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Income Taxes
3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective tax rate during each of the three months ended March 31, 2023 and 2022 was 0%, respectively. State minimum taxes combined with losses resulted in an effective tax rate below the statutory tax rate of 21% for the three months ended March 31, 2023.
The Company recognizes tax benefits related to positions taken, or expected to be taken, on its tax returns only if the positions are "more-likely-than-not" sustainable. Once this threshold has been met, the Company's measurement of its expected tax benefits is recognized in its financial statements. The Company does not have any uncertain tax positions that meet this threshold as of March 31, 2023 and December 31, 2022.
The Company is subject to taxation and files income tax returns with the U.S. federal government and various states. The tax periods 2018 through 2022 remain open in most jurisdictions. The Company is not currently under audit by the Internal Revenue Service or other similar tax authorities, and generally is not subject to examination for tax years prior to 2018. At March 31, 2023, the Company's deferred income taxes were in a net asset position mainly due to deferred tax assets generated by net operating losses. The Company assesses the likelihood that its deferred tax assets will be realized. A full review of all positive and negative evidence needs to be considered, including the Company's current and past performance, the market environments in which the Company operates, the utilization of past tax credits, the length of carryback and carryforward periods, and tax planning strategies that might be implemented. Management believes that, based on a number of factors, it is more likely than not that all or some portion of the deferred tax assets may not be realized; accordingly, the Company has provided a valuation allowance against its net deferred tax assets at March 31, 2023 and December 31, 2022.