Quarterly report pursuant to Section 13 or 15(d)

Income Tax

v3.24.2.u1
Income Tax
 9 Months Ended
Jun. 30, 2024
Income Tax  
Income Tax

11. Income Tax

 

The following table presents the provision for income taxes and our effective tax rates for the three and nine-month periods ended June 30, 2024 and 2023:

 

 

 

 Three Months Ended,

June 30,

 

 

 Nine Months Ended,

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Provision for income taxes

 

 $ (2,546 )

 

 $ (6,752 )

 

 $ (3,461 )

 

 $ (6,621 )

Effective tax rate

 

 

 12%

 

 

 -601%

 

 

 14%

 

 

 -258%

 

The effective income tax rates presented are 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.

 

The effective tax rates for the three and nine-month periods ended June 30, 2024 are higher than the statutory tax rate primarily due to the effect of federal tax credits and state and local taxes. The effective tax rates for the three and nine-month periods ended June 30, 2023 are lower than the statutory tax rate primarily due to the effect of a reduction in the valuation allowance on the Company’s then net deferred tax asset (“DTA”) position. The Company had maintained a full valuation allowance during periods prior to the three months ended June 30, 2023.

 

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 three years of cumulative pretax income were achieved that year in the U.S. federal tax jurisdiction, management determined that there was 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.