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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Loss Before Provision for Income Taxes | Our loss from continuing operations before income taxes (in thousands) was as follows:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Domestic | $ | (206,344) |  |  | $ | (66,055) |  |  | $ | (32,719) |
Foreign | 3,939 |  |  | 3,978 |  |  | 2,918 |
Loss from continuing operations before income taxes | $ | (202,405) |  |  | $ | (62,077) |  |  | $ | (29,801) |
Schedule of Components of Income Tax Expense (Benefit) | Components of income tax expense (benefit) (in thousands) consist of the following:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | — |  |  | $ | (875) |  |  | $ | (1,469) |
State and local | 2,855 |  |  | 1,788 |  |  | 1,449 |
Foreign | 1,034 |  |  | 1,318 |  |  | 1,027 |
Total current tax expense | 3,889 |  |  | 2,231 |  |  | 1,007 |
Deferred |  |  |  |  |
Federal | (42,156) |  |  | 5,055 |  |  | (5,866) |
State and local | (12,822) |  |  | (2,790) |  |  | (4,021) |
Foreign | 510 |  |  | 92 |  |  | (493) |
Total deferred tax expense (benefit) | (54,468) |  |  | 2,357 |  |  | (10,380) |
Change in valuation allowance | (38,786) |  |  | (47,964) |  |  | 9,856 |
Total tax expense (benefit) | $ | (89,365) |  |  | $ | (43,376) |  |  | $ | 483 |
Schedule of Reconciliation of the U.S. Statutory Tax Rate to our Effective Tax Rate | A reconciliation of the U.S. statutory tax rate to our effective tax rate is presented below:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
U.S. statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
U.S. state income taxes, net of U.S. federal tax benefit | 3.0 | % |  | (0.6) | % |  | 1.9 | %
Foreign earnings at other than U.S. rates | (0.3) | % |  | (0.8) | % |  | 0.3 | %
Change in valuation allowance | 19.2 | % |  | 77.3 | % |  | (33.1) | %
Contingent consideration adjustments | (1.2) | % |  | (0.1) | % |  | (1.0) | %
Non-deductible excess compensation | (6.8) | % |  | (27.8) | % |  | (10.1) | %
Excess tax benefits on stock-based compensation | 7.1 | % |  | 12.2 | % |  | 8.1 | %
Convertible debt extinguishment | — | % |  | (3.4) | % |  | (1.5) | %
Change in uncertain tax positions | (0.5) | % |  | (1.1) | % |  | 0.2 | %
Nondeductible transaction costs | (0.2) | % |  | (1.7) | % |  | — | %
Change in state rate | 2.2 | % |  | 5.2 | % |  | 6.8 | %
Return to provision | (0.1) | % |  | (1.1) | % |  | 6.6 | %
Tax sharing settlement | — | % |  | — | % |  | (1.1) | %
Tax receivable agreement | (0.9) | % |  | (9.1) | % |  | — | %
Research and development tax credit - federal | 1.7 | % |  | — | % |  | — | %
Other, net | — | % |  | (0.1) | % |  | 0.3 | %
Effective tax rate | 44.2 | % |  | 69.9 | % |  | (1.6) | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows:
| As of December 31,
| 2023 |  | 2022
Deferred Tax Assets |  |  |
Start-up and organizational costs | $ | 59 |  |  | $ | 84 |
Goodwill | 17,501 |  |  | 12,281 |
Operating lease liabilities | 10,015 |  |  | 16,362 |
Accrued expenses | 11,530 |  |  | 9,326 |
Stock based compensation | 3,283 |  |  | 1,263 |
Net operating loss carryforwards | 123,147 |  |  | 131,317 |
Federal and state research tax credits | 4,467 |  |  | 1,828 |
Fixed assets | 666 |  |  | 393 |
Interest deduction limitation | 20,460 |  |  | 7,089 |
Outside basis differences | 70 |  |  | 650 |
Other | 7,417 |  |  | 6,677 |
Subtotal | 198,615 |  |  | 187,270 |
Valuation allowance | (32,004) |  |  | (70,790) |
Total deferred tax assets | 166,611 |  |  | 116,480 |
Deferred Tax Liabilities |  |  |
Internally developed software costs | 5,697 |  |  | 11,173 |
Intangible assets | 165,742 |  |  | 89,784 |
Right-of-use assets - Operating | 1,884 |  |  | 12,696 |
Contract fulfillment costs | 3,030 |  |  | 4,501 |
Other | 2,606 |  |  | 2,136 |
Total deferred tax liabilities | 178,959 |  |  | 120,290 |
Net deferred tax liabilities | $ | (12,348) |  |  | $ | (3,810) |
Changes in our valuation allowance (in thousands) were as follows:
| For the Year Ended December 31,
| 2023 |  | 2022
Balance at beginning-of-year | $ | 70,790 |  |  | $ | 101,345 |
Credited to costs and expenses | (38,786) |  |  | (47,964) |
Charged to other accounts (1) | — |  |  | 17,409 |
Balance at end-of-year | $ | 32,004 |  |  | $ | 70,790 |
______________ (1)Amounts charged to other accounts includes $17.3 million charged to shareholders’ equity and $0.1 million charged to discontinued operations for the year ended December 31, 2022.
Schedule of Changes in Unrecognized Tax Benefits | Changes in our unrecognized tax benefits (in thousands) were as follows:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Balance at beginning-of-year | $ | 1,624 |  |  | $ | 609 |  |  | $ | 678 |
Gross increases - tax positions in prior period | 7 |  |  | 616 |  |  | — |
Gross increases - tax positions in current period | 969 |  |  | 399 |  |  | — |
Lapse of statute of limitations | — |  |  | — |  |  | (69) |
Balance at end-of-year | $ | 2,600 |  |  | $ | 1,624 |  |  | $ | 609 |

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