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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The U.S. and non-U.S. components of loss before income taxes consisted of the following (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  |
U.S. | $ | (42,845) |  |  | $ | (71,379) |  |  |
Non-U.S. | 1,138 |  |  | 800 |  |  |
Loss before income taxes | $ | (41,707) |  |  | $ | (70,579) |  |  |
The components of the provision for income taxes are as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  |
Current |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  |
State | 54 |  |  | 31 |  |  |
Foreign | 245 |  |  | 123 |  |  |
Total current | 299 |  |  | 154 |  |  |
Deferred |  |  |  |  |
Federal | 138 |  |  | 12 |  |  |
State | 6 |  |  | 3 |  |  |
Foreign | — |  |  | 17 |  |  |
Total deferred | 144 |  |  | 32 |  |  |
Provision for income taxes | $ | 443 |  |  | $ | 186 |  |  |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Significant components of the Company’s deferred tax liabilities and assets are as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  |
Deferred tax assets |  |  |  |  |
Net operating loss carryforwards | $ | 40,911 |  |  | $ | 38,144 |  |  |
Capitalized research and development costs | 17,868 |  |  | 11,018 |  |  |
Deferred expenses | 2,526 |  |  | 1,478 |  |  |
Lease liability | 2,303 |  |  | 2,785 |  |  |
Stock compensation | 1,197 |  |  | 3,049 |  |  |
Depreciation and amortization | 470 |  |  | 311 |  |  |
Credits | — |  |  | 142 |  |  |
Total deferred tax assets | $ | 65,275 |  |  | $ | 56,927 |  |  |
Deferred tax liabilities |  |  |  |  |
Capitalized service costs | $ | (1,787) |  |  | $ | (1,162) |  |  |
Right-of-use asset | (2,093) |  |  | (2,564) |  |  |
Subsidiary outside basis difference | (110) |  |  | — |  |  |
Total deferred tax liabilities | (3,990) |  |  | (3,726) |  |  |
Net deferred tax asset before valuation allowance | 61,285 |  |  | 53,201 |  |  |
Less: valuation allowance | (61,430) |  |  | (53,216) |  |  |
Net deferred tax asset (liability) | $ | (145) |  |  | $ | (15) |  |  |
The Company has established a valuation allowance due to uncertainties regarding the realization of deferred tax assets based on the Company’s lack of earnings history. During the year ended December 31, 2023, the valuation allowance increased by approximately $8.2 million due to continuing operations. As of December 31, 2023 and 2022, the Company had federal net operating loss carryforwards of approximately $156.1 million and $146.9 million, respectively, and state net operating loss carryforwards of approximately $132.3 million and $118.4 million, respectively, that will begin to expire in 2033, if not utilized prior to that time. Approximately $125.0 million of the U.S. federal net operating losses arose in tax years beginning after December 31, 2017 and have an indefinite carryforward period. Utilization of the net operating loss carryforwards may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986. The annual limitation may result in the expiration of net operating losses and tax credit carryforwards before utilization. The Company’s provision for income taxes attributable to continuing operations differs from the expected tax expense amount computed by applying the statutory federal income tax rate of 21% to loss before income taxes due to the following:
| Year Ended December 31,
| 2023 |  | 2022 |  |
Income tax at U.S. statutory rate | 21.0 | % |  | 21.0 | % |  |
Effect of: |  |  |  |  |
Change in valuation allowance | (19.7) |  |  | (27.6) |  |  |
State taxes, net of federal benefit | 3.8 |  |  | 6.0 |  |  |
Permanent items | (0.7) |  |  | (0.1) |  |  |
Stock-based compensation | (5.9) |  |  | — |  |  |
Tax credits | — |  |  | 0.5 |  |  |
Other items | 0.3 |  |  | — |  |  |
Income tax provision effective rate | (1.2) | % |  | (0.2) | % |  |
The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, the United Kingdom, Canada, and India. The Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2020. Operating losses generated remain open to adjustment until the statute of limitations closes for the tax year in which the operating losses are utilized. The Company is not currently under examination by any tax jurisdictions, but tax years 2020 through 2023 remain open to examination. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities. As of December 31, 2023 and 2022, the Company has recorded no unrecognized tax benefits. The Company’s practice is to recognize interest and penalties related to unrecognized tax benefits outside of income tax expense. During the years ended December 31, 2023 and 2022, the Company did not recognize any interest or penalties related to unrecognized tax benefits. A U.S. stockholder is subject to tax on Global Intangible Low-Taxed Income, or GILTI, earned by certain foreign subsidiaries. Under GAAP, an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. The Company has previously elected to account for GILTI as a period cost in the year the tax is incurred. As required by the 2017 Tax Cuts and Jobs Act, effective January 1, 2022, the Company’s software development expenditures were capitalized and amortized for income tax purposes.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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