Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.22.2
Income Taxes
6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 18. Income Taxes

The components of income tax expense are as follows for the periods presented (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

$

 

 

$

 

 

$

 

 

$

 

 

State

 

 

4

 

 

 

18

 

 

 

20

 

 

 

15

 

Total current

 

 

4

 

 

 

18

 

 

 

20

 

 

 

15

 

Total provisions for (benefit from) income taxes

$

 

4

 

$

 

18

 

$

 

20

 

$

 

15

 

 

The Company's effective tax rate was (0.10)% and (0.45)% for the three months ended June 30, 2022 and 2021, respectively, and (0.25)% and (0.46)% for the six months ended June 30, 2022 and 2021, respectively. The effective tax rates for the three and six months ended June 30, 2022 and 2021 differ from the U.S. federal statutory tax rates primarily due to a full valuation allowance related to the Company's deferred tax assets offset by state taxes.

The Company is subject to taxation in the United States and various state jurisdictions. The Company is generally subject to examination by tax authorities in the U.S. federal and state jurisdictions for 2018 and 2017, respectively, and forward. However, to the extent allowed by law, the taxing authorities may have the right to examine periods where net operating losses were generated and carried forward, and make adjustments to the amount of the net operating losses. The Company is not currently under examination by any jurisdictions.

As of June 30, 2022, the Company has not recognized any liability for unrecognized tax benefits. The Company expects any resolution of unrecognized tax benefits, if created, would occur while the full valuation allowance of deferred tax assets is maintained; therefore, the Company does not expect to have any unrecognized tax benefits that, if recognized, would affect the effective tax rate. The Company does not expect a significant change in the amount of unrecognized tax benefits in the next twelve months. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2022, the Company had no accrual for the payment of interest or penalties.