Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
Note 7—Income Taxes
The following table summarizes the Company’s income tax expense and effective tax rates for the three months ended March 31, 2022 and 2021:
 
    
Three Months Ended March 31,
  
    
2022
    
2021
  
Loss before income taxes
    $ (5,227 )    $ (12,161 ) 
Income tax expense
      4,875       7,291  
    
 
 
    
 
 
  
Effective tax rate
      (93.3 )%      (60.0 )% 
    
 
 
    
 
 
  
The effective tax rate may vary significantly from period to period and can be influenced by many factors. These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities. The difference between the effective tax rate and the federal statutory rate of 21% primarily relates to certain
non-deductible
items, state and local income taxes and the valuation allowance for deferred tax assets of
non-cultivator
entities.
The Internal Revenue Service filed a Notice of Federal Tax Lien against GHHIA Management Inc. on February 23, 2022. The lien is for corporate income taxes, penalties and interest owed by the Company for its tax year ended December 31, 2020.