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 |
Income (loss) from continuing operations before income taxes consisted of the following:
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Year Ended December 31, |
2022 |
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2021 |
|
2020 |
United States |
$ |
(7,586) |
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|
$ |
(245) |
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|
$ |
8,360 |
|
Foreign |
(173,028) |
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|
(4,994) |
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|
13,295 |
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Income (loss) from continuing operations before income taxes |
$ |
(180,614) |
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|
$ |
(5,239) |
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|
$ |
21,655 |
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Schedule of Components of Income Tax Expense |
The components of the provision (benefit) for income taxes consisted of the following:
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Year Ended December 31, |
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2022 |
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2021 |
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2020 |
Current: |
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Federal |
$ |
1,059 |
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|
$ |
2,631 |
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|
$ |
2,108 |
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State |
354 |
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|
733 |
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|
310 |
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Foreign |
(1,208) |
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|
7,828 |
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|
7,099 |
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Total |
205 |
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|
11,192 |
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|
9,517 |
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Deferred: |
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Federal |
(2,325) |
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|
(579) |
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|
117 |
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State |
(126) |
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|
(42) |
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(17) |
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Foreign |
(1,671) |
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(9,719) |
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(2,767) |
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Total |
(4,122) |
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|
(10,340) |
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|
(2,667) |
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Income tax expense (benefit) |
$ |
(3,917) |
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|
$ |
852 |
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|
$ |
6,850 |
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Schedule of Effective Income Tax Rate Reconciliation |
The provision (benefit) for income taxes differs from the tax computed using the statutory U.S. federal income tax rate of 21% as a result of the following items:
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Year Ended December 31, |
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2022 |
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2021 |
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2020 |
Income tax expense (benefit) at U.S. statutory rate |
$ |
(37,929) |
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|
$ |
(1,100) |
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$ |
4,548 |
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State income taxes, net of federal income tax benefit |
250 |
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|
546 |
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|
246 |
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Permanent differences |
266 |
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|
1,121 |
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|
467 |
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Foreign tax rate differential |
(14,900) |
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|
(886) |
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|
1,536 |
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Transaction costs |
— |
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|
(477) |
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— |
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Equity-based compensation |
860 |
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|
1,689 |
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— |
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Goodwill impairment |
51,990 |
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— |
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— |
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Change in tax basis of Culture Kings’ inventory and intangibles |
(2,233) |
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— |
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— |
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Intra-entity transfer of certain intellectual property rights |
(1,030) |
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— |
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— |
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Other |
(1,191) |
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(41) |
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|
53 |
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Income tax expense (benefit) |
$ |
(3,917) |
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|
$ |
852 |
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|
$ |
6,850 |
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Schedule of Deferred Tax Assets and Liabilities |
The components of net deferred tax assets (liabilities) were as follows:
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Year Ended December 31, |
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2022 |
|
2021 |
Deferred tax assets: |
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Transaction costs |
$ |
1,327 |
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$ |
2,129 |
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Property and equipment |
1,217 |
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|
439 |
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Accruals and reserves |
3,706 |
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|
4,397 |
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Lease liabilities |
10,949 |
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|
7,005 |
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Inventory |
273 |
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|
1,653 |
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Foreign exchange gains / losses |
150 |
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|
92 |
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Loss carryforwards |
6,874 |
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— |
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Subtotal |
24,496 |
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|
15,715 |
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Less: Valuation allowance |
(4,755) |
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— |
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Total deferred tax assets |
19,741 |
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|
15,715 |
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Deferred tax liabilities: |
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Intangible assets |
(8,372) |
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(11,557) |
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Right-of-use assets |
(10,668) |
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(7,041) |
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Other |
85 |
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(37) |
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Total deferred tax liabilities |
(18,955) |
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|
(18,635) |
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Net deferred assets (liabilities) |
$ |
786 |
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$ |
(2,920) |
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