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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Loss before income tax provision (benefit) consisted of the following (in thousands):
| For the year ended December 31,
| 2021 |  | 2020 |  | 2019
United States | $ | (41,567) |  |  | $ | (50,193) |  |  | $ | (46,580) |
Foreign | 2,467 |  |  | 1,504 |  |  | (760) |
Total | $ | (39,100) |  |  | $ | (48,689) |  |  | $ | (47,340) |
The provision (benefit) for income taxes consisted of the following (in thousands):
| For the year ended December 31,
| 2021 |  | 2020 |  | 2019
Current |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 98 |  |  | 120 |  |  | 59 |
Foreign | 479 |  |  | (148) |  |  | 252 |
Total Current | $ | 577 |  |  | $ | (28) |  |  | $ | 311 |
Deferred |  |  |  |  |
Federal | $ | (1,252) |  |  | $ | — |  |  | $ | (65) |
State | (374) |  |  | — |  |  | — |
Foreign | (321) |  |  | (263) |  |  | (107) |
Total Deferred | $ | (1,947) |  |  | $ | (263) |  |  | $ | (172) |
Total | $ | (1,370) |  |  | $ | (291) |  |  | $ | 139 |
During the years ended December 31, 2021, 2020 and 2019, we recorded a federal income tax benefit of $1,252,000, $0, and $65,000, respectively. The current year benefit was related to current year acquisitions. As the reversal of the acquired net deferred tax liabilities will be recognized on future tax returns, these provide an objective source of taxable income. Therefore, a corresponding portion of our valuation allowance has been released to reflect this availability, resulting in a federal and state tax benefit reflected in the table above. The prior year federal benefit was primarily related to the allocation of tax expense (benefit) between continuing operations and other comprehensive income (loss) when applying the exception to the ASC 740 intraperiod tax allocation rule. Prior to the adoption of ASU 2019-12, intraperiod tax allocation rules required us to allocate the provision for income taxes between continuing operations and other categories of earnings, such as other comprehensive income. In periods in which we have a year-to-date pre-tax loss from continuing operations and pre-tax income in other categories of earnings, such as other comprehensive income, we must allocate the tax provision to the other categories of earnings and then record a related tax benefit in continuing operations. This exception to the general rule applies even when a valuation allowance is in place at the beginning and end of the year. In response to the COVID-19 pandemic, the Canada Revenue Agency extended the filing due dates allowing for the Scientific Research and Experimental Development (“SR&ED”) reporting deadlines to be extended for six months, but no later than December 31, 2020. We were able to leverage this deadline extension and amended our 2018 Canadian return for the SR&ED credit thus generating a current and deferred foreign tax benefit for the year ended December 31, 2020. The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes consisted of the following (in thousands):
| For the year ended December 31,
| 2021 |  | 2020 |  | 2019
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of: |  |  |  |  |
Tax benefit at federal statutory rate | $ | (8,211) |  |  | $ | (10,225) |  |  | $ | (9,941) |
State taxes, net of federal benefit | (15,350) |  |  | (3,394) |  |  | (4,985) |
Revaluation of deferred tax items due to tax rate change (state) | — |  |  | (404) |  |  | — |
Section 162(m) limitations | 9,008 |  |  | 6,682 |  |  | 2,944 |
Stock-based compensation | (49,020) |  |  | (12,665) |  |  | (14,728) |
Nondeductible permanent items | 1,422 |  |  | 2,001 |  |  | 1,103 |
Tax benefit of federal R&D credit | (3,694) |  |  | (3,509) |  |  | (3,141) |
Valuation allowance | 63,369 |  |  | 21,981 |  |  | 29,068 |
Other | 1,106 |  |  | (758) |  |  | (181) |
Total income tax provision | $ | (1,370) |  |  | $ | (291) |  |  | $ | 139 |
The components of deferred tax assets and liabilities were as follows (in thousands):
| As of December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Property and equipment | $ | 2,770 |  |  | $ | 2,636 |
Accruals and reserves | 48 |  |  | 173 |
Lease liability | 9,014 |  |  | 9,984 |
Compensation and benefits | 15,266 |  |  | 19,035 |
Deferred revenue | 21,709 |  |  | 11,753 |
Net operating loss and credits | 150,448 |  |  | 91,300 |
Interest expense | 4,035 |  |  | 2,521 |
Other | 546 |  |  | 347 |
Total deferred tax assets | 203,836 |  |  | 137,749 |
Valuation allowance | (174,771) |  |  | (111,402) |
Total deferred tax assets | 29,065 |  |  | 26,347 |
Deferred tax liabilities: |  |  |
Property and equipment | (48) |  |  | (10) |
Right-of-use asset | (8,275) |  |  | (8,772) |
Convertible notes | (10,916) |  |  | (13,076) |
Acquired intangibles | (2,022) |  |  | — |
Deferred commissions | (6,761) |  |  | (3,900) |
Other deferred tax liabilities | (321) |  |  | (222) |
Deferred tax liabilities | (28,343) |  |  | (25,980) |
Total | $ | 722 |  |  | $ | 367 |
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2021. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, we recognized a full valuation allowance against our net US deferred tax asset at December 31, 2021, because we believe it is more likely than not that these benefits will not be realized. As of December 31, 2021, we have federal and state net operating loss carryforwards of approximately $481.8 million and $466.9 million, respectively, available to reduce any future taxable income. The federal net operating loss carryforwards will expire in varying amounts beginning in 2034. Federal and some state net operating losses incurred after 2017 will have an indefinite carryforward. The state net operating loss carryforwards will expire in varying amounts beginning in 2021. Additionally, we have total net operating loss carryforwards from international operations of $2.9 million that do not expire. We also have approximately $19.8 million of federal and $3.1 million of state tax credit carryforwards as of December 31, 2021. The federal credits will expire in varying amounts between the years 2034 and 2040. The state credits expire beginning in 2022. Utilization of our net operating loss and tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code, as amended, and similar state provisions. We have analyzed our inventory of tax positions taken with respect to all applicable income tax issues for all open tax years. The gross unrecognized tax benefits, if recognized, would not materially affect the effective tax rate as of December 31, 2021, due to the availability of net operating losses.We are subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2021, tax years for 2017 through 2020 are subject to examination by the tax authorities. Generally, as of December 31, 2021, we are no longer subject to federal, state, local or foreign examinations by tax authorities for years before 2017. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or credit carryforward.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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