Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

The Company’s effective tax rate from continuing operations was 0% for the three and six months ended June 30, 2024 and 2023, respectively. The Company has not recorded a federal income tax provision for the three and six months ended June 30, 2024 and 2023. The Company recorded a nominal state and local income tax provision for the three and six months ended June 30, 2024 and 2023.

The Company assesses the realizability of the deferred tax assets at each reporting date. The Company continues to maintain a full valuation allowance for its U.S. federal and state deferred tax assets, which significantly consists of net operating losses and tax credits. If certain substantial changes in the entity’s ownership occur, there may be an annual limitation on the amount of the carryforwards that can be utilized. The Company will continue to assess the need for a valuation allowance on its deferred tax assets.