Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Loss before Income Tax Benefit (Expense), Domestic and Foreign
For financial reporting purposes, Loss Before Income Tax Benefit (Expense) includes the following components (in thousands):
Year Ended December 31,
2023 2022
United States $ (45,517) $ (42,254)
Foreign (32,658) (2,170)
Loss Before Income Tax Benefit (Expense) $ (78,175) $ (44,424)
Schedule of Significant Components of Income Tax Expense (Benefit)
The significant components of Income Tax Benefit (Expense) are as follows (in thousands):
Year Ended December 31,
2023 2022
Current:
Federal $ –  $ – 
State –  – 
Foreign –  (150)
–  (150)
Deferred:
Federal 152  – 
State 116  – 
Foreign 705  45 
973  45 
Income Tax Benefit (Expense) $ 973  $ (105)
Schedule of Deferred Tax Assets and Liabilities Deferred Tax Liability, net consists of the following components (in thousands):
As of December 31,
2023 2022
Deferred Tax Assets:
Net Operating Loss Carryover $ 48,857  $ 40,870 
Lease Liability 2,632  3,140 
Stock Compensation 1,884  2,355 
Warrants 18  153 
Marketable Securities 249  1,851 
Other 2,519  1,924 
Total Gross Deferred Tax Assets 56,159  50,293 
Less: Valuation Allowance (49,963) (42,938)
Deferred Tax Assets, net $ 6,196  $ 7,355 
Deferred Tax Liabilities:
Right-of-Use Assets (2,427) (2,949)
Intangible Assets (1) (5,168) (6,778)
Total Gross Deferred Tax Liabilities $ (7,595) $ (9,727)
Deferred Tax Liability, net $ (1,399) $ (2,372)
(1) The December 31, 2022 balance is adjusted to include the correction of error as noted in Note 2 within the Restatement of Previously Issued 2022 Financial Statements and Unaudited Interim 2023 Financial Statements section.
Schedule of Effective Income Tax Rate Reconciliation
The income tax provision differs from the amount of income tax determined by applying the U.S. federal tax rate to pretax income from continuing operations due to the following (in thousands):
Year Ended December 31,
2023 2022
Income Tax Benefit Computed at the Statutory Federal Rate $ 16,396  $ 9,553 
State Income Taxes, Net of Federal Tax Effect 1,630  1,883 
Stock Compensation (828) (1,894)
Contingent Earn Out –  282 
Goodwill Impairment (7,042) (1,020)
Warrants (583) 53 
Other (729) (960)
Non-U.S. operations 858  94 
Valuation Allowance (8,729) (8,096)
Income Tax Benefit (Expense) $ 973  $ (105)