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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | (Loss) income before income tax benefit for the years ended December 31, 2021, 2020, and 2019 is as follows (in thousands):
| 2021 |  | 2020 |  | 2019
(Loss) income before income tax expense (benefit): |  |  |  |  |
Domestic | $ | 24,761 |  |  | $ | (6,954) |  |  | $ | 7,053 |
Foreign | (39,836) |  |  | (7,102) |  |  | (3,408) |
Total | $ | (15,075) |  |  | $ | (14,056) |  |  | $ | 3,645 |
Income tax expense (benefit) |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 41 |  |  | $ | (434) |  |  | $ | (303) |
State | 41 |  |  | 273 |  |  | 290 |
Total current tax (benefit) expense | $ | 82 |  |  | $ | (161) |  |  | $ | (13) |
Deferred: |  |  |  |  |
Federal | $ | (575) |  |  | $ | (12,856) |  |  | $ | (3,409) |
State | 1,241 |  |  | (5,211) |  |  | (939) |
Foreign | (7,476) |  |  | — |  |  | — |
Total deferred benefit provision | $ | (6,810) |  |  | $ | (18,067) |  |  | $ | (4,348) |
Total tax benefit provision | $ | (6,728) |  |  | $ | (18,228) |  |  | $ | (4,361) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December 31, 2021, 2020 and 2019 is as follows:
| 2021 |  | 2020 |  | 2019
Federal statutory tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
State income taxes, net of federal income tax benefit | 17.77 | % |  | 14.29 | % |  | (19.47) | %
Transaction Costs | (10.11) | % |  | — | % |  | — | %
Penalties | (15.61) | % |  | (0.01) | % |  | 0.08 | %
Non-deductible expenses | (3.29) | % |  | (1.41) | % |  | 7.41 | %
Compensation expense | (0.96) | % |  | 65.78 | % |  | (135.12) | %
Inivata acquisition fair value adjustment | 159.14 | % |  | — | % |  | — | %
Tax credits | 11.63 | % |  | 32.11 | % |  | — | %
Uncertain tax position | 0.22 | % |  | 1.21 | % |  | (3.32) | %
Return to provision and other deferred tax adjustments | — | % |  | 7.38 | % |  | (13.20) | %
Foreign tax rate differential | 2.74 | % |  | (1.64) | % |  | — | %
Other, net | 0.16 | % |  | (0.06) | % |  | (2.78) | %
Valuation allowance | (138.07) | % |  | (8.97) | % |  | 25.74 | %
Effective tax rate | 44.62 | % |  | 129.68 | % |  | (119.66) | %
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2021 and 2020, deferred income tax assets and liabilities consisted of the following (in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Accounts receivable, net | $ | 295 |  |  | $ | 1,286 |
Accrued compensation | 6,171 |  |  | 5,403 |
Net operating loss carry-forwards | 81,903 |  |  | 33,888 |
Tax credits | 6,596 |  |  | 4,575 |
Stock-based compensation | 2,355 |  |  | 1,999 |
Operating lease liabilities | 19,978 |  |  | 11,589 |
Interest expense | 886 |  |  | — |
Other | 2,668 |  |  | 1,470 |
Gross deferred tax assets | 120,852 |  |  | 60,210 |
Less: valuation allowance | (33,014) |  |  | (2,631) |
Total deferred tax assets | 87,838 |  |  | 57,579 |
Deferred tax liabilities: |  |  |
Operating lease right-of-use assets | (19,094) |  |  | (11,120) |
Investment in non-consolidated affiliate | — |  |  | (1,000) |
Convertible debt discount | (1) |  |  | (6,636) |
Intangible assets | (108,592) |  |  | (29,268) |
Property and equipment | (15,389) |  |  | (14,678) |
Other | — |  |  | (292) |
Total deferred tax liabilities | (143,076) |  |  | (62,994) |
Net deferred income tax liabilities | $ | (55,238) |  |  | $ | (5,415) |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible |
| 2021 |  | 2020
Unrecognized tax benefits - January 1 | $ | 1,670 |  |  | $ | 444 |
Increases in prior year positions | 83 |  |  | 1,020 |
Reversals of prior year positions | — |  |  | — |
Increases in tax positions taken in current year | 632 |  |  | 378 |
Statute expirations | (34) |  |  | (172) |
Unrecognized tax benefits - December 31 | $ | 2,351 |  |  | $ | 1,670 |

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 + Details
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