Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income (loss) before income tax expense consists of the following:

The components of income tax expense (benefit) are as follows:


	For the Years Ended December 31,
	2025		2024		2023
Current
Federal	$	—	$	229	$	—
State	124		111		1,896
Foreign	(176)		2,116		605
	(52)		2,456		2,501
Deferred
Federal	(11,186)		(2,962)		13,570
State	870		1,368		(382)
Foreign	10,355		4,365		(1,867)
	39		2,771		11,321
Increase (decrease) in valuation allowance	1,814		(3,428)		(11,219)
	1,853		(657)		102
Total income tax expense	$	1,801	$	1,799	$	2,603

Total cash paid for income taxes was as follows:


	For the Year Ended December 31, 2025
Federal	$	—
State:
Utah	(100)
Other	74
	(26)
Foreign:
Canada	2,539
United Kingdom	(672)
	1,867

Total cash paid for income taxes (net of refunds) (1)	$	1,841

(1) Total cash paid for income taxes during the year ended December 31, 2024 was $1.8 million. The Company received income tax refunds of $4.9 million for year ended December 31, 2023 (prior to adoption of ASU 2023-09).

The reconciliation of the statutory United States federal income tax rate to the Company's effective tax rate is as follows:


	For the Years Ended December 31,
	2025		2024		2023
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Nondeductible executive compensation	(1.1)		(8.5)		0.5
Impact of stock-based payment awards	(1.8)		(2.3)		(0.3)
Tax effect of foreign items	(0.6)		(1.9)		(0.4)
State income taxes, net of federal benefit	1.3		(9.1)		2.0
U.S. and foreign tax credits	1.3		1.2		1.3
Uncertain tax positions	(2.9)		—		—
Nondeductible expenses and other	1.2		(2.4)		0.9
Nondeductible transaction costs	(0.2)		(2.1)		—
NOL adjustment, domestic	(2.2)		—		—
NOL adjustment, foreign	25.5		(31.4)		—
Change in the estimated fair value of acquisition-related contingent consideration	(1.4)		—		—
Acquisition adjustments	(8.7)		—		—
Non-controlling interests	(0.7)		2.2		—
Change in valuation allowance, federal and state	(14.4)		(10.0)		—
Change in valuation allowance, foreign	(19.0)		32.1		(20.4)
Effective tax rate	(2.7)	%	(11.2)	%	4.6	%

The reconciliation of the statutory United States federal income tax rate to the Company's effective tax rate is as follows:


	For the Year Ended December 31, 2025
	Dollars		Percentage
Statutory U.S. federal income tax rate	$	(14,055)	21.0	%
State and local income taxes, net of federal income tax effect (1)	325		(0.5)	%
Foreign tax effects
United Kingdom
Change in NOL limitation	(17,062)		25.5	%
Intangible acquisition adjustment	4,524		(6.7)	%
Change in valuation allowances	12,728		(19.0)	%
Other	(195)		0.3	%
Other foreign jurisdictions	114		(0.2)	%
Effect of changes in tax laws/rates enacted in the current period	—		—	%
Effect of cross-border tax laws
Global intangible low-taxed income	523		(0.8)	%
Tax credits
Research and development tax credits	(536)		0.8	%
Changes in valuation allowances	8,700		(13.0)	%
Nontaxable or nondeductible items
Share based payment awards	773		(1.1)	%
Nondeductible officer's compensation	714		(1.1)	%
Change in the estimated fair value of acquisition-related contingent consideration	960		(1.4)	%
Other	192		(0.3)	%
Changes in unrecognized tax benefits	1,728		(2.6)	%
Acquisition adjustments	1,285		(1.9)	%
NOL adjustment	1,441		(2.2)	%
Other adjustments	(358)		0.5	%
Effective tax rate	$	1,801	(2.7)	%

(1) The tax effect in this category was primarily driven by state taxes in Pennsylvania (greater than 50%).

Significant components of the Company's deferred tax assets (liabilities) are as follows:


	December 31,
	2025		2024
Deferred tax assets:
Net operating loss carryforwards	$	54,859	$	55,583
Inventories	2,108		2,344
Capitalized research and development costs	10,889		12,946
Accruals and reserves currently not deductible	1,805		2,754
Depreciation and amortization	114		—
Lease liabilities	2,254		2,497
Stock-based compensation	3,244		3,303
Tax credit carryforwards	6,628		4,184
Net deferred tax asset	81,901		83,611
Valuation allowance	(77,006)		(75,191)
Total deferred tax assets	$	4,895	$	8,420

Deferred tax liabilities:
Depreciation and amortization	—		(2,017)
Acquired intangible assets	(2,220)		(3,981)
Right-of-use assets	(2,073)		(2,266)
Deferred compensation	(331)		—
Total deferred tax liabilities	$	(4,624)	$	(8,264)
Net deferred tax asset	$	271	$	156

The state NOL carryforwards have expirations as follows:

The reconciliation of the Company's unrecognized tax benefits is as follows:


	2025		2024		2023
Balance at January 1	$	333	$	304	$	373
Additions for tax positions of prior periods	1,729		29		—
Reductions for tax positions of prior periods	—		—		(69)
Balance at December 31	$	2,062	$	333	$	304