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v3.25.1

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Taxes [Abstract] |
Schedule of Income Tax Provision Expense | The components of the Company’s income tax provision expense are as follows (in thousands):
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current provision: |  |  |  |  |  |  |  |  |
Federal |  | $ | (57 | ) |  | $ | (1,112 | ) |  | $ | (68 | )
State and local |  |  | (14 | ) |  |  | (309 | ) |  |  | 268 |
Foreign |  |  | (1,933 | ) |  |  | (582 | ) |  |  | 1,402 |
|  |  | (2,004 | ) |  |  | (2,003 | ) |  |  | 1,602 |
Deferred expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |  |  |  | 8,882 |
State and local |  |  | (47 | ) |  |  | (159 | ) |  |  | 3,552 |
Foreign |  |  | 773 |  |  |  | (520 | ) |  |  | 65 |
|  |  | 726 |  |  |  | (679 | ) |  |  | 12,499 |
Provision for (benefit from) income taxes |  | $ | (1,278 | ) |  | $ | (2,682 | ) |  | $ | 14,101 |
Schedule of Income (Loss) Before Provision for Income Taxes | Loss before provision for income taxes consisted of the following (in thousands):
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | (44,825 | ) |  | $ | (63,831 | ) |  | $ | (52,598 | )
International |  |  | 219 |  |  |  | 2,159 |  |  |  | 9,270 |
Total |  | $ | (44,606 | ) |  | $ | (61,672 | ) |  | $ | (43,328 | )
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows (in thousands):
|  | As of December 31, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  | $ | 2,373 |  |  |  | 2,473 |
Inventories |  |  | 1,416 |  |  |  | 2,139 |
Property and equipment |  |  | 1,891 |  |  |  | 2,207 |
Reserves and other accruals |  |  | 1,447 |  |  |  | 64 |
Stock based compensation |  |  | 1,324 |  |  |  | 1,942 |
Lease liabilities |  |  | 16,669 |  |  |  | 18,684 |
Section 174 Costs |  |  | 4,149 |  |  |  | 3,138 |
Credits and other |  |  | 1,409 |  |  |  | 2,834 |
Net operating losses |  |  | 17,041 |  |  |  | 13,191 |
Gross deferred tax assets |  |  | 47,719 |  |  |  | 46,672 |
Valuation allowance |  |  | (28,410 | ) |  |  | (25,670 | )
Total deferred tax assets, net |  |  | 19,309 |  |  |  | 21,002 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Prepaid expenses |  |  | (1,465 | ) |  |  | (1,606 | )
Other |  |  | (1,594 | ) |  |  | (233 | )
Right of Use of Asset |  |  | (15,336 | ) |  |  | (17,556 | )
Total deferred tax liabilities |  |  | (18,395 | ) |  |  | (19,395 | )
Net deferred tax assets |  | $ | 914 |  |  | $ | 1,607 |
Schedule of U.S. Federal Statutory Tax Rate | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Federal taxes at statutory rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
State taxes, net of federal benefit |  |  | 2.63 |  |  |  | 2.50 |  |  |  | 2.48 |
Permanent items: |  |  |  |  |  |  |  |  |  |  |  |
Other nondeductible items |  |  | 0.14 |  |  |  | (0.35 | ) |  |  | (0.30 | )
Subpart F income |  |  | (0.57 | ) |  |  | (1.55 | ) |  |  | (0.80 | )
Stock-based compensation |  |  | (12.87 | ) |  |  | (10.94 | ) |  |  | (10.88 | )
Foreign withholding tax |  |  | (2.89 | ) |  |  | (0.82 | ) |  |  | — |
Research & development credit |  |  | 0.64 |  |  |  | 0.34 |  |  |  | 1.57 |
Global intangible low-taxed income |  |  | — |  |  |  | (0.46 | ) |  |  | — |
Foreign rate differential and foreign tax credits |  |  | 1.36 |  |  |  | (1.39 | ) |  |  | (0.74 | )
Canada Provision |  |  | — |  |  |  | 1.92 |  |  |  | — |
Change in valuation allowance – U.S. Federal |  |  | (5.24 | ) |  |  | (5.61 | ) |  |  | (34.09 | )
Change in valuation allowance – U.S. States |  |  | (2.89 | ) |  |  | (0.07 | ) |  |  | (11.17 | )
Change in valuation allowance – Foreign |  |  | 1.99 |  |  |  | 3.18 |  |  |  | 0.96 |
Change in uncertainty tax position (“FIN48”) |  |  | 0.51 |  |  |  | (2.54 | ) |  |  | (0.10 | )
Other |  |  | (0.94 | ) |  |  | (0.86 | ) |  |  | (0.01 | )
Effective tax rate |  |  | 2.87 | % |  |  | 4.35 | % |  |  | (32.08 | )%
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows (in thousands):
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |
Beginning balance |  | $ | 4,242 |  |  | $ | 1,606 |
Additions based on tax positions related to the prior year |  |  | 101 |  |  |  | 2,592 |
Additions based on tax positions related to the current year |  |  | — |  |  |  | 126 |
Reduction based on tax position related to settlements with taxing authorities |  |  | (105 | ) |  |  | (62 | )
Reductions based on tax position related to a lapse of the applicable statute of limitation |  |  | — |  |  |  | (20 | )
Ending balance |  | $ | 4,238 |  |  | $ | 4,242 |

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