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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes The components of the pretax income (loss) are presented in the following table (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. Domestic |  | $ | (146,627 | ) |  | $ | (127,943 | ) |  | $ | (78,849 | )
Foreign |  |  | (5,382 | ) |  |  | (16,219 | ) |  |  | — |
Net loss before taxes |  | $ | (152,009 | ) |  | $ | (144,162 | ) |  | $ | (78,849 | )
The components of the provision for income taxes are presented in the following table (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current income tax provision: |  |  |  |  |  |  |  |  |
Federal |  | $ | (764 | ) |  | $ | 123 |  |  | $ | — |
State |  |  | (140 | ) |  |  | 166 |  |  |  | 100 |
Foreign |  |  | 301 |  |  |  | 66 |  |  |  | 35 |
Total current |  |  | (603 | ) |  |  | 355 |  |  |  | 135 |
Deferred income tax provision: |  |  |  |  |  |  |  |  |
Federal |  |  | 583 |  |  |  | (159 | ) |  |  | (2 | )
State |  |  | 160 |  |  |  | (32 | ) |  |  | 12 |
Total deferred |  |  | 743 |  |  |  | (191 | ) |  |  | 10 |
Total income tax provision |  | $ | 140 |  |  | $ | 164 |  |  | $ | 145 |
T he provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax loss as a result of the following differences:
|  | December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal statutory rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
Adjustments for tax effects of: |  |  |  |  |  |  |  |  |
State taxes, net |  |  | 0.03 |  |  |  | (0.07 | ) |  |  | (0.11 | )
Stock-based compensation |  |  | (1.79 | ) |  |  | (0.48 | ) |  |  | (0.93 | )
Rate differential |  |  | 0.43 |  |  |  | 0.43 |  |  |  | 0.00 |
Foreign taxes |  |  | (0.05 | ) |  |  | (0.05 | ) |  |  | (0.04 | )
Other permanent adjustments |  |  | 0.21 |  |  |  | 0.08 |  |  |  | (1.70 | )
Federal uncertain tax positions |  |  | 0.03 |  |  |  | (0.08 | ) |  |  | 0.00 |
Expiration of tax attribute |  |  | (1.60 | ) |  |  | 0.00 |  |  |  | 0.00 |
Other |  |  | 0.59 |  |  |  | (0.13 | ) |  |  | (0.15 | )
Valuation allowance |  |  | (18.94 | ) |  |  | (20.81 | ) |  |  | (18.25 | )
Effective income tax rate |  |  | (0.09 | )% |  |  | (0.11 | )% |  |  | (0.18 | )%
Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 146,464 |  |  | $ | 131,734 |
Interest |  |  | 12,979 |  |  |  | 11,095 |
Capitalized research and development expenses |  |  | 12,062 |  |  |  | — |
Inventory |  |  | 11,298 |  |  |  | 8,784 |
Lease liability |  |  | 7,975 |  |  |  | 6,216 |
Stock-based compensation |  |  | 5,786 |  |  |  | 4,318 |
Accruals and reserves |  |  | 4,292 |  |  |  | 7,145 |
Legal settlement |  |  | 2,302 |  |  |  | 1,998 |
Income tax credit carryforwards |  |  | 1,566 |  |  |  | 1,574 |
Total deferred tax assets |  |  | 204,724 |  |  |  | 172,864 |
Valuation allowance |  |  | (162,314 | ) |  |  | (127,209 | )
Total deferred tax assets, net of valuation allowance |  |  | 42,410 |  |  |  | 45,655 |
Deferred tax liabilities: |  |  |  |  |  |
Property and equipment |  |  | (19,610 | ) |  |  | (18,404 | )
Goodwill and intangibles |  |  | (15,518 | ) |  |  | (18,439 | )
Right-of-use assets |  |  | (7,250 | ) |  |  | (6,256 | )
Total deferred tax liabilities |  |  | (42,378 | ) |  |  | (43,099 | )
Net deferred tax assets |  | $ | 32 |  |  | $ | 2,556 |
The realization of deferred tax assets is dependent on the Company’s ability to generate sufficient taxable income in future years in the associated jurisdiction to which the deferred tax assets relate. As of December 31, 2022, a valuation allowance of $162.3 million has been established against the deferred tax assets, as the Company has determined that it is currently not likely that these assets will be realized. During the years ended December 31, 2022, 2021 and 2020, the valuation allowance increased by $35.1 million, $39.7 million and $14.4 million, respectively. In determining the need for a valuation allowance, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based on the review of all positive and negative evidence, including a three-year cumulative pretax loss, the Company determined that a full valuation allowance should be recorded against its deferred tax assets, with the exception of the Company’s Texas Temporary Credit for Business Loss Carryforwards. The following table summarizes the changes to unrecognized tax benefits (in thousands):
|  | Year ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Unrecognized tax benefit at the beginning of the year |  | $ | 15,165 |  |  | $ | 2,452 |  |  | $ | 2,452 |
Increases in tax positions for current year relating to acquisitions |  |  | — |  |  |  | 12,713 |  |  |  | — |
Decreases in tax positions for prior years |  |  | (8,929 | ) |  |  | — |  |  |  | — |
Increases in tax positions for current year relating to ongoing operations |  |  | 173 |  |  |  | — |  |  |  | — |
Decreases in tax positions as a result of a lapse of statute of limitations |  |  | (330 | ) |  |  | — |  |  |  | — |
Unrecognized tax benefits at the end of the year |  | $ | 6,079 |  |  | $ | 15,165 |  |  | $ | 2,452 |
At December 31, 2022, 2021 and 2020, $5.6 million, $14.5 million and $2.0 million, respectively, of the Company’s total unrecognized tax benefits, if recognized, would impact the effective income tax rate. In accordance with the disclosure requirements as described in ASC Topic 740, Income Taxes, the Company classifies uncertain tax positions as non-current income tax liabilities unless they are expected to be paid within one year. The Company recognizes interest and penalties related to income tax matters as a component of the income tax provision. As of December 31, 2022 and 2021, there were $0.04 million and $0.2 million in accrued interest and penalties, respectively. There were no accrued interest and penalties as of December 31, 2020. The Company and its subsidiaries are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examination by tax authorities in major jurisdictions for years prior to 2017. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and tax credits were generated and carried forward and make adjustments up to the amount of the carryforwards. The Company is not currently under examination by the Internal Revenue Service, foreign or state and local tax authorities. At December 31, 2022, the Company had federal, state, and foreign net operating loss carryforwards of $487.9 million, $375.5 million and $112.9 million, respectively. Federal and state net operating losses generated after December 31, 2017 of $358.7 million and $74.9 million, respectively, can be carried forward indefinitely. The remaining federal and state net operating losses begin expiring at various dates beginning in 2022 through 2042, while foreign net operating losses in France carryforward indefinitely. At December 31, 2022, the Company had state research and development tax credit carryforwards of $3.2 million. The state research and development tax credits do not have an expiration date and may be carried forward indefinitely. Utilization of the net operating loss and tax credit carryforwards may become subject to annual limitations due to ownership change limitations that could occur in the future as provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), as well as similar state provisions. These ownership changes may limit the amount of the net operating loss and tax credit carryforwards that can be utilized annually to offset future taxable income if the Company experiences a cumulative change in ownership of more than 50% within a three-year testing period. The Company completed formal study through the year ended December 31, 2018 and determined ownership changes within the meaning of IRC Section 382 had occurred. The Company adjusted federal tax attribute carry forwards and deferred tax assets accordingly. The Company will make adjustments to the fully reserved attributes as further studies are completed.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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