FREIGHTCAR AMERICA, INC., 10-K filed on 3/12/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Mar. 06, 2025
Jun. 30, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2024    
Document Fiscal Year Focus 2024    
Document Transition Report false    
Entity File Number 000-51237    
Entity Registrant Name FREIGHTCAR AMERICA, INC    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 25-1837219    
Entity Address, Address Line One 125 S. Wacker Drive    
Entity Address, Address Line Two Suite 1500    
Entity Address, City or Town Chicago    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60606    
City Area Code 800    
Local Phone Number 458-2235    
Title of 12(b) Security Common stock, par value $0.01 per share    
Trading Symbol RAIL    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Document Financial Statement Error Correction [Flag] false    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag false    
Entity Public Float     $ 43.3
Entity Common Stock, Shares Outstanding   19,060,397  
Amendment Flag false    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001320854    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

 

Portions of the registrant’s definitive proxy statement for its Annual Meeting of Stockholders to be filed within 120 days of the end of the registrant’s fiscal year ended December 31, 2024 (the “2025 Proxy Statement”) is incorporated by reference into Part III hereof.

   
Auditor Name Grant Thornton LLP    
Auditor Location Chicago, Illinois    
Auditor Firm ID 248    
Auditor Opinion

Opinion on the financial statements

 

We have audited the accompanying consolidated balance sheets of FreightCar America, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive loss, mezzanine equity and stockholders’ deficit, and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

   
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets    
Cash, cash equivalents and restricted cash equivalents $ 44,450 $ 40,560
Accounts receivable, net of allowance for credit losses of $47 and $18 respectively 12,506 6,408
VAT receivable 3,851 2,926
Inventories, net 75,281 125,022
Assets held for sale 629 0
Related party asset 959 638
Prepaid expenses and other current assets 7,355 4,867
Total current assets 145,031 180,421
Property, plant and equipment, net 30,107 31,258
Railcars available for lease, net 0 2,842
Right of use asset operating lease 2,423 2,826
Right of use asset finance lease 45,081 40,277
Other long-term assets 1,574 1,835
Total assets 224,216 259,459
Current liabilities    
Accounts and contractual payables 49,574 84,417
Related party accounts payable 2,693 2,478
Accrued payroll and other employee costs 6,286 5,738
Accrued warranty 2,389 1,602
Deferred revenue 8,556 5,686
Current portion of long-term debt 2,875 29,415
Lease liability finance lease, current 1,256 1,378
Other current liabilities 7,196 6,647
Total current liabilities 80,825 137,361
Long-term debt, net of current portion 105,540 0
Warrant liability 136,319 36,801
Accrued pension costs 1,073 1,046
Lease liability operating lease, long-term 2,645 3,164
Lease liability finance lease, long-term 46,678 41,273
Other long-term liabilities 1,409 2,562
Total liabilities 374,489 222,207
Commitments and contingencies
Series C Preferred stock, $0.01 par value, 85,412 shares authorized, 0 and 85,412 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively. Liquidation value $0 and $95,048 as of December 31, 2024 and December 31, 2023, respectively. 0 83,458
Stockholders' deficit    
Preferred stock, $0.01 par value, 2,500,000 shares authorized (100,000 shares each designated as Series A voting and Series B non-voting, 0 shares issued and outstanding at December 31, 2024 and December 31, 2023) 0 0
Common stock, $0.01 par value, 50,000,000 shares authorized, 18,960,608 and 17,903,437 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively 221 210
Additional paid in capital 69,404 94,067
Accumulated other comprehensive income 721 2,365
Accumulated deficit (220,619) (142,848)
Total stockholders' deficit (150,273) (46,206)
Total liabilities, mezzanine equity and stockholders' equity $ 224,216 $ 259,459
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Allowance for doubtful accounts $ 47 $ 18
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 2,500,000 2,500,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 18,960,608 17,903,437
Common stock, shares outstanding 18,960,608 17,903,437
Series A Preferred Stock [Member]    
Preferred stock, shares authorized 100,000 100,000
Series B Preferred Stock [Member]    
Preferred stock, shares authorized 100,000 100,000
Preferred stock, shares outstanding 0 0
Preferred Stock, Shares Issued 0 0
Series C Preferred Stock [Member]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 85,412 85,412
Preferred stock, shares outstanding 0 85,412
Preferred Stock, Shares Issued 0 85,412
Liquidation value $ 0 $ 95,048
v3.25.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]    
Revenues $ 559,425 $ 358,093
Cost of sales 492,383 316,330
Gross profit 67,042 41,763
Selling, general and administrative expenses 32,915 27,489
Impairment on leased railcars 0 4,091
Gain on sale of railcars available for lease 0 (622)
Loss on pension settlement 0 313
Litigation settlement (3,214) 0
Operating income 37,341 10,492
Interest expense (6,850) (15,031)
Loss on change in fair market value of Warrant Liability (99,518) (2,229)
Loss on extinguishment of debt 0 (14,880)
Other expense (952) (440)
Loss before income taxes (69,979) (22,088)
Income tax provision 5,838 1,501
Net loss $ (75,817) $ (23,589)
Net loss per common share - basic $ (3.12) $ (1.18)
Net loss per common share - diluted $ (3.12) $ (1.18)
Weighted average common shares outstanding - basic 30,726,916 28,366,457
Weighted average common shares outstanding - diluted 30,726,916 28,366,457
v3.25.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net loss $ (75,817) $ (23,589)
Other comprehensive (loss) income, net of tax:    
Loss on pension settlement 0 313
Unrealized (loss) gain on foreign currency derivatives (2,002) 606
Pension and post-retirement liability adjustments 358 424
Comprehensive loss $ (77,461) $ (22,246)
v3.25.0.1
Consolidated Statements of Mezzanine Equity and Stockholders' Deficit - USD ($)
$ in Thousands
Total
Series C Preferred Stock [Member]
Preferred Stock [Member]
Series C Preferred Stock [Member]
Common Stock [Member]
Additional Paid In Capital [Member]
Accumulated Other Comprehensive Income [Member]
Retained Deficit [Member]
Retained Deficit [Member]
Series C Preferred Stock [Member]
Balance at Dec. 31, 2022 $ (28,584)     $ 203 $ 89,104 $ 1,022 $ (118,913)  
Balance (Shares) at Dec. 31, 2022       17,223,306        
Net loss (23,589)           (23,589)  
Other comprehensive Income (1,343)         (1,343)    
Restricted stock awards       $ 4 (4)      
Restricted stock awards, shares       453,258        
Employee stock settlement (106)       (106)      
Employee stock settlement, shares       (31,888)        
Exercise of stock appreciation rights 3       3      
Stock appreciation rights classification modification 1,738       1,738      
Exercise of stock appreciation rights, shares       4,984        
Vesting of restricted stock units, shares       42,815        
Vesting of restricted stock units, value 145       145      
Stock-based compensation recognized 2,505       2,505      
Issuance of Series C preferred shares, net of issuance costs, shares     85,412          
Issuance of Series C preferred shares, net of issuance costs, value   $ (346) $ 83,458         $ (346)
Accretion of Series C preferred shares issuance costs 347              
Equity Fees 685 $ 0   $ 3 682      
Equity Fees, Shares       210,962        
Balance at Dec. 31, 2023 $ (46,206)   $ 83,458 $ 210 94,067 2,365 (142,848)  
Balance (Shares) at Dec. 31, 2023 17,903,437   85,412 17,903,437        
Net loss $ (75,817)           (75,817)  
Other comprehensive Income (1,644)         (1,644)    
Restricted stock awards       $ 8 (8)      
Restricted stock awards, shares       774,796        
Employee stock settlement (40)       (40)      
Employee stock settlement, shares       (14,615)        
Forfeiture of restricted stock awards       $ (1) 1      
Forfeiture of restricted stock awards, shares       (106,790)        
Exercise of stock appreciation rights 141     $ 4 137      
Exercise of stock appreciation rights, shares       403,780        
Stock-based compensation recognized 3,110       3,110      
Redemption of Series C preferred shares     (85,412)          
Redemption of Series C preferred shares, value     $ (85,412)          
Dividends declared on preferred shares (27,863)       (27,863)      
Accretion of Series C preferred shares issuance costs 1,954   $ 1,954       1,954  
Balance at Dec. 31, 2024 $ (150,273)     $ 221 $ 69,404 $ 721 $ (220,619)  
Balance (Shares) at Dec. 31, 2024 18,960,608     18,960,608        
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities    
Net loss $ (75,817) $ (23,589)
Adjustments to reconcile net loss to net cash flows used in operating activities:    
Depreciation and amortization 5,763 4,606
Non-cash lease expense on right-of-use assets 3,013 2,742
Loss on change in fair market value for Warrant liability 99,518 2,229
Impairment on leased railcars 0 4,091
Loss on pension settlement 0 313
Stock-based compensation recognized 3,110 1,240
Non-cash interest expense 2,266 10,116
Loss on extinguishment of debt 0 14,880
Other non-cash items, net (1,718) 138
Changes in operating assets and liabilities:    
Accounts receivable (6,098) 3,163
VAT receivable (784) 1,426
Inventories 54,962 (60,912)
Accounts and contractual payables (38,365) 39,943
Income taxes payable, net (359) 245
Lease liability (3,517) (3,150)
Other assets and liabilities 2,959 7,288
Net cash flows provided by operating activities 44,933 4,769
Cash flows from investing activities    
Purchase of property, plant and equipment (5,019) (12,722)
Proceeds from sale of railcars available for lease, net of selling costs 0 8,356
Net cash flows used in investing activities (5,019) (4,366)
Cash flows from financing activities    
Proceeds from issuance of preferred shares, net of issuance costs 0 13,254
Redemption of preferred shares (85,412) 0
Dividends paid (27,863) 0
Proceeds from issuance of long-term debt 115,000 0
Deferred financing costs (6,149) (353)
Borrowings on revolving line of credit 26,972 149,811
Repayments on revolving line of credit (56,387) (159,348)
Employee stock settlement (40) (106)
Payment for stock appreciation rights exercised 0 (6)
Financing lease payments (2,145) (1,007)
Net cash flows (used in) provided by financing activities (36,024) 2,245
Net increase in cash and cash equivalents 3,890 2,648
Cash, cash equivalents and restricted cash equivalents at beginning of year 40,560 37,912
Cash, cash equivalents and restricted cash equivalents at end of year 44,450 40,560
Supplemental cash flow information    
Interest paid 4,584 4,951
Income taxes paid 5,901 2,097
Non-cash transactions    
Change in unpaid construction in process (264) (438)
Accrued PIK interest paid through issuance of PIK Note 0 3,161
Issuance of preferred shares in exchange of term loan 0 72,688
Issuance of warrants 0 3,014
Issuance of equity fee $ 0 $ 685
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management, Strategy, and Governance
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity.

 

Overview

 

We are cognizant of the evolving risks associated with cybersecurity and recognize a material cybersecurity incident could adversely impact our financial results and condition. We further recognize the importance of maintaining processes to identify, mitigate, and manage those cybersecurity threats. No cybersecurity threats occurred during the year ended December 31, 2024 that have had, or are reasonably likely to have had, a material impact on our business strategy, results of operations, or financial condition. However, if as a result of any future attacks, our information technology systems are significantly damaged, cease to function properly or are subject to a significant cybersecurity breach, we may suffer an interruption in our ability to manage and operate our business, and our business strategy, results of operations or financial condition could be adversely affected. Such attacks, whether or not successful, could result in significant costs related to, for example, repairing or replacing our IT systems; the loss of critical data; and interruptions or delays in our ability to perform critical functions. In addition, the volume, frequency and sophistication of these threats (including through the use of artificial intelligence) continues to grow and the complexity and scale of the systems to be protected continues to increase.

 

We utilize the National Institute of Standards and Technology (“NIST”) framework with our security program to identify, mitigate, and manage cybersecurity risks. We have implemented controls and a formal security policy following this framework. This security policy functions in conjunction with other policies, such as our acceptable use policy and our mobile device policy. We also maintain a specific incident response policy and procedure document including notification and participation of key workforce personnel and external stakeholders to contain, eradicate, and recover from any security incidents.

 

The Company emphasizes the importance of security awareness to our workforce through the administration of third-party cybersecurity training and prioritizes the monitoring and prevention of unauthorized access to Company information technology (“IT”) assets such as networks, computers, mobile devices, applications, and stored information. Our internal IT team considers

cybersecurity capabilities of third-party service providers prior to engaging them and on an ongoing basis. Our key external IT vendors provide the Company with system and organizational control reports that are reviewed by our internal IT team and may reveal potential security risks.

 

A third-party managed security services provider (“MSSP”) works in tandem with our internal IT team to implement and maintain processes and procedures to detect and handle identified security incidents, including the performance of phishing simulations to evaluate our workforce’s ability to recognize malicious emails. Our MSSP team leaders have significant experience working in cybersecurity and employ a trained workforce designed to provide proactive and comprehensive cybersecurity care. Together with our MSSP, we also monitor the frequency and extent of cybersecurity threats and update our processes and procedures as necessary. On an annual basis, our internal auditors conduct penetration testing and other assessments.

 

Governance

Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee primary responsibility for oversight of our risk management programs, including processes and procedures related to cybersecurity threats and incidents. The Audit Committee oversees management’s implementation of our cybersecurity risk management program.

The Company’s cybersecurity risk management program is under the direction of our Director of IT, who reports directly to our Chief Financial Officer and has over two decades of experience in the field of information technology and security. Our Director of IT drives collective focus and central coordination of our cybersecurity risk management program internally and oversees our retained external MSSP personnel. Management reports to the Audit Committee, at least quarterly, and more frequently if needed, on the Company’s cybersecurity risk management program, including periodic assessments and tests addressing cybersecurity threats and incidents.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

We utilize the National Institute of Standards and Technology (“NIST”) framework with our security program to identify, mitigate, and manage cybersecurity risks. We have implemented controls and a formal security policy following this framework. This security policy functions in conjunction with other policies, such as our acceptable use policy and our mobile device policy. We also maintain a specific incident response policy and procedure document including notification and participation of key workforce personnel and external stakeholders to contain, eradicate, and recover from any security incidents.

Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee primary responsibility for oversight of our risk management programs, including processes and procedures related to cybersecurity threats and incidents. The Audit Committee oversees management’s implementation of our cybersecurity risk management program.

The Company’s cybersecurity risk management program is under the direction of our Director of IT, who reports directly to our Chief Financial Officer and has over two decades of experience in the field of information technology and security. Our Director of IT drives collective focus and central coordination of our cybersecurity risk management program internally and oversees our retained external MSSP personnel. Management reports to the Audit Committee, at least quarterly, and more frequently if needed, on the Company’s cybersecurity risk management program, including periodic assessments and tests addressing cybersecurity threats and incidents.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] the Audit Committee primary responsibility for oversight of our risk management programs, including processes and procedures related to cybersecurity threats and incidents
Cybersecurity Risk Role of Management [Text Block]

The Company’s cybersecurity risk management program is under the direction of our Director of IT, who reports directly to our Chief Financial Officer and has over two decades of experience in the field of information technology and security. Our Director of IT drives collective focus and central coordination of our cybersecurity risk management program internally and oversees our retained external MSSP personnel. Management reports to the Audit Committee, at least quarterly, and more frequently if needed, on the Company’s cybersecurity risk management program, including periodic assessments and tests addressing cybersecurity threats and incidents.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Director of IT drives collective focus and central coordination of our cybersecurity risk management program internally and oversees our retained external MSSP personnel
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] over two decades of experience in the field of information technology and security
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Management reports to the Audit Committee, at least quarterly, and more frequently if needed, on the Company’s cybersecurity risk management program, including periodic assessments and tests addressing cybersecurity threats and incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Description of the Business
12 Months Ended
Dec. 31, 2024
Description of the Business [Abstract]  
Description of the Business

Note 1 – Description of the Business

 

FreightCar America, Inc. (“FreightCar”) operates primarily in North America through its direct and indirect subsidiaries, and designs and manufactures a wide range of railroad freight cars, completes railcar rebody and repair services, provides railcar conversion services that repurpose idled rail assets back into revenue service, and supplies railcar parts. The Company designs and builds high-quality railcars, including boxcars, covered and open-top hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars and coal cars. The Company is headquartered in Chicago, Illinois and has facilities in the following locations: Johnstown, Pennsylvania; Qingdao, People’s Republic of China, and Castaños, Coahuila, Mexico (the “Manufacturing Facility”).

v3.25.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of FreightCar America, Inc. and all of its direct and indirect subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, useful lives of long-lived assets, warranty accruals, pension benefit assumptions, stock compensation, evaluation of property, plant and equipment for impairment and the valuation of deferred taxes. Actual results could differ from those estimates.

 

Reclassifications

 

Certain prior year amounts have been reclassified, where necessary, to conform to current year presentation.

 

Cash and Cash Equivalents

 

The Company considers all unrestricted short-term investments with maturities of three months or less when acquired to be cash equivalents. The amortized cost of cash equivalents approximate fair value because of the short maturity of these instruments.

 

The Company’s cash and cash equivalents are primarily deposited with one United States financial institution. Such deposits are in excess of federally insured limits.

 

Restricted Cash and Restricted Certificates of Deposit

 

The Company establishes restricted cash balances and restricted certificates of deposit to collateralize certain standby letters of credit with respect to purchase price payment guarantees and performance guarantees, as well as foreign currency forward contracts. The restrictions expire upon completing the Company’s related obligation.

 

Financial Instruments

 

Management estimates that all financial instruments (including cash equivalents, restricted cash and restricted certificates of deposit, accounts receivable, VAT receivable, accounts payable, accrued expenses, foreign currency derivative liability, and long-term debt) as of December 31, 2024 and 2023, have fair values that approximate their carrying values.

 

Fair Value Measurements

 

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and the placement within the fair value hierarchy levels.

 

The Company classifies the inputs to valuation techniques used to measure fair value as follows:

 

Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities.

 

Level 2 — Inputs other than quoted prices for Level 1 inputs that are either directly or indirectly observable for the asset or liability including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means.

 

Level 3 — Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.

 

Inventories

 

Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis and includes material, labor and manufacturing overhead. The Company’s inventory consists of raw materials, work in progress, and finished goods for individual customer contracts, used railcars acquired upon trade-in and railcar parts retained for sale to external parties.

 

Property, Plant and Equipment

 

Property, plant and equipment are stated at acquisition cost less accumulated depreciation. Depreciation is provided using the straight-line method over the original estimated useful lives of the assets or lease term if shorter, which are as follows:

 

Description of Assets

Life

Buildings and improvements

15-40 years

Leasehold improvements

6-19 years

Machinery and equipment

3-7 years

Software

3-7 years

 

Long-Lived Assets

 

The Company tests long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market price of an asset group, a significant adverse change in the manner or extent in which an asset group is used, a current year operating loss combined with history of operating losses, or a current expectation that, more likely than not, a long-lived asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.

 

For assets to be held and used, the Company groups a long-lived asset or assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Estimates of future cash flows used to test the recoverability of a long-lived asset group include only the future cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset group. Recoverability of the carrying value of the asset group is determined by comparing the carrying value of the asset group to total undiscounted future cash flows of the asset group. If the carrying value of the asset group is not recoverable, an impairment loss is measured based on the excess of the carrying amount of asset group over the estimated fair value of the asset group. An impairment loss for an asset group reduces only the carrying amounts of a long-lived asset or assets of the group being evaluated. There were no indicators of impairment present as of December 31, 2024. For further information, see Note 7 - Leased Railcars.

 

Income Taxes

 

For federal income tax purposes, the Company files a consolidated federal tax return. The Company also files state tax returns in states where the Company has significant sales or operations. In conformity with ASC 740, Income Taxes, the Company provides for deferred income taxes on differences between the book and tax bases of its assets and liabilities and for items that are reported for financial statement purposes in periods different from those for income tax reporting purposes. The Company’s deferred tax liability

or asset amounts are based upon the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized.

 

Management evaluates net deferred tax assets and provides a valuation allowance when it believes that it is more likely than not that some portion of these assets will not be realized. In making this determination, management evaluates both positive evidence, such as cumulative pre-tax income for previous years, the projection of future taxable income, the reversals of existing taxable temporary differences and tax planning strategies, and negative evidence, such as any recent history of losses and any projected losses. Management also considers the expiration dates of net operating loss carryforwards in the evaluation of net deferred tax assets. Management evaluates the realizability of the Company’s net deferred tax assets and assesses the valuation allowance on a quarterly basis, adjusting the amount of such allowance as necessary.

 

Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the appropriate taxing authority has completed its examination even though the statute of limitations remains open, or the statute of limitation expires. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized.

 

Product Warranties

 

Warranty terms are based on the negotiated railcar sale, rebody or conversion contract, as applicable. Warranty costs are estimated using a two-step approach. First, an engineering estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical claims experience, a cost is accrued for all products still within a warranty period for which no claims have been filed. We provide for the estimated cost of product warranties at the time revenue is recognized related to products covered by warranties and assess the adequacy of the resulting reserves on a quarterly basis.

 

Revenue Recognition

 

The following table disaggregates the Company’s revenues by major source:

 

 

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Railcar sales

 

$

539,458

 

 

$

344,595

 

Aftermarket sales

 

 

18,241

 

 

 

12,227

 

Revenues from contracts with customers

 

 

557,699

 

 

 

356,822

 

Leasing revenues(1)

 

 

1,726

 

 

 

1,271

 

Total revenues

 

$

559,425

 

 

$

358,093

 

 

(1) Includes $1,386 litigation settlement allocated to leasing revenues for the year ended December 31, 2024.

 

The Company generally recognizes revenue at a point in time as it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue is measured at the transaction price, which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised goods or services to the customer.

 

Due to the nature of its operations, the Company is subject to significant concentration of risks related to business with a few customers. Sales to the Company’s top three customers accounted for 13%, 9% and 9%, respectively, of revenues for the year ended December 31, 2024, all of which relate to the Manufacturing segment. Sales to the Company’s top three customers accounted for 19%, 16% and 15%, respectively, of revenues for the year ended December 31, 2023. Our railcar sales to customers outside the United States were $9,722 in 2024. There were no sales to customers outside the United States in 2023. As of December 31, 2024, 39% of the accounts receivable balance of $12,506 reported on the consolidated balance sheet was receivable from one customer, and 25% and 10% were receivable from a second and third customer, respectively. As of December 31, 2023, 28% of the accounts receivable balance of $6,408 reported on the consolidated balance sheet was receivable from one customer, and 19% and 17% were receivable from a second and third customer, respectively.

 

Railcar Sales

 

Performance obligations are typically completed and revenue is recognized for the sale of new and rebuilt railcars when the finished railcar is transferred to a specified railroad connection point. In certain sales contracts, revenue is recognized when a certificate of acceptance has been issued by the customer and control has been transferred to the customer. At that time, the customer directs the use of, and obtains substantially all of the remaining benefits from, the asset. When a railcar sales contract contains multiple performance obligations, the Company allocates the transaction price to the performance obligations based on the relative stand-alone selling price of the performance obligation determined at the inception of the contract based on an observable market price, expected cost plus margin or market price of similar items. The Company treats shipping costs that occur after control is transferred as fulfillment costs. Accordingly, gross revenue is recognized, and shipping cost is accrued, when control transfers to the customer. The Company does not provide discounts or rebates in the normal course of business.

 

As a practical expedient, the Company recognizes the incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred since the amortization period of the asset that the Company otherwise would have recognized is generally one year or less.

 

Aftermarket Sales

 

The Company sells forged, cast and fabricated railcar parts and supplies for all railcar types, and provides aftermarket services including safety training, railcar inspections, and preventative maintenance. Performance obligations are satisfied, and the Company recognizes revenue, as applicable, when parts are supplies are shipped to customers, and when services are performed.

 

Leasing Revenue

 

The Company recognizes operating lease revenue on railcars available for lease on a straight-line basis over the contract term. The Company recognizes revenue from the sale of railcars available for lease on a net basis as Gain (Loss) on sale of railcars available for lease since the sale represents the disposal of a long-term operating asset.

 

Contract Balances and Accounts Receivable

 

Contract assets represent the Company’s rights to consideration for performance obligations that have been satisfied but for which the terms of the contract do not permit billing at the reporting date. The Company had no contract assets as of December 31, 2024, 2023 and 2022. The Company may receive cash payments from customers in advance of the Company satisfying performance obligations under its sales contracts resulting in deferred revenue or customer deposits, which are considered contract liabilities. Deferred revenue and customer deposits are classified as either current or long-term in the consolidated balance sheet based on the timing of when the Company expects to recognize the related revenue. Deferred revenue included in current liabilities in the Company’s consolidated balance sheet as of December 31, 2024 and 2023 were $8,556 and $5,686, respectively. Deferred revenue was $219 as of January 1, 2023 and was recognized as revenue during the year ended December 31, 2023. The 2023 deferred revenue balance was recognized as revenue during the year ended December 31, 2024. Accounts receivable, net of allowance for credit losses of $126, was $9,571 as of January 1, 2023. The Company has not experienced significant historical credit losses.

 

 

Performance Obligations

 

The Company is electing not to disclose the value of the remaining unsatisfied performance obligations with a duration of one year or less as permitted by the practical expedient in ASU 2014-09, Revenue from Contracts with Customers. The Company had remaining unsatisfied performance obligations as of December 31, 2024 with expected duration of greater than one year of $81,321.

 

Loss Per Share

 

The Company computes loss per share using the two-class method, which is a loss allocation formula that determines loss per share for Common Stock and participating securities. The Company’s participating securities are its grants of restricted stock which contain non-forfeitable rights to dividends. The Company allocates earnings between both classes; however, in periods of undistributed losses, they are only allocated to common shares as the unvested restricted stockholders do not contractually participate in losses of the

Company. Basic loss per share attributable to common shareholders is computed by dividing net loss attributable to common shareholders by the weighted average common shares outstanding. Warrants issued in connection with the Company’s long-term debt were issued at a nominal exercise price and are considered outstanding at the date of issuance. The calculation of diluted earnings per share includes the effect of any dilutive equity incentive instruments. The Company uses the treasury stock method to calculate the effect of outstanding dilutive equity incentive instruments, which requires the Company to compute total proceeds as the sum of (1) the amount the employee must pay upon exercise of the award, and (2) the amount of unearned stock-based compensation costs attributed to future services. Equity incentive instruments for which the total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net income from continuing operations, and accordingly, the Company excludes them from the calculation.

 

Recent Accounting Pronouncements

 

Recently Adopted Accounting Pronouncements

 

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which improves segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within reported measures of segment profit or loss. ASU 2023-07 also requires disclosure of the title and position of the CODM, how the CODM assesses segment performance, and additional detail around other segment items. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023. We adopted this ASU effective January 1, 2024 which did not have a material impact on our consolidated financial statements. Prior year amounts have been reclassified to conform to current year presentation.

 

Recently Issued Accounting Pronouncements

 

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which addresses investor requests for more transparency around income tax information. ASU 2023-09 requires additional information within the disclosures related to income tax rate reconciliations and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 requirements will be applied prospectively with the option of retrospective application. Early adoption is permitted. Future adoption of the new standard is not expected to have a material impact on our consolidated financial statements.

 

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. ASU 2024-03 requires disclosure in the footnotes the following information at each interim and reporting period: tabular disclosure of amounts of specified natural expenses included in each relevant expense caption including, but not limited to, purchases of inventory, employee compensation, depreciation, intangible asset amortization; certain expense, gain, or loss amounts that are already required to be disclosed under US GAAP; qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of these expense categories. ASU 2024-03 applies to all public business entities and is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. ASU 2024-03 requirements will be applied prospectively with the option of retrospective application. Early adoption is permitted. Future adoption of the new standard is not expected to have a material impact on our consolidated financial statements.

 

All other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

v3.25.0.1
Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

Note 3 – Leases

 

The Company determines if an arrangement is a lease at inception of a contract. The Company’s lease portfolio includes a manufacturing site, component warehouse and corporate offices. The remaining lease terms on the Company’s leases recorded on the consolidated balance sheet are between 4.0 and 15.8 years, most of which include options to extend the lease terms. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

 

The Company took possession of additional square footage at the Manufacturing Facility in 2023 and 2024. The Manufacturing Facility lease is classified as finance lease, while substantially all other leases are classified as operating leases.

 

Operating and finance lease right of use assets are presented separately in long-term assets, the current portion of finance lease liabilities is presented separately in current liabilities, the current portion of operating lease liabilities is presented within other current liabilities, and the non-current portion of operating and finance lease liabilities are presented separately within long-term liabilities on the consolidated balance sheet.

 

Right of use assets represent the Company’s right to use an underlying asset during the lease term and the lease liabilities represent the Company’s obligation to make the lease payments arising during the lease. Right of use assets and liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company’s lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company revalued the incremental borrowing rates used in determining the present value of lease payment for the Manufacturing Facility lease as a result of the lease modifications in 2024. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease right of use asset amortization expense is recognized on a straight-line basis over the lease term, while interest expense on finance lease liabilities is recognized using the interest method.

 

The components of the lease costs were as follows:

 

 

 

 

Year Ended
 December 31, 2024

 

 

 

Year Ended
 December 31, 2023

 

Operating lease costs:

 

 

 

 

 

 

 

Fixed

 

$

634

 

 

 

$

737

 

Short-term

 

 

2,157

 

 

 

 

2,202

 

Total operating lease costs

 

$

2,791

 

 

 

$

2,939

 

Finance lease costs:

 

 

 

 

 

 

 

Amortization of leased assets

 

$

2,610

 

 

 

$

2,168

 

Interest on lease liabilities

 

 

3,061

 

 

 

 

2,759

 

Total finance lease costs

 

$

5,671

 

 

 

$

4,927

 

Total lease cost

 

$

8,462

 

 

 

$

7,866

 

 

Supplemental balance sheet information related to leases were as follows:

 

 

 

 

 

 

 

December 31, 2024

 

 

 

December 31, 2023

 

Right of use assets:

 

 

 

 

 

 

 

Right of use asset operating lease

 

$

2,423

 

 

 

$

2,826

 

Right of use asset finance lease

 

 

45,081

 

 

 

 

40,277

 

Total

 

$

47,504

 

 

 

$

43,103

 

 

 

 

 

 

 

 

 

Lease liabilities:

 

 

 

 

 

 

 

Operating lease liabilities:

 

 

 

 

 

 

 

Current

 

$

519

 

 

 

$

470

 

Long-term

 

 

2,645

 

 

 

 

3,164

 

Total operating lease liabilities

 

$

3,164

 

 

 

$

3,634

 

 

 

 

 

 

 

 

 

Finance lease liabilities:

 

 

 

 

 

 

 

Current

 

 

1,256

 

 

 

$

1,378

 

Long-term

 

 

46,678

 

 

 

 

41,273

 

Total finance lease liabilities

 

$

47,934

 

 

 

$

42,651

 

Total

 

$

51,098

 

 

 

$

46,285

 

 

 

Supplemental cash flow information is as follows:

 

 

 

 

 

 

 

Year Ended
 December 31, 2024

 

 

 

Year Ended
 December 31, 2023

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

685

 

 

 

$

992

 

Operating cash flows for finance leases

 

 

3,061

 

 

 

 

2,759

 

Financing cash flows for finance leases

 

 

2,145

 

 

 

 

1,007

 

Total

 

$

5,891

 

 

 

$

4,758

 

 

 

 

 

 

 

 

 

Right of use assets obtained in exchange for new lease obligations:

 

 

 

 

 

 

 

Operating leases

 

$

-

 

 

 

$

1,805

 

Finance leases

 

 

7,414

 

 

 

 

9,352

 

Total

 

$

7,414

 

 

 

$

11,157

 

 

The aggregate future lease payments for leases as of December 31, 2024 are as follows:

 

 

 

 

 

Operating leases

 

 

 

Finance leases

 

2025

 

$

700

 

 

 

$

4,706

 

2026

 

 

716

 

 

 

 

4,935

 

2027

 

 

732

 

 

 

 

4,935

 

2028

 

 

749

 

 

 

 

4,935

 

2029

 

 

286

 

 

 

 

4,935

 

Thereafter

 

 

520

 

 

 

 

57,569

 

Total lease payments

 

 

3,703

 

 

 

 

82,015

 

Less: interest

 

 

(539

)

 

 

 

(34,081

)

Total

 

$

3,164

 

 

 

$

47,934

 

 

Weighted average remaining lease term (years)

 

 

 

Operating leases

 

 

6.3

 

Finance leases

 

 

15.8

 

Weighted average discount rate

 

 

 

Operating leases

 

 

6.24

%

Finance leases

 

 

7.28

%

v3.25.0.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 4 – Fair Value Measurements

 

The following table sets forth by level within the ASC 820, Fair Value Measurement, fair value hierarchy the Company’s financial assets that were recorded at fair value on a recurring basis and the Company’s non-financial assets that were recorded at fair value on a non-recurring basis.

 

Recurring Fair Value Measurements

 

As of December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

136,319

 

 

$

-

 

 

$

136,319

 

Foreign currency derivative liability

 

$

-

 

 

$

1,396

 

 

$

-

 

 

$

1,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring Fair Value Measurements

 

During the Year Ended December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Assets held for sale

 

$

-

 

 

$

-

 

 

$

629

 

 

$

629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Fair Value Measurements

 

As of December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

36,801

 

 

$

-

 

 

$

36,801

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative asset

 

$

-

 

 

$

606

 

 

$

-

 

 

$

606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring Fair Value Measurements

 

During the Year Ended December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Railcars available for lease, net

 

$

-

 

 

$

-

 

 

$

2,842

 

 

$

2,842

 

 

The fair value of the Company’s Warrant (as defined in Note 12 - Warrants) liability recorded in the Company’s financial statements, determined using the quoted price of the Company’s Common Stock in an active market, exercise price ($0.01/share) and number of shares exercisable, as of December 31, 2024 and 2023, is a Level 2 measurement.

 

The fair value of the Company’s foreign currency forward contracts determined using exit prices obtained from each counterparty, which are based on currency spot and forward rates, as of December 31, 2024 in an active market, is a Level 2 measurement. See Note 8 - Derivatives.

 

The fair value of the Company's fleet of triple hopper aggregate railcars determined using a cost plus market value approach for a portion of the assets and a market-based appraisal for the remainder of the assets, as of December 31, 2023, is a Level 3 measurement. In the first quarter of 2024, the Company gained possession of these railcars. The portion of railcars intended to be sold in their current condition are classified as assets held for sale, while the remaining railcars were converted into a new car type during the year ended December 31, 2024. For further information, see Note 7 - Leased Railcars.

v3.25.0.1
Restricted Cash
12 Months Ended
Dec. 31, 2024
Restricted Cash [Abstract]  
Restricted Cash

Note 5 – Restricted Cash

The Company establishes restricted cash balances (i) when required by customer contracts, (ii) to collateralize standby letters of credit, and (iii) to collateralize foreign currency derivative contracts. The carrying value of restricted cash approximates fair value.

 

The Company’s restricted cash balances are as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Restricted cash from customer deposit

 

$

282

 

 

$

282

 

Restricted cash to collateralize standby letters of credit

 

 

300

 

 

 

103

 

Restricted cash to collateralize foreign currency derivatives

 

 

3,300

 

 

 

320

 

Total restricted cash and restricted cash equivalents

 

$

3,882

 

 

$

705

 

v3.25.0.1
Inventories
12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Inventories

Note 6 – Inventories

 

Inventories, net of reserve for excess and obsolete items, consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Raw materials

 

$

47,340

 

 

$

65,639

 

Work in process

 

 

9,323

 

 

 

31,138

 

Finished railcars

 

 

12,640

 

 

 

23,196

 

Parts inventory

 

 

5,978

 

 

 

5,049

 

Total inventories, net

 

$

75,281

 

 

$

125,022

 

 

Inventory on the Company’s consolidated balance sheets includes reserves of $1,852 and $1,594 relating to excess or slow-moving inventory for parts and raw materials as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Leased Railcars
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

Note 7 – Leased Railcars

 

The Company had no railcars available for lease as of December 31, 2024 and no depreciation expense on railcars available for lease for the year ended December 31, 2024. The value of railcars available for lease as of December 31, 2023 was $2,842 (cost of $2,842 and accumulated depreciation of zero due to the impairment taken in 2023). Depreciation expense on railcars available for lease was $332 for the year ended December 31, 2023.

 

The Company had no impairment charge for the year ended December 31, 2024. During the year ended December 31, 2023, we recognized a pre-tax non cash impairment charge of $4,091 related to our fleet of triple hopper aggregate railcars, which is reflected in the impairment on leased railcars line on our consolidated statements of operations.

 

In 2024, the Company gained possession of the final assets included in our lease fleet, our triple hopper aggregate railcars, thus terminating the lease under consideration. The portion of railcars intended to be sold in their current condition were reclassified from railcars available for lease to assets held for sale, while the remaining railcars intended to be converted into a new car type were reclassified from railcars available for lease to inventory during the first quarter of 2024. These cars were subsequently sold in 2024.

We do not have any other leased railcars subject to lease agreements with external customers as of December 31, 2024. As such, the Company does not expect any future minimum rental revenues on leases going forward.

v3.25.0.1
Derivatives
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 8 – Derivatives

 

The Company’s operations and expenditures in its normal course of business are subject to opportunities and risks related to foreign currency fluctuations. The Company utilizes foreign currency forward contracts to protect against downward currency exposure by hedging Mexican Peso denominated expenses against the risk of volatility in foreign currency exchange rates between the Mexican Peso and the United States Dollar.

During 2023 and 2024, the Company entered into forward contracts to hedge the Company’s anticipated and probable Mexican Peso denominated expenses against the foreign currency rate exposure. The contracts have terms between one and 12 months and require the Company to exchange currencies at agreed-upon rates at each settlement date. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company classifies these contracts as cash flow hedges in accordance with ASC 815, Derivatives and Hedging. The Company does not have any non-designated derivatives.

The Company assesses the assumed effectiveness of the contracts at each reporting period. The foreign currency derivatives are recorded on the balance sheet at fair value. For further information on the fair value, see Note 4 - Fair Value Measurements. The Company records unrealized gains or losses related to changes in the fair value of the forward contracts in other comprehensive income as long as the contracts are assumed to be effective. For further information on unrealized gains or losses, see Note 14 - Accumulated Other Comprehensive Income. Amounts accumulated in other comprehensive income (loss) are reclassified to the consolidated statement of operations on the same line as the items being hedged when the hedged item impacts earnings or upon determination that the contract is no longer assumed to be effective.
 

The notional amounts of outstanding foreign currency derivatives are as follows:

 

 

 

December 31,

 

 

December 31,

 

Notional Amount

 

2024

 

 

2023

 

Derivative instruments designated as hedges:

 

 

 

 

 

 

Foreign currency derivatives

 

$

8,780

 

 

$

11,562

 

 

The fair value of outstanding foreign currency derivatives designated as hedges are as follows:

 

 

December 31,

 

 

December 31,

 

Fair Value

 

2024

 

 

2023

 

Other current liabilities:

 

 

 

 

 

 

Foreign currency derivatives

 

$

1,396

 

 

$

-

 

Prepaid expenses:

 

 

 

 

 

 

Foreign currency derivatives

 

$

-

 

 

$

606

 

 

The pre-tax realized loss (gain) on foreign currency derivatives is recognized in the consolidated statements of operations as follows:

 

 

 

 

 

Amount of Loss/(Gain) Recognized

 

 

 

 

 

Year Ended
December 31,

 

 

 

Location of Realized Loss/(Gain) Recognized in the Consolidated Statements of Operations

 

2024

 

 

2023

 

Derivative instruments designated as cash flow hedges:

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

Cost of sales

 

$

525

 

 

$

(3

)

v3.25.0.1
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 9 – Property, Plant and Equipment

 

Property, plant and equipment consists of the following:

 

 

 

 

 

December 31,

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Buildings and improvements

 

 

$

242

 

 

 

$

242

 

Leasehold improvements

 

 

 

7,970

 

 

 

 

7,378

 

Machinery and equipment

 

 

 

54,158

 

 

 

 

50,152

 

Software

 

 

 

9,206

 

 

 

 

8,967

 

Construction in process

 

 

 

720

 

 

 

 

955

 

Total cost

 

 

 

72,296

 

 

 

 

67,694

 

Less: Accumulated depreciation and amortization

 

 

 

(42,189

)

 

 

 

(36,436

)

Total property, plant and equipment, net

 

 

$

30,107

 

 

 

$

31,258

 

 

Depreciation expense for the years ended December 31, 2024 and 2023 was $5,763 and $4,274, respectively.

v3.25.0.1
Product Warranties
12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
Product Warranties

Note 10 – Product Warranties

 

Warranty terms are based on the negotiated railcar sale, rebody or conversion contract, as applicable. Changes in the warranty reserve for the years ended December 31, 2024 and 2023, are as follows:

 

 

 

 

For the Year Ended December 31,

 

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the year

 

 

$

1,602

 

 

 

$

1,940

 

 

Current year provision

 

 

 

1,461

 

 

 

 

863

 

 

Reductions for payments, costs of repairs and other

 

 

 

(392

)

 

 

 

(955

)

 

Adjustments to prior warranties

 

 

 

(282

)

 

 

 

(246

)

 

Balance at the end of the period

 

 

$

2,389

 

 

 

$

1,602

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to prior warranties include changes in the warranty reserve for warranties issued in prior periods due to expiration of the warranty period, revised warranty cost estimates and other factors.

v3.25.0.1
Debt Financing and Credit Facilities
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt Financing and Credit Facilities

Note 11 – Debt Financing and Credit Facilities

 

Long-term debt consists of the following as of December 31, 2024 and 2023:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Revolving line of credit

 

 

-

 

 

 

29,415

 

Term loan

 

 

115,000

 

 

 

-

 

Total debt

 

 

115,000

 

 

 

29,415

 

Less term loan deferred financing costs

 

 

(6,585

)

 

 

-

 

Total debt, net of deferred financing costs

 

 

108,415

 

 

 

29,415

 

Less amounts due within one year

 

 

(2,875

)

 

 

(29,415

)

Long-term debt, net of current portion

 

$

105,540

 

 

$

-

 

 

 

In 2023, the Company terminated the term loan credit agreement by and between FreightCar America Leasing 1, LLC and M&T Bank, N.A., entered into in 2020 (as amended from time to time, the “Term Loan Credit Agreement”) and the revolving credit facility entered into in 2019 for the purpose of financing railcars to be leased to third parties (as amended from time to time, the “M&T Credit Agreement and Forbearance Agreement”). On May 22, 2023, the Company settled $60,178 in-full all of the principal amount of the outstanding Term Loan Credit Agreement, together with all $1,727 accrued unpaid interest, fees, penalties, and other obligations under the Term Loan Credit Agreement through the issuance of Series C Preferred Stock, resulting in a loss on extinguishment of $17,772 for the year ending December 31, 2023. On June 30, 2023, the Company terminated the M&T Credit Agreement and Forbearance Agreement, paying an aggregate of $4,480, which resulted in a gain on extinguishment of $2,892 for the year ended December 31, 2023.

 

As of December 31, 2023, the Company had $29,415 in outstanding debt and remaining availability of $10,853 under a revolving line of credit in the maximum aggregate principal amount of up to $45,000, secured by a standby letter of credit in the principal amount of $25,000 and the Company’s accounts receivable. This facility was terminated and paid in full at its maturity date on December 31, 2024.

 

On December 31, 2024, the Company entered into a term loan agreement by and among the Company, FreightCar North America, LLC and certain subsidiaries of FreightCar North America, LLC, the lenders from time to time party thereto, and Blue Torch Finance LLC, as collateral agent and administrative agent in the principal amount of $115,000 (the “Term Loan”) with a maturity date of December 31, 2028. The Term Loan contains both affirmative and negative covenants, as well as financial covenants, including covenants related to liquidity levels, assessed at any time, and quarterly leverage ratios commencing with the quarter ended March 31, 2025. Proceeds from the Term Loan were used to redeem in full the Preferred Stock (as defined below in Note 13 - Mezzanine Equity). The Company incurred $6,585 in deferred financing costs that are presented as a reduction of the long-term debt balance and amortized to interest expense over the term of the Term Loan.

 

The Term Loan bears interest at the Term SOFR rate, with a floor of 3.00% per annum, plus an applicable margin of 6.00% per annum or at a base rate, as selected by the Company as the borrower. Base rate loans, with respect to the Term Loan, bear interest at the highest of (a) 4.00% per annum, (b) the federal funds rate plus 0.50%, (c) the prime rate or (d) the Term SOFR rate plus 1.00% per annum plus an applicable margin of 5.00%. The Term Loan bears interest at 10.40% as of December 31, 2024.

 

As the Term Loan was issued on December 31, 2024, the fair value of long-term debt approximates its carrying value as of December 31, 2024.

 

Estimated annual maturities of long-term debt, including the current portion as of December 31, 2024 are as follows:

 

2025

 

$

2,875

 

2026

 

 

2,875

 

2027

 

 

2,875

 

2028

 

 

106,375

 

2029

 

 

-

 

Thereafter

 

 

-

 

 

 

$

115,000

 

 

 

On February 12, 2025 (the “ABL Effective Date”), the Company entered into a new revolving credit facility by and among the Company, FreightCar North America, LLC, certain subsidiaries of FreightCar North America, LLC, the lenders from time to time party thereto, and Bank of America, N.A., as agent for the lenders in the form of an asset backed credit facility in the maximum aggregate principal amount of $35,000 (the “ABL”), subject to borrowing base requirements and consisting of revolving loans and a sub-facility for letters of credit. The ABL has a term ending on February 12, 2030, provided that if the aggregate outstanding principal amount and related obligations under the Term Loan have not been repaid in full or prior to October 1, 2028, or refinanced with a new maturity date no earlier than May 13, 2030, the term will end on October 2, 2028.

 

Extensions of credit under the ABL are subject to availability under a borrowing base comprised of various percentages of the value of eligible inventory and accounts receivable, which also serves as collateral for borrowings under the ABL. Borrowing availability was $11,002 as of the ABL Effective Date. The ABL contains both affirmative and negative covenants, as well as certain financial covenants that are triggered if the availability drops below a certain level. These financial covenants remain in effect as long as the

availability stays below that level. Revolving loans outstanding bear interest at the Term SOFR rate plus an applicable margin ranging from 1.50% to 2.00% per annum or at a base rate plus an applicable margin ranging from 0.50% to 1.00% per annum, as selected by the Company as the borrower. Base rate loans, with respect to the ABL, bear interest at the highest of (a) the prime rate, (b) the federal funds rate plus 0.50% or (c) Term SOFR rate plus 1.00%, provided that the base rate may not be less than 1.00%.

v3.25.0.1
Warrants
12 Months Ended
Dec. 31, 2024
Warrants and Rights Note Disclosure [Abstract]  
Warrant

Note 12 – Warrants

 

The Company issued warrants to OC III LFE II LP (“OC III LFE”) and various affiliates of OC III LFE (collectively, the “Warrantholder”) in previous years to purchase a number of shares of Common Stock equal to 23% (the “2020 Warrant”), 5% (the “2021 Warrant”), and 5% (the “2022 Warrant”) of the outstanding Common Stock (after giving effect to such issuance) on a fully-diluted basis at the time the warrants are exercised. The 2020 Warrant, 2021 Warrant, and 2022 Warrant each have a per share exercise price of $0.01 and a term of ten (10) years from date of issuance.

The 2020 Warrant, issued in November 2020, was exercisable for an aggregate of 9,626,968 and 8,712,618 shares of Common Stock as of December 31, 2024 and December 31, 2023, respectively. The 2021 Warrant, issued in December 2021, was exercisable for an aggregate of 2,092,819 and 1,894,047 shares of Common Stock as of December 31, 2024 and December 31, 2023, respectively. The 2022 Warrant, issued in April 2022, was exercisable for an aggregate of 2,092,819 and 1,894,047 shares of Common Stock as of December 31, 2024 and December 31, 2023, respectively. The Company also issued a warrant to the Warrantholder in May 2023 to purchase an aggregate of 1,636,313 shares of Common Stock (the “2023 Warrant”), exercisable for a term of ten (10) years from date of issuance with a per share exercise price of $3.57.

The 2020 Warrant, 2021 Warrant, 2022 Warrant and 2023 Warrant are collectively referred to herein as the “Warrant”. As of December 31, 2024, the Warrant is classified as a liability and subject to fair value remeasurement at each balance sheet date. The fair value of the Warrant as of December 31, 2024 and December 31, 2023 was $136,319 and $36,801, respectively. The change in fair value of the Warrant is reported on a separate line in the condensed consolidated statements of operations.

v3.25.0.1
Mezzanine Equity and 2023 Warrant
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Mezzanine Equity and 2023 Warrant

Note 13 – Mezzanine Equity

 

In May 2023, the Company issued to OC III LFE 85,412 shares of non-convertible Series C Preferred Stock, $0.01 par value per share, with an initial stated and fair value of $85,412 or $1,000 per share (the “Preferred Stock”). As of December 31, 2023, 85,412 shares of the Preferred Stock were issued and outstanding. The Company classified the Preferred Stock as mezzanine equity (temporary equity outside of permanent equity) because a deemed liquidation event following a change of control may have required redemption of the Preferred Stock that was not solely within the control of the Company. Dividends were cumulative and accrued at a rate of 17.50% per annum on the initial stated value of the Preferred Stock. Issuance costs of $2,301 were allocated against the outstanding shares of the Preferred Stock upon issuance and amortized using the effective yield method.

 

On December 31, 2024, the Company used the proceeds from the Term Loan to redeem all outstanding shares of Preferred Stock. The Preferred Stock was redeemed at $1,000 per share, for a total redemption price of $113,275, including accrued dividends of $27,863. See Note 11 - Debt Financing and Credit Facilities. As a result of this transaction, there were no Preferred Stock shares issued or outstanding as of December 31, 2024. The Company accelerated any unamortized issuance costs upon redemption, recognizing discount amortization of $1,954 and $347 during the years ended December 31, 2024 and 2023, respectively.

v3.25.0.1
Accumulated Other Comprehensive Loss
12 Months Ended
Dec. 31, 2024
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss

Note 14 – Accumulated Other Comprehensive Income

 

The changes in accumulated other comprehensive income consist of the following:

 

Year ended December 31, 2024

 

Pre-Tax

 

 

Tax

 

 

After-Tax

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

358

 

 

$

-

 

 

$

358

 

Foreign currency derivative liability activity:

 

 

 

 

 

 

 

 

 

Unrealized loss on foreign currency derivatives

 

$

(2,002

)

 

$

-

 

 

$

(2,002

)

 

 

$

(1,644

)

 

$

-

 

 

$

(1,644

)

 

 

Year ended December 31, 2023

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Loss on pension settlement

 

$

313

 

 

$

-

 

 

$

313

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

 

424

 

 

 

-

 

 

 

424

 

 

 

$

737

 

 

$

-

 

 

$

737

 

Foreign currency derivative asset activity:

 

 

 

 

 

 

 

 

 

Unrealized gain on foreign currency derivatives

 

$

606

 

 

$

-

 

 

$

606

 

 

 

$

1,343

 

 

$

-

 

 

$

1,343

 

 

The components of accumulated other comprehensive income consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

2024

 

 

2023

 

Unrecognized pension income, net of tax of $6,282 and $6,282, respectively

 

$

2,117

 

 

$

1,759

 

Unrealized (loss) gain on foreign currency derivatives

 

 

(1,396

)

 

 

606

 

 

 

$

721

 

 

$

2,365

 

v3.25.0.1
Employee Benefit Plans
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans

Note 15 – Employee Benefit Plans

 

The Company has a qualified, defined benefit pension plan (the “Plan”) that was established to provide benefits to certain employees. The Plan is frozen and participants are no longer accruing benefits. Generally, contributions to the Plan are not less than the minimum amounts required under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and not more than the maximum amount that can be deducted for federal income tax purposes. The Plan assets are held by an independent trustee and consist primarily of equity and fixed income securities.

 

The Company has elected to utilize a full yield curve approach in estimating the interest component for pension benefits by applying the specific spot rates along the yield curve used in determining the benefit obligation to the relevant projected cash flows.

 

The changes in benefit obligation, change in plan assets and funded status as of December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Change in benefit obligation

 

 

 

 

 

 

 

 

Benefit obligation  Beginning of year

 

 

$

11,393

 

 

 

$

12,443

 

Interest cost

 

 

 

535

 

 

 

 

599

 

Actuarial gain

 

 

 

(821

)

 

 

 

(119

)

Benefits paid

 

 

 

(690

)

 

 

 

(1,530

)

Annuity purchase

 

 

 

-

 

 

 

 

-

 

Benefit obligation  End of year

 

 

 

10,417

 

 

 

 

11,393

 

Change in plan assets

 

 

 

 

 

 

 

 

Plan assets  Beginning of year

 

 

 

10,347

 

 

 

 

11,403

 

Return on plan assets

 

 

 

(312

)

 

 

 

474

 

Benefits paid

 

 

 

(690

)

 

 

 

(1,530

)

Plan assets at fair value  End of year

 

 

 

9,345

 

 

 

 

10,347

 

Funded status of plan  End of year

 

 

$

(1,072

)

 

 

$

(1,046

)

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Amounts recognized in the Consolidated Balance Sheets

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

(1,072

)

 

 

 

(1,046

)

Net amount recognized as of December 31

 

 

$

(1,072

)

 

 

$

(1,046

)

 

 

Amounts recognized in accumulated other comprehensive income but not yet recognized in earnings as of December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

$

4,174

 

 

 

$

4,524

 

 

Components of net periodic benefit cost for the years ended December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Components of net periodic benefit cost

 

 

 

 

 

 

 

 

Interest cost

 

$

 

535

 

 

$

 

599

 

Expected return on plan assets

 

 

 

(300

)

 

 

 

(319

)

Amortization of unrecognized net loss

 

 

 

145

 

 

 

 

150

 

Total net periodic benefit cost

 

$

 

380

 

 

$

 

430

 

 

 

 

The increase in accumulated other comprehensive income (pre-tax) for the years ended December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Net actuarial gain

 

 

$

(213

)

 

 

$

(274

)

Amortization of:

 

 

 

 

 

 

 

 

Actuarial loss from settlement

 

 

 

-

 

 

 

 

(313

)

Net actuarial loss

 

 

 

(145

)

 

 

 

(150

)

Total recognized in accumulated other comprehensive income

 

 

$

(358

)

 

 

$

(737

)

 

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2024:

 

 

 

 

Pension Benefits

 

 

 

 

 

 

2025

 

 

$

772

 

2026

 

 

 

762

 

2027

 

 

 

747

 

2028

 

 

 

771

 

2029

 

 

 

772

 

2030 through 2034

 

 

 

3,900

 

 

As of December 31, 2024, the Company expects to make contributions of approximately $7 to its pension plan in 2025 to meet its minimum funding requirements.

 

The assumptions used to determine end of year benefit obligations are shown in the following table:

 

 

 

Pension Benefits

 

 

 

2024

 

 

2023

Discount rates

 

 

5.67%

 

 

5.01%

 

 

The discount rate is determined using a yield curve model that uses yields on high quality corporate bonds (AA rated or better) to produce a single equivalent rate. The yield curve model excludes callable bonds except those with make-whole provisions, private placements and bonds with variable rates.

 

In October 2021, the Society of Actuaries issued base mortality table Pri-2012 which is split by retiree and contingent survivor tables and includes mortality improvement assumptions for United States plans, scale (MP-2021 with COVID adjustment), which reflects additional data that the Social Security Administration has released since prior assumptions (MP-2020) were developed. The Company used the base mortality table Pri-2012 projected generationally using a modified MP-2021 with Endemic COVID adjustment for purposes of measuring its pension obligations as of December 31, 2024.

 

The 2024 actuarial gain of $821 was driven by the mortality improvement scale MP-2021 with Endemic COVID adjustment to reflect anticipated slow recovery from COVID. The 2023 actuarial gain of $119 was largely the result of the change in the yield curve to Pri-2012 with MP-2021.

 

The assumptions used in the measurement of net periodic cost are shown in the following table:

 

 

 

 

Pension Benefits

 

 

 

2024

 

 

2023

Discount rate for benefit obligations

 

 

5.67%

 

 

5.01%

 

Expected return on plan assets

 

 

3.00%

 

 

3.00%

 

Rate for interest on benefit obligations

 

 

5.39%

 

 

4.91%

 

Discount rate for service cost

 

 

N/A

 

 

N/A

 

 

The Company’s pension plan’s weighted average asset allocations as of December 31, 2024 and 2023, and target allocations for 2025, by asset category, are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Target Allocation

 

 

 

 

2024

 

 

2023

 

 

2025

 

Asset Category

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

1.50

%

 

 

0

%

 

0% - 5%

 

Equity securities

 

 

 

0

%

 

 

0

%

 

0%

 

Fixed income securities

 

 

 

98.50

%

 

 

100

%

 

95%-100%

 

Real estate

 

 

 

0

%

 

 

0

%

 

0%

 

 

 

 

 

100

%

 

 

100

%

 

100%

 

 

 

The basic goal underlying the pension plan investment policy is to ensure that the assets of the plans, along with expected plan sponsor contributions, will be invested in a prudent manner to meet the obligations of the plans as those obligations come due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within the capital markets to protect asset values against adverse movements in any one market. The Company’s investment strategy balances the requirement to maximize returns using potentially higher return generating assets, such as equity securities, with the need to manage the risk of such investments with less volatile assets, such as fixed-income securities. Investment practices must comply with the requirements of ERISA and any other applicable laws and regulations. The Company, in consultation with its investment advisors, has determined a targeted allocation of invested assets by category and it works with its advisors to reasonably maintain the actual allocation of assets near the target. The long term return on assets was estimated based upon historical market performance, expectations of future market performance for debt and equity securities and the related risks of various allocations between debt and equity securities. Numerous asset classes with differing expected rates of return, return volatility and correlations are utilized to reduce risk through diversification.

 

The Company’s pension plan assets are invested in one mutual fund for each fund classification. The following table presents the fair value of pension plan assets classified under the appropriate level of the ASC 820, Fair Value Measurement, fair value hierarchy as of

December 31, 2024 and 2023. For further information on the fair value hierarchy, see Note 2 - Summary of Significant Accounting Policies.

 

   Pension Plan Assets

 

 

As of December 31, 2024

 

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

 

 

Total

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income funds

 

 

$

9,207

 

 

 

$

-

 

 

 

$

-

 

 

 

$

9,207

 

Cash and equivalents

 

 

 

138

 

 

 

 

-

 

 

 

 

-

 

 

 

 

138

 

Total

 

 

$

9,345

 

 

 

$

-

 

 

 

$

-

 

 

 

$

9,345

 

 

 

 Pension Plan Assets

 

 

As of December 31, 2023

 

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

 

 

Total

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income funds

 

 

$

10,347

 

 

 

$

-

 

 

 

$

-

 

 

 

$

10,347

 

Cash and equivalents

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Total

 

 

$

10,347

 

 

 

$

-

 

 

 

$

-

 

 

 

$

10,347

 

 

The Company offered a one-time, lump sum pay-out option, funded by the assets of the Plan, to its terminated vested participants under the Plan in 2023. As a result, the Company reduced its gross Plan liabilities by $536 and recognized a non-cash pre-tax pension settlement loss of $313 during the year ended December 31, 2023.

 

The Company also maintains qualified defined contribution plans, which provide benefits to their employees based on employee contributions and employee earnings, with discretionary contributions allowed. Expenses related to these plans were $360 and $354 for the years ended December 31, 2024 and 2023, respectively.

v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 16 - Income Taxes

 

The provision for income taxes for the periods indicated includes current and deferred components as follows:

 

 

 

 

Year Ended December 31

 

 

 

 

2024

 

 

 

2023

 

Current Tax Provision

 

 

 

 

 

 

 

 

Federal

 

$

 

567

 

 

$

 

-

 

Foreign

 

 

 

4,978

 

 

 

 

2,556

 

State

 

 

 

213

 

 

 

 

39

 

Total Current Tax Provision

 

 

 

5,758

 

 

 

 

2,595

 

Deferred Tax Provision (Benefit)

 

 

 

 

 

 

 

 

Federal

 

 

 

1

 

 

 

 

1

 

Foreign

 

 

 

77

 

 

 

 

(1,095

)

State

 

 

 

2

 

 

 

 

-

 

Total Deferred Tax Provision (Benefit)

 

 

 

80

 

 

 

 

(1,094

)

Total Tax Provision

 

$

 

5,838

 

 

$

 

1,501

 

 

The provision for income taxes for the periods indicated differs from the amounts computed by applying the federal statutory rate as follows:

 

 

 

 

 

 

Year Ended December 31

 

 

 

 

 

2024

 

 

2023

 

 

Statutory United States federal income tax rate

 

 

21.00

 

%

 

 

 

21.00

 

%

State income taxes, net of federal tax benefit

 

 

0.19

 

%

 

 

 

0.50

 

%

Valuation allowance

 

 

7.64

 

%

 

 

 

(18.50

)

%

Provision to return

 

 

(0.91

)

%

 

 

 

(0.60

)

%

Foreign rate differential

 

 

(1.74

)

%

 

 

 

(2.20

)

%

Foreign tax adjustments

 

 

0.00

 

%

 

 

 

0.00

 

%

Deferred tax adjustments

 

 

(1.77

)

%

 

 

 

0.60

 

%

Nondeductible mark-to-market adjustment

 

 

(29.86

)

%

 

 

 

(2.10

)

%

Foreign nondeductible expenses

 

 

(1.88

)

%

 

 

 

(1.40

)

%

Nondeductible expenses and other

 

 

(1.01

)

%

 

 

 

(4.10

)

%

Effective income tax rate

 

 

(8.34

)

%

 

 

 

(6.80

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes result from temporary differences in the financial and tax basis of assets and liabilities.

 

Components of deferred tax assets (liabilities) consisted of the following:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Accrued post-retirement and pension benefits

 

$

634

 

 

$

-

 

 

$

224

 

 

$

-

 

Intangible assets

 

 

-

 

 

 

(36

)

 

 

-

 

 

 

(30

)

Accrued expenses

 

 

2,099

 

 

 

-

 

 

 

2,444

 

 

 

-

 

Prepaid expenses

 

 

-

 

 

 

(1,231

)

 

 

-

 

 

 

(682

)

Inventory valuation

 

 

585

 

 

 

-

 

 

 

524

 

 

 

-

 

Property, plant and equipment and railcars on operating leases

 

 

-

 

 

 

(219

)

 

 

-

 

 

 

(598

)

Net operating loss

 

 

53,163

 

 

 

-

 

 

 

57,252

 

 

 

-

 

Interest carryforwards

 

 

8,059

 

 

 

-

 

 

 

10,103

 

 

 

 

Credit carryforwards

 

 

2,016

 

 

 

-

 

 

 

2,016

 

 

 

 

Stock-based compensation expense

 

 

2,058

 

 

 

-

 

 

 

1,782

 

 

 

-

 

Other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(977

)

Right of use asset

 

 

-

 

 

 

(14,055

)

 

 

-

 

 

 

(12,671

)

Lease liability

 

 

15,080

 

 

 

-

 

 

 

13,354

 

 

 

-

 

 

 

83,694

 

 

 

(15,541

)

 

 

87,699

 

 

 

(14,958

)

Valuation Allowance

 

 

(67,129

)

 

 

-

 

 

 

(71,640

)

 

 

-

 

Deferred tax assets (liabilities)

 

$

16,565

 

 

$

(15,541

)

 

$

16,059

 

 

$

(14,958

)

(Decrease) increase in valuation allowance

 

$

(4,511

)

 

 

 

 

$

3,759

 

 

 

 

 

 

A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has concluded that, based on evaluation of the positive and negative evidence, primarily the history of United States and China operating losses, we will not more likely than not realize the benefit of the United States and China deferred tax assets. The Company has certain pretax state net operating loss carryforwards of $212,092 which will expire between 2025 and 2043, for which a full valuation allowance has been recorded. The Company also has federal net operating loss carryforwards, tax credits, and interest carryforwards of $198,214, $2,016, and $37,821, respectively, which will begin to expire in 2032, for which a full valuation allowance also has been recorded.

 

No deferred taxes have been provided on the approximately $386 of undistributed earnings in foreign subsidiaries. These earnings are permanently reinvested and necessary for operations locally in China and Mexico.

 

The Company does not have any unrecognized tax benefit that, if recognized, would affect the Company's effective tax rate as of December 31, 2024 and 2023. The Company’s income tax provision included $0 expenses related to interest and penalties for the years ended December 31, 2024 and 2023. The Company records interest and penalties as a component of income tax expense. However, as there are no unrecognized tax benefits for the year ended 2024 and 2023, the Company has zero penalties or interest accrued as of December 31, 2024 and 2023, respectively.

 

The Company and/or its subsidiaries file income tax returns with the United States federal government and in various state and foreign jurisdictions. A summary of tax years that remain subject to examination is as follows:

 

Jurisdiction

 

 

 

 

 

Earliest Year

United States Federal

 

 

 

 

 

2021

States:

 

 

 

 

 

 

Pennsylvania

 

 

 

 

 

2004

Texas

 

 

 

 

 

2020

Illinois

 

 

 

 

 

2010

Virginia

 

 

 

 

 

2021

Colorado

 

 

 

 

 

2010

Indiana

 

 

 

 

 

2021

Nebraska

 

 

 

 

 

2016

Alabama

 

 

 

 

 

2017

Georgia

 

 

 

 

 

2021

South Carolina

 

 

 

 

 

2021

Foreign:

 

 

 

 

 

 

   China

 

 

 

 

 

2021

   Mexico

 

 

 

 

 

2021

v3.25.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock-Based Compensation

Note 17 - Stock-Based Compensation

 

The Company’s incentive compensation plan, titled “The 2022 Long Term Incentive Plan” (as amended to date, the “2022 Plan” or “Incentive Plan”) provides for the grant to eligible persons of stock options, share appreciation rights (“SAR”), restricted shares, restricted share units, performance shares, performance units, dividend equivalents and other share-based awards, referred to collectively as the awards. Time-vested stock option awards generally vest based on one to three years of service and have 10-year contractual terms. Share awards generally vest over one to three years. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined in the Incentive Plan). The Company accounts for forfeitures of stock‑based awards as incurred. The 2022 Plan will terminate as to future awards on May 12, 2032.

 

A proposal to increase the shares of Common Stock reserved for issuance under the 2022 Plan by 3,000,000 shares was approved by the Company’s Board and ratified by the stockholders on May 14, 2024. As a result, 5,804,977 shares of Common Stock have been reserved for general use issuance under the 2022 Plan, of which 3,125,031 were available for issuance as of December 31, 2024. Under the 2022 Plan, 2,132,113 shares of Common Stock have been reserved for issuance for settlement of stock appreciation rights outstanding, of which 1,791,660 were available for issuance as of December 31, 2024.

 

Stock Options

 

Time-Vested Options

 

The Company recognizes stock-based compensation expense for time-vested stock option awards based on the fair value of the award on the grant date using the Black-Scholes option valuation model. Expected life in years for time-vested stock option awards was determined using the simplified method. The Company believes that it is appropriate to use the simplified method in determining the expected life for time-vested stock options because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for time-vested stock options. Expected volatility was based on the historical volatility of the Company’s stock. The risk-free interest rate was based on the United States Treasury bond rate for the

expected life of the option. The expected dividend yield was based on the latest annualized dividend rate and the current market price of the underlying Common Stock on the date of the grant.

 

Grant date fair values of time-vested stock option awards were estimated using the Black-Scholes option valuation model with the following assumptions:

 

 

 

 

 

 

 

 

 

 

Expected

 

Risk Free

 

Grant Date

 

 

 

 

 

 

 

Expected

 

Dividend

 

Interest

 

Fair Value

 

Grant Year

 

Grant Date

 

Expected Life

 

Volatility

 

Yield

 

Rate

 

Per Award

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

1/4/2024

 

6 years

 

77.71%

 

0.00%

 

3.97%

 

$

1.94

 

2024

 

4/12/2024

 

6 years

 

77.71%

 

0.00%

 

4.53%

 

$

2.57

 

2024

 

5/1/2024

 

6 years

 

78.00%

 

0.00%

 

4.64%

 

$

2.50

 

2024

 

8/12/2024

 

6 years

 

78.00%

 

0.00%

 

3.78%

 

$

2.51

 

2024

 

10/2/2024

 

6 years

 

78.00%

 

0.00%

 

3.60%

 

$

7.64

 

2024

 

10/22/2024

 

6 years

 

78.00%

 

0.00%

 

4.04%

 

$

8.86

 

 

A summary of the Company’s time-vested stock options activity and related information as of December 31, 2024 and 2023, and changes during the years then ended, is presented below:

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Exercise

 

 

 

 

 

Exercise

 

 

 

Options

 

 

Price

 

 

Options

 

 

Price

 

 

 

Outstanding

 

 

(per share)

 

 

Outstanding

 

 

(per share)

 

Outstanding at the beginning of the year

 

 

1,330,381

 

 

$

4.33

 

 

 

898,814

 

 

$

5.12

 

Granted

 

 

829,012

 

 

 

3.07

 

 

 

503,417

 

 

 

3.20

 

Exercised

 

 

(105,839

)

 

 

4.48

 

 

 

-

 

 

 

-

 

Forfeited or expired

 

 

(173,391

)

 

 

3.96

 

 

 

(71,850

)

 

 

6.27

 

Outstanding at the end of the year

 

 

1,880,163

 

 

$

3.80

 

 

 

1,330,381

 

 

$

4.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at the end of the year

 

 

696,649

 

 

$

4.80

 

 

 

448,880

 

 

$

5.88

 

 

A summary of the Company’s time-vested stock options outstanding as of December 31, 2024 is presented below:

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Weighted-

 

 

 

 

 

 

 

 

 

Remaining

 

 

Average

 

 

 

 

 

 

 

 

 

Contractual

 

 

Exercise

 

 

Aggregate

 

 

 

Options

 

 

Term

 

 

Price

 

 

Intrinsic

 

 

 

Outstanding

 

 

(in years)

 

 

(per share)

 

 

Value

 

Options outstanding

 

 

1,880,163

 

 

 

7.9

 

 

$

3.80

 

 

$

10,029

 

Vested or expected to vest

 

 

1,880,163

 

 

 

7.9

 

 

$

3.80

 

 

$

10,029

 

Options exercisable

 

 

696,649

 

 

 

6.5

 

 

$

4.80

 

 

$

3,172

 

 

The Company issued 33,581 shares of Common Stock as a result of cashless exercise of 88,817 time-vested stock options and 17,022 shares of Common Stock as a result of cash exercise of 17,022 time-vested stock options during the year ended December 31, 2024. There were no time-vested stock options exercised during the year ended December 31, 2023. As of December 31, 2024, there was $1,599 of total unrecognized compensation expense related to time-vested stock options, which will be recognized over the average remaining requisite service period of 23 months.

 

Inducement Options

 

On June 26, 2023 (the “Grant Date”), the Company issued 300,000 inducement stock options (the “Inducement Options”) outside of the 2022 Plan to one individual. The Inducement Options were issued at an exercise price of $2.73 and have a contractual life of 10 years. Vesting of the Inducement Options is contingent on the achievement of the later of (i) the first date the closing price of one share of the Company’s Common Stock is equal to or greater than 125% of the exercise price; and (ii) the vesting of one-third of the options per year for three consecutive years after, and on each anniversary of, the Grant Date.

The Company measured the fair value of the Inducement Options as of the Grant Date using a Monte Carlo Simulation Model considering the following assumptions: trading stock price as of the Grant Date of $2.74, risk-free rate of 3.65%, volatility rate of 69.81%, and a term of 10 years. As the likelihood of achieving the market condition is factored into the Monte Carlo model, the stock-based compensation for the Inducement Options will be recognized ratably over the three-year service period. Stock-based compensation for Inducement Options was $229 for the year ended December 31, 2024. As of December 31, 2024, there was $135 of unrecognized compensation expense related to the Inducement Options, which will be recognized over the remaining requisite service period of 18 months.

 

Stock Appreciation Rights

 

During 2020 and 2021, the Company granted 1,164,464 and 1,735,500 cash settled stock appreciation rights, respectively, to certain employees. Each stock appreciation right represents the right to receive a payment measured by the increase in the fair market value of one share of the Company’s stock from the date of grant of the stock appreciation right to the date of exercise of the stock appreciation right. The cash settled stock appreciation rights were classified as liabilities upon grant. As such, the Company measures the fair value of unvested cash settled stock appreciation rights using the Black-Scholes option valuation model and remeasures the fair value of the award each reporting period until the award is vested. Effective May 11, 2023, the outstanding cash settled stock appreciation rights were amended to provide for such awards to be settled in shares of the Company’s Common Stock rather than in cash as they were initially structured, resulting in a modification of the classification of these awards from liability to equity.

 

The estimated fair value of the stock appreciation rights immediately preceding the modification was $1,738, estimated using the Black-Scholes option valuation model. Stock-based compensation for stock appreciation rights was $4 and $(1,058) for the year ended December 31, 2024 and 2023, respectively.

 

A summary of the Company’s stock appreciation rights activity and related information as of December 31, 2024 and 2023 and changes during the year is presented below:

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Exercise

 

 

 

 

 

Exercise

 

 

 

SARS

 

 

Price

 

 

SARS

 

 

Price

 

 

 

Outstanding

 

 

(per share)

 

 

Outstanding

 

 

(per share)

 

Outstanding at the beginning of the year

 

 

2,068,705

 

 

$

2.20

 

 

 

2,132,113

 

 

$

2.20

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

(415,702

)

 

 

2.33

 

 

 

(35,522

)

 

 

2.24

 

Forfeited or expired

 

 

(8,188

)

 

 

2.14

 

 

 

(27,886

)

 

 

2.20

 

Outstanding at the end of the year

 

 

1,644,815

 

 

$

2.17

 

 

 

2,068,705

 

 

$

2.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at the end of the year

 

 

1,644,815

 

 

$

2.17

 

 

 

1,564,300

 

 

$

2.15

 

 

The Company issued 39,640 shares of Common Stock as a result of cashless exercise of 115,702 cash settled stock appreciation rights and 300,000 shares of Common Stock as a result of cash exercise of 300,000 cash settled stock appreciation rights during the year ended December 31, 2024.

 

As of December 31, 2024, the Company had 1,644,815 SARS outstanding, vested or expected to vest, and exercisable with a weighted average remaining contractual term of 5.7 years, a weighted average exercise price of $2.17 per share, and an aggregate intrinsic value of $11,166.

 

Restricted Shares

 

The Company recognizes stock-based compensation for restricted stock awards over the vesting period based on the fair market value of the stock on the date of the award, calculated as the average of the high and low trading prices for the Company’s Common Stock on the award date. A summary of the Company’s non-vested restricted shares as of December 31, 2024 and 2023, and changes during the years then ended is presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Grant Date

 

 

 

 

 

Grant Date

 

 

 

 

 

 

Fair Value

 

 

 

 

 

Fair Value

 

 

 

Shares

 

 

(per share)

 

 

Shares

 

 

(per share)

 

Non-vested at the beginning of the year

 

 

857,583

 

 

$

3.44

 

 

 

689,862

 

 

$

3.20

 

Granted

 

 

774,795

 

 

 

2.98

 

 

 

453,258

 

 

 

3.06

 

Vested

 

 

(283,282

)

 

 

3.25

 

 

 

(285,537

)

 

 

2.24

 

Forfeited

 

 

(106,789

)

 

 

3.19

 

 

 

-

 

 

 

-

 

Non-vested at the end of the year

 

 

1,242,307

 

 

$

3.22

 

 

 

857,583

 

 

$

3.44

 

Expected to vest

 

 

1,242,307

 

 

$

3.44

 

 

 

857,583

 

 

$

3.44

 

 

 

 

The fair value of stock awards vested during the years ended December 31, 2024 and 2023, was $900 and $905, respectively, based on the value at vesting date. As of December 31, 2024, there was $1,628 of unrecognized compensation expense related to non-vested restricted stock awards, which will be recognized over the average remaining requisite service period of 19 months.

 

Stock-based compensation expense of $3,110 and $1,240 is included within selling, general and administrative expense for the years ended December 31, 2024 and 2023, respectively.
v3.25.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 18 - Commitments and Contingencies

The Company is involved in various litigation matters from time to time, including intellectual property litigation, and warranty and repair claims incidental to the conduct of our business. Although the Company is taking actions to vigorously contest these matters, it is not possible to determine the outcome of these matters and proceedings. The Company does not believe these actions will have a material adverse effect on our financial position, results of operations or cash flows.

v3.25.0.1
Loss Per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Loss Per Share

Note 19 – Loss Per Share

 

The net loss available to common stockholders and weighted average common shares outstanding are as follows:

 

 

 

Year Ended
December 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

Net loss

 

$

(75,817

)

 

$

(23,589

)

Accretion of financing fees

 

 

(1,954

)

 

 

(347

)

Accrued dividends on Series C Preferred Stock

 

 

(18,227

)

 

 

(9,636

)

Net loss available to common stockholders - basic

 

$

(95,998

)

 

$

(33,572

)

Net loss available to common stockholders - diluted

 

$

(95,998

)

 

$

(33,572

)

Denominator:

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

17,495,542

 

 

 

16,965,161

 

Issuance of Warrants

 

 

13,231,374

 

 

 

11,401,296

 

Weighted average common shares outstanding - basic

 

 

30,726,916

 

 

 

28,366,457

 

Weighted average common shares outstanding - diluted

 

 

30,726,916

 

 

 

28,366,457

 

 

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for Common Stock and participating securities. The Company’s participating securities are its grants of restricted stock which contain non-forfeitable rights to dividends. The Company allocates earnings between both classes; however, in periods of undistributed losses, they are only allocated to common shares as the unvested restricted stockholders do not contractually participate in losses of the Company. The Company computes basic earnings per share by dividing net income allocated to common shareholders by the weighted average number of shares outstanding during the year. Warrants issued in connection with the Company's long-term debt were issued at a nominal exercise price and are considered outstanding at the date of issuance. The 2023 Warrant was issued out-of-the money and the Company will apply the treasury stock method to this warrant when computing earnings per share. Diluted earnings per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the year. Weighted average diluted common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and the assumed vesting of non-vested share awards. For the years ended December 31, 2024 and 2023, 2,029,134 and 3,771,495 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive.

v3.25.0.1
Segment Information
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 20 – Segment Information

 

The Company’s operations consist of two operating and reportable segments, Manufacturing and Aftermarket. The Company identifies reportable segments based on differences in products and services. The Company’s Manufacturing segment includes new railcar manufacturing, used railcar sales, and major railcar conversions and rebodies. The Company’s Aftermarket segment includes the selling of forged, cast and fabricated railcar parts and supplies for all railcar types, and provides aftermarket services including safety training, railcar inspections, and preventative maintenance.

The Company’s designated Chief Operating Decision Maker (“CODM”) is our President and Chief Executive Officer. The CODM uses segment gross profit and segment operating income to allocate resources to segments during the planning and forecasting process and assess performance in a given period. Segment gross profit and segment operating income include all external revenues attributable to the segments as well as operating costs and income that management believes are directly attributable to the current production of goods and services. The Company’s management reporting package does not include interest revenue, interest expense or income taxes allocated to individual segments and these items are not considered as a component of segment operating income. Intersegment revenues were not material in any period presented.

 

A summary of segment information and reconciliation to consolidated loss before income taxes is as follows:

 

 

 

Year Ended

 

 

 

December 31, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

541,184

 

 

$

18,241

 

 

$

-

 

 

$

559,425

 

Cost of sales

 

 

482,769

 

 

 

9,614

 

 

 

-

 

 

 

492,383

 

Gross profit

 

$

58,415

 

 

$

8,627

 

 

$

-

 

 

$

67,042

 

Other segment items (1)

 

 

(1,204

)

 

 

1,455

 

 

 

29,450

 

 

 

29,701

 

Operating income (loss)

 

$

59,619

 

 

$

7,172

 

 

$

(29,450

)

 

$

37,341

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(6,850

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(99,518

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(952

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(69,979

)

 

(1) Other segment items in Manufacturing segment include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket segment and Corporate include selling, general and administrative expenses.

 

 

 

Year Ended

 

 

 

December 31, 2023

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

345,866

 

 

$

12,227

 

 

$

-

 

 

$

358,093

 

Cost of sales

 

 

308,711

 

 

 

7,619

 

 

 

-

 

 

 

316,330

 

Gross profit

 

$

37,155

 

 

$

4,608

 

 

$

-

 

 

$

41,763

 

Other segment items (2)

 

 

5,600

 

 

 

729

 

 

 

24,942

 

 

 

31,271

 

Operating income (loss)

 

$

31,555

 

 

$

3,879

 

 

$

(24,942

)

 

$

10,492

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(15,031

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(2,229

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(14,880

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(440

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(22,088

)

 

(2) Other segment items in Manufacturing segment include selling, general and administrative expenses, impairment on leased railcars and gain on sale of railcars available for lease. Other segment items in Aftermarket segment include selling, general and administrative expenses. Other segment items in Corporate include selling, general and administrative expenses and pension settlement loss.

 

A summary of segment depreciation, amortization and capital expenditures is as follows:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Depreciation and amortization:

 

 

 

 

 

 

Manufacturing

 

$

5,292

 

 

$

4,026

 

Aftermarket

 

$

158

 

 

$

283

 

Corporate

 

 

313

 

 

 

297

 

Consolidated depreciation and amortization

 

$

5,763

 

 

$

4,606

 

Capital expenditures:

 

 

 

 

 

 

Manufacturing

 

$

4,708

 

 

$

12,536

 

Aftermarket

 

$

15

 

 

$

5

 

Corporate

 

 

296

 

 

 

181

 

Consolidated capital expenditures

 

$

5,019

 

 

$

12,722

 

 

Segment assets represent operating assets and exclude intersegment accounts, deferred tax assets and income tax receivables. The Company does not allocate cash and cash equivalents to its operating segments as the Company’s treasury function is managed at the corporate level. A summary of segment assets is as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

165,702

 

 

$

207,093

 

Aftermarket

 

 

11,014

 

 

 

9,281

 

Corporate

 

 

46,361

 

 

 

41,877

 

Total operating assets

 

 

223,077

 

 

 

258,251

 

Consolidated income taxes receivable

 

 

1,139

 

 

 

1,208

 

Consolidated assets

 

$

224,216

 

 

$

259,459

 

 

 

A summary of revenues and long-lived assets by geographic information is as follows:

 

 

Geographic Information

 

 

Revenues

 

 

Long Lived Assets (a)

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

559,425

 

 

$

358,093

 

 

$

3,856

 

 

$

7,377

 

Mexico

 

 

-

 

 

 

-

 

 

 

73,755

 

 

 

69,826

 

Total

 

$

559,425

 

 

$

358,093

 

 

$

77,611

 

 

$

77,203

 

 

(a) Long lived assets include property plant and equipment, net, railcars available for lease, and right-of-use (ROU) assets.

v3.25.0.1
Related Parties
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Parties

Note 21 – Related Parties

The following persons are owners of Fabricaciones y Servicios de México, S.A. de C.V. (“Fasemex”): Jesús Gil, a director of the Company; and Alejandro Gil and Salvador Gil, siblings of Jesús Gil. Fasemex owns approximately 10.2% of the outstanding shares of Common Stock as of December 31, 2024 and provides steel fabrication services to the Company. The lessors of the Manufacturing Facility are Jesús Gil, Alejandro Gil, and Salvador Gil. Distribuciones Industriales JAS S.A. de C.V. (“DI”) is owned by Alejandro Gil and Salvador Gil and provides material and safety supplies to the Company. Maquinaria y equipo de transporte Jova S.A. de C.V (“METJ”) is owned by Jorge Gil, a sibling of Jesús Gil, and provides trucking services to the Company. Fasemex, DI, METJ, Jesús Gil, Alejandro Gil, Salvador Gil, and Jorge Gil are collectively referred to as the “Gil Family”.

The Company paid $27,214 and $17,379 to the Gil Family during the years ended December 31, 2024 and 2023, respectively, related to steel fabrication services, rent and security deposit payments for the Manufacturing Facility, material and safety supplies, trucking services and royalty payments.

Commercial Specialty Truck Holdings, LLC (“CSTH”) is minority owned by James R. Meyer, a member of our Board, our former CEO, and beneficial owner of over 5% of our Common Stock. The Company sold specialty parts supplies in an amount equal to $885 and $121 to CSTH during the years ended December 31, 2024 and 2023, respectively.

 

Related party asset on the consolidated balance sheet of $959 as of December 31, 2024 includes other receivables of $614 from the Gil Family and $345 from CSTH. Related party accounts payable on the consolidated balance sheet of $2,693 as of December 31, 2024 is payable to the Gil Family. Related party asset on the consolidated balance sheet of $638 as of December 31, 2023 includes other receivables of $517 from the Gil Family and $121 from CSTH. Related party accounts payable on the consolidated balance sheet of $2,478 as of December 31, 2023 is payable to the Gil Family.

 

The Warrantholder beneficially owns approximately 49.40% of the Company’s common stock as of December 31, 2024. The Company paid dividends of $27,863 and a cash fee of $2,163 to the Warrantholder during the year ended December 31, 2024 upon redemption of the Preferred Shares. For further information about the redemption of the Preferred Shares, see Note 13 - Mezzanine Equity. The Company did not pay dividends to the Warrantholder during the year ended December 31, 2023.

v3.25.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of FreightCar America, Inc. and all of its direct and indirect subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, useful lives of long-lived assets, warranty accruals, pension benefit assumptions, stock compensation, evaluation of property, plant and equipment for impairment and the valuation of deferred taxes. Actual results could differ from those estimates.

Reclassifications

Reclassifications

 

Certain prior year amounts have been reclassified, where necessary, to conform to current year presentation.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

The Company considers all unrestricted short-term investments with maturities of three months or less when acquired to be cash equivalents. The amortized cost of cash equivalents approximate fair value because of the short maturity of these instruments.

 

The Company’s cash and cash equivalents are primarily deposited with one United States financial institution. Such deposits are in excess of federally insured limits.

Restricted Cash and Restricted Certificates of Deposit

Restricted Cash and Restricted Certificates of Deposit

 

The Company establishes restricted cash balances and restricted certificates of deposit to collateralize certain standby letters of credit with respect to purchase price payment guarantees and performance guarantees, as well as foreign currency forward contracts. The restrictions expire upon completing the Company’s related obligation.
Financial Instruments

Financial Instruments

 

Management estimates that all financial instruments (including cash equivalents, restricted cash and restricted certificates of deposit, accounts receivable, VAT receivable, accounts payable, accrued expenses, foreign currency derivative liability, and long-term debt) as of December 31, 2024 and 2023, have fair values that approximate their carrying values.

Fair Value Measurements

Fair Value Measurements

 

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and the placement within the fair value hierarchy levels.

 

The Company classifies the inputs to valuation techniques used to measure fair value as follows:

 

Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities.

 

Level 2 — Inputs other than quoted prices for Level 1 inputs that are either directly or indirectly observable for the asset or liability including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means.

 

Level 3 — Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.

Inventories

Inventories

 

Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis and includes material, labor and manufacturing overhead. The Company’s inventory consists of raw materials, work in progress, and finished goods for individual customer contracts, used railcars acquired upon trade-in and railcar parts retained for sale to external parties.
Property, Plant and Equipment

Property, Plant and Equipment

 

Property, plant and equipment are stated at acquisition cost less accumulated depreciation. Depreciation is provided using the straight-line method over the original estimated useful lives of the assets or lease term if shorter, which are as follows:

 

Description of Assets

Life

Buildings and improvements

15-40 years

Leasehold improvements

6-19 years

Machinery and equipment

3-7 years

Software

3-7 years

 

Long-Lived Assets

Long-Lived Assets

 

The Company tests long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These changes in circumstances may include a significant decrease in the market price of an asset group, a significant adverse change in the manner or extent in which an asset group is used, a current year operating loss combined with history of operating losses, or a current expectation that, more likely than not, a long-lived asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.

 

For assets to be held and used, the Company groups a long-lived asset or assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Estimates of future cash flows used to test the recoverability of a long-lived asset group include only the future cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset group. Recoverability of the carrying value of the asset group is determined by comparing the carrying value of the asset group to total undiscounted future cash flows of the asset group. If the carrying value of the asset group is not recoverable, an impairment loss is measured based on the excess of the carrying amount of asset group over the estimated fair value of the asset group. An impairment loss for an asset group reduces only the carrying amounts of a long-lived asset or assets of the group being evaluated. There were no indicators of impairment present as of December 31, 2024. For further information, see Note 7 - Leased Railcars.

Income Taxes

Income Taxes

 

For federal income tax purposes, the Company files a consolidated federal tax return. The Company also files state tax returns in states where the Company has significant sales or operations. In conformity with ASC 740, Income Taxes, the Company provides for deferred income taxes on differences between the book and tax bases of its assets and liabilities and for items that are reported for financial statement purposes in periods different from those for income tax reporting purposes. The Company’s deferred tax liability

or asset amounts are based upon the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized.

 

Management evaluates net deferred tax assets and provides a valuation allowance when it believes that it is more likely than not that some portion of these assets will not be realized. In making this determination, management evaluates both positive evidence, such as cumulative pre-tax income for previous years, the projection of future taxable income, the reversals of existing taxable temporary differences and tax planning strategies, and negative evidence, such as any recent history of losses and any projected losses. Management also considers the expiration dates of net operating loss carryforwards in the evaluation of net deferred tax assets. Management evaluates the realizability of the Company’s net deferred tax assets and assesses the valuation allowance on a quarterly basis, adjusting the amount of such allowance as necessary.

 

Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the appropriate taxing authority has completed its examination even though the statute of limitations remains open, or the statute of limitation expires. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized.

Product Warranties

Product Warranties

 

Warranty terms are based on the negotiated railcar sale, rebody or conversion contract, as applicable. Warranty costs are estimated using a two-step approach. First, an engineering estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical claims experience, a cost is accrued for all products still within a warranty period for which no claims have been filed. We provide for the estimated cost of product warranties at the time revenue is recognized related to products covered by warranties and assess the adequacy of the resulting reserves on a quarterly basis.

Revenue Recognition

Revenue Recognition

 

The following table disaggregates the Company’s revenues by major source:

 

 

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Railcar sales

 

$

539,458

 

 

$

344,595

 

Aftermarket sales

 

 

18,241

 

 

 

12,227

 

Revenues from contracts with customers

 

 

557,699

 

 

 

356,822

 

Leasing revenues(1)

 

 

1,726

 

 

 

1,271

 

Total revenues

 

$

559,425

 

 

$

358,093

 

 

(1) Includes $1,386 litigation settlement allocated to leasing revenues for the year ended December 31, 2024.

 

The Company generally recognizes revenue at a point in time as it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue is measured at the transaction price, which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised goods or services to the customer.

 

Due to the nature of its operations, the Company is subject to significant concentration of risks related to business with a few customers. Sales to the Company’s top three customers accounted for 13%, 9% and 9%, respectively, of revenues for the year ended December 31, 2024, all of which relate to the Manufacturing segment. Sales to the Company’s top three customers accounted for 19%, 16% and 15%, respectively, of revenues for the year ended December 31, 2023. Our railcar sales to customers outside the United States were $9,722 in 2024. There were no sales to customers outside the United States in 2023. As of December 31, 2024, 39% of the accounts receivable balance of $12,506 reported on the consolidated balance sheet was receivable from one customer, and 25% and 10% were receivable from a second and third customer, respectively. As of December 31, 2023, 28% of the accounts receivable balance of $6,408 reported on the consolidated balance sheet was receivable from one customer, and 19% and 17% were receivable from a second and third customer, respectively.

 

Railcar Sales

 

Performance obligations are typically completed and revenue is recognized for the sale of new and rebuilt railcars when the finished railcar is transferred to a specified railroad connection point. In certain sales contracts, revenue is recognized when a certificate of acceptance has been issued by the customer and control has been transferred to the customer. At that time, the customer directs the use of, and obtains substantially all of the remaining benefits from, the asset. When a railcar sales contract contains multiple performance obligations, the Company allocates the transaction price to the performance obligations based on the relative stand-alone selling price of the performance obligation determined at the inception of the contract based on an observable market price, expected cost plus margin or market price of similar items. The Company treats shipping costs that occur after control is transferred as fulfillment costs. Accordingly, gross revenue is recognized, and shipping cost is accrued, when control transfers to the customer. The Company does not provide discounts or rebates in the normal course of business.

 

As a practical expedient, the Company recognizes the incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred since the amortization period of the asset that the Company otherwise would have recognized is generally one year or less.

 

Aftermarket Sales

 

The Company sells forged, cast and fabricated railcar parts and supplies for all railcar types, and provides aftermarket services including safety training, railcar inspections, and preventative maintenance. Performance obligations are satisfied, and the Company recognizes revenue, as applicable, when parts are supplies are shipped to customers, and when services are performed.

 

Leasing Revenue

 

The Company recognizes operating lease revenue on railcars available for lease on a straight-line basis over the contract term. The Company recognizes revenue from the sale of railcars available for lease on a net basis as Gain (Loss) on sale of railcars available for lease since the sale represents the disposal of a long-term operating asset.

 

Contract Balances and Accounts Receivable

 

Contract assets represent the Company’s rights to consideration for performance obligations that have been satisfied but for which the terms of the contract do not permit billing at the reporting date. The Company had no contract assets as of December 31, 2024, 2023 and 2022. The Company may receive cash payments from customers in advance of the Company satisfying performance obligations under its sales contracts resulting in deferred revenue or customer deposits, which are considered contract liabilities. Deferred revenue and customer deposits are classified as either current or long-term in the consolidated balance sheet based on the timing of when the Company expects to recognize the related revenue. Deferred revenue included in current liabilities in the Company’s consolidated balance sheet as of December 31, 2024 and 2023 were $8,556 and $5,686, respectively. Deferred revenue was $219 as of January 1, 2023 and was recognized as revenue during the year ended December 31, 2023. The 2023 deferred revenue balance was recognized as revenue during the year ended December 31, 2024. Accounts receivable, net of allowance for credit losses of $126, was $9,571 as of January 1, 2023. The Company has not experienced significant historical credit losses.

 

 

Performance Obligations

 

The Company is electing not to disclose the value of the remaining unsatisfied performance obligations with a duration of one year or less as permitted by the practical expedient in ASU 2014-09, Revenue from Contracts with Customers. The Company had remaining unsatisfied performance obligations as of December 31, 2024 with expected duration of greater than one year of $81,321.
Loss Per Share

Loss Per Share

 

The Company computes loss per share using the two-class method, which is a loss allocation formula that determines loss per share for Common Stock and participating securities. The Company’s participating securities are its grants of restricted stock which contain non-forfeitable rights to dividends. The Company allocates earnings between both classes; however, in periods of undistributed losses, they are only allocated to common shares as the unvested restricted stockholders do not contractually participate in losses of the

Company. Basic loss per share attributable to common shareholders is computed by dividing net loss attributable to common shareholders by the weighted average common shares outstanding. Warrants issued in connection with the Company’s long-term debt were issued at a nominal exercise price and are considered outstanding at the date of issuance. The calculation of diluted earnings per share includes the effect of any dilutive equity incentive instruments. The Company uses the treasury stock method to calculate the effect of outstanding dilutive equity incentive instruments, which requires the Company to compute total proceeds as the sum of (1) the amount the employee must pay upon exercise of the award, and (2) the amount of unearned stock-based compensation costs attributed to future services. Equity incentive instruments for which the total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net income from continuing operations, and accordingly, the Company excludes them from the calculation.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

Recently Adopted Accounting Pronouncements

 

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which improves segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within reported measures of segment profit or loss. ASU 2023-07 also requires disclosure of the title and position of the CODM, how the CODM assesses segment performance, and additional detail around other segment items. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023. We adopted this ASU effective January 1, 2024 which did not have a material impact on our consolidated financial statements. Prior year amounts have been reclassified to conform to current year presentation.

 

Recently Issued Accounting Pronouncements

 

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which addresses investor requests for more transparency around income tax information. ASU 2023-09 requires additional information within the disclosures related to income tax rate reconciliations and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 requirements will be applied prospectively with the option of retrospective application. Early adoption is permitted. Future adoption of the new standard is not expected to have a material impact on our consolidated financial statements.

 

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. ASU 2024-03 requires disclosure in the footnotes the following information at each interim and reporting period: tabular disclosure of amounts of specified natural expenses included in each relevant expense caption including, but not limited to, purchases of inventory, employee compensation, depreciation, intangible asset amortization; certain expense, gain, or loss amounts that are already required to be disclosed under US GAAP; qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of these expense categories. ASU 2024-03 applies to all public business entities and is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. ASU 2024-03 requirements will be applied prospectively with the option of retrospective application. Early adoption is permitted. Future adoption of the new standard is not expected to have a material impact on our consolidated financial statements.

 

All other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

v3.25.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Useful Life of Property, Plant and Equipment

Property, plant and equipment are stated at acquisition cost less accumulated depreciation. Depreciation is provided using the straight-line method over the original estimated useful lives of the assets or lease term if shorter, which are as follows:

 

Description of Assets

Life

Buildings and improvements

15-40 years

Leasehold improvements

6-19 years

Machinery and equipment

3-7 years

Software

3-7 years

 

Schedule of Revenue Recognition

The following table disaggregates the Company’s revenues by major source:

 

 

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Railcar sales

 

$

539,458

 

 

$

344,595

 

Aftermarket sales

 

 

18,241

 

 

 

12,227

 

Revenues from contracts with customers

 

 

557,699

 

 

 

356,822

 

Leasing revenues(1)

 

 

1,726

 

 

 

1,271

 

Total revenues

 

$

559,425

 

 

$

358,093

 

 

(1) Includes $1,386 litigation settlement allocated to leasing revenues for the year ended December 31, 2024.

v3.25.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Components of Lease Cost

The components of the lease costs were as follows:

 

 

 

 

Year Ended
 December 31, 2024

 

 

 

Year Ended
 December 31, 2023

 

Operating lease costs:

 

 

 

 

 

 

 

Fixed

 

$

634

 

 

 

$

737

 

Short-term

 

 

2,157

 

 

 

 

2,202

 

Total operating lease costs

 

$

2,791

 

 

 

$

2,939

 

Finance lease costs:

 

 

 

 

 

 

 

Amortization of leased assets

 

$

2,610

 

 

 

$

2,168

 

Interest on lease liabilities

 

 

3,061

 

 

 

 

2,759

 

Total finance lease costs

 

$

5,671

 

 

 

$

4,927

 

Total lease cost

 

$

8,462

 

 

 

$

7,866

 

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases were as follows:

 

 

 

 

 

 

 

December 31, 2024

 

 

 

December 31, 2023

 

Right of use assets:

 

 

 

 

 

 

 

Right of use asset operating lease

 

$

2,423

 

 

 

$

2,826

 

Right of use asset finance lease

 

 

45,081

 

 

 

 

40,277

 

Total

 

$

47,504

 

 

 

$

43,103

 

 

 

 

 

 

 

 

 

Lease liabilities:

 

 

 

 

 

 

 

Operating lease liabilities:

 

 

 

 

 

 

 

Current

 

$

519

 

 

 

$

470

 

Long-term

 

 

2,645

 

 

 

 

3,164

 

Total operating lease liabilities

 

$

3,164

 

 

 

$

3,634

 

 

 

 

 

 

 

 

 

Finance lease liabilities:

 

 

 

 

 

 

 

Current

 

 

1,256

 

 

 

$

1,378

 

Long-term

 

 

46,678

 

 

 

 

41,273

 

Total finance lease liabilities

 

$

47,934

 

 

 

$

42,651

 

Total

 

$

51,098

 

 

 

$

46,285

 

 

Supplemental Cash Flow Information

Supplemental cash flow information is as follows:

 

 

 

 

 

 

 

Year Ended
 December 31, 2024

 

 

 

Year Ended
 December 31, 2023

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

685

 

 

 

$

992

 

Operating cash flows for finance leases

 

 

3,061

 

 

 

 

2,759

 

Financing cash flows for finance leases

 

 

2,145

 

 

 

 

1,007

 

Total

 

$

5,891

 

 

 

$

4,758

 

 

 

 

 

 

 

 

 

Right of use assets obtained in exchange for new lease obligations:

 

 

 

 

 

 

 

Operating leases

 

$

-

 

 

 

$

1,805

 

Finance leases

 

 

7,414

 

 

 

 

9,352

 

Total

 

$

7,414

 

 

 

$

11,157

 

 

Future Minimum Operating Lease Payments

The aggregate future lease payments for leases as of December 31, 2024 are as follows:

 

 

 

 

 

Operating leases

 

 

 

Finance leases

 

2025

 

$

700

 

 

 

$

4,706

 

2026

 

 

716

 

 

 

 

4,935

 

2027

 

 

732

 

 

 

 

4,935

 

2028

 

 

749

 

 

 

 

4,935

 

2029

 

 

286

 

 

 

 

4,935

 

Thereafter

 

 

520

 

 

 

 

57,569

 

Total lease payments

 

 

3,703

 

 

 

 

82,015

 

Less: interest

 

 

(539

)

 

 

 

(34,081

)

Total

 

$

3,164

 

 

 

$

47,934

 

Operating Lease Information

Weighted average remaining lease term (years)

 

 

 

Operating leases

 

 

6.3

 

Finance leases

 

 

15.8

 

Weighted average discount rate

 

 

 

Operating leases

 

 

6.24

%

Finance leases

 

 

7.28

%

v3.25.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis and Non-Recurring Basis

The following table sets forth by level within the ASC 820, Fair Value Measurement, fair value hierarchy the Company’s financial assets that were recorded at fair value on a recurring basis and the Company’s non-financial assets that were recorded at fair value on a non-recurring basis.

 

Recurring Fair Value Measurements

 

As of December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

136,319

 

 

$

-

 

 

$

136,319

 

Foreign currency derivative liability

 

$

-

 

 

$

1,396

 

 

$

-

 

 

$

1,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring Fair Value Measurements

 

During the Year Ended December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Assets held for sale

 

$

-

 

 

$

-

 

 

$

629

 

 

$

629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Fair Value Measurements

 

As of December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

36,801

 

 

$

-

 

 

$

36,801

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative asset

 

$

-

 

 

$

606

 

 

$

-

 

 

$

606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring Fair Value Measurements

 

During the Year Ended December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Railcars available for lease, net

 

$

-

 

 

$

-

 

 

$

2,842

 

 

$

2,842

 

 

v3.25.0.1
Restricted Cash (Tables)
12 Months Ended
Dec. 31, 2024
Restricted Cash [Abstract]  
Restricted Cash

The Company’s restricted cash balances are as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Restricted cash from customer deposit

 

$

282

 

 

$

282

 

Restricted cash to collateralize standby letters of credit

 

 

300

 

 

 

103

 

Restricted cash to collateralize foreign currency derivatives

 

 

3,300

 

 

 

320

 

Total restricted cash and restricted cash equivalents

 

$

3,882

 

 

$

705

 

v3.25.0.1
Inventories (Tables)
12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventory Current

Inventories, net of reserve for excess and obsolete items, consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Raw materials

 

$

47,340

 

 

$

65,639

 

Work in process

 

 

9,323

 

 

 

31,138

 

Finished railcars

 

 

12,640

 

 

 

23,196

 

Parts inventory

 

 

5,978

 

 

 

5,049

 

Total inventories, net

 

$

75,281

 

 

$

125,022

 

 

v3.25.0.1
Derivatives (Tables)
12 Months Ended
Dec. 31, 2024
Foreign Currency [Abstract]  
Schedule of Notional Amounts of Outstanding Foreign currency derivatives

The notional amounts of outstanding foreign currency derivatives are as follows:

 

 

 

December 31,

 

 

December 31,

 

Notional Amount

 

2024

 

 

2023

 

Derivative instruments designated as hedges:

 

 

 

 

 

 

Foreign currency derivatives

 

$

8,780

 

 

$

11,562

 

Schedule of fair value of outstanding foreign currency derivatives designated as hedges

The fair value of outstanding foreign currency derivatives designated as hedges are as follows:

 

 

December 31,

 

 

December 31,

 

Fair Value

 

2024

 

 

2023

 

Other current liabilities:

 

 

 

 

 

 

Foreign currency derivatives

 

$

1,396

 

 

$

-

 

Prepaid expenses:

 

 

 

 

 

 

Foreign currency derivatives

 

$

-

 

 

$

606

 

Schedule of pre-tax realized Gain on foreign currency derivatives

The pre-tax realized loss (gain) on foreign currency derivatives is recognized in the consolidated statements of operations as follows:

 

 

 

 

 

Amount of Loss/(Gain) Recognized

 

 

 

 

 

Year Ended
December 31,

 

 

 

Location of Realized Loss/(Gain) Recognized in the Consolidated Statements of Operations

 

2024

 

 

2023

 

Derivative instruments designated as cash flow hedges:

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

Cost of sales

 

$

525

 

 

$

(3

)

v3.25.0.1
Property, Plant and Equipment (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

Property, plant and equipment consists of the following:

 

 

 

 

 

December 31,

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Buildings and improvements

 

 

$

242

 

 

 

$

242

 

Leasehold improvements

 

 

 

7,970

 

 

 

 

7,378

 

Machinery and equipment

 

 

 

54,158

 

 

 

 

50,152

 

Software

 

 

 

9,206

 

 

 

 

8,967

 

Construction in process

 

 

 

720

 

 

 

 

955

 

Total cost

 

 

 

72,296

 

 

 

 

67,694

 

Less: Accumulated depreciation and amortization

 

 

 

(42,189

)

 

 

 

(36,436

)

Total property, plant and equipment, net

 

 

$

30,107

 

 

 

$

31,258

 

 

v3.25.0.1
Product Warranties (Tables)
12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
Changes in Warranty Reserve hanges in the warranty reserve for the years ended December 31, 2024 and 2023, are as follows:

 

 

 

 

For the Year Ended December 31,

 

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the year

 

 

$

1,602

 

 

 

$

1,940

 

 

Current year provision

 

 

 

1,461

 

 

 

 

863

 

 

Reductions for payments, costs of repairs and other

 

 

 

(392

)

 

 

 

(955

)

 

Adjustments to prior warranties

 

 

 

(282

)

 

 

 

(246

)

 

Balance at the end of the period

 

 

$

2,389

 

 

 

$

1,602

 

 

 

 

 

 

 

 

 

 

 

 

v3.25.0.1
Accumulated Other Comprehensive Loss (Tables)
12 Months Ended
Dec. 31, 2024
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income consist of the following:

 

Year ended December 31, 2024

 

Pre-Tax

 

 

Tax

 

 

After-Tax

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

358

 

 

$

-

 

 

$

358

 

Foreign currency derivative liability activity:

 

 

 

 

 

 

 

 

 

Unrealized loss on foreign currency derivatives

 

$

(2,002

)

 

$

-

 

 

$

(2,002

)

 

 

$

(1,644

)

 

$

-

 

 

$

(1,644

)

 

 

Year ended December 31, 2023

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Loss on pension settlement

 

$

313

 

 

$

-

 

 

$

313

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

 

424

 

 

 

-

 

 

 

424

 

 

 

$

737

 

 

$

-

 

 

$

737

 

Foreign currency derivative asset activity:

 

 

 

 

 

 

 

 

 

Unrealized gain on foreign currency derivatives

 

$

606

 

 

$

-

 

 

$

606

 

 

 

$

1,343

 

 

$

-

 

 

$

1,343

 

 

Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

2024

 

 

2023

 

Unrecognized pension income, net of tax of $6,282 and $6,282, respectively

 

$

2,117

 

 

$

1,759

 

Unrealized (loss) gain on foreign currency derivatives

 

 

(1,396

)

 

 

606

 

 

 

$

721

 

 

$

2,365

 

v3.25.0.1
Debt Financing and Credit Facilities (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long Term Debt Instruments

Long-term debt consists of the following as of December 31, 2024 and 2023:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Revolving line of credit

 

 

-

 

 

 

29,415

 

Term loan

 

 

115,000

 

 

 

-

 

Total debt

 

 

115,000

 

 

 

29,415

 

Less term loan deferred financing costs

 

 

(6,585

)

 

 

-

 

Total debt, net of deferred financing costs

 

 

108,415

 

 

 

29,415

 

Less amounts due within one year

 

 

(2,875

)

 

 

(29,415

)

Long-term debt, net of current portion

 

$

105,540

 

 

$

-

 

Schedule of Estimated annual maturities

Estimated annual maturities of long-term debt, including the current portion as of December 31, 2024 are as follows:

 

2025

 

$

2,875

 

2026

 

 

2,875

 

2027

 

 

2,875

 

2028

 

 

106,375

 

2029

 

 

-

 

Thereafter

 

 

-

 

 

 

$

115,000

 

v3.25.0.1
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Change in Plan Assets and Funded Status

The changes in benefit obligation, change in plan assets and funded status as of December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Change in benefit obligation

 

 

 

 

 

 

 

 

Benefit obligation  Beginning of year

 

 

$

11,393

 

 

 

$

12,443

 

Interest cost

 

 

 

535

 

 

 

 

599

 

Actuarial gain

 

 

 

(821

)

 

 

 

(119

)

Benefits paid

 

 

 

(690

)

 

 

 

(1,530

)

Annuity purchase

 

 

 

-

 

 

 

 

-

 

Benefit obligation  End of year

 

 

 

10,417

 

 

 

 

11,393

 

Change in plan assets

 

 

 

 

 

 

 

 

Plan assets  Beginning of year

 

 

 

10,347

 

 

 

 

11,403

 

Return on plan assets

 

 

 

(312

)

 

 

 

474

 

Benefits paid

 

 

 

(690

)

 

 

 

(1,530

)

Plan assets at fair value  End of year

 

 

 

9,345

 

 

 

 

10,347

 

Funded status of plan  End of year

 

 

$

(1,072

)

 

 

$

(1,046

)

Amounts Recognized in the Balance Sheets

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Amounts recognized in the Consolidated Balance Sheets

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

(1,072

)

 

 

 

(1,046

)

Net amount recognized as of December 31

 

 

$

(1,072

)

 

 

$

(1,046

)

 

Amounts Recognized in Accumulated Other Comprehensive Loss

Amounts recognized in accumulated other comprehensive income but not yet recognized in earnings as of December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

$

4,174

 

 

 

$

4,524

 

 

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost for the years ended December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Components of net periodic benefit cost

 

 

 

 

 

 

 

 

Interest cost

 

$

 

535

 

 

$

 

599

 

Expected return on plan assets

 

 

 

(300

)

 

 

 

(319

)

Amortization of unrecognized net loss

 

 

 

145

 

 

 

 

150

 

Total net periodic benefit cost

 

$

 

380

 

 

$

 

430

 

 

 

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The increase in accumulated other comprehensive income (pre-tax) for the years ended December 31, 2024 and 2023, are as follows:

 

 

 

 

Pension Benefits

 

 

 

 

2024

 

 

 

2023

 

Net actuarial gain

 

 

$

(213

)

 

 

$

(274

)

Amortization of:

 

 

 

 

 

 

 

 

Actuarial loss from settlement

 

 

 

-

 

 

 

 

(313

)

Net actuarial loss

 

 

 

(145

)

 

 

 

(150

)

Total recognized in accumulated other comprehensive income

 

 

$

(358

)

 

 

$

(737

)

 

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2024:

 

 

 

 

Pension Benefits

 

 

 

 

 

 

2025

 

 

$

772

 

2026

 

 

 

762

 

2027

 

 

 

747

 

2028

 

 

 

771

 

2029

 

 

 

772

 

2030 through 2034

 

 

 

3,900

 

Schedule of Assumptions Used

The assumptions used to determine end of year benefit obligations are shown in the following table:

 

 

 

Pension Benefits

 

 

 

2024

 

 

2023

Discount rates

 

 

5.67%

 

 

5.01%

 

The assumptions used in the measurement of net periodic cost are shown in the following table:

 

 

 

 

Pension Benefits

 

 

 

2024

 

 

2023

Discount rate for benefit obligations

 

 

5.67%

 

 

5.01%

 

Expected return on plan assets

 

 

3.00%

 

 

3.00%

 

Rate for interest on benefit obligations

 

 

5.39%

 

 

4.91%

 

Discount rate for service cost

 

 

N/A

 

 

N/A

 

Schedule of Allocation of Plan Assets

The Company’s pension plan’s weighted average asset allocations as of December 31, 2024 and 2023, and target allocations for 2025, by asset category, are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Target Allocation

 

 

 

 

2024

 

 

2023

 

 

2025

 

Asset Category

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

1.50

%

 

 

0

%

 

0% - 5%

 

Equity securities

 

 

 

0

%

 

 

0

%

 

0%

 

Fixed income securities

 

 

 

98.50

%

 

 

100

%

 

95%-100%

 

Real estate

 

 

 

0

%

 

 

0

%

 

0%

 

 

 

 

 

100

%

 

 

100

%

 

100%

 

 

 

Schedule of Changes in Fair Value of Plan Assets The following table presents the fair value of pension plan assets classified under the appropriate level of the ASC 820, Fair Value Measurement, fair value hierarchy as of

December 31, 2024 and 2023. For further information on the fair value hierarchy, see Note 2 - Summary of Significant Accounting Policies.

 

   Pension Plan Assets

 

 

As of December 31, 2024

 

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

 

 

Total

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income funds

 

 

$

9,207

 

 

 

$

-

 

 

 

$

-

 

 

 

$

9,207

 

Cash and equivalents

 

 

 

138

 

 

 

 

-

 

 

 

 

-

 

 

 

 

138

 

Total

 

 

$

9,345

 

 

 

$

-

 

 

 

$

-

 

 

 

$

9,345

 

 

 

 Pension Plan Assets

 

 

As of December 31, 2023

 

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

 

 

Total

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income funds

 

 

$

10,347

 

 

 

$

-

 

 

 

$

-

 

 

 

$

10,347

 

Cash and equivalents

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Total

 

 

$

10,347

 

 

 

$

-

 

 

 

$

-

 

 

 

$

10,347

 

v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Composition of Income Tax Expense

The provision for income taxes for the periods indicated includes current and deferred components as follows:

 

 

 

 

Year Ended December 31

 

 

 

 

2024

 

 

 

2023

 

Current Tax Provision

 

 

 

 

 

 

 

 

Federal

 

$

 

567

 

 

$

 

-

 

Foreign

 

 

 

4,978

 

 

 

 

2,556

 

State

 

 

 

213

 

 

 

 

39

 

Total Current Tax Provision

 

 

 

5,758

 

 

 

 

2,595

 

Deferred Tax Provision (Benefit)

 

 

 

 

 

 

 

 

Federal

 

 

 

1

 

 

 

 

1

 

Foreign

 

 

 

77

 

 

 

 

(1,095

)

State

 

 

 

2

 

 

 

 

-

 

Total Deferred Tax Provision (Benefit)

 

 

 

80

 

 

 

 

(1,094

)

Total Tax Provision

 

$

 

5,838

 

 

$

 

1,501

 

 

Reconciliation of Income Tax Rate

The provision for income taxes for the periods indicated differs from the amounts computed by applying the federal statutory rate as follows:

 

 

 

 

 

 

Year Ended December 31

 

 

 

 

 

2024

 

 

2023

 

 

Statutory United States federal income tax rate

 

 

21.00

 

%

 

 

 

21.00

 

%

State income taxes, net of federal tax benefit

 

 

0.19

 

%

 

 

 

0.50

 

%

Valuation allowance

 

 

7.64

 

%

 

 

 

(18.50

)

%

Provision to return

 

 

(0.91

)

%

 

 

 

(0.60

)

%

Foreign rate differential

 

 

(1.74

)

%

 

 

 

(2.20

)

%

Foreign tax adjustments

 

 

0.00

 

%

 

 

 

0.00

 

%

Deferred tax adjustments

 

 

(1.77

)

%

 

 

 

0.60

 

%

Nondeductible mark-to-market adjustment

 

 

(29.86

)

%

 

 

 

(2.10

)

%

Foreign nondeductible expenses

 

 

(1.88

)

%

 

 

 

(1.40

)

%

Nondeductible expenses and other

 

 

(1.01

)

%

 

 

 

(4.10

)

%

Effective income tax rate

 

 

(8.34

)

%

 

 

 

(6.80

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets (liabilities) consisted of the following:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Accrued post-retirement and pension benefits

 

$

634

 

 

$

-

 

 

$

224

 

 

$

-

 

Intangible assets

 

 

-

 

 

 

(36

)

 

 

-

 

 

 

(30

)

Accrued expenses

 

 

2,099

 

 

 

-

 

 

 

2,444

 

 

 

-

 

Prepaid expenses

 

 

-

 

 

 

(1,231

)

 

 

-

 

 

 

(682

)

Inventory valuation

 

 

585

 

 

 

-

 

 

 

524

 

 

 

-

 

Property, plant and equipment and railcars on operating leases

 

 

-

 

 

 

(219

)

 

 

-

 

 

 

(598

)

Net operating loss

 

 

53,163

 

 

 

-

 

 

 

57,252

 

 

 

-

 

Interest carryforwards

 

 

8,059

 

 

 

-

 

 

 

10,103

 

 

 

 

Credit carryforwards

 

 

2,016

 

 

 

-

 

 

 

2,016

 

 

 

 

Stock-based compensation expense

 

 

2,058

 

 

 

-

 

 

 

1,782

 

 

 

-

 

Other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(977

)

Right of use asset

 

 

-

 

 

 

(14,055

)

 

 

-

 

 

 

(12,671

)

Lease liability

 

 

15,080

 

 

 

-

 

 

 

13,354

 

 

 

-

 

 

 

83,694

 

 

 

(15,541

)

 

 

87,699

 

 

 

(14,958

)

Valuation Allowance

 

 

(67,129

)

 

 

-

 

 

 

(71,640

)

 

 

-

 

Deferred tax assets (liabilities)

 

$

16,565

 

 

$

(15,541

)

 

$

16,059

 

 

$

(14,958

)

(Decrease) increase in valuation allowance

 

$

(4,511

)

 

 

 

 

$

3,759

 

 

 

 

 

Income Tax Years Subject to Examination A summary of tax years that remain subject to examination is as follows:

 

Jurisdiction

 

 

 

 

 

Earliest Year

United States Federal

 

 

 

 

 

2021

States:

 

 

 

 

 

 

Pennsylvania

 

 

 

 

 

2004

Texas

 

 

 

 

 

2020

Illinois

 

 

 

 

 

2010

Virginia

 

 

 

 

 

2021

Colorado

 

 

 

 

 

2010

Indiana

 

 

 

 

 

2021

Nebraska

 

 

 

 

 

2016

Alabama

 

 

 

 

 

2017

Georgia

 

 

 

 

 

2021

South Carolina

 

 

 

 

 

2021

Foreign:

 

 

 

 

 

 

   China

 

 

 

 

 

2021

   Mexico

 

 

 

 

 

2021

v3.25.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Schedule of Nonvested Restricted Shares A summary of the Company’s non-vested restricted shares as of December 31, 2024 and 2023, and changes during the years then ended is presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Grant Date

 

 

 

 

 

Grant Date

 

 

 

 

 

 

Fair Value

 

 

 

 

 

Fair Value

 

 

 

Shares

 

 

(per share)

 

 

Shares

 

 

(per share)

 

Non-vested at the beginning of the year

 

 

857,583

 

 

$

3.44

 

 

 

689,862

 

 

$

3.20

 

Granted

 

 

774,795

 

 

 

2.98

 

 

 

453,258

 

 

 

3.06

 

Vested

 

 

(283,282

)

 

 

3.25

 

 

 

(285,537

)

 

 

2.24

 

Forfeited

 

 

(106,789

)

 

 

3.19

 

 

 

-

 

 

 

-

 

Non-vested at the end of the year

 

 

1,242,307

 

 

$

3.22

 

 

 

857,583

 

 

$

3.44

 

Expected to vest

 

 

1,242,307

 

 

$

3.44

 

 

 

857,583

 

 

$

3.44

 

 

 

 

Time-Vested Stock Options [Member]  
Schedule of Valuation Assumptions, Options

Grant date fair values of time-vested stock option awards were estimated using the Black-Scholes option valuation model with the following assumptions:

 

 

 

 

 

 

 

 

 

 

Expected

 

Risk Free

 

Grant Date

 

 

 

 

 

 

 

Expected

 

Dividend

 

Interest

 

Fair Value

 

Grant Year

 

Grant Date

 

Expected Life

 

Volatility

 

Yield

 

Rate

 

Per Award

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

1/4/2024

 

6 years

 

77.71%

 

0.00%

 

3.97%

 

$

1.94

 

2024

 

4/12/2024

 

6 years

 

77.71%

 

0.00%

 

4.53%

 

$

2.57

 

2024

 

5/1/2024

 

6 years

 

78.00%

 

0.00%

 

4.64%

 

$

2.50

 

2024

 

8/12/2024

 

6 years

 

78.00%

 

0.00%

 

3.78%

 

$

2.51

 

2024

 

10/2/2024

 

6 years

 

78.00%

 

0.00%

 

3.60%

 

$

7.64

 

2024

 

10/22/2024

 

6 years

 

78.00%

 

0.00%

 

4.04%

 

$

8.86

 

 

Schedule of Option Activity

A summary of the Company’s time-vested stock options activity and related information as of December 31, 2024 and 2023, and changes during the years then ended, is presented below:

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Exercise

 

 

 

 

 

Exercise

 

 

 

Options

 

 

Price

 

 

Options

 

 

Price

 

 

 

Outstanding

 

 

(per share)

 

 

Outstanding

 

 

(per share)

 

Outstanding at the beginning of the year

 

 

1,330,381

 

 

$

4.33

 

 

 

898,814

 

 

$

5.12

 

Granted

 

 

829,012

 

 

 

3.07

 

 

 

503,417

 

 

 

3.20

 

Exercised

 

 

(105,839

)

 

 

4.48

 

 

 

-

 

 

 

-

 

Forfeited or expired

 

 

(173,391

)

 

 

3.96

 

 

 

(71,850

)

 

 

6.27

 

Outstanding at the end of the year

 

 

1,880,163

 

 

$

3.80

 

 

 

1,330,381

 

 

$

4.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at the end of the year

 

 

696,649

 

 

$

4.80

 

 

 

448,880

 

 

$

5.88

 

 

Schedule of Shares Outstanding

A summary of the Company’s time-vested stock options outstanding as of December 31, 2024 is presented below:

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Weighted-

 

 

 

 

 

 

 

 

 

Remaining

 

 

Average

 

 

 

 

 

 

 

 

 

Contractual

 

 

Exercise

 

 

Aggregate

 

 

 

Options

 

 

Term

 

 

Price

 

 

Intrinsic

 

 

 

Outstanding

 

 

(in years)

 

 

(per share)

 

 

Value

 

Options outstanding

 

 

1,880,163

 

 

 

7.9

 

 

$

3.80

 

 

$

10,029

 

Vested or expected to vest

 

 

1,880,163

 

 

 

7.9

 

 

$

3.80

 

 

$

10,029

 

Options exercisable

 

 

696,649

 

 

 

6.5

 

 

$

4.80

 

 

$

3,172

 

Stock Appreciation Rights (SARs)  
Schedule of Shares Outstanding December 31, 2024, the Company had 1,644,815 SARS outstanding, vested or expected to vest, and exercisable with a weighted average remaining contractual term of 5.7 years, a weighted average exercise price of $2.17 per share, and an aggregate intrinsic value of $11,166.
Schedule of Valuation Assumptions The estimated fair value of the stock appreciation rights immediately preceding the modification was $1,738, estimated using the Black-Scholes option valuation model.
Schedule of SAR Activity

A summary of the Company’s stock appreciation rights activity and related information as of December 31, 2024 and 2023 and changes during the year is presented below:

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

 

Weighted-

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

Exercise

 

 

 

 

 

Exercise

 

 

 

SARS

 

 

Price

 

 

SARS

 

 

Price

 

 

 

Outstanding

 

 

(per share)

 

 

Outstanding

 

 

(per share)

 

Outstanding at the beginning of the year

 

 

2,068,705

 

 

$

2.20

 

 

 

2,132,113

 

 

$

2.20

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

(415,702

)

 

 

2.33

 

 

 

(35,522

)

 

 

2.24

 

Forfeited or expired

 

 

(8,188

)

 

 

2.14

 

 

 

(27,886

)

 

 

2.20

 

Outstanding at the end of the year

 

 

1,644,815

 

 

$

2.17

 

 

 

2,068,705

 

 

$

2.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at the end of the year

 

 

1,644,815

 

 

$

2.17

 

 

 

1,564,300

 

 

$

2.15

 

 

The Company issued 39,640 shares of Common Stock as a result of cashless exercise of 115,702 cash settled stock appreciation rights and 300,000 shares of Common Stock as a result of cash exercise of 300,000 cash settled stock appreciation rights during the year ended December 31, 2024.

 

As of
v3.25.0.1
Loss Per Share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Weighted Average Common Shares Outstanding

The net loss available to common stockholders and weighted average common shares outstanding are as follows:

 

 

 

Year Ended
December 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

Net loss

 

$

(75,817

)

 

$

(23,589

)

Accretion of financing fees

 

 

(1,954

)

 

 

(347

)

Accrued dividends on Series C Preferred Stock

 

 

(18,227

)

 

 

(9,636

)

Net loss available to common stockholders - basic

 

$

(95,998

)

 

$

(33,572

)

Net loss available to common stockholders - diluted

 

$

(95,998

)

 

$

(33,572

)

Denominator:

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

17,495,542

 

 

 

16,965,161

 

Issuance of Warrants

 

 

13,231,374

 

 

 

11,401,296

 

Weighted average common shares outstanding - basic

 

 

30,726,916

 

 

 

28,366,457

 

Weighted average common shares outstanding - diluted

 

 

30,726,916

 

 

 

28,366,457

 

 

v3.25.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

A summary of segment information and reconciliation to consolidated loss before income taxes is as follows:

 

 

 

Year Ended

 

 

 

December 31, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

541,184

 

 

$

18,241

 

 

$

-

 

 

$

559,425

 

Cost of sales

 

 

482,769

 

 

 

9,614

 

 

 

-

 

 

 

492,383

 

Gross profit

 

$

58,415

 

 

$

8,627

 

 

$

-

 

 

$

67,042

 

Other segment items (1)

 

 

(1,204

)

 

 

1,455

 

 

 

29,450

 

 

 

29,701

 

Operating income (loss)

 

$

59,619

 

 

$

7,172

 

 

$

(29,450

)

 

$

37,341

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(6,850

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(99,518

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(952

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(69,979

)

 

(1) Other segment items in Manufacturing segment include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket segment and Corporate include selling, general and administrative expenses.

 

 

 

Year Ended

 

 

 

December 31, 2023

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

345,866

 

 

$

12,227

 

 

$

-

 

 

$

358,093

 

Cost of sales

 

 

308,711

 

 

 

7,619

 

 

 

-

 

 

 

316,330

 

Gross profit

 

$

37,155

 

 

$

4,608

 

 

$

-

 

 

$

41,763

 

Other segment items (2)

 

 

5,600

 

 

 

729

 

 

 

24,942

 

 

 

31,271

 

Operating income (loss)

 

$

31,555

 

 

$

3,879

 

 

$

(24,942

)

 

$

10,492

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(15,031

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(2,229

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(14,880

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(440

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(22,088

)

 

(2) Other segment items in Manufacturing segment include selling, general and administrative expenses, impairment on leased railcars and gain on sale of railcars available for lease. Other segment items in Aftermarket segment include selling, general and administrative expenses. Other segment items in Corporate include selling, general and administrative expenses and pension settlement loss.

 

A summary of segment depreciation, amortization and capital expenditures is as follows:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Depreciation and amortization:

 

 

 

 

 

 

Manufacturing

 

$

5,292

 

 

$

4,026

 

Aftermarket

 

$

158

 

 

$

283

 

Corporate

 

 

313

 

 

 

297

 

Consolidated depreciation and amortization

 

$

5,763

 

 

$

4,606

 

Capital expenditures:

 

 

 

 

 

 

Manufacturing

 

$

4,708

 

 

$

12,536

 

Aftermarket

 

$

15

 

 

$

5

 

Corporate

 

 

296

 

 

 

181

 

Consolidated capital expenditures

 

$

5,019

 

 

$

12,722

 

Reconciliation of Assets From Segment to Consolidated A summary of segment assets is as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

165,702

 

 

$

207,093

 

Aftermarket

 

 

11,014

 

 

 

9,281

 

Corporate

 

 

46,361

 

 

 

41,877

 

Total operating assets

 

 

223,077

 

 

 

258,251

 

Consolidated income taxes receivable

 

 

1,139

 

 

 

1,208

 

Consolidated assets

 

$

224,216

 

 

$

259,459

 

Geographic Information

A summary of revenues and long-lived assets by geographic information is as follows:

 

 

Geographic Information

 

 

Revenues

 

 

Long Lived Assets (a)

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

559,425

 

 

$

358,093

 

 

$

3,856

 

 

$

7,377

 

Mexico

 

 

-

 

 

 

-

 

 

 

73,755

 

 

 

69,826

 

Total

 

$

559,425

 

 

$

358,093

 

 

$

77,611

 

 

$

77,203

 

 

(a) Long lived assets include property plant and equipment, net, railcars available for lease, and right-of-use (ROU) assets.

v3.25.0.1
Summary of Significant Accounting Policies (Useful Life of Property, Plant and Equipment) (Details)
Dec. 31, 2024
Minimum [Member] | Buildings and Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 15 years
Minimum [Member] | Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 6 years
Minimum [Member] | Machinery and Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Minimum [Member] | Software [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Maximum [Member] | Buildings and Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 40 years
Maximum [Member] | Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 19 years
Maximum [Member] | Machinery and Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
Maximum [Member] | Software [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
v3.25.0.1
Summary of Significant Accounting Policies (Schedule Of Revenue Recognition) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]    
Revenues from contracts with customers $ 557,699 $ 356,822
Leasing revenues [1] 1,726 1,271
Total revenues 559,425 358,093
Railcar Sales [Member]    
Disaggregation of Revenue [Line Items]    
Revenues from contracts with customers 539,458 344,595
Aftermarket Sales [Member]    
Disaggregation of Revenue [Line Items]    
Revenues from contracts with customers $ 18,241 $ 12,227
[1]

(1) Includes $1,386 litigation settlement allocated to leasing revenues for the year ended December 31, 2024.

v3.25.0.1
Summary of Significant Accounting Policies (Schedule of Revenue Recognition) (Parenthetical) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]    
Litigation settlement $ (3,214) $ 0
Leasing Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Litigation settlement $ 1,386  
v3.25.0.1
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Jan. 01, 2023
Dec. 31, 2022
Accounts Receivable, after Allowance for Credit Loss, Current $ 12,506 $ 6,408    
Revenues 559,425 358,093    
Accounts Receivable, Allowance for Credit Loss, Beginning Balance 126   $ 9,571  
Deferred revenue 8,556 5,686 $ 219  
Contract assets 0 0   $ 0
Contract liability 8,556 $ 5,686    
Performance obligation 81,321      
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customers Outside Of Us [Member]        
Revenues $ 9,722      
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member]        
Concentration Risk, Percentage 13.00% 19.00%    
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Second Largest Customer [Member]        
Concentration Risk, Percentage 9.00% 16.00%    
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Third Largest Customer [Member]        
Concentration Risk, Percentage 9.00% 15.00%    
Customer Concentration Risk [Member] | Accounts Receivable [Member]        
Accounts Receivable, after Allowance for Credit Loss, Current   $ 6,408    
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Largest Customer [Member]        
Concentration Risk, Percentage 39.00% 28.00%    
Accounts Receivable, after Allowance for Credit Loss, Current $ 12,506      
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Second Largest Customer [Member]        
Concentration Risk, Percentage 25.00% 19.00%    
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Third Largest Customer [Member]        
Concentration Risk, Percentage 10.00% 17.00%    
v3.25.0.1
Leases (Narrative) (Details)
Dec. 31, 2024
Minimum [Member]  
Leases [Line Items]  
Lease term 4 years
Maximum [Member]  
Leases [Line Items]  
Lease term 15 years 9 months 18 days
v3.25.0.1
Leases (Components of Lease Cost) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Lease, Cost [Abstract]    
Fixed $ 634 $ 737
Short-term 2,157 2,202
Total operating lease costs 2,791 2,939
Amortization of leased assets 2,610 2,168
Interest on lease liabilities 3,061 2,759
Total finance lease costs 5,671 4,927
Total lease cost $ 8,462 $ 7,866
v3.25.0.1
Leases (Supplemental Balance Sheet Information) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Right of use assets:    
Right of use asset operating lease $ 2,423 $ 2,826
Right of use asset finance lease 45,081 40,277
Total $ 47,504 $ 43,103
Operating lease liabilities:    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Operating lease liabilitie, current $ 519 $ 470
Operating Lease liability, long-term 2,645 3,164
Total operating lease costs $ 3,164 $ 3,634
Finance lease liabilities:    
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Finance lease liabilities, current $ 1,256 $ 1,378
Finance lease liabilities, long-term 46,678 41,273
Total finance lease costs 47,934 42,651
Total Lease Liabilities $ 51,098 $ 46,285
v3.25.0.1
Leases (Supplemental Cash Flow Information) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Cash Flow, Operating Activities, Lessee [Abstract]    
Operating cash flows for operating leases $ 685 $ 992
Operating cash flows for finance leases 3,061 2,759
Financing cash flows for finance leases 2,145 1,007
Total 5,891 4,758
Right of use assets obtained in exchange for new lease obligations:    
Operating leases 0 1,805
Finance leases 7,414 9,352
Total $ 7,414 $ 11,157
v3.25.0.1
Leases (Aggregate Future Operating Lease Payments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Leases [Line Items]    
2025 $ 700  
2026 716  
2027 732  
2028 749  
2029 286  
Thereafter 520  
Total lease payments 3,703  
Less: interest (539)  
Total 3,164 $ 3,634
Finance leases    
2025 4,706  
2026 4,935  
2027 4,935  
2028 4,935  
2029 4,935  
Thereafter 57,569  
Total lease payments 82,015  
Less: interest (34,081)  
Total $ 47,934 $ 42,651
v3.25.0.1
Leases (Operating Lease Information) (Details)
Dec. 31, 2024
Leases [Abstract]  
Weighted-average remaining lease term (years),Operating Lease 6 years 3 months 18 days
Weighted-average Remaining lease Term (years),Finance Lease 15 years 9 months 18 days
Weighted-average discount rate,Operating Lease 6.24%
Weighted-average discount rate,Finance Lease 7.28%
v3.25.0.1
Fair Value Measurements (Narrative) (Details) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 0.01 $ 0.01
v3.25.0.1
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis and Non-Recurring Basis) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets held for sale $ 629 $ 0
Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset   606
Warrant liability 136,319 36,801
Foreign currency derivative liability 1,396  
Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   2,842
Assets held for sale 629  
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset   0
Warrant liability 0 0
Foreign currency derivative liability 0  
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   0
Assets held for sale 0  
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset   606
Warrant liability 136,319 36,801
Foreign currency derivative liability 1,396  
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   0
Assets held for sale 0  
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset   0
Warrant liability 0 0
Foreign currency derivative liability 0  
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   $ 2,842
Assets held for sale $ 629  
v3.25.0.1
Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash and restricted cash equivalents $ 3,882 $ 705
Restricted Cash from Customer Deposit [Member]    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash and restricted cash equivalents 282 282
Restricted Cash to Collateralize Standby Letters of Credit [Member]    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash and restricted cash equivalents 300 103
Restricted Cash to Collateralize Foreign Currency Derivatives [Member]    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash and restricted cash equivalents $ 3,300 $ 320
v3.25.0.1
Inventories (Schedule of Inventory Current) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 47,340 $ 65,639
Work in process 9,323 31,138
Finished railcars 12,640 23,196
Parts inventory 5,978 5,049
Total inventories, net $ 75,281 $ 125,022
v3.25.0.1
Inventories (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Inventory valuation reserves $ 1,852 $ 1,594
v3.25.0.1
Leased Railcars (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Line Items]    
Railcars Available for Lease, net $ 0 $ 2,842
Railcars Available for Lease, cost   2,842
Railcars Available for Lease, accumulated depreciation   0
Depreciation Expense on Leased Railcars 0 332
Impairment Of Leased Railcars $ 0 4,091
Lessee, Operating Lease, Discount Rate 6.24%  
Manufacturing [Member]    
Leases [Line Items]    
Impairment Of Leased Railcars $ 0 $ 4,091
v3.25.0.1
Derivatives ( Schedule of notional amounts of outstanding foreign currency derivatives (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments Designated as Hedges [Member]    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Notional Amount $ 8,780 $ 11,562
v3.25.0.1
Derivatives ( Schedule of fair value of outstanding foreign currency derivatives designated as hedges (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Prepaid Expenses and Other Current Assets [Member]    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Fair Value $ 0 $ 606
Other Current Liabilities [Member]    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Fair Value $ 1,396 $ 0
v3.25.0.1
Derivatives ( Schedule of pre-tax realized gain on foreign currency derivatives (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Unrealized Loss/(Gain) on foreign currency derivatives, before Tax $ (2,002) $ 606
Gain (Loss) on Derivative Instruments [Member]    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Unrealized Loss/(Gain) on foreign currency derivatives, before Tax $ 525 $ (3)
v3.25.0.1
Derivatives (Additional Information) (Details)
12 Months Ended
Dec. 31, 2024
Foreign Currency [Abstract]  
Description Of Contract The contracts have terms between one and 12 months and require the Company to exchange currencies at agreed-upon rates at each settlement date.
v3.25.0.1
Restructuring and Impairment Charges (Narrative) (Details)
Dec. 31, 2024
Restructuring Cost and Reserve [Line Items]  
Lessee, Operating Lease, Discount Rate 6.24%
v3.25.0.1
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Total cost $ 72,296 $ 67,694
Less: Accumulated depreciation and amortization (42,189) (36,436)
Total property, plant and equipment, net 30,107 31,258
Buildings and Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total cost 242 242
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total cost 7,970 7,378
Machinery and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Total cost 54,158 50,152
Software [Member]    
Property, Plant and Equipment [Line Items]    
Total cost 9,206 8,967
Construction in Progress [Member]    
Property, Plant and Equipment [Line Items]    
Total cost $ 720 $ 955
v3.25.0.1
Property, Plant and Equipment (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Depreciation $ 5,763 $ 4,274
v3.25.0.1
Product Warranties (Changes in Warranty Reserve) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Product Warranties Disclosures [Abstract]    
Balance at the beginning of the year $ 1,602 $ 1,940
Current year provision 1,461 863
Reductions for payments, costs of repairs and other (392) (955)
Adjustments to prior warranties (282) (246)
Balance at the end of the year $ 2,389 $ 1,602
v3.25.0.1
Debt Financing and Credit Facilities (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 12, 2025
May 22, 2023
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Line of Credit Facility [Line Items]          
deferred financing costs     $ 6,585 $ 0  
Outstanding borrowings       29,415  
Loss on extinguishment of debt     $ 0 (14,880)  
Percentage of federal funds rate     0.50%    
Subsequent Event [Member]          
Line of Credit Facility [Line Items]          
Line of Credit Facility, Remaining Borrowing Capacity $ 11,002        
Percentage of federal funds rate 0.50%        
Base Rate [Member]          
Line of Credit Facility [Line Items]          
Additional loan interest rate     6.00%    
SOFR [Member]          
Line of Credit Facility [Line Items]          
Additional loan interest rate     5.00%    
Percentage of term loan interest     10.40%    
Percentage of federal funds rate     1.00%    
Revolving loan, interest rate     3.00%    
SOFR [Member] | Subsequent Event [Member]          
Line of Credit Facility [Line Items]          
Percentage of federal funds rate 1.00%        
M&T Credit Agreement [Member]          
Line of Credit Facility [Line Items]          
Outstanding borrowings         $ 4,480
Loss on extinguishment of debt       2,892  
Term Loan Credit Agreement [Member]          
Line of Credit Facility [Line Items]          
deferred financing costs     $ 6,585    
Agreement Maturity Date     Dec. 31, 2028    
Aggregate principal amount     $ 115,000    
Revolving Credit Facility [Member]          
Line of Credit Facility [Line Items]          
Outstanding borrowings       10,853  
Revolving Credit Facility [Member] | Subsequent Event [Member]          
Line of Credit Facility [Line Items]          
Agreement Maturity Date Feb. 12, 2030        
Maximum borrowing capacity $ 3,500        
Letter Of Credit [Member]          
Line of Credit Facility [Line Items]          
Aggregate principal amount       25,000  
Maximum [Member]          
Line of Credit Facility [Line Items]          
Aggregate principal amount       45,000  
Maximum [Member] | Subsequent Event [Member]          
Line of Credit Facility [Line Items]          
Additional loan interest rate 1.00%        
Revolving loan, interest rate 2.00%        
Maximum [Member] | Base Rate [Member]          
Line of Credit Facility [Line Items]          
Revolving loan, interest rate     4.00%    
Minimum [Member] | Subsequent Event [Member]          
Line of Credit Facility [Line Items]          
Additional loan interest rate 0.50%        
Revolving loan, interest rate 1.50%        
Minimum [Member] | Base Rate [Member] | Subsequent Event [Member]          
Line of Credit Facility [Line Items]          
Percentage of federal funds rate 1.00%        
Series C Preferred Stock [Member] | Term Loan Credit Agreement [Member]          
Line of Credit Facility [Line Items]          
Accrued unpaid interest, fees, penalties, and other obligations   $ 1,727      
Principal amount of the outstanding Term Loan Credit Agreement   $ 60,178      
Loss on extinguishment of debt       $ 17,772  
v3.25.0.1
Debt Financing and Credit Facilities (Long-Term Debt) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Total Debt $ 115,000 $ 29,415
Less term loan deferred financing costs (6,585) 0
Total debt, net of deferred financing costs 108,415 29,415
Less amounts due within one year (2,875) (29,415)
Long-term debt, net of current portion 105,540 0
Revolving line of credit    
Debt Instrument [Line Items]    
Total Debt 0 29,415
Term Loan    
Debt Instrument [Line Items]    
Total Debt 115,000 $ 0
Term Loan Credit Agreement [Member]    
Debt Instrument [Line Items]    
Less term loan deferred financing costs $ (6,585)  
v3.25.0.1
Debt Financing and Credit Facilities (Estimated Annual Maturities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]    
2025 $ 2,875  
2026 2,875  
2027 2,875  
2028 106,375  
2029 0  
Thereafter 0  
Total Debt $ 115,000 $ 29,415
v3.25.0.1
Warrants (Additional Information) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
May 31, 2023
Class of Warrant or Right [Line Items]      
Warrants and Rights Outstanding $ 136,319 $ 36,801  
Common stock, shares issued 18,960,608 17,903,437  
Two Thousand Twenty Warrant      
Class of Warrant or Right [Line Items]      
Class Of Warrant Or Right, Percentage Of Oustanding Common Shares 23.00%    
Common stock purchased, Exercise price $ 0.01    
Warrants Terms 10 years    
Common stock, shares issued 9,626,968 8,712,618  
Two Thousand Twenty One Warrant      
Class of Warrant or Right [Line Items]      
Class Of Warrant Or Right, Percentage Of Oustanding Common Shares 5.00%    
Common stock purchased, Exercise price $ 0.01    
Warrants Terms 10 years    
Common stock, shares issued 2,092,819 1,894,047  
Two Thousand Twenty Two Warrant      
Class of Warrant or Right [Line Items]      
Class Of Warrant Or Right, Percentage Of Oustanding Common Shares 5.00%    
Common stock purchased, Exercise price $ 0.01    
Warrants Terms 10 years    
Common stock, shares issued 2,092,819 1,894,047  
Two Thousand Twenty Three Warrant      
Class of Warrant or Right [Line Items]      
Common stock purchased, Exercise price $ 3.57    
Warrants Terms 10 years    
Warrants issued to purchase common stock     1,636,313
v3.25.0.1
Mezzanine Equity and 2023 Warrant (Additional Information) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
May 31, 2023
Class of Stock [Line Items]      
Preferred stock, par value $ 0.01 $ 0.01  
Preferred Stock, Redemption Price Per Share $ 1,000    
Dividends declared on preferred shares $ 27,863    
Preferred Stock, Redemption Amount $ 113,275    
Preferred Stock [Member]      
Class of Stock [Line Items]      
Preferred stock, shares issued 0    
Preferred stock, shares outstanding 0    
Amortization cost $ 1,954 $ 347  
Series C Preferred Stock [Member]      
Class of Stock [Line Items]      
Preferred stock, shares issued 0 85,412 85,412
Preferred stock, shares outstanding 0 85,412  
Preferred stock, par value $ 0.01 $ 0.01 $ 0.01
Preferred stock initial stated value     85,412
Preferred Stock Initial Fair Value Per Share     $ 1,000
Preferred stock dividend rate 17.50%    
v3.25.0.1
Accumulated Other Comprehensive Loss (Schedule of Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Total recognized in accumulated other comprehensive income $ (358) $ (737)
Other comprehensive income 1,644 1,343
Reclassification out of Accumulated Other Comprehensive Income [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Loss on pension settlement pre Tax   737
Unrealized Gain On Foreign Currency Derivatives 2,002 606
Total recognized in accumulated other comprehensive income (1,644) 1,343
Loss on pension settlement After Tax   737
Unrealized Gain (Loss), Foreign Currency Transaction, after Tax (2,002) 606
Other comprehensive income 1,644 1,343
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Pension Plan [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Loss on pension settlement pre Tax   313
Pension and postretirement liability adjustments, net of tax 358 424
Loss on pension settlement After Tax   313
Reclassification adjustment for amortization of net loss After-Tax $ 358 $ 424
v3.25.0.1
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated other comprehensive loss, net of tax $ (150,273) $ (46,206) $ (28,584)
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated other comprehensive loss, net of tax 2,117 1,759  
Unrealized (loss) gain on foreign currency derivatives (1,396) 606  
Accumulated Other Comprehensive Income $ 721 $ 2,365  
v3.25.0.1
Accumulated Other Comprehensive Loss - (Components of Accumulated Other Comprehensive Income (Loss))(Parenthetical) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Pension Plan [Member] | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, tax $ 6,282 $ 6,282
v3.25.0.1
Employee Benefit Plans (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) $ 821 $ 119
Employee Benefits and Share-Based Compensation 360,000 354,000
OneAmerica Agreement [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Line of Credit Facility, Increase (Decrease), Other, Net   536
Non cash pre tax pension settlement charge   $ 313
Pension Benefits [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Contributions to pension plan $ 7  
v3.25.0.1
Employee Benefit Plans (Change in Plan Assets and Funded Status) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Benefit Obligation, Beginning Balance $ 11,393 $ 12,443
Interest cost 535 599
Actuarial (gain) loss (821) (119)
Benefits paid (690) (1,530)
Annuity purchase 0 0
Defined Benefit Plan, Benefit Obligation, Ending Balance 10,417 11,393
Plan assets - Beginning of year 10,347 11,403
Return on plan assets (312) 474
Annuity purchase 0 0
Benefits paid (690) (1,530)
Plan assets at fair value - End of year 9,345 10,347
Funded status of plans - End of year $ (1,072) $ (1,046)
v3.25.0.1
Employee Benefit Plans (Amounts Recognized in the Balance Sheets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Noncurrent liabilities $ (1,072) $ (1,046)
Net amount recognized at December 31 $ (1,072) $ (1,046)
v3.25.0.1
Employee Benefit Plans (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Net actuarial loss (gain) $ 4,174 $ 4,524
v3.25.0.1
Employee Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Interest cost $ 535 $ 599
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Expected return on plan assets $ (300) $ (319)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Amortization of unrecognized net loss $ 145 $ 150
Total net periodic benefit cost $ 380 $ 430
v3.25.0.1
Employee Benefit Plans (Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Net actuarial gain $ (213) $ (274)
Actuarial loss from settlement 0 (313)
Net actuarial loss (145) (150)
Total recognized in accumulated other comprehensive income $ (358) $ (737)
v3.25.0.1
Employee Benefit Plans (Schedule of Expected Benefit Payments) (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Retirement Benefits [Abstract]  
2025 $ 772
2026 762
2027 747
2028 771
2029 772
2030 through 2034 $ 3,900
v3.25.0.1
Employee Benefit Plans (Schedule of Assumptions Used) (Details)
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Discount rates 5.67% 5.01%
v3.25.0.1
Employee Benefit Plans (Assumptions Used in the Measurement of Net Periodic Cost) (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Discount rate for benefit obligations 5.67% 5.01%
Expected return on plan assets 3.00% 3.00%
Rate for interest on benefit obligations 5.39% 4.91%
v3.25.0.1
Employee Benefit Plans (Schedule of Allocation of Plan Assets) (Details) - Pension Plan [Member]
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan Assets   100.00% 100.00%
Target Allocation 100.00%    
Cash and Cash Equivalents [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan Assets   1.50% 0.00%
Equity Securities [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan Assets   0.00% 0.00%
Target Allocation 0.00%    
Fixed Income Securities [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan Assets   98.50% 100.00%
Real Estate [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Plan Assets   0.00% 0.00%
Target Allocation 0.00%    
Minimum [Member] | Cash and Cash Equivalents [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Target Allocation 0.00%    
Minimum [Member] | Fixed Income Securities [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Target Allocation 95.00%    
Maximum [Member] | Cash and Cash Equivalents [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Target Allocation 5.00%    
Maximum [Member] | Fixed Income Securities [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Target Allocation 100.00%    
v3.25.0.1
Employee Benefit Plans (Schedule of Changes in Fair Value of Plan Assets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets $ 9,345 $ 10,347 $ 11,403
Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets 9,345 10,347  
Fixed Income Funds [Member] | Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets 9,207 10,347  
Cash and Cash Equivalents [Member] | Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets 138 0  
Fair Value, Inputs, Level 1 [Member] | Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets 9,345 10,347  
Fair Value, Inputs, Level 1 [Member] | Fixed Income Funds [Member] | Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets 9,207 10,347  
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Pension Plan Assets $ 138 $ 0  
v3.25.0.1
Income Taxes (Composition of Income Tax Expense) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Current Tax Provision    
Federal $ 567 $ 0
Foreign 4,978 2,556
State 213 39
Total Current Tax Provision 5,758 2,595
Deferred Tax Provision (Benefit)    
Federal 1 1
Foreign 77 (1,095)
State 2 0
Total Deferred Tax Provision (Benefit) 80 (1,094)
Total Tax Provision $ 5,838 $ 1,501
v3.25.0.1
Income Taxes (Reconciliation of Income Tax Rate) (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Statutory U.S. federal income tax rate 21.00% 21.00%
State income taxes, net of federal tax benefit 0.19% 0.50%
Valuation allowance 7.64% (18.50%)
Provision to return (0.91%) (0.60%)
Foreign rate differential (1.74%) (2.20%)
Foreign tax adjustments 0.00% 0.00%
Deferred tax adjustments (1.77%) 0.60%
Nondeductible mark-to-market adjustment (29.86%) (2.10%)
Foreign nondeductible expenses (1.88%) (1.40%)
Nondeductible expenses and other (1.01%) (4.10%)
Effective income tax rate (8.34%) (6.80%)
v3.25.0.1
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Deferred tax assets, Accrued postretirement and pension benefits $ 634 $ 224
Deferred tax liabilities, Intangible assets (36) (30)
Deferred tax assets, Accrued expenses 2,099 2,444
Deferred tax liabilities, Prepaid expenses (1,231) (682)
Deferred tax assets, Inventory valuation 585 524
Deferred tax assets, Property, plant and equipment and railcars on operating leases   0
Deferred tax liabilities, Property, plant and equipment and railcars on operating leases (219) (598)
Deferred tax assets, Net operating loss 53,163 57,252
Deferred tax assets, Interest carryforwards 8,059 10,103
Deferred tax assets, Credit carryforwards 2,016 2,016
Deferred tax assets, Stock-based compensation expense 2,058 1,782
Deferred tax assets, Other   0
Deferred tax liabilities, Other 0 (977)
Deferred tax liabilities, Right of use asset (14,055) (12,671)
Deferred tax assets, Lease liability 15,080 13,354
Deferred Tax Assets, Gross, Total 83,694 87,699
Deferred Tax Liabilities, Gross, Total (15,541) (14,958)
Deferred Tax Assets, Valuation Allowance (67,129) (71,640)
Deferred tax assets, net, total 16,565 16,059
Deferred tax liabilities, net, total (15,541) (14,958)
Increase in valuation allowance $ (4,511) $ 3,759
v3.25.0.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets, interest carryforwards $ 8,059 $ 10,103
Deferred tax liabilities, undistributed foreign earnings 0  
Undistributed earnings of foreign subsidiaries 386  
Unrecognized tax benefits that would impact effective tax rate 0 0
Unrecognized tax benefits, income tax penalties and interest expense 0 $ 0
State and Local Jurisdiction [Member]    
Operating loss carryforwards 212,092  
U.S. Federal [Member]    
Operating loss carryforwards 198,214  
Tax credit carryforwards 2,016  
Deferred tax assets, interest carryforwards $ 37,821  
v3.25.0.1
Income Taxes (Income Tax Years Subject to Examination) (Details)
12 Months Ended
Dec. 31, 2024
U.S. Federal [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
Pennsylvania [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2004
Texas [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2020
Illinois [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2010
Virginia [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
Colorado [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2010
Indiana [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
Nebraska [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2016
Alabama [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2017
China [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
GEORGIA  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
South Carolina [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
Mexico [Member]  
Income Tax Contingency [Line Items]  
Open Tax Year 2021
v3.25.0.1
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Jun. 26, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation   $ 3,110 $ 1,240  
Common stock, shares issued   18,960,608 17,903,437  
Shares outstanding   18,960,608 17,903,437  
Restricted Stock [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Granted (shares)   774,795 453,258  
Stock awards, Grants in Period, Weighted Average Grant Date Fair Value   $ 2.98 $ 3.06  
Unrecognized compensation expense   $ 1,628    
Fair value of stock awards   $ 900 $ 905  
Remaining requisite service period   19 months    
Time-Vested Stock Options [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock options, exercise price   $ 3.8 $ 4.33 $ 5.12
Exercise of stock appreciation rights, value     0  
Weighted-Average Exercise Price, Options exercisable (per share)   $ 4.8 $ 5.88  
Unearned compensation related to options   $ 1,599    
Remaining service period   23 months    
Inducement Options [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award contractual term 10 years 10 years    
Stock appreciation award vesting rights Vesting of the Inducement Options is contingent on the achievement of the later of (i) the first date the closing price of one share of the Company’s Common Stock is equal to or greater than 125% of the exercise price;      
Stock options, exercise price $ 2.73      
Stock price   $ 2.74    
Stock-based compensation   $ 229    
Common stock, shares issued 300,000      
Unrecognized compensation expense   $ 135    
Remaining requisite service period   18 months    
Volatility rate   69.81%    
Risk-free rate   3.65%    
Stock Appreciation Rights (SARs)        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Estimated fair value   $ 1,738    
Allocated share based compensation expense income   $ 4 $ (1,058)  
Shares outstanding   1,644,815    
Weighted average remaining contractual term   5 years 8 months 12 days    
Weighted-Average Exercise Price, Options exercisable (per share)   $ 2.17    
Aggregate intrinsic value   $ 11,166    
The 2022 Long Term Incentive Plans [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Reserved for issuance   3,000,000    
The 2022 Long Term Incentive Plans [Member] | General Use [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award, number of shares authorized   5,804,977    
Share available for issuance   3,125,031    
The 2022 Long Term Incentive Plans [Member] | Settlement of Stock Appreciation Rights Outstanding [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award, number of shares authorized   2,132,113    
Share available for issuance   1,791,660    
Minimum [Member] | Restricted Stock [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period   1 year    
Minimum [Member] | Time-Vested Stock Options [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period   1 year    
Common stock, shares issued   17,022    
Exercise of stock appreciation rights, value   17,022    
Minimum [Member] | Stock Appreciation Rights (SARs)        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Common stock, shares issued   39,640    
Exercise of stock appreciation rights, value   115,702    
Maximum [Member] | Restricted Stock [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period   3 years    
Maximum [Member] | Time-Vested Stock Options [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period   3 years    
Common stock, shares issued   33,581    
Exercise of stock appreciation rights, value   88,817    
Maximum [Member] | Stock Appreciation Rights (SARs)        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Common stock, shares issued   300,000    
Exercise of stock appreciation rights, value   300,000    
Certain Employees [Member] | 2020 Stock Appreciation Rights [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Granted   1,164,464    
Certain Employees [Member] | 2021 Stock Appreciation Rights [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Granted   1,735,500    
v3.25.0.1
Stock-Based Compensation (Valuation Assumptions, Options) (Details) - Time-Vested Stock Options [Member]
12 Months Ended
Dec. 31, 2024
$ / shares
1/4/2024 [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Grant Year 2024
Grant Date Jan. 04, 2024
Expected Life 6 years
Expected Volatility 77.71%
Expected Dividend Yield 0.00%
Risk Free Interest Rate 3.97%
Fair Value Per Award $ 1.94
4/12/2024 [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Grant Year 2024
Grant Date Apr. 12, 2024
Expected Life 6 years
Expected Volatility 77.71%
Expected Dividend Yield 0.00%
Risk Free Interest Rate 4.53%
Fair Value Per Award $ 2.57
5/1/2024 [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Grant Year 2024
Grant Date May 01, 2024
Expected Life 6 years
Expected Volatility 78.00%
Expected Dividend Yield 0.00%
Risk Free Interest Rate 4.64%
Fair Value Per Award $ 2.5
8/12/2024 [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Grant Year 2024
Grant Date Aug. 12, 2024
Expected Life 6 years
Expected Volatility 78.00%
Expected Dividend Yield 0.00%
Risk Free Interest Rate 3.78%
Fair Value Per Award $ 2.51
10/2/2024 [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Grant Year 2024
Grant Date Oct. 02, 2024
Expected Life 6 years
Expected Volatility 78.00%
Expected Dividend Yield 0.00%
Risk Free Interest Rate 3.60%
Fair Value Per Award $ 7.64
10/22/2024 [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Grant Year 2024
Grant Date Oct. 22, 2024
Expected Life 6 years
Expected Volatility 78.00%
Expected Dividend Yield 0.00%
Risk Free Interest Rate 4.04%
Fair Value Per Award $ 8.86
v3.25.0.1
Stock-Based Compensation (Option Activity) (Details) - Time-Vested Stock Options [Member] - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Options Outstanding, Outstanding at the beginning of the year (shares) 1,330,381 898,814
Options Outstanding, Granted (shares) 829,012 503,417
Options Outstanding, Exercised (shares)   0
Options Outstanding, Forfeited or expired (shares) (173,391) (71,850)
Options Outstanding, Outstanding at the end of the year (shares) 1,880,163 1,330,381
Options Outstanding, Exercisable at the end of the year (shares) 696,649 448,880
Weighted-Average Exercise Price, Outstanding at the beginning of the year (per share) $ 4.33 $ 5.12
Weighted-Average Exercise Price, Granted (per share) 3.07 3.2
Weighted-Average Exercise Price, exercised (per share) 4.48 0
Weighted-Average Exercise Price, Forfeited or expired (per share) 3.96 6.27
Weighted-Average Exercise Price, Outstanding at the end of the year (per share) 3.8 4.33
Weighted-Average Exercise Price, Exercisable at the end of the year (per share) $ 4.8 $ 5.88
v3.25.0.1
Stock-Based Compensation (Shares Outstanding) (Details) - Time-Vested Stock Options [Member] - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Outstanding (shares) 1,880,163 1,330,381 898,814
Vested or expected to vest (shares) 1,880,163    
Exercisable (shares) 696,649 448,880  
Weighted-Average Remaining Contractual Term, Options Outstanding (in years) 7 years 10 months 24 days    
Weighted-Average Remaining Contractual Term, Vested or expected to vest (in years) 7 years 10 months 24 days    
Weighted-Average Remaining Contractual Term, Options exercisable (in years) 6 years 6 months    
Weighted Average Exercise Price, Options outstanding (per share) $ 3.8 $ 4.33 $ 5.12
Weighted Average Exercise Price, Vested or expected to vest (per share) 3.8    
Weighted-Average Exercise Price, Options exercisable (per share) 4.8 $ 5.88  
Agrregate IntrinsicValue Options outstanding $ 10,029    
Aggregate Intrinsic Value, Vested or expected to vest $ 10,029    
Aggregate Intrinsic Value, Vested or expected to vest, Options exercisable $ 3,172    
v3.25.0.1
Stock-Based Compensation (SAR Activity) (Details) - Stock Appreciation Rights (SARs) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Outstanding at the beginning of the year 2,068,705 2,132,113
Exercised (415,702) (35,522)
Forfeited or expired (8,188) (27,886)
Outstanding at the end of the year 1,644,815 2,068,705
Options Outstanding, Exercisable at the end of the year (shares) 1,644,815 1,564,300
Weighted-Average Grant Date Fair Value, Nonvested at the beginning of the year (per share) $ 2.2 $ 2.2
Weighted Average Grant Date Fair Value, Exercised (per share) 2.33 2.24
Weighted Average Grant Date Fair Value, Forfeited or expired (per share) 2.14 2.2
Weighted-Average Grant Date Fair Value, Nonvested at the end of the year (per share) 2.17 2.2
Weighted-Average Exercise Price, Exercisable at the end of the year (per share) $ 2.17 $ 2.15
v3.25.0.1
Stock-Based Compensation (Nonvested Restricted Shares) (Details) - Restricted Stock [Member] - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Oustanding at the beginning of the year (shares) 857,583 689,862
Granted (shares) 774,795 453,258
Vested (shares) (283,282) (285,537)
Forfeited (shares) (106,789) 0
Outstanding at the end of the year (shares) 1,242,307 857,583
Expected to vest (shares) 1,242,307 857,583
Weighted-Average Grant Date Fair Value, Nonvested at the beginning of the year (per share) $ 3.44 $ 3.2
Weighted Average Grant Date Fair Value, Granted (per share) 2.98 3.06
Weighted Average Grant Date Fair Value, Vested (per share) 3.25 2.24
Weighted Average Grant Date Fair Value, Forfeited or expired (per share) 3.19 0
Weighted-Average Grant Date Fair Value, Nonvested at the end of the year (per share) 3.22 3.44
Weighted Average Grant Date Fair Value, Expected to vest (per share) $ 3.44 $ 3.44
v3.25.0.1
Loss Per Share (Weighted Average Common Shares Outstanding) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]    
Net loss $ (75,817) $ (23,589)
Accretion of financing fees (1,954) (347)
Accrued dividends on Series C Preferred Stock (18,227) (9,636)
Net loss available to common stockholders - basic (95,998) (33,572)
Net loss available to common stockholders - diluted $ (95,998) $ (33,572)
Weighted average common shares outstanding 17,495,542 16,965,161
Issuance of Warrants 13,231,374 11,401,296
Weighted average common shares outstanding - basic 30,726,916 28,366,457
Weighted average common shares outstanding - diluted 30,726,916 28,366,457
v3.25.0.1
Loss Per Share (Narrative) (Details) - shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]    
Anti-dilutive common shares excluded from computation of earnings per share amount 2,029,134 3,771,495
v3.25.0.1
Segment Information (Additional Information) (Details)
12 Months Ended
Dec. 31, 2024
Segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.25.0.1
Segment Information (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Revenues $ 559,425 $ 358,093
Cost of sales 492,383 316,330
Gross profit 67,042 41,763
Operating income (loss) 37,341 10,492
Loss on change in fair market value of Warrant Liability (99,518) (2,229)
Loss on extinguishment of debt 0 (14,880)
Consolidated other expense (952) (440)
Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Revenues 559,425 358,093
Cost of sales 492,383 316,330
Gross profit 67,042 41,763
Other segment items 29,701 [1] 31,271 [2]
Operating income (loss) 37,341 10,492
Consolidated interest expense (6,850) (15,031)
Loss on change in fair market value of Warrant Liability (99,518) (2,229)
Loss on extinguishment of debt   (14,880)
Consolidated other expense (952) (440)
Consolidated income (loss) before income taxes (69,979) (22,088)
Depreciation and amortization 5,763 4,606
Capital expenditures 5,019 12,722
Operating Segments [Member] | Manufacturing [Member]    
Segment Reporting Information [Line Items]    
Revenues 541,184 345,866
Cost of sales 482,769 308,711
Gross profit 58,415 37,155
Other segment items (1,204) [1] 5,600 [2]
Operating income (loss) 59,619 31,555
Depreciation and amortization 5,292 4,026
Capital expenditures 4,708 12,536
Operating Segments [Member] | Corporate [Member]    
Segment Reporting Information [Line Items]    
Revenues 0 0
Cost of sales 0 0
Gross profit 0 0
Other segment items 29,450 [1] 24,942 [2]
Operating income (loss) (29,450) (24,942)
Depreciation and amortization 313 297
Capital expenditures 296 181
Operating Segments [Member] | Aftermarket [Member]    
Segment Reporting Information [Line Items]    
Revenues 18,241 12,227
Cost of sales 9,614 7,619
Gross profit 8,627 4,608
Other segment items 1,455 [1] 729 [2]
Operating income (loss) 7,172 3,879
Depreciation and amortization 158 283
Capital expenditures $ 15 $ 5
[1] Other segment items in Manufacturing segment include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket segment and Corporate include selling, general and administrative expenses.
[2] Other segment items in Manufacturing segment include selling, general and administrative expenses, impairment on leased railcars and gain on sale of railcars available for lease. Other segment items in Aftermarket segment include selling, general and administrative expenses. Other segment items in Corporate include selling, general and administrative expenses and pension settlement loss.
v3.25.0.1
Segment Information (Summary of Segment Depreciation, Amortization and Capital Expenditures) (Details) - Operating Segments [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Depreciation and amortization $ 5,763 $ 4,606
Capital expenditures 5,019 12,722
Manufacturing [Member]    
Segment Reporting Information [Line Items]    
Depreciation and amortization 5,292 4,026
Capital expenditures 4,708 12,536
Aftermarket [Member]    
Segment Reporting Information [Line Items]    
Depreciation and amortization 158 283
Capital expenditures 15 5
Corporate [Member]    
Segment Reporting Information [Line Items]    
Depreciation and amortization 313 297
Capital expenditures $ 296 $ 181
v3.25.0.1
Segment Information (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Total assets $ 224,216 $ 259,459
Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Total operating assets 223,077 258,251
Consolidated income taxes receivable 1,139 1,208
Total assets 224,216 259,459
Operating Segments [Member] | Manufacturing [Member]    
Segment Reporting Information [Line Items]    
Total operating assets 165,702 207,093
Operating Segments [Member] | Aftermarket [Member]    
Segment Reporting Information [Line Items]    
Total operating assets 11,014 9,281
Operating Segments [Member] | Corporate [Member]    
Segment Reporting Information [Line Items]    
Total operating assets $ 46,361 $ 41,877
v3.25.0.1
Segment Information (Geographic Information) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Revenues $ 559,425 $ 358,093
Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Revenues 559,425 358,093
Long-Lived Assets [1] 77,611 77,203
Operating Segments [Member] | United States [Member]    
Segment Reporting Information [Line Items]    
Revenues 559,425 358,093
Long-Lived Assets [1] 3,856 7,377
Operating Segments [Member] | Mexico [Member]    
Segment Reporting Information [Line Items]    
Revenues 0 0
Long-Lived Assets [1] $ 73,755 $ 69,826
[1] Long lived assets include property plant and equipment, net, railcars available for lease, and right-of-use (ROU) assets.
v3.25.0.1
Acquisition (Narrative) (Details) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Business Acquisition [Line Items]    
Common stock, par value $ 0.01 $ 0.01
v3.25.0.1
Related Parties (Additional Information) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]    
Related party asset $ 959 $ 638
Related party accounts payable 2,693 2,478
Dividends Paid $ 27,863 0
Fasemex [Member]    
Related Party Transaction [Line Items]    
Percentage of common stock outstanding 10.20%  
CSTH [member]    
Related Party Transaction [Line Items]    
Percentage of common stock outstanding 5.00%  
Related party asset $ 345 121
Specialty parts supplies $ 885 121
Warrantholder [Member]    
Related Party Transaction [Line Items]    
Percentage of common stock outstanding 49.40%  
Warrantholder [Member] | Standby Letters of Credit [Member]    
Related Party Transaction [Line Items]    
Dividends Paid $ 27,863  
Cash fees 2,163  
Gil Family [Member]    
Related Party Transaction [Line Items]    
Operating costs and expenses 27,214 17,379
Related party asset 614 517
Related party accounts payable $ 2,693 $ 2,478