v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Schedule of Income (Loss) Before Provision for Income Taxes

The following table represents the components of Income (Loss) before provision for income taxes (in thousands):

 

   Year ended December 31, 
   2025   2024   2023 
United States  $(5,432)  $(44,825)  $(63,831)
International   2,554    219    2,159 
Total  $(2,878)  $(44,606)  $(61,672)
Schedule of Components of Income Tax Provision

The following table summarizes the components of income tax provision (in thousands):

 

   Year ended December 31, 
   2025   2024   2023 
Current:            
Federal  $209   $(57)  $(1,112)
State and Local   614    (14)   (309)
Foreign   708    (1,933)   (582)
    1,531    (2,004)   (2,003)
Deferred:               
Federal   
—
    
—
    
—
 
State and Local   (3)   (47)   (159)
Foreign   475    773    (520)
    472    726    (679)
Provision for (Benefit from) Income Taxes  $2,003   $(1,278)  $(2,682)
Schedule of Reconciliation of U.S. Federal Statutory Tax Rate to Effective Tax Rate

The following table presents a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective tax rate pursuant to the prospective adoption of ASU 2023-09 for the year ended December 31, 2025 (in thousands, except percentages):

 

   Year ended
December 31, 2025		 
At Statutory Rate  $(604)   21.00%
State Income Taxes, Net of Federal Effect   376    (13.08)%
Change in Valuation Allowance   (3,638)   126.41%
Nontaxable or Nondeductible Items          
Stock Based Compensation Permanent   (4,966)   172.55%
Section 162(m) Limitation   9,808    (340.79)%
Stock Based Compensation - Deferred True-Up   212    (7.38)%
Other Nontaxable or Nondeductible Items   30    (1.06)%
Tax Credits          
Federal Research & Development Credits   (68)   2.36%
Other Federal Credits Work Opportunity Tax Credit   (43)   1.50%
Other Tax Credits   9    (0.32)%
Cross-Border Tax Laws          
Subpart F Income   135    (4.67)%
Foreign Branch Income   63    (2.17)%
Other Cross-Border Tax Laws   (8)   0.26%
Worldwide Changes in Unrecognized Tax Benefits   78    (2.70)%
Other          
Return To Provision - Book Income (Loss)   (83)   2.87%
Fixed asset - Deferred True-Up   284    (9.86)%
Mark to Market- Deferred True-Up   (208)   7.24%
Other   (21)   0.72%
Foreign Tax Effects:          
Hong Kong          
Return To Provision - Book Income (Loss)   (192)   6.67%
China          
Foreign Other   (126)   4.39%
Tax Rate Differential   (75)   2.60%
Various (Does Not Include Unrecognized Tax Benefits)   300    (10.42)%
Current Payable True-Up   (304)   10.58%
Other China   11    (0.40)%
Taiwan          
Increase (Decrease) Valuation Allowance   34    (1.19)%
Various (Does Not Include Unrecognized Tax Benefits)   (43)   1.49%
Current Payable True-Up   (171)   5.96%
Other Taiwan   24    (0.85)%
Canada          
Return To Provision - Book Income (Loss)   (174)   6.06%
Increase (Decrease) Valuation Allowance   352    (12.23)%
Various (Does Not Include Unrecognized Tax Benefits)   274    (9.51)%
Current Payable True-Up   626    (21.76)%
Foreign Exchange   102    (3.53)%
Other Cayman Islands   9    (0.33)%
Totals  $2,003    (69.59)%

The following table presents a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective tax rate prior to the adoption of ASU 2023-09:

 

   Year ended December 31, 
   2025   2024   2023 
Federal Taxes at Statutory Rate   21.00%   21.00%   21.00%
State Taxes, Net of Federal Benefit   (14.76)   2.63    2.50 
Permanent Items:               
Other Nondeductible Items   0.84    0.14    (0.35)
Subpart F Income   (4.67)   (0.57)   (1.55)
Stock-Based Compensation   (168.24)   (12.87)   (10.94)
Foreign Withholding Tax   (1.41)   (2.89)   (0.82)
Research & Development Credit   1.71    0.64    0.34 
Global Intangible Low-Taxed Income   
—
    
—
    (0.46)
Foreign Rate Differential and Foreign Tax Credits   (0.75)   1.36    (1.39)
Canada Provision   
—
    
—
    1.92 
Change in Valuation Allowance – U.S. Federal   126.41    (5.24)   (5.61)
Change in Valuation Allowance – U.S. States   (3.30)   (2.89)   (0.07)
Change in Valuation Allowance – Foreign   (13.42)   1.99    3.18 
Change in Uncertain Tax Position (“FIN48”)   3.23    0.51    (2.54)
Prior Year True-Up   (16.23)   
—
    
—
 
Other   
—
    (0.94)   (0.86)
Effective Tax Rate   (69.59)%   2.87%   4.35%
Schedule of Cash Paid Net with Refund

The following table summarized the cash paid, net with refund, for income taxes pursuant to the prospective adoption of ASU 2023-09 for the year ended December 31, 2025 (in thousands):

 

   Year ended
December 31,
2025		 
US - Federal  $100 
US - State     
Indiana   (100)
Other   50 
Total State and Local  $(50)
      
Foreign     
Canada   (1,324)
China   150 
Other   42 
Total Foreign  $(1,132)
Total Income Taxes Refund, Net  $(1,082)
Schedule of Deferred Income Tax Assets and Liabilities The following table summarizes significant components of the Company’s deferred tax assets and liabilities (in thousands):
   As of December 31, 
   2025   2024 
Deferred Tax Assets:        
Accounts Receivable  $2,456   $2,373 
Inventories   1,964    1,416 
Property and Equipment   1,719    1,891 
Reserves and Other Accruals   1,371    1,447 
Stock-Based Compensation   1,220    1,324 
Lease Liabilities   14,212    16,669 
Section 174 Costs   1,914    4,149 
Credits and Other   1,270    1,409 
Net Operating Losses   15,266    17,041 
Gross Deferred Tax Assets   41,392    47,719 
Valuation Allowance   (25,252)   (28,410)
Total Deferred Tax Assets, Net   16,140    19,309 
           
Deferred Tax Liabilities:          
Prepaid Expenses   (1,490)   (1,465)
Other   (1,310)   (1,594)
Right of Use Assets   (12,898)   (15,336)
Total Deferred Tax Liabilities   (15,698)   (18,395)
Net Deferred Tax Assets  $442   $914 
Schedule of Reconciliation of Total Change in Valuation Allowance The following table presents a reconciliation of the total change in the valuation allowance (in thousands):
   Year ended
December 31,		 
   2025   2024 
Beginning Balance  $28,410   $25,670 
Change Charged to Income Tax Expense   (3,158)   2,740 
Ending Balance  $25,252   $28,410 

A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows (in thousands):

 

   Year ended
December 31,		 
   2025   2024 
Beginning Balance  $4,238   $4,242 
Additions Based on Tax Positions Related to the Prior Year   830    101 
Reductions Based on Tax Positions Related to the Prior Year   (711)   
—
 
Additions Based on Tax Positions Related to the Current Year   105    
—
 
Reduction Based on Tax Position Related to Settlements with taxing authorities   
—
    (105)
Reductions Based on Tax Position Related to a Lapse of the Applicable Statute of Limitation   (502)   
—
 
Ending Balance  $3,960   $4,238