INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| INCOME TAXES |
|
| Schedule of components of loss before provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
|
2021 |
Domestic |
|
$ |
(262,779) |
|
$ |
(474,942) |
|
$ |
(252,343) |
Foreign |
|
|
(63,597) |
|
|
(266,899) |
|
|
(17,659) |
Loss before income taxes |
|
$ |
(326,376) |
|
$ |
(741,841) |
|
$ |
(270,002) |
|
| Schedule of provision (benefit) for income taxes |
The provision (benefit) for income taxes consists of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
|
2021 |
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(257) |
|
$ |
— |
|
$ |
(33) |
Foreign |
|
|
657 |
|
|
368 |
|
|
— |
State |
|
|
45 |
|
|
35 |
|
|
20 |
Total Current |
|
|
445 |
|
|
403 |
|
|
(13) |
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(892) |
|
|
196 |
|
|
(23,378) |
State |
|
|
(148) |
|
|
16 |
|
|
(5,494) |
Foreign |
|
|
(2,510) |
|
|
(2,113) |
|
|
(783) |
Total Deferred |
|
|
(3,550) |
|
|
(1,901) |
|
|
(29,655) |
Benefit for income taxes |
|
$ |
(3,105) |
|
$ |
(1,498) |
|
$ |
(29,668) |
|
| Schedule of reconciliation of the expected income tax benefit computed using the federal statutory income tax rate |
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|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
2022 |
|
2021 |
|
Effective income tax rate: |
|
|
|
|
|
|
|
|
|
|
Expected income tax benefit at the federal statutory rate |
|
|
21 |
% |
|
21 |
% |
|
21 |
% |
State taxes |
|
|
1 |
% |
|
2 |
% |
|
(2) |
% |
Change in valuation allowance |
|
|
(15) |
% |
|
(9) |
% |
|
(4) |
% |
Goodwill impairment |
|
|
(9) |
% |
|
(15) |
% |
|
— |
% |
Research and development credit carryover |
|
|
— |
% |
|
— |
% |
|
(1) |
% |
Stock-based compensation expense |
|
|
(1) |
% |
|
(1) |
% |
|
3 |
% |
Warrant Expense |
|
|
— |
% |
|
— |
% |
|
(5) |
% |
Permanent differences |
|
|
— |
% |
|
— |
% |
|
— |
% |
Other |
|
|
4 |
% |
|
2 |
% |
|
(1) |
% |
Effective income tax rate |
|
|
1 |
% |
|
(0) |
% |
|
11 |
% |
|
| Schedule of deferred tax assets and liabilities |
As of the years ended December 31, 2023 and 2022, deferred tax assets and liabilities consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
Deferred tax assets: |
|
|
|
|
|
|
Federal and state net operating carryforwards |
|
$ |
181,666 |
|
$ |
185,842 |
Research and development and other credits |
|
|
10,974 |
|
|
10,974 |
Start-up costs |
|
|
11,548 |
|
|
11,854 |
Stock-based compensation |
|
|
3,630 |
|
|
3,554 |
Capitalized research and development |
|
|
53,702 |
|
|
20,793 |
Reserves and accruals |
|
|
4,034 |
|
|
3,311 |
Deferred lease liability |
|
|
11,456 |
|
|
7,581 |
Depreciation |
|
|
140 |
|
|
— |
Divisional foreign entity deferred |
|
|
— |
|
|
— |
Other deferred tax assets |
|
|
7,885 |
|
|
7,960 |
Total gross deferred tax asset |
|
|
285,035 |
|
|
251,869 |
Valuation allowance |
|
|
(244,400) |
|
|
(195,309) |
Net deferred tax asset |
|
|
40,635 |
|
|
56,560 |
Deferred tax liabilities: |
|
|
|
|
|
|
Right‑of‑use asset |
|
|
(11,159) |
|
|
(7,234) |
Intangible assets |
|
|
(32,999) |
|
|
(56,794) |
Depreciation |
|
|
— |
|
|
(962) |
Other |
|
|
— |
|
|
— |
Total deferred tax liabilities |
|
|
(44,158) |
|
|
(64,990) |
Net deferred tax liability |
|
$ |
(3,523) |
|
$ |
(8,430) |
|
| Schedule of changes in the valuation allowance for deferred tax assets |
Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2023 and 2022 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
Valuation allowance at beginning of the year |
|
$ |
195,309 |
|
$ |
127,150 |
Increases recorded to income tax provision |
|
|
52,420 |
|
|
68,159 |
Decreases recorded as a benefit to income tax provision |
|
|
(3,329) |
|
|
— |
Valuation allowance at end of year |
|
$ |
244,400 |
|
$ |
195,309 |
|
| Schedule of reconciliation unrecognized tax liabilities |
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
Unrecognized tax liability, beginning of year |
|
$ |
997 |
|
$ |
997 |
Unrecognized tax liability acquired through purchase accounting |
|
|
— |
|
|
— |
Decreases for tax positions taken related to a prior period |
|
|
(221) |
|
|
— |
Unrecognized tax liability, end of year |
|
$ |
776 |
|
$ |
997 |
|