INCOME TAXES |
9 Months Ended |
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Sep. 30, 2024 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES |
13. INCOME TAXES
The income tax expense for the three months ended September 30, 2024 was approximately $41,000 comprised of current state tax expense of $30,000 and foreign tax expense of $11,000. The income tax expense for the nine months ended September 30, 2024 was approximately $119,000 comprised of current state tax expense of $90,000 and foreign tax expense of $29,000. There was no deferred income tax for the three and nine months ended September 30, 2024.
The income tax expense for the three months ended September 30, 2023 was approximately $57,000 comprised of a current tax expense of $30,000, a deferred tax expense of $17,000 and a foreign tax of $10,000. The income tax expense for the nine months ended September 30, 2023 was approximately $204,000 comprised of a current tax expense of $94,000, a deferred tax expense of $81,000 and a foreign tax of $29,000.
The current income tax provision for the three and nine months ended September 30, 2024 and 2023 primarily relates to state minimum taxes and foreign income taxes. The deferred tax provision for the three and nine months ended September 30, 2023 relates to the book and tax difference of amortization on indefinite-lived intangibles, primarily goodwill. To the extent allowable, prior to January 1, 2024, the federal and state deferred tax provision had been offset by the indefinite life net operating loss. As a result of the goodwill impairment charge recorded for the year ended December 31, 2023, no deferred tax liability is currently required.
The Company has incurred cumulative losses, which make realization of a deferred tax asset difficult to support in accordance with ASC 740. Accordingly, a valuation allowance has been recorded against the federal and state deferred tax assets as of September 30, 2024 and December 31, 2023.
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