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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Taxes  
Income Taxes

11. 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%. During Q2 of 2023 a valuation allowance was established against the Company’s French deferred tax asset. For the three months ended September 30, 2023, the Company recorded an income tax provision of $24 thousand related to foreign tax activity on a pretax loss of $23.2 million, resulting in an effective tax rate of (0.10)%. For the three months ended September 30, 2022, the Company recorded an income tax provision of $15 thousand related to foreign tax activity on a pretax income of $18.7 million, resulting in an effective tax rate of (0.08)%. For the nine months ended September 30, 2023, the Company recorded an income tax provision of $159 thousand related to foreign tax activity on a pretax loss of $55.2 million, resulting in an effective tax rate of (0.3)%. For the nine months ended September 30, 2022, the Company recorded an income tax provision of $41 thousand related to foreign tax activity on a pretax loss of $27.6 million, resulting in an effective tax rate of (0.1)%. 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.