INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Before Income Taxes and Components of Income Tax Provision

Income before income taxes and the components of the income tax (benefit) provision consisted of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Income from operations before income taxes:
United States	$	31,322	$	31,085	$	9,182
Foreign	14,015		12,870		3,252
Total income from operations before income taxes	$	45,337	$	43,955	$	12,434
Provision for (Benefit from) income taxes:
Current tax expense (benefit):
Federal	$	—	$	—	$	—
State	121		119		133
Foreign benefit of net operating losses	(880)		(1,616)		(883)
Other foreign	1,283		2,612		1,295
Total current tax expense	524		1,115		545
Deferred tax (benefit) expense:

Federal	—		—		—
State	—		—		—
Other foreign	(10,428)		1,452		827
Total deferred tax (benefit) expense	(10,428)		1,452		827
Total (benefit from) provision for income taxes	$	(9,904)	$	2,567	$	1,372

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2022 and 2021 (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Tax credit and loss carryforwards	$	230,253	$	247,658
Allowances for bad debts	42		45
Difference in accounting for:
Revenues	10,563		3,515
Costs and expenses	27,350		27,093
Inventories	1,289		1,529


Long-term lease liabilities	5,365		6,093
Gross deferred tax assets	274,862		285,933
Valuation allowance	(252,874)		(273,877)
Deferred tax assets after valuation allowance	21,988		12,056
Deferred tax liabilities:
Difference in accounting for:

Costs and expenses	(826)		(779)
Inventories	—		(46)

Right of use asset	(5,312)		(6,021)
Gross deferred tax liabilities	(6,138)		(6,846)
Net deferred tax assets	$	15,850	$	5,210
Recorded as:

Deferred tax assets, net	15,859		5,210

Deferred tax liabilities, net	(9)		—
Net deferred tax assets	$	15,850	$	5,210

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, 2022, 2021, and 2020:


	Year Ended December 31,
	2022		2021		2020
Statutory tax	$	9,521	$	9,230	$	2,611
Tax credits utilized and expired	838		892		1,356
Foreign operations	4,155		1,526		981
Change in uncertain tax positions	(11,323)		—		(474)
Non-deductible expenses and other	630		294		304
Stock based compensation	(3,115)		(7,542)		(430)
Non-deductible executive compensation	2,630		3,464		551
Non-taxable income from PPP loan forgiveness	—		(1,638)		—
Change in valuation allowance	(13,240)		(3,659)		(3,527)
(Benefit from) provision for income taxes	$	(9,904)	$	2,567	$	1,372

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, 2022, 2021, and 2020 (in thousands):


Unrecognized tax benefits at January 1, 2020	$	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
Decreases due to expiration of statute of limitations	(11,233)
Unrecognized tax benefits at December 31, 2022	$	436