INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

The components of loss before income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows (in 000's):


	Fiscal Year Ended December 31, 2025		Fiscal Year Ended December 31, 2024		Fiscal Year Ended December 31, 2023
Domestic	$	(11,473)	$	(6,293)	$	5,145
Foreign	(6,165)		(1,537)		(1,908)
Total	$	(17,638)	$	(7,830)	$	3,237

Components of Income Tax Expense (Benefit)

Significant components of income tax expense were as follows (in 000’s):


	Fiscal Year Ended December 31,
	2025		2024		2023
Current
U.S. Federal	$	(2)	$	(81)	$	4,565
State and Local	(55)		521		1,570
Total current income tax expense	(57)		440		6,135
Deferred
U.S. Federal	(4,777)		(95)		1,192
State and Local	(1,155)		(199)		431
Foreign	18		42		(281)
Total deferred income tax (benefit)/expense	(5,914)		(252)		1,342
Total	$	(5,971)	$	188	$	7,477

Effective Income Tax Rate Reconciliation

The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended December 31, 2025 (in 000's):


	Fiscal Year Ended December 31, 2025

Income tax expense/(benefit) computed at federal statutory rate	$	(3,704)	21.0	%
State taxes, net of federal benefit (1)	(1,181)		6.7	%
Foreign tax effects
United Kingdom
Statutory tax rate difference between UK and US	125		(0.7)	%
Deferred tax write-offs	(958)		5.4	%
Valuation allowance changes	2,142		(12.1)	%
Other foreign jurisdictions (2)	4		0.00	%
Nontaxable or nondeductible items
Worthless stock deduction	(2,422)		13.7	%
Other permanent items	156		(0.9)	%
Other reconciling items	(133)		0.7	%
Total	$	(5,971)	(33.8)	%


(1) State and local taxes in California, Florida, and New York City made up the majority (greater than 50%) of the tax effect in this category.
(2) Includes Canada

A reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 21% to the Company's income tax benefit/(expense) was as follows (in 000's):


	Fiscal Year Ended December 31,				Fiscal Year Ended December 31,
	2024				2023
At U.S. Federal statutory tax rate	$	(1,710)	21.0	%	$	629	21.0	%
State income taxes	212		(2.6)	%	1,670		55.7	%
Nondeductible officer compensation	1,381		(17.0)	%	4,769		159.1	%
Valuation allowance and other nondeductible expenses	304		(3.7)	%	409		13.6	%
Total	$	188	(2.3)	%	$	7,477	249.4	%

Deferred Tax Assets and Liabilities

The Company’s deferred taxes consisted of the following (in 000’s):


	December 31,
	2025		2024
Deferred tax assets
Accrued liabilities	$	110	$	39
Net operating losses	2,950		1,368
Operating lease liability	7,185		7,181
Equity-based compensation	1,087		887
163 (j) limitation	3,176		1,837
State bonus depreciation	705		735
Other	750		614
Total deferred tax assets	15,963		12,661
Valuation allowance	—		(793)
Total deferred tax assets, net of valuation allowance	15,963		11,868
Deferred tax liabilities
Property, plant, and equipment	(5,167)		(6,464)
Intangible assets	(5,574)		(4,722)
Right-of-use assets	(5,894)		(6,588)
Prepaid expenses and other current assets	—		(690)
Total deferred tax liabilities	(16,635)		(18,464)
Net deferred taxes	$	(672)	$	(6,596)

Schedule of Income Taxes Paid, Net of Refunds

We adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025. The components of income taxes paid were as follows (in 000's):


	Fiscal Year Ended December 31, 2025
Federal	$	(1,899)
Other State	66
Foreign	—
Income taxes paid, net of refunds	$	(1,833)