INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense of the Company consisted of the following:


	For the years ended December 31,
	2025		2024
Current income tax expense (benefit):
Federal	$	(1,129)	$	10,266
State	778		1,028
Foreign	644		1,832
Total current income tax expense	293		13,126
Deferred income tax expense (benefit):
Federal	8,199		(14,579)
State	966		(1,572)
Foreign	—		—
Total deferred income tax expense (benefit)	9,165		(16,151)
Total income tax expense (benefit)	$	9,458	$	(3,025)

Schedule of Income Before Income Tax, Domestic and Foreign Jurisdictions

The Company’s income before income taxes was subject to taxes in the following jurisdictions:


	For the years ended December 31,
	2025		2024
United States	$	23,486	$	(33,234)
Foreign	5,147		6,974
Income (loss) before income taxes	$	28,633	$	(26,260)

Schedule of Provision and Effective Tax Rates

The following is a reconciliation between the U.S. statutory federal income tax rate and the effective tax rate:

Reported income tax expense for the years ended December 31, 2025 and 2024 differs from the “expected” tax expense (benefit), computed by applying the U.S. Federal statutory income tax rate of 21% to income before income taxes as follows:


	For the years ended December 31,
	2025				2024
	Amount		Percentage		Amount		Percentage
U.S. Federal Statutory Tax Rate	$	6,013	21.00	%	$	(5,515)	21.00	%
State and Local Income Taxes, Net of Federal Income Tax Effect*	1,378		4.81	%	(430)		1.64	%
Effect of changes in tax laws or rates enacted in the current period	—		—	%	—		—	%
Foreign Tax Effects
Canada
Withholding Tax	66		0.23	%	456		(1.74)	%
Other	(100)		(0.35)	%	65		(0.25)	%
Italy
Effect of Rates Different than Statutory	307		1.07	%	272		(1.04)	%
Other	(16)		(0.06)	%	(118)		0.45	%
Other Foreign Jurisdictions	135		0.47	%	149		(0.57)	%
Effect of cross-border tax laws
Foreign-derived intangible income (FDII)	193		0.67	%	(2,034)		7.75	%
Tax credits
Research and development tax credits	(357)		(1.25)	%	121		(0.46)	%
Other Tax Credits	—		—	%	—		—	%
Changes in valuation allowances	—		—	%	—		—	%
Nontaxable or nondeductible items
Goodwill Impairment	—		—	%	5,964		(22.71)	%
Earn-outs	188		0.66	%	(490)		1.87	%
Change in fair value of Warrants	254		0.89	%	(1,590)		6.05	%
Section 162(m) limitation	611		2.13	%	345		(1.31)	%
Share-based payment awards	87		0.30	%	(569)		2.17	%
Other	71		0.25	%	(51)		0.19	%
Changes in unrecognized tax benefits	181		0.63	%	486		(1.85)	%
Other Adjustments	447		1.56	%	(86)		0.33	%
Total income tax expense	$	9,458	33.01	%	$	(3,025)	11.52	%

Schedule of Components of Income Tax Paid

The components of income tax paid are as follows:


	For the years ended December 31,
	2025		2024
Federal	$	7,700	$	10,350
State	848		277
Foreign
Italy	1,781		191
Canada	96		324
Total	$	10,425	$	11,142

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities consisted of the following:


	December 31,
	2025		2024
Deferred tax assets:
Reserves on assets	$	10,436	$	9,958
Liabilities not yet deductible	3,484		4,563
Interest expense limitation	17,570		22,250
Right-of-use liability	7,928		8,498
Section 174 expenses	8,463		13,017
Capitalized interest	3,202		—
Net operating losses	1,986		1,609
Other	1,553		840
Total gross deferred tax assets	54,622		60,735
Valuation allowance	(1,969)		(1,134)
Total gross deferred tax assets, net of valuation allowance	52,653		59,601
Deferred tax liabilities:
Tradename	33,849		32,630
Intangible assets	38,401		39,867
Goodwill	14,201		11,099
Property, plant and equipment	5,068		5,167
Right-of-use asset	7,674		8,229
Total gross deferred tax liabilities	99,193		96,992
Net deferred tax liabilities	$	46,540	$	37,391

Change in the Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets were as follows:


	December 31,
	2025		2024
Valuation allowance, January 1	$	1,134	$	5
Additions charged to expense accounts	835		1,129
Valuation allowance, December 31	$	1,969	$	1,134

Changes in Unrecognized Tax Benefits

Changes in unrecognized tax benefits were as follows:


	December 31
	2025		2024
Gross unrecognized tax benefits, January 1	$	384	$	329
Changes in balance related to tax position taken during prior periods	—		279
Changes in balances related to tax position taken during current period	120		105
Settlements	—		(329)
Gross unrecognized tax benefits, December 31	$	504	$	384