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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the loss before income taxes were as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Domestic | $ | (111,339) |  |  | $ | (16,496) |  |  | $ | (9,554) |
Foreign | (239) |  |  | (1,617) |  |  | (961) |
Total loss before provision for income taxes | $ | (111,578) |  |  | $ | (18,113) |  |  | $ | (10,515) |
The components of the provision for income taxes were as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | (818) |
State | 231 |  |  | 50 |  |  | 15 |
Foreign | — |  |  | — |  |  | — |
Total Current | $ | 231 |  |  | $ | 50 |  |  | $ | (803) |
Deferred: |  |  |  |  |
Federal | $ | 92 |  |  | $ | 264 |  |  | $ | — |
State | 4 |  |  | 72 |  |  | — |
Foreign | — |  |  | — |  |  | — |
Total Deferred | $ | 96 |  |  | $ | 336 |  |  | $ | — |
Total Provision for income taxes | $ | 327 |  |  | $ | 386 |  |  | $ | (803) |
Reconciliation of the statutory federal income tax to the Company's effective tax:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Tax provision (benefit) at U.S. statutory rate | $ | (23,431) |  |  | 21.0 | % |  | $ | (3,804) |  |  | 21.0 | % |  | $ | (2,209) |  |  | 21.0 | %
State income taxes | (739) |  |  | 0.6 | % |  | (409) |  |  | 2.3 | % |  | (127) |  |  | 1.2 | %
Foreign taxes in excess of the U.S. statutory rate | 10 |  |  | — |  |  | 74 |  |  | (0.4) | % |  | 202 |  |  | (1.9) | %
Change of valuation allowance | 11,394 |  |  | (10.2) | % |  | 2,397 |  |  | (13.2) | % |  | 525 |  |  | (5.0) | %
Change in fair value | 4,166 |  |  | (3.7) | % |  | 1,275 |  |  | (7.1) | % |  | — |  |  | — |
Share based compensation | 8,804 |  |  | (7.9) | % |  | 1,548 |  |  | (8.6) | % |  | 779 |  |  | (7.4) | %
Attribute carryback | — |  |  | — |  |  | — |  |  | — |  |  | (203) |  |  | 1.9 | %
Tax credits | (3,615) |  |  | 3.2 | % |  | (862) |  |  | 4.8 | % |  | — |  |  | — |
Section 162(m) limitation | 3,693 |  |  | (3.3) | % |  | — |  |  | — |  |  | — |  |  | — |
Other | 45 |  |  | — | % |  | 167 |  |  | (0.9) | % |  | 230 |  |  | (2.2) | %
Tax Expense | $ | 327 |  |  | (0.3) | % |  | $ | 386 |  |  | (2.1) | % |  | $ | (803) |  |  | 7.6 | %
Significant components for the Company's net deferred tax liabilities included in accrued expenses and other current liabilities in the consolidated balance sheets are as follows:
| Year Ended December 31,
| 2022 |  | 2021
Deferred Tax Assets |  |  |
Accrued compensation | $ | 2,087 |  |  | $ | 3,074 |
Operating lease liability | 1,822 |  |  | 2,829 |
Share-based compensation | 6,033 |  |  | 804 |
Net operating loss carryforwards | 10,877 |  |  | 11,187 |
Allowance for bad debt | 223 |  |  | 413 |
Interest expense limitation | — |  |  | 19 |
Tax credits | 3,615 |  |  | 862 |
Section 174 capitalization | 5,705 |  |  | — |
Other | (32) |  |  | 62 |
Total deferred tax assets | $ | 30,330 |  |  | $ | 19,250 |
Valuation allowance | (26,002) |  |  | (14,436) |
Net Deferred Tax Assets | $ | 4,328 |  |  | $ | 4,814 |
Deferred tax liabilities |  |  |
Depreciation and amortization | $ | (3,392) |  |  | $ | (3,089) |
Operating lease assets | (1,454) |  |  | (2,148) |
Total deferred tax assets (liabilities) | $ | (4,846) |  |  | $ | (5,237) |
Net deferred tax liabilities | $ | (518) |  |  | $ | (423) |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes it is more likely than not that the deferred tax assets will not be realized; accordingly, a valuation allowance has been established on U.S. and foreign gross deferred tax assets. The valuation allowance increased $11.6 million, $2.2 million for 2022, 2021, respectively. As of December 31, 2022, the Company has net operating loss carryforwards for federal income tax purposes of $31.0 million available to reduce future income subject to income taxes. The federal net operating loss carryforwards of $7.4 million will begin to expire, if not utilized, in fiscal year 2037. The remaining amount of federal net operating loss carryforwards will be carried forward indefinitely. In addition, the Company has $38.6 million and $12.7 million of net operating loss carryforwards available to reduce future taxable income subject to California state income taxes and all other applicable state jurisdictions, respectively. The California net operating loss carryforwards will begin to expire, if not utilized, in fiscal year 2036. The other states’ net operating loss carryforwards will begin to expire, if not utilized, in fiscal year 2037. The foreign net operating loss carryforwards of $0.4 million do not expire. The Federal and State Credit Carryforwards are $2.1 million and $1.5 million accordingly.The Federal and State Credit Carryforwards will begin to expire, if not utilized, in fiscal year 2037. Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company's ability to utilize net operating loss carryforwards or other tax attributes in any taxable year may be limited if the Company has experienced an ownership change. As of December 31, 2022 the Company has concluded that it has experienced ownership changes since inception and that its utilization of net operating loss carryforwards will be subject to annual limitations. However, it is not expected that the annual limitations will result in the expiration of the tax attribute carryforwards prior to utilization. Changes in our unrecognized tax benefits are summarized as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Beginning Balance | $ | 427 |  |  | $ | 43 |  |  | $ | 34 |
Additions for current year items | 842 |  |  | 115 |  |  | 9 |
Additions for prior year items | 360 |  |  | 269 |  |  | — |
Reductions for prior year items | — |  |  | — |  |  | — |
Lapse of statute of limitations | — |  |  | — |  |  | — |
Ending Balance | $ | 1,629 |  |  | $ | 427 |  |  | $ | 43 |
During the year ended December 31, 2022, 2021, and 2020, interest and penalties were immaterial. The Company does not expect any significant change in its unrecognized tax benefits during the next twelve months that would be material to the consolidated financial statements. All of the unrecognized tax benefits would impact the effective tax rate. The Company files income tax returns for U.S. federal income tax, several U.S. states, and other foreign jurisdictions. The Company’s most significant tax jurisdiction is the United States. The Company’s tax years for 2017 and forward are subject to examination by the federal tax authorities. The Company’s tax years for 2016 and forward are subject to examination by the state tax authorities. The Company’s tax years for 2017 and forward are subject to examination by the foreign tax authorities. The Company is not currently under examination for income tax in any jurisdiction. The Company is currently not subject to any income tax audits by federal or state taxing authorities. The statute of limitations for tax liabilities for all years remains open.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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