Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

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

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

	Year Ended December 31,
(in thousands)	2022		2021
Domestic	$	43,641	$	(375,542)
Foreign	1,391		(1,808)
Income (loss) before taxes	$	45,032	$	(377,350)

Schedule of components of income tax expense (benefit)

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

	Year Ended December 31,
(in thousands)	2022		2021
Current:
Federal	$	407	$	(727)
State	306		513
Foreign	1,722		1,735
Total current income tax expense	2,435		1,521
Deferred:
Federal	(257)		(3,319)
State	(166)		(80)
Foreign	(1,364)		(364)
	(1,787)		(3,763)
Total income tax expense (benefit)	$	648	$	(2,242)

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)	2022				2021
Federal statutory income tax rate	$	9,443	21.0	%	$	(79,243)	21.0	%
State taxes, net of federal benefit	(1,041)		(2.3)		(1,041)		0.3
Officer compensation	2,324		5.2		486		(0.1)
Change in fair value of warrants	(16,452)		(36.6)		58,236		(15.4)
Change in fair value of earn-out shares	—		—		9,891		(2.6)
Transaction Costs	(32)		(0.1)		3,312		(0.9)
Foreign rate differential	(85)		(0.2)		475		(0.1)
R&D credit	(900)		(2.0)		(152)		—
Change in valuation allowance	5,914		13.2		4,064		(1.1)
Other	1,477		3.3		1,730		(0.5)
Income tax expense (benefit)	$	648	1.5	%	$	(2,242)	0.6	%

Schedule of deferred tax assets and liabilities

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

	Year Ended December 31,
(in thousands)	2022		2021
Deferred income tax assets
State taxes	$	55	$	69
Accrued expenses	1,608		3,610
Inventories	4,772		1,905
Accounts receivable	625		639
Section 163(j) limitation	4,782		3,224
Net operating loss carryforwards	3,680		5,354
Stock-based compensation	5,072		1,883
Lease liabilities	4,469		4,104
Other	685		220
Total deferred income tax assets	25,748		21,008
Deferred income tax liabilities
Goodwill and intangibles	(3,852)		(7,922)
Prepaid expenses	(435)		(526)
Right-of-use Assets	(3,966)		(3,733)
Property and equipment	(3,852)		(3,134)
Total deferred tax liabilities	(12,105)		(15,315)
Valuation allowance	(14,839)		(8,924)
Net deferred income tax liabilities	$	(1,196)	$	(3,231)

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, 2022		December 31, 2021
Deferred income tax assets	$	815	$	330
Deferred income tax liabilities	(2,011)		(3,561)
Net deferred income tax liability	$	(1,196)	$	(3,231)

Summary of income tax contingencies

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

(in thousands)	December 31, 2022		December 31, 2021
Unrecognized tax benefits at beginning of period	$	210	$	270
Increases for tax positions in prior periods	260		$	—
Decreases for tax positions in prior periods	(36)		$	(60)
Increases for tax positions in current period	240		$	—
Total unrecognized tax benefits	$	674	$	210