Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although the Company believes its tax estimates are reasonable, the Company can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in its historical income tax provisions and accruals. Such differences could have a material impact on the Company’s income tax provision and operating results in the period in which the Company makes such determinations.
The Company is subject to income taxes in the United States and Australia. Significant judgment is required in evaluating the Company’s tax positions and determining the provision for income taxes. During the ordinary course of business, the Company considers tax positions for which the ultimate tax determination is uncertain for the purpose of determining whether a reserve is required, despite the Company’s belief that the tax positions are fully supportable. To date the Company has not established a reserve provision because the Company believes that all tax positions are highly certain.
The following table summarizes our effective tax rate for the periods presented:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Loss before income taxes $ (73,688) $ (16) $ (88,836) $ (3,005)
Benefit from (provision for) income taxes 3,278 (98) 3,833 204
Effective tax rate (4.4)% 612.5% (4.3)% (6.8)%
For the three and nine months ended September 30, 2023, the Company’s benefits from income tax were primarily due to the net loss before income taxes. When compared to the U.S. federal statutory rate of 21.0%, the lower effective tax rates for the three and nine months ended September 30, 2023 were primarily due to non-deductible permanent differences, including the goodwill impairment recorded related to the Culture Kings and Petal & Pup reporting units.