XML 45 R28.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Note 17 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
17. | INCOME TAXES:
The United States and foreign components of Income before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | 40,626 |  |  | $ | 27,814 |  |  | $ | 40,271 |
Foreign |  |  | 1,745 |  |  |  | 1,465 |  |  |  | 1,079 |
Total |  | $ | 42,371 |  |  | $ | 29,279 |  |  | $ | 41,350 |
The components of Income tax expense are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,308 |  |  | $ | 6,817 |  |  | $ | 8,443 |
State |  |  | 2,104 |  |  |  | 1,519 |  |  |  | 1,264 |
Foreign |  |  | 286 |  |  |  | 289 |  |  |  | 198 |
Total current income tax expense |  |  | 10,698 |  |  |  | 8,625 |  |  |  | 9,905 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,127 | ) |  |  | (612 | ) |  |  | (22 | )
State |  |  | (419 | ) |  |  | 195 |  |  |  | 340 |
Foreign |  |  | 13 |  |  |  | (1 | ) |  |  | (22 | )
Total deferred income tax expense (benefit) |  |  | (2,533 | ) |  |  | (418 | ) |  |  | 296 |
Total income tax expense |  | $ | 8,165 |  |  | $ | 8,207 |  |  | $ | 10,201 |
The difference between the Company’s effective income tax rate and the federal statutory income tax rate is explained as follows (dollar amounts in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Income tax expense at federal statutory rate |  | $ | 8,902 |  |  | $ | 6,148 |  |  | $ | 8,683 |
State expense, net of federal income tax effect |  |  | 1,482 |  |  |  | 942 |  |  |  | 1,463 |
Change in valuation allowance |  |  | (48 | ) |  |  | (30 | ) |  |  | (1 | )
Uncertain income tax positions |  |  | (2,277 | ) |  |  | - |  |  |  | - |
Nondeductible expenses |  |  | 54 |  |  |  | 257 |  |  |  | (35 | )
Foreign rate differential |  |  | 157 |  |  |  | 133 |  |  |  | 97 |
Accrued interest on uncertain income tax positions |  |  | 73 |  |  |  | 264 |  |  |  | 106 |
State franchise tax |  |  | 174 |  |  |  | 250 |  |  |  | 110 |
Other |  |  | (352 | ) |  |  | 243 |  |  |  | (222 | )
Income tax expense |  | $ | 8,165 |  |  | $ | 8,207 |  |  | $ | 10,201 |
Effective income tax rate |  |  | 19.3 | % |  |  | 28.0 | % |  |  | 24.7 | %
The income tax effect of temporary differences that give rise to significant portions of deferred income tax assets and liabilities is presented below (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Accrued employee benefits |  | $ | 4,237 |  |  | $ | 3,096 |
Inventories |  |  | 373 |  |  |  | 380 |
Trade receivable, net |  |  | 536 |  |  |  | 532 |
Net operating loss carryforwards |  |  | 2,733 |  |  |  | 3,429 |
Tax credit carryforwards |  |  | 2,628 |  |  |  | 2,777 |
Contract assets, net |  |  | 680 |  |  |  | 934 |
Other |  |  | 2,476 |  |  |  | 1,952 |
|  |  | 13,663 |  |  |  | 13,100 |
Valuation allowance |  |  | (5,709 | ) |  |  | (6,641 | )
|  |  | 7,954 |  |  |  | 6,459 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (12,804 | ) |  |  | (13,850 | )
Intangible assets |  |  | (312 | ) |  |  | (800 | )
Goodwill |  |  | (1,692 | ) |  |  | (1,164 | )
Prepaid expenses |  |  | (1,238 | ) |  |  | (1,217 | )
|  |  | (16,046 | ) |  |  | (17,031 | )
Net deferred income tax liabilities |  | $ | (8,092 | ) |  | $ | (10,572 | )
Amounts are presented in the Consolidated Balance Sheets as follows: |  |  |  |  |  |  |  |
Deferred income tax assets, included in Other assets |  | $ | 205 |  |  | $ | 370 |
Deferred income taxes |  |  | (8,297 | ) |  |  | (10,942 | )
Net deferred income tax liabilities |  | $ | (8,092 | ) |  | $ | (10,572 | )
In assessing the ability to realize deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, taxable income in carryback periods, and tax planning strategies in making this assessment. The Company believes it is more likely than not it will realize the benefits of its deductible differences as of December 31, 2024, net of any valuation allowance. As of December 31, 2024, the Company continues to maintain a valuation allowance on federal tax credits and select state jurisdictions. As of December 31, 2024, the Company had approximately $0.2 million of federal income tax credit carryforwards, which expire on various dates between 2025 and 2026. As of December 31, 2024, the Company also had approximately $15.4 million of state net operating loss carryforwards, which expire on various dates between 2025 and 2036, and state income tax credit carryforwards of $4.3 million, which began to expire in 2024. As of December 31, 2024, the Company also had approximately $7.2 million of foreign net operating loss carryforwards, which expire on various dates between 2025 and 2033. The Company files income tax returns in the United States Federal jurisdiction, in a limited number of foreign jurisdictions, and in many state jurisdictions. With few exceptions, the Company is no longer subject to United States Federal, state, or foreign income tax examinations for years before 2020. A summary of the changes in the unrecognized income tax benefits associated with uncertain income tax positions is presented below (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Unrecognized income tax benefits, beginning of year |  | $ | 4,736 |  |  | $ | 4,472 |  |  | $ | 4,366 |
Decreases for lapse in statute of limitations |  |  | (2,277 | ) |  |  | - |  |  |  | - |
Increases for positions taken in prior years |  |  | 73 |  |  |  | 264 |  |  |  | 106 |
Unrecognized income tax benefits, end of year |  | $ | 2,532 |  |  | $ | 4,736 |  |  | $ | 4,472 |
During the year ended December 31, 2024, the Company recorded a reduction in the uncertain income tax positions due to the lapse of the statute of limitations of $2.3 million. Additional unrecognized tax benefits, including interest, related to uncertain income tax positions may be affected by expiring statutes of limitations within the next twelve months. Effectively all of the unrecognized income tax benefits would affect the Company’s effective income tax rate if recognized at some point in the future. The Company recognizes interest and penalties related to uncertain income tax positions in Income tax expense. As of December 31, 2024 and 2023, the Company had $0.2 million and $0.4 million, respectively, of accrued interest related to uncertain income tax positions. Total interest for uncertain income tax positions did not change materially in 2024, 2023, or 2022.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration