Income Taxes |
6 Months Ended |
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Jun. 30, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Note 18. Income Taxes
The Company calculates the provision for income taxes during interim periods by applying an estimate of the forecasted annual effective tax rate for the full fiscal year to "ordinary" income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. The benefit for income taxes was $79 for the six months ending June 30, 2022 compared to $78 for the six months ended June 30, 2021. The effective tax rate, including discrete items, was -0.18% for the period ended June 30, 2022 compared to 3.5% for the six months ended June 30, 2021. The change in the effective tax rate relates primarily to the change in organizational structure stemming from the Business Combination in December of 2021. In addition, the tax provision for the period ended June 30, 2022 is impacted by permanent differences with respect to gains and losses recorded on the earn-out share liability, sponsor share liability, and warrant liabilities, none of which were outstanding liabilities as of June 30, 2021. The Company recorded a deferred tax asset of $4,481 through additional paid in capital related to the exchange during the second quarter of Fathom OpCo's exchangeable Class A Units (and the associated vote-only Class B shares) for an equal number of Class A shares.
The Company evaluates the realizibility of the deferred tax assets on a quarterly basis and establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset may not be realized. For the six months ended June 30, 2022, the Company made no material adjustments to its assertion that deferred tax assets are not more-likely than not to be realized.
As of June 30, 2022, the Company did not recognize income tax expense or benefits associated with uncertain tax positions. |
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- References No definition available.
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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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