General and Administrative
For the three months ended June 30, 2022, general and administrative expense decreased $(0.2) million, or 6.3 percent, to $2.4 million from $2.6 million for the same period last year. This decrease is primarily due to reduced legal and professional expenses.
For the six months ended June 30, 2022, general and administrative expense increased $0.1 million, or 2.5 percent, to $5.1 million from $5.0 million for the same period last year. This increase is primarily due to higher payroll and benefits expenses offset by reduced legal and professional expenses.
Sales and Marketing
For the three months ended June 30, 2022, sales and marketing expense increased $0.4 million, 17.7 percent, to $2.9 million from $2.5 million for the same period last year. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expenses.
For the six months ended June 30, 2022, sales and marketing expense increased $1.1 million, 23.3 percent, to $5.9 million from $4.8 million for the same period last year. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expenses.
Research and Development
For the three months ended June 30, 2022, research and development expense increased $0.2 million, 46.1 percent, to $0.7 million from $0.5 million for the same period last year. This is primarily due to higher payroll and benefits expenses as well as prototype and consulting expenses related to next generation pump.
For the six months ended June 30, 2022, research and development expense increased $0.3 million, 27.1 percent, to $1.2 million from $0.9 million for the same period last year. This is primarily due to higher payroll and benefits expenses as well as prototype and consulting expenses related to next generation pump.
Other Income / Expense, Net
Other expense, net consists of interest income, foreign currency gains and losses, and other miscellaneous income. For the three months ended June 30, 2022 and 2021, we reported other expense of approximately $13,000. There were no significant changes in these accounts during the three months ended June 30, 2022, compared to the same quarter last year.
For the six months ended June 30, 2022 and 2021, we reported expense of (1,812) and income of 7,532 respectively. The change is primarily due to interest income received in 2021 related to investments.
Income Taxes
For the three and six months ended June 30, 2022, we recorded a provision for income tax expense of $938,631 and $1,511,926 respectively. Our effective tax rate was 22.5 percent and 20.9 percent respectively and differed from the U.S. Federal statutory rate primarily due to U.S. Federal income tax expense, partially offset by benefits from foreign derived intangible income and research and development tax credits.
For the three and six months ended June 30, 2021, we recorded a provision for income tax expense of $387,727 and $772,221, respectively. Our effective tax rate was 20.9 percent and 21.3 percent respectively, and differed from the U.S. Federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from foreign derived intangible income and research and development tax credits.
As of June 30, 2022, and December 31, 2021, we had not identified or accrued for any uncertain tax positions. We are currently unaware of any uncertain tax positions that could result in significant payments, accruals or other material deviations in this estimate over the next 12 months. We believe that our tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from ours, which could result in the imposition of additional taxes and penalties.