INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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Schedule of Income (Loss) before Income Tax, Domestic and Foreign |
Income (loss) before taxes on income is comprised as follows:
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Year ended December 31, |
|
2022 |
|
2021 |
|
2020 |
Domestic |
$ |
(7,910) |
|
|
$ |
(11,098) |
|
|
$ |
1,241 |
|
Foreign |
(8,483) |
|
|
863 |
|
|
(853) |
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Total income (loss) before income taxes
|
$ |
(16,393) |
|
|
$ |
(10,235) |
|
|
$ |
388
|
|
|
Schedule of Components of Income Tax Expense (Benefit) |
Income taxes are comprised as follows:
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Year ended December 31, |
|
2022 |
|
2021 |
|
2020 |
Current income tax provision (benefit): |
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|
|
|
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Domestic |
$ |
1,048 |
|
|
$ |
(8) |
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|
$ |
96 |
|
Foreign |
2,129 |
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|
1,245 |
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|
1,104 |
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Total current income tax (benefit) provision
|
$ |
3,177
|
|
|
$ |
1,237
|
|
|
$ |
1,200
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Year ended December 31, |
|
2022 |
|
2021 |
|
2020 |
Deferred income tax provision (benefit): |
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Domestic |
$ |
— |
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|
$ |
— |
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|
$ |
— |
|
Foreign |
(1,160) |
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|
— |
|
|
— |
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Total deferred income tax (benefit) provision
|
$ |
(1,160) |
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|
$ |
—
|
|
|
$ |
—
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|
|
|
|
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|
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Total income tax (benefit) provision |
$ |
2,017
|
|
|
$ |
1,237
|
|
|
$ |
1,200
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Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the U. S. statutory income tax rate to the Company’s effective income tax rate for continuing operations is as follows:
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Year ended December 31, |
|
2022 |
|
2021 |
|
2020 |
Total income (loss) before income taxes
|
$ |
(16,393) |
|
|
$ |
(10,235) |
|
|
$ |
388
|
|
|
|
|
|
|
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US statutory rate |
21 |
% |
|
21 |
% |
|
21 |
% |
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|
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Income taxed computed at U. S. federal statutory rate |
$ |
(3,443) |
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|
$ |
(2,149) |
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|
$ |
81 |
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Foreign rate differential |
101 |
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|
(14) |
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|
(155) |
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State and local income taxes, net |
(239) |
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|
(359) |
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|
207 |
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Other non-deductible items |
546 |
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|
(37) |
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|
140 |
|
GILTI |
2,892 |
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|
308 |
|
|
— |
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Change in valuation allowance |
2,305 |
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|
1,493 |
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|
159 |
|
Tax credits |
(474) |
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|
(338) |
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|
(469) |
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Changes in uncertain tax positions |
1,202 |
|
|
881 |
|
|
956 |
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Transaction costs |
1,427 |
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|
578 |
|
|
— |
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Warrants - MTM |
(3,081) |
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|
160 |
|
|
(5) |
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Other |
781 |
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|
714 |
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|
286 |
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Total income tax provision
|
$ |
2,017
|
|
|
$ |
1,237
|
|
|
$ |
1,200
|
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Effective income tax rate
|
(12.3) |
% |
|
(12.1) |
% |
|
309.0
|
% |
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Schedule of Deferred Tax Assets and Liabilities |
Significant components of deferred tax assets and deferred tax liabilities consisted of the following:
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December 31, |
|
2022 |
|
2021 |
Deferred tax assets |
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|
Loss carryforwards |
$ |
11,093 |
|
|
$ |
10,201 |
|
Tax credits |
1,271 |
|
|
1,128 |
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Interest limitation carryforwards |
— |
|
|
25 |
|
R&D capitalization costs |
7,497 |
|
|
— |
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Accrued expenses |
1,157 |
|
|
597 |
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Share-based compensation |
4,398 |
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|
127 |
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Fixed assets |
147 |
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|
180 |
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Lease liabilities |
700 |
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|
— |
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Other |
28 |
|
|
187 |
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Total deferred tax assets, gross
|
26,291
|
|
|
12,445
|
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Valuation allowance |
(18,697) |
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|
(12,445) |
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Total deferred tax assets, net
|
$ |
7,594
|
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|
$ |
—
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Deferred tax liabilities |
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|
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Intangibles |
$ |
(7,239) |
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|
$ |
— |
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Right-of-use asset |
(654) |
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|
— |
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Other |
(190) |
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|
— |
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Total deferred tax liability, net |
$ |
(8,083) |
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|
$ |
—
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Total deferred tax asset (liability) |
$ |
(489) |
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|
$ |
—
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Summary of Operating Loss Carryforwards |
The Company’s gross NOLs for tax return purposes are as follows:
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Year ended December 31, |
|
2022 |
|
2021 |
Domestic NOLs (federal) |
$ |
11,881 |
|
|
$ |
36,817 |
|
Domestic NOLs (state and local) |
10,992 |
|
|
36,245 |
|
Foreign NOLs |
30,804 |
|
|
1,136 |
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Total
|
$ |
53,677
|
|
|
$ |
74,198
|
|
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Schedule of Unrecognized Tax Benefits Roll Forward |
The Company’s unrecognized tax benefits are reconciled as follows:
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December 31, |
|
2022 |
|
2021 |
|
2020 |
Gross unrecognized tax benefits as of January 1
|
$ |
3,162
|
|
|
$ |
2,373
|
|
|
$ |
1,438
|
|
Increases - prior year tax positions |
60 |
|
|
508 |
|
|
— |
|
Decreases - prior year tax positions |
(231) |
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|
(410) |
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|
— |
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Increases - current year tax positions |
2,562 |
|
|
691 |
|
|
935 |
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Position expiration |
(97) |
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—
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|
—
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Gross unrecognized tax benefits as of December 31
|
$ |
5,456
|
|
|
$ |
3,162
|
|
|
$ |
2,373
|
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