INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2023, 2022 and 2021 consisted of the following (in thousands):


	2023		2022		2021
Current
Federal	$	25,170	$	35,857	$	49,433
State	3,001		5,558		6,380
Total current	28,171		41,415		55,813

Deferred
Federal	1,523		(738)		(3,424)
State	(312)		(186)		(291)
Foreign	—		—		—
Total deferred	1,211		(924)		(3,715)

Provision for income taxes	$	29,382	$	40,491	$	52,098

Schedule of Components of Total Income Tax Provision

Those amounts have been allocated to the following financial statement items:


	2023		2022		2021

Income before provision for income taxes	$	29,382	$	40,491	$	52,098
Stockholders' equity, unrealized (losses) gains on investment securities & foreign currency	112		(27)		66
Total provision for income taxes	$	29,494	$	40,464	$	52,164

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the United States federal statutory tax provision to the Company’s provision for income taxes for the years ended December 31, 2023, 2022 and 2021 (in thousands, except percentages):


	2023				2022				2021
Statutory federal tax	$	27,048	21.0	%	$	38,621	21.0	%	$	45,405	21.0	%
State income taxes, net of federal benefit	2,124		1.7	%	4,635		2.5	%	4,980		2.3	%
Foreign taxes
Hong Kong	63		0.0	%	75		0.0	%	91		0.0	%
Singapore	(199)		(0.2)	%	28		0.0	%	32		0.0	%
Share-based compensation	143		0.1	%	(26)		0.0	%	(1,835)		(0.8)	%
Research and development and jobs credits	(1,258)		(1.0)	%	(819)		(0.4)	%	(503)		(0.2)	%
Executive compensation	1,895		1.5	%	1,470		0.8	%	2,652		1.2	%
Charitable donations	(1,094)		(0.8)	%	(4,316)		(2.3)	%	—		0.0	%
Valuation allowance	(613)		(0.5)	%	396		0.2	%	468		0.2	%
Intercompany loan restructuring	1,167		0.9	%	—		—	%	—		—	%
Other permanent differences	106		0.1	%	427		0.2	%	808		0.4	%
Provision for income taxes	$	29,382	22.8	%	$	40,491	22.0	%	$	52,098	24.1	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets (liabilities) consisted of the following (in thousands):


	December 31, 2023		December 31, 2022

Reserves on inventory and sales	$	721	$	1,069
Credit and loss carryforwards	2,881		3,713
Stock compensation	1,784		2,374
Accrued expenses and deferred costs	2,986		5,153
Inventory capitalization	587		1,781
Lease obligations	5,542		5,773
Capitalized research costs	5,841		2,502
Charitable donations	114		1,862
State taxes	1,520		—
Other	164		190
Valuation allowance	(1,680)		(2,523)
Total deferred tax assets	20,460		21,894

Right-of-use assets	(3,938)		(4,089)
Prepaid expenses	(2,084)		(1,289)
Depreciation	(10,321)		(11,165)
Other	—		(23)
Total deferred tax liabilities	(16,343)		(16,566)

Net deferred tax assets	$	4,117	$	5,328

Schedule of Unrecognized Tax Benefits Roll Forward

The amounts of unrecognized tax benefits were as follows:


	December 31, 2023		December 31, 2022

Unrecognized tax benefit at the beginning of the period	$	6,011	$	2,714
Increase for current year tax positions	1,744		860
Increase for prior period tax positions	38		2,487
Reduction due to lapse in statute of limitations	(291)		(50)
Unrecognized tax benefit at the end of the period	$	7,502	$	6,011