Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12. INCOME TAXES

Prior to the completion of the Business Combination, CMG was a limited liability company and treated as a partnership for federal and state income tax purposes. A partnership is not a tax-paying entity for federal and state income tax purposes, and as such, the results of operations were allocated to the members for inclusion in their income tax returns. Following the Business Combination, the income of CMG flows through to the Company and is taxed at the federal and state levels accordingly.

Income tax provision was $0.2 million and $0.4 million during the three and six months ended June 30, 2022, respectively, and $0 during the three and six months ended June 30, 2021. The effective tax rate was (1.9)% and (1.4)% during the three and six months ended June 30, 2022, respectively, and 0.0% during the three and six months ended June 30, 2021, based on the assessment of a full valuation allowance, excluding a portion attributable to a "naked credit" deferred tax liability.