Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The components of income tax provision (benefit) are as follows:


	Year Ended December 31,
In thousands	2025		2024
Current
Federal	$	—	$	—
State and local	288		428
Foreign	443		1,214
Total current	$	731	$	1,642

Deferred
Federal	$	(254)	$	(7,729)
State and local	(703)		(1,446)
Foreign	29		(104)
Total deferred	$	(928)	$	(9,279)

Total income tax benefit	$	(197)	$	(7,637)

Components of Income (Loss) Before Income Taxes

The U.S. and foreign components of loss before income taxes were as follows:


	Year Ended December 31,
In thousands	2025		2024
United States	$	(4,629)	$	(43,860)
Foreign	3,621		5,926
Total loss before income taxes	$	(1,008)	$	(37,934)

Differences Between Total Expense (Benefit)

The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company's effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09.


		Year Ended December 31,
In thousands, except percentages		2025
Loss before income taxes		$	(1,008)
Provision for income taxes at U.S. federal statutory rate		(212)		21.0	%
State and local income taxes, net of federal benefit (1)		(481)		47.6	%
Foreign tax effects
Belgium
	Statutory Tax Rate Difference	48		(4.7)	%
	Other	(20)		2.0	%
France
	Statutory Tax Rate Difference	17		(1.7)	%
	Differences with statutory accounting policies	(124)		12.3	%
	Valuation Allowance	41		(4.1)	%
Netherlands
	Statutory Tax Rate Difference	(4)		0.4	%
	Valuation Allowance	22		(2.1)	%
Philippines
	Statutory Tax Rate Difference	(258)		25.5	%
	Other	1		(0.1)	%
Other foreign Jurisdictions		(11)		1.1	%
Effect of cross-border tax laws:
	Global Intangible Low-Taxed Income	569		(56.5)	%
	Section 78 Gross-up	95		(9.4)	%
Tax Credits		(50)		5.0	%
Changes in valuation allowances		14		(1.4)	%
Non-taxable or non-deductible items:
	Equity compensation	132		(13.1)	%
	Meals and Entertainment	15		(1.5)	%
	Work Opportunity Tax Credit	11		(1.1)	%
	Other	3		(0.3)	%
Other Reconciling Items		(5)		0.5	%
Effective income tax rate		$	(197)	19.6	%
	(a) TX made up the majority (greater than 50%) of the tax effect in this category.

The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company's effective rate for the years ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09:


In thousands	Year Ended December 31, 2024
Computed expected income tax benefit	$	(7,966)
Net effect of state income taxes	(1,885)
Foreign subsidiary dividend inclusions	666
Foreign tax rate differential	42
Change in valuation allowance	991
Return to Provision	599
Change in Rate	(125)
Credits	(346)
Adjustments to State Attributes	565
Other Adjustments, net	(178)
Income tax benefit	$	(7,637)

Significant Portions of the Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows:


	December 31,
In thousands	2025		2024
Deferred tax assets

Accrued expenses not deductible until paid	$	58	$	173
Lease liability	5,713		6,201
Investment in foreign subsidiaries, outside basis difference	1,969		1,930
Interest Expense limitations	1,495		1,167
Other, net	1,625		1,979
Foreign net operating loss carryforwards	1,535		1,325
State net operating loss carryforwards	7,845		7,709
Federal net operating loss carryforwards	9,692		9,585
Foreign tax credit carryforwards	3,740		3,726
General Business Credit Carryovers	641		591
Total gross deferred tax assets	$	34,313	$	34,386
Less valuation allowances	(7,757)		(8,082)
Net deferred tax assets	$	26,556	$	26,304


Deferred tax liabilities
Property, plant and equipment	$	(890)	$	(1,143)
Deferred compensation and retirement plan	(3,706)		(3,394)
Right-of-use asset	(5,041)		(5,624)
Other, net	(879)		(966)
Total gross deferred tax liabilities	$	(10,516)	$	(11,127)
Net deferred tax assets	$	16,040	$	15,177

Schedule of Cash Income Taxes Paid

The amount of cash income taxes paid by the Company were as follows:


	Year ended December 31, 2025
In thousands
State and Local
Florida	$	90
Texas	215
Other	150
Foreign
United Kingdom	538
Philippines	412
Romania	82
Belgium	292
Income taxes, net of amounts refunded	$	1,779