Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes

v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table summarizes the Company’s income before income taxes (in thousands):
Years Ended December 31,
2024 2023
U.S income $ 3,938  $ 1,566 
Non-U.S. income 1,121  285 
Income before income taxes $ 5,059  $ 1,851 
The following table summarizes the Company’s components of the consolidated provision for income taxes (in thousands):
Years Ended December 31,
2024 2023
U.S Federal income tax expense
Current $ —  $ — 
Deferred (1,673) (568)
Total U.S. Federal income tax expense
 (1,673) (568)
State and local income tax expense
Current (488) (245)
Deferred (245) (65)
Total state and local income tax expense (733) (310)
Foreign income tax expense
Current (308) (101)
Total income tax expense
 $ (2,714) $ (979)
The following table summarizes a reconciliation of the Company’s income tax (expense) benefit from the effective income tax rate to the U.S. federal statutory rate (in thousands):
Years Ended December 31,
2024 2023
Income tax expense at the statutory rate $ (1,062) $ (389)
State and local income tax expense (579) (245)
Foreign income tax (62) (16)
Share-Based compensation and other permanent differences (922) (260)
Credits (78) (39)
Other adjustments (11) (30)
Income tax (expense) benefit at effective income tax rate $ (2,714) $ (979)
The following table summarizes the temporary differences and carryforwards that give rise to deferred tax assets and liabilities (in thousands):
December 31, 2024 December 31, 2023
Deferred Federal, state and local tax assets –
Bad debt reserves $ 4,448  $ 3,318 
Stock-based compensation 1,806  1,812 
Net operating loss (a)
 3,434  6,400 
Operating lease liabilities 1,548  1,864 
Accrued compensation 801  792 
Inventories 713  626 
Research & development credits
 555  555 
Other credits 23  102 
Other 1,128  616 
Total deferred Federal, state and local tax assets
 14,456  16,085 
Deferred Federal, state and local tax liabilities –
Depreciation and asset basis differences (4,792) (4,131)
Goodwill and intangible assets (737) (768)
Right-of-use assets (1,377) (1,718)
Derivative financial instruments (362) (353)
Total deferred Federal, state and local tax liabilities
 (7,268) (6,970)
Net deferred tax assets $ 7,188  $ 9,115 
(a) At December 31, 2024 and 2023, this includes state and local net operating losses of $0.4 million and $0.8 million, respectively.
The Company’s U.S. federal net operating loss carryforward for tax purposes was $14.4 million at December 31, 2024, resulting in a federal deferred tax asset of $3.0 million. Approximately $7.8 million of the Company’s U.S. federal net operating loss carryforwards will begin to expire in various years beginning in 2037. U.S. federal net operating loss carryforwards of $6.6 million have an indefinite life. The Company’s state net operating loss carryforward of approximately $0.4 million is comprised of various jurisdictions. These state net operating losses can be used for a period of 5 to 20 years and vary by state, and if unused, begin to expire in 2025, though a substantial portion expires beyond 2025. Approximately less than $0.1 million of the state net operating loss carryforwards have an indefinite life. Tax benefits of operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances.
The Company continues to monitor shifts in past ownership (as defined under Section 382 of the Code).
The Company had no uncertain tax positions for the years ended December 31, 2024 and 2023.
The Company is subject to taxation for Federal and various state jurisdictions in the U.S. and Canada. The Federal income tax returns of the Company for the years 2021 through 2024 are open to examination by the Internal Revenue Service. The state income tax returns and other state tax filings of the Company are subject to examination by the state taxing authorities, for various periods generally up to four years after they are filed. Canadian income tax returns of the Company for the years 2020 through 2024 are subject to examination by the Canada Revenue Agency.