v3.25.2
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2024
INCOME TAXES  
Schedule of pre-tax income from continuing operations on which the provision for income taxes

The pre-tax income from continuing operations on which the provision for income taxes was computed is as follows for the years ended December 31, 2024 and 2023 (in thousands):

    

2024

    

2023

United States

$

3,627

$

12,579

Foreign

 

 

Total

 

3,627

 

12,579

Schedule of income tax expense

Income tax expense consists of the following for the years ended December 31, 2024 and 2023 (in thousands):

    

2024

    

2023

Current tax expense:

 

  

 

  

Federal

$

1,136

$

3,433

State

 

431

 

1,717

Total tax expense:

 

1,567

 

5,150

Deferred tax benefit

 

  

 

  

Federal

 

(711)

 

(1,873)

State

 

(223)

 

(430)

Total deferred tax benefit

$

(934)

$

(2,303)

Total

$

633

$

2,847

Schedule of reconciliation of income tax

A reconciliation of income tax computed at the U.S. statutory rate of 21% to the effective income tax rate is as follows:

    

2024

    

2023

 

Statutory rate

 

21

%  

21

%

State taxes

 

3

%  

7

%

Meals and entertainment

10

%  

3

%

Excess officer's compensation

1

%  

3

%

Stock based compensation

 

%  

(7)

%

Research and development credit

 

(17)

%  

(4)

%

Other

(1)

%  

%

Effective rate

 

17

%  

23

%

Schedule of tax effects of temporary differences that give rise to deferred tax assets (liabilities)

The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2024 and 2023 are as follows (in thousands):

    

2024

    

2023

Deferred tax assets:

 

  

 

  

Accrued expenses

$

40

$

34

Lease liability

 

3,652

 

4,540

Inventory

 

263

 

261

Stock based compensation

 

611

 

371

Section 174 costs

 

4,259

 

2,829

Deferred tax assets

$

8,825

$

8,035

Deferred tax liabilities:

 

  

 

  

Property and equipment

 

(447)

 

(469)

Finance lease

 

(294)

 

(149)

Prepaid expenses

 

(215)

 

(198)

Right-of-use asset

 

(2,680)

 

(3,172)

Amortization

 

(390)

 

(182)

Deferred tax liabilities

$

(4,026)

$

(4,170)

Net deferred tax assets

$

4,799

$

3,865