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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Taxes [Abstract]  
Income Taxes

5. Income Taxes

 

The Company’s provision for income taxes consists of federal, foreign, and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. Each quarter the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary.

 

For the three months ended March 31, 2024, the Company recorded an income tax benefit of $117,900 consisting primarily of federal, foreign, state and local taxes. The effective tax rate for the three months ended March 31, 2024 was 19.3% which differs from the statutory rate of 21% primarily due to changes in the Company’s valuation allowance, difference in foreign tax rates from the U.S. statutory rate of 21% and state and local taxes. As of March 31, 2024 the Company has continued to conclude that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and the Company maintains a full valuation allowance against such deferred tax assets.

 

For the three months ended March 31, 2023, the Company recorded an income tax benefit of $49,554. The effective tax rate for the three months ended March 31, 2023 was 6.64% which differs from the statutory rate of 21% as the Company has concluded that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis.