INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of income from continuing operations before provision for income taxes

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


Year Ended December 31,	2025		2024
Domestic	$	(32,345)	$	(29,434)
Foreign	62,157		47,860
Total	$	29,812	$	18,426

Schedule of components of the provision for income taxes

Components of the provision for income taxes are as follows (dollar amounts in thousands):


Year Ended December 31,	2025		2024
Current:
Federal	$	953	$	1,061
State	101		824
Foreign	10,580		10,311
Subtotal	11,634		12,196
Deferred:
Federal	(2,455)		(1,705)
State	341		(1,109)
Foreign	(159)		1,152
Subtotal	(2,273)		(1,662)
Total provision for income taxes	$	9,361	$	10,534

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

The provision for income taxes, presented as dollar amounts in thousands and as a percentage of income from continuing operations before provision for income taxes, differs from the statutory U.S. federal income tax rate due to the following:


Year Ended December 31,	2025				2024
Statutory U.S. federal income tax rate	$	6,261	21.0	%	$	3,869	21.0	%
State income taxes, net of U.S. federal income tax*	349		1.2		(213)		(1.2)
Foreign tax effects
Canada	191		0.6		218		1.2
China
Withholding tax on royalties	340		1.1		413		2.2
Disallowance of prior years expenses	—		—		240		1.3
Other	592		2.0		249		1.4
Ecuador
Changes in valuation allowance	(49)		(0.2)		238		1.3
Other	53		0.2		(22)		(0.1)
Hong Kong	(221)		(0.7)		297		1.6
Indonesia
Loss adjustment	83		0.3		260		1.4
Other	120		0.4		(115)		(0.6)
Japan
Non-deductible entertainment	104		0.3		310		1.7


Other	(24)		(0.1)		(121)		(0.7)
Korea
Withholding tax on royalties	1,200		4.0		1,213		6.6
Withholding tax on unremitted earnings	479		1.6		583		3.2
Other	(22)		(0.1)		20		0.1
Mexico
Changes in valuation allowance	(275)		(0.9)		429		2.3
Other	134		0.4		(112)		(0.6)
Netherlands
Loss adjustment	368		1.2		(191)		(1.0)
Changes in valuation allowance	(429)		(1.4)		637		3.5
Other	17		0.1		(75)		(0.4)
Poland
Withholding tax on royalties	581		2.0		416		2.3
Other	(34)		(0.1)		(9)		—
Taiwan
Withholding tax on royalties	—		—		3,200		17.4
Non-deductible commissions	276		0.9		485		2.6
Other	(30)		(0.1)		(25)		(0.1)
Thailand
Changes in valuation allowance	19		0.1		240		1.3
Other	47		0.2		(13)		(0.1)
Other foreign jurisdictions	188		0.6		439		2.4
Effect of cross-border tax laws
Foreign derived income deduction	300		1.0		(2,874)		(15.6)
Global intangible low-taxed income, net of credits	154		0.5		(350)		(1.9)
Foreign flow-through income	4,028		13.5		346		1.9
Transfer pricing adjustments	207		0.7		621		3.3
Other	39		0.1		(130)		(0.7)
Tax credits
Foreign tax credits	(8,182)		(27.4)		170		0.9
Other	(146)		(0.5)		(99)		(0.6)
Changes in valuation allowance	2,669		9.0		(975)		(5.3)
Non-taxable or non-deductible items
Executive compensation	442		1.5		616		3.3
Other	(279)		(1.0)		18		0.1
Changes in unrecognized benefits	(189)		(0.6)		331		1.8

Effective income tax rate	$	9,361	31.4	%	$	10,534	57.2	%

*State taxes in California, Texas, and Georgia made up the majority (greater than 50 percent ) of the tax effect in this category each year.

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,	2025		2024
Inventory	$	2,584	$	2,159
Accrued liabilities	2,674		2,256
Operating lease liabilities	3,183		2,136
Share-based compensation	1,254		1,260
Net operating losses	5,094		5,407
Foreign tax and withholding credits	14,822		12,393
Accrued compensation	2,194		1,096
Fixed assets	10,481		8,824
Other deferred tax assets	2,466		3,109
Valuation allowance	(20,878)		(18,864)
Total deferred tax assets	23,874		19,776


Right of use assets	(2,959)		(1,867)
Tax on unremitted earnings	(1,731)		(1,233)
Other deferred tax liabilities	(70)		(39)
Total deferred tax liabilities	(4,760)		(3,139)
Total deferred taxes, net	$	19,114	$	16,637

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,	2025		2024
Net deferred tax assets	$	20,068	$	17,644
Net deferred tax liabilities	(954)		(1,007)
Total deferred taxes, net	$	19,114	$	16,637

Schedule of cash paid for taxes net of refunds

Cash paid for taxes, net of refunds, was as follows (dollar amounts in thousands):


Year Ended December 31,	2025		2024
Federal	$	1,053	$	2,598
State	488		401
Foreign
Taiwan	4,993		5,199
Korea	3,571		3,586
China	996		1,346
Other foreign jurisdictions	1,446		1,658
Total	$	12,547	$	14,788

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,	2025		2024
Unrecognized tax benefits, opening balance	$	779	$	471


Tax positions taken in a prior period
Gross increases	—		318
Gross decreases	(89)		—



Lapse of applicable statute of limitations	(67)		—
Currency translation adjustments	11		(10)
Unrecognized tax benefits, ending balance	$	634	$	779