v3.26.3
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Taxes  
Income Taxes

14. Income Taxes.

(Loss) income from continuing operations before income taxes disaggregated between domestic and foreign is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

Six Months Ended

​

Year Ended

​

  ​ ​ ​

June 30, 2026

  ​ ​ ​

June 30, 2025

  ​ ​ ​

December 31, 2024

Domestic

​

$

(12,827,000)

​

$

324,000

​

$

(11,426,000)

Foreign

​

​

(1,135,000)

​

​

1,299,000

​

​

2,196,000

​

​

$

(13,962,000)

​

$

1,623,000

​

$

(9,230,000)

​

Income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign for the year ended June 30, 2026 and the six months ended June 30, 2025 is as follows:

​

​

​

​

​

​

​

​

​

​

Year Ended

​

Six Months Ended

​

​

June 30, 2026

​

June 30, 2025

Federal

​

$

8,000

​

$

—

Virginia

  ​ ​ ​

​

(63,000)

​

​

105,000

Texas

​

​

24,000

​

​

—

Other states

​

 

(8,000)

​

​

6,000

Foreign - Netherlands

​

 

444,000

​

​

137,000

Foreign - South Africa

​

​

61,000

​

​

(57,000)

​

​

$

466,000

​

$

191,000

​

Income tax (benefit) expense from continuing operations disaggregated by federal (national), state, and foreign is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

Six Months Ended

​

Year Ended

​

  ​ ​ ​

June 30, 2026

  ​ ​ ​

June 30, 2025

  ​ ​ ​

December 31, 2024

Federal

​

$

—

​

$

4,000

​

$

—

State

​

​

72,000

​

​

(2,000)

​

​

21,000

Foreign

​

​

319,000

​

​

317,000

​

​

730,000

Total current tax expense

​

​

391,000

​

​

319,000

​

​

751,000

Federal

​

​

(796,000)

​

​

65,000

​

​

(2,731,000)

State

​

​

(218,000)

​

​

(831,000)

​

​

(193,000)

Foreign

​

​

44,000

​

​

134,000

​

​

(156,000)

Total deferred tax benefit

​

​

(970,000)

​

​

(632,000)

​

​

(3,080,000)

Total income tax benefit

​

$

(579,000)

​

$

(313,000)

​

$

(2,329,000)

​

For the year ended June 30, 2026, six months ended June 30, 2025, and year ended December 31, 2024, the income tax expense (benefit) attributable to noncontrolling interest was $44,000, $(22,000), and $(298,000), respectively.

The reconciliation between the Company’s effective tax rate and its statutory tax rate for the year ended June 30, 2026 and the six months ended June 30, 2025 is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended June 30, 2026

​

Six Months Ended June 30, 2025

​

​

Amount

​

Percent

​

Amount

​

Percent

Federal statutory rate

 

$

(2,915,000)

​

21.0

%

​

$

341,000

​

21.0

%  

State and local taxes, net of federal income tax effect

 

​

(207,000)

​

1.5

​

​

​

64,000

​

3.9

 

Foreign tax effects:

 

​

​

​

​

​

​

​

​

​

​

 

Statutory difference between US and foreign jurisdictions

​

​

(59,000)

​

0.4

​

​

​

63,000

​

3.8

​

Other foreign - Netherlands

​

​

535,000

​

(3.9)

​

​

​

9,000

​

0.6

​

Other foreign - South Africa

​

​

125,000

​

(0.9)

​

​

​

107,000

​

6.6

​

Change in valuation allowance

​

​

(136,000)

​

1.0

​

​

​

3,000

​

0.2

​

Nontaxable or nondeductible items

 

​

15,000

​

(0.1)

​

​

​

5,000

​

0.3

 

Deferred tax rate change

 

​

(77,000)

​

0.6

​

​

​

(887,000)

​

(54.6)

 

Goodwill impairment

​

​

1,978,000

​

(14.3)

​

​

​

-

​

—

​

Other

​

​

162,000

​

(1.2)

​

​

​

(18,000)

​

(1.1)

​

​

 

$

(579,000)

​

4.1

%  

​

$

(313,000)

​

(19.3)

%  

​

Income tax (benefit) expense differs from the expected tax (benefit) expense computed by applying the U.S. federal corporate income tax rate of 21% to (loss) income from continuing operations before income taxes as a result of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

Six Months Ended

​

Year Ended

​

  ​ ​ ​

June 30, 2026

​

June 30, 2025

​

December 31, 2024

Federal statutory rate

 

21.0

%  

​

21.0

%

​

21.0

%

State and local tax, net of federal income tax effect

 

1.5

 

​

3.9

​

​

1.0

​

Foreign tax effects

 

(4.4)

 

​

3.8

​

​

(0.6)

​

Change in valuation allowance

​

1.0

​

​

0.2

​

​

5.4

​

Nontaxable or nondeductible items

 

(0.1)

 

​

0.3

​

​

(0.7)

​

Deferred tax rate change

​

0.6

​

​

(54.6)

​

​

—

​

Goodwill impairment

​

(14.3)

​

​

—

​

​

—

​

Other

 

(1.2)

 

​

6.1

​

​

(0.9)

​

Effective income tax rate

 

4.1

%  

​

(19.3)

%

​

25.2

%

​

Components of resulting noncurrent deferred tax assets (liabilities) are as follows:

​

​

​

​

​

​

​

​

​

​

Year Ended

​

Six Months Ended

​

  ​ ​ ​

June 30, 2026

  ​ ​ ​

June 30, 2025

Deferred tax assets

​

​

​

​

​

​

Accrued expenses and reserves

​

$

38,000

​

$

53,000

Net operating loss and credit carryforwards

​

 

2,413,000

​

 

1,574,000

Right of use liability

​

​

7,351,000

​

​

7,630,000

Other

​

 

48,000

​

 

889,000

Total deferred tax assets

​

$

9,850,000

​

$

10,146,000

​

​

​

​

​

​

​

Deferred tax liabilities

​

 

  ​

​

 

  ​

Property, plant and equipment

​

$

(1,821,000)

​

$

(1,907,000)

Accrued expenses and reserves

​

​

(1,847,000)

​

​

(1,598,000)

Intangible assets

​

​

(4,963,000)

​

​

(5,838,000)

Right of use asset

​

​

(7,073,000)

​

​

(7,450,000)

Other

​

​

(175,000)

​

​

(216,000)

Total deferred tax liabilities

​

$

(15,879,000)

​

$

(17,009,000)

​

​

​

​

​

​

​

Net deferred tax liability before valuation allowance

​

​

(6,029,000)

​

​

(6,863,000)

Less: valuation allowance

​

​

(11,000)

​

​

(147,000)

Net deferred tax liability

​

$

(6,040,000)

​

$

(7,010,000)

​

As of June 30, 2026, the Company had $540,000 of current tax receivables and $1,415,000 of current tax liabilities included in prepaid expenses and other current assets and accrued expenses and other current liabilities, respectively, in the consolidated balance sheets. As of June 30, 2026, the Company had approximately $10,570,000 of federal net operating loss carryforwards available to offset future taxable income. Federal net operating losses generated after 2017 do not expire and may be carried forward indefinitely. The Company also had approximately $3,983,000 of pre-tax state net operating loss carryforwards. The expiration of state NOLs carried forward varies by taxing jurisdiction. Future utilization of NOLs carried forward may be subject to certain limitations under Section 382 of the Internal Revenue Code.

The Company evaluates all significant available positive and negative evidence, including the existence of losses in prior years and its forecast of future taxable income, in assessing the need for a valuation allowance. The underlying assumptions the Company uses in forecasting future taxable income require significant judgment and take into consideration the Company’s recent performance. The change in the valuation allowance for the year ended June 30, 2026 was a decrease of $136,000. The Company’s valuation allowance as of June 30, 2026 was related to state NOLs that are not expected to be utilized.

As of June 30, 2026, and June 30, 2025, there were $119,000 and $35,000 of unrecognized tax benefits, respectively, that if recognized would affect the annual effective tax rate. This liability is reflected as accrued expenses and other current liabilities on the Company’s consolidated balance sheets. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $119,000. The Company recognized accrued interest related to unrecognized tax benefits in tax expense. For the year ended June 30, 2026, six months ended June 30, 2025, and twelve months ended December 31, 2024, the Company recognized approximately $23,000, $-0-, and $1,000, respectively, in interest and penalties.

The Company files income tax returns in the United States and numerous state and local tax jurisdictions. Tax years 2022 and forward are open for examination and assessment by the Internal Revenue Service. With limited exceptions, tax years prior to 2022 are no longer open in major state and local tax jurisdictions.

A reconciliation of the beginning and ending amount of the liability for uncertain tax positions is as follows:

​

​

​

​

​

Balance at December 31, 2024

​

$

35,000

Balance at June 30, 2025

​

​

35,000

Decrease due to tax positions in prior years

​

​

(35,000)

Increase due to tax positions in prior years

​

​

119,000

Balance at June 30, 2026

​

$

119,000

​