What changed in this filing

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Item 1. Financial Statements

2025-08-14 compared with 2025-05-15 · 133 added, 109 removed, 514 unchanged (32% of the section changed)

5 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

4 unchanged sentences

Loss on disposal of operating assets — — — 4

Operating loss ( 781 ) ( 1,329 ) ( 2,693 ) ( 4,977 )

Operating profit (loss) 3,260 147 567 ( 4,830 )

Interest expense, net 391 905 1,289 2,065

Foreign currency exchange loss (gain), net 5 ( 1 ) 4 —

Other expense, net 37 83 75 153

Loss from continuing operations before income tax expense ( 1,247 ) ( 2,227 ) ( 3,664 ) ( 6,291 )

Other (income) expense, net ( 479 ) 160 ( 404 ) 313

Income (loss) from continuing operations before income tax expense 3,343 ( 917 ) ( 322 ) ( 7,208 )

Income tax expense 41 — 120 11

Loss from continuing operations ( 1,322 ) ( 2,232 ) ( 3,744 ) ( 6,302 )

(Loss) income from discontinued operations, net of tax ( 70 ) 642 36 1,289

Net loss $ ( 1,392 ) $ ( 1,590 ) $ ( 3,708 ) $ ( 5,013 )

Income (loss) from continuing operations 3,302 ( 917 ) ( 442 ) ( 7,219 )

Income from discontinued operations, net of tax 106 989 142 2,279

Net income (loss) $ 3,408 $ 72 $ ( 300 ) $ ( 4,940 )

Basic and diluted earnings (loss) per share:

Basic and diluted loss per share from continuing operations $ ( 0.22 ) $ ( 0.38 ) $ ( 0.62 ) $ ( 1.05 )

Basic and diluted (loss) earnings per share from discontinued operations ( 0.01 ) 0.11 0.01 0.21

Basic and diluted loss per share $ ( 0.23 ) $ ( 0.27 ) $ ( 0.61 ) $ ( 0.84 )

Basic and diluted earnings (loss) per share from continuing operations $ 0.54 $ ( 0.16 ) $ ( 0.07 ) $ ( 1.20 )

Basic and diluted income earnings per share from discontinued operations 0.02 0.17 0.02 0.38

Basic and diluted earnings (loss) per share $ 0.56 $ 0.01 $ ( 0.05 ) $ ( 0.82 )

Weighted-average number of common shares (basic) 6,068 6,009 6,050 5,991

6 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Net loss $ ( 1,392 ) $ ( 1,590 ) $ ( 3,708 ) $ ( 5,013 )

Net income (loss) $ 3,408 $ 72 $ ( 300 ) $ ( 4,940 )

Other comprehensive income (loss):

3 unchanged sentences

Other — ( 5 ) ( 2 ) ( 5 )

Comprehensive (loss) income $ ( 1,370 ) $ ( 1,675 ) $ 1,889 $ ( 4,801 )

Comprehensive income (loss) $ 3,431 $ 98 $ 5,320 $ ( 4,703 )

See notes to unaudited consolidated condensed financial statements.

31 unchanged sentences

Total current liabilities 25,646 54,010

Long-term debt, net of current maturities 74 —

Long-term finance lease, net of short-term 62 —

Long-term operating lease liabilities, net of short-term 12,476 13,035

6 unchanged sentences

Serial preferred shares, no par value, authorized 1,000 shares;

zero shares issued and outstanding at March 31, 2025 and September 30, 2024

zero shares issued and outstanding at June 30, 2025 and September 30, 2024

Common shares, par value $ 1 per share, authorized 10,000 shares;

issued and outstanding shares 6,190 at March 31, 2025 and 6,158 at September 30, 2024

issued and outstanding shares 6,180 at June 30, 2025 and 6,158 at September 30, 2024

Additional paid-in capital 11,853 11,775

8 unchanged sentences

(Unaudited, Amounts in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

11 unchanged sentences

Interest added to promissory note - related party (paid-in-kind) 27 216

Other short-term liabilities 10 —

Interest added to other current maturities of long-term debt 13 —

Other long-term liabilities ( 144 ) 270

14 unchanged sentences

Cash flows from financing activities:

Payments on long-term debt — —

Proceeds from term loan 3,000 —

22 unchanged sentences

(Unaudited, Amounts in thousands)

Six Months Ended

Nine Months Ended

Cash paid during the year:

1 unchanged sentence

Cash paid for income taxes, net ( 16 ) ( 19 )

Non-cash investing and financing activities:

Non-cash investing activities:

Additions to property, plant & equipment — incurred but not yet paid

Non-cash financing activities:

Debt issuance costs — incurred but not yet paid

1 unchanged sentence

Origination fees capitalized to promissory note principal — related party

Interest added to promissory note — related party (paid-in-kind)

See notes to unaudited consolidated condensed financial statements.

4 unchanged sentences

Three Months Ended

March 31, 2025

June 30, 2025

Common Shares Additional

4 unchanged sentences

Shares Amount

Balance at January 1, 2025 6,147 $ 6,147 $ 11,778 $ 15,565 $ 186 $ 33,676

Comprehensive (loss) income — — — ( 1,392 ) 22 ( 1,370 )

Balance at April 1, 2025 6,190 $ 6,190 $ 11,796 $ 14,173 $ 208 $ 32,367

Comprehensive income — — — 3,408 23 3,431

Performance and restricted share expense — — 47 — — 47

Share transactions under equity-based plans ( 10 ) ( 10 ) 10 — — —

Balance at March 31, 2025 6,190 $ 6,190 $ 11,796 $ 14,173 $ 208 $ 32,367

Balance at June 30, 2025 6,180 $ 6,180 $ 11,853 $ 17,581 $ 231 $ 35,845

Three Months Ended

March 31, 2024

June 30, 2024

Common Shares Additional

4 unchanged sentences

Shares Amount

Balance at January 1, 2024 6,160 $ 6,160 $ 11,609 $ 19,842 $ ( 6,364 ) $ 31,247

Comprehensive loss — — — ( 1,590 ) ( 85 ) ( 1,675 )

Balance at April 1, 2024 6,190 $ 6,190 $ 11,663 $ 18,252 $ ( 6,449 ) $ 29,656

Comprehensive income — — — 72 26 98

Performance and restricted share expense — — 72 — — 72

Share transactions under equity-based plans ( 10 ) ( 10 ) 10 — — —

Balance at March 31, 2024 6,190 $ 6,190 $ 11,663 $ 18,252 $ ( 6,449 ) $ 29,656

Six Months Ended

March 31, 2025

Balance at June 30, 2024 6,180 $ 6,180 $ 11,745 $ 18,324 $ ( 6,423 ) $ 29,826

Nine Months Ended

June 30, 2025

Common Shares Additional

8 unchanged sentences

Share transactions under equity-based plans 22 22 ( 56 ) — — ( 34 )

Balance at March 31, 2025 6,190 $ 6,190 $ 11,796 $ 14,173 $ 208 $ 32,367

Six Months Ended

March 31, 2024

Balance at June 30, 2025 6,180 $ 6,180 $ 11,853 $ 17,581 $ 231 $ 35,845

Nine Months Ended

June 30, 2024

Common Shares Additional

8 unchanged sentences

Share transactions under equity-based plans 75 75 ( 124 ) — — ( 49 )

Balance at March 31, 2024 6,190 $ 6,190 $ 11,663 $ 18,252 $ ( 6,449 ) $ 29,656

Balance at June 30, 2024 6,180 $ 6,180 $ 11,745 $ 18,324 $ ( 6,423 ) $ 29,826

See notes to unaudited consolidated condensed financial statements.

29 unchanged sentences

A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s 2024 Annual Report.

Net Loss per Share

The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding.

Net Earnings (Loss) per Share

The Company’s net earnings (loss) per basic share has been computed based on the weighted-average number of common shares outstanding.

During a period of net loss, zero restricted and performance shares are included in the calculation of diluted earnings per share because the effect would be anti-dilutive.

2 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Loss from continuing operations $ ( 1,322 ) ( 2,232 ) $ ( 3,744 ) ( 6,302 )

(Loss) income from discontinued operations, net of tax ( 70 ) 642 36 1,289

Net loss $ ( 1,392 ) $ ( 1,590 ) $ ( 3,708 ) $ ( 5,013 )

Weighted-average common shares outstanding (basic and diluted) 6,068 6,009 6,042 5,983

Income (loss) from continuing operations $ 3,302 ( 917 ) $ ( 442 ) ( 7,219 )

Income from discontinued operations, net of tax 106 989 142 2,279

Net income (loss) $ 3,408 $ 72 $ ( 300 ) $ ( 4,940 )

Weighted-average common shares outstanding (basic) 6,068 6,009 6,050 5,991

Effect of dilutive securities:

Restricted shares 58 78 — —

Performance shares 12 18 — —

Weighted-average common shares outstanding (diluted) 6,138 6,105 6,050 5,991

Net earnings (loss) per share – basic and diluted:

1 unchanged sentence

Discontinued operations 0.02 0.17 0.02 0.38

Net loss per share $ ( 0.23 ) $ ( 0.27 ) $ ( 0.61 ) $ ( 0.84 )

Net earnings (loss) per share $ 0.56 $ 0.01 $ ( 0.05 ) $ ( 0.82 )

Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 69 151 148 251

1 unchanged sentence

None applicable.

Impact of Newly Issued Accounting Standards

Impact of Newly Issued Accounting Standards and Legislation

Accounting Pronouncements - Issued and Not Effective

In January 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

10 unchanged sentences

The amendments in ASU 2024-03 should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of the ASU or (2) retrospectively to any or all prior periods presented in the financial statements.

The Company is currently assessing the impact of this standard on our consolidated financial statements and related disclosures.

The Company is currently assessing the impact of this standard on our consolidated condensed financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

4 unchanged sentences

For example, a public entity is required to report a measure of segment profit or loss that the CODM uses to assess segment performance and make decisions about allocating resources.

ASC 280 also requires other specified segment items and amounts such as depreciation, amortization and depletion expense to be disclosed under certain circumstances.

ASC 280 also requires other specified segment items and

amounts such as depreciation, amortization and depletion expense to be disclosed under certain circumstances.

The amendments in ASU 2023-07 do not change or remove those disclosure requirements.

3 unchanged sentences

A public entity should apply the amendments in ASU 2023-07 retrospectively to all prior periods presented in the financial statements.

The Company does not anticipate the adoption of ASU 2023-07 to have a significant impact on the consolidated financial statements and related disclosures.

The Company does not anticipate the adoption of ASU 2023-07 to have a significant impact on the consolidated condensed financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

4 unchanged sentences

A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024.

The Company is currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

The Company is currently evaluating the impact of this standard on our consolidated condensed financial statements and related disclosures.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA").

The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation.

ASC 740, “Income Taxes”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted.

Consequently, as of the date of enactment, the Company will evaluate all deferred tax balances under the newly enacted tax law and identify any other changes required to its financial statements as a result of the OBBBA.

The Company is still evaluating the impact of the OBBBA and the results of such evaluations will be reflected on the Company's Form 10-K for the fiscal year-ended September 30, 2025.

Fair Value Measurements

14 unchanged sentences

Refer to Note 9 — Retirement Benefit Plans of the 2024 Annual Report for further discussion.

Reclassifications

Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications.

For the six months ended March 31, 2024, the Company revised its classification within the consolidated condensed statements of cash flows by moving the prior period amount for contract liabilities from accrued liabilities to contract liabilities to conform to current period presentation.

Employee Retention Credit

Under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Employee Retention Credit (“ERC”) is a refundable payroll tax credit available to eligible businesses and tax-exempt organizations impacted by the COVID-19 pandemic.

Businesses qualified if they experienced a full or partial government-ordered suspension of operations or a "significant" decline in gross receipts (defined as a decline of more than 50% in any 2020 quarter compared to 2019, and more than 20% in 2021).

The Company, having reasonably assured eligibility, submitted and received approval for ERC refunds.

In the absence of specific U.S.

GAAP guidance on accounting for such credits, the Company adopted International Accounting Standards (“IAS”) 20 – Accounting for Government Grants and Disclosure of Government Assistance.

Under IAS 20, the credit can be

presented as other income or as a reduction of related expense.

The Company elected to reduce the expense categories in which the original payroll taxes were incurred.

As of June 30, 2025, the Company recognized a total gross benefit of $ 3,373 , consisting of $ 2,859 ERC refund and $ 514 in interest income.

The credit was allocated as follows:

• $ 2,406 to cost of goods sold (“COGS”),

• $ 453 to selling, general and administrative expense (“SG&A”), and

• $ 514 to other (income) expense, net.

Additionally, the Company incurred $ 675 in professional fees related to the ERC, which was recorded to in SGA expense during both the three months and nine months ended June 30, 2025.

There was no income or expense recorded for the three months and nine months ended June 30, 2024.

As of June 30, 2025, the Company recorded $ 706 in accounts receivable on the consolidated condensed balance sheets, which was subsequently received on July 7, 2025.

Discontinued Operations

9 unchanged sentences

With the disposal of CBlade, the Company determined that its European operations represented a substantially complete liquidation.

Therefore, $ 5,851 of cumulative translation adjustment loss

attributable to these operations (related to Irish Holdings) was recognized in the statement of operations as a component of the gain on sale of discontinued operations upon the loss of a controlling financial interest in CBlade, which represented in excess of 90 % of the assets of the Company's European operations.

Therefore, $ 5,851 of cumulative translation adjustment loss attributable to these operations (related to Irish Holdings) was recognized in the statement of operations as a component of the gain on sale of discontinued operations upon the loss of a controlling financial interest in CBlade, which represented in excess of 90 % of the assets of the Company's European operations.

The principal components of the assets and liabilities related to discontinued operations classified as held for sale as of September 30, 2024 were as follows:

20 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

3 unchanged sentences

Income from discontinued operations before income tax expense and gain on sale — 1,044 214 2,421

Income tax expense from discontinued operations — 43 167 87

Loss on sale of discontinued operations before income tax expense — — ( 11 ) —

(Loss) income from discontinued operations, net of tax $ ( 70 ) $ 642 $ 36 $ 1,289

Income tax expense from discontinued operations ( 106 ) 55 61 142

Income from discontinued operations, net of tax $ 106 $ 989 $ 142 $ 2,279

Inventories consist of:

5 unchanged sentences

For a portion of the Company’s inventory, cost is determined using the last-in, first-out (“LIFO”) method.

Approximately 40 % and 30 % of the Company’s inventories as of March 31, 2025 and September 30, 2024, respectively, use the LIFO method.

Approximately 53 % and 30 % of the Company’s inventories as of June 30, 2025 and September 30, 2024, respectively, use the LIFO method.

An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time.

Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs.

Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-

end inventory levels and costs.

Because the actual results may vary from these estimates, the annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results.

The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value (“NRV”).

If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $ 10,360 and $ 10,496 higher than reported as of March 31, 2025 and September 30, 2024, respectively.

If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $ 9,890 and $ 10,496 higher than reported as of June 30, 2025 and September 30, 2024, respectively.

Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation.

The Company estimates net realizable value, excess and obsolescence and shrink reserves for its inventory based upon historical experience, historical and projected sales trends and the age of inventory on hand.

As of March 31, 2025 and September 30, 2024, our inventory valuation allowances were $ 3,081 and $ 2,733 , respectively.

As of June 30, 2025 and September 30, 2024, our inventory valuation allowances were $ 3,544 and $ 2,733 , respectively.

Accumulated Other Comprehensive Income (Loss)

5 unchanged sentences

Total accumulated other comprehensive income (loss) $ 231 $ ( 5,389 )

During the six months ended March 31, 2025, the Company reclassified $ 5,554 from foreign currency translation adjustment to income from discontinued operations in the consolidated condensed statements of operations concurrent with the disposition of the CBlade and the substantially complete liquidation of operations in Europe.

During the nine months ended June 30, 2025, the Company reclassified $ 5,554 from foreign currency translation adjustment to income from discontinued operations in the consolidated condensed statements of operations concurrent with the disposition of the CBlade and the substantially complete liquidation of operations in Europe.

The components of lease expense were as follows:

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

6 unchanged sentences

The following table presents the impact of leasing on the consolidated condensed balance sheet.

Classification in the consolidated condensed balance sheets March 31,

Classification in the consolidated condensed balance sheets June 30,

2025 September 30,

10 unchanged sentences

Supplemental cash flow and other information related to leases were as follows:

Six Months Ended

Nine Months Ended

Other Information

13 unchanged sentences

Operating leases 6.0 % 5.9 %

Future minimum lease payments under non-cancellable leases as of March 31, 2025 were as follows:

Future minimum lease payments under non-cancellable leases as of June 30, 2025 were as follows:

Finance Leases Operating Leases

19 unchanged sentences

Loan and Security Agreement

On October 17, 2024, Company and Quality Aluminum Forge, LLC, a wholly-owned subsidiary of the Company (“QAF”, and together with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Loan Agreement”) among the Company and QAF, as borrowers, Siena Lending Group LLC, as Lender (“Siena”), and each of the affiliates of the borrowers signatory to the Loan Agreement from time to time as guarantors.

On October 17, 2024, the Company and Quality Aluminum Forge, LLC, a wholly-owned subsidiary of the Company (“QAF”, and together with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Loan Agreement”) among the Company and QAF, as borrowers, Siena Lending Group LLC, as Lender (“Siena”), and each of the affiliates of the borrowers signatory to the Loan Agreement from time to time as guarantors.

The Loan Agreement provided for a senior secured revolving credit facility with a term of three years in an aggregate principal amount not to exceed $ 20,000 (the “Revolver”) and a term loan in the original principal amount of $ 3,000 (the “Term Loan”).

7 unchanged sentences

Borrowings under the Term Loan will bear interest at an annual rate of 5.5 % plus the adjusted term SOFR (or, if the base rate is applicable, 4.5 % plus the base rate) and shall be repaid in equal consecutive monthly installments of $ 50 commencing November 1, 2024, with the entire unpaid balance due and payable on the maturity date.

Letters of credit issued under the Letter of Credit Sub-facility will have a fee equal to 4.5 % plus adjusted term SOFR per annum of the face amount of such letter of credit.

Letters of credit issued under the Letter of Credit Sub-facility will have an interest rate equal to 4.5 % plus adjusted term SOFR per annum of the face amount of such letter of credit.

The Letter of Credit Sub-facility requires the Company to maintain compensating balances in a money market account in support of any issuances.

1 unchanged sentence

however, availability under the Letter of Credit Sub-facility will be dependent upon the maintenance of such compensating balances.

As of March 31, 2025, the Company held $ 1,553 in compensating balances, which were included in cash and cash equivalents in the consolidated condensed balance sheets.

As of June 30, 2025, the Company held $ 1,553 in compensating balances, which were included in cash and cash equivalents in the consolidated condensed balance sheets.

In consideration of the execution and delivery by Siena of the Loan Agreement, the Company agreed pursuant to the fee letter to pay a closing fee in the amount of $ 230 (of which $ 115 was paid on the closing date and $ 115 is payable on the first anniversary of the closing date, with the remaining amount (if any) of the closing fee to be paid in full on the maturity date).

2 unchanged sentences

In addition, an unused line fee accrues with respect to the unused amount of the Revolver at an annual rate of 0.5 %.

All fees that are payable in future installments or in full at maturity were recognized within accrued liabilities in the consolidated condensed balance sheets as of March 31, 2025.

All fees that are payable in future installments or in full at maturity were recognized within accrued liabilities in the consolidated condensed balance sheets as of June 30, 2025.

Borrowings under the Credit Facility are secured by (a) a continuing first priority lien on and security interest in and to substantially all of the assets of the Company and other loan parties identified therein;

2 unchanged sentences

The Loan Agreement provides that the Company must maintain compliance with a minimum fixed charge coverage ratio, determined in accordance with the Loan Agreement.

The Loan Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans

and investment, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type.

The Loan Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investment, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type.

Additionally, the Loan Agreement contains provisions for a lockbox arrangement and a subjective acceleration clause related to the appraised value of collateralized property, plant, and equipment;

hence, the Term Loan and the Revolver were each classified as current maturities of long-term debt in the consolidated condensed balance sheet as of March 31, 2025.

As of March 31, 2025, the Company was in compliance with all covenants under the Loan Agreement.

As of March 31, 2025, total availability under the Revolver was $ 2,595 , and no letters of credit were outstanding.

As of March 31, 2025 and September 30, 2024, the Company had effective interest rates of 9.7 % and 8.0 %, respectively, under its revolving credit agreements.

hence, the Term Loan and the Revolver were each classified as current maturities of long-term debt in the consolidated condensed balance sheet as of June 30, 2025.

As of June 30, 2025, the Company was in compliance with all covenants under the Loan Agreement.

As of June 30, 2025, total availability under the Revolver was $ 4,892 , and no letters of credit were outstanding.

As of June 30, 2025 and September 30, 2024, the Company had effective interest rates of 9.7 % and 8.1 %, respectively, under its revolving credit agreements.

Debt issuance costs

As of March 31, 2025 and September 30, 2024, the Company had debt issuance costs related to its outstanding revolving credit agreements of $ 556 and $ 461 , respectively, which are included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $ 77 and nil , respectively.

As of March 31, 2025, the Company had debt issuance costs related to the Term Loan of $ 83 , which are included net of debt in the consolidated condensed balance sheets, net of amortization of $ 15 .

As of June 30, 2025 and September 30, 2024, the Company had debt issuance costs related to its outstanding revolving credit agreements of $ 556 and $ 461 , respectively, which are included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $ 124 and nil , respectively.

As of June 30, 2025, the Company had debt

issuance costs related to the Term Loan of $ 83 , which are included net of debt in the consolidated condensed balance sheets, net of amortization of $ 25 .

In April 2019, the Company entered into an economic development loan in the amount of $ 864 with FirstEnergy Corporation (“FirstEnergy”) through its Ohio Electric Security Plan (“ESP”) in effect at that time (the “ED Loan”).

2 unchanged sentences

Prime Rate plus 1.0 %.

As of March 31, 2025 and September 30, 2024, the Company had outstanding balances under the ED Loan of $ 142 and $ 133 , respectively.

As of June 30, 2025 and September 30, 2024, the Company had outstanding balances under the ED Loan of $ 144 and $ 133 , respectively.

Beginning on October 1, 2019, FirstEnergy invoiced the Company on a quarterly basis and payments were made accordingly.

6 unchanged sentences

The VPI Loan matures in five years with a final balloon payment of all outstanding principal and interest and is forgivable in full contingent upon the Company creating a minimum number of new jobs and maintaining minimum employment levels during the term of the loan.

As of both March 31, 2025 and September 30, 2024, the Company had amounts outstanding under the VPI Loan of $ 220 .

As of both June 30, 2025 and September 30, 2024, the Company had amounts outstanding under the VPI Loan of $ 220 .

Due to the effects of the worldwide pandemic, the Company experienced declines in demand for its products and sales, which hindered the Company's ability to grow its workforce and maintain it at or above the required levels.

5 unchanged sentences

This estimated effective rate is used in providing for income taxes on a year-to-date basis.

The Company’s effective tax rate through the first six months of fiscal 2025 was ( 2.16 )%, compared with ( 0.17 )% for the same period of fiscal 2024.

The Company’s effective tax rate through the first nine months of fiscal 2025 was ( 37.2 )%, compared with ( 0.2 )% for the same period of fiscal 2024.

The decrease in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024.

9 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

3 unchanged sentences

Amortization of net loss 23 44 68 130

Settlement cost — 60 0 60

Net periodic pension cost $ 38 $ 159 $ 113 $ 356

During the six months ended March 31, 2025 and 2024, the Company made $ 95 and $ 18 in cash contributions, and zero and $ 86 in non-cash contributions utilizing carryover balance, respectively, to its defined benefit pension plans.

During the nine months ended June 30, 2025 and 2024, the Company made $ 175 and $ 32 in cash contributions, and zero and $ 87 in non-cash contributions utilizing carryover balance, respectively, to its defined benefit pension plans.

The Company anticipates making $ 121 in cash contributions to fund its defined benefit pension plans for the balance of fiscal 2025, and will use carryover balances from previous periods that have been available for use as a credit to reduce the amount of cash contributions that the Company is required to make to certain defined benefit plans in fiscal 2025.

3 unchanged sentences

The Company has outstanding equity awards under the Company’s 2007 Long-Term Incentive Plan (the “2007 Plan”) and the Company’s 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the “2016 Plan”), and awards performance and restricted shares under the 2016 Plan.

In the first six months of fiscal 2025, the Company granted 47 time-based restricted shares under the 2016 Plan to non-employee directors with a grant date fair value of $ 3.70 per share.

In the first nine months of fiscal 2025, the Company granted 47 time-based restricted shares under the 2016 Plan to non-employee directors with a grant date fair value of $ 3.70 per share.

The awards vest over one year .

In the first six months of fiscal 2025, the Company granted 10 time-based restricted shares under the 2016 Plan to certain key employees with a grant date fair value of $ 4.14 per share.

In the first nine months of fiscal 2025, the Company granted 10 time-based restricted shares under the 2016 Plan to certain key employees with a grant date fair value of $ 4.14 per share.

The awards vest over three years .

There were 32 shares forfeited during the six months ended March 31, 2025.

No performance-based shares were granted during the six months ended March 31, 2025.

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 360 shares that remain available for award as of March 31, 2025.

There were 42 shares forfeited during the nine months ended June 30, 2025.

No performance-based shares were granted during the nine months ended June 30, 2025.

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 370 shares that remain available for award as of June 30, 2025.

If any of the outstanding share awards are ultimately earned and vest at greater than the target number of shares, up to a maximum of 150 % of such target, then a fewer number of shares would be available for award.

Stock-based compensation expense under the 2016 Plan was $ 88 and $ 171 during the first six months of fiscal 2025 and 2024, respectively, and $ 67 and $ 84 during the three months ended March 31, 2025 and 2024, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations.

As of March 31, 2025, there was $ 273 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan.

Stock-based compensation expense under the 2016 Plan was $ 135 and $ 243 during the first nine months of fiscal 2025 and 2024, respectively, and $ 47 and $ 72 during the three months ended June 30, 2025 and 2024, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations.

As of June 30, 2025, there was $ 170 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan.

The Company expects to recognize this cost over the next 0.9 years.

7 unchanged sentences

• Certain military contracts, which relate to the provisions of specialized or unique goods to the U.S.

government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation (“FAR”).

The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires

the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process.

government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation

The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process.

• For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company’s use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin.

6 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

7 unchanged sentences

All revenue based on selling locations originated from the Company’s U.S.

In addition to the disaggregated revenue information provided above, approximately 57 % and 53 % of total net sales for the six months ended March 31, 2025 and 2024, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time.

In addition to the disaggregated revenue information provided above, approximately 61 % and 52 % of total net sales for the nine months ended June 30, 2025 and 2024, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time.

Contract Balances

The following table contains a roll forward of contract assets and contract liabilities for the six months ended March 31, 2025 and 2024:

2025 March 31,

The following table contains a roll forward of contract assets and contract liabilities for the nine months ended June 30, 2025 and 2024:

2025 June 30,

Contract assets — beginning balance

4 unchanged sentences

$ 12,681 $ 10,055

2025 March 31,

2025 June 30,

Contract liabilities — beginning balance

3 unchanged sentences

Contract liabilities — ending balance $ 2,061 $ 3,436

During the three and six months ended March 31, 2025, the Company recognized revenues of approximately $ 730 and $ 1,665 , respectively, that were included in contract liabilities at the beginning of fiscal year 2025.

During the three and six months ended March 31, 2024, the Company recognized revenues of approximately $ 1,523 and $ 1,523 , respectively, that were included in contract liabilities at the beginning of fiscal year 2024.

Accounts receivable were $ 15,638 and $ 14,677 as of September 30, 2023 and March 31, 2024, respectively.

There were no material impairment losses recorded on contract assets as of March 31, 2025 and September 30, 2024.

During the three and nine months ended June 30, 2025, the Company recognized revenues of approximately $ 2,050 and $ 3,716 , respectively, that were included in contract liabilities at the beginning of fiscal year 2025.

During the three and nine months ended June 30, 2024, the Company recognized revenues of approximately $ 0 and $ 1,523 , respectively, that were included in contract liabilities at the beginning of fiscal year 2024.

Accounts receivable were $ 15,638 and $ 17,970 as of September 30, 2023 and June 30, 2024, respectively.

There were no material impairment losses recorded on contract assets as of June 30, 2025 and September 30, 2024.

Remaining performance obligations

As of March 31, 2025, the Company has $ 129,218 , of which $ 98,883 are anticipated to be complete within the next 12 months, of remaining performance obligations (including contract assets).

As of June 30, 2025, the Company has $ 130,419 of remaining performance obligations (including contract assets), of which $ 92,525 are anticipated to be complete within the next 12 months.

Commitments and Contingencies

1 unchanged sentence

The Company cannot reasonably estimate future costs, if any, related to these matters;

however, it does not believe any such matters are material to its financial condition or results of operations.

however, it does not anticipate any material impact on its financial condition or results of operations from these matters.

The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations;

8 unchanged sentences

The Company is a party to collective bargaining agreements (“CBA”) with certain employees located in Cleveland, which has two bargaining units.

The Company’s Cleveland bargaining unit 1 ratified its CBA in fiscal 2020 and it expired on May 15, 2025.

The Company’s Cleveland bargaining unit 1 ratified its CBA in fiscal 2020 and such CBA expired on May 15, 2025.

On May 9, 2025, t he Company reached an agreement on a new CBA with the International Association of Machinists (“IAM”) and its employee members.

The new CBA takes effect on May 15, 2025 and contains substantially similar terms and conditions as the previous agreement.

The new CBA took effect on May 15, 2025 and contains substantially similar terms and conditions as the expired CBA.

The second bargaining unit, under its new representative the International Brotherhood of Boilermakers (“IBB”), was ratified in fiscal 2022 and expired on March 31, 2025.

The Company is in negotiations with the IBB and its employee members, who continue to work under the terms of the expired agreement.

The Company anticipates ratification of a new agreement during the third quarter of fiscal 2025 with substantially similar terms and conditions as the previous agreement.

The Company continues to be in negotiations with the IBB and its employee members, who continue to work under the terms of the expired IBB CBA.

The Company anticipates ratification of a new agreement during the fourth quarter of fiscal 2025 with substantially similar terms and conditions as the expired IBB CBA.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements