FTCI — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-05

• Additionally, on June 3, 2026, President Trump signed an Executive Order, "Strengthening Customs Enforcement" (Executive Order 14411) which directs the U.S. Department of Homeland Security and CBP to take steps to tighten oversight of importers, increase penalties for violations, strengthen anti-fra…

• On April 5, 2025, the United States imposed a universal 10% "reciprocal" tariff on most imports into the United States, excluding certain products and certain qualifying imports from Canada and Mexico. Throughout 2025, tariff rates continued to change and fluctuate as negotiations continued between …

• During the three and six months ended June 30, 2026 and 2025, we added new employees in certain areas in response to current project activity levels. Certain of our headcount changes also reflect a shift of our employee base to more cost-effective markets with exceptional talent. Our gross profit ma…

• The increase in cost of revenue for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily driven by an increase of 56% in MW produced and the inclusion of additional costs for Alpha Steel as Alpha Steel is now a wholly owned subsidiary. This was par…

• We had negative gross margin for the three months ended June 30, 2026 due mainly to the inclusion of additional costs for Alpha Steel as Alpha Steel is now a wholly owned subsidiary and lower product ASP.

Text removed vs the prior filing · source: 10-Q · 2026-05-05

• On April 5, 2025, the United States imposed a universal 10% "reciprocal" tariff on most imports into the United States, excluding certain products and certain qualifying imports from Canada and Mexico. Throughout 2025, tariff rates continued to change and fluctuate as negotiations continued between …

• During 2025, and for the three months ended March 31, 2026 and 2025, we added new employees in certain areas in response to current project activity levels. Certain of our headcount changes also reflect a shift of our employee base to more cost-effective markets

• with exceptional talent. Our gross profit may vary period-to-period due to changes in our headcount, ASP, product costs, product versus service mix, customer mix, geographical mix, shipping methods, warranty costs and seasonality.

• Gain from disposal of investment in unconsolidated subsidiary

• The decrease in cost of revenue for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily driven by a decrease of 52% in MW produced and lower shipping and warehousing costs. This was partially offset by (i) additional costs related to the inclusi…

Text added vs the prior filing · source: 10-Q · 2026-08-05

• At June 30, 2026, the outstanding principal balance, including accrued paid-in-kind interest, of our Term Loans and A&R Promissory Note totaled $52.1 million. As a result of factors that are outside of our control in terms of timing of customer project activity and resulting revenue and cash flows, …

• We also had New Warrants outstanding for 6,836,237 shares of our common stock at June 30, 2026. The New Warrants are exercisable at any time through July 2, 2035, at an exercise price of $0.01 per share.

• As a result of our acquisition of Alpha Steel, we now have the ability to manufacture and deliver certain products to our domestic customers seeking U.S.-based content. As a result, we are directly exposed to the risk of fluctuating market prices, primarily related to steel and aluminum, that we may…

• We also subcontract to various contract manufacturers, who manufacture and deliver products directly to our customers. We, therefore in those cases, do not acquire raw materials and commodities directly, except for items added to our inventory. We are subject to indirect risk from fluctuating market…

• Prices of the raw materials used in our products may be affected by supply restrictions or other market factors from time to time. Significant price increases for these raw materials could reduce our operating margins if we are unable to recover such increases in costs from our customers, and could …

Text removed vs the prior filing · source: 10-Q · 2026-05-05

• At March 31, 2026, the outstanding principal balance, including accrued paid-in-kind interest, of our Term Loans and A&R Promissory Note totaled $53.6 million. We also had New Warrants outstanding for 6,836,237 shares of our common stock at March 31, 2026. The New Warrants are exercisable at any tim…

• We subcontract to various contract manufacturers, who manufacture and deliver products directly to our customers. We, therefore, do not acquire raw materials and commodities directly, except for items added to our inventory. We are subject to indirect risk from fluctuating market prices of certain c…

Text added vs the prior filing · source: 10-Q · 2026-08-05

• We are subject to a number of risks that in some cases have and moving forward if realized could further adversely affect our business, strategies, prospects, financial condition, results of operations and cash flows. Some of the more significant risks and uncertainties we face include those summari…

• We have a history of losses that may continue in the future, and we were not in compliance with the required minimum unrestricted cash and direct tracker margin financial covenants pursuant to the Second Amendment to our Credit Agreement as of June 30, 2026. As a result, we have determined there is …

• Our dependence on a limited number of customers, the payment terms we agree to with such customers and the expected timing of customer project development activity may impair our ability to operate profitably.

• We may invest in or acquire other companies or technologies, which could divert our management’s attention, result in dilution to our stockholders, reduce our available cash that could be used for other purposes and otherwise disrupt our operations and harm our results of operations.

• The market for our products and services is highly competitive and rapidly evolving, and we expect to face increased competition.