Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES

11. INCOME TAXES

 

Generally, accounting standards require companies to provide for income taxes each quarter based on their estimate of the effective tax rate for the full year. The authoritative guidance for accounting for income taxes allows use of the discrete method when it provides a better estimate of income tax expense. Due to the Company’s valuation allowance position, it is the Company’s position that the discrete method provides a more accurate estimate of income tax expense and therefore income tax expense for the current quarter has been presented using the discrete method. As the year progresses, the Company refines its estimate based on the facts and circumstances by each tax jurisdiction. The following table summarizes income tax expense on income from continuing operations and the effective tax rate for the three- and nine-month periods ended September 30, 2024 and 2023:

 

                         
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  
                         
Provision for income tax   $ 4     $ 4     $ 12     $ 12  
Effective income tax rate     0.3 %     (0.8 %)     0.3 %     3.9 %

 

Income tax expense for both periods was primarily due to state franchise taxes.

 

Other long-term liabilities consisted of uncertain tax positions as of September 30, 2024 and December 31, 2023.