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Income Taxes | 9 Months Ended
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Sep. 30, 2024
Income Taxes [Abstract] |
Income Taxes | 21. Income Taxes Effective Income Tax Rate – Three and Nine Months Ended September 30, 2024 The Company’s effective income tax rate during the three months ended September 30, 2024 was 216.0%, resulting in income tax expense of $8,351. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to non-deductible loss on extinguishment of convertible notes, a non-deductible civil money penalty of $4,000 relating to the SEC ESG Settlement and non-deductible executive compensation. These items were partly offset by a lower tax rate on foreign earnings. The Company’s effective income tax rate during the nine months ended September 30, 2024 was 35.6% resulting in income tax expense of $21,819. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to non-deductible loss on extinguishment of convertible notes, a non-deductible civil money penalty of $4,000 relating to the SEC ESG Settlement and non-deductible executive compensation. These items were partly offset by a lower tax rate on foreign earnings. Effective Income Tax Rate – Three and Nine Months Ended September 30, 2023 The Company’s effective income tax rate during the three months ended September 30, 2023 was 31.0%, resulting in income tax expense of $5,836. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to an increase in the deferred tax asset valuation allowance on losses recognized on the Company’s investments and non-deductible executive compensation. The Company’s effective income tax rate during the nine months ended September 30, 2023 was 11.4%, resulting in income tax expense of $10,774. The effective income tax rate differs from the federal statutory tax rate of 21% primarily due to a non-taxable gain on revaluation/termination of deferred consideration—gold payments, a $1,353 reduction in unrecognized tax benefits (including interest and penalties) and a lower tax rate on foreign earnings. These items were partly offset by a non-deductible loss on extinguishment of our convertible notes, an increase in the deferred tax asset valuation allowance on losses recognized on our investments and non-deductible executive compensation. Deferred Tax Assets A summary of the components of the Company’s deferred tax assets at September 30, 2024 and December 31, 2023 is as follows:
|  | September 30, 2024 |  | December 31, 2023
Deferred tax assets: |  |  |  |  |  |  |  |
Capital losses |  | $ | 22,825 |  |  | $ | 22,489 |
Accrued expenses |  |  | 4,693 |  |  |  | 6,000 |
Stock-based compensation |  |  | 2,097 |  |  |  | 2,468 |
NOLs—Foreign |  |  | 1,261 |  |  |  | 1,502 |
Goodwill and intangible assets |  |  | 752 |  |  |  | 895 |
Software capitalization |  |  | 162 |  |  |  | 52 |
Operating lease liabilities |  |  | 151 |  |  |  | 96 |
Unrealized losses |  |  | — |  |  |  | 335 |
Foreign currency translation adjustment |  |  | — |  |  |  | 146 |
NOLs—U.S. |  |  | — |  |  |  | 127 |
Other |  |  | 337 |  |  |  | 349 |
Total deferred tax assets |  |  | 32,278 |  |  |  | 34,459 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unrealized gains |  |  | 466 |  |  |  | — |
Fixed assets and prepaid assets |  |  | 390 |  |  |  | 296 |
Foreign currency translation adjustment |  |  | 264 |  |  |  | — |
Right of use assets—operating leases |  |  | 151 |  |  |  | 96 |
Unremitted earnings—European subsidiaries |  |  | 80 |  |  |  | 186 |
Total deferred tax liabilities: |  |  | 1,351 |  |  |  | 578 |
Total deferred tax assets less deferred tax liabilities |  |  | 30,927 |  |  |  | 33,881 |
Less: Valuation allowance |  |  | (22,359 | ) |  |  | (22,824 | )
Deferred tax assets, net |  | $ | 8,568 |  |  | $ | 11,057 |
Capital Losses – U.S. The Company’s tax effected capital losses at September 30, 2024 were $22,825. These capital losses expire between the years 2024 and 2029. Net Operating Losses – Europe One of the Company’s European subsidiaries generated net operating losses (“NOLs”) outside the U.S. These tax effected NOLs, all of which are carried forward indefinitely, were $1,261 at September 30, 2024. Valuation Allowance The Company’s valuation allowance has been established on its net capital losses, as it is more-likely-than-not that these deferred tax assets will not be realized. Income Tax Examinations The Company is subject to U.S. federal income tax as well as income tax of multiple state, local and certain foreign jurisdictions. As of September 30, 2024, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for the years before 2019. Undistributed Earnings of Foreign Subsidiaries 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 $80 and $186 at September 30, 2024 and December 31, 2023, respectively.

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