INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

The provision for (benefit from) income taxes at December 31 consists of the following:

The effective tax rates differ from the statutory federal income tax rate as follows:


	2024		2023		2022
Statutory Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
Permanent Items
Stock Compensation Expense	(2.0)	%	(1.4)	%	(2.2)	%
Meals and Entertainment	(1.7)	%	—	%	—	%
Parking Expenses	(1.4)	%	—	%	—	%
Other	(7.4)	%	(1.4)	%	(0.3)	%
Foreign Tax Rate Differential	7.1	%	(0.4)	%	(2.8)	%
State Income Tax, Net of Federal Income Tax Effect	(8.9)	%	(4.6)	%	1.0	%
Research and Development Tax Credits	47.4	%	14.1	%	7.7	%
Change in Valuation Allowance	(172.7)	%	(26.1)	%	(44.6)	%
Net GILTI and FDII Tax Expense (Benefit)	16.4	%	(1.0)	%	1.8	%
Foreign Tax Credit for Dividend Withholding	—	%	—	%	(1.5)	%
Penalties	(3.1)	%	—	%	—	%
Other	(0.8)	%	(0.6)	%	(0.1)	%
Effective Tax Rate	(106.1)	%	(0.4)	%	(20.0)	%

Significant components of the Company’s deferred tax assets and liabilities at December 31, are as follows:


(In thousands)	2024		2023
Deferred Tax Assets:
Asset Reserves	$	22,293	$	19,609
Deferred Compensation	6,096		6,968
Section 163(j) - Interest Expense Limitation	2,982		1,777
State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax	1,093		1,430
Customer Advanced Payments and Deferred Revenue	257		870
Net Operating Loss Carryforwards and Other	10,060		11,178
Goodwill and Intangible Assets	890		1,001
ASC 606 Revenue Recognition	374		92
Research & Development Costs	35,061		25,659
Lease Liabilities	6,059		6,952
Other	6,941		5,308
Total Gross Deferred Tax Assets	92,106		80,844
Valuation Allowance	(78,659)		(65,640)
Deferred Tax Assets	13,447		15,204
Deferred Tax Liabilities:
Depreciation	7,771		8,593
ASC 606 Revenue Recognition - Section 481(a) Adjustment	113		227
Lease Assets	5,695		6,595
Earnout Income Accrual	102		99
Other	1,041		997
Deferred Tax Liabilities	14,722		16,511
Net Deferred Tax Liabilities	$	(1,275)	$	(1,307)

The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:


(In thousands)	2024		2023
Other Assets — Long-term	$	159	$	—

Deferred Tax Liabilities — Long-term	(1,434)		(1,307)

Net Deferred Tax Liabilities	$	(1,275)	$	(1,307)

A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:


(in thousands)	2024		2023		2022
Balance at Beginning of the Year	$	100	$	443	$	1,412
Decreases as a Result of Tax Positions Taken in Prior Years	(100)		(343)		(969)

Balance at End of the Year	$	—	$	100	$	443