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 TAX PROVISION (BENEFIT)

The income tax provision (benefit) for the years ended December 31, 2022, 2021 and 2020 consisted of the following:

  

    For the Years Ended  
    December 31,  
    2022     2021     2020  
Federal:                        
Current   $ -     $ -     $ -  
Deferred     (22,605 )     (5,691 )     (4,452 )
                         
State:                        
Current   -     -     -  
Deferred     (1,430 )     (1,348 )     (1,060 )
                         
Foreign:                        
Current    

317

      -       -  
Deferred    

(4,120

)     -       -  
      (27,837 )     (7,039 )     (5,512 )
Change in valuation allowance     28,145       7,039       5,512  
Provision for income taxes   $ 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 Years Ended  
    December 31,  
    2022     2021     2020  
Tax benefit at federal statutory rate     (21.0 )%     (21.0 )%     (21.0 )%
State income taxes, net of federal benefit     (1.3 )%     (2.4 )%     (5.0 )%
Permanent differences:                        
Stock-based compensation     0.6 %     0.2 %     (5.0 )%
Other     2.3 %     7.9 %     1.0 %
Tax credits     0.0 %     (0.1 )%     0.0 %
Income from non-includable foreign entities     4.3 %     1.6 %     0.0 %
Prior year differences     (11.2 )%     1.0 %     (1.0 )%
Change in valuation allowance     30.8 %     12.8 %     31.0 %
Foreign tax    

(4.2

)%    

0.0

%    

0.0

%
Effective income tax rate     0.3 %     0.0 %     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, 2022, 2021, and 2020 is as follows:

  

                         
    For the Year Ended
December 31
 
    2022     2021     2020  
U.S.   $ (76,528 )   $ (50,803 )   $ (17,635 )
Foreign     (14,724 )     (4,316 )     (211 )
Total    $ (91,252 )   $ (55,119 )   $ (17,846 )
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,  
    2022     2021  
Deferred Tax Assets:                  
Net operating loss carryforwards - federal   $ 51,722     $ 32,351  
Net operating loss carryforwards - states    

8,392

     

-

 
Net operating loss carryforwards - UK    

2,584

     

-

 
Net operating loss carryforwards - Belgium    

3,022

     

-

 
Tax credits    

626

     

593

 
Stock-based compensation     5,137       1,210  
Accruals    

1,425

      663  
Deferred revenue    

441

     

-

 
Allowance for doubtful accounts     441       216  
Goodwill    

712

      728  
Capitalized Sec. 174 R&E     297       -  
Intangible assets     -       183  
Other     522       115  
Deferred tax assets, gross      75,321       36,059  
Deferred Tax Liabilities:                
Intangibles    

(5,791

)     -  
Fixed assets     (488 )     (793 )
Unrealized gain/loss    

(134

)    

-

 
Deferred tax asset reserve     (370 )     -  
Other    

(123

)     2
Deferred tax Liabilities, gross      (6,905 )     (791 )
                 
Net deferred tax assets     68,417       35,268  
Valuation allowance     (68,390 )     (35,268 )
Deferred tax assets, net of valuation allowance     27       -  
                 
Change in valuation allowance   $ 33,122     $ 7,039