | $ | (575) | | | $ | (12,856) | | | $ | (3,409) | | State | 1,241 | | | (5,211) | | | (939) | | Foreign | (7,476) | | | — | | | — | | Total deferred benefit provision | $ | (6,810) | | | $ | (18,067) | | | $ | (4,348) | | Total tax benefit provision | $ | (6,728) | | | $ | (18,228) | | | $ | (4,361) | |
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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, 2021, 2020 and 2019 is as follows: | | | | | | | | | | | | | | | | | | | 2021 | | 2020 | | 2019 | Federal statutory tax rate | 21.00 | % | | 21.00 | % | | 21.00 | % | State income taxes, net of federal income tax benefit | 17.77 | % | | 14.29 | % | | (19.47) | % | Transaction Costs | (10.11) | % | | — | % | | — | % | Penalties | (15.61) | % | | (0.01) | % | | 0.08 | % | Non-deductible expenses | (3.29) | % | | (1.41) | % | | 7.41 | % | Compensation expense | (0.96) | % | | 65.78 | % | | (135.12) | % | Inivata acquisition fair value adjustment | 159.14 | % | | — | % | | — | % | Tax credits | 11.63 | % | | 32.11 | % | | — | % | | | | | | | Uncertain tax position | 0.22 | % | | 1.21 | % | | (3.32) | % | Return to provision and other deferred tax adjustments | — | % | | 7.38 | % | | (13.20) | % | Foreign tax rate differential | 2.74 | % | | (1.64) | % | | — | % | Other, net | 0.16 | % | | (0.06) | % | | (2.78) | % | Valuation allowance | (138.07) | % | | (8.97) | % | | 25.74 | % | Effective tax rate | 44.62 | % | | 129.68 | % | | (119.66) | % |
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Schedule of Deferred Tax Assets and Liabilities |
At December 31, 2021 and 2020, deferred income tax assets and liabilities consisted of the following (in thousands): | | | | | | | | | | | | | 2021 | | 2020 | Deferred tax assets: | | | | Accounts receivable, net | $ | 295 | | | $ | 1,286 | | Accrued compensation | 6,171 | | | 5,403 | | Net operating loss carry-forwards | 81,903 | | | 33,888 | | Tax credits | 6,596 | | | 4,575 | | Stock-based compensation | 2,355 | | | 1,999 | | Operating lease liabilities | 19,978 | | | 11,589 | | Interest expense | 886 | | | — | | Other | 2,668 | | | 1,470 | | Gross deferred tax assets | 120,852 | | | 60,210 | | Less: valuation allowance | (33,014) | | | (2,631) | | Total deferred tax assets | 87,838 | | | 57,579 | | Deferred tax liabilities: | | | | Operating lease right-of-use assets | (19,094) | | | (11,120) | | Investment in non-consolidated affiliate | — | | | (1,000) | | Convertible debt discount | (1) | | | (6,636) | | Intangible assets | (108,592) | | | (29,268) | | Property and equipment | (15,389) | | | (14,678) | | Other | — | | | (292) | | Total deferred tax liabilities | (143,076) | | | (62,994) | | Net deferred income tax liabilities | $ | (55,238) | | | $ | (5,415) | |
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Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible |
| | | | | | | | | | | | | 2021 | | 2020 | Unrecognized tax benefits - January 1 | $ | 1,670 | | | $ | 444 | | Increases in prior year positions | 83 | | | 1,020 | | Reversals of prior year positions | — | | | — | | Increases in tax positions taken in current year | 632 | | | 378 | | Statute expirations | (34) | | | (172) | | Unrecognized tax benefits - December 31 | $ | 2,351 | | | $ | 1,670 | |
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