INCOME TAXES

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 16—INCOME TAXES

The Company recorded an income tax expense of $0.1 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. Our effective tax rate was (25.2)% for the three months ended March 31, 2024 compared to (11.3)% for the three months ended March 31, 2023. The effective rate of (25.2)% differs from the federal statutory rate of 21% primarily due to nondeductible stock compensation, discrete tax benefits related to the valuation allowance, foreign branch income, and other nondeductible expenses including officer compensation.