INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's total income tax benefit for our (loss) income before income taxes were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Loss before income taxes and equity in losses of unconsolidated affiliates	$	(912)	$	(2,403)	$	(18,749)	$	(3,186)
Total income tax benefit	$	(834)	$	(813)	$	(4,175)	$	(3,429)

There were cash payments for income taxes, net of refunds, of $1.0 million and $2.4 million for the three and nine months ended September 30, 2022, respectively, and there were cash payments of $0.4 million and $1.6 million, respectively, for income taxes for the three and nine months ended September 30, 2021. The Company had a tax benefit of $0.8 million and $4.2 million for the three and nine months ended September 30, 2022, respectively, compared to the tax benefit of $0.8 million and $3.4 million for the three and nine months ended September 30, 2021, respectively. The increase in tax benefit in the nine month period is due to an increased loss for financial reporting purposes. The Company recognized $0.2 million in excess tax expense related to employee share-based compensation for the three months ended September 30, 2022, compared to $0.7 million excess tax benefit recognized for the three months ended September 30, 2021. The Company recognized $0.3 million in excess tax benefits related to employee share-based compensation for the nine months ended September 30, 2022, compared to $1.7 million for the nine months ended September 30, 2021.

As of December 31, 2021, the Company had a deferred tax asset of approximately $5.7 million from net operating losses and tax credits. The Company has a valuation allowance recorded on statutory deferred tax assets in Germany and a partial valuation allowance recorded on state net operating losses in the US. In the third quarter, the Company forecasts an increase of approximately $0.9 million of the valuation allowance through the annual effective tax rate used to estimate income tax expense. The increase is due to forecasted future financial losses in Germany. After the increase, the net valuation allowance is forecasted to be approximately $3.7 million as of December 31, 2022