Income Taxes

3 Months Ended

Sep. 30, 2023

Income Taxes [Abstract]

Income Taxes

6. INCOME TAXES

The provision for income taxes for the interim periods is based on an estimate of the Company’s annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. The Company’s effective tax rate for the quarters ended September 30, 2023, and September 30, 2022, was 44.2% and (175.5%), respectively. For the three months ended September 30, 2023, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and impact of foreign operations. For the three months ended September 30, 2022, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and the impact associated with uncertain tax positions.