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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

5. Income Taxes

The Company files income tax returns in the U.S. federal and Massachusetts jurisdictions as well as in the Netherlands. The components of the income tax expense (benefit) from continuing operations are as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

 

(In thousands)

 

U.S. federal

 

$

(871

)

 

$

370

 

 

$

580

 

 

$

420

 

U.S. state

 

 

(366

)

 

 

152

 

 

 

235

 

 

 

171

 

Total current income tax benefit

 

$

(1,237

)

 

$

522

 

 

$

815

 

 

$

591

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

1,665

 

 

$

(137

)

 

$

947

 

 

$

(13

)

U.S. state

 

 

690

 

 

 

(58

)

 

 

393

 

 

 

(6

)

Total deferred income tax expense (benefit)

 

$

2,355

 

 

$

(195

)

 

$

1,340

 

 

$

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

Total income tax expense (benefit)

 

$

1,118

 

 

$

327

 

 

$

2,155

 

 

$

572

 

 

After consideration of all positive and negative evidence, we believe that it is more-likely-than-not that the Netherlands deferred tax assets, that are not supported by reversing temporary differences, will not be realized. As a result, we established a full valuation allowance against deferred tax assets of the Netherlands.

Under Dutch tax law, net operating loss carryforwards may be used to offset future taxable income in full up to €1.0 million and 50% of taxable income that exceeds €1.0 million. Effective as of January 1, 2022, these losses can be carried forward indefinitely.