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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income From Continuing Operations Before Income Taxes
Income from operations before income taxes consisted of the following:
Year Ended December 31,
(in thousands)20222021
United States$910 $(6,548)
Foreign12,027 1,809 
Total$12,937 $(4,739)
Components of Provision (Benefit) for Income Taxes
Provision (benefit) for income taxes from operations consisted of the following:
Year Ended December 31,
(in thousands)20222021
Current income tax expense:
U.S. federal$4,011 $3,106 
U.S. state869 806 
Foreign3,057 400 
Total$7,937 $4,312 
Deferred income tax expense (benefit):
U.S. federal$(947)$(3,324)
U.S. state(73)(529)
Foreign(1,386)(146)
Total$(2,406)$(3,999)
Total income tax expense (benefit):
U.S. federal$3,063 $(218)
U.S. state796 277 
Foreign1,672 254 
Total$5,531 $313 
Reconciliation Between Effective Income Tax Rate and Statutory Federal Rate
The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows:
Year Ended December 31,
20222021
Statutory Federal rate21.0 %21.0 %
Increase (decrease) resulting from:
Change in valuation allowance - current period activity1.3 (5.5)
Foreign rate differential4.0 3.8 
Stock compensation(0.5)— 
State and local taxes, net4.5 (4.6)
Meals & entertainment1.4 (0.7)
Change in uncertain tax positions(2.9)— 
GILTI, Section 78, FDII, and Section 2503.2 (3.3)
Transaction costs8.3 (16.1)
Earn Out Revaluation0.8 — 
Other items, net1.7 (1.2)
Provision for income taxes42.8 %(6.6)%
Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities contain the following temporary differences:
December 31,
(in thousands)20222021
Deferred tax assets:
Federal & state NOL carryforward$8,218 $8,646 
Research & other credits— 281 
Inventory reserve6,990 4,059 
Transaction costs1,620 1,179 
Reserves and accruals— 464 
Stock based compensation2,531 510 
Accrued benefits & bonuses7,074 1,218 
Bad debt reserve496 726 
Section 163(j) limitation carryforward7,692 5,232 
ROU liabilities11,947 5,410 
Deferred state income tax745 93 
Deferred revenue86 124 
Other2,822 81 
Total deferred tax assets50,221 28,023 
Deferred tax liabilities:
Intangible assets and goodwill45,951 16,006 
ROU asset11,295 5,117 
Fixed assets15,617 6,685 
Deferred state income tax— 119 
Other188 — 
Total deferred liabilities73,051 27,927 
Net deferred tax liabilities before valuation allowance(22,830)96 
Valuation allowance(815)(638)
Net deferred tax liabilities$(23,645)$(542)
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
December 31,
(in thousands)20222021
Balance at beginning of year$— $— 
Additions for tax positions of current year191 — 
Additions for tax positions of prior years3,741 — 
Reductions for tax positions of prior year(238)— 
Lapse of statute of limitations(667)— 
Balance at end of year$3,027 $—