XML 42 R28.htm IDEA: XBRL DOCUMENT
v3.22.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of loss before provision for income taxes for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands):
| December 31,
| 2022 |  | 2021 |  | 2020
Domestic | $ | (137,164) |  |  | $ | (101,211) |  |  | $ | (156,119) |
Foreign | (2,051) |  |  | — |  |  | — |
Loss before income taxes | $ | (139,215) |  |  | $ | (101,211) |  |  | $ | (156,119) |
Due to the Company’s net losses, the Company did not record a provision for federal income taxes during the years ended December 31, 2022, 2021 and 2020, respectively. The Company continues to maintain a full valuation allowance for its net U.S. federal and state deferred tax assets. The components of the provision for income tax expense for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands):
| December 31,
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | (24) |  |  | $ | — |  |  | $ | — |
State | 184 |  |  |  |  | 5 |
Foreign | 188 |  |  | — |  |  | — |
Total current | 348 |  |  | — |  |  | 5 |
Deferred: |  |  |  |  |
Federal | (12,448) |  |  | — |  |  | — |
State | (3,021) |  |  |  |  |
Foreign | (40) |  |  | — |  |  | — |
Total deferred | (15,509) |  |  | — |  |  | — |
Total provision for income taxes | $ | (15,161) |  |  | $ | — |  |  | $ | 5 |
The effective tax rate of the Company’s provision (benefit) for income taxes differs from the federal statutory rate as follows:
| December 31,
| 2022 |  | 2021 |  | 2020
Statutory rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
State tax | 2.04 | % |  | 3.15 | % |  | 3.19 | %
Foreign income and withholding taxes | (0.42) | % |  | 1.61 | % |  | 0.41 | %
Stock-based compensation | (0.51) | % |  | 6.17 | % |  | (0.60) | %
Change in fair value of warrants | — | % |  | 0.71 | % |  | (11.36) | %
Other | (2.26) | % |  | (1.19) | % |  | — | %
Non-deductible interest expense | (0.96) | % |  | (2.53) | % |  | (1.51) | %
Valuation allowance | (8.00) | % |  | (28.92) | % |  | (11.13) | %
Total | 10.89 | % |  | — | % |  | — | %
Deferred income taxes arise from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes, as well as net operating losses (“NOLs”) and tax credit carryforwards. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):
| December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Net operating losses | $ | 122,005 |  |  | $ | 92,160 |
Tax credits | 720 |  |  | 741 |
Depreciable assets | 291 |  |  | 604 |
Operating lease liabilities | 3,234 |  |  | 3,558 |
Accruals and allowances | 3,004 |  |  | 1,803 |
Stock-based compensation | 3,549 |  |  | 1,359 |
Deferred revenue | 34,575 |  |  | 24,734 |
Interest expense | 1,245 |  |  | 1,209 |
Other | 1,967 |  |  | 3,989 |
Total gross deferred tax assets | 170,590 |  |  | 130,157 |
Less: Valuation allowance | (140,636) |  |  | (125,082) |
Net deferred tax assets | 29,954 |  |  | 5,075 |
Deferred tax liabilities: |  |  |
Amortization of asset retirement obligation | (634) |  |  | (768) |
Intangibles | (26,319) |  |  | (862) |
Right-of-use assets | (2,961) |  |  | (3,445) |
Total gross deferred tax liabilities | (29,914) |  |  | (5,075) |
Net deferred taxes | $ | 40 |  |  | $ | — |
As of December 31, 2022 and 2021, the Company had federal NOL carryforwards of approximately $409.8 million and $300.8 million, respectively, and state NOL carryforwards of approximately $353.2 million and $274.6 million, respectively. Of the $409.8 million federal net operating loss, $97.0 million will begin to expire in 2029, while the remaining amount does not expire. The federal and state NOL carryforwards will both begin to expire in 2029. The state net operating loss carryforwards will begin to expire in 2029. As of December 31, 2022 and 2021, the Company had foreign NOL carryforwards of approximately $23.5 million and $9.0 million, respectively. The foreign net operating loss carryforwards expire in 2039. As of December 31, 2022 and 2021, the Company had federal research and development tax credit carryforwards of $0.7 million and $0.7 million, respectively, which begin to expire in 2029 if not utilized. As of December 31, 2022 and 2021, the Company had California research and development tax credit carryforwards of $0.7 million and $0.7 million, respectively, which do not expire. 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. As a result of a history of taxable losses and uncertainties as to future profitability, the Company recorded a full valuation allowance against its deferred tax assets with exception of a foreign subsidiary which has been profitable historically. The valuation allowance was $140.6 million and $125.1 million as of December 31, 2022 and 2021, respectively. Utilization of the net operating loss carryforwards and tax credit forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code Section 382, as well as similar state provisions. In general, an “ownership change,” as defined by the code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups. Any limitation may result in expiration of all or a portion of the NOL or tax credit carryforwards before utilization. The Company has not performed a detailed analysis to determine whether an ownership change under Section 382 of the Code has previously occurred. As a result, the Company’s ability to utilize existing carryforwards could be restricted. The Company had gross unrecognized tax benefits of $0.7 million and $0.7 million as of December 31, 2022 and 2021, respectively. There were no material additions, reductions or settlements of unrecognized tax benefits for years ended December 31, 2022 and 2021. The Company expects resolution of unrecognized tax benefits, if created, would occur while the full valuation allowance of deferred tax assets is maintained. The Company does not expect to have any unrecognized tax benefits that, if recognized, would affect the effective tax rate. As of December 31, 2022, the Company did not have a liability for potential penalties or interest. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. In the normal course of business, the Company is subject to examination by taxing authorities throughout the United States of America, Canada, Germany, Japan and India. The Company is not currently under audit by the Internal Revenue Service or other foreign revenue agencies, or similar state or local authorities. The tax return years 2018 through 2022 remain open to examination by the major domestic taxing jurisdictions to which the Company is subject. Net operating losses generated on a tax return basis by the Company for calendar years 2009 through 2022 remain open to examination by the major domestic taxing jurisdictions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration