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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of income (loss) before provision for income taxes | The components of the Company’s income (loss) before provision for income taxes are as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
U.S. | $ | 34,344 |  |  | $ | (61,332) |  |  | $ | 77,778 |
Foreign | (39,296) |  |  | 211 |  |  | — |
Income (loss) before provision for income taxes | $ | (4,952) |  |  | $ | (61,121) |  |  | $ | 77,778 |
Schedule of components of income tax expense (benefit) | The provision for income taxes charged to operations consists of the following (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current expense (benefit): |  |  |  |  |
Federal | $ | 12,826 |  |  | $ | (8) |  |  | $ | 17,248 |
State | 1,630 |  |  | (668) |  |  | 4,196 |
Foreign | 7,725 |  |  | 60 |  |  | — |
| 22,181 |  |  | (616) |  |  | 21,444 |
Deferred expense (benefit): |  |  |  |  |
Federal | (6,160) |  |  | (9,085) |  |  | (2,799) |
State | (960) |  |  | (1,017) |  |  | 60 |
Foreign | (24,445) |  |  | — |  |  | — |
| (31,565) |  |  | (10,102) |  |  | (2,739) |
Total income tax expense (benefit) | $ | (9,384) |  |  | $ | (10,718) |  |  | $ | 18,705 |
Schedule of deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):
| December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Bad debts | $ | 234 |  |  | $ | 32 |
Inventories | 2,780 |  |  | 2,411 |
Accrued warranties | 3,575 |  |  | 1,242 |
Accrued compensation | 637 |  |  | 315 |
Net operating loss | 1,014 |  |  | 1,944 |
Equity-based compensation | 2,240 |  |  | 948 |
Lease liabilities | 4,588 |  |  | 2,661 |
Premium on capped call | 10,792 |  |  | 12,356 |
Interest expense carryforward | 6,750 |  |  | 5,301 |
Capitalized research and development expenses | 1,752 |  |  | — |
Other | 2,435 |  |  | 275 |
Deferred tax assets | 36,797 |  |  | 27,485 |
Valuation allowance | (1,449) |  |  | (222) |
Deferred tax assets, net | 35,348 |  |  | 27,263 |
Deferred tax liabilities: |  |  |
Property, plant, and equipment | (1,592) |  |  | (1,083) |
Intangible assets | (85,927) |  |  | (14,165) |
ROU assets | (3,969) |  |  | (2,670) |
Deferred tax liabilities | (91,488) |  |  | (17,918) |
Deferred tax asset (liability), net | $ | (56,140) |  |  | $ | 9,345 |
Schedule of effective income tax rate reconciliation | A reconciliation of income tax expense computed at the federal statutory rate of 21% to actual income tax expense at the Company’s effective rate is as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Income tax rate reconciliation |  |  |  |  |
Income tax expense (benefit) at U.S. statutory rate | $ | (1,040) |  |  | $ | (12,835) |  |  | $ | 16,333 |
State income taxes | 530 |  |  | (1,545) |  |  | 3,375 |
Officer’s compensation | 740 |  |  | 435 |  |  | — |
Equity-based compensation | 712 |  |  | 1,542 |  |  | 852 |
Contingent consideration | (947) |  |  | 567 |  |  | 5,553 |
Tax credits | (421) |  |  | (620) |  |  | (79) |
Effect of CARES Act | — |  |  | — |  |  | (6,608) |
Non-U.S. income taxed at different rate than U.S. statutory rate | (4,274) |  |  | — |  |  | — |
Non-U.S. tax incentives | (4,183) |  |  | — |  |  | — |
Foreign derived intangible income benefit | (1,668) |  |  | — |  |  | (1,201) |
Transaction costs | 1,628 |  |  | 950 |  |  | — |
Change in valuation allowance | (534) |  |  | 14 |  |  | — |
Nondeductible expenses | 10 |  |  | 69 |  |  | 437 |
Other | 63 |  |  | 705 |  |  | 43 |
Total income tax expense (benefit) | $ | (9,384) |  |  | $ | (10,718) |  |  | $ | 18,705 |

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