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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities    
Net income $ 33,180 $ 25,837
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization (including $1,214 associated with variable interest entity for both the year ended December 31, 2023 and 2022) 10,783 10,405
Adjustments to allowance for bad debt (711) 1,010
Adjustments to inventory reserve (399) 6
Write-off of inventory 3,897 3,470
Impairment of deposits 549 465
Write-off of vendor prepayment 1,124 0
Loss (gain), net, on disposal of machinery and equipment 2,002 (32)
Change in fair value of interest rate swap (including $0 and $2,159 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 0 (2,159)
Amortization of loan fees (including $57 and $40 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 81 40
Accrued interest on certificates of deposit (155) 0
Stock-based compensation 770 2,047
Amortization of operating right-of-use assets 4,969 3,822
Deferred income taxes (959) (478)
(Increase) decrease in operating assets    
Accounts receivable (including $6 and $18 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 2,860 1,854
Inventories (3,820) (16,210)
Prepaid expenses and other current assets (including $109 and $75 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) (466) (1,514)
Other assets (including $14 and $27 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 1,439 (36)
Increase (decrease) in operating liabilities    
Accounts payable (including $60 and $495 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 696 89
Accrued expenses (including $34 and $402 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 1,571 1,571
Related party payable 366 2,937
Income taxes payable 0 (85)
Customer deposits (including $49 and $77 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) (330) 66
Operating lease liability (4,642) (3,780)
Other liabilities (including $0 and $1 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 574 149
Net cash provided by operating activities 53,379 29,474
Cash flows from investing activities    
Purchases of property and equipment (2,835) (2,657)
Proceeds on disposal of property and equipment 841 77
Payments for costs incurred from sale of machinery and equipment (186) 0
Deposits paid for joint venture investment (2,900) (5,876)
Deposits refunded from joint venture investment 6,900 1,876
Deposits refunded from cancelled machinery orders 503 0
Deposits paid for property and equipment (6,309) (12,090)
Proceeds from settlement of interest rate swap (including $0 and $825 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 0 825
Purchase of short-term investments (including $8,000 and $0 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) (49,188) 0
Redemption of short-term investments (including $8,000 and $0 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 23,000 0
Net cash used in investing activities (30,174) (17,845)
Cash flows from financing activities    
Proceeds from line of credit 0 21,100
Payments on line of credit 0 (21,100)
Proceeds from long-term debt (including $8,000 and $27,477 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 8,000 27,477
Payments for lender fees (61) 0
Payments on long-term debt (including $1,010 and $21,572 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) (1,010) (21,572)
Tax withholding on vesting of restricted stock units (18) 0
Proceeds from exercise of common stock options 123 51
Dividends paid to shareholders (20,909) (6,964)
Distributions to shareholders, net of tax withholding (2,295) 0
Payments of noncontrolling interest tax withholding (including $0 and $1,063 associated with variable interest entity for the year ended December 31, 2023 and 2022, respectively) 0 (1,063)
Net cash used in financing activities (16,170) (2,071)
Net increase in cash and cash equivalents 7,035 9,558
Cash and cash equivalents    
Beginning of year 16,041 6,483
End of year 23,076 16,041
Supplemental disclosures of non-cash investing and financing activities:    
Transfers from deposit to property and equipment 10,463 9,859
Non-cash purchases of property and equipment 148 196
Supplemental disclosures of cash flow information:    
Cash paid for income tax 11,765 8,303
Cash paid for interest $ 1,996 $ 1,978