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Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the Company’s U.S. and foreign components of consolidated income before income taxes and the provision for income taxes.
| Years Ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Income before income taxes: |  |  |  |  |
U.S. | $27,423 |  | $25,608 |  | $22,592
Foreign | 172 |  | 127 |  | 113
Total income before income taxes | $27,595 |  | $25,735 |  | $22,705
Current tax provision: |  |  |  |  |
Federal | $2,692 |  | $1,266 |  | $1,268
State | 17 |  | 24 |  | 13
Foreign | 156 |  | 106 |  | 51
Current tax provision | 2,865 |  | 1,396 |  | 1,332
Deferred tax provision (benefit): |  |  |  |  |
Federal | 1,547 |  | 1,619 |  | (262)
State | 221 |  | (330) |  | 131
Total deferred tax provision (benefit) | 1,768 |  | 1,289 |  | (131)
Total provision for income taxes | $4,633 |  | $2,685 |  | $1,201
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of income taxes computed at the statutory federal income tax rate to the effective tax rate implied by the accompanying Consolidated Statements of Operations for the year ended December 31, 2025 in accordance with ASU 2023-09.
| Amount |  | Percent
U.S. federal taxes at statutory rate | $5,795 |  | 21%
State and local income tax, net of federal benefit 1 | 243 |  | 1
Foreign rate differential | 57 |  | —
Effect of cross-border tax laws |  |  |
Foreign derived intangible income | (1,853) |  | (7)
Tax credits |  |  |
Research & development tax credits | (331) |  | (1)
Changes in Valuation Allowances |  |  |
Nontaxable or Nondeductible Items |  |  |
Stock-based compensation shortfalls | 275 |  | 1
Non-deductible compensation | 334 |  | 1
Other | 114 |  | 1
Changes in unrecognized tax benefits | (4) |  | —
Other | 3 |  | —
Provision for income taxes and effective tax rate | $4,633 |  | 17%
1 California makes up the majority of state tax expense in this category. The following table presents a reconciliation of income taxes computed at the statutory federal income tax rate to the effective tax rate implied by the accompanying Consolidated Statements of Operations for the years ended December 31, 2024 and December 31, 2023 in accordance with the guidance before the adoption of ASU 2023-09.
| Years Ended December 31,
| 2024 |  | 2023
U.S. federal taxes at statutory rate | 21% |  | 21%
Stock-based compensation | 2 |  | (1)
Non-deductible expenses | 1 |  | 1
Research and Development Tax Credits | (4) |  | (6)
Valuation allowance | (2) |  | —
Foreign derived intangible income | (8) |  | (10)
Effective tax rate | 10% |  | 5%
Schedule of Deferred Tax Assets and Liabilities | The following table presents the components of the Company’s net deferred tax asset, which is presented in other assets, non-current on the Consolidated Balance Sheets.
| December 31,
| 2025 |  | 2024
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss carry forwards | $496 |  | $496
Amortization of research and experimental expenditures | 8,065 |  | 7,649
Accruals and reserves | 3,314 |  | 4,549
Operating lease liabilities | 2,067 |  | 2,474
Research and development, and foreign tax credit carry forwards | 4,954 |  | 4,908
Total deferred tax assets | 18,896 |  | 20,076
Valuation allowance | (4,740) |  | (4,425)
Total deferred tax assets, net of valuation allowance | 14,156 |  | 15,651
Deferred tax liabilities: |  |  |
Depreciation on property and equipment | (1,652) |  | (2,116)
Right of use asset | (1,679) |  | (2,110)
Other | (62) |  | (25)
Goodwill | (2,496) |  | (2,396)
Total deferred tax liabilities | (5,889) |  | (6,647)
Net deferred tax asset | $8,267 |  | $9,004
Schedule of Valuation Allowance | The following table presents the valuation allowance activities.
|  | Years Ended December 31,
|  | 2025 |  | 2024 |  | 2023
(In thousands) |
Balance, beginning of year |  | $4,425 |  | $4,600 |  | $4,185
Changes to valuation allowance |  | 315 |  | (175) |  | 415
Balance, end of year |  | $4,740 |  | $4,425 |  | $4,600
Summary of Operating Loss Carryforwards | The following table presents the Company’s California net operating loss carryforward.
| Earliest Expiration Year |  | December 31,
|  | 2025 |  | 2024
|  |  | (In thousands)
California | 2034 |  | $6,822 |  | $6,822
Summary of Tax Credit Carryforwards | The following table presents the Company’s R&D credit by taxing authority, minimum tax credit and foreign tax credit carryforwards.
| Earliest Expiration Year |  | December 31,
|  | 2025 |  | 2024
|  |  | (In thousands)
California | No Expiration Date |  | 6,271 |  | 6,098
Schedule of Cash Paid for Income Taxes | The following table presents the net cash paid by the Company for income taxes during the year ended December 31, 2025.
|  | December 31,
|  | 2025
|  | (In thousands)
Domestic |  |
Federal |  | $1,250
States |  | 8
Foreign |  |
Spain |  | 79
China |  | 51
Other |  | 10
Total cash paid for taxes, net of refunds |  | $1,398
Schedule of Unrecognized Tax Benefits Roll Forward | The following table presents the aggregate changes in the balance of the gross unrecognized tax benefits.
| Years Ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Gross unrecognized tax benefits, beginning of year | $1,862 |  | $1,705 |  | $1,505
Additions: |  |  |  |  |
Current year tax position | 87 |  | 170 |  | 184
Prior year tax position | 6 |  | — |  | 16
Reductions: |  |  |  |  |
Settlement | (136) |  | — |  | —
Prior year tax position | (9) |  | (13) |  | —
Gross unrecognized tax benefits, end of year | $1,810 |  | $1,862 |  | $1,705

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