INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of United States and Foreign Income (Loss) Before Income Taxes |
United States and foreign income (loss) before income taxes were as follows:
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|
|
|
|
|
|
|
|
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|
|
|
Years Ended December 31 |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
United States |
|
$ |
4,749 |
|
|
$ |
643 |
|
|
$ |
16,378 |
|
Foreign |
|
|
1,683 |
|
|
|
(4,328 |
) |
|
|
(3,533 |
) |
Elimination of Intercompany Dividend Income |
|
|
(12,760 |
) |
|
|
— |
|
|
|
(15,422 |
) |
|
|
$ |
(6,328 |
) |
|
$ |
(3,685 |
) |
|
$ |
(2,577 |
) |
|
| Schedule of Income Taxes Paid |
The total income tax paid were as follows:
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|
|
|
|
|
|
Year Ended December 31, 2025 |
|
|
|
(in thousands) |
|
United States |
|
$ |
— |
|
Foreign |
|
|
|
India |
|
|
521 |
|
Japan |
|
|
275 |
|
Other jurisdictions |
|
|
— |
|
Total income tax paid (net of refund) |
|
$ |
796 |
|
|
| Schedule of Components of the Expense for Income Taxes |
The components of the income tax expense are summarized as follows:
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|
Years Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Current |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign |
|
|
1,391 |
|
|
|
529 |
|
|
|
999 |
|
Total current income tax expense |
|
$ |
1,391 |
|
|
$ |
529 |
|
|
$ |
999 |
|
Deferred |
|
|
|
|
|
|
|
|
|
Federal |
|
|
— |
|
|
|
— |
|
|
|
— |
|
State |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign |
|
|
231 |
|
|
|
154 |
|
|
|
275 |
|
Total deferred tax expense |
|
$ |
231 |
|
|
$ |
154 |
|
|
$ |
275 |
|
Total income tax expense |
|
$ |
1,622 |
|
|
$ |
683 |
|
|
$ |
1,274 |
|
|
| Summary of Unrecognized Tax Benefits |
A summary of the Company’s unrecognized tax benefits is as follows:
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|
|
|
Years Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Beginning balance-gross unrecognized tax benefits (UTB’s) |
|
$ |
3,244 |
|
|
$ |
3,244 |
|
|
$ |
3,244 |
|
Tax credit expiration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Ending balance—UTB |
|
|
3,244 |
|
|
|
3,244 |
|
|
|
3,244 |
|
UTB’s as a credit in deferred taxes |
|
|
(2,347 |
) |
|
|
(2,347 |
) |
|
|
(2,347 |
) |
Federal benefit of state taxes |
|
|
(356 |
) |
|
|
(356 |
) |
|
|
(356 |
) |
UTB’s that would impact the effective tax rate |
|
$ |
541 |
|
|
$ |
541 |
|
|
$ |
541 |
|
|
| Summary of the Components of Net Deferred Tax Assets |
A summary of the components of net deferred tax assets is as follows:
|
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|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(in thousands) |
|
Deferred Tax Assets |
|
|
|
|
|
|
Allowance and reserves |
|
$ |
2,079 |
|
|
$ |
1,980 |
|
Net operating loss carryforward |
|
|
164,540 |
|
|
|
164,343 |
|
Tax credit carryforwards |
|
|
5,543 |
|
|
|
5,006 |
|
Property, plant and equipment |
|
|
314 |
|
|
|
217 |
|
Accrued warranties |
|
|
9 |
|
|
|
13 |
|
Other |
|
|
12,456 |
|
|
|
12,938 |
|
Total deferred tax assets |
|
|
184,941 |
|
|
|
184,497 |
|
Deferred Tax Liabilities |
|
|
|
|
|
|
Deferred revenue and customer advances, net |
|
|
(68 |
) |
|
|
(136 |
) |
Prepaid expense |
|
|
(36 |
) |
|
|
(41 |
) |
Total deferred tax liabilities |
|
|
(104 |
) |
|
|
(177 |
) |
Total net deferred tax assets |
|
|
184,837 |
|
|
|
184,320 |
|
Less: Valuation allowance |
|
|
(184,694 |
) |
|
|
(183,941 |
) |
Total net deferred tax assets |
|
$ |
143 |
|
|
$ |
379 |
|
|
| Schedule of Reconciliation of Effective Income Tax Amount and the Federal Statutory Amount |
The difference between the Company’s effective income tax amount and the federal statutory amount are reconciled below:
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|
Years Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Federal tax (benefit) at statutory rate |
|
$ |
(774 |
) |
|
$ |
(541 |
) |
Stock compensation expense |
|
|
25 |
|
|
|
62 |
|
Effect of differences in foreign tax rates |
|
|
612 |
|
|
|
925 |
|
Effect of elimination of dividend distribution |
|
|
— |
|
|
|
3,239 |
|
Tax loss expiration |
|
|
2,934 |
|
|
|
— |
|
ASC 740-10 reserve |
|
|
21 |
|
|
|
21 |
|
Change in deferred tax valuation allowance |
|
|
(2,203 |
) |
|
|
(2,369 |
) |
Other |
|
|
68 |
|
|
|
(63 |
) |
Total Tax Expense |
|
$ |
683 |
|
|
$ |
1,274 |
|
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:
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|
Year Ended December 31, 2025 |
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|
Amount |
|
|
Percent |
|
|
|
(in thousands) |
|
|
|
|
Loss before income taxes |
|
$ |
(6,329 |
) |
|
|
|
Income tax expense (benefit) computed at US tax rate |
|
|
(1,329 |
) |
|
|
21 |
% |
Foreign Tax Effects |
|
|
|
|
|
|
Foreign withholding taxes on dividends |
|
|
1,015 |
|
|
|
-16 |
% |
Elimination of dividend distribution |
|
|
2,680 |
|
|
|
-42 |
% |
China |
|
|
|
|
|
|
Statutory tax rate difference between China and US |
|
|
514 |
|
|
|
-8 |
% |
Changes in valuation Allowance |
|
|
(812 |
) |
|
|
12 |
% |
NOL expired in current year |
|
|
1,867 |
|
|
|
-29 |
% |
Hong Kong |
|
|
|
|
|
|
Statutory tax rate difference between Hong Kong and US |
|
|
17 |
|
|
|
0 |
% |
Changes in valuation Allowance |
|
|
(1,889 |
) |
|
|
30 |
% |
Other jurisdictions |
|
|
|
|
|
|
Statutory tax rate difference between other jurisdictions and US |
|
|
493 |
|
|
|
-8 |
% |
Changes in valuation Allowance |
|
|
4 |
|
|
|
-1 |
% |
Net impact of changes to uncertain tax positions |
|
|
21 |
|
|
|
0 |
% |
Changes in valuation Allowance |
|
|
(1,013 |
) |
|
|
16 |
% |
Other adjustments |
|
|
54 |
|
|
|
-1 |
% |
Total Tax Expense |
|
$ |
1,622 |
|
|
|
-26 |
% |
|