Income taxes

9 Months Ended

Sep. 30, 2022

Income taxes

Note 17 Income Taxes

Note 17 Income taxes

The following table includes the Company’s income (loss) before income taxes, income tax (expense) benefit, and effective tax rate:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Income (loss) before income taxes	$	14,191,171		$	(27,944,850	)	$	(20,180,603	)	$	(42,801,765	)
Income tax benefit (expense)		183,184			2,715,260			1,772,804			5,908,091
Effective tax rate		(1.3	)%		9.7	%		8.8	%		13.8	%

For the three and nine months ended September 30, 2022 and 2021, the Company utilized the discrete effective tax rate method, as allowed by ASC 740-270-30-18 (ASC 740-270, Income Taxes-Interim Reporting).  The discrete method treats the year-to-date period as if it was the annual period and calculates the income tax expense or benefit on a discrete basis. Currently, the Company believes the use of the discrete method represents the best estimate of our annual effective tax rate.  The Company’s effective tax rate differed from the statutory rate primarily due to the company's permanent book-tax differences. The benefit rate decreased due to unfavorable differences relating to non-deductible stock based compensation, convertible debt, and other non-deductible book expenses, as well as a change in valuation allowance, offset by a favorable permanent difference relating to the change in fair value of derivative liabilities.