INCOME TAXES |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Income Tax Disclosure [Abstract] | |||
| INCOME TAXES |
The income tax expense for the three months ended June 30, 2026 was approximately $102,000 comprised of current state tax expense of $39,000, foreign tax expense of $13,000 and deferred tax expense of $50,000. The income tax expense for the six months ended June 30, 2026 was approximately $154,000 comprised of a current state tax expense of $78,000, foreign tax expense of $26,000 and deferred tax expense of $50,000.
The income tax expense for the three months ended June 30, 2025 was approximately $42,000 comprised of current state tax expense of $30,000 and foreign tax expense of $12,000. The income tax expense for the six months ended June 30, 2025 was approximately $83,000 comprised of current state tax expense of $60,000 and foreign tax expense of $23,000. There was deferred tax expense for the three and six months ended June 30, 2025.
The current income tax provision for the three and six months ended June 30, 2026 and 2025 primarily relates to state minimum taxes and foreign income taxes. The deferred tax provision for the three and six months ended June 30, 2026 relates to the book and tax difference of amortization of goodwill, an indefinite-lived intangible. To the extent allowable, the federal and state deferred tax provisions have been offset by the indefinite life net operating loss.
The Company previously incurred losses, which make realization of a deferred tax asset difficult to support in accordance with ASC 740. Accordingly, a valuation allowance has been recorded against the federal and state deferred tax assets as of June 30, 2026 and December 31, 2025.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, extending key provisions of the 2017 Tax Cuts and Jobs Act including, but not limited to, federal bonus depreciation and deductions for domestic research and development expenditures. OBBBA did not have a material impact on the Company’s condensed consolidated financial statements. |