Income Tax Expense

9 Months Ended

Sep. 30, 2022

Income Tax Expense

Income Tax Expense

9.           Income Tax Expense

For the three and nine months ended September 30, 2022, the Company recorded a tax expense of $0.5 million and $1.3 million, respectively. For the three and nine months ended September 30, 2021, the Company recorded a tax benefit of $0.3 million and a tax expense of $0.5 million, respectively.

Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax bases of assets and liabilities using statutory rates. Management of the Company has

evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, including the Company’s history of losses and concluded that it is more likely than not that the Company will not recognize the benefits of its deferred tax assets. On the basis of this evaluation the Company has recorded a valuation allowance against all of its deferred tax assets at September 30, 2022 and December 31, 2021.