Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The provision for income taxes are:


	2025			2024			2023
Current:
Federal	$	(367	)	$	(1,131	)	$	8,038
State		6			(271	)		1,211
Foreign		4,445			5,629			3,238

		4,084			4,227			12,487
Deferred:
Federal		(352	)		783			(6,263	)
State		99			1,208			(1,029	)
Foreign		(1,152	)		(336	)		(2,417	)

		(1,405	)		1,655			(9,709	)

Total	$	2,679		$	5,882		$	2,778

Total Income Tax Expense Applying U.S. Federal Income Tax Rate

Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% to income before income tax expense, as a result of the following:


	2025
	Amount			Percentage
Computed tax expense at statutory federal rates		(9,912	)		21.0	%
Increase (decrease) in taxes resulting from:
State taxes, net of federal income tax benefit (1)		115			-0.2	%
Foreign tax effects:
Panama
Other		(518	)		1.1	%
Nicaragua
Change in Valuation Allowance		845			-1.8	%
Other		181			-0.4	%
Brazil
Foreign Rate Differential		(1,139	)		2.4	%
Goodwill Impairment		2,882			-6.1	%
Other		142			-0.3	%
Australia
Goodwill Impairment		700			-1.5	%
Other		(59	)		0.1	%
Costa Rica
Foreign Rate Differential		(858	)		1.8	%
Goodwill Impairment		2,809			-6.0	%
Other		88			-0.2	%
Other foreign jurisdictions		512			-1.1	%
Effect of cross-border tax laws:
Subpart F Income		648			-1.4	%
Tax credits
Research and development (“R&D”) credits		(171	)		0.4	%
Changes in valuation allowance		5,463			-11.6	%
Nontaxable or nondeductible items:
Equity compensation		573			-1.2	%
Other		362			-0.8	%
Changes in unrecognized tax benefits		(115	)		0.2	%
Other adjustments:
Return to provision		(159	)		0.3	%
Other		290			-0.6	%

Total		2,679			-5.9	%

(1)	State taxes in Illinois, Alabama, Florida, Minnesota, Pennsylvania, Louisiana, California, and North Carolina made up the majority (greater than 50%) of the tax effect in this category.

total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% to income before income tax expense, as a result of the following:


	2024			2023
Computed tax expense at statutory federal rates	$	(25,296	)	$	2,162
Increase (decrease) in taxes resulting from:
State taxes, net of federal income tax benefit		(3,117	)		756
Unrecognized tax benefits		(191	)		(585	)
Income tax credits		(288	)		(720	)
Foreign tax rate differential		(2,599	)		1,025
Stock based compensation		685			219
Global intangible low-taxed income		—			685
Change in valuation allowance		29,730			1,376
Return to provision		(1,189	)		158
Nondeductible expenses / (tax deductions)		2,161			(327	)
Gross receipts taxes		398			425
Goodwill impairment		6,471
IP migration		—			(2,455	)
Other		(883	)		59

Total	$	5,882		$	2,778

Components of Income before Provision

(Loss) income before provision for income taxes is as follows:


	2025			2024			2023
Domestic	$	(36,290	)	$	(103,918	)	$	6,672
International		(10,913	)		(16,540	)		3,625

Total	$	(47,203	)	$	(120,458	)	$	10,297

Deferred Tax Assets and Liability

Temporary differences between the consolidated financial statements’ carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2025 and 2024 relate to the following:


	2025			2024
Deferred tax assets
Inventories	$	6,083		$	9,322
Program accrual		8,790			10,486
Vacation pay accrual		685			682
Accrued bonuses and severance		860			882
Bad debt expense		3,323			2,550
Stock compensation		620			1,047
Domestic NOL carryforward		9,319			4,604
Foreign NOL carryforward		7,180			6,297
Tax credits		1,892			1,794
Lease liability		3,578			5,078
Accrued expenses		527			678
Accrued product liability		1,858			—
Unrealized foreign exchange loss		1,152			2,521
Capitalized R&D costs		5,384			7,587
Disallowed interest expense		7,964			3,670
Other		1,298			—

Deferred tax assets		60,513			57,198
Less valuation allowance		(41,386	)		(33,855	)

Deferred tax assets, net	$	19,127		$	23,343

Deferred tax liabilities
Plant and equipment	$	(19,346	)	$	(22,686	)
Lease assets		(3,414	)		(4,895	)
Prepaid expenses		(1,881	)		(1,809	)
Other		—			(700	)

Deferred tax liabilities	$	(24,641	)	$	(30,090	)

Total net deferred tax liabilities	$	(5,514	)	$	(6,747	)

Certain 2024 balances were reclassified to conform with the 2025 presentation.

Gross Unrecognized Tax Benefits

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2025 and 2024 included in other liabilities on the Company’s consolidated balance sheets:


	2025			2024
Balance at beginning of year	$	903		$	1,796
Additions for tax positions related to the current year		97			63
Additions for tax positions related to the prior years		48			—
Reduction for tax positions related to the prior years		(235	)		(995	)
Effect of exchange rate changes		—			39

Balance at end of year	$	813		$	903