Note 9 - Income Taxes

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9. Income Taxes

The Company had an effective tax rate of (5.2)% and 36.3% for the three months ended September 30, 2022 and 2021, respectively, and (0.4)% and 20.5% for the nine months ended September 30, 2022 and 2021, respectively.

The change in effective tax rates for the three-month period ended September 30, 2022 as compared to the three-month period ended  September 30, 2021 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, and stock-based compensation.

The change in effective tax rates for the nine-month period ended  September 30, 2022 as compared to the nine-month period ended  September 30, 2021 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, changes in valuation allowance at various jurisdictions, and stock-based compensation.

The Company continues to evaluate the realizability of its deferred tax assets on a quarterly basis and will adjust such amounts in light of changing facts and circumstances. In making such an assessment, management would consider all available positive and negative evidence, including the level of historical taxable income, future reversals of existing temporary differences, tax planning strategies, and projected future taxable income.