| Schedule of Income Before Income Tax, Domestic and Foreign |
The following table summarizes the Company’s income before income taxes (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The following table summarizes the Company’s components of the consolidated provision for income taxes (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
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):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The following table summarizes the temporary differences and carryforwards that give rise to deferred tax assets and liabilities (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
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.
|