Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income (loss) Before Income Tax
Income (loss) from continuing operations before income taxes consisted of the following:
Year Ended December 31,
2022 2021 2020
United States
$ (7,586) $ (245) $ 8,360 
Foreign
(173,028) (4,994) 13,295 
Income (loss) from continuing operations before income taxes
$ (180,614) $ (5,239) $ 21,655 
Schedule of Components of Income Tax Expense
The components of the provision (benefit) for income taxes consisted of the following:
Year Ended December 31,
2022 2021 2020
Current:
Federal
$ 1,059  $ 2,631  $ 2,108 
State
354  733  310 
Foreign
(1,208) 7,828  7,099 
Total
205  11,192  9,517 
Deferred:
Federal
(2,325) (579) 117 
State
(126) (42) (17)
Foreign
(1,671) (9,719) (2,767)
Total (4,122) (10,340) (2,667)
Income tax expense (benefit)
$ (3,917) $ 852  $ 6,850 
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:
Year Ended December 31,
2022 2021 2020
Income tax expense (benefit) at U.S. statutory rate
$ (37,929) $ (1,100) $ 4,548 
State income taxes, net of federal income tax benefit
250  546  246 
Permanent differences
266  1,121  467 
Foreign tax rate differential
(14,900) (886) 1,536 
Transaction costs
—  (477) — 
Equity-based compensation
860  1,689  — 
Goodwill impairment
51,990  —  — 
Change in tax basis of Culture Kings’ inventory and intangibles
(2,233) —  — 
Intra-entity transfer of certain intellectual property rights
(1,030) —  — 
Other
(1,191) (41) 53 
Income tax expense (benefit)
$ (3,917) $ 852  $ 6,850 
Schedule of Deferred Tax Assets and Liabilities
The components of net deferred tax assets (liabilities) were as follows:
Year Ended December 31,
2022 2021
Deferred tax assets:
Transaction costs $ 1,327  $ 2,129 
Property and equipment
1,217  439 
Accruals and reserves 3,706  4,397 
Lease liabilities 10,949  7,005 
Inventory
273  1,653 
Foreign exchange gains / losses 150  92 
Loss carryforwards
6,874  — 
Subtotal 24,496  15,715 
Less: Valuation allowance (4,755) — 
Total deferred tax assets 19,741  15,715 
Deferred tax liabilities:
Intangible assets (8,372) (11,557)
Right-of-use assets
(10,668) (7,041)
Other 85  (37)
Total deferred tax liabilities (18,955) (18,635)
Net deferred assets (liabilities)
$ 786  $ (2,920)