XML 62 R42.htm IDEA: XBRL DOCUMENT v3.26.1
PROVISION FOR INCOME TAXES AND DEFERRED INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes
Provision for income taxes consisted of the following (in thousands):
Year Ended December 31,
20252024
Current:
Federal$10,812 $12,392 
State1,122 (1,894)
Total Current11,934 10,498 
Deferred:
Federal— — 
State— — 
Total Deferred— — 
Total Provision for Income Taxes$11,934 $10,498 
Schedule of Income Taxes Paid, Net of Refunds
The income taxes paid, net of refunds, were as follows (in thousands):
Year Ended December 31,
20252024
U.S. Federal$2,428 $2,380 
U.S. State - California30 77 
Total Taxes Paid, Net of Refunds$2,458 $2,457 
Schedule of Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows (in thousands):
As of December 31,
20252024
Deferred Tax Assets:
Allowance for Doubtful Accounts$1,162 $820 
Inventory Reserve249 309 
Accrued Expenses456 759 
Interest Expense2,534 — 
Other1,183 775 
Operating Lease Liabilities1,189 2,514 
Stock-based Compensation1,217 1,806 
Operating Losses34,673 36,985 
Property and Equipment and Depreciation5,419 5,108 
Total Deferred Tax Assets48,082 49,076 
Valuation Allowance(40,995)(39,890)
Net Deferred Tax Assets7,087 9,186 
Deferred Tax Liabilities:
Property, Plant and Equipment(3,455)(4,238)
Right-of-Use Assets(1,156)(2,437)
State Taxes(2,476)(2,511)
Total Deferred Tax Liabilities(7,087)(9,186)
Net Deferred Tax Assets$— $— 
Schedule of Reconciliation Between Effective Tax Rate on Income and Statutory Tax Rate
The reconciliation of income taxes computed at the U.S. federal statutory rate to the Company’s effective income tax rate is as follows (dollars in thousands):
Year Ended December 31,
20252024
AmountPercentAmountPercent
U.S. Federal Statutory Income Tax$(3,574)21.0 %$2,356 21.0 %
State and Local Income Tax, Net of Federal Income Tax Effect(1,293)7.6 %1,083 9.7 %
Effect of Changes in Tax Laws or Rates Enacted in the Current Period
Over Accrual of Prior Year Taxes— — %(7,454)(66.4)%
Return to Provision129 (0.8)%(646)(5.8)%
Changes in Valuation Allowances
Change in Valuation Allowance - Federal(62)0.4 %(3,489)(31.1)%
Change in Valuation Allowance - California(262)1.5 %(3,631)(32.4)%
Nontaxable or Nondeductible Items
Employee Retention Tax Credits(1,305)7.7 %(103)(0.9)%
Non-deductible executive compensation (Section 162(m))891 (5.2)%3,500 31.2 %
Change in Fair Value of Contingent Consideration— — %(2,882)(25.7)%
Other Permanent Differences534 (3.1)%131 1.2 %
Changes in Unrecognized Tax Benefits10,870 (63.9)%15,424 137.5 %
Other6,006 (35.3)%6,209 55.3 %
Effective Income Tax Rate$11,934 (70.1)%$10,498 93.6 %
Schedule of Reconciliation of Beginning and Ending Amount of Total Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of total unrecognized tax benefits were as follows (in thousands):
As of December 31,
20252024
Balance at Beginning of Year$20,868 $5,444 
IRS Section 280E Positions10,870 15,424 
Balance at End of Year$31,738 $20,868