Note 6 - Income Taxes

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 6. INCOME TAXES

On a quarterly basis, we estimate what our effective tax rate will be for the full fiscal year and record a quarterly income tax provision based on the anticipated rate. As the year progresses, we refine our estimate based on the facts and circumstances, including discrete events, by each tax jurisdiction.

Our effective tax rate for the three and six months ended June 30, 2023 was 35% and 31%, respectively. Our effective tax rate for the three and six months ended June 30, 2022 was 21% and 12%, respectively. The primary drivers of the change in the effective tax rate relate to an increase in projected pre-tax book income as well as an increase in the valuation allowance due to Section 174.