v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
INCOME TAXES  
INCOME TAXES

NOTE M - INCOME TAXES

Income tax expense (benefit) consisted of (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Current

  ​ ​ ​

Deferred

  ​ ​ ​

Total

Year ended December 31, 2025:

​

​

​

​

​

​

​

​

​

U.S. federal

​

$

217

​

$

1,318

​

$

1,535

U.S. state

​

 

297

​

 

(433)

​

 

(136)

Foreign

​

 

51

​

 

502

​

 

553

Total income tax expense

​

$

565

​

$

1,387

​

$

1,952

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

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 benefit

​

$

(1,200)

​

$

(916)

​

$

(2,116)

​

​

​

​

Tax Rate Reconciliation

The provision (benefit) 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, 2025, 2024 and 2023 due to the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Year Ended December 31,

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

  ​ ​ ​

Amount

  ​ ​ ​

Percent

  ​ ​ ​

Amount

  ​ ​ ​

Percent

U.S. federal statutory tax rate

​

$

2,211

​

21.0

%

​

​

1,646

​

21.0

%

State and local income taxes, net of federal income tax effect (1)

​

​

​

​

​

​

​

​

​

​

​

​

Current state tax provision

​

​

234

​

2.2

%

​

​

284

​

3.6

%

Deferred state tax provision

​

​

(433)

​

(4.1)

%

​

​

562

​

7.2

%

Foreign tax effects

​

​

​

​

​

​

​

​

​

​

​

​

Ireland (2)

​

​

(247)

​

(2.3)

%

​

​

17

​

0.2

%

Effects of cross border tax laws

​

​

611

​

5.8

%

​

​

(14)

​

(0.2)

%

Tax credits

​

​

​

​

​

​

​

​

​

​

​

​

Research and development tax credits

​

​

(480)

​

(4.6)

%

​

​

(621)

​

(7.9)

%

Foreign tax credit

​

​

(344)

​

(3.3)

%

​

​

(10)

​

(0.1)

%

Nontaxable or nondeductible items

​

​

​

​

​

​

​

​

​

​

​

​

Share-based payment awards

​

​

177

​

1.7

%

​

​

467

​

6.0

%

Warrants

​

​

(18)

​

(0.2)

%

​

​

(483)

​

(6.2)

%

Other

​

​

40

​

0.4

%

​

​

138

​

1.8

%

Other adjustments

​

​

201

​

1.9

%

​

​

-

​

-

%

Effective tax rate

​

$

1,952

​

18.5

%

​

$

1,986

​

25.3

%

​

(1)States taxes in Florida and Arizona made up the majority (greater than 50 percent) of the tax effect in this category.
(2)Ireland standard corporation tax rate is 12.5% for the years ended December 31, 2025, 2024, and 2023.

​

​

​

​

​

​

​

Year Ended December 31,

​

  ​ ​ ​

2023

Provision for income tax at the federal statutory rate

​

$

(1,613)

State taxes

​

 

165

Permanent differences

​

 

(328)

Change in valuation allowance 

​

 

(1,313)

Executive compensation

​

​

3,016

Return to provision

​

​

151

FDII deduction

​

​

-

R&D credit

​

​

(1,174)

Stock-based compensation

​

​

(1,020)

Other

​

 

-

Total income tax benefit

​

$

(2,116)

​

Taxes Paid

Income taxes paid (net of refunds received) were as follows (in thousands):

​

​

​

​

​

​

Year ended December 31,

​

​

2025

Federal

  ​ ​ ​

$

(944)

State

​

 

666

Foreign

​

 

(190)

Total net income taxes refunded

​

$

(468)

​

​

The following jurisdictions individually exceeded 5% of total state income taxes paid (net of refunds received) (in thousands):

​

​

​

​

​

​

Year ended December 31,

​

​

2025

Arizona

  ​ ​ ​

$

354

Florida

​

​

328

Texas

​

​

37

Tennessee

​

​

24

Illinois

​

​

(27)

New Mexico

​

​

(49)

All other states

​

​

(1)

Total state

​

$

666

​

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, 2025 and 2024 are as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

  ​ ​ ​

2025

  ​ ​ ​

2024

Deferred tax assets:

 

​

​

​

​

  ​

Net operating losses

​

$

5,895

​

$

2,986

Foreign tax credit carryforwards

​

 

1,272

​

 

768

Inventory basis differences

​

 

9,479

​

 

8,544

Maintenance deposit payments

​

 

127

​

 

10

Deferred revenue

​

 

128

​

 

420

Allowance for doubtful accounts

​

 

374

​

 

276

Start up costs

​

​

526

​

​

566

Stock-based compensation

​

​

1,369

​

​

1,003

Business interest expense - 163(j) limitation

​

​

214

​

​

1,343

Accrued expenses

​

 

562

​

 

11

Lease obligations

​

​

7,344

​

​

8,010

Section 174 capitalization

​

​

-

​

​

4,472

R&D credit

​

​

1,528

​

​

1,055

Other

​

 

424

​

 

162

Total deferred tax assets

​

​

29,242

​

 

29,626

Deferred tax liabilities:

​

 

​

​

 

​

Fixed assets

​

 

(11,716)

​

 

(11,081)

Right-of-use assets

​

​

(6,771)

​

​

(7,582)

Intangible assets

​

​

(1,111)

​

​

(792)

Other

​

​

(860)

​

​

-

Total deferred tax liabilities

​

 

(20,458)

​

 

(19,455)

Deferred income taxes, net

​

$

8,784

​

$

10,171

​

The deferred tax assets are adjusted by a valuation allowance if, based on the weight of available evidence, it is more likely than not that a portion or all the deferred assets will not be realized. After considering all of the evidence, both positive and negative, it was determined more likely than not that the Company's net deferred tax asset in the U.S. jurisdiction will be realizable as of December 31, 2025.

At December 31, 2025 and December 31, 2024, the Company had net operating losses available for carry-forward for Federal income tax purposes of approximately $26.1 million and $13.8 million, respectively. At December 31, 2025, the Company had net operating losses available for carry-forward for State income tax purposes of approximately $9.8 million. These net operating loss carryforwards acquired prior to 2025 will expire on various dates through 2035. Utilization of the net operating loss carryforwards as of December 31, 2025 are subject to annual limitations under Sec. 382 of the Internal Revenue Code. A deferred tax asset has been recorded only for those carryforwards that the Company expects to utilize prior to expiration.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and in Ireland. Tax years beginning in 2022 through 2024 are open for examination by the U.S. Internal Revenue Service and tax years beginning in 2021 through 2024 are open for examination by various state taxing jurisdictions in which the Company is subject to tax. Tax years beginning in 2021 through 2024 are open for examination by the Irish taxing authorities.

ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, and disclosure and transition. As of December 31, 2025 and 2024, there was no reserve for uncertain tax positions.