Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.23.2
Income Taxes
 9 Months Ended
Jun. 30, 2023
Income Taxes  
Income Taxes

12. Income Tax

 

The following table presents the provision for income taxes and our effective tax rate for the three and nine-month periods ended June 30, 2023 and 2022:

 

 

 

Three Months Ended,

June 30,

 

 

Nine Months Ended,

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Provision (benefit) for income taxes

 

 $ (6,752 )

 

 $ 96

 

 

 $ (6,621 )

 

 $ 59

 

Effective tax rate

 

 

 -601%

 

 

 3%

 

 

 -258%

 

 

 0%

 

 

The effective income tax rate on operations is based upon the estimated income for the year and adjustments, if any, in the applicable quarterly periods for the potential tax consequences, benefits, resolutions of tax audits or other tax contingencies.

 

Our effective tax rate for the three and nine-month periods ended June 30, 2023 and 2022, is lower than the statutory tax rate primarily due to the effect of the valuation allowance on the net deferred tax asset (“DTA”) position.

 

As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of June 30, 2023, in part due to the fact that in the current year we achieved three years of cumulative pretax income in the U.S. federal tax jurisdiction, management determined that there is sufficient positive evidence to conclude that it is more likely than not that the deferred taxes are realizable. As a result, the Company released $6,938 of the valuation allowance accordingly during the three-month period ended June 30, 2023.