INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Income Before Tax for Operations

The domestic and foreign components of income (loss) before taxes for our operations consist of the following for the years ended December 31:

	2022		2021		2020
Domestic	$	(302)	$	(9,970)	$	(7,103)
Foreign	23,511		7,416		5,143
Total income (loss) before income taxes	$	23,209	$	(2,554)	$	(1,960)

Schedule of Components of the Provision for Income Taxes

The components of the provision (benefit) for income taxes consist of the following for the years ended December 31: 

	2022		2021		2020
Current – Federal	$	2,288	$	(707)	$	162
Current – State	927		209		196
Current – Foreign	6,760		800		1,407
Current income tax expense	9,975		302		1,765
Deferred – Federal	(1,024)		(1,386)		(1,997)
Deferred – State	(175)		(996)		156
Deferred -– Foreign	600		536		(472)
Deferred income tax benefit	(599)		(1,846)		(2,313)
Income tax provision (benefit)	$	9,376	$	(1,544)	$	(548)

Schedule of Deferred Tax Assets and Liabilities

Our deferred tax assets and liabilities consist of the following at December 31:

 

	2022		2021
Deferred tax assets:
Net operating loss carryforward	$	6,565	$	7,388
Inventory differences	965		805
Equity compensation	1,850		1,661
Investment in joint venture	1,658		187
Restructuring	201		196
Purchased intangible assets and goodwill	527		759
Accrued employee compensation and benefits	4,144		4,113
Lease liabilities	2,880		2,795
Other, net	786		826
Gross deferred tax assets	19,576		18,730
Less valuation allowances	(6,277)		(6,640)
Total deferred tax assets	13,299		12,090
Deferred tax liabilities:
Depreciation and amortization	(4,736)		(4,466)
Right-of-use assets	(2,633)		(2,551)
Other, net	(205)		(345)
Total deferred tax liabilities	(7,574)		(7,362)
Net deferred tax assets	$	5,725	$	4,728

Schedule of Reconciliation of Income Tax Provision

A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 21% to income before taxes is as follows for the years ended December 31:

	2022		2021		2020
Statutory U.S. federal income tax	$	4,874	$	(536)	$	(412)
Foreign rate differential	2,868		1,690		1,223
Permanent items	980		683		210
U.S. state income tax, net of federal benefit	569		(338)		(24)
(Income) loss attributable to noncontrolling interest	(333)		170		—
Equity compensation	202		(1,476)		(715)
Return to provision adjustments	134		(345)		(565)
Deemed repatriation of foreign earnings	64		—		—
German legal entity structuring	—		—		1,161
DynaEnergetics Siberia shut down	—		—		324
Research credits	—		—		(115)
Other	(14)		11		10
Change in valuation allowances	32		(1,403)		(1,645)
Income tax provision (benefit)	$	9,376	$	(1,544)	$	(548)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2022
Unrecognized tax benefits, December 31, 2021	$	—
Additions based on tax positions related to the current year	2,106
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	—
Settlements	—
Unrecognized tax benefits, December 31, 2022	$	2,106