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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Components of Loss Before Provision for Income Taxes | The components of loss before provision for income taxes are as follows for the years ended December 31, 2021, 2020, and 2019:
(in thousands) | December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
Loss before provision for income taxes |  |  |  |  |
United States | $ | (45,527) |  |  | $ | (29,889) |  |  | $ | (3,573) |
Foreign | 967 |  |  | (84) |  |  | (7,279) |
| $ | (44,560) |  |  | $ | (29,973) |  |  | $ | (10,852) |
(Provision) Benefit for Income Taxes | Our total (provision) benefit for income taxes consists of the following for the years ended December 31, 2021, 2020, and 2019:
(in thousands) | December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
Current: |  |  |  |  |
Federal | $ | (185) |  |  | $ | 4,024 |  |  | $ | (425) |
State | 19 |  |  | (48) |  |  | (148) |
Foreign | (392) |  |  | (217) |  |  | (64) |
| (558) |  |  | 3,759 |  |  | (637) |
Deferred |  |  |  |  |
Federal | (75) |  |  | — |  |  | (2,686) |
State | — |  |  | — |  |  | (460) |
Foreign | (177) |  |  | 354 |  |  | 108 |
| (252) |  |  | 354 |  |  | (3,038) |
| $ | (810) |  |  | $ | 4,113 |  |  | $ | (3,675) |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of our effective tax rate to the statutory federal rate of 21% for the years ended December 31, 2021, 2020, and 2019, is as follows:
(in thousands) | December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
Income tax benefit at statutory rate | (21.00) | % |  | (21.00) | % |  | (21.00) | %
State income taxes-net of federal provision (benefit) | (5.84) | % |  | (3.77) | % |  | 6.05 | %
Foreign rate differential | 0.10 | % |  | 0.22 | % |  | (2.21) | %
Stock-based compensation | (1.77) | % |  | 3.83 | % |  | 4.61 | %
Warrant fair value adjustment | 5.01 | % |  | (0.52) | % |  | 2.57 | %
Charitable contribution | (0.06) | % |  | (0.43) | % |  | (2.57) | %
Return to provision and other | 1.67 | % |  | (0.14) | % |  | (2.45) | %
Benefits provided by the CARES Act | (0.02) | % |  | (6.22) | % |  | — | %
Uncertain tax positions | 0.66 | % |  | 1.16 | % |  | 1.64 | %
Tax credits | (2.64) | % |  | (6.93) | % |  | (4.76) | %
Other | 0.39 | % |  | — | % |  | 1.04 | %
Valuation allowance | 25.33 | % |  | 20.08 | % |  | 50.95 | %
| 1.83 | % |  | (13.72) | % |  | 33.87 | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of our net deferred tax assets as of December 31, 2021 and 2020, which are included in other assets in the consolidated balance sheets, are as follows:
(in thousands) | December 31, 2021 |  | December 31, 2020
Deferred tax asset: |  |  |
Inventory | $ | 2,792 |  |  | $ | 1,469 |
Deferred rent | 2,339 |  |  | 1,568 |
Accruals | 1,237 |  |  | 782 |
Stock-based compensation | 1,032 |  |  | 673 |
Net operating loss carryforwards | 9,403 |  |  | 3,903 |
R&D credits | 3,246 |  |  | 1,700 |
Charitable contributions | 2,492 |  |  | 2,269 |
Intangibles | 1,473 |  |  | — |
Deferred revenue | 831 |  |  | 406 |
Advertising | 971 |  |  | 740 |
Intercompany payable | 552 |  |  | 552 |
Other | 519 |  |  | 308 |
Total gross deferred tax assets | 26,887 |  |  | 14,370 |
Less: valuation allowance | (21,607) |  |  | (10,319) |
Total deferred tax assets | 5,280 |  |  | 4,051 |
Deferred tax liabilities: |  |  |
Prepaid expenses | (88) |  |  | (205) |
Depreciation | (5,089) |  |  | (3,477) |
State taxes | — |  |  | (15) |
Total deferred tax liabilities | (5,177) |  |  | (3,697) |
Net deferred tax assets | $ | 103 |  |  | $ | 354 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits | A tabular reconciliation of the total amounts of unrecognized tax benefits for the year presented is as follows:
(in thousands) | December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
Unrecognized tax benefits - at beginning of year | $ | 691 |  |  | $ | 417 |  |  | $ | 124 |
Increases in balances related to tax positions taken in prior years | 23 |  |  | — |  |  | 80 |
Decreases in balances related to tax positions taken in prior years | (63) |  |  | (13) |  |  | — |
Increases in balances related to tax positions taken in current year | 614 |  |  | 287 |  |  | 213 |
Lapses in statutes of limitations | — |  |  | — |  |  | — |
Unrecognized tax benefits - at end of year | $ | 1,265 |  |  | $ | 691 |  |  | $ | 417 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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