INCOME AND OTHER TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME AND OTHER TAXES

INCOME AND OTHER TAXES

The Company’s effective tax rate in the three months ended March 31, 2023 and 2022 was 0%. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21.0% for the three months end March 31, 2023 and 2022, respectively, primarily due to the valuation allowance. The effective tax rate for the three months ended March 31, 2023 is consistent with the three months ended March 31, 2022, as the Company has been in a full valuation allowance for both periods.

As of December 31, 2022, the Company qualified for federal government assistance through employee retention credit (“ERC”) provisions of the Consolidated Appropriations Act of 2021. Management recorded the ERC benefit of $4,106 for the year ended December 31, 2022 as an offset to Selling, general and administrative expense. As of March 31, 2023, the ERC is a current asset in the condensed consolidated balance sheet of $4,261, which includes $156 of interest income. The receipt of the ERC proceeds is expected during Q2 2023.