XML 39 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of loss before income tax provision are as follows:
|  | Years Ended December 31,
(In thousands) |  | 2024 |  | 2023 |  | 2022
Domestic |  | $ | (61,420) |  |  | $ | (79,078) |  |  | $ | (69,981) |
Foreign |  | 2,096 |  |  | 1,250 |  |  | 5,144 |
Total |  | $ | (59,324) |  |  | $ | (77,828) |  |  | $ | (64,837) |
Income tax provision is as follows:
|  | Years Ended December 31,
(In thousands) |  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | 51 |
State |  | 35 |  |  | 259 |  |  | 227 |
Foreign |  | 1,730 |  |  | 1,309 |  |  | 1,921 |
Total |  | $ | 1,765 |  |  | $ | 1,568 |  |  | $ | 2,199 |
Deferred: |  |  |  |  |  |
Federal |  | $ | (60) |  |  | $ | (128) |  |  | $ | 8 |
State |  | (359) |  |  | (687) |  |  | 16 |
Foreign |  | (422) |  |  | 780 |  |  | (499) |
Total |  | $ | (841) |  |  | $ | (35) |  |  | $ | (475) |
Income tax provision |  | $ | 924 |  |  | $ | 1,533 |  |  | $ | 1,724 |
A reconciliation of the statutory U.S. income tax rate to the effective income tax rate is as follows:
|  | Years Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Statutory federal tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes |  | 0.5 | % |  | 0.4 | % |  | (0.3) | %
Other nondeductible/nontaxable items |  | (0.8) | % |  | (0.5) | % |  | 3.7 | %
Foreign rate differences |  | (0.4) | % |  | (0.3) | % |  | (0.4) | %
Change in valuation allowance |  | (3.9) | % |  | (4.9) | % |  | (10.7) | %
Stock compensation |  | (0.3) | % |  | (0.1) | % |  | (2.3) | %
Executive compensation |  | — | % |  | — | % |  | (0.1) | %
Goodwill impairment |  | (17.6) | % |  | (16.6) | % |  | (11.8) | %
Other adjustments |  | — | % |  | (1.0) | % |  | (1.7) | %
Uncertain tax positions |  | (0.1) | % |  | — | % |  | (0.1) | %
Effective tax rate |  | (1.6) | % |  | (2.0) | % |  | (2.7) | %
Income Tax Provision The Company recognized income tax expense of $0.9 million during the year ended December 31, 2024, which is comprised of current tax expense of $1.8 million related to foreign taxes and state taxes and deferred tax benefit of $0.8 million related to both U.S. and foreign taxes. Included in tax expense is an income tax adjustment of $17.2 million related to the impairment of goodwill. Also included in total tax expense is income tax benefit of $2.5 million for a decrease in the valuation allowance recorded against the Company's deferred tax assets to offset the tax expense of the Company's operating losses in the U.S. and certain foreign jurisdictions. Income tax expense of $0.9 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, local statutory to U.S. GAAP adjustments and other nondeductible expenses. These tax adjustments, along with state and local taxes, are the primary drivers of the annual effective income tax rate. The Company recognized income tax expense of $1.5 million during the year ended December 31, 2023, which is primarily comprised of current tax expense of $1.6 million related to foreign taxes and state taxes. Included in tax expense is an income tax adjustment of $20.9 million related to the impairment of goodwill. Also included in total tax expense is income tax expense of $15.1 million for an increase in the valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. Income tax expense of $0.7 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, executive compensation and other nondeductible expenses. These tax adjustments, along with state and local taxes, are the primary drivers of the annual effective income tax rate. The Company recognized income tax expense of $1.7 million during the year ended December 31, 2022, which is primarily comprised of current tax expense of $2.2 million related to foreign taxes and state taxes and a deferred tax benefit of $0.5 million related to temporary differences between the tax treatment and GAAP accounting treatment for certain items. Included in total tax expense is income tax benefit of $2.6 million for permanent differences in the book and tax treatment of nontaxable gain on fair market value adjustment of stock warrants, offset by certain nondeductible stock-based compensation and executive compensation. Also included in the total tax expense is an income tax adjustment of $12.7 million related to the impairment of goodwill. Income tax expense of $18.5 million has also been included for an increase in the valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. and certain foreign jurisdictions. These tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The components of net deferred income taxes are as follows:
|  | As of December 31,
(In thousands) |  | 2024 |  | 2023
Deferred tax assets: |  |  |  |
Net operating loss carryforwards |  | $ | 176,369 |  |  | $ | 191,657 |
Lease liability |  | 7,797 |  |  | 11,068 |
Deferred revenues |  | 17,184 |  |  | 18,386 |
Deferred compensation |  | 5,165 |  |  | 5,135 |
Accrued salaries and benefits |  | 451 |  |  | 857 |
Tax credits |  | 2,480 |  |  | 2,282 |
Tax contingencies |  | 816 |  |  | 797 |
Allowance for doubtful accounts |  | 103 |  |  | 112 |
Capital loss carryforwards |  | 108 |  |  | 108 |
Property and equipment |  | 4,735 |  |  | — |
Intangible assets |  | 3,608 |  |  | 3,970 |
Capitalized research and development expense |  | 34,815 |  |  | 25,693 |
Other |  | 2,523 |  |  | 2,587 |
Gross deferred tax assets |  | $ | 256,154 |  |  | $ | 262,652 |
Valuation allowance |  | (247,772) |  |  | (251,253) |
Net deferred tax assets |  | $ | 8,382 |  |  | $ | 11,399 |
Deferred tax liabilities: |  |  |  |
Lease asset |  | $ | (3,964) |  |  | $ | (5,583) |
Property and equipment |  | — |  |  | (824) |
Subpart F income recapture |  | (1,411) |  |  | (1,384) |
Goodwill |  | (1,274) |  |  | (2,341) |
Total deferred tax liabilities |  | $ | (6,649) |  |  | $ | (10,132) |
Net deferred tax asset |  | $ | 1,733 |  |  | $ | 1,267 |
Tax Valuation Allowance As of December 31, 2024 and 2023, the Company had a valuation allowance of $247.8 million and $251.3 million, respectively, against certain deferred tax assets. The valuation allowance relates to the deferred tax assets of the Company's U.S. entities, including federal and state tax attributes and timing differences, as well as the deferred tax assets of certain foreign subsidiaries. The decrease in the valuation allowance during 2024 is primarily due to the decrease in U.S. net operating loss carryforwards, net of the increase in capitalized R&E expenditures under Section 174. To the extent the Company determines that, based on the weight of available evidence, all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. If management determines that, based on the weight of available evidence, it is more-likely-than-not that all or a portion of the net deferred tax assets will not be realized, the Company may recognize income tax expense in the period such determination is made to increase the valuation allowance. It is possible that such reduction of or addition to the Company's valuation allowance may have a material impact on the Company's results from operations. A summary of the deferred tax asset valuation allowance is as follows:
|  | As of December 31,
(In thousands) |  | 2024 |  | 2023
Beginning Balance |  | $ | 251,253 |  |  | $ | 250,994 |
Additions from continuing operations |  | 121 |  |  | 844 |
Reductions |  | (3,602) |  |  | (585) |
Ending Balance |  | $ | 247,772 |  |  | $ | 251,253 |
Net Operating Loss and Credit Carryforwards Under the provisions of Internal Revenue Code Section 382, certain substantial changes in the Company's ownership may result in a limitation on the amount of U.S. net operating loss carryforwards that can be utilized annually to offset future taxable income and taxes payable. During 2023, the Company concluded that the Transactions triggered an ownership change on May 10, 2021, and as a result, all of its U.S. net operating loss carryforwards are subject to an annual limitation under Section 382. Additionally, despite the net operating loss carryforwards, the Company may have a future income tax liability due to foreign income tax or state income tax requirements. As of December 31, 2024, the Company had U.S. federal and state net operating loss carryforwards for tax purposes of $539.0 million and $1.5 billion, respectively. The Company estimates that $436.2 million of its U.S. federal and $1.3 billion of its state net operating loss carryforwards are utilizable given the annual limitations under Section 382. The Company's net operating loss carryforwards began to expire in 2025 for federal and 2026 for state income tax purposes. The federal and certain state net operating losses generated after December 31, 2017 have an indefinite carryforward period. As of December 31, 2024, the Company had an aggregate net operating loss carryforward for tax purposes related to its foreign subsidiaries of $6.3 million, which begins to expire in 2025. As of December 31, 2024, the Company had research and development credit carryforwards of $3.1 million which begin to expire in 2025. Foreign Undistributed Earnings As of December 31, 2024, the Company has certain foreign subsidiaries with accumulated undistributed earnings. The TCJA allows for a dividend received deduction resulting in no material U.S. federal income tax upon repatriation of these earnings. The Company intends to indefinitely reinvest these earnings, as well as future earnings from its foreign subsidiaries, to fund its international operations and therefore has not accrued any related foreign withholding taxes or state income taxes. Uncertain Tax Positions For uncertain tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefits determined on a cumulative probability basis, which are more likely than not to be realized upon ultimate settlement in the financial statements. The Company has unrecognized tax benefits, which are tax benefits related to uncertain tax positions which have been or will be reflected in income tax filings that have not been recognized in the financial statements due to potential adjustments by taxing authorities in the applicable jurisdictions. The Company's liability for unrecognized tax benefits, which include interest and penalties, was $0.8 million and $0.7 million for the years ended December 31, 2024 and 2023, respectively. The remaining unrecognized tax benefits have reduced deferred tax balances. The amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate is $1.8 million as of December 31, 2024 and $2.0 million as of December 31, 2023 and 2022, respectively. The amount of unrecognized tax benefits includes the federal tax benefit of state deductions. The Company anticipates $0.1 million of unrecognized tax benefits will reverse during the next year due to the expiration of statutes of limitation. Changes in the Company's unrecognized income tax benefits are as follows:
|  | As of December 31,
(In thousands) |  | 2024 |  | 2023 |  | 2022
Beginning balance |  | $ | 2,043 |  |  | $ | 2,026 |  |  | $ | 2,052 |
Increase related to tax positions of the current year |  | 49 |  |  | 39 |  |  | 25 |
Increase related to tax positions of prior years |  | — |  |  | 10 |  |  | — |
Decrease related to tax positions of prior years |  | (29) |  |  | (7) |  |  | (22) |
Decrease due to lapse in statutes of limitations |  | (207) |  |  | (25) |  |  | (29) |
Ending balance |  | $ | 1,856 |  |  | $ | 2,043 |  |  | $ | 2,026 |
The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2024 and 2023, accrued interest and penalties on unrecognized tax benefits were $0.2 million. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. For income tax returns filed by the Company, the Company is generally no longer subject to U.S. federal examinations by tax authorities for years prior to 2021 or state and local tax examinations by tax authorities for years prior to 2020. The Company is no longer subject to examination by tax authorities in the Netherlands for years prior to 2018. However, tax attribute carryforwards may still be adjusted upon examination by tax authorities.

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 tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: 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/1943274/2147477891/740-270-50-1 Reference 6: 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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: 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 11: 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 12: 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 13: 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 14: 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration