Note 14 - Income Taxes

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14.     Income Taxes

The Company’s effective tax rate is approximately 0.3% and 13.8% for the six-month periods ended June 30, 2025 and 2024, respectively. The Company's effective tax rate differs from the statutory federal tax rate of 21% for the six-month periods ended June 30, 2025 and 2024 primarily due to a full valuation allowance recorded on our United States, China and Italy deferred tax assets since we cannot anticipate when or if we will have sufficient taxable income to utilize the deferred tax assets in the future. Further, our effective tax rate differs from the statutory federal tax rate due to state taxes, differences between U.S. and foreign tax rates, foreign losses incurred with no related tax benefit, non-deductible commissions, and non-deductible meals and entertainment expenses for the six-month periods ended June 30, 2025 and 2024.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law. This act includes changes to the U.S. corporate income tax system. The Company is currently evaluating the full effect of the legislation, but does not expect it to have a material impact on our Consolidated Financial Statements.