v3.23.3
INCOME TAXES
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESYear-to-date income tax expense or benefit is the product of the most current projected annual effective tax rate (“PAETR”) and the actual year-to-date pretax income (loss) adjusted for any discrete items. The income tax expense or benefit for a particular quarter, is the difference between the year-to-date calculation of income tax expense or benefit and the year-to-date calculation for the prior quarter. Items
unrelated to current period ordinary income or loss are recognized entirely in the period identified as a discrete item of tax.
The Company’s PAETR differs from the US federal statutory rate of 21.0% during the three and nine months ended September 30, 2023 and 2022 primarily due to the impact of maintaining a US valuation allowance provided on US deferred tax assets.
The Company continues to maintain a full valuation allowance on US federal and state net deferred tax assets for the period ending September 30, 2023 as a result of cumulative pre-tax losses incurred since the Company’s inception in early 2012.
The Company’s income before taxes, income tax provision or benefit and effective tax rates were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands, except percentages)2023202220232022
Income (loss) before income taxes$2,932 $(18,392)$2,644 $(45,422)
Provision (benefit) for income taxes125 53 $(1,306)$222 
Effective tax rate4.3 %(0.3)%(49.4)%(0.5)%
During the three and nine months ended September 30, 2023, the Company recognized a discrete tax benefit attributable to the excess tax benefits of stock-based compensation. This discrete benefit was the primary driver of the nine months ended September 30, 2023 tax benefit recorded as well as changes to the effective tax rate versus the prior year.