XML 33 R22.htm IDEA: XBRL DOCUMENT v3.24.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 15 - Income Taxes

 

The provision for income taxes for the periods indicated includes current and deferred components as follows:

 

 

 

 

Year Ended December 31

 

 

 

 

2023

 

 

 

2022

 

Current Tax Expense/(Benefit)

 

 

 

 

 

 

 

 

Federal

 

$

 

-

 

 

$

 

-

 

Foreign

 

 

 

2,556

 

 

 

 

2,285

 

State

 

 

 

39

 

 

 

 

40

 

 

 

 

2,595

 

 

 

 

2,325

 

Deferred Tax Expense/(Benefit)

 

 

 

 

 

 

 

 

Federal

 

 

 

1

 

 

 

 

1

 

Foreign

 

 

 

(1,095

)

 

 

 

(14

)

 

 

 

(1,094

)

 

 

 

(13

)

Total

 

$

 

1,501

 

 

$

 

2,312

 

 

The (provision) benefit for income taxes for the periods indicated differs from the amounts computed by applying the federal statutory rate as follows:

 

 

 

 

 

 

 

Year Ended December 31

 

 

 

 

 

 

2023

 

 

2022

 

 

Statutory U.S. federal income tax rate

 

 

21.0

 

%

 

 

 

21.0

 

%

State income taxes, net of federal tax benefit

 

 

0.5

 

%

 

 

 

0.4

 

%

Valuation allowance

 

 

(18.5

)

%

 

 

 

(5.8

)

%

Provision to return

 

 

(0.6

)

%

 

 

 

(0.2

)

%

Foreign rate differential

 

 

(2.2

)

%

 

 

 

(1.5

)

%

Foreign tax adjustments

 

 

0.0

 

%

 

 

 

(1.1

)

%

Deferred tax adjustments

 

 

0.6

 

%

 

 

 

(17.9

)

%

Nondeductible expenses and other

 

 

(7.6

)

%

 

 

 

(1.2

)

%

Effective income tax rate

 

 

(6.8

)

%

 

 

 

(6.3

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes result from temporary differences in the financial and tax basis of assets and liabilities.

 

Components of deferred tax assets (liabilities) consisted of the following:

 

 

 

December 31, 2023

 

 

December 31, 2022

 

Description

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Accrued post-retirement and pension benefits

 

$

224

 

 

$

-

 

 

$

360

 

 

$

-

 

Intangible assets

 

 

-

 

 

 

(30

)

 

 

-

 

 

 

(26

)

Accrued expenses

 

 

2,444

 

 

 

-

 

 

 

2,326

 

 

 

-

 

Prepaid expenses

 

 

-

 

 

 

(682

)

 

 

-

 

 

 

(1,155

)

Inventory valuation

 

 

524

 

 

 

-

 

 

 

1,219

 

 

 

-

 

Property, plant and equipment and railcars on operating leases

 

 

-

 

 

 

(598

)

 

 

-

 

 

 

(1,166

)

Net operating loss, tax credit, and interest carryforwards

 

 

69,371

 

 

 

-

 

 

 

65,218

 

 

 

-

 

Stock-based compensation expense

 

 

1,782

 

 

 

-

 

 

 

1,715

 

 

 

-

 

Other

 

 

-

 

 

 

(977

)

 

 

371

 

 

 

(1,448

)

Right of use asset

 

 

-

 

 

 

(12,671

)

 

 

-

 

 

 

(10,902

)

Lease liability

 

 

13,354

 

 

 

-

 

 

 

11,376

 

 

 

-

 

 

 

87,699

 

 

 

(14,958

)

 

 

82,585

 

 

 

(14,697

)

Valuation Allowance

 

 

(71,640

)

 

 

-

 

 

 

(67,881

)

 

 

-

 

Deferred tax assets (liabilities)

 

$

16,059

 

 

$

(14,958

)

 

$

14,704

 

 

$

(14,697

)

Increase in valuation allowance

 

$

3,759

 

 

 

 

 

$

677

 

 

 

 

 

 

A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has concluded that, based on evaluation of the positive and negative evidence, primarily the history of US and China operating losses, we will not more likely than not realize the benefit of the US and China deferred tax assets. The Company has certain pretax state net operating loss carryforwards of $219,007 which will expire between 2023 and 2042, for which a full valuation allowance has been recorded. The Company also has federal net operating loss carryforwards, tax credits, and interest carryforwards of $216,196, $2,016, and $47,335, respectively, which will begin to expire in 2032, for which a full valuation allowance also has been recorded. The Company has Chinese net operating loss carryforwards of $315 which will expire beginning 2028 for which a full valuation allowance also has been recorded.

 

No deferred taxes have been provided on the approximately $435 of undistributed earnings in foreign subsidiaries. These earnings are permanently reinvested and necessary for operations locally in China and Mexico.

 

The Company does not have any unrecognized tax benefit that, if recognized, would affect the Company's effective tax rate as of December 31, 2023 and 2022. The Company's income tax provision included $0 of expenses related to interest and penalties for the years ended December 31, 2023 and 2022. The Company records interest and penalties as a component of income tax expense. However, as there are no unrecognized tax benefits for the year ended 2023 and 2023, the Company has zero penalties or interest accrued at December 31, 2023 and 2022, respectively.

 

The Company and/or its subsidiaries file income tax returns with the U.S. federal government and in various state and foreign jurisdictions. A summary of tax years that remain subject to examination is as follows:

 

Jurisdiction

 

 

 

 

 

Earliest Year

U.S. Federal

 

 

 

 

 

2020

States:

 

 

 

 

 

 

Pennsylvania

 

 

 

 

 

2002

Texas

 

 

 

 

 

2019

Illinois

 

 

 

 

 

2010

Virginia

 

 

 

 

 

2020

Colorado

 

 

 

 

 

2010

Indiana

 

 

 

 

 

2020

Nebraska

 

 

 

 

 

2016

Alabama

 

 

 

 

 

2017

Foreign:

 

 

 

 

 

 

   China

 

 

 

 

 

2020

   Mexico

 

 

 

 

 

2020