Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rates for the three and nine months ended September 30, 2023 and September 30, 2022 differed from the federal statutory rate applied to losses before income taxes primarily as a result of the mix of income, losses and valuation allowances.

The Company recognized an income tax expense of approximately $298 thousand and $92 thousand for the three and nine months ended September 30, 2023 respectively. The Company recognized an income tax expense of approximately $954 thousand and $973 thousand for the three and nine months ended September 30, 2022. The 2023 quarter to date income tax expense recognized for 2023 relates to a current period tax expense that is not offset by a tax benefit as the Company had losses which were fully offset by a valuation allowance in its significant jurisdictions and withholding taxes on foreign income. The 2023 year to date tax expense is partially offset by a prior period favorable adjustment in U.S. income taxes. The income tax expense recognized for 2022 was a result of income in certain jurisdictions. The tax expense was not offset by a tax benefit as the Company had losses which were fully offset by a valuation allowance in its significant jurisdictions.