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SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

 

14.SUBSEQUENT EVENTS

 

Credit Agreement Waiver; Fifteenth Amendment to Credit Agreement

 

On August 14, 2025, the Lenders issued the waiver described in Note 7, which waived the Company’s Financial Covenant non-compliance for the quarter ended June 30, 2025 and waived non-compliance with the July 2025 Payment Obligation until September 30, 2025. On August 19, 2025, the Company executed the Fifteenth Amendment described in Note 7. The amendment revised certain covenants to reflect specified adjustments for the quarter ended March 31, 2025 and June 30, 2025.

 

A-10 Program Contract Termination

 

On May 7, 2025, the Company submitted to The Boeing Company a Request for Equitable Pricing Adjustment on the A-10 program addressing higher manufacturing costs on its 2019 Firm Fixed Price contract. Subsequently, on July 14, 2025, the Company received a Termination Notice from The Boeing Company with respect to the A-10 program directing the Company to scrap and return materials and tooling to the Air Force prior to August 15, 2025 when funding would no longer be available.

 

In light of these events, and in conjunction with the Air Force’s decision to accelerate the retirement of the A-10 fleet, the Company has evaluated the situation and decided to recognize an adjustment to address the risk in the reported period. The Company will continue to evaluate the situation and will recognize further adjustments if required, in the period in which a reasonable estimate can be determined.