Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

8. Income Taxes

Despite the pretax loss from continuing operations, the income tax benefit in the Condensed Consolidated Statements of Operations is $0 for the three-month period ended March 31, 2024 (compared to an income tax benefit of approximately $264,000 for the three-month period ended March 31, 2023), due to the recording of a valuation allowance against the net deferred tax assets as of March 31, 2024. The valuation allowance was recorded based on management’s determination that it is more likely than not that the Company may not realize the net deferred tax assets in the future.

The effective tax rate benefit for the three-month period ended March 31, 2024 is 0%, compared to an effective tax rate benefit of 21.2% for the three-month period ended March 31, 2023, respectively. The difference between the statutory rate of 21% and the effective tax rate expense of 0% for the three-month period ended March 31, 2024 is due to the recording of the valuation allowance against the net deferred tax assets as of March 31, 2024.