The U.S. and foreign components of income before income tax expense for the years ended December 31, 2023, 2022 and 2021 are as follows:

The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2023, 2022 and 2021 are as follows:

Reconciliation of Statutory Federal Income Tax Rate to the Effective Income Tax Rate

A reconciliation of the statutory federal income tax expense and the Company’s total income tax expense is as follows:

(1) The gain on revaluation of deferred consideration is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary that is based in Jersey, a jurisdiction where the Company is subject to a zero percent tax rate.

A summary of income taxes paid by jurisdiction for the years ended December 31, 2023, 2022 and 2021 is as follows:

Deferred Tax Assets

A summary of the components of the Company’s deferred tax assets at December 31, 2023 and 2022 is as follows:

	2023		2022
Deferred tax assets:
Capital losses	$	22,489	$	17,541
Accrued expenses		6,000		6,030
Stock-based compensation		2,468		1,526
NOLs—Foreign		1,502		1,609
Goodwill and intangible assets		895		1,085
Unrealized losses		335		3,821
Foreign currency translation adjustment		146		173
NOLs—U.S.		127		255
Operating lease liabilities		96		313
Outside basis differences		—		122
Other		401		341
Deferred tax assets		34,459		32,816

Deferred tax liabilities:
Fixed assets and prepaid assets		296		278
Unremitted earnings—European subsidiaries		186		205
Right of use assets—operating leases		96		313
Deferred tax liabilities		578		796
Total deferred tax assets less deferred tax liabilities		33,881		32,020
Less: Valuation allowance		(22,824)		(21,484)
Deferred tax assets, net	$	11,057	$	10,536

Net Operating and Capital Losses – U.S.

The Company’s tax effected NOLs at December 31, 2023 were $127, which expire in 2024. The net operating loss carryforwards have been reduced by the impact of annual limitations described in the Internal Revenue Code Section 382 that arose as a result of an ownership change.

The Company’s tax effected capital losses at December 31, 2023 were $22,489. These capital losses expire between the years 2024 and 2028. During the year ended December 31, 2023, tax effected capital losses in the amount of $3,278 expired.

Net Operating Losses – Europe

One of the Company’s European subsidiaries generated NOLs outside the U.S. These tax effected NOLs, all of which are carried forward indefinitely, were $1,502 at December 31, 2023.

Valuation Allowance

The Company’s valuation allowance has been established on its net capital losses, unrealized losses and outside basis differences, as it is more-likely-than-not that these deferred tax assets will not be realized.

During the year ended December 31, 2022, the Company released the valuation allowance on its European net operating losses of $1,609 as it is more-likely-than-not that these deferred tax assets will be realized.

Uncertain Tax Positions

Tax positions are evaluated utilizing a two-step process. The Company first determines whether any of its tax positions are more-likely-than-not to be sustained upon examination, based solely on the technical merits of the position. Once it is determined that a position meets this recognition threshold, the position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

In connection with the ETFS Acquisition, the Company accrued a liability for uncertain tax positions and interest and penalties at the acquisition date. The Company also recorded an offsetting indemnification asset provided by ETFS Capital as part of its agreement to indemnify the Company for any potential claims. The table below sets forth the aggregate changes in the balance of these gross unrecognized tax benefits:

(1) In January 2022, an audit of ManJer’s tax returns (a Jersey-based subsidiary) for the years ended December 31, 2014, 2016, 2017 and 2018 were resolved in favor of ManJer. The settlement, as well as the reduction in unrecognized tax benefits from the lapse of the statute of limitations totaling $19,897 during the year ended December 31, 2022 was recorded as an income tax benefit along with an equal and offsetting amount recorded in other losses and gains, net, to recognize a reduction in the indemnification asset.

The gross unrecognized tax benefits and interest and penalties totaling $1,353 at December 31, 2022 is included in other non-current liabilities on the Consolidated Balance Sheets.

The Company is subject to U.S. federal income tax as well as income tax of multiple state, local and certain foreign jurisdictions.

ManJer’s tax returns (a Jersey-based subsidiary) were previously under review for the years ended December 31, 2014, 2016, 2017 and 2018. In January 2022, the audit was resolved in favor of ManJer. In addition, the Company’s tax returns were previously under review by the State of Michigan for the years ended 2017 through 2020. In August 2022, the audit was resolved in favor of the Company.

As of December 31, 2023, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for the years before 2019.

ASC 740-30 Income Taxes provides guidance that U.S. companies do not need to recognize tax effects on foreign earnings that are indefinitely reinvested. The Company repatriates earnings of its foreign subsidiaries and therefore has recognized a deferred tax liability of $186 and $205 at December 31, 2023 and 2022, respectively.