Income Taxes

9 Months Ended

Sep. 30, 2023

Income Taxes

Income Taxes

10. Income Taxes

The effective tax rate for the three and nine months ended September 30, 2023 and 2022 was zero percent. As a result of the analysis of all available evidence as of September 30, 2023 and December 31, 2022, the Company recorded a full valuation allowance on its net deferred tax assets. Consequently, the Company reported no income tax benefit for the three and nine months ended September 30, 2023 and 2022. If the Company’s assumptions change and the Company believes that it will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of future income tax expense. If the assumptions do not change, each period the Company could record an additional valuation allowance on any increases in the deferred tax assets.