|12 Months Ended|
Dec. 31, 2022
|Income Tax Disclosure [Abstract]|
|Income Taxes||Income Taxes
Income (loss) from continuing operations before income taxes consisted of the following:
The components of the provision (benefit) for income taxes consisted of the following:
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:
The foreign tax rate differential relates to differences between the income tax rates in effect in the foreign countries in which the Company operates, in particular Australia where the corporate tax rate is 30%.
The components of net deferred tax assets (liabilities) were as follows:
As of December 31, 2022, the Company had a $7.1 million Australian net operating loss carryforward and a $15.8 million Australian capital loss carryforward on the intra-entity transfer of certain intellectual property rights from Australia to the U.S. As of December 31, 2021, the Company had no net operating loss or capital loss carryforwards. The net operating loss and capital loss carryforwards have no expiration. The Company recorded a full valuation allowance on the capital loss carryforward as of December 31, 2022.
The Company had gross deferred tax assets of $24.5 million and $15.7 million and gross deferred tax liabilities of $19.0 million and $18.6 million at December 31, 2022 and 2021, respectively. Management has determined the gross deferred tax assets are more likely than not realizable, except for the capital loss carryforward.
The Company has not provided deferred taxes on unremitted earnings attributable to foreign subsidiaries that have been considered permanently reinvested. As of December 31, 2022, there are no unremitted earnings from these operations.
As of December 31, 2022 and 2021, the Company had no uncertain tax positions.
The Company is subject to taxation in the United States, Cayman Islands and Australia. For U.S. federal income tax purposes, 2019 and later tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For major U.S. states, 2018 and later tax years remain open for examination by the tax authorities under a four-year statute of limitations. For Australia, 2018 and subsequent tax years remain subject to examination.
The Company is subject to income taxes in the United States and Australia. Significant judgment is required in evaluating the Company’s tax positions and determining the provision for income taxes. During the ordinary course of business, the Company considers tax positions for which the ultimate tax determination is uncertain for the purpose of determining whether a reserve is required, despite the Company’s belief that the tax positions are fully supportable. To date the Company has not established a reserve provision because the Company believes that all tax positions are highly certain.
No definition available.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef