INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Schedule of provision for income taxes based on income before income taxes

The provision for income taxes is based on income before income taxes as follows (in thousands):

	For the year ended
	December 31,		December 31,		December 31,
	2024		2023		2022
Domestic	$	3,951	$	18,630	$	7,707
Foreign		12,907		11,070		15,974
Income before income taxes	$	16,858	$	29,700	$	23,681

Schedule of components of the total income tax provision

Components of the total income tax provision are as follows (in thousands):

	For the year ended
	December 31,		December 31,		December 31,
	2024		2023		2022
Current provision
Domestic	$	2,523	$	7,805	$	5,903
Foreign		3,522		2,834		4,111
Total current provision		6,045		10,639		10,014
Deferred benefit
Domestic		(1,453)		(4,087)		(3,915)
Foreign		(900)		(949)		193
Total deferred benefit		(2,353)		(5,036)		(3,722)
Income tax provision	$	3,692	$	5,603	$	6,292

Schedule of provision for income taxes differs from the amount determined by applying the federal statutory rate

	For the year ended
	December 31,		December 31,		December 31,
	2024		2023		2022
Tax provision, computed at statutory rate	21.0	%	21.0	%	21.0	%
State tax, net of federal impact	1.0	%	1.7	%	1.3	%
Change in valuation allowance	(2.9)	%	(1.5)	%	(0.1)	%
Effect of foreign tax rate differences	2.4	%	1.9	%	3.9	%
Section 162(m) compensation	4.8	%	2.4	%	3.1	%
R&D Credit and incentives	(7.9)	%	(6.1)	%	(3.9)	%
Effect of Tax Cuts and Jobs Act	1.6	%	0.3	%	0.1	%
Subpart F income	0.0	%	0.0	%	(0.1)	%
Unrecognized tax benefits	(1.1)	%	(0.7)	%	0.0	%
Other	0.9	%	(0.1)	%	1.3	%
Withholding tax on foreign distributions	2.1	%	0.0	%	0.0	%
Provision for income taxes	21.9	%	18.9	%	26.6	%

Schedule of tax effects of significant temporary differences and credit and operating loss carryforwards that give rise to the net deferred tax assets and tax liabilities

The tax effects of significant temporary differences and credit and operating loss carryforwards that give rise to the net deferred tax assets and tax liabilities are as follows (in thousands):

	December 31,		December 31,
	2024		2023
Noncurrent deferred tax assets:
Employee benefit plans	$	1,735	$	2,241
Net operating loss and tax credit carryforwards		6,711		7,277
Accrued expenses and reserves		2,997		2,494
Research and development costs		11,069		8,363
Other		439		502
Total noncurrent deferred tax assets		22,951		20,877
Valuation allowance		(2,262)		(2,648)
Net noncurrent deferred tax assets:	$	20,689	$	18,229
Net noncurrent deferred tax liabilities:
Property and equipment	$	2,812	$	2,949
Goodwill and intangibles		11,762		10,754
Interest rate swap derivatives		570		1,019
Other		71		84
Total noncurrent deferred tax liabilities	$	15,215	$	14,806
Net deferred tax asset	$	5,474	$	3,423
Presented as follows:
Noncurrent deferred income tax assets	$	9,116	$	7,760
Noncurrent deferred income tax liabilities		(3,642)		(4,337)
Net deferred tax asset	$	5,474	$	3,423

Schedule of operating loss and tax credit gross carryforwards

As of December 31, 2024, the Company has the following gross carryforwards available (in thousands):

			Amount
Jurisdiction	Tax Attribute		(in thousands)	Begin to expire
U.S. State	Net Operating Losses (1)	$	10,265	2024
International	Net Operating Losses - Unlimited Carryforward (1)	$	16,730	No expiration
U.S. Federal	Foreign Tax Credits	$	1,002	2028
International	Investment Tax Credits	$	449	2030
U.S. Federal	R&D Tax Credits	$	9	2036
U.S. State	R&D and Manufacturing Credits	$	507	2031

(1) Net operating losses (NOL’s) are presented as pre-tax amounts.

Schedule of changes to the unrecognized tax benefit

The summary of changes to the unrecognized tax benefit for the year ended December 31, 2023 is as follows (in thousands):

	December 31,		December 31,		December 31,
	2024		2023		2022
Beginning balance	$	586	$	786	$	1,057
Additions from tax legislation changes for net operating loss carryforwards		—		—		—
Reductions related to the lapse of the statute of limitations		(193)		(207)		(192)
Effect of foreign currency translation		(43)		7		(79)
Ending balance	$	350	$	586	$	786