XML 50 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table presents components of loss before income taxes for the periods presented (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
United States |  | $ | (80,348) |  |  | $ | (76,280) |  |  | $ | (59,856) |
International |  | 925 |  |  | (13,982) |  |  | (4,429) |
Loss before income taxes |  | $ | (79,423) |  |  | $ | (90,262) |  |  | $ | (64,285) |
Provision for (benefit from) income taxes for the periods presented consisted of (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |
U.S. federal |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. state |  | 2,531 |  |  | 576 |  |  | 262 |
Foreign |  | (243) |  |  | 724 |  |  | (202) |
Total provision for income taxes - Current |  | 2,288 |  |  | 1,300 |  |  | 60 |
Deferred: |  |  |  |  |  |
U.S. federal |  | — |  |  | — |  |  | — |
U.S. state |  | — |  |  | — |  |  | — |
Foreign |  | 53 |  |  | 3,088 |  |  | (11,345) |
Total provision for (benefit from) income taxes - Deferred |  | 53 |  |  | 3,088 |  |  | (11,345) |
Total provision for (benefit from) income taxes |  | $ | 2,341 |  |  | $ | 4,388 |  |  | $ | (11,285) |
The Company recorded current income tax expense during 2023 principally due to U.S. taxable income as a result of IRC Section 174 research and experimental capitalization requirements. The Company offset federal taxable income through the utilization of available net operating loss carryforward attributes. However, the Company was subject to net operating loss utilization limitations in some U.S. state jurisdictions. Income tax expense (benefit) differed from the amount computed by applying the U.S. federal statutory income tax rate of 21% to pre-tax (loss) income for the periods presented as a result of the following (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
U.S. federal tax at statutory rate |  | $ | (16,676) |  |  | $ | (18,957) |  |  | $ | (13,500) |
U.S. state income taxes |  | 2,531 |  |  | 576 |  |  | 262 |
Section 162(m) |  | 6,417 |  |  | 3,851 |  |  | 7,543 |
Global intangible low-taxed income |  | (4,002) |  |  | 4,127 |  |  | — |
Effect of waived tax deductions - Base Erosion and Anti-Abuse Tax |  | 7,751 |  |  | — |  |  | — |
Non-deductible expenses |  | 894 |  |  | 78 |  |  | 1,361 |
Research and development credit |  | (943) |  |  | (1,194) |  |  | (1,181) |
Stock-based compensation |  | 10,829 |  |  | 1,722 |  |  | (25,241) |
Tax benefit from acquisition/reorganizations |  | — |  |  | (3,852) |  |  | (5,877) |
Foreign taxes |  | (383) |  |  | 6,749 |  |  | (4,760) |
Other |  | — |  |  | — |  |  | 20 |
Change in valuation allowance |  | (4,077) |  |  | 11,288 |  |  | 30,088 |
Total provision for (benefit from) income taxes |  | $ | 2,341 |  |  | $ | 4,388 |  |  | $ | (11,285) |
The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 related to the following (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Net operating loss and credit carryforwards |  | $ | 115,137 |  |  | $ | 125,698 |
Capitalized R&D costs |  | 55,167 |  |  | 30,552 |
Accrued liabilities |  | 9,807 |  |  | 10,295 |
Provision for credit losses |  | 1,236 |  |  | 1,143 |
Amortized intangibles |  | 29 |  |  | 3,041 |
Deferred revenue |  | 2,440 |  |  | 1,992 |
Accrued compensation |  | 4,132 |  |  | 3,238 |
Long-term lease liabilities |  | 11,171 |  |  | 12,421 |
Gross deferred tax assets |  | 199,119 |  |  | 188,380 |
Valuation allowance |  | (134,802) |  |  | (135,406) |
Net deferred tax assets |  | 64,317 |  |  | 52,974 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | (7,037) |  |  | (2,737) |
Other |  | (205) |  |  | (556) |
Right of use assets |  | (9,092) |  |  | (10,419) |
Deferred contract acquisition costs |  | (44,217) |  |  | (35,443) |
Gross deferred tax liabilities |  | (60,551) |  |  | (49,155) |
Net deferred taxes |  | $ | 3,766 |  |  | $ | 3,819 |
With the exception of Russia, the Company has not provided for U.S. income taxes on undistributed earnings of its foreign subsidiaries because it intends to permanently re-invest those earnings outside the United States. The Company has plans to liquidate its Russian subsidiary. As such, the Company can no longer assert an intention to permanently re-invest those earnings. The undistributed earnings of the Company’s foreign subsidiaries were immaterial as of December 31, 2023 and 2022 and no U.S. income taxes have been accrued. A valuation allowance is provided for deferred tax assets where the recoverability of the assets is uncertain. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient future taxable income will be generated to utilize the deferred tax assets. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income and the accumulated deficit for the year ended December 31, 2023, the Company has provided a valuation allowance against its U.S. and U.K. net deferred tax assets. The Company has recorded net foreign deferred tax assets associated with its Australia and Portugal operations totaling $3.8 million since management has assessed it is more likely than not that the results of future operations within these jurisdictions will generate sufficient taxable income to realize the deferred tax assets. The Australia and Portugal deferred tax assets cannot increase its U.S. or U.K. valuation allowance. The net change in the valuation allowance for the years ended December 31, 2023 and 2022 was a decrease of $0.6 million and an increase of $13.6 million, respectively. The decrease of the valuation allowance in the current year was primarily attributed to the utilization of net operating losses, an increase in deductible deferred contract acquisition costs, federal bonus tax depreciation, and Aceyus purchased intangibles, offset by the requirement to capitalize research and development costs under IRC Section 174. As of December 31, 2023, the Company had net operating loss carryforwards for federal, state and foreign income tax purposes of $403.4 million, $298.6 million and $14.0 million, respectively, available to reduce future income subject to income taxes. If not utilized, $69.5 million of federal and various amounts of significant state net operating loss carryforwards will begin to expire in 2027 and 2028, respectively, while $333.9 million of federal net operating losses, as well as the foreign net operating losses, do not expire. As of December 31, 2023, the Company also had gross research credit carryforwards for federal and California state tax purposes of $12.9 million and $7.5 million, available to reduce future income subject to income taxes. The federal research credit carryforwards will expire between 2024 and 2043. The California state research credits do not expire. The IRC imposes restrictions on the utilization of net operating losses and credits in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses and credits may be subject to substantial limitation as prescribed under the IRC Sections 382 and 383 and similar state provisions. Events that may cause limitations in the amount of the net operating losses and credits that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. The Company completed a study covering through December 31, 2022, discovering we experienced certain ownership changes prior to 2015, and adjusted the disclosed amounts of our net operating losses and research credit carryforwards for the resulting effect of the IRC Section 382 limitations, as necessary. In the event the Company has further changes in ownership, net operating losses and research and development credit carryforwards, which are fully reserved by the deferred tax asset valuation allowance, could be limited and may expire unutilized. Unrecognized Tax Benefits The table below shows the changes in the gross amount of unrecognized tax benefits for the periods presented (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Unrecognized benefit — beginning of period |  | $ | 9,415 |  |  | $ | 7,643 |  |  | $ | 6,076 |
Gross increases — current year tax positions |  | 1,413 |  |  | 1,773 |  |  | 1,851 |
Gross increases — prior year tax positions |  | 299 |  |  | — |  |  | — |
Gross decreases — prior year tax positions |  | (3) |  |  | (1) |  |  | — |
Settlements with tax authorities |  | — |  |  | — |  |  | (284) |
Unrecognized benefit — end of period |  | $ | 11,124 |  |  | $ | 9,415 |  |  | $ | 7,643 |
As of each of December 31, 2023 and 2022, the Company had unrecognized tax benefits that, if recognized, would impact its effective tax rate by $0.5 million and $0.1 million, respectively. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense, which has cumulatively been immaterial to its financial statements. The Company does not anticipate its total unrecognized tax benefits as of December 31, 2023 will significantly change due to settlement of examination or the expiration of statutes of limitation during the next 12 months. The Company is currently unaware of any uncertain tax positions that could result in significant additional payments, accruals or other material deviation in this estimate over the next 12 months. The Company is subject to taxation in the United States, various states and several foreign jurisdictions. Due to the Company’s net carryover of unused operating losses, all years from 2003 forward remain subject to future examination by the U.S. federal and state tax authorities. The Company’s foreign tax returns are open to audit under the statutes of limitation of the respective foreign countries in which its subsidiaries are located. With the exception of Russia, the Company considers all undistributed earnings of its foreign subsidiaries indefinitely reinvested.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration