Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of (loss) Income Before Income Tax
Loss before income taxes consisted of the following:
Year Ended December 31,
2024 2023 2022
United States
$ (5,016) $ (8,904) $ (7,586)
Foreign
(16,645) (88,061) (173,028)
Loss before income taxes
$ (21,661) $ (96,965) $ (180,614)
Schedule of Components of Income Tax Expense
The components of the provision for (benefit from) income taxes consisted of the following:
Year Ended December 31,
2024 2023 2022
Current:
Federal
$ 1,588  $ 1,496  $ 1,059 
State
826  649  354 
Foreign
424  465  (1,208)
Total
2,838  2,610  205 
Deferred:
Federal
1,654  (2,305) (2,325)
State
(115) 467  (126)
Foreign
(48) 1,149  (1,671)
Total 1,491  (689) (4,122)
Provision for (benefit from) income taxes
$ 4,329  $ 1,921  $ (3,917)
Schedule of Effective Income Tax Rate Reconciliation
The provision for (benefit from) 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:
Year Ended December 31,
2024 2023 2022
Benefit from income taxes at U.S. statutory rate
$ (4,549) $ (20,363) $ (37,929)
State income taxes, net of federal income tax benefit
558  512  250 
Permanent differences
618  555  266 
Foreign tax rate differential
(1,532) (8,220) (14,900)
Equity-based compensation
240  1,082  860 
Goodwill impairment
—  21,444  51,990 
Change in valuation allowance
9,186  6,987  — 
Change in tax basis of Culture Kings’ inventory and intangibles
—  —  (2,233)
Intra-entity transfer of certain intellectual property rights
—  —  (1,030)
Other
(192) (76) (1,191)
Provision for (benefit from) income taxes
$ 4,329  $ 1,921  $ (3,917)
Schedule of Deferred Tax Assets and Liabilities
The components of net deferred tax assets were as follows:
Year Ended December 31,
2024 2023
Deferred tax assets:
Transaction costs $ 341  $ 843 
Accruals and reserves 6,175  5,201 
Lease liabilities 18,742  11,391 
Asset retirement obligation
—  165 
Inventory
3,462  2,427 
Foreign exchange gains / losses 653  878 
Interest limitation
2,811  1,034 
Loss carryforwards
9,949  10,472 
Other
679  387 
Subtotal 42,812  32,798 
Less: Valuation allowance (18,777) (12,158)
Total deferred tax assets 24,035  20,640 
Deferred tax liabilities:
Property and equipment
(754) (749)
Intangible assets (5,069) (6,850)
Right-of-use assets
(18,066) (11,472)
Asset retirement obligations
(99) — 
Total deferred tax liabilities (23,988) (19,071)
Net deferred tax assets
$ 47  $ 1,569