Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11. INCOME TAXES

The effective tax rates for the six months ended June 30, 2022 and 2021 are as follows:

	Six Months Ended June 30,
	2022			2021
Effective tax rate		(0.546	%)		(16.00	%)

For the three months ended June 30, 2022 and 2021, the Company recorded tax expense of $73 and $178, respectively. For six months ended June 30, 2022 and 2021, the Company recorded tax expense of $105 and $332, respectively.

The Company’s 2022 and 2021 income tax expense and rates differed from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of the full valuation allowance recorded against deferred tax assets in both the U.S. and Finland. In addition, the tax rate is lower than the U.S. statutory federal tax rate as a result of foreign earnings that are taxed at lower tax rates.

The Company continues to monitor the realization of its deferred tax assets and assesses the need for a valuation allowance. The Company analyzes available positive and negative evidence to determine if a valuation allowance is needed based on the weight of the evidence. This objectively verifiable evidence includes the current & prior two years' profit and loss positions after considering pre-tax book income plus or minus permanent adjustments as well as other positive & negative evidence available. This process requires management to make estimates, assumptions, and judgments that are uncertain in nature. The Company has established a valuation allowance with respect to deferred tax assets in the U.S. and Finland and continues to monitor and assess potential valuation allowances in all its jurisdictions.