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Income Taxes
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2024, the Company recorded an income tax provision of $50,591 and an income tax benefit of $67,309, respectively. The effective tax rate for the three and six months ended June 30, 2024 was (5.25)% and 4.79%, respectively. The effective tax rate differs from the statutory rate of 21%, primarily related to changes in the Company’s valuation allowance, differences in foreign tax rates from the U.S. statutory rate of 21%, and state and local taxes. The Company continues to conclude that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and maintains a full valuation allowance against such deferred tax assets.

 

For the three and six months ended June 30, 2023, the Company recorded an income tax provision of $101,059 and $51,505, respectively, primarily related to a discrete item related to the filing of the Company’s Canadian tax return. The effective tax rate for the three and six months ended June 30, 2023 was 42.70% and (9.34)%, respectively. The effective tax rate differs from the statutory rate of 21% as the Company has concluded that its deferred tax assets are not realizable on a more-likely-than-not basis.