Note 11 - Income Tax

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11.  Income Tax

Income tax expense (benefit) was $1.0 million and $(0.2) million for the three months ended June 30, 2022 and 2021, respectively, and was $0.8 million and $(0.2) million for the six months ended June 30, 2022 and 2021, respectively. The effective tax rates for the three months ended June 30, 2022 and 2021, were 28.8% and 35.1%, respectively. The effective tax rates for the six months ended June 30, 2022 and 2021, were (23.6)% and 18.0%, respectively.

The difference between the Company’s effective tax rates in 2022 and 2021 compared to the U.S. statutory tax rate of 21% is primarily due to changes in valuation allowances associated with the Company’s assessment of the likelihood of the recoverability of deferred tax assets. The Company currently has valuation allowances against substantially all of its net operating loss carryforwards and tax credit carryforwards.