Components of Income Tax Provision (Benefit)

Components of the Company’s income tax provision (benefit) for the periods indicated are as follows (in thousands):


	Year Ended December 31,
	2025			2024			2023
Current
Canada	$	11		$	43		$	59
U.S.		1,733			11,198			14,424
Other		22,922			19,647			11,113
		24,666			30,888			25,596
Deferred
Canada		—			—			—
U.S.		(5,124	)		(12,612	)		(12,224	)
Other		(3,729	)		(3,297	)		(2,502	)
		(8,853	)		(15,909	)		(14,726	)
Total	$	15,813		$	14,979		$	10,870

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2025 and December 31, 2024 are as follows (in thousands):


	December 31,
	2025			2024
Deferred tax assets:
Capitalized R&D	$	40,043		$	34,777
Inventories		16,270			15,451
Losses		13,456			12,606
Compensation related deductions		7,827			9,323
Operating lease liabilities		8,703			9,120
Tax credits		4,821			3,260
Deferred tangible equity unit financing fee		3,715			—
Business interest expense		55			1,483
Other		1,922			974
Warranty		665			913
Total deferred tax assets		97,477			87,907
Valuation allowance on deferred tax assets		(23,212	)		(18,594	)
Net deferred tax assets	$	74,265		$	69,313
Deferred tax liabilities:
Amortization	$	(43,771	)	$	(39,061	)
Operating lease right-of-use assets		(7,831	)		(8,110	)
Depreciation		(5,879	)		(6,307	)
Deferred revenue		(7,495	)		(6,041	)
Total deferred tax liabilities	$	(64,976	)	$	(59,519	)
Net deferred tax assets (liabilities)	$	9,289		$	9,794

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):


Balance at December 31, 2022	$	4,249
Additions based on tax positions related to the current year		561
Additions for tax positions of prior years		47
Reductions to tax positions of prior years		(22	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(492	)
Settlements with tax authorities		—
Balance at December 31, 2023		4,343
Additions based on tax positions related to the current year		949
Additions for tax positions of prior years		204
Reductions to tax positions of prior years		(42	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(615	)
Settlements with tax authorities		—
Balance at December 31, 2024		4,839
Additions based on tax positions related to the current year		697
Additions for tax positions of prior years		70
Reductions to tax positions of prior years		(101	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(1,131	)
Settlements with tax authorities		—
Balance at December 31, 2025	$	4,374