Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of (loss) Income Before Income Tax |
Loss before income taxes consisted of the following:
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Year Ended December 31, |
| 2023 |
|
2022 |
|
2021 |
United States |
$ |
(8,904) |
|
|
$ |
(7,586) |
|
|
$ |
(245) |
|
Foreign |
(88,061) |
|
|
(173,028) |
|
|
(4,994) |
|
Loss before income taxes |
$ |
(96,965) |
|
|
$ |
(180,614) |
|
|
$ |
(5,239) |
|
|
| Schedule of Components of Income Tax Expense |
The components of the provision for (benefit from) income taxes consisted of the following:
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Year Ended December 31, |
|
2023 |
|
2022 |
|
2021 |
Current: |
|
|
|
|
|
Federal |
$ |
1,496 |
|
|
$ |
1,059 |
|
|
$ |
2,631 |
|
State |
649 |
|
|
354 |
|
|
733 |
|
Foreign |
465 |
|
|
(1,208) |
|
|
7,828 |
|
Total |
2,610 |
|
|
205 |
|
|
11,192 |
|
| Deferred: |
|
|
|
|
|
Federal |
(2,305) |
|
|
(2,325) |
|
|
(579) |
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State |
467 |
|
|
(126) |
|
|
(42) |
|
Foreign |
1,149 |
|
|
(1,671) |
|
|
(9,719) |
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| Total |
(689) |
|
|
(4,122) |
|
|
(10,340) |
|
Provision for (benefit from) income taxes |
$ |
1,921 |
|
|
$ |
(3,917) |
|
|
$ |
852 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The (benefit from) provision 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, |
|
2023 |
|
2022 |
|
2021 |
(Benefit from) provision for income taxes at U.S. statutory rate |
$ |
(20,363) |
|
|
$ |
(37,929) |
|
|
$ |
(1,100) |
|
State income taxes, net of federal income tax benefit |
512 |
|
|
250 |
|
|
546 |
|
Permanent differences |
555 |
|
|
266 |
|
|
1,121 |
|
Foreign tax rate differential |
(8,220) |
|
|
(14,900) |
|
|
(886) |
|
Transaction costs |
— |
|
|
— |
|
|
(477) |
|
Equity-based compensation |
1,082 |
|
|
860 |
|
|
1,689 |
|
Goodwill impairment |
21,444 |
|
|
51,990 |
|
|
— |
|
Change in valuation allowance |
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 |
(76) |
|
|
(1,191) |
|
|
(41) |
|
Provision for (benefit from) income taxes |
$ |
1,921 |
|
|
$ |
(3,917) |
|
|
$ |
852 |
|
|
| 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, |
|
2023 |
|
2022 |
| Deferred tax assets: |
|
|
|
| Transaction costs |
$ |
843 |
|
|
$ |
1,327 |
|
Property and equipment |
1,678 |
|
|
1,217 |
|
| Accruals and reserves |
5,201 |
|
|
3,155 |
|
| Lease liabilities |
11,391 |
|
|
10,601 |
|
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|
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Asset retirement obligation |
165 |
|
|
348 |
|
Inventory |
2,427 |
|
|
273 |
|
| Foreign exchange gains / losses |
1,078 |
|
|
150 |
|
Interest limitation |
1,034 |
|
|
551 |
|
Loss carryforwards |
10,472 |
|
|
6,874 |
|
Other |
387 |
|
|
— |
|
| Subtotal |
34,676 |
|
|
24,496 |
|
| Less: Valuation allowance |
(12,158) |
|
|
(4,755) |
|
| Total deferred tax assets |
22,518 |
|
|
19,741 |
|
| Deferred tax liabilities: |
|
|
|
Property and equipment |
(2,427) |
|
|
— |
|
| Intangible assets |
(6,850) |
|
|
(8,372) |
|
Right-of-use assets |
(11,472) |
|
|
(10,668) |
|
|
|
|
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| Foreign exchange gains / losses |
(200) |
|
|
— |
|
| Other |
— |
|
|
85 |
|
| Total deferred tax liabilities |
(20,949) |
|
|
(18,955) |
|
Net deferred assets |
$ |
1,569 |
|
|
$ |
786 |
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