XML 30 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 loss before income taxes on continuing operations includes the following components (in thousands):
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
United States | $ | 283,988 |  |  | $ | 399,941 |  |  | $ | 346,244 |
International | 9,993 |  |  | 26,770 |  |  | 8,223 |
Loss before income taxes | $ | 293,981 |  |  | $ | 426,711 |  |  | $ | 354,467 |
The benefit of income taxes on continuing operations for the years ended December 31, 2023, 2022 and 2021 consist of the following (in thousands):
| December 31,
| 2023 |  | 2022 |  | 2021
U.S. Federal |  |  |  |  |
Current | $ | — |  |  | $ | — |  |  | $ | — |
Deferred | 620 |  |  | 1,351 |  |  | 2,082 |
State and local |  |  |  |  |
Current | (116) |  |  | — |  |  | — |
Deferred | 145 |  |  | 315 |  |  | 599 |
Foreign |  |  |  |  |
Current | — |  | — |  | —
Deferred | 230 |  | — |  | —
Income tax benefit | $ | 879 |  |  | $ | 1,666 |  |  | $ | 2,681 |
A reconciliation of the statutory federal rate on continuing operations to the Company’s effective tax rate on continuing operations is as follows:
| December 31,
| 2023 |  | 2022 |  | 2021
Federal rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
State income taxes, net of federal benefit | 2.57 |  |  | 0.07 |  |  | 0.17 |
Other nontaxable of nondeductible items | (0.05) |  |  | — |  |  | — |
Stock-based compensation | (1.33) |  |  | (0.67) |  |  | (2.25) |
Change in fair value of derivative, warrant liability, and gain on extinguishment of convertible notes | — |  |  | (0.08) |  |  | 0.16 |
Amortization of debt discount | — |  |  | (0.67) |  |  | — |
Foreign rate differential | 0.14 |  |  | 0.34 |  |  | 0.13 |
Effect of changes in tax laws or rates enacted in the current period | (0.83) |  |  | — |  |  | — |
Change in valuation allowance | (21.73) |  |  | (18.94) |  |  | (18.99) |
Other | 0.53 |  |  | (0.66) |  |  | 0.54 |
Income tax benefit | 0.30 | % |  | 0.39 | % |  | 0.76 | %
The components of our deferred tax assets are as follows (in thousands):
| December 31,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Net operating losses | $ | 366,837 |  |  | $ | 324,256 |
Accruals and deferrals | 15,115 |  |  | 11,032 |
Stock-based compensation | 16,235 |  |  | 10,225 |
Interest expense limitation | 14,860 |  |  | 13,959 |
Leasing assets | 9,375 |  |  | 9,125 |
Other | 30 |  |  | 49 |
Total deferred tax assets | 422,452 |  |  | 368,646 |
Less: Valuation allowance | (385,461) |  |  | (322,989) |
Net deferred tax assets | $ | 36,991 |  |  | $ | 45,657 |
Deferred tax liabilities: |  |  |
Intangible assets | $ | 29,073 |  |  | $ | 38,929 |
Property and equipment | 7,688 |  |  | 7,391 |
Deferred state income tax | — |  |  | 102 |
Total deferred tax liabilities | $ | 36,761 |  |  | $ | 46,422 |
Net deferred tax assets (liabilities) | $ | 230 |  |  | $ | (765) |
In assessing the Company’s ability to recover its deferred tax assets, the Company evaluated whether it is more likely than not that some portion or the entire deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating losses can be utilized. The Company considered all positive and negative evidence when determining the amount of the net deferred tax assets that are more likely than not to be realized. This evidence includes, but is not limited to, historical earnings, scheduled reversal of taxable temporary differences, tax planning strategies and projected future taxable income. A significant piece of objective negative evidence evaluated was cumulative loss incurred over the three-year period ended December 31, 2023. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on the weight of available evidence, the Company determined that its U.S., French and Spanish deferred tax assets were not realizable on a more-likely-than-not basis and that a full valuation allowance is required. During the year ended December 31, 2023, the Company's valuation allowance increased by $62.5 million. As of December 31, 2023, the Company had federal net operating loss carryforwards of $1,381.0 million. These U.S. federal net operating loss carryforward may be subject to a substantial annual limitation under Section 382 due to ownership changes that may have occurred or that could occur in the future. Approximately $88.1 million of the U.S. federal net operating loss carryforwards begin to expire in 2033 to 2037, if not utilized. The remaining $1,292.9 million can be carried forward indefinitely but are only available to offset 80% of future taxable income. As of December 31, 2023, the Company had state net operating loss carryforwards of $538.5 million. The state net operating loss carryforward of $513.8 million will begin to expire in 2033 through 2043, in varying amounts if not utilized. Approximately $24.7 million can be carried forward indefinitely but are only available to offset 80% of future taxable income. As of December 31, 2023, the Company had foreign net operating loss carryforwards of $172.6 million. With the exception of the loss carryforwards attributable to the Company’s Indian subsidiary which may be carried for eight years, the foreign net operating loss carryforwards will carryforward indefinitely but are subject to a limitation on the amount that can be used to offset taxable income in a given year. Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code, as well as similar state provisions. In general, an “ownership change” as defined by Code Sections 382 and 383, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain shareholders or public groups. Since the Company’s formation, the Company has raised capital through the issuance of capital stock on several occasions which, combined with the purchasing shareholders’ subsequent disposition of those shares have resulted in such an ownership change and could result in an ownership change in the future upon subsequent disposition. The Company conducted an analysis of our stock ownership under Internal Revenue Code Section 382 and 383. The net operating loss carryforwards are subject to annual limitations as a result of the ownership changes in 2015, 2016, 2019 and 2020. Approximately $1.1 million of the net operating loss carryforwards are expected to expire before the utilization. The Company follows the provisions of FASB Accounting Standards Codification (ASC 740-10), Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of uncertain tax positions that have been taken or expected to be taken on an income tax return. No liability related to uncertain tax positions was required to be recorded in the financial statements as of December 31, 2023 and 2022. The Company’s policy is to recognize interest and penalties accrued on uncertain income tax positions in income tax expense in the Company’s consolidated statements of operations and comprehensive loss. The Company had not incurred any material tax interest or penalties as of December 31, 2023 and 2022. The Company does not anticipate any significant change within 12 months of this reporting date of its uncertain tax positions. The Company is subject to taxation in the United States and various state jurisdictions, France, Spain and India. The Company had been delinquent in filings since December 31, 2014. There are no ongoing examinations by taxing authorities at this time. The Company’s tax years 2013 through 2023 will remain open for examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss credits. The Company’s 2020 to 2023 tax years will remain open for examination by the Spain tax authority for four years starting from the day following the date of termination of the voluntary tax filing period. The Company’s 2020 - 2023 tax years remain open for examination in France. The Company's 2022-2023 tax years are open for examination by the Indian tax authority.

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