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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) from continuing operations before income taxes consisted of the following:
| Year Ended December 31,
2021 |  | 2020 |  | 2019
United States | $ | (245) |  |  | $ | 8,360 |  |  | $ | 589 |
Foreign | (4,994) |  |  | 13,295 |  |  | 1,865 |
Income (loss) from continuing operations before income taxes | $ | (5,239) |  |  | $ | 21,655 |  |  | $ | 2,454 |
The components of the provision for income taxes consisted of the following:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 2,631 |  |  | $ | 2,108 |  |  | $ | 257 |
State | 733 |  |  | 310 |  |  | 47 |
Foreign | 7,828 |  |  | 7,099 |  |  | 2,642 |
Total | 11,192 |  |  | 9,517 |  |  | 2,946 |
Deferred: |  |  |  |  |
Federal | (579) |  |  | 117 |  |  | 105 |
State | (42) |  |  | (17) |  |  | (1) |
Foreign | (9,719) |  |  | (2,767) |  |  | (2,038) |
Total | (10,340) |  |  | (2,667) |  |  | (1,934) |
Income tax expense | $ | 852 |  |  | $ | 6,850 |  |  | $ | 1,012 |
The provision for income taxes differs from the tax computed using the statutory U.S. federal income tax rate of 21% as a result of the following items:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Tax expense (benefit) at U.S. statutory rate | $ | (1,100) |  |  | $ | 4,548 |  |  | $ | 515 |
State income taxes, net of federal income tax benefit | 546 |  |  | 246 |  |  | 36 |
Permanent differences | 1,121 |  |  | 467 |  |  | 2,802 |
Foreign tax rate differential | (886) |  |  | 1,536 |  |  | 210 |
Transaction costs | (477) |  |  | — |  |  | — |
Equity-based compensation | 1,689 |  |  | — |  |  | — |
Other | (41) |  |  | 53 |  |  | (2,551) |
Income tax expense | $ | 852 |  |  | $ | 6,850 |  |  | $ | 1,012 |
The foreign tax rate differential relates to differences between the income tax rates in effect in the foreign countries in which the Company operates, in particular Australia where the corporate tax rate is 30%. The components of net deferred tax assets (liabilities) were as follows:
| Year Ended December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Transaction costs | $ | 2,129 |  |  | $ | 466 |
Property and equipment | 439 |  |  | — |
Accruals and reserves | 4,397 |  |  | 1,962 |
Lease liabilities | 7,005 |  |  | 894 |
State taxes | — |  |  | 64 |
Inventory | 1,653 |  |  | — |
Foreign exchange gains / losses | 92 |  |  | 373 |
Net operating loss carryforwards | — |  |  | 135 |
Subtotal | 15,715 |  |  | 3,894 |
Less: Valuation allowance | — |  |  | (144) |
Total deferred tax assets | 15,715 |  |  | 3,750 |
Deferred tax liabilities: |  |  |
Property and equipment | — |  |  | (439) |
Intangible assets | (11,557) |  |  | (8,378) |
Right-of-use assets | (7,041) |  |  | (745) |
Inventory | — |  |  | (70) |
Other | (37) |  |  | (22) |
Total deferred tax liabilities | (18,635) |  |  | (9,654) |
Net deferred liabilities | $ | (2,920) |  |  | $ | (5,904) |
As of December 31, 2021, the Company did not have any federal or state net operating loss carryforwards. The Company has recorded no valuation allowance as of December 31, 2021 but had recorded a valuation allowance of $0.1 million as of December 31, 2020, primarily related to U.S. net operating loss carryforwards. The Company had gross deferred tax assets of $15.7 million and $3.9 million and gross deferred tax liabilities of $18.6 million and $9.7 million at December 31, 2021 and 2020, respectively. Management has determined the gross deferred tax assets are more likely than not realizable. The Company has not provided deferred taxes on unremitted earnings attributable to foreign subsidiaries that have been considered permanently reinvested. As of December 31, 2021, the unremitted earnings from these operations were approximately $11.4 million. As of December 31, 2021 and 2020, the Company had no uncertain tax positions. The Company is subject to taxation in the United States, Cayman Islands and Australia. For U.S. federal income tax purposes, 2018 and later tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For major U.S. states, 2017 and later tax years remain open for examination by the tax authorities under a four-year statute of limitations. For Australia, 2017 and subsequent tax years remain subject to examination. Tax Contingencies The Company is subject to income taxes in the United States and Australia. Significant judgment is required in evaluating the Company’s tax positions and determining the provision for income taxes. During the ordinary course of business, the Company considers tax positions for which the ultimate tax determination is uncertain for the purpose of determining whether a reserve is required, despite the Company’s belief that the tax positions are fully supportable. To date the Company has not established a reserve provision because the Company believes that all tax positions are highly certain.

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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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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