XML 31 R22.htm IDEA: XBRL DOCUMENT v3.23.3
Related Parties
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Related Parties

Note 15 – Related Parties

 

The following persons are owners of Fabricaciones y Servicios de México, S.A. de C.V. (“Fasemex”): Jesus Gil, VP Operations and a director of the Company; and Alejandro Gil and Salvador Gil, siblings of Jesus Gil. Fasemex owns approximately 10.8% of the outstanding shares of Common Stock as of September 30, 2023 and provides steel fabrication services to the Company. The lessors of the Company’s leased facility in Castaños are Jesus Gil, Alejandro Gil, and Salvador Gil. The Company paid $2,172 and $8,766 during the three and nine months ended September 30, 2023, respectively, and $7,121 and $23,777 during the three and nine months ended September 30, 2022, respectively, related to rent payment, security deposit, fabrication services and royalty payments. Distribuciones Industriales JAS S.A. de C.V. (“DI”) is owned by Alejandro Gil and Salvador Gil. The Company paid $1,252 and $3,049 during the three and nine months ended September 30, 2023, respectively, and $524 and $1,596 during the three and nine months ended September 30, 2022, respectively, to DI related to material and safety supplies. Maquinaria y Equipo de Transporte Jova S.A. de C.V. (“METJ”) is owned by Jorge Gil, another sibling of Jesus Gil. The Company paid $485 and $1,860 during the three and nine months ended September 30, 2023, respectively, and $475 and $1,887 during the three and nine months ended September 30, 2022, respectively, to METJ related to trucking services.

 

Related party asset on the condensed consolidated balance sheet of $1,172 as of September 30, 2023 includes prepaid inventory of $639 and other receivables of $533 from Fasemex. Related party accounts payable on the condensed consolidated balance sheet of $1,569 as of September 30, 2023 includes $668 payable to Fasemex, $654 payable to DI and $247 payable to METJ. Related party asset on the condensed consolidated balance sheet of $3,261 as of December 31, 2022 includes prepaid inventory of $2,014 and other receivables of $1,247 from Fasemex. Related party accounts payable on the condensed consolidated balance sheet of $3,393 as of December 31, 2022 includes $2,475 payable to Fasemex, $572 payable to DI and $346 payable to METJ.

 

The Warrantholder beneficially owns approximately 47.4% of the outstanding shares of Common Stock (as disclosed by the Warrantholder in its Schedule 13D/A No. 6 filed with the SEC on July 14, 2023). The Company did not pay interest to the Warrantholder during the three months ended September 30, 2023. The Company paid $4,776 to the Warrantholder during the nine months ended September 30, 2023 for term loan interest, of which $1,615 was paid in cash and $3,161 was payment in kind. Additionally, the Company did not pay equity or cash fees during the three months ended September 30, 2023 and paid $535 in equity fees and $866 in cash fees during the nine months ended September 30, 2023 to the Warrantholder related to the standby letter of credit described in Note 8 – Debt Financing and Revolving Credit Facilities.