INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2023

Pretax income (loss) resulting from domestic and foreign operations is as follows (in thousands):


	2023		2022
United States	$	(30,393)	$	(2,569)
Foreign	(11,779)		(2,707)
Other Foreign Jurisdictions	4,882		1,582
Total pretax book loss	$	(37,290)	$	(3,694)

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE

The components of income tax expense at December 31, 2023 and December 31, 2022, are as follows (in thousands):


	2023		2022
Current:
Federal	$	855	$	1,491
State	93		138
Foreign	1,589		1,399
Total Current	$	2,537	$	3,028

Deferred:
Federal	$	81	$	(85)
State	—		—
Foreign	(752)		(2,894)
Total Deferred	$	(671)	$	(2,979)

Total	$	1,866	$	49

SCHEDULE OF RECONCILIATION FOR PROVISION FOR INCOME TAXES

The reconciliation of the provision for income taxes at the United States Federal statutory rate compared to the Company’s income tax expense (benefit) as reported is as follows (in thousands):


	2023		2022
Loss before income taxes	$	(37,290)	$	(3,694)

Income tax benefit computed at the statutory rate	(7,831)		(776)
State income taxes-net of federal tax benefit	74		73
Foreign tax rate differential	(273)		(19)

Section 162(m) compensation	61		61
Foreign currency adjustment	(90)		—
GILTI inclusion	693		160
Meals	75		39
Stock compensation	141		83
Amortization	4,845		11
Tax credits and government assistance	(623)		(179)
Non-deductible expenses	28		186
Other permanent differences	(270)		—
Adjustments to prior periods – temporary differences	1,000		197
Rate changes and differentials	(53)		(651)
Change in valuation allowance	4,089		864

Income tax expense	$	1,866	$	49

SCHEDULE OF TAX EFFECTS OF TEMPORARY DIFFERENCES

Tax effects of temporary differences at December 31, 2023 and December 31, 2022 are as follows (in thousands):


Deferred tax assets:	2023		2022
Fixed assets	$	15	$	—
Allowance for bad debts	926		507
Inventory	432		294
R&D amortization	1,172		413

Deferred revenue	6,143		5,600
Stock compensation	291		1,209
Right of use liability	501		1
Other	—		203
Interest expense limitation	6,051		3,751
Net operating loss carry-forwards	6,635		7,282

Deferred tax assets	$	22,166	$	19,260
Valuation allowance	(18,173)		(14,084)
Deferred tax assets, net	$	3,993	$	5,176

Deferred tax liabilities:	2023		2022
Fixed assets	$	—	$	(24)
Intangible assets	(6,671)		(8,603)
Accrued expenses	(982)		(752)
Prepaid expenses	(48)		(169)
Right of use asset	(492)		—
Other	(116)		(308)
Deferred tax liabilities	$	(8,309)	$	(9,856)

Deferred tax liabilities, net	$	(4,316)	$	(4,680)