Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Domestic and Foreign Components of Income Before Provision for Income Taxes

The domestic and foreign components of income (loss) before provision for (benefit from) income taxes consist of the following:


	Year Ended December 31,
	2022		2021		2020

	(In thousands)
United States	$	(220,060)	$	(128,210)	$	(113,689)
Israel	1,464		1,414		2,214
United Kingdom	1,428		1,145		536
Netherlands	2,514		3,629		3,398
Australia	533		755		1,663
Germany	(10,400)		(6,450)		243
Other (1)	501		339		507
	$	(224,020)	$	(127,378)	$	(105,128)

——————————————

(1)Includes Bulgaria, Canada, France, India, Italy, Japan, Mexico, Singapore, and Spain

Schedule of Provision For Income Taxes

The provision for (benefit from) income taxes consists of the following:


	Year Ended December 31,
	2022		2021		2020

	(In thousands)
Current income taxes:
U.S. Federal	$	—	$	(22)	$	(581)
State and local	431		159		59
Foreign	2,458		3,698		2,408
Total current income taxes	2,889		3,835		1,886

Deferred income taxes:
U.S. Federal	(1,153)		(2,908)		(151)
State and local	79		20		459
Foreign	(88)		(3,351)		272
Total deferred income taxes	(1,162)		(6,239)		580
Total provision for (benefit from) income taxes	$	1,727	$	(2,404)	$	2,466

Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate

The difference between the total income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:


	Year Ended December 31,
	2022		2021		2020
Federal statutory rate	21.00	%	21.00	%	21.00	%
State taxes, net of federal benefit	2.89	%	4.83	%	4.82	%
Non-deductible expenses – stock based compensation	(1.30)	%	(1.73)	%	(1.21)	%

Non-deductible expenses – earn-out	(3.96)	%	—	%	—	%
Non-deductible excess compensation	(0.14)	%	(2.30)	%	(5.52)	%
Foreign taxes	(0.15)	%	(0.86)	%	(3.98)	%
Valuation allowance	(17.33)	%	(26.92)	%	(30.87)	%
Stock based compensation – excess tax benefit / (tax deficiency)	(2.12)	%	6.58	%	9.93	%
Other	0.33	%	1.29	%	3.48	%
Total provision	(0.78)	%	1.89	%	(2.35)	%

Schedule of Federal Deferred Tax Assets and Deferred Tax Liabilities

The effects of temporary differences and federal NOL carryforwards that give rise to significant portions of federal deferred tax assets and deferred tax liabilities as of the dates presented:


	Year Ended December 31,
	2022		2021

	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	141,011	$	141,930
Foreign tax credit	1,222		1,222
R&D tax credit	1,761		1,761
Original issue discount	9,515		13,530
Interest	2,665		4,188
Operating lease liability	760		3,145
Accounts payable and accrued expenses	7,270		7,010
Non-cash compensation	17,271		13,591
R&D capitalization	39,182		—
Allowance for doubtful accounts	5,091		1,280
Total deferred tax assets	225,748		187,657
Less valuation allowance	(187,525)		(107,061)
Deferred tax assets, net of valuation allowance	38,223		80,596
Deferred tax liabilities:
Property and equipment	(15,105)		(12,586)
Intangibles amortization	(13,142)		(15,361)
Goodwill amortization and contingent earn-out adjustments	(7,012)		(6,165)
Convertible notes issuance	—		(41,666)
Outside basis difference in subsidiary stock	(567)		—
Operating lease right-of-use asset	(524)		(1,833)
Total deferred tax liabilities	(36,350)		(77,611)
Net deferred tax assets	$	1,873	$	2,985

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Unrecognized tax benefits balance at January 1	$	2,917	$	3,615	$	2,053
Increase due to business combinations	—		488		—
Gross decrease for tax positions of prior years	—		—		(438)
Gross increase for tax positions of current years	205		376		2,984

Decrease due to settlement	—		(1,562)		(984)
Uncertain tax basis classified as held-for-sale liabilities	(401)		—		—
Gross unrecognized tax benefits at December 31	$	2,721	$	2,917	$	3,615