Income Taxes

9 Months Ended

Sep. 30, 2024

Income Taxes

Income Taxes

12. Income Taxes

The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. A valuation allowance has been established against the Company’s U.S. federal and state deferred tax assets, which results in an annualized effective tax rate for the Company’s U.S. operations of 0.0%. During the three months ended September 30, 2023, a valuation allowance was established against the Company’s French deferred tax asset. For the three months ended September 30, 2024, the Company recorded an income tax provision of $26 thousand related to foreign tax activity in India on a pretax loss of $13.6 million, resulting in an effective tax rate of (0.2)%. For the three months ended September 30, 2023, the Company recorded an income tax provision of $24 thousand related to foreign tax activity in India on a pretax loss of $23.2 million, resulting in an effective tax rate of (0.1)%. For the nine months ended September 30, 2024, the Company recorded an income tax provision of $138 thousand related to foreign tax activity on a pretax loss of $69.5 million, resulting in an effective tax rate of (0.2)%. For the nine months ended September 30, 2023, the Company recorded an income tax provision of $159 thousand related to foreign tax activity in India on a pretax loss of $55.2 million, resulting in an effective tax rate of (0.3)%. These effective tax rates differ from the U.S. federal statutory rate primarily due to the valuation allowance against the Company’s domestic and French deferred tax assets.