INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following:

(in thousands)	Year Ended December 31,
Income Tax Provision (Benefits)	2024			2023
Current provision (benefit):
Federal	$	261		$	892
State		71			181
Foreign		(68	)		102
Related to UTP		(31	)		(34	)
		233			1,141
Deferred provision (benefit):
Federal		32			(266	)
State		8			(103	)
Foreign		(9	)		5
		31			(364	)
Total tax provision	$	264		$	777

Income Before Income Taxes

Income before income taxes was earned in the following tax jurisdictions:

(in thousands)	Year Ended December 31,
Income Before Income Taxes	2024			2023
United States	$	1,382		$	3,765
Spain		(259	)		25
Canada		(32	)		755
TOTAL	$	1,091		$	4,545

Income Tax Effects of Temporary Differences Impacting Deferred Income Tax Assets and Liabilities

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:

Deferred income tax assets:	2024			2023
(in thousands)
Inventory	$	391		$	412
Stock-based compensation		39			55
Accounts receivable		12			8
Sales returns		78			49
Foreign currency translation gain in OCI		726			512
Goodwill and other intangible assets amortization		1			-
Net operating losses		184			182
Accrued expenses		41			170
Leases		111			108
Total deferred income tax assets		1,583			1,496
Less:  valuation allowance		(156	)		(154	)
Total deferred income tax assets, net of valuation allowance	$	1,427		$	1,342
Property and equipment depreciation	$	(214	)	$	(471	)
Total deferred income tax liabilities		(214	)		(471	)
Net deferred tax asset (liability)	$	1,213		$	871

Reconciliation of Effective Tax Rate from Statutory Rate

Below is a reconciliation of our effective tax rate from the statutory rate:

	Year Ended December 31,
	2024			2023
Statutory rate – Federal U.S. income tax		21.0	%		21.0	%
State and local taxes		5.3	%		5.3	%
Permanent book/tax differences		2.3	%		2.4	%
Difference in tax rates in loss carryback periods		0.0	%		0.0	%
Change in valuation allowance		0.2	%		(6.8	)%
Rate differential on UTP reversals		(2.8	)%		(0.8	)%
Income tax credits		0.0	%		(2.3	)%
Other, net		(1.8	)%		(1.7	)%
Effective rate		24.2	%		17.1	%

Reconciliation of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions (“UTP”) is as follows:

	2024			2023
UTP at beginning of the year	$	388		$	450
Gross increase to tax positions in current period		(109	)		(27	)
Interest expense		(31	)		(35	)
UTP at end of year	$	248		$	388