; ForgeRock, Inc. Annual report pursuant to Section 13 and 15(d)

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 Components of Loss Before Income Taxes
The components of loss before income taxes are as follows (in thousands):
December 31,
2022 2021 2020
Domestic
 $ (38,670) $ (25,163) $ (29,166)
International
 (25,924) (21,721) (12,063)
Total loss before income taxes
 $ (64,594) $ (46,884) $ (41,229)
Schedule of Components of Income Tax Provision (Benefit)
The provision for income taxes consisted of the following (in thousands):
December 31,
2022 2021 2020
Current:
Federal $ —  $ —  $ — 
State 52  56  27 
Foreign 1,626  828  538 
Total 1,678  884  565 
Deferred:
Federal —  —  — 
State —  —  — 
Foreign —  —  — 
Total —  —  — 
Provision for income taxes
 $ 1,678  $ 884  $ 565 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory federal income tax rate to our effective tax rate is as follows (in thousands):
December 31,
2022 2021 2020
Pre-tax loss $ (64,594) $ (46,884) $ (41,229)
Federal tax at statutory rate (13,565) (9,846) (8,658)
Stock-based compensation (3,996) (3,102) 24 
Revaluation of preferred warrants and option —  2,110  1,542 
Foreign provision differential (5,127) (5,382) (670)
Change in valuation allowance 27,624  18,389  8,936 
State taxes (1,202) (1,343) (785)
R&D tax credits (5,362) —  — 
Sec 162(m) adjustment 2,354  —  — 
Acquisition related cost 1,296  —  — 
Other (344) 58  176 
Tax expense $ 1,678  $ 884  $ 565 
Schedule of Deferred Tax Assets and Liabilities ignificant components of the Company’s net deferred tax assets and liabilities were as follows (in thousands):
December 31,
2022 2021
Deferred tax assets:
Stock-based compensation $ 3,732  $ 2,756 
Accruals and reserves 2,943  3,693 
Deferred revenue 900  228 
Net operating loss carryforwards – domestic 29,405  30,221 
Net operating loss carryforwards – foreign 38,180  28,245 
Property and equipment 264  307 
Operating lease liabilities 2,230  2,529 
Capitalized research and development 11,326  — 
R&D tax credits 5,363  — 
Tax basis intangible assets 2,758  3,202 
Other 378  — 
Total deferred tax assets 97,479  71,181 
Valuation allowance (91,281) (65,404)
Deferred tax assets, net of valuation allowance 6,198  5,777 
Deferred tax liabilities:
Operating lease right-of-use assets (2,007) (2,489)
Deferred costs (4,191) (3,074)
Other —  (214)
Total deferred tax liabilities (6,198) (5,777)
Net deferred tax assets/(liabilities) $ —  $ — 
Schedule of Unrecognized Tax Benefits
A reconciliation of beginning and ending amount of unrecognized tax benefit is as follows (in thousands):
December 31,
2022 2021 2020
Gross amount of unrecognized tax benefits as of the beginning of the year $ 5,786  $ 2,811  $ 2,184 
Additions based on tax positions related to a prior year —  853  — 
Additions based on tax positions related to the current year 963  2,154  627 
Reductions based on tax positions related to a prior year (4,687) (32) — 
Reductions resulting from statute of limitation lapses (19) —  — 
Gross amount of unrecognized tax benefits as of the end of the year $ 2,043  $ 5,786  $ 2,811