Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2023 was (44.2)%, which varied from the federal statutory rate of 21.0% primarily due to the impact of the partial reversal of the valuation allowance on federal and state deferred tax assets that are capital in nature due to the unrealized gains on marketable securities during the quarter, state income taxes, and permanent differences between financial statement and taxable income.

The Company’s effective tax rate for the three months ended March 31, 2022 was 23.8%, which varied from the federal statutory rate of 21.0% primarily due to the impact of states income taxes and permanent differences between financial statement and taxable income.