Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
 3 Months Ended
Mar. 31, 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- month periods ended March 31, 2024 and 2023:

 

    2024     2023  
    Three Months Ended  
    March 31,  
    2024     2023  
    (unaudited)  
             
Provision for income tax   $ 4     $ 4  
Effective income tax rate     0.7 %     0.9 %

 

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

 

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