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Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Taxes  
Income Taxes

16. Income Taxes

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The Company is subject to U.S. federal and state income taxes. The income tax provision for interim periods reflects the Company’s estimate of the annual effective tax rate expected to be applicable for the full fiscal year, adjusted for any discrete events which are recorded in the period in which they occur.

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The following table presents information regarding the Company’s income tax provision (benefit) recognized for the three and nine months ended September 30, 2022 and 2021:

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Three Months Ended September 30,

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Nine Months Ended September 30,

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2022

​

2021

​

2022

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2021

Provision for (benefit from) income taxes

$

975

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$

991

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$

(3,253)

​

$

(61,049)

Effective tax rate

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68.1%

    

​

11.0%

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​

15.4%

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(172.0%)

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The benefit from income taxes in the nine months ended September 30, 2022 reflects the tax benefit of the current year loss, which includes the impact of discrete nondeductible transaction costs and excess tax benefits, compared to the benefit in the nine months ended September 30, 2021, which reflected the impact of releasing a majority of the Company’s valuation allowance.

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The Company provides a valuation allowance when it is more likely than not that deferred tax assets will not be realized. In determining the extent to which a valuation allowance for deferred tax assets is required, the Company evaluates all available evidence including projections of future taxable income, carry back opportunities, reversal of certain deferred tax liabilities, and other tax planning strategies. The Company has maintained a valuation allowance on the portion of its deferred tax assets that are not more likely than not to be realized due to tax limitation or other conditions as of September 30, 2022.

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In connection with the BDSI Acquisition, the Company acquired net operating losses and is completing a study to determine the amount of net operating losses that are available and the limitations on use of these acquired operating losses as well as any valuation allowance required on these or other deferred tax assets.