Table of Content The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands): December 31, 2023 2022 Deferred tax assets: Accrued compensation and benefits $ 4,710 $ 7,630 Receivables 262 552 Inventory 311 296 Share based compensation 525 258 Other accrued liabilities 1,974 2,940 Tax credit carry forward 3,038 2,314 Interest expense limitation 41,477 28,137 Goodwill and intangible costs 9,110 10,143 Debt transactions 4,174 1,780 Net operating loss carry forwards 45,351 38,860 Other 611 1,770 Deferred tax assets 111,543 94,680 Less: Valuation allowance (93,677) (73,483) Deferred tax assets, net $ 17,866 $ 21,197 Deferred tax liabilities: Property, plant and equipment (15,947) (17,642) Unremitted earnings of foreign subsidiaries (2,960) (3,581) Other (3,476) (3,260) Deferred tax liabilities (22,383) (24,483) Net deferred tax liability $ (4,517) $ (3,286) We successfully negotiated amendments to existing debt instruments and entered into new agreements with lenders. These actions removed the substantial doubt about the Company's ability to continue as a going concern that previously existed and disclosed in prior periods. As of December 31, 2023, a valuation allowance of $93.7 million was recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized, primarily attributable to the domestic operations. However, on the basis of the Company's ability to continue as a going concern, we evaluated all available evidence, both positive and negative and determined that sufficient future taxable income will be generated to allow for the realization of the existing deferred tax assets in certain foreign jurisdictions in which the we operate. As a result, we were able to release $2.9 million of valuation allowance in the current year, primarily attributable to our UK and Australia subsidiaries. These benefits were offset by an increase in valuation allowance of $23.1 million on the expected realizability of our deferred tax assets for federal and state tax net operating loss carryforwards. A significant factor of negative evidence evaluated for the domestic jurisdiction was the cumulative pre-tax loss incurred over the three-year period ended December 31, 2023. As of December 31, 2023, we had net operating loss carryforwards for U.S. federal income tax purposes of $137.8 million, all of which have an indefinite carryforward period. These carryforwards are available, subject to certain limitations such as mentioned above, to offset future taxable income. Further, we have state net operating loss carryforwards of $210.8 million with $177.2 million expiring on various dates through 2043 and $33.5 million with an indefinite carryforward period. As of December 31, 2023, we had interest expense carryforward for U.S. income tax purposes of $174.9 million. The entire $174.9 million has an indefinite carryforward period. These carryforwards are available, subject to certain limitations, to offset future taxable income. As of December 31, 2023, we had $2.9 million of tax credits that will expire on various dates through 2037 if not utilized. As of December 31, 2023, we had foreign net operating loss carryforwards totaling $16.7 million. Of this amount, $0.2 million will expire in various dates through 2033 and $16.5 million has an unlimited carryforward period. As of December 31, 2023, none of our undistributed earnings of foreign operations were considered to be permanently reinvested overseas. As of December 31, 2023, the deferred tax liability related to undistributed earnings of foreign subsidiaries was $2.9 million. 46