INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of income from continuing operations before provision (benefit) for income taxes

Income from continuing operations before provision (benefit) for income taxes are taxed under the following jurisdictions (dollar amounts in thousands):

Year Ended December 31,	2023		2022
Domestic	$	(15,962)	$	(7,505)
Foreign	36,164		22,720
Total	$	20,202	$	15,215

Schedule of components of the provision (benefit) for income taxes

Components of the provision (benefit) for income taxes for each of the two years in the period ended December 31, 2023 are as follows (dollar amounts in thousands):

Year Ended December 31,	2023		2022
Current:
Federal	$	1,875	$	2
State	361		(48)
Foreign	9,605		6,725
Subtotal	11,841		6,679
Deferred:
Federal	(8,277)		5,792
State	(490)		(13)
Foreign	712		2,207
Subtotal	(8,055)		7,986
Total provision (benefit) for income taxes	$	3,786	$	14,665

Schedule of differences between the statutory U.S. federal income tax rate and the provision (benefit) for income taxes, as a percentage of income before provision for income taxes

The provision (benefit) for income taxes, as a percentage of income from continuing operations before provision (benefit) for income taxes, differs from the statutory U.S. federal income tax rate due to the following:

Year Ended December 31,	2023		2022
Statutory U.S. federal income tax rate	21.0	%	21.0	%
State income taxes, net of U.S. federal income tax benefit	(0.4)		(0.5)
U.S. tax impact of foreign operations	(25.3)		(8.6)
Valuation allowance change	5.4		64.3
Unrecognized tax benefits	1.8		1.4
Permanent foreign items	4.8		4.3
Withholding tax on royalties	5.1		4.2
Executive compensation	1.2		2.7
Stock compensation	(0.1)		(2.4)
Tax return to provision differences	(7.9)		(3.4)
Income eliminated in consolidation	13.8		13.1
Other	(0.7)		0.3
Effective income tax rate	18.7	%	96.4	%

Schedule of components of U.S. tax impact of foreign operations

Adjustments relating to the U.S. impact of foreign operations decreased the effective tax rate by 25.3 percentage points and 8.6 percentage points in 2023 and 2022, respectively. The components of this calculation were:

Components of U.S. tax impact of foreign operations	2023		2022
Foreign tax credits	(26.7)	%	(19.4)	%
Foreign tax rate differentials	0.4		1.5
Foreign withholding taxes	4.5		2.6
Transfer pricing adjustment	1.4		1.2
Impact of Subpart F	0.7		1.8
Impact of GILTI	(2.4)		3.7
Impact of FDII	(3.2)		—
Total	(25.3)	%	(8.6)	%

Schedule of significant components of the deferred tax assets (liabilities)

The significant components of the deferred tax assets (liabilities) are as follows (dollar amounts in thousands):

As of December 31,	2023		2022
Inventory	$	1,881	$	1,612
Accrued liabilities	2,263		2,859
Operating lease liabilities	2,363		2,667
Deferred compensation	166		160
Share-based compensation	1,059		797
Intangible assets	101		115
Bad debts	23		9
Net operating losses	4,358		5,060
Foreign tax and withholding credits	16,707		15,392
Accrued compensation	2,178		304
Fixed assets	2,606		—
Other deferred tax assets	2,135		1,960
Valuation allowance	(18,534)		(18,049)
Total deferred tax assets	17,306		12,886
Accelerated depreciation	—		(4,029)
Right of use assets	(2,082)		(2,365)
Tax on unremitted earnings	(1,508)		(1,032)
Other deferred tax liabilities	(53)		(40)
Total deferred tax liabilities	(3,643)		(7,466)
Total deferred taxes, net	$	13,663	$	5,420

Schedule of components of deferred tax assets (liabilities), net

The components of deferred tax assets (liabilities), net are as follows (dollar amounts in thousands):

As of December 31,	2023		2022
Net deferred tax assets	$	15,064	$	6,859
Net deferred tax liabilities	(1,401)		(1,439)
Total deferred taxes, net	$	13,663	$	5,420

Schedule of reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties, is as follows for the years (dollar amounts in thousands):

Year Ended December 31,	2023		2022
Unrecognized tax benefits, opening balance	$	110	$	—
Settlement of liability reclassified as income tax payable	—		—
Payments on liability	—		(5)
Tax positions taken in a prior period
Gross increases	360		120
Gross decreases	—		—
Tax positions taken in the current period
Gross increases	—		—
Gross decreases	—		—
Lapse of applicable statute of limitations	—		—
Currency translation adjustments	1		(5)
Unrecognized tax benefits, ending balance	$	471	$	110