Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of income before (loss) income tax, domestic and foreign

The following table presents domestic and foreign components of (loss) income before income taxes as follows for the periods indicated:

	Year Ended December 31,
(in thousands)	2023		2022		2021
Domestic	$	(104,161)	$	42,080	$	(378,831)
Foreign	2,272		3,259		(1,808)
(Loss) income before taxes	$	(101,889)	$	45,339	$	(380,639)

Schedule of components of income tax expense (benefit)

The federal, state and foreign components of the income tax (benefit) expense are summarized as follows:

	Year Ended December 31,
(in thousands)	2023		2022		2021
Current:
Federal	$	34	$	407	$	(727)
State	216		306		513
Foreign	3,793		2,189		1,735
Total current income tax expense	4,043		2,902		1,521
Deferred:
Federal	(4,137)		(257)		(2,952)
State	(633)		(166)		(80)
Foreign	(1,046)		(1,364)		(364)
Total deferred tax benefit	(5,816)		(1,787)		(3,396)
Total income tax (benefit) expense	$	(1,773)	$	1,115	$	(1,875)

Schedule of effective income tax rate reconciliation

The effective tax rate of the provision for income tax differs from the federal statutory rate as follows for the periods indicated:

	Year Ended December 31,
(in thousands)	2023				2022				2021
Federal statutory income tax rate	$	(21,398)	21.0	%	$	9,521	21.0	%	$	(79,935)	21.0	%
State taxes, net of federal benefit	(3,083)		3.0		(1,041)		(2.3)		(1,041)		0.3
Officer compensation	844		(0.8)		2,323		5.1		486		(0.1)
Change in fair value of warrants	(2,503)		2.5		(16,452)		(36.3)		58,236		(15.3)
Change in fair value of earn-out shares	—		—		—		—		9,891		(2.6)
Transaction costs	—		—		(32)		(0.1)		3,312		(0.9)
Share-based compensation	2,922		(2.9)		—		—		—		—
Foreign rate differential	338		(0.3)		(10)		—		475		(0.1)
R&D credit	(824)		0.8		(900)		(2.0)		(152)		—
Permanent differences	2,183		(2.1)		—		—		—		—
Change in valuation allowance	18,400		(18.1)		6,242		13.8		4,755		(1.2)
Other	1,348		(1.3)		1,464		3.2		2,098		(0.6)
Income tax (benefit) expense	$	(1,773)	1.7	%	$	1,115	2.4	%	$	(1,875)	0.5	%

Schedule of deferred tax assets and liabilities

The components of the deferred tax assets are as follows for the periods indicated:

(in thousands)	December 31, 2023		December 31, 2022
Deferred income tax assets
State taxes	$	23	$	55
Accrued expenses	5,807		1,608
Inventories	4,944		4,772
Accounts receivable	1,563		625
Section 163(j) limitation	6,031		4,782
Net operating loss carryforwards	12,379		3,680
Share-based compensation	4,032		5,072
Lease liabilities	3,191		4,469
Capitalized research	5,305		1,730
Other	1,611		685
Total deferred income tax assets	44,886		27,478
Deferred income tax liabilities
Goodwill and intangibles	(6,713)		(5,582)
Prepaid expenses	(434)		(435)
Right-of-use assets	(2,506)		(3,966)
Property and equipment	(2,165)		(3,852)
Total deferred tax liabilities	(11,818)		(13,835)
Valuation allowance	(33,239)		(14,839)
Net deferred income tax liabilities	$	(171)	$	(1,196)

The Company’s net deferred tax liability as presented in the consolidated balance sheets consists of the following items as of the dates indicated:

(in thousands)	December 31, 2023		December 31, 2022
Deferred income tax assets	$	531	$	815
Deferred income tax liabilities	(702)		(2,011)
Net deferred income tax liabilities	$	(171)	$	(1,196)

Schedule of income tax contingencies

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

(in thousands)	December 31, 2023		December 31, 2022
Unrecognized tax benefits at beginning of period	$	674	$	210
Increases for tax positions in prior periods	230		260
Decreases for tax positions in prior periods	(112)		(36)
Increases for tax positions in current period	312		240
Total unrecognized tax benefits	$	1,104	$	674