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Income Taxes
 3 Months Ended
Mar. 31, 2022
Income Taxes [Abstract]  
Income Taxes
Note 3 — Income Taxes

For the three months ended March 31, 2022, we recognized income tax benefit of $1,059 on loss before taxes of $4,379, which is an effective tax rate of 24.45%. The effective tax rate was higher than the statutory federal income tax rate primarily due to the effect of research and development tax credits. For the three months ended March 31, 2021, income tax benefit was $7,193 on loss before income taxes of $33,636 and an effective tax rate of 21.38%. The effective tax rate was higher than the statutory federal income tax rate primarily due to the effect of research and development tax credits.

During the three months ended March 31, 2022, our deferred tax asset increased by $1,059 to $17,009.

A valuation allowance is provided for deferred tax assets when, in our judgment, based upon currently available information and other factors, it is more likely than not that all or a portion of such deferred income tax assets will not be realized. The determination of the need for a valuation allowance is based on an on-going evaluation of current information including, among other things, historical operating results, estimates of future earnings in different taxing jurisdictions and the expected timing of the reversals of temporary differences. We believe the determination to record, or reduce, a valuation allowance associated with a deferred income tax asset is a significant accounting estimate because it is based, among other things, on an estimate of future taxable income in the United States and certain other jurisdictions, which is susceptible to change and may or may not occur, and because the impact of adjusting a valuation allowance may be material. In determining when to release the valuation allowance established against our net deferred income tax assets, we consider all available evidence, both positive and negative. We accumulated a net operating loss (“NOL”) carryforward in the state in which we were once headquartered, which will begin to expire in 2029; none of the NOL carryforward is included in our deferred tax asset because we currently have no operations in the state where such accumulated.

Our tax years for 2005 and forward are subject to examination by the U.S. tax authority and various state tax authorities. These years are open due to NOLs, and tax credits generated in these years were utilized in 2020. The statute of limitation for these years shall expire three years after the date of filing 2020 income tax returns.

We are required to recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. At December 31, 2021 and March 31, 2022, we have no uncertain tax positions. Our policy is to recognize interest and penalties accrued on uncertain tax positions as a component of income tax expense. We had no accrued interest or penalties related to uncertain tax positions at March 31, 2022.