XML 27 R16.htm IDEA: XBRL DOCUMENT v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Taxes  
Income Taxes

10. Income Taxes

Income tax expense was approximately $17.1 million and $40.5 million for the nine months ended September 30, 2024 and 2023 respectively. For the three months ended September 30, 2024 income tax expense was approximately $4.1 million and $14.6 million, respectively. The effective tax rate for the three months ended September 30, 2024 and 2023, was 16.9% and 24.3%, respectively. The effective tax rate for the nine months ended September 30, 2024 and 2023, was 22.5% and 23.0%, respectively. The fluctuation in the tax rate for the nine months ended September 30, 2024 and 2023,

respectively, results primarily from the relationship of income before income tax for the nine months ended September 30, 2024 and 2023, respectively.

​

The effective tax rates for the three and nine months ended September 30, 2024 and 2023, respectively, differs from the US federal statutory rate of 21% primarily due to the permanent add-back related to the change in fair value of warrant liabilities on the Company’s warrants, nonrecognition of tax benefits for loss jurisdictions, the impact of state tax expense based off of gross receipts, a state tax rate change during the three months ended September 30, 2024 as a result of North Dakota’s weighted sales factor election, 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.