INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| INCOME TAXES |
|
| Summary of income tax (benefit) expense |
Income tax (benefit) expense consists of (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
Deferred |
|
Total |
Year ended December 31, 2024: |
|
|
|
|
|
|
|
|
|
U.S. federal |
|
$ |
(410) |
|
$ |
1,456 |
|
$ |
1,046 |
U.S. state |
|
|
360 |
|
|
562 |
|
|
922 |
Foreign |
|
|
4 |
|
|
14 |
|
|
18 |
Total income tax (benefit) expense |
|
$ |
(46) |
|
$ |
2,032 |
|
$ |
1,986 |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
Deferred |
|
Total |
Year ended December 31, 2023: |
|
|
|
|
|
|
|
|
|
U.S. federal |
|
$ |
(1,570) |
|
$ |
(806) |
|
$ |
(2,376) |
U.S. state |
|
|
128 |
|
|
(110) |
|
|
18 |
Foreign |
|
|
242 |
|
|
- |
|
|
242 |
Total income tax expense (benefit) |
|
$ |
(1,200) |
|
$ |
(916) |
|
$ |
(2,116) |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
Deferred |
|
Total |
Year ended December 31, 2022: |
|
|
|
|
|
|
|
|
|
U.S. federal |
|
$ |
10,537 |
|
$ |
(862) |
|
$ |
9,675 |
U.S. state |
|
|
3,015 |
|
|
(405) |
|
|
2,610 |
Foreign |
|
|
2,856 |
|
|
(1,120) |
|
|
1,736 |
Total income tax expense (benefit) |
|
$ |
16,408 |
|
$ |
(2,387) |
|
$ |
14,021 |
|
| Summary of tax rate reconciliation |
The provision for income taxes on pre-tax income differs from the amount computed by applying the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2024, 2023 and 2022 due to the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
Provision for income tax at the federal statutory rate |
|
$ |
1,646 |
|
$ |
(1,613) |
|
$ |
12,155 |
State taxes |
|
|
846 |
|
|
165 |
|
|
1,959 |
Permanent differences |
|
|
(332) |
|
|
(328) |
|
|
218 |
Change in valuation allowance |
|
|
- |
|
|
(1,313) |
|
|
17 |
Executive compensation |
|
|
- |
|
|
3,016 |
|
|
2,562 |
Return to provision |
|
|
(91) |
|
|
151 |
|
|
591 |
FDII deduction |
|
|
- |
|
|
- |
|
|
(3,014) |
R&D credit |
|
|
(538) |
|
|
(1,174) |
|
|
- |
Stock-based compensation |
|
|
467 |
|
|
(1,020) |
|
|
- |
Other |
|
|
(12) |
|
|
- |
|
|
(467) |
Total income tax (benefit) expense |
|
$ |
1,986 |
|
$ |
(2,116) |
|
$ |
14,021 |
|
| Summary of significant components of deferred taxes |
Deferred tax assets and liabilities reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax
effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
2024 |
|
2023 |
Deferred tax assets: |
|
|
|
|
|
|
Net operating losses |
|
$ |
2,986 |
|
$ |
2,005 |
Foreign tax credit carryforwards |
|
|
768 |
|
|
1,109 |
Inventory basis differences |
|
|
8,544 |
|
|
9,269 |
Maintenance deposit payments |
|
|
10 |
|
|
- |
Deferred revenue |
|
|
420 |
|
|
726 |
Allowance for doubtful accounts |
|
|
276 |
|
|
237 |
Start up costs |
|
|
566 |
|
|
634 |
Stock-based compensation |
|
|
1,003 |
|
|
966 |
Business interest expense - 163(j) limitation |
|
|
1,343 |
|
|
- |
Accrued expenses |
|
|
11 |
|
|
22 |
Section 174 capitalization |
|
|
4,472 |
|
|
2,971 |
Lease obligations |
|
|
8,010 |
|
|
7,010 |
R&D credit |
|
|
1,055 |
|
|
434 |
Other |
|
|
162 |
|
|
445 |
Total deferred tax assets |
|
|
29,626 |
|
|
25,828 |
Deferred tax liabilities: |
|
|
|
|
|
|
Fixed assets |
|
|
(11,081) |
|
|
(6,489) |
Right-of-use assets |
|
|
(7,582) |
|
|
(6,659) |
Intangible assets |
|
|
(792) |
|
|
(477) |
Total deferred tax liabilities |
|
|
(19,455) |
|
|
(13,625) |
Deferred income taxes, net |
|
$ |
10,171 |
|
$ |
12,203 |
|