Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 6. Income Taxes

We reported immaterial income tax expense for the three months ended March 31, 2024, which resulted in an effective income tax rate of zero percent. We reported an income tax benefit for the three months ended March 31, 2023 of $0.1 million, which resulted in effective income tax rate of 0.25%. Our effective tax rates differed from the federal statutory rate of 21% due to our valuation allowances against substantially all of our net deferred income tax assets.

In assessing the realizability of deferred income tax assets, we consider whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods at which time those temporary differences become deductible.

In making valuation allowance determinations, we consider all available evidence, positive and negative, affecting specific deferred income tax assets, including the scheduled reversal of deferred income tax liabilities, projected future taxable income, the length of carry-back and carry-forward periods, and tax planning strategies in making this assessment. At March 31, 2024, we maintained a partial valuation allowance against our net deferred income tax assets due to the uncertainty surrounding realization of such assets.