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INCOME TAXES
 3 Months Ended
Mar. 31, 2023
INCOME TAXES  
INCOME TAXES

7.    INCOME TAXES:

The Company uses the estimated annual effective tax rate method under ASC 740-270, “Interim Reporting” to calculate the provision for income taxes. The Company recorded a benefit from income taxes of approximately $1.2 million on pre-tax loss from continuing operations of approximately $3.6 million for the three months ended March 31, 2023, which results in an effective tax rate of approximately 32.5%. This rate is based on the estimated annual effective tax rate of approximately 27.6%, and discrete tax benefits of approximately $94,000 primarily related to statutory state tax rates and apportionment changes.

In accordance with ASC 740, “Accounting for Income Taxes,” the Company continues to evaluate the realizability of its net deferred tax assets (“DTAs”) by assessing the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns, tax planning strategies, and future profitability. As of March 31, 2023, the Company believes it is more likely than not that these DTAs will be realized.  

The Company is subject to the continuous examination of our income tax returns by the IRS and other domestic tax authorities. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. The Company believes that it is reasonably possible that a decrease of up to $57,000 of unrecognized tax benefits related to state tax exposures may occur within the next twelve months.