Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision was $93 for the three months ended March 31, 2024 resulting in an effective tax rate of (0.3)%. The income tax benefit was $580 for the three months ended March 31, 2023 resulting in an effective tax rate of 1.8%.

The change in the effective income tax rate for the three months ended March 31, 2024, as compared to the prior period in 2023, is primarily driven by a state tax refund received during the first quarter of the prior period.

The Company's cumulative loss position was significant negative evidence in assessing the need for a valuation allowance on its deferred tax assets. Given the weight of objectively verifiable historical losses from operations, the Company recorded a full valuation allowance on its deferred tax assets. The Company will be able to reverse the valuation allowance when it has shown its ability to generate taxable income on a consistent basis in future periods. The valuation allowance does not have an impact on the Company's ability to utilize any net operating losses or other tax attributes to offset cash taxes payable as these items are still eligible to be used.