Income Taxes

9 Months Ended

Sep. 30, 2024

Income Taxes

Income Taxes

Note 4: Income Taxes

The Company recognized income tax expense of $14,000 and $77,000 for the three and nine-month periods ended September 30, 2024, compared to $187,000 and $621,000 during the same periods of 2023. 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 and nine-month periods ended September 30, 2024 and 2023, the variance between our effective tax rate and the U.S. statutory rate of 21% is primarily attributable to state income tax and expenses not deductible for tax purposes. For the nine-month period ended September 30, 2024, the effective tax rate was also impacted by additional expense associated with vesting of stock-based compensation.