Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 – Income taxes

We maintain a valuation allowance on our deferred tax assets, including net operating loss (“NOL”) carryforwards. As a result, the Company’s income tax provision is primarily related to cash taxes due in foreign jurisdictions and U.S. deferred taxes for tax deductible goodwill and other indefinite-lived liabilities. During the three months ended June 30, 2024 and 2023, the Company

recorded an income tax provision of $0.6 million and $0.2 million, respectively, resulting in an effective tax rate of (2.4)% and (4.4)%, respectively.

During the six months ended June 30, 2024 and 2023, the Company recorded an income tax provision of $0.9 million and $0.5 million, respectively, resulting in an effective tax rate of (2.2)% and (5.7)%, respectively. These effective tax rates differ from the U.S. federal statutory rate primarily due to the valuation allowance against our deferred tax assets, effects of foreign tax rate differences and U.S. state and local income taxes.

Historically, the Company calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective rate for the full fiscal year to the year-to-date ordinary income or loss, excluding unusual or infrequently occurring discrete items. For the quarter ending June 30, 2024, the Company determined that the year-to-date actual effective tax rate represented the best estimate due to the challenges in forecasting nonrecurring costs and other items related to the renegotiation of the term of the Convertible Debentures and Amended 2021 Credit Agreement.