The income tax provision differed from the amounts computed by applying the U.S. federal income tax rate of 21% to income before income tax for the reasons set forth below (dollars in thousands):


	Three months ended June 30,
	2026				2025
U.S. federal statutory tax rate	$	2,841	21.0	%	$	375	21.0	%
State income taxes, net of federal benefit	277		2.1	%	17		1.0	%
Foreign tax effects	(430)		(3.2)	%	(176)		(9.9)	%
Effect of cross-border tax laws	727		5.4	%	169		9.5	%
Change in valuation allowance	—		—	%	(218)		(12.2)	%
Nontaxable or nondeductible items
Stock-based awards	(48)		(0.4)	%	(188)		(10.5)	%
Executive compensation limit	186		1.4	%	4		0.2	%
Other	28		0.2	%	34		1.9	%
Income tax expense and effective rate	$	3,581	26.5	%	$	17	1.0	%


	Six months ended June 30,
	2026				2025
U.S. federal statutory tax rate	$	4,159	21.0	%	$	1,518	21.0	%
State income taxes, net of federal benefit	432		2.2	%	81		1.1	%
Foreign tax effects	(397)		(2.0)	%	(266)		(3.7)	%
Effect of cross-border tax laws	829		4.2	%	267		3.7	%
Change in valuation allowance	—		—	%	(1,401)		(19.4)	%
Nontaxable or nondeductible items
Stock-based awards	(205)		(1.0)	%	(190)		(2.6)	%
Executive compensation limit	320		1.6	%	8		0.1	%
Other	52		0.2	%	64		0.9	%
Income tax expense and effective rate	$	5,190	26.2	%	$	81	1.1	%