Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Pre-Tax Income (Loss) by Jurisdiction

In 2025, 2024 and 2023, pre-tax income (loss) was attributed to the following jurisdictions:


	Year Ended December 31,
(In thousands)	2025		2024		2023
Domestic operations	$	(47,871)	$	(53,708)	$	(95,876)
Foreign operations	35,911		35,110		3,622
Total pre-tax income (loss)	$	(11,960)	$	(18,598)	$	(92,254)

Schedule of Provision for Income Taxes

The provision for income taxes charged to operations was as follows:


	Year Ended December 31,
(In thousands)	2025		2024		2023
Current tax expense:
U.S. federal	$	90	$	37	$	23
State and local	35		45		44
Foreign	6,012		5,068		7,193
Total current	6,137		5,150		7,260
Deferred tax (benefit) expense:
U.S. federal	—		269		(813)
State and local	—		—		(126)
Foreign	502		12		(337)
Total deferred	502		281		(1,276)
Total provision for income taxes	$	6,639	$	5,431	$	5,984

Schedule of Reconciliation of Statutory Federal Income Tax Rate

Reconciliation of Statutory Federal Income Tax Rate to the Effective Income Tax Rate

Below is a tabular rate reconciliation for the year ended December 31, 2025:


	Year Ended December 31,
(In thousands)	Amount		Percent
Tax provision at U.S. federal statutory rate	$	(2,512)	21.0	%
State and local income taxes, net of U.S. federal income tax effect *	28		(0.2)	%
Foreign tax effect
Brazil
Statutory tax rate difference between Brazil & the United States	301		(2.5)	%


Preferential income tax rate	(291)	2.4	%
Non-taxable and nondeductible items:
Non-taxable legal settlement income	(126)	1.1	%
Other adjustments	11	(0.1)	%
China
Statutory tax rate difference between China & the United States	230	(1.9)	%
Research and development super deduction	(437)	3.7	%
Changes in unrecognized tax benefits	(152)	1.3	%
Changes in valuation allowance	(2,013)	16.8	%
Effect of cross-border tax laws:
Withholding taxes	312	(2.6)	%
Other adjustments:
DTA write-off from factory shutdown	1,743	(14.6)	%
Miscellaneous other items	(41)	0.3	%
Hong Kong
Statutory tax rate difference between Hong Kong & the United States	(775)	6.5	%
Non-taxable and nondeductible items:
Non-territorial income	(1,812)	15.2	%
Non-taxable foreign exchange gain	(282)	2.4	%
Other adjustments	107	(0.9)	%
Korea
Effect of cross-border tax laws:
Withholding taxes	1,227	(10.3)	%
Other adjustments	21	(0.2)	%
Mexico
Statutory tax rate difference between Mexico & the United States	197	(1.7)	%
Non-taxable and nondeductible items:
Annual inflationary adjustment	(192)	1.6	%
Employee fringe benefits	174	(1.5)	%
Other adjustments:
Fixed asset provision to return adjustment	192	(1.6)	%
Intercompany sale of fixed assets	(229)	1.9	%
Miscellaneous other items	168	(1.4)	%
Netherlands	318	(2.7)	%
Other foreign jurisdictions	323	(2.7)	%
Effect of changes in taw laws or rates enacted in the current period
Effect of cross-border tax laws:
Global intangible low-taxed income	6,459	(54.0)	%
Subpart F income	331	(2.8)	%
Tax credits:	(571)	4.8	%
Changes in valuation allowance:	2,606	(21.8)	%
Non-taxable or nondeductible items:
Stock-based compensation	872	(7.3)	%
Provision to return	412	(3.4)	%
Miscellaneous other items	46	(0.4)	%


Changes in unrecognized tax benefits	1		—	%
Other adjustments	(7)		0.1	%
Total provision for income taxes	$	6,639	(55.5)	%

* The Company is subject to state & local minimum taxes, with Texas, Mississippi, and North Carolina comprising greater than 50%.

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations, for the years ended December 31, 2024 and December 31, 2023, as a result of the following:


	Year Ended December 31,
(In thousands)		2024		Percent		2023		Percent
Tax provision (benefit) at statutory U.S. rate		$	(3,906)	21.0	%	$	(19,373)	21.0	%
Increase (decrease) in tax provision (benefit) resulting from:
Distribution of previously taxed foreign earnings and profits		—		—		(9,450)		10.2
Federal research and development credits		(816)		4.3		(1,043)		1.1
Foreign participation exemption		—		—		(12,571)		13.6
Foreign permanent benefit		(650)		3.5	%	(1,426)		1.6
Foreign tax rate differential		(295)		1.6		21,794		(23.6)
Foreign undistributed earnings, net of credits		6,231		(33.2)		7,198		(7.8)
Goodwill impairment		—		—		5,383		(5.8)
Non-deductible items		635		(3.4)		594		(0.6)
Non-territorial income		(2,088)		11.1		(945)		1.0
Provision to return		(350)		1.9		(19)		—

State and local taxes, net		(992)		5.3		(2,629)		2.9
Stock-based compensation		2,045		(10.9)		980		(1.1)
Tax rate change		(2,286)		12.2		1,648		(1.8)
Valuation allowance		5,943		(31.8)		15,090		(16.4)
Withholding tax		1,521		(8.1)		1,229		(1.3)
Other		439		(2.2)		(476)		0.5
Tax provision		$	5,431	(28.7)	%	$	5,984	(6.5)	%

Schedule of Net Deferred Tax Assets

Net deferred tax assets were comprised of the following:


	December 31,
(In thousands)	2025		2024
Deferred tax assets:
Accounts receivable	$	2,245	$	464
Accrued liabilities	1,850		4,820
Amortization of intangible assets	8,404		9,223
Capitalized inventory costs	3,391		3,553
Capitalized research and development costs	10,744		10,245
Depreciation	3,510		3,797
Income tax credits	21,560		20,375
Inventory reserves	3,143		2,371
Net operating losses	15,296		14,003
Operating lease obligations	1,953		2,865
Stock-based compensation	2,664		2,915

Total deferred tax assets	74,760		74,631
Deferred tax liabilities:


Right-of-use assets	(2,026)		(3,175)
Other	(1,386)		(1,333)
Total deferred tax liabilities	(3,412)		(4,508)
Net deferred tax assets before valuation allowance	71,348		70,123
Less: Valuation allowance	(67,359)		(65,629)
Net deferred tax assets	$	3,989	$	4,494

Schedule of Changes to Gross Unrecognized Tax Benefits

Changes to our gross unrecognized tax benefits were as follows:


	Year Ended December 31,
(In thousands)	2025		2024		2023
Balance at beginning of period	$	3,637	$	3,315	$	3,150
Additions as a result of tax positions taken during the current year	153		322		165



Other	(150)		—		—
Balance at end of period	$	3,640	$	3,637	$	3,315

Schedule of Income Taxes Paid by Jurisdiction

Disclosed below is a summary of income taxes paid by jurisdiction for the year ended December 31, 2025


(In thousands)	Year Ended December 31, 2025
United States - Federal	$	(316)
United States - State and local	(10)
Brazil	466
China	237
Hong Kong	1,223
India	302
Mexico	275
Vietnam	260
Other	187
Total income taxes paid, net	$	2,624