Taxation (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
|
Schedule of Loss Before Income Taxes |
The components of loss before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2020 |
|
Domestic |
|
$ |
13,305 |
|
|
$ |
(87,353 |
) |
|
$ |
(129,267 |
) |
Foreign |
|
|
1,610 |
|
|
|
625 |
|
|
|
(457 |
) |
Income (loss) before income tax expense (benefit) |
|
$ |
14,915 |
|
|
$ |
(86,728 |
) |
|
$ |
(129,724 |
) |
|
Schedule of Provision for Income Tax |
The Company recorded a provision for income tax as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2020 |
|
Current expense |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
1,300 |
|
|
$ |
35 |
|
|
$ |
— |
|
State |
|
|
263 |
|
|
|
2 |
|
|
|
— |
|
Foreign |
|
|
419 |
|
|
|
— |
|
|
|
— |
|
Total current expense |
|
$ |
1,982 |
|
|
$ |
37 |
|
|
$ |
— |
|
Deferred expense |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
1,421 |
|
|
$ |
(18,113 |
) |
|
$ |
(10,524 |
) |
State |
|
|
2,755 |
|
|
|
(12,800 |
) |
|
|
(1,709 |
) |
Foreign |
|
|
16 |
|
|
|
185 |
|
|
|
(125 |
) |
Total deferred expense (benefit) |
|
|
4,192 |
|
|
|
(30,728 |
) |
|
|
(12,358 |
) |
Income tax expense (benefit) |
|
$ |
6,174 |
|
|
$ |
(30,691 |
) |
|
$ |
(12,358 |
) |
|
Schedule of Reconciliation of United States Statutory Income Tax Rate to Effective Income Tax Rate |
A reconciliation of the United States statutory income tax rate to the Company’s effective income tax rate is as follows for the years indicated:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2022 |
|
2021 |
|
2020 |
Federal income tax expense |
|
21.0% |
|
21.0% |
|
21.0% |
State taxes, net of federal benefit |
|
0.8% |
|
5.2% |
|
1.3% |
Income attributable to noncontrolling interest |
|
5.8% |
|
(1.4%) |
|
(1.8%) |
Excess tax benefit related to share-based compensation |
|
5.6% |
|
0.6% |
|
0.4% |
Change in fair value of warrant liabilities |
|
0.0% |
|
0.0% |
|
(11.5%) |
Change in fair value of contingent consideration |
|
(4.0%) |
|
0.0% |
|
0.0% |
Foreign rate differential |
|
1.4% |
|
0.0% |
|
0.0% |
R&D credit - Federal |
|
(4.8%) |
|
0.0% |
|
0.0% |
Provision to return - Federal |
|
(3.8%) |
|
0.0% |
|
0.0% |
State rate change impact on deferred taxes |
|
19.0% |
|
9.5% |
|
0.0% |
Other, net |
|
0.5% |
|
0.5% |
|
0.1% |
Effective tax rate |
|
41.4% |
|
35.4% |
|
9.5% |
|
Schedule of Deferred Tax Assets and Liabilities |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Details of the Company’s deferred tax assets and liabilities are as follows:
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
December 31, 2022 |
|
|
December 31, 2021 |
|
Deferred tax assets |
|
|
|
|
|
|
Tax Credits |
|
$ |
3,140 |
|
|
$ |
1,547 |
|
Section 163(j) Limitation Carryover |
|
|
354 |
|
|
|
27 |
|
Acquisition Costs |
|
|
313 |
|
|
|
348 |
|
Federal Net Operating Losses |
|
|
31,160 |
|
|
|
25,284 |
|
State Net Operating Losses |
|
|
6,308 |
|
|
|
4,908 |
|
Foreign Net Operating Losses |
|
|
— |
|
|
|
17 |
|
Other Assets |
|
|
66 |
|
|
|
6,795 |
|
Partnership basis tax differences |
|
|
126,806 |
|
|
|
130,440 |
|
Total deferred tax asset |
|
|
168,147 |
|
|
|
169,366 |
|
Valuation allowance |
|
|
(15,468 |
) |
|
|
(16,394 |
) |
Total deferred tax asset, net of valuation allowance |
|
|
152,679 |
|
|
|
152,972 |
|
Deferred tax liabilities |
|
|
|
|
|
|
Other intangibles - Payix |
|
|
(6,230 |
) |
|
|
(7,712 |
) |
Other liabilities |
|
|
(10,079 |
) |
|
|
— |
|
Total deferred tax liabilities |
|
|
(16,309 |
) |
|
|
(7,712 |
) |
Net deferred tax assets |
|
$ |
136,370 |
|
|
$ |
145,260 |
|
|