INCOME TAXES

9 Months Ended

Sep. 30, 2022

INCOME TAXES

INCOME TAXES

10. INCOME TAXES

The estimated annual effective tax rate for the nine months ended September 30, 2022 was 32.1% as compared to 45.1% for the year ended December 31, 2021. Income tax expense for the nine months ended September 30, 2022 is primarily related to federal, state and local income taxes imposed on the Company’s allocable portion of taxable income from Focus LLC and reflects an estimated valuation allowance of $9,298 for deferred tax assets relating to business interest carryforwards. The allocable portion of taxable income primarily differs from the net income attributable to the Company due to permanent differences such as non-deductible equity-based compensation expense of Focus LLC.

During the nine months ended September 30, 2022, there were no changes to the Company’s uncertain tax positions.