Note 7 - Income Taxes

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. Income Taxes

The Company had an effective tax rate of 5.9% and (106.5)% for the three and nine months ended September 30, 2024, respectively, and (204.5)% and (45.7)% for the three and nine months ended  September 30, 2023, respectively.

The change in effective tax rates for the three-month period ended September 30, 2024 as compared to the three-month period ended  September 30, 2023 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, the impact of foreign inclusions, stock-based compensation and changes in valuation allowance in certain jurisdictions.

The change in effective tax rates for the nine-month period ended September 30, 2024 as compared to the nine-month period ended  September 30, 2023 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, the impact of foreign inclusions, stock-based compensation and changes in valuation allowance in certain jurisdictions.

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 supporting data, including the level of historical taxable income, future reversals of existing temporary differences, tax planning strategies, and projected future taxable income.