XML 26 R16.htm IDEA: XBRL DOCUMENT v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Taxes  
Income Taxes

10. Income Taxes

Income tax expense was approximately $12.2 million and $1.1 million for the three months ended March 31, 2023 and 2022 respectively. The effective tax rate for the three months ended March 31, 2023 and 2022, was 21.8% and 68.8%, respectively. The fluctuation in the rate for the three months ended March 31, 2023 and 2022 results primarily from the relationship of year-to-date income before income tax for the three months ended March 31, 2023 and 2022.

​

The effective tax rates for three months ended March 31, 2023 and 2022, respectively, differs from the US federal statutory rate of 21% primarily due to nonrecognition of tax benefits for loss jurisdictions, the permanent add-back related to the change in fair value of warrant liabilities on the Company’s warrants, the impact of state tax expense based off of gross receipts, and a compensation deduction limitation.

​

The Company accounts for income taxes in interim periods under ASC 740-270, Income Taxes – Interim Reporting, which generally requires us to apply an estimated annual consolidated effective tax rate to consolidated pre-tax income. In addition, the guidance under ASC 740 further provides that, in establishing the estimated annual effective tax rate, the Company excludes losses from jurisdictions in which no tax benefit is expected to be recognized for such losses.