Income Taxes

3 Months Ended

Mar. 31, 2025

Income Taxes

Income Taxes

Note 5: Income Taxes

The Company recognized income tax benefit of $185,000 for the three-month period ended March 31, 2025 compared to $158,000 for the three-month period ended March 31, 2024. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to-date period, and then adjusted for any discrete period items. For the three-month periods ended March 31, 2025 and 2024, the variance between our effective tax rate and the U.S. statutory rate of 21% is primarily attributable to state income tax, a benefit related to the Foreign Derived Intangible Income ("FDII") deduction and a lower statutory tax rate applied to the Company's Canadian income. This is partially offset by additional expense associated with vesting of stock-based compensation awards.