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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of our income tax expense are as follows (in thousands):
Year Ended December 31,
202120202019
Current
Federal$2,678 $3,583 $1,615 
State1,437 2,735 900 
Foreign894 438 452 
Total Current5,009 6,756 2,967 
Deferred
Federal(9,295)(3,628)2,622 
State(820)372 (23)
Foreign— — — 
Total Deferred(10,115)(3,256)2,599 
Total$(5,106)$3,500 $5,566 
Schedule of Effective Income Tax Rate Reconciliation
The difference between the income tax expense at the federal statutory rate and income tax expense in the consolidated statements of operations is as follows:
Year Ended December 31,
202120202019
Federal statutory rate21.0 %21.0 %21.0 %
State income tax expense, net of federal benefits(1.0)1.4 0.6 
Nondeductible meals and entertainment0.5 0.1 0.8 
Foreign-derived intangible income deduction(1.7)(1.4)(0.7)
Valuation allowance1.1 1.3 — 
Research and development tax credits(17.7)(9.4)(7.1)
Tax windfall benefits(18.8)(8.8)(7.5)
Change in tax rate— (0.2)0.4 
Foreign withholding tax 1.9 0.5 0.8 
Nondeductible compensation 1.9 — — 
Other1.7 (0.1)1.2 
Effective rate(11.1)%4.4 %9.5 %
Schedule of Components of Deferred Tax Assets and Liabilities
The components of our net deferred tax assets (liabilities) are as follows (in thousands):
December 31,
20212020
Deferred tax assets, non-current
Provision for credit losses on accounts receivable$847 $1,524 
Depreciation281 261 
Accrued expenses4,749 4,633 
Deferred revenue2,061 1,725 
Operating lease liabilities10,619 11,511 
Stock-based compensation15,461 12,768 
Acquisition costs2,627 2,773 
Subsidiary unit compensation804 249 
Equity investments— 31 
Inventory reserve439 240 
Debt issuance costs402 — 
Net operating losses1,262 1,198 
Tax credits9,405 5,502 
Other577 288 
Total deferred tax assets, non-current prior to valuation allowance49,534 42,703 
Valuation allowance(2,209)(1,568)
Total deferred tax assets, non-current, net of valuation allowance47,325 41,135 
Deferred tax liabilities, non-current
Intangible assets and prepaid patent licenses(2,905)(4,421)
Operating lease right-of-use assets(7,534)(8,043)
Depreciation(6,446)(5,322)
Sales commissions(896)(866)
Contingent liability— (171)
Internally developed software(147)(620)
Equity investments (92)— 
Convertible debt discount (15,758)— 
Total deferred tax liabilities, non-current(33,778)(19,443)
Net deferred tax assets, non-current$13,547 $21,692 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):
Year Ended December 31,
202120202019
Beginning balance$4,228 $3,065 $2,801 
Additions based on tax positions of the current year1,526 1,166 718 
Additions based on tax positions of prior year15 656 18 
Decreases based on tax positions of prior year(10)(259)(253)
Decreases due to lapse of applicable statute of limitations(218)(400)(219)
Ending balance$5,541 $4,228 $3,065