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Income Tax Disclosure
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block] Income Taxes
The income tax provision consisted of the following for the years ended December 31, 2024, 2023 and 2022 (in thousands):
 Year Ended December 31,
202420232022
Current:
Federal$— $— $— 
State and Foreign1,314 933 932 
1,314 933 932 
Deferred:
Federal— — — 
State— — — 
Income tax provision$1,314 $933 $932 

The differences between the effective tax rates reflected in the total provision for income taxes and the U.S. federal statutory rate of 21% for the years ended December 31, 2024, 2023 and 2022, respectively, were as follows (in thousands):
 Year Ended December 31,
202420232022
Provision at the U.S. federal statutory rate$(4,024)$(11,639)$(17,076)
Increase (decrease) resulting from:
Nondeductible expenses1,059 622 215 
Statutory to GAAP income adjustment(34)28 238 
Noncash share-based compensation2,225 3,221 3,971 
Other275 117 (64)
Foreign withholding taxes792 705 506 
Cancellation of debt income— 2,272 — 
Incremental benefits for tax credits(1,776)(1,599)(1,976)
Change in tax rate/income subject to lower tax rates(61)3,208 (865)
Change related to prior tax years(751)(774)(662)
Change in valuation allowance3,609 4,772 16,645 
Income tax provision$1,314 $933 $932 

The Company’s effective tax rate was (7)%, (2)% and (1)% for the years ended December 31, 2024, 2023 and 2022, respectively.
The tax effects of temporary differences and other tax attributes that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows (in thousands):
 Year Ended December 31,
20242023
Noncurrent deferred taxes:
Property and equipment$(374)$(869)
Noncash share-based compensation2,729 3,363 
Disallowed interest expense4,961 7,347 
Amortization1,345 1,850 
Operating lease right-of-use assets(8,821)(8,818)
Operating lease liabilities11,830 12,312 
R&E tax credit carryforwards20,060 18,461 
Capitalized research and development expenses32,642 22,575 
Deferred revenue1,240 849 
Federal Net Operating Losses ("NOLs")83,875 90,964 
State NOLs2,244 2,267 
State R&E tax credits4,157 4,157 
Foreign NOLs17,184 15,132 
Foreign tax credit carryforward1,600 2,033 
Other(2,659)(3,814)
Total noncurrent deferred tax assets172,013 167,809 
Less: Valuation allowance(171,832)(167,632)
Total net deferred tax asset$181 $177 

The net deferred tax asset is included in other assets, noncurrent in the accompanying Consolidated Balance Sheets.

The Company continues to record a valuation allowance against its U.S. federal, U.S. state, and France net deferred tax balances. This valuation allowance is evaluated periodically and will be reversed partially or in whole if business results and the economic environment have sufficiently improved to support realization of some or all of the Company's deferred tax assets. In performing the analysis throughout 2024, the Company determined there was no sufficient positive evidence to outweigh the current and historic negative evidence to determine that it was more likely than not that the deferred assets would not be realized. Therefore, the Company continues to have a valuation allowance against net deferred tax assets as of December 31, 2024 and 2023.

The U.S. federal net operating losses, R&E tax credit and U.S. foreign tax credit carryforward amount available to be used in future periods, taking into account the Internal Revenue Code Section 382 ("Section 382") annual limitation and current year losses, is approximately $399.4 million, $24.2 million and $1.6 million, respectively. The Company’s net operating losses will begin to expire in 2034, R&E credits will begin to expire in 2031 and foreign tax credits began to expire in 2022. The U.S. net operating losses generated after January 1, 2018 have no expiration. Also included in foreign net operating losses are $68.7 million of French carryforwards which have no expiration.

The Company has federal and state net operating loss carryforwards related to current and prior year operations and acquisitions. Section 382 places certain limitations on the annual amount of U.S. net operating loss carryforwards that can be utilized when a change of ownership occurs. The Company believes the past acquisitions were changes in ownership pursuant to Section 382, however, the federal acquired net operating losses are not subject to limitations. According to French tax law, the net operating loss carryforwards are not subject to ownership change limitations.

Undistributed earnings of the Company’s foreign subsidiaries are considered permanently reinvested and, accordingly, no provision for U.S. federal or state income taxes or non-U.S. withholding taxes has been provided thereon. The cumulative amount of positive undistributed earnings of the Company’s non-U.S. subsidiaries, if any, was minimal for the years ended December 31, 2024 and 2023. The Company is presently investing in international operations located in Europe, North America, United Arab Emirates, Australia, Hong Kong and Singapore. The Company is funding the working capital needs of its
foreign operations through its U.S. operations. In the future, the Company plans to utilize its foreign undistributed earnings, as well as continued funding from its U.S. operations, to support its continued foreign investment.

For the years ended December 31, 2024, 2023 and 2022, the Company had no balance in its reserve for unrecognized tax benefits. The Company continually monitors tax positions and will evaluate if any new positions need to be added during the next twelve months.

The Company has received notification of a U.S. income tax audit for the calendar year 2022. The Company is currently under an income tax audit in Bulgaria for the calendar year 2018. No material taxes are expected to arise from the audits. The Company files tax returns in the U.S. and various foreign jurisdictions. The Company may be subject to U.S. federal income tax examination for the calendar years 2014 through 2023, France tax examination for the calendar years 2022 through 2024, and state and foreign income tax examination for various years depending on the statute of limitation of those jurisdictions.