Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Income Tax Disclosure [Abstract] |
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Schedule of Income (Loss) before Income Tax, Domestic and Foreign |
The components of loss before provision for income taxes were as follows: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | (in thousands) | 2023 | | 2022 | | 2021 | United States | $ | (74,776) | | | $ | (116,272) | | | $ | (46,241) | | Foreign | (37,162) | | | 3,296 | | | 8,528 | | Loss before provision for income taxes | $ | (111,938) | | | $ | (112,976) | | | $ | (37,713) | |
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Schedule of Components of Provision for Income Taxes |
The components of the provision for income taxes were as follows: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | (in thousands) | 2023 | | 2022 | | 2021 | Current tax benefit (expense) | | | | | | Federal | $ | — | | | $ | — | | | $ | — | | State | (376) | | | (9) | | | (257) | | Foreign | (6,365) | | | (2,449) | | | (1,650) | | Total current tax expense | (6,741) | | | (2,458) | | | (1,907) | | Deferred tax benefit (expense) | | | | | | Federal | — | | | — | | | — | | State | — | | | — | | | — | | Foreign | 839 | | | 1,415 | | | 864 | | Total deferred tax benefit | 839 | | | 1,415 | | | 864 | | Provision for income taxes | $ | (5,902) | | | $ | (1,043) | | | $ | (1,043) | |
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Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation at the applicable federal statutory rate to the Company’s effective income tax rate were as follows: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2023 | | 2022 | | 2021 | Federal income taxes at statutory rate | 21.00 % | | 21.00 % | | 21.00 % | State income tax, net of federal benefit | 8.71 | | | 4.06 | | | 11.37 | | Increase in valuation allowance | (59.69) | | | (24.08) | | | (66.51) | | Stock-based compensation | 16.70 | | | 0.92 | | | 31.08 | | U.S. tax on foreign earnings | — | | | (2.03) | | | — | | Tax charges from integration of acquired companies | (6.57) | | | — | | | — | | Research tax credits | 14.98 | | | — | | | — | | Other | (0.40) | | | (0.79) | | | 0.29 | | Effective income tax rate | (5.27) % | | (0.92) % | | (2.77) % |
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Schedule of Deferred Tax Assets and Liabilities |
The tax effects of the temporary differences and carryforwards that give rise to deferred tax assets were as follows: | | | | | | | | | | | | | As of December 31, | (in thousands) | 2023 | | 2022 | Deferred tax assets | | | | Net operating loss carryforwards | $ | 58,901 | | | $ | 58,798 | | Accrued expenses | 4,326 | | | 2,270 | | Stock-based compensation | 15,623 | | | 13,508 | | Operating lease liabilities | 1,041 | | | 1,156 | | Capitalized research costs | 69,279 | | | 28,605 | | Intangible assets | 10,846 | | | — | | Research tax credits | 17,341 | | | — | | Other | 2,748 | | | 2,442 | | Gross deferred tax assets | 180,105 | | | 106,779 | | | | | | Deferred tax liabilities | | | | Fixed assets and intangible assets | (1,321) | | | (311) | | Operating lease right-of-use assets | (756) | | | (1,076) | | Other | — | | | (1,720) | | Gross deferred tax liabilities | (2,077) | | | (3,107) | | | | | | Valuation allowance(1) | (174,863) | | | (101,446) | | Net deferred tax assets(2) | $ | 3,165 | | | $ | 2,226 | |
_________________ (1) The Company maintains a full valuation allowance against the U.S. net deferred tax assets, as it believes that these deferred tax assets do not meet the more likely than not threshold. (2) The net deferred tax asset as of December 31, 2023 and 2022 was recorded within ‘Other noncurrent assets, net’ on the Company’s Consolidated Balance Sheets.
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Summary of Valuation Allowance |
The following represents the changes in the Company’s valuation allowance for the years ended December 31, 2023, 2022, and 2021, respectively: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | (in thousands) | 2023 | | 2022 | | 2021 | | | | | | | Balance at the beginning of the period | $ | 101,446 | | | $ | 74,244 | | | $ | 49,159 | | | | | | | | Charged to net income | 67,030 | | | 27,202 | | | 25,085 | | Charged to other accounts | 6,387 | | | — | | | — | | | | | | | | | | | | | | Balance at the end of the period | $ | 174,863 | | | $ | 101,446 | | | $ | 74,244 | |
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Schedule of Unrecognized Tax Benefits Roll Forward |
The following represents the changes in the Company’s unrecognized income tax benefits for the years ended December 31, 2023, 2022, and 2021, respectively: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | (in thousands) | 2023 | | 2022 | | 2021 | Balance at the beginning of the period | $ | — | | | $ | — | | | $ | — | | Increases related to tax positions taken during the current year | 11,438 | | | — | | | — | | Increases related to tax positions taken during prior years | 4,140 | | | — | | | — | | Balance at the end of the period | $ | 15,578 | | | $ | — | | | $ | — | |
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