INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Before Income Taxes and Components of Income Tax Provision

Income (loss) before income taxes and the components of the income tax provision (benefit) consisted of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands):


	Year Ended December 31,
	2021		2020		2019
Income (loss) from operations before income taxes:
United States	$	31,085	$	9,182	$	4,311
Foreign	12,870		3,252		(1,786)
Total income from operations before income taxes	$	43,955	$	12,434	$	2,525
Provision for (Benefit from) income taxes:
Current tax expense (benefit):
Federal	$	—	$	—	$	(4)
State	119		133		58
Foreign benefit of net operating losses	(1,616)		(883)		(462)
Other foreign	2,612		1,295		1,632
Total current tax expense	1,115		545		1,224
Deferred tax (benefit) expense:

Federal	—		—		—
Other foreign	1,452		827		(6,300)
Total deferred tax (benefit) expense	1,452		827		(6,300)
Total provision for (benefit from) income taxes	$	2,567	$	1,372	$	(5,076)

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2021 and 2020 (in thousands):


	December 31,
	2021		2020
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	247,658	$	254,745
Allowances for bad debts	45		47
Difference in accounting for:
Revenues	3,515		6,659
Costs and expenses	27,093		23,217
Inventories	1,529		1,466
Acquired intangible assets	—		62

Long-term lease liabilities	6,093		7,432
Gross deferred tax assets	285,933		293,628
Valuation allowance	(273,877)		(278,785)
Deferred tax assets after valuation allowance	12,056		14,843
Deferred tax liabilities:
Difference in accounting for:
Revenues	—		—
Costs and expenses	(779)		(626)
Inventories	(46)		(92)

Right of use asset	(6,021)		(7,324)
Gross deferred tax liabilities	(6,846)		(8,042)
Net deferred tax assets	$	5,210	$	6,801
Recorded as:

Deferred tax assets, net	5,210		6,801

Deferred tax liabilities, net	—		—
Net deferred tax assets	$	5,210	$	6,801

Reconciliation of Income Tax Provision to Statutory Rate

The following table sets forth a reconciliation of our income tax provision (benefit) to the statutory U.S. federal tax amount for the years ended December 31, 2021, 2020, and 2019:


	Year Ended December 31,
	2021		2020		2019
Statutory tax	$	9,230	$	2,611	$	530
Tax credits utilized and expired	892		1,356		815
Foreign operations	1,526		981		921
Change in uncertain tax positions	—		(474)		11,185
Non-deductible expenses and other	294		304		1,373
Stock based compensation	(7,542)		(430)		52
Non-deductible executive compensation	3,464		551		1,049
Non-taxable income from PPP loan forgiveness	(1,638)		—		—
Change in valuation allowance	(3,659)		(3,527)		(21,001)
Provision for (benefit from) income taxes	$	2,567	$	1,372	$	(5,076)

Reconciliation of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020, and 2019 (in thousands):


Unrecognized tax benefits at January 1, 2019	$	1,763
Increases for tax positions taken during a prior period	11,248
Unrecognized tax benefits at December 31, 2019	13,011
Decreases for tax positions taken during a prior period	(818)
Unrecognized tax benefits at December 31, 2020	12,193
Decreases for tax positions taken during a prior period	(524)
Unrecognized tax benefits at December 31, 2021	$	11,669