XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Note 7 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 7. INCOME TAXES The components of income before income taxes consist of the following (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Domestic |  | $ | (993 | ) |  | $ | (1,182 | )
Foreign |  |  | 1,613 |  |  |  | 1,927 |
Income before income taxes |  | $ | 620 |  |  | $ | 745 |
The components of the income tax provision consist of the following (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Current taxes: |  |  |  |  |  |  |  |
Federal |  | $ | (24 | ) |  | $ | 73 |
State |  |  | 11 |  |  |  | 13 |
Foreign |  |  | 34 |  |  |  | 269 |
Total current taxes |  |  | 21 |  |  |  | 355 |
Deferred taxes: |  |  |  |  |  |  |  |
Federal |  |  | (83 | ) |  |  | (4 | )
State |  |  | 1 |  |  |  | (5 | )
Foreign |  |  | 109 |  |  |  | (169 | )
Total deferred taxes |  |  | 27 |  |  |  | (178 | )
Income tax provision |  | $ | 48 |  |  | $ | 177 |
A reconciliation of the reported income tax provision to the provision that would result from applying the domestic federal statutory tax rate to pretax income is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Income tax at federal statutory rate |  | $ | 130 |  |  | $ | 156 |
Section 162(m) limitation |  |  | 58 |  |  |  | 94 |
Subpart F inclusion |  |  | 43 |  |  |  | 68 |
Stock-based compensation |  |  | 26 |  |  |  | 30 |
Other permanent differences |  |  | 3 |  |  |  | 3 |
U.S. foreign income inclusions |  |  | (18 | ) |  |  | 90 |
Change in valuation allowance |  |  | 89 |  |  |  | 67 |
Foreign rate differential |  |  | (293 | ) |  |  | (334 | )
Other reconciling items |  |  | 10 |  |  |  | 3 |
Income tax provision |  | $ | 48 |  |  | $ | 177 |
Income before income taxes and the statutory tax rate for each country that materially contributed to the foreign rate differential presented above is as follows (in thousands):
|  |  |  |  |  | Year Ended December 31, |
|  | Statutory Tax Rate |  |  | 2024 |  |  | 2023 |
Cayman Islands |  |  | — | % |  | $ | 1,535 |  |  | $ | 2,005 |
Hong Kong |  |  | 16.5 | % |  |  | 745 |  |  |  | 665 |
China |  |  | 25.0 | % |  |  | (124 | ) |  |  | 48 |
Deferred income taxes consist of the following (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses |  | $ | 700 |  |  | $ | 600 |
Operating lease liabilities |  |  | 325 |  |  |  | 384 |
Other |  |  | 82 |  |  |  | 83 |
Total deferred tax assets |  |  | 1,107 |  |  |  | 1,067 |
Valuation allowance |  |  | (391 | ) |  |  | (302 | )
Net deferred tax assets |  |  | 716 |  |  |  | 765 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Operating lease assets |  |  | (297 | ) |  |  | (356 | )
Foreign deferreds |  |  | (173 | ) |  |  | (135 | )
Prepaids |  |  | (35 | ) |  |  | (35 | )
Other |  |  | (3 | ) |  |  | (5 | )
Total deferred tax liabilities |  |  | (508 | ) |  |  | (531 | )
Net deferred tax assets |  | $ | 208 |  |  | $ | 234 |
The effective income tax rate for the year ended December 31, 2024 includes estimates for foreign income inclusions such as global intangible low-taxed income (“GILTI”) and Subpart F income. The effect of permanent differences in 2024 and 2023 is mainly due to compensation-related limitations under Internal Revenue Code Section 162(m). As of December 31, 2024, the Company does not have a valuation allowance against its U.S. deferred tax assets. The Company analyzed all sources of available income and determined that they are more likely than not to realize the tax benefits of their deferred assets. As of December 31, 2024, the Company has a valuation allowance against deferred taxes in certain foreign jurisdictions with an overall net operating loss. The valuation allowance will be reduced at such time as management believes it is more likely than not that the deferred tax assets will be realized. Any reductions in the valuation allowance will reduce future income tax provision. As of December 31, 2024, the Company has $390,000 of U.S. federal net operating loss carryforwards. The Company has post-apportioned U.S. state net operating loss carryforwards of $457,000 that begin expiring in 2038. At December 31, 2024, the Company has foreign net operating loss carryforwards of approximately $2.3 million in various jurisdictions with various expirations. As of December 31, 2024, income taxes payable for the repatriation tax on the deemed repatriation of deferred foreign income required by the U.S. Tax Cuts and Jobs Act (the “Tax Act”), enacted in 2017 by the U.S. government, totaled $5.1 million, with the final installment of eight total payments payable in April 2025. As a result of capital return activities, the Company determined that a portion of its current undistributed foreign earnings is no longer deemed reinvested indefinitely by its non-U.S. subsidiaries. For state income tax purposes, the Company will continue to periodically reassess the needs of its foreign subsidiaries and update its indefinite reinvestment assertion, as necessary. To the extent that additional foreign earnings are not deemed permanently reinvested, the Company expects to recognize additional income tax provision at the applicable state corporate income tax rate(s). As of December 31, 2024, the Company has not recorded a state deferred tax liability for earnings that the Company plans to repatriate out of accumulated earnings in future periods because all earnings as of December 31, 2024 have already been repatriated. Due to the Tax Act, repatriation from foreign subsidiaries will be offset with a dividends received deduction, resulting in little to no impact on federal tax expense. All undistributed earnings in excess of 50% of current earnings on an annual basis are intended to be reinvested indefinitely as of December 31, 2024. The Company and its subsidiaries file tax returns in the United States, California, New Jersey, Texas and various foreign jurisdictions. The Company is no longer subject to state income tax examinations for years prior to 2019. The Company is not aware of any jurisdictions that are currently examining any income tax returns of the Company.

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