Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.24.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX PROVISION (BENEFIT)

The income tax provision (benefit) for the years ended December 31, 2023, 2022 and 2021 consisted of the following:

 

    For the Year Ended  
    December 31,  
    2023     2022     2021  
Federal:                        
Current   $ -     $ -     $ -  
Deferred   $ (7,129 )  

$

 (22,605 )  

$

 (5,691 )
                         
State:                        
Current   $ -    

$

 -     $ -  
Deferred   $ 426     $ (1,430 )  

$

 (1,348 )
                         
Foreign:                        
Current  

$

 1,493    

$

 317    

$

 -  
Deferred  

$

 (7,995 )   $ (4,120 )  

$

 -  
   

$

 (13,205 )  

$

 (27,837 )  

$

 (7,039 )
Change in valuation allowance   $ 14,699    

$

 28,145    

$

 7,039  
Income tax provision (benefit)   $

1,494

     $ 308     $ -  

SUMMARY OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

                         
    For the Year Ended  
    December 31,  
    2023     2022     2021  
Tax benefit at federal statutory rate     (21.0 )%     (21.0 )%     (21.0 )%
State income taxes, net of federal benefit     0.2 %     (1.3 )%     (2.4 )%
Permanent differences:                        
Stock Compensation     1.5 %     0.6 %     0.2 %
Loss on Impairment of Intangibles and Goodwill     9.8 %     0.0 %     0.0 %
Section 162(m)     1.9 %     1.7 %     8.3 %
Other Permanent Differences    

0.2

 %     0.7 %     (0.3 )%
Tax credits     0.0 %     0.0 %     (0.1 )%
Income from non-includable foreign entities    

1.8

 %     4.3 %     1.6 %
Prior year differences     2.3 %     (11.2 )%     1.0 %
Change in valuation allowance    

7.3

 %     30.8 %     12.8 %
Foreign tax    

(3.2

 )%     (4.2 )%     0.0 %
Effective income tax rate     0.7 %     0.3 %     0.0 %

SCHEDULE OF DISAGGREGATION OF DOMESTIC AND FOREIGN PRE-TAX LOSS

The disaggregation of the Company’s domestic and foreign pre-tax loss for the years ended December 31, 2023, 2022, and 2021 is as follows:

 

                         
    For the Year Ended December 31  
    2023     2022     2021  
U.S.   $ (151,883 )   $ (76,528 )   $ (50,803 )
Foreign     (50,315 )     (14,724 )     (4,316 )
Total   $ (202,199 )   $ (91,252 )   $ (55,119 )

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below:

 

                 
    December 31  
    2023     2022  
Deferred Tax Assets:                
Net operating loss carryforwards-federal   $ 64,076     $ 51,722  
Net operating loss carryforwards-states    

9,837

       8,392  
Net operating loss carryforwards-UK    

4,759

       2,584  
Net operating loss carryforwards-Belgium    

8,454

       3,022  
Tax credits    

656

       626  
Stock-based compensation     1,542       5,137  
Accruals    

513

       1,425  
Deferred revenue    

2,052

       441  
Allowance for doubtful accounts    

1,180

       441  
Goodwill    

714

       712  
Capitalized Sec.174 R&E    

1,154

       297  
Other    

633

       522  
Deferred tax assets, gross    

95,569

       75,321  
Deferred Tax Liabilities:                
Intangible Assets     (3,743 )     (5,791 )
Fixed Assets    

(2,226

 )     (488 )
Unrealized Gain/Loss     (80 )     (134 )
Deferred Tax assets reserves     -       (370 )
Other     (81)       (123 )
Deferred tax liabilities, gross     (6,129 )     (6,905 )
                 
Net deferred tax assets     89,440       68,416  
Valuation Allowance     (89,414 )     (68,390 )
Deferred tax assets, net of valuation allowance     26       27  
                 
Change in valuation allowance   $ 21,024     $ 33,122