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Income Tax Benefit
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Tax Benefit Income Tax Benefit
The following table provides information regarding the Company’s income tax benefit for the three months ended March 31, 2023 and 2022 (dollars in thousands):
Three Months Ended
March 31,
20232022
(unaudited)
Income tax benefit$(7,931)$(10,893)
Effective tax rate(88.0)%(74.0)%

Income tax benefit of $7.9 million for the three months ended March 31, 2023, as compared to $10.9 million for the three months ended March 31, 2022, decreased mainly due to the tax benefits from Adamas legal entity restructuring in the first quarter of 2022. ASC 740, Income Taxes (ASC 740), requires an estimate of the annual effective income tax rate for the full year and apply it to pre-tax income (loss) for each interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate decrease was mainly due to lower pretax earnings forecasted for 2023. The annual forecasted earnings represents the Company's best estimate as of March 31, 2023 and is subject to changes, which could have a material impact on the effective tax rate in subsequent periods.