Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s statutory rate to the effective tax rate for the three and nine months ended September 30, 2024 and 2023 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Statutory tax rate		21.0	%		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		6.0	%		5.8	%		6.0	%		5.8	%
Executive compensation		1.6	%		1.4	%		1.6	%		1.4	%
Corporate-owned life insurance		(0.5	%)		(0.2	%)		(0.5	%)		(0.2	%)
Other permanent differences		0.4	%		0.4	%		0.4	%		0.3	%
Prior year tax adjustments		(11.0	%)		(27.1	%)		(3.7	%)		(10.8	%)
Worthless stock		—			(20.2	%)		—			(7.3	%)
Capital loss		—			—			—			(6.7	%)
Valuation allowance		0.9	%		3.1	%		1.0	%		1.9	%
Equity-based compensation		(0.3	%)		(0.6	%)		(1.7	%)		(1.6	%)
Uncertain tax position		4.2	%		19.1	%		4.4	%		6.9	%
Tax credits		(8.5	%)		(1.3	%)		(8.5	%)		(1.3	%)
Effective tax rate		13.8	%		1.4	%		20.0	%		9.4	%

The prior year tax adjustments, uncertain tax position and tax credits recognized during the three and nine months ended September 30, 2024 and 2023 are both primarily related to the Research & Experimentation (“R&E”) credits.