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INCOME TAXES
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
A reconciliation between the income tax provision at the U.S. statutory tax rate and the Company’s income tax provision on the condensed consolidated statements of income and comprehensive income is below (in thousands, except for tax rates):

Three Months Ended
March 31,
20262025
Income before income taxes$1,466 $11,375 
U.S statutory tax rate21 %21 %
Income tax expense at statutory rate308 2,389 
State and local income taxes, net of federal income tax effect
121 867 
Foreign tax effects:
   Mexico
      Statutory tax rate difference between Mexico and the United States
4 19 
      Return to provision adjustments
347 — 
   Other foreign jurisdictions
7 80 
Non-taxable or Non-deductible expenses:
   Share-based compensation expenses
49 97 
   Non-deductible officer compensation expenses
41 155 
   Other non-deductible expenses
2 18 
Other76 (19)
Total income tax provision$955 $3,606 

Effective income tax rates for interim periods are based upon our current estimated annual rate. The Company’s effective income tax rate varies based upon an estimate of taxable earnings as well as on the mix of taxable earnings in the various states and countries in which we operate. Changes in the annual allocation and apportionment of the Company’s activity among these jurisdictions results in changes to the effective rate utilized to measure the Company’s deferred tax assets and liabilities.

Our income tax provision includes the expected benefit of all deferred tax assets, including our net operating loss carryforwards. With certain exceptions, these net operating loss carryforwards will expire from 2031 through 2037 for federal losses, from 2029 through 2038 for state losses, and from 2038 through 2046 for foreign losses. After consideration of all evidence, both positive and negative, management has determined that no valuation allowance is required at March 31, 2026 on the Company’s U.S. federal or state deferred tax assets; however, a valuation allowance has been recorded at March 31, 2026 on deferred tax assets associated with Canadian, Spanish, Dutch and British net operating loss carryforwards as these foreign subsidiaries have a history of incurring taxable losses in recent years. The valuation allowance will be maintained until sufficient positive evidence exists to support their future realization. Utilization of the Company’s net operating loss carryforwards is subject to limitation under Internal Revenue Code Section 382 and similar tax provisions in the foreign jurisdictions in which we operate.
As presented in the income tax reconciliation above, the tax provision recognized on the condensed consolidated statements of income and comprehensive income was impacted by state taxes, non-deductible officer compensation and share-based compensation tax expenses, return-to-provision adjustments associated with the income tax returns of some of our subsidiaries in Mexico, and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate.