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Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income (Loss) Before Benefit From Income Taxes

The components of net income/(loss) before benefit from income taxes for the years ended December 31, 2022, 2021, and 2020 are as follows:


	December 31,
	2022		2021		2020
United States	$	6,819	$	(63,686)	$	(50,764)
Foreign Operations	6,266		7,711		5,314
Net income (loss) before benefit from taxes	$	13,085	$	(55,975)	$	(45,450)

Schedule of Components of the (Benefit) Provision for Income Taxes

The components of the benefit from income taxes are as follows:


	December 31,
	2022		2021		2020
Current tax (benefit) provision
Federal	$	1,094	$	544	$	(220)
Foreign	3,497		3,715		1,672
State and Local	2,001		1,865		784
Current tax benefit	6,592		6,124		2,236
Deferred tax (benefit) provision
Federal	(661)		(5,812)		(8,467)
Foreign	(1,185)		(1,373)		102
State and local	(7,034)		(2,477)		(6,947)
Deferred tax benefit	(8,880)		(9,662)		(15,312)
Benefit from income taxes	$	(2,288)	$	(3,538)	$	(13,076)

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented:


	December 31,
	2022	2021	2020
U.S. federal statutory income tax rate	21.0%	21.0%	21.0%
State income taxes, net of federal benefit	(41.3)	1.7	13.9
Effect of non-U.S. operations	(0.7)	(0.4)	(0.3)
Section 162(m)	24.4	(10.9)	—
Stock-based compensation	23.8	(0.9)	—
Transaction expenses	(14.7)	(1.4)	—
US tax on foreign earnings	(6.5)	(5.7)	—
R&D and other credits	(23.3)	3.7	—
Change in valuation allowance	—	(1.0)	—
CARES Act1	—	—	(1.8)
Other	(0.2)	0.2	(4.0)
Benefit from income taxes	(17.5)%	6.3%	28.8%

The income tax benefit for December 31, 2022 relates primarily to R&D credit, favorable change in state tax rates, and deductible transaction costs. The income tax benefit for the years ended December 31, 2021 and 2020 relates principally to current period U.S. losses.

On August 16, 2022, Congress passed the Inflation Reduction Act of 2022. The key tax provisions applicable to us are a 15% corporate minimum tax on book income and a 1% excise tax on stock repurchases effective January 1, 2023. We do not expect these tax law changes to have a material impact on our consolidated financial position; however, we will continue to evaluate their impact as further information becomes available.

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1In the U.S., on March 27, 2020, the President signed the CARES Act into law to provide economic stimulus during a country-wide shutdown.

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax liability for the years ended December 31, 2022 and 2021 are as follows:


	December 31,
	2022		2021
Deferred tax assets
Net Operating Loss (“NOL”) and other carryforwards	$	11,187	$	29,187
Stock-based compensation	4,886		7,962
Interest expense carryforward	3,774		7,528
Tax credit carryforward	3,032		2,447
Lease liability	7,582		2,237
Payroll and commissions	2,812		293
Allowance for doubtful accounts	1,764		343
Section 174 capitalized costs	8,573		—
Accrued expenses and other liabilities	1,231		32
Total deferred tax assets	44,841		50,029
Valuation allowance	(3,217)		(3,421)
Net deferred tax assets	41,624		46,608
Deferred tax liabilities
Depreciation and amortization	(42,962)		(63,935)
Outside basis difference	(36,056)		(35,246)
Right of use asset	(6,080)		—
Capital lease assets	—		(62)
Total deferred tax liabilities	(85,098)		(99,243)
Net deferred tax liability	$	(43,474)	$	(52,635)

Summary of Valuation Allowance

The changes in valuation allowances against deferred income tax assets were as follows:


	December 31,
	2022		2021
Balance at beginning of year	$	3,421	$	—
Additions charged to income tax expense	296		815
Reductions credited to income tax expense	(500)		—
Additions charged to other accounts	—		2,606
Balance at end of year	$	3,217	$	3,421

Schedule of Unrecognized Tax Benefits Roll Forward

Unrecognized tax benefits activity is summarized below:


	December 31,
	2022		2021
Balance at beginning of year	$	932	$	—
Additions based on tax positions related to the current year	896		531
Additions based on tax positions related to prior years	980		401
Reductions due to lapse in status of limitations and settlements	—		—
Balance at end of year	$	2,808	$	932