Income Tax

6 Months Ended

Jun. 30, 2024

Income Tax

Income Tax

13. Income Tax

Income taxes have been computed using the asset and liability method in accordance with ASC 740 “Income Taxes”. The Company computes its interim provision for income taxes by applying the estimated annual effective tax rate method. The Company estimates an annual effective tax rate of 0% for the year ending December 31, 2024. The total tax expense or (benefit) during the three months ended June 30, 2024 and 2023, was approximately $0.0 million and $(0.6) million, respectively.

The Company incurred losses for the six month period ended June 30, 2024 and is forecasting additional losses through the year, resulting in an estimated net loss for both financial statement and tax purposes for the year ending December 31, 2024. Due to the Company’s history of losses, there is not sufficient evidence to record a net deferred tax asset associated with the U.S., Australian, and German operations. Accordingly, a full valuation allowance has been recorded related to the net deferred tax assets in those jurisdictions.

At June 30, 2024, the Company had no unrecognized tax benefits that would affect the Company’s effective tax rate.