0001137091-21-000005 | 10-Q | XBRL Viewer | Power Solutions International INC

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Entity Registrant Name	POWER SOLUTIONS INTERNATIONAL, INC.
Entity Central Index Key	0001137091
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,892,413
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 23,404	$ 20,968
Restricted cash	3,299	3,299
Accounts receivable, net of allowances of $3,269 and $3,701 as of March 31, 2021 and December 31, 2020, respectively	52,527	60,148
Income tax receivable	3,705	3,708
Inventories, net	109,092	108,213
Prepaid expenses and other current assets	8,115	6,351
Total current assets	200,142	202,687
Property, plant and equipment, net	19,400	20,181
Intangible assets, net	9,685	10,319
Goodwill	29,835	29,835
Other noncurrent assets	19,992	20,955
TOTAL ASSETS	279,054	283,977
Current liabilities:
Accounts payable	55,150	31,547
Current maturities of long-term debt	292	310
Revolving line of credit	130,000	130,000
Other accrued liabilities	66,465	77,619
Total current liabilities	251,907	239,476
Deferred income taxes	1,255	886
Long-term debt, net of current maturities	695	781
Noncurrent contract liabilities	3,087	3,181
Other noncurrent liabilities	34,055	33,556
TOTAL LIABILITIES	290,999	277,880
STOCKHOLDERS’ (DEFICIT) EQUITY
Preferred stock – $0.001 par value. Shares authorized: 5,000. No shares issued and outstanding at all dates.	0	0
Common stock – $0.001 par value; 50,000 shares authorized; 23,117 shares issued; 22,892 shares outstanding at both March 31, 2021 and December 31, 2020	23	23
Additional paid-in capital	157,371	157,262
Accumulated deficit	(168,044)	(149,894)
Treasury stock, at cost, 225 shares at both March 31, 2021 and December 31, 2020	(1,295)	(1,294)
TOTAL STOCKHOLDERS’ (DEFICIT) EQUITY	(11,945)	6,097
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY	$ 279,054	$ 283,977

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Accounts receivable allowance	$ 3,269	$ 3,701
STOCKHOLDERS’ (DEFICIT) EQUITY
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	23,117,000	23,117,000
Common stock, shares outstanding (in shares)	22,892,000	22,892,000
Treasury stock (in shares)	225,000	225,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Net sales	$ 100,171	$ 105,097
Cost of sales	93,101	87,383
Gross profit	7,070	17,714
Operating expenses:
Research, development and engineering expenses	6,224	6,752
Selling, general and administrative expenses	15,811	13,890
Amortization of intangible assets	634	763
Total operating expenses	22,669	21,405
Operating loss	(15,599)	(3,691)
Other expense, net:
Interest expense	2,161	1,274
Other income, net	0	(211)
Total other expense, net	2,161	1,063
Loss before income taxes	(17,760)	(4,754)
Income tax expense (benefit)	390	(4,042)
Net loss	$ (18,150)	$ (712)
Weighted-average common shares outstanding:
Basic (in shares)	22,892	22,858
Diluted (in shares)	22,892	22,858
Loss per common share:
Basic (in dollars per share)	$ (0.79)	$ (0.03)
Diluted (in dollars per share)	$ (0.79)	$ (0.03)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock
Beginning balance at Dec. 31, 2019	$ 28,497	$ 23	$ 156,727	$ (126,912)	$ (1,341)
Increase (Decrease) in Stockholders' Equity
Net loss	(712)			(712)
Stock-based compensation expense	157		165		(8)
Common stock issued for stock-based awards, net	(1)		(1)
Ending balance at Mar. 31, 2020	27,941	23	156,891	(127,624)	(1,349)
Beginning balance at Dec. 31, 2020	6,097	23	157,262	(149,894)	(1,294)
Increase (Decrease) in Stockholders' Equity
Net loss	(18,150)			(18,150)
Stock-based compensation expense	109		109
Common stock issued for stock-based awards, net	(1)				(1)
Ending balance at Mar. 31, 2021	$ (11,945)	$ 23	$ 157,371	$ (168,044)	$ (1,295)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash provided by operating activities
Net loss	$ (18,150)	$ (712)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of intangible assets	634	763
Depreciation	1,266	1,296
Stock-based compensation expense	109	157
Amortization of financing fees	1,158	116
Deferred income taxes	369	(390)
Other adjustments, net	574	(162)
Changes in operating assets and liabilities:
Accounts receivable, net	7,620	45,585
Inventory, net	(1,363)	(16,811)
Prepaid expenses and other assets	(84)	(5,530)
Accounts payable	24,287	(8,586)
Accrued expenses	(11,144)	9,694
Other noncurrent liabilities	405	(1,116)
Net cash provided by operating activities	5,681	24,304
Cash used in investing activities
Capital expenditures	(617)	(779)
Other investing activities, net	10	7
Net cash used in investing activities	(607)	(772)
Cash used in financing activities
Proceeds from revolving line of credit	0	127,560
Repayments of revolving line of credit	0	(150,258)
Payments of deferred financing costs	(2,536)	0
Other financing activities, net	(102)	(21)
Net cash used in financing activities	(2,638)	(22,719)
Net increase in cash, cash equivalents, and restricted cash	2,436	813
Cash, cash equivalents, and restricted cash at beginning of the period	24,267	3
Cash, cash equivalents, and restricted cash at end of the period	26,703	816
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets
Total cash, cash equivalents, and restricted cash	$ 26,703	$ 816

Summary of Significant Accounting Policies and Other Information

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies and Other Information

Nature of Business Operations

Power Solutions International, Inc. (“Power Solutions,” “PSI” or the “Company”), a Delaware corporation, is a global producer and distributor of a broad range of high-performance, certified, low-emission power systems, including alternative-fueled power systems for original equipment manufacturers (“OEMs”) of off-highway industrial equipment and certain on-road vehicles and large custom-engineered integrated electrical power generation systems.

The Company’s customers include large, industry-leading and multinational organizations. The Company’s products and services are sold predominantly to customers throughout North America as well as to customers located throughout the Pacific Rim and Europe. The Company’s power systems are highly engineered, comprehensive systems which, through the Company’s technologically sophisticated development and manufacturing processes, including its in-house design, prototyping, testing and engineering capabilities and its analysis and determination of the specific components to be integrated into a given power system (driven in large part by emission standards and cost considerations), allow the Company to provide its customers with power systems customized to meet specific OEM application requirements, other technical customers’ specifications and requirements imposed by environmental regulatory bodies.

The Company’s power system configurations range from a basic engine integrated with appropriate fuel system components to completely packaged power systems that include any combination of cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes and other assembled componentry. The Company also designs and manufactures large, custom-engineered integrated electrical power generation systems for both standby and prime power applications. The Company purchases engines from third-party suppliers and produces internally designed engines, all of which are then integrated into its power systems.

Of the other components that the Company integrates into its power systems, a substantial portion consist of internally designed components and components for which it coordinates significant design efforts with third-party suppliers, with the remainder consisting largely of parts that are sourced off-the-shelf from third-party suppliers. Some of the key components (including purchased engines) embody proprietary intellectual property of the Company’s suppliers. As a result of its design and manufacturing capabilities, the Company is able to provide its customers with a power system that can be incorporated into a customer’s specified application. In addition to the certified products described above, the Company sells diesel, gasoline and non-certified power systems and aftermarket components.

Stock Ownership and Control

In March 2017, the Company executed a share purchase agreement (the “SPA”) with Weichai America Corp., a wholly-owned subsidiary of Weichai Power Co., Ltd. (HK2338, SZ000338) (herein collectively referred to as “Weichai”). Under the terms of the SPA, Weichai invested $60.0 million in the Company purchasing a combination of newly issued Common and Preferred Stock as well as a stock purchase warrant (the “Weichai Warrant”).

With the exercise of the Weichai Warrant in April 2019, Weichai owns a majority of the outstanding shares of the Company’s common stock par value $0.001 (“Common Stock”). As a result, Weichai is able to exercise control over matters requiring stockholders’ approval, including the election of the directors, amendment of the Company’s Certificate of Incorporation and approval of significant corporate transactions. This control could have the effect of delaying or preventing a change of control of the Company or changes in management and will make the approval of certain transactions impractical without the support of Weichai.

Weichai also entered into an Investor Rights Agreement (the “Rights Agreement”) with the Company upon execution of the SPA. The Rights Agreement provides Weichai with representation on the Company’s Board of Directors (the “Board”) and management representation rights. Weichai currently has four representatives on the Board, which constitutes the majority of the directors serving on the Board. According to the Rights Agreement, during any period when the Company is a “controlled company” within the meaning of the NASDAQ Stock Market (“NASDAQ”) Listing Rules, it will take such measures as to avail itself of the “controlled company” exemptions available under Rule 5615 of the NASDAQ Listing Rules of Rules 5605(b), (d) and (e).

Going Concern Considerations

In March 2021, the Company entered into an amended and restated uncommitted revolving credit agreement between the Company and Standard Chartered Bank (“Standard Chartered”), as administrative agent (the “Amended and Restated Uncommitted Revolving Credit Agreement”). The Amended and Restated Uncommitted Revolving Credit Agreement continues to allow the Company to borrow up to $130.0 million and matures on March 25, 2022. Under the Amended and

Restated Uncommitted Revolving Credit Agreement, Standard Chartered has the right to demand payment of any and all outstanding borrowings and other amounts outstanding under the Amended and Restated Uncommitted Revolving Credit Agreement at any point in time at its discretion. In connection with the execution of the Amended and Restated Uncommitted Revolving Credit Agreement, the Company entered into an amendment and restatement of the shareholder’s loan agreement originally executed with Weichai in December 2020 (the “First Amended and Restated Shareholder’s Loan Agreement”). The First Amended and Restated Shareholder’s Loan Agreement provides the Company with access to $130.0 million of credit solely for purposes of repaying outstanding borrowings under the Amended and Restated Uncommitted Revolving Credit Agreement. The First Amended and Restated Shareholder’s Loan Agreement expires on April 25, 2022. The Amended and Restated Uncommitted Revolving Credit Agreement provides Standard Chartered with a power of attorney (“POA”) to submit a borrowing request to Weichai under the First Amended and Restated Shareholder’s Loan Agreement if the Company fails to submit a borrowing request within five business days of receiving a request from Standard Chartered. As of March 31, 2021, the Company had $130.0 million outstanding under the Amended and Restated Uncommitted Revolving Credit Agreement. See Note 6. Debt for further information regarding the terms and conditions of the Company’s debt agreements.

Significant uncertainties exist about the Company’s ability to refinance, extend, or repay its outstanding indebtedness, maintain sufficient liquidity to fund its business activities, and maintain compliance with the covenants and other requirements under the Amended and Restated Uncommitted Revolving Credit Agreement in the future. Without additional financing, the Company anticipates that it will not have sufficient cash and cash equivalents to repay amounts owing under the Amended and Restated Uncommitted Revolving Credit Agreement as it becomes due. In order to provide the Company with a more permanent source of liquidity, management plans to seek an extension and amendment and/or replacement of the Amended and Restated Uncommitted Revolving Credit Agreement or additional liquidity from its current or other lenders before March 25, 2022. There can be no assurance that the Company’s management will be able to successfully complete an extension and amendment of the Amended and Restated Uncommitted Revolving Credit Agreement or obtain new financing on acceptable terms, when required or if at all. These consolidated financial statements do not include any adjustments that might result from the outcome of the Company’s efforts to address these issues.

Furthermore, if the Company cannot raise capital on acceptable terms, it may not, among other things, be able to do the following:

•continue to expand the Company’s research and product investments and sales and marketing organization;

•continue to fund and expand operations both organically and through acquisitions; and

•respond to competitive pressures or unanticipated working capital requirements.

Additionally, as discussed further below, the global economy continues to be impacted by the outbreak of the coronavirus (“COVID-19”) that was first declared a global pandemic (the “COVID-19 pandemic”) in March 2020. The potential for continued disruptions, economic uncertainty, and unfavorable oil and gas market dynamics may continue to have a material adverse impact on the results of operations, financial position and liquidity of the Company.

The Company’s management has concluded that, due to uncertainties surrounding the Company’s future ability to refinance, extend and amend, or repay its outstanding indebtedness, maintain sufficient liquidity to fund its business activities, and maintain compliance with the covenants and other requirements under the Amended and Restated Uncommitted Revolving Credit Agreement, substantial doubt exists as to its ability to continue as a going concern within one year after the date that these financial statements are issued. The Company’s plans to alleviate the substantial doubt about its ability to continue as a going concern may not be successful, and it may be forced to limit its business activities or be unable to continue as a going concern, which would have a material adverse effect on its results of operations and financial condition.

The consolidated financial statements included herein have been prepared assuming that the Company will continue as a going concern and contemplating the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company’s ability to continue as a going concern is dependent on generating profitable operating results, having sufficient liquidity, maintaining compliance with the covenants and other requirements under the Amended and Restated Uncommitted Revolving Credit Agreement in the future, and extending and amending, refinancing or repaying the indebtedness outstanding under such agreement.

COVID-19 Pandemic and Oil and Gas Market Volatility

During 2020, as a result of the COVID-19 pandemic, the global economy experienced substantial turmoil, which led to challenging market conditions across certain areas of the Company’s business. In addition, due to unprecedented decreases in demand, an oil price war, and economic uncertainty resulting from the COVID-19 pandemic, average crude oil prices were considerably lower in 2020 as compared to prices at the end of 2019. Since May 2020, crude oil prices increased considerably from their lows reached in April 2020. While U.S. rig counts at the end of April 2021 are higher as compared to the start of 2021, they remain well below the average for the full year of 2019 and the first quarter of 2020. A significant portion of the Company’s sales and profitability is derived from the sale of products that are used within the oil and gas industry. In addition,

the Company experienced delays in its supply chain during the first quarter of 2021 due to temporary shortages of raw materials and container delays of overseas materials as bottlenecks occurred at ports in Asia and North America. This, in turn, caused delivery delays to some of the Company’s customers. The Company also experienced inflationary cost pressures for certain materials and is working to mitigate the impact through price increases and other measures, where possible. The potential for continued disruptions, economic uncertainty, and unfavorable oil and gas market dynamics may have a material adverse impact on the timing of delivery of customer orders and the levels of future customer orders. Accordingly, these challenges may have a material adverse impact on the Company’s future results of operations, financial position, and liquidity.

The Company initiated certain contingency actions during 2020 as a result of the significant negative impacts of these factors on the Company. During 2020, the Company took actions to continue to improve its manufacturing operations which included making reductions in its production facility workforce to align with current volume trends. In addition, the Company implemented various temporary cost reduction measures, including reduced pay for salaried employees, suspension of the 401(k) match program, and deferred spending on certain research and development (“R&D”) programs, among others. As of January 1, 2021, the Company reinstated pay for salaried employees as well as the 401(k) match program. Any additional cost savings initiatives or other cash actions the Company undertakes in response to the COVID-19 pandemic may not achieve the intended results and may result in other adverse impacts, which could be material. Even after the COVID-19 pandemic has subsided, the Company may continue to experience negative impacts to its business, operations and financial condition as a result of any economic recession or depression that has occurred or may occur in the future.

Basis of Presentation and Consolidation

The Company is filing this Form 10-Q for the three months ended March 31, 2021, which contains unaudited consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021 and 2020.

The consolidated financial statements include the accounts of Power Solutions International, Inc. and its wholly-owned subsidiaries and majority-owned subsidiaries in which the Company exercises control. The foregoing financial information was prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. All intercompany balances and transactions have been eliminated in consolidation.

Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying consolidated financial statements should be read in conjunction with, and have been prepared in accordance with accounting policies reflected in, the consolidated financial statements and related notes, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“the 2020 Annual Report”). The Company’s significant accounting policies are described in the aforementioned 2020 Annual Report. Included below are certain updates to those policies. The accompanying interim financial information is unaudited; however, the Company believes the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP. Operating results for interim periods are not necessarily indicative of annual operating results.

The Company operates as one business and geographic operating segment. Operating segments are defined as components of a business that can earn revenue and incur expenses for which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker (“CODM”). The Company’s CODM is its principal executive officer, who decides how to allocate resources and assess performance. A single management team reports to the CODM, who manages the entire business. The Company’s CODM reviews consolidated statements of operations to make decisions, allocate resources and assess performance, and the CODM does not evaluate the profit or loss from any separate geography or product line.

Concentrations

The following table presents customers individually accounting for more than 10% of the Company’s net sales:


	For the Three Months Ended March 31,
	2021		2020

Customer A	15	%	15	%
Customer B	20	%	**
Customer C	**		14	%

Customer D	**		10	%

The following table presents customers individually accounting for more than 10% of the Company’s accounts receivable:


	As of March 31, 2021		As of December 31, 2020
Customer A	23	%	16	%
Customer B	13	%	**
Customer C	**		22	%

The following table presents suppliers individually accounting for more than 10% of the Company’s purchases:


	For the Three Months Ended March 31,
	2021		2020
Supplier A	14	%	**
Supplier B	10	%	**
Supplier C	**		11	%

**Less than 10% of the total

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires that management 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions include the valuation of allowances for uncollectible receivables, inventory reserves, warranty reserves, evaluation of goodwill, other intangibles, property, plant and equipment for impairment, and determination of useful lives of long-lived assets. Actual results could materially differ from those estimates.

Research and Development

R&D expenses are expensed when incurred. R&D expenses consist primarily of wages, materials, testing and consulting related to the development of new engines, parts and applications. These costs were $6.0 million and $6.4 million for the three months ended March 31, 2021 and 2020, respectively.

Restricted Cash

The Company is required to maintain minimum levels of cash collateral to support the letters of credit. The cash collateral is held in a separate bank account which the Company is restricted from accessing. As discussed in Note 9. Commitments and Contingencies, the Company had outstanding letters of credit of $2.3 million and restricted cash of $3.3 million at both March 31, 2021 and December 31, 2020.

Inventories

The Company’s inventories consist primarily of engines and parts. Engines are valued at the lower of cost plus estimated freight-in or net realizable value. Parts are valued at the lower of cost or net realizable value. Net realizable value approximates replacement cost. Cost is principally determined using the first-in, first-out method and includes material, labor and manufacturing overhead. It is the Company’s policy to review inventories on a continuing basis for obsolete, excess and slow-moving items and to record valuation adjustments for such items in order to eliminate non-recoverable costs from inventory. Valuation adjustments are recorded in an inventory reserve account and reduce the cost basis of the inventory in the period in which the reduced valuation is determined. Inventory reserves are established based on quantities on hand, usage and sales history, customer orders, projected demand and utilization within a current or future power system. Specific analysis of individual items or groups of items is performed based on these same criteria, as well as on changes in market conditions or any other identified conditions.

Inventories consisted of the following:


(in thousands) Inventories	As of March 31, 2021		As of December 31, 2020
Raw materials	$	85,595	$	89,684
Work in process	6,552		2,482
Finished goods	20,653		19,375
Total inventories	112,800		111,541
Inventory allowance	(3,708)		(3,328)
Inventories, net	$	109,092	$	108,213

Activity in the Company’s inventory allowance was as follows:


(in thousands)	For the Three Months Ended March 31,
Inventory Allowance	2021		2020
Balance at beginning of period	$	3,328	$	2,964
Charged to expense	553		526
Write-offs	(173)		(273)
Balance at end of period	$	3,708	$	3,217

Other Accrued Liabilities

Other accrued liabilities consisted of the following:


(in thousands) Other Accrued Liabilities	As of March 31, 2021		As of December 31, 2020
Accrued product warranty	$	17,073	$	14,928
Litigation reserves *	4,129		3,128
Contract liabilities	32,978		47,960
Accrued compensation and benefits	3,172		3,124
Operating lease liabilities	3,809		3,793

Accrued interest expense	33		895

Other	5,271		3,791
Total	$	66,465	$	77,619

*As of March 31, 2021 and December 31, 2020 litigation reserves related to various ongoing legal matters including associated legal fees as well as accrued indemnification costs related to former officers and employees of the Company. See Note 9. Commitments and Contingencies for additional information.

Warranty Costs

The Company offers a standard limited warranty on the workmanship of its products that in most cases covers defects for a defined period. Warranties for certified emission products are mandated by the U.S. Environmental Protection Agency (the “EPA”) and/or the California Air Resources Board (the “CARB”) and are longer than the Company’s standard warranty on certain emission related products. The Company’s products also carry limited warranties from suppliers. The Company’s warranties generally apply to engines fully manufactured by the Company and to the modifications the Company makes to supplier base products. Costs related to supplier warranty claims are generally borne by the supplier and passed through to the end customer.

Warranty estimates are based on historical experience and represent the projected cost associated with the product. A liability and related expense are recognized at the time products are sold. The Company adjusts estimates when it is determined that actual costs may differ from initial or previous estimates. The Company’s warranty liability is generally affected by failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change the estimates and require adjustments to the warranty liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.

Accrued product warranty activities are presented below:


(in thousands)	For the Three Months Ended March 31,
Accrued Product Warranty	2021		2020
Balance at beginning of period	$	31,542	$	25,501
Current year provision *	4,630		2,325

Changes in estimates for preexisting warranties **	4,119		661
Payments made during the period	(5,166)		(3,926)

Balance at end of period	35,125		24,561
Less: Current portion	17,073		14,027
Noncurrent accrued product warranty	$	18,052	$	10,534

*Warranty costs, net of supplier recoveries, were $6.8 million and $1.7 million for the three months ended March 31, 2021 and 2020, respectively. Supplier recoveries were $1.9 million and $1.2 million for the three months ended March 31, 2021 and 2020, respectively.

**Change in estimates for preexisting warranties reflect changes in the Company’s estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historical and expected trends. The Company recorded charges for changes in estimates of preexisting warranties of $4.1 million, or $0.18 per diluted share, and $0.7 million, or $0.03 per diluted share, for the three months ended March 31, 2021 and 2020, respectively.

Recently Issued Accounting Pronouncements – Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendment allows entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance was effective upon issuance and expires after December 31, 2022. There was no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, Statements of Cash Flows or Statement of Stockholders’ Equity as a result of this guidance. The Company continues to monitor contracts potentially impacted by reference rate reform, including the Company’s debt agreements, and will continue to assess the potential impacts of this guidance as reference rates are updated.

Recently Issued Accounting Pronouncements – Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which applies primarily to the Company’s accounts receivable impairment loss allowances. The guidance provides a revised model whereby the current expected credit losses are used to compute impairment of financial instruments. The new model requires evaluation of historical experience and various current and expected factors, which may affect the estimated amount of losses and requires determination of whether the affected financial instruments should be grouped in units of account. The guidance, as originally issued, was effective for fiscal years beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates, which deferred the effective dates of these standards for certain entities. Based on the guidance, the effective date of ASU 2016-13 is deferred for the Company until fiscal year 2023. The Company currently plans to adopt the guidance on January 1, 2023 when it becomes effective. The Company is continuing to assess the impact of the standard on its consolidated financial statements.

Revenue

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregation of Revenue

The following table summarizes net sales by end market:


(in thousands)	For the Three Months Ended March 31,
End Market	2021		2020
Energy	$	25,159	$	50,084
Industrial	34,320		37,131
Transportation	40,692		17,882
Total	$	100,171	$	105,097

The following table summarizes net sales by geographic area:


(in thousands)	For the Three Months Ended March 31,
Geographic Area	2021		2020
North America	$	91,915	$	94,520
Pacific Rim	5,528		6,454
Europe	1,610		2,657
Other	1,118		1,466
Total	$	100,171	$	105,097

Contract Balances

Most of the Company’s contracts are for a period of less than one year; however, certain long-term manufacturing and extended warranty contracts extend beyond one year. The timing of revenue recognition may differ from the time of invoicing to customers and these timing differences result in contract assets, or contract liabilities, on the Company’s Consolidated Balance Sheet. Contract assets include amounts related to the contractual right to consideration for completed performance when the right to consideration is conditional. The Company records contract liabilities when cash payments are received or due in advance of performance. Contract assets and contract liabilities are recognized at the contract level.


(in thousands)	As of March 31, 2021		As of December 31, 2020
Short-term contract assets (included in Prepaid expenses and other current assets)	$	250	$	547

Short-term contract liabilities (included in Other accrued liabilities)	(32,978)		(47,960)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,087)		(3,181)
Net contract liabilities	$	(35,815)	$	(50,594)

During the three months ended March 31, 2021 and 2020, the Company recognized $14.9 million and $3.0 million, respectively, of revenue upon satisfaction of performance obligations related to amounts that were included in the net contract liabilities balance as of December 31, 2020 and 2019, respectively. The decrease in the contract asset during the three months ended March 31, 2021 is related to the Company’s right to consideration no longer being conditional at the end of the period. The decrease in the contract liabilities during the three months ended March 31, 2021 was primarily related to revenue recognized upon satisfaction of performance obligations related to 6.0L engines that were previously prepaid by a customer under a long-term supply agreement.

Remaining Performance Obligations

For performance obligations that extend beyond one year, the Company had $35.7 million of remaining performance obligations as of March 31, 2021 primarily related to a long-term manufacturing contract with a customer and extended warranties. The Company expects to recognize revenue related to these remaining performance obligations of approximately $32.5 million in the remainder of 2021, $0.7 million in 2022, $1.0 million in 2023, $1.0 million in 2024, $0.4 million in 2025 and less than $0.1 million in 2026 and beyond.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Weichai Transactions

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Weichai Transactions

Weichai Shareholder’s Loan Agreement

In December 2020, the Company entered into the Shareholder’s Loan Agreement with Weichai. The Shareholder’s Loan Agreement was amended and restated in March 2021. See additional discussion in Note 6. Debt.

Weichai Collaboration Arrangement and Related Party Transactions

The Company and Weichai executed a strategic collaboration agreement (the “Collaboration Agreement”) in March 2017, in order to achieve their respective strategic objectives and enhance the strategic cooperation alliance to share experiences, expertise and resources. Among other things, the Collaboration Agreement established a joint steering committee, permitted Weichai to second a limited number of certain technical, marketing, sales, procurement and finance personnel to work at the Company and established several collaborations related to stationary natural-gas applications and Weichai diesel engines. The Collaboration Agreement provided for the steering committee to create various sub-committees with operating roles and otherwise governs the treatment of intellectual property of parties prior to the collaboration and the intellectual property developed during the collaboration. The Collaboration Agreement is set to expire in March 2023.

The Company evaluates whether an arrangement is a collaborative arrangement at its inception based on the facts and circumstances specific to the arrangement. The Company also reevaluates whether an arrangement qualifies or continues to qualify as a collaborative arrangement whenever there is a change in either the roles of the participants or the participants’ exposure to significant risks and rewards dependent on the ultimate commercial success of the endeavor. For those collaborative arrangements where it is determined that the Company is the principal participant, costs incurred, and revenue generated from third parties are recorded on a gross basis in the financial statements. For the three months ended March 31, 2021 and 2020, the Company’s sales to Weichai were immaterial in all periods. Purchases of inventory from Weichai were $3.1 million and $5.1 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had immaterial receivables from Weichai and outstanding payables to Weichai of $5.0 million and $4.0 million, respectively.Stockholders’ Equity

Common and Treasury Stock

The changes in shares of Common and Treasury Stock are as follows:


(in thousands)	Common Shares Issued	Treasury Stock Shares	Common Shares Outstanding
Balance at December 31, 2020	23,117	225	22,892
Net shares issued for Stock awards	—	—	—



Balance as of March 31, 2021	23,117	225	22,892

Property, Plant and Equipment

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment by type were as follows:


(in thousands)	As of March 31, 2021		As of December 31, 2020
Property, Plant and Equipment


Leasehold improvements	$	6,560	$	6,725
Machinery and equipment	43,481		43,030
Construction in progress	1,228		1,670
Total property, plant and equipment, at cost	51,269		51,425
Accumulated depreciation	(31,869)		(31,244)
Property, plant and equipment, net	$	19,400	$	20,181

Goodwill and Other Intangibles

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill

The carrying amount of goodwill at both March 31, 2021 and December 31, 2020 was $29.8 million. Accumulated impairment losses at both March 31, 2021 and December 31, 2020 were $11.6 million.

Other Intangible Assets

Components of intangible assets are as follows:


(in thousands)	As of March 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	34,940	$	(25,717)	$	9,223
Developed technology	700		(657)		43
Trade names and trademarks	1,700		(1,281)		419
Total	$	37,340	$	(27,655)	$	9,685


(in thousands)	As of December 31, 2020
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	34,940	$	(25,117)	$	9,823
Developed technology	700		(650)		50
Trade names and trademarks	1,700		(1,254)		446
Total	$	37,340	$	(27,021)	$	10,319

Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

The Company’s outstanding debt consisted of the following:


(in thousands)	As of March 31, 2021		As of December 31, 2020
Short-term financing:
Revolving credit facility	$	130,000	$	130,000


Long-term debt:



Finance leases and other debt	987		1,091

Total long-term debt and finance leases	987		1,091
Less: Current maturities of long-term debt and finance leases	292		310
Long-term debt	$	695	$	781

*Unamortized financing costs and deferred fees on the revolving credit facility are not presented in the above table as they are classified in Prepaid expenses and other current assets on the Consolidated Balance Sheet. Unamortized debt issuance costs, were $1.9 million and $1.1 million as of March 31, 2021 and December 31, 2020, respectively.

Credit Agreement and Shareholders’ Loan Agreement

On March 26, 2021, the Company entered into the Amended and Restated Uncommitted Revolving Credit Agreement with Standard Chartered. The Amended and Restated Uncommitted Revolving Credit Agreement allows the Company to borrow up to $130.0 million (all of which has been fully borrowed as of March 31, 2021), is uncommitted, and matures on March 25, 2022. Borrowings under the Amended and Restated Uncommitted Revolving Credit Agreement shall bear interest at either the alternate base rate or LIBOR plus 2.70%. In addition, the Company paid fees of $1.9 million related to the Amended and Restated Uncommitted Revolving Credit Agreement, which were deferred and will be amortized over the term of the Amended and Restated Uncommitted Revolving Credit Agreement. The Amended and Restated Uncommitted Revolving Credit Agreement is secured by substantially all of the Company’s assets and includes financial covenants related to the Company’s financial performance for the second, third, and fourth quarters of 2021. There were no financial covenants applicable to the first quarter of 2021. The Amended and Restated Uncommitted Revolving Credit Agreement gives Standard Chartered the right to demand payment of any and all of the outstanding borrowings and other amounts owed under the Amended and Restated Uncommitted Revolving Credit Agreement at any point in time prior to the maturity date at Standard Chartered’s discretion. Furthermore, the Amended and Restated Uncommitted Revolving Credit Agreement grants Standard Chartered a POA to submit a borrowing request to Weichai under the amended Shareholder’s Loan Agreement (see discussion below) if the Company does not submit a borrowing request to Weichai within five business days of receiving a request from Standard Chartered to submit said borrowing request.

In connection with the Amended and Restated Uncommitted Revolving Credit Agreement, the Company entered into the First Amended and Restated Shareholder’s Loan Agreement with Weichai. The First Amended and Restated Shareholder’s Loan Agreement provides the Company with a $130.0 million secured subordinated loan facility that expires on April 25, 2022. Under the First Amended and Restated Shareholder’s Loan Agreement, Weichai is obligated to advance funds solely for purposes of repaying outstanding borrowings under the Amended and Restated Uncommitted Revolving Credit Agreement if the Company is unable to repay such borrowings. Any potential borrowings under the First Amended and Restated Shareholder’s Loan Agreement would bear interest at LIBOR plus 4.50% per annum.

See Note 1. Summary of Significant Accounting Policies and Other Information for further discussion of the Company’s going concern considerations.

Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between May 2021 and August 2034. For the three months ended March 31, 2021, the Company recorded lease expense of $1.5 million within Cost of sales, $0.1 million within Research, development, and engineering expenses, less than $0.1 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively. For the three months ended March 31, 2020, the Company recorded lease expense of $1.8 million within Cost of sales, $0.1 million within Research, development and engineering expenses, $0.1 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively.

The following table summarizes the components of lease expense:


(in thousands)	Three Months Ended March 31,
	2021		2020

Operating lease cost	$	1,242	$	1,379
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		52
Interest expense	10		13
Short-term lease cost	102		110
Variable lease cost	338		423
Total lease cost	$	1,744	$	1,977

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Three Months Ended March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	1,257	$	1,373
Operating cash flows paid for interest portion of finance leases	10		13
Financing cash flows paid for principal portion of finance leases	51		48
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		—
Finance leases	—		—

As of March 31, 2021 and December 31, 2020, the weighted-average remaining lease term was 6.1 years and 6.2 years for operating leases and 3.7 years and 3.8 years for finance leases, respectively. The weighted-average discount rate was 7.1% for operating leases as of both March 31, 2021 and December 31, 2020 and 6.7% for finance leases as of both March 31, 2021 and December 31, 2020.

The following table presents supplemental balance sheet information related to leases:


(in thousands)	March 31, 2021		December 31, 2020

Operating lease ROU assets, net 1	$	16,177	$	17,104

Operating lease liabilities, current 2	3,809		3,793
Operating lease liabilities, non-current 3	13,197		14,156
Total operating lease liabilities	$	17,006	$	17,949

Finance lease ROU assets, net 1	$	508	$	568

Finance lease liabilities, current 2	198		200
Finance lease liabilities, non-current 3	357		413
Total finance lease liabilities	$	555	$	613

1.Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

2.Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.

3.Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of March 31, 2021:


(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2021	$	3,691	$	184
Year ending December 31, 2022	4,788		177
Year ending December 31, 2023	3,283		103
Year ending December 31, 2024	1,813		84
Year ending December 31, 2025	1,851		62
Thereafter	5,546		16
Total undiscounted lease payments	20,972		626
Less: imputed interest	3,966		71
Total lease liabilities	$	17,006	$	555

Leases

The following table summarizes the components of lease expense:


(in thousands)	Three Months Ended March 31,
	2021		2020

Operating lease cost	$	1,242	$	1,379
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		52
Interest expense	10		13
Short-term lease cost	102		110
Variable lease cost	338		423
Total lease cost	$	1,744	$	1,977

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Three Months Ended March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	1,257	$	1,373
Operating cash flows paid for interest portion of finance leases	10		13
Financing cash flows paid for principal portion of finance leases	51		48
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		—
Finance leases	—		—

The following table presents supplemental balance sheet information related to leases:


(in thousands)	March 31, 2021		December 31, 2020

Operating lease ROU assets, net 1	$	16,177	$	17,104

Operating lease liabilities, current 2	3,809		3,793
Operating lease liabilities, non-current 3	13,197		14,156
Total operating lease liabilities	$	17,006	$	17,949

Finance lease ROU assets, net 1	$	508	$	568

Finance lease liabilities, current 2	198		200
Finance lease liabilities, non-current 3	357		413
Total finance lease liabilities	$	555	$	613

1.Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

2.Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.

3.Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of March 31, 2021:


(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2021	$	3,691	$	184
Year ending December 31, 2022	4,788		177
Year ending December 31, 2023	3,283		103
Year ending December 31, 2024	1,813		84
Year ending December 31, 2025	1,851		62
Thereafter	5,546		16
Total undiscounted lease payments	20,972		626
Less: imputed interest	3,966		71
Total lease liabilities	$	17,006	$	555

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair-value measurement as follows:

•Level 1 – based on quoted prices in active markets for identical assets or liabilities;

•Level 2 – based on other significant observable inputs for the assets or liabilities through corroborations with market data at the measurement date; and

•Level 3 – based on significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.

Financial Instruments Measured at Carrying Value

Current Assets

Cash and cash equivalents are measured at carrying value, which approximates fair value because of the short-term maturities of these instruments.

Debt

The Company measured its revolving credit facility at original carrying value. Unamortized financing costs and deferred fees on the revolving credit facility are classified in Prepaid expenses and other current assets on the Consolidated Balance Sheet. The fair value of the revolving credit facility approximated carrying value, as it consisted of short-term variable rate loans.


(in thousands)	As of March 31, 2021
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—


(in thousands)	As of December 31, 2020
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Contingencies The legal matters discussed below and others could result in losses, including damages, fines, civil penalties and criminal charges, which could be substantial. The Company records accruals for these contingencies to the extent the Company concludes that a loss is both probable and reasonably estimable. Regarding the matters disclosed below, unless otherwise disclosed, the Company has determined that liabilities associated with these legal matters are reasonably possible; however, unless otherwise stated, the possible loss or range of possible loss cannot be reasonably estimated. Given the nature of the litigation and investigations and the complexities involved, the Company is unable to reasonably estimate a possible loss for all such matters until the Company knows, among other factors, the following: •what claims, if any, will survive dispositive motion practice; •the extent of the claims, particularly when damages are not specified or are indeterminate; •how the discovery process will affect the litigation; •the settlement posture of the other parties to the litigation; and •any other factors that may have a material effect on the litigation or investigation. However, the Company could incur judgments, enter into settlements or revise its expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on the Company’s results of operations in the period in which the amounts are accrued and/or liquidity in the period in which the amounts are paid. Securities and Exchange Commission and United States Attorney’s Office for the Northern District of Illinois Investigations In September 2020, the Company entered into agreements with the SEC and United States Attorney’s Office for the Northern District of Illinois (the “USAO”) to resolve the investigations into the Company’s past revenue recognition practices. As further discussed in Part II. Item 8. Financial Statements and Supplementary Data., Note 10. Commitments and Contingencies of the Company’s 2020 Form 10-K, under the settled administrative order with the SEC, the Company committed to remediate the deficiencies in its internal control over financial reporting that constituted material weaknesses identified in its 2017 Form 10-K filed in May 2019 by April 30, 2021 unless an extension was provided by the SEC. On April 12, 2021, the SEC granted the Company’s request for an extension of time until March 31, 2022 in which to comply with the requirements of the administrative order to remediate the remaining outstanding material weaknesses. Jerome Treadwell v. the Company In October 2018, a putative class-action complaint was filed against the Company and NOVAtime Technology, Inc. (“NOVAtime”) in the Circuit Court of Cook County, Illinois. In December 2018, NOVAtime removed the case to the U.S. District Court for the Northern District of Illinois, Eastern Division under the Class Action Fairness Act. Plaintiff has since voluntarily dismissed NOVAtime from the lawsuit without prejudice and filed an amended complaint in April 2019. The operative, amended complaint asserts violations of the Illinois Biometric Information Privacy Act (“BIPA”) in connection with employees’ use of the time clock to clock in and clock out using a finger scan and seeks statutory damages, attorneys’ fees, and injunctive and equitable relief. An aggrieved party under BIPA may recover (i) $1,000 per violation if the Company is found to have negligently violated BIPA or (ii) $5,000 per violation if the Company is found to have intentionally or recklessly violated BIPA plus reasonable attorneys’ fees. In May 2019, the Company filed its motion to dismiss the plaintiff’s amended complaint. In December 2019, the court denied the Company’s motion to dismiss. In January 2020, the Company moved for reconsideration of the court’s order denying the motion to dismiss, or in the alternative, to stay the case pending the Illinois Appellate Court’s ruling in McDonald v. Symphony Healthcare on a legal question that would be potentially dispositive in this matter. In February 2020, the court denied the Company’s motion for reconsideration, but required the parties to submit additional briefing on the Company’s motion to stay. In April 2020, the court granted the Company’s motion to stay and stayed the case pending the Illinois Appellate Court’s ruling in McDonald v. Symphony Healthcare. In October 2020, after the McDonald ruling, the court granted the parties’ joint request to continue the stay of the case for 60 days. The court also ordered the parties to schedule a settlement conference with the Magistrate Judge which has been scheduled for late May 2021. The stay remains in place through the scheduled settlement conference. The parties have engaged in preliminary settlement discussions in advance of the settlement conference. As of March 31, 2021 and December 31, 2020, the Company recorded an estimated liability of $0.3 million related to the potential settlement of this matter. Mast Powertrain v. the Company In February 2020, the Company received a demand for arbitration from Mast Powertrain, LLC (“Mast”) pursuant to a development agreement entered into in November 2011 (the “Development Agreement”). Mast claimed that it is owed more than $9.0 million in past royalties and other damages for products sold by the Company pursuant to the Development Agreement. The Company has disputed Mast’s damages, denied that any royalties are owed to Mast, denied any liability, and counterclaimed for overpayment on invoices paid to Mast. Mast has subsequently clarified its claim for past royalties owed to be approximately $4.5 million. Arbitration is anticipated to occur in the Fall of 2021; however, the Company has engaged in preliminary settlement negotiations with Mast. As of March 31, 2021 and December 31, 2020, the Company had recognized an estimated liability of $1.5 million within Other accrued liabilities related to the potential settlement of this matter. Indemnification Agreements Under the Company’s bylaws and certain indemnification agreements, the Company has obligations to indemnify current and former officers and directors and certain current and former employees. As a result of cumulative legal fees and settlements previously paid, the Company fully exhausted its primary directors’ and officers’ insurance coverage of $30 million during the first quarter of 2020. Additional expenses currently expected to be incurred and that will occur in the future and/or liabilities that may be imposed in connection with actions against certain of the Company’s past and present directors and officers and certain current and former employees who are entitled to indemnification will be funded by the Company with its existing cash resources. The Company accrues for such costs as incurred within Selling, general and administrative expenses in the Company’s Consolidated Statements of Operations. For the three months ended March 31, 2021 and 2020, the Company incurred $3.2 million and $1.3 million, respectively, of costs related to these indemnification obligations. Included in the total indemnification obligations incurred for the three months ended March 31, 2021 and 2020 are costs of $1.9 million and $1.2 million, respectively, that the Company incurred on behalf of Gary Winemaster, former Chairman of the Board and former Chief Executive Officer and President, who is also a related party. At this time, the Company is not able to estimate the impact of these obligations due to the actions ongoing; however, the impact may be material to the Company’s results of operations, financial condition, and cash flows. In June 2020, the Company entered into a new directors’ and officers’ liability insurance policy. The insurance policy includes standard exclusions including for any ongoing or pending litigation such as the previously disclosed investigations by the SEC and USAO. Other Commitments At March 31, 2021, the Company had six outstanding letters of credit totaling $2.3 million. The letters of credit primarily serve as collateral for the Company for certain facility leases and insurance policies. As discussed in Note 1. Summary of Significant Accounting Policies and Other Information, the Company had restricted cash of $3.3 million as of March 31, 2021 related to these letters of credit. The Company has arrangements with certain suppliers that require it to purchase minimum volumes or be subject to monetary penalties. As discussed in Note 1. Summary of Significant Accounting Policies and Other Information, oil prices have increased from their lows reached in April 2020. However, rig counts in the U.S. remain below the average for the full year of 2019 and the first quarter of 2020. This has impacted the demand for the Company’s products sold into the oil and gas market. Based on current and forecasted demand of the Company’s products, current and forecasted oil prices for 2021 and the significant lead time for the Company to order and acquire certain materials, the Company does not expect to meet the minimum purchase commitment for 2021 related to one of its supply agreements and recorded an expense of $1.0 million within Cost of sales in the Consolidated Statement of Operations for the three months ended March 31, 2021.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On a quarterly basis, the Company computes an estimated annual effective tax rate considering ordinary income and related income tax expense. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs. The Company has assessed the need to maintain a valuation allowance for deferred tax assets based on an assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. In assessing the realizability of the Company’s deferred tax assets, the Company considered whether it is more likely than not that some or all of the deferred tax assets will be realized through the generation of future taxable income. In making this determination, the Company assessed all of the evidence available at the time, including recent earnings, forecasted income projections and historical performance. The Company determined that the negative evidence outweighed the objectively verifiable positive evidence and continues to maintain a full valuation allowance against deferred tax assets. The effective tax rate for the three months ended March 31, 2021 was -2.2%, compared to an effective tax rate for the three months ended March 31, 2020 of 85.0%. The effective tax rates for all periods were significantly different than the applicable U.S. statutory tax rate. For the three months ended March 31, 2021, the difference between the effective and statutory tax rates was primarily due to the Company’s full valuation allowance. For the three months ended March 31, 2020, the difference between the effective and statutory tax rates was primarily due to the impact of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), a change in the deferred tax liability related to an indefinite-lived intangible asset and the Company’s full valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Stockholders' Equity

Weichai Transactions

Weichai Shareholder’s Loan Agreement

Weichai Collaboration Arrangement and Related Party Transactions

Common and Treasury Stock

The changes in shares of Common and Treasury Stock are as follows:


(in thousands)	Common Shares Issued	Treasury Stock Shares	Common Shares Outstanding
Balance at December 31, 2020	23,117	225	22,892
Net shares issued for Stock awards	—	—	—



Balance as of March 31, 2021	23,117	225	22,892

Loss Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Loss Per Share

The Company computes basic earnings (loss) per share by dividing net income (loss) by the weighted-average common shares outstanding during the year. Diluted earnings (loss) 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 primarily reflect the additional shares that would be issued upon the assumed exercise of stock options and the assumed vesting of unvested share awards. The treasury stock method has been used to compute diluted loss per share for the three months ended March 31, 2021 and 2020.

The Company issued Stock Appreciation Rights (“SARs”) and Restricted Stock Awards (“RSAs”), all of which have been evaluated for their potentially dilutive effect under the treasury stock method. See Note 13. Stock-Based Compensation in the Company’s 2020 Annual Report for additional information on the SARs and the RSAs.

The computations of basic and diluted loss per share are as follows:


(in thousands, except per share basis)	For the Three Months Ended March 31,
	2021		2020
Numerator:
Net loss	$	(18,150)	$	(712)





Denominator:
Shares used in computing net loss per share:
Weighted-average common shares outstanding – basic	22,892		22,858
Effect of dilutive securities	—		—
Weighted-average common shares outstanding – diluted	22,892		22,858

Loss per common share:
Loss per share of common stock – basic	$	(0.79)	$	(0.03)
Loss per share of common stock – diluted	$	(0.79)	$	(0.03)

The aggregate number of shares excluded from the diluted loss per share calculations, because they would have been anti-dilutive, were 0.2 million shares for both the three months ended March 31, 2021 and 2020. For the three months ended March 31, 2021 and 2020, SARs and RSAs were not included in the diluted loss per share calculations as they would have been anti-dilutive (1) due to the losses reported in the Consolidated Statements of Operations or (2) the Company’s average stock price was less than the exercise price of the SARs or the grant price of the RSAs.

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Weichai Transactions See Note 3. Weichai Transactions for information regarding the Amended and Restated Shareholder’s Loan Agreement and the Collaboration Agreement with Weichai. Transactions with Joint Ventures MAT-PSI Holdings, LLC In December 2012, the Company and MAT Holdings, Inc. (“MAT”) entered into an agreement to create MAT-PSI Holdings, LLC (“MAT-PSI”), which was intended to be a holding company of its 100% Chinese wholly-owned foreign entity, referred to as Green Power. The Company invested $0.9 million for its 50% share of MAT-PSI, which was formed to manufacture, assemble and supply natural gas, gas and alternative-fueled power systems to Chinese and Asian forklift customers. The venture established a production facility in Dalian and also sourced base engines from a local Chinese factory. As MAT-PSI was not profitable, the venture was closed in 2017; however, the Company had previously been in dispute with Green Power related to the wind up of the joint venture and outstanding receivables. On March 29, 2021, the Company executed a settlement agreement with MAT and Green Power which resolved the dispute. The final settlement agreement did not have a material impact on the Company’s consolidated financial statements. Doosan-PSI, LLC In 2015, the Company and Doosan Infracore Co., Ltd. (“Doosan”), a subsidiary of Doosan Group, entered into an agreement to form Doosan-PSI, LLC. The Company invested $1.0 million to acquire 50% of the venture, which was formed to operate in the field of developing, designing, testing, manufacturing, assembling, branding, marketing, selling, distributing and providing support for industrial gas engines and all components and materials required for assembly of the gas engines to the global power generation market outside of North America and South Korea. In the fourth quarter of 2019, Doosan and the Company agreed to wind down and dissolve the joint venture. This is expected to be completed in 2021. Joint Venture Operating Results The Company’s investments in joint ventures are accounted for under the equity method of accounting. The Company’s Consolidated Statements of Operations included no equity earnings from this investment for the three months ended March 31, 2021. Income from this investment was $0.2 million for the three months ended March 31, 2020. The joint venture operating results are presented in Other income, net in the Company’s Consolidated Statements of Operations. Other Related Party Transactions See Note 9. Commitments and Contingencies for information regarding the Company’s indemnification obligations related to certain former directors and officers of the Company.

Summary of Significant Accounting Policies and Other Information (Policies)	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	The consolidated financial statements include the accounts of Power Solutions International, Inc. and its wholly-owned subsidiaries and majority-owned subsidiaries in which the Company exercises control. The foregoing financial information was prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. All intercompany balances and transactions have been eliminated in consolidation.
Basis of Presentation	Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying consolidated financial statements should be read in conjunction with, and have been prepared in accordance with accounting policies reflected in, the consolidated financial statements and related notes, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“the 2020 Annual Report”). The Company’s significant accounting policies are described in the aforementioned 2020 Annual Report. Included below are certain updates to those policies. The accompanying interim financial information is unaudited; however, the Company believes the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP. Operating results for interim periods are not necessarily indicative of annual operating results.
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. GAAP requires that management 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions include the valuation of allowances for uncollectible receivables, inventory reserves, warranty reserves, evaluation of goodwill, other intangibles, property, plant and equipment for impairment, and determination of useful lives of long-lived assets. Actual results could materially differ from those estimates.
Research and Development	R&D expenses are expensed when incurred. R&D expenses consist primarily of wages, materials, testing and consulting related to the development of new engines, parts and applications.
Restricted Cash	The Company is required to maintain minimum levels of cash collateral to support the letters of credit. The cash collateral is held in a separate bank account which the Company is restricted from accessing.
Inventories	The Company’s inventories consist primarily of engines and parts. Engines are valued at the lower of cost plus estimated freight-in or net realizable value. Parts are valued at the lower of cost or net realizable value. Net realizable value approximates replacement cost. Cost is principally determined using the first-in, first-out method and includes material, labor and manufacturing overhead. It is the Company’s policy to review inventories on a continuing basis for obsolete, excess and slow-moving items and to record valuation adjustments for such items in order to eliminate non-recoverable costs from inventory. Valuation adjustments are recorded in an inventory reserve account and reduce the cost basis of the inventory in the period in which the reduced valuation is determined. Inventory reserves are established based on quantities on hand, usage and sales history, customer orders, projected demand and utilization within a current or future power system. Specific analysis of individual items or groups of items is performed based on these same criteria, as well as on changes in market conditions or any other identified conditions.
Warranty Costs	The Company offers a standard limited warranty on the workmanship of its products that in most cases covers defects for a defined period. Warranties for certified emission products are mandated by the U.S. Environmental Protection Agency (the “EPA”) and/or the California Air Resources Board (the “CARB”) and are longer than the Company’s standard warranty on certain emission related products. The Company’s products also carry limited warranties from suppliers. The Company’s warranties generally apply to engines fully manufactured by the Company and to the modifications the Company makes to supplier base products. Costs related to supplier warranty claims are generally borne by the supplier and passed through to the end customer. Warranty estimates are based on historical experience and represent the projected cost associated with the product. A liability and related expense are recognized at the time products are sold. The Company adjusts estimates when it is determined that actual costs may differ from initial or previous estimates. The Company’s warranty liability is generally affected by failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change the estimates and require adjustments to the warranty liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.
Recently Issued Accounting Pronouncements - Adopted and Not Yet Adopted	Recently Issued Accounting Pronouncements – Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendment allows entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance was effective upon issuance and expires after December 31, 2022. There was no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, Statements of Cash Flows or Statement of Stockholders’ Equity as a result of this guidance. The Company continues to monitor contracts potentially impacted by reference rate reform, including the Company’s debt agreements, and will continue to assess the potential impacts of this guidance as reference rates are updated. Recently Issued Accounting Pronouncements – Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which applies primarily to the Company’s accounts receivable impairment loss allowances. The guidance provides a revised model whereby the current expected credit losses are used to compute impairment of financial instruments. The new model requires evaluation of historical experience and various current and expected factors, which may affect the estimated amount of losses and requires determination of whether the affected financial instruments should be grouped in units of account. The guidance, as originally issued, was effective for fiscal years beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates, which deferred the effective dates of these standards for certain entities. Based on the guidance, the effective date of ASU 2016-13 is deferred for the Company until fiscal year 2023. The Company currently plans to adopt the guidance on January 1, 2023 when it becomes effective. The Company is continuing to assess the impact of the standard on its consolidated financial statements.

- Definition

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

+ References + Details

Summary of Significant Accounting Policies and Other Information (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedules of Concentration of Risk, by Risk Factor

The following table presents customers individually accounting for more than 10% of the Company’s net sales:


	For the Three Months Ended March 31,
	2021		2020

Customer A	15	%	15	%
Customer B	20	%	**
Customer C	**		14	%

Customer D	**		10	%

The following table presents customers individually accounting for more than 10% of the Company’s accounts receivable:


	As of March 31, 2021		As of December 31, 2020
Customer A	23	%	16	%
Customer B	13	%	**
Customer C	**		22	%

The following table presents suppliers individually accounting for more than 10% of the Company’s purchases:


	For the Three Months Ended March 31,
	2021		2020
Supplier A	14	%	**
Supplier B	10	%	**
Supplier C	**		11	%

**Less than 10% of the total

Schedule of Inventory, Current

Inventories consisted of the following:


(in thousands) Inventories	As of March 31, 2021		As of December 31, 2020
Raw materials	$	85,595	$	89,684
Work in process	6,552		2,482
Finished goods	20,653		19,375
Total inventories	112,800		111,541
Inventory allowance	(3,708)		(3,328)
Inventories, net	$	109,092	$	108,213

Activity in the Company’s inventory allowance was as follows:


(in thousands)	For the Three Months Ended March 31,
Inventory Allowance	2021		2020
Balance at beginning of period	$	3,328	$	2,964
Charged to expense	553		526
Write-offs	(173)		(273)
Balance at end of period	$	3,708	$	3,217

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:


(in thousands) Other Accrued Liabilities	As of March 31, 2021		As of December 31, 2020
Accrued product warranty	$	17,073	$	14,928
Litigation reserves *	4,129		3,128
Contract liabilities	32,978		47,960
Accrued compensation and benefits	3,172		3,124
Operating lease liabilities	3,809		3,793

Accrued interest expense	33		895

Other	5,271		3,791
Total	$	66,465	$	77,619

Schedule of Accrued Product Warranty

Accrued product warranty activities are presented below:


(in thousands)	For the Three Months Ended March 31,
Accrued Product Warranty	2021		2020
Balance at beginning of period	$	31,542	$	25,501
Current year provision *	4,630		2,325

Changes in estimates for preexisting warranties **	4,119		661
Payments made during the period	(5,166)		(3,926)

Balance at end of period	35,125		24,561
Less: Current portion	17,073		14,027
Noncurrent accrued product warranty	$	18,052	$	10,534

Revenue (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Geographic Areas

The following table summarizes net sales by end market:


(in thousands)	For the Three Months Ended March 31,
End Market	2021		2020
Energy	$	25,159	$	50,084
Industrial	34,320		37,131
Transportation	40,692		17,882
Total	$	100,171	$	105,097

The following table summarizes net sales by geographic area:


(in thousands)	For the Three Months Ended March 31,
Geographic Area	2021		2020
North America	$	91,915	$	94,520
Pacific Rim	5,528		6,454
Europe	1,610		2,657
Other	1,118		1,466
Total	$	100,171	$	105,097

Schedule of Contract Balances


(in thousands)	As of March 31, 2021		As of December 31, 2020
Short-term contract assets (included in Prepaid expenses and other current assets)	$	250	$	547

Short-term contract liabilities (included in Other accrued liabilities)	(32,978)		(47,960)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,087)		(3,181)
Net contract liabilities	$	(35,815)	$	(50,594)

Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment by type were as follows:


(in thousands)	As of March 31, 2021		As of December 31, 2020
Property, Plant and Equipment


Leasehold improvements	$	6,560	$	6,725
Machinery and equipment	43,481		43,030
Construction in progress	1,228		1,670
Total property, plant and equipment, at cost	51,269		51,425
Accumulated depreciation	(31,869)		(31,244)
Property, plant and equipment, net	$	19,400	$	20,181

Goodwill and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Components of intangible assets are as follows:


(in thousands)	As of March 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	34,940	$	(25,717)	$	9,223
Developed technology	700		(657)		43
Trade names and trademarks	1,700		(1,281)		419
Total	$	37,340	$	(27,655)	$	9,685


(in thousands)	As of December 31, 2020
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	34,940	$	(25,117)	$	9,823
Developed technology	700		(650)		50
Trade names and trademarks	1,700		(1,254)		446
Total	$	37,340	$	(27,021)	$	10,319

Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s outstanding debt consisted of the following:


(in thousands)	As of March 31, 2021		As of December 31, 2020
Short-term financing:
Revolving credit facility	$	130,000	$	130,000


Long-term debt:



Finance leases and other debt	987		1,091

Total long-term debt and finance leases	987		1,091
Less: Current maturities of long-term debt and finance leases	292		310
Long-term debt	$	695	$	781

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Components of Lease Expense and Cash Flow Information

The following table summarizes the components of lease expense:


(in thousands)	Three Months Ended March 31,
	2021		2020

Operating lease cost	$	1,242	$	1,379
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		52
Interest expense	10		13
Short-term lease cost	102		110
Variable lease cost	338		423
Total lease cost	$	1,744	$	1,977

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Three Months Ended March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	1,257	$	1,373
Operating cash flows paid for interest portion of finance leases	10		13
Financing cash flows paid for principal portion of finance leases	51		48
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		—
Finance leases	—		—

Supplemental Balance Sheet Information

The following table presents supplemental balance sheet information related to leases:


(in thousands)	March 31, 2021		December 31, 2020

Operating lease ROU assets, net 1	$	16,177	$	17,104

Operating lease liabilities, current 2	3,809		3,793
Operating lease liabilities, non-current 3	13,197		14,156
Total operating lease liabilities	$	17,006	$	17,949

Finance lease ROU assets, net 1	$	508	$	568

Finance lease liabilities, current 2	198		200
Finance lease liabilities, non-current 3	357		413
Total finance lease liabilities	$	555	$	613

1.Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

2.Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.

3.Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

Maturity Analysis of Operating Lease Liabilities

The following table presents maturity analysis of lease liabilities as of March 31, 2021:


(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2021	$	3,691	$	184
Year ending December 31, 2022	4,788		177
Year ending December 31, 2023	3,283		103
Year ending December 31, 2024	1,813		84
Year ending December 31, 2025	1,851		62
Thereafter	5,546		16
Total undiscounted lease payments	20,972		626
Less: imputed interest	3,966		71
Total lease liabilities	$	17,006	$	555

Maturity Analysis of Financing Lease Liabilities

The following table presents maturity analysis of lease liabilities as of March 31, 2021:


(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2021	$	3,691	$	184
Year ending December 31, 2022	4,788		177
Year ending December 31, 2023	3,283		103
Year ending December 31, 2024	1,813		84
Year ending December 31, 2025	1,851		62
Thereafter	5,546		16
Total undiscounted lease payments	20,972		626
Less: imputed interest	3,966		71
Total lease liabilities	$	17,006	$	555

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements at Reporting Date


(in thousands)	As of March 31, 2021
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—


(in thousands)	As of December 31, 2020
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of Common Stock Outstanding Roll Forward

The changes in shares of Common and Treasury Stock are as follows:


(in thousands)	Common Shares Issued	Treasury Stock Shares	Common Shares Outstanding
Balance at December 31, 2020	23,117	225	22,892
Net shares issued for Stock awards	—	—	—



Balance as of March 31, 2021	23,117	225	22,892

Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Basic and Diluted (Loss) Earnings Per Share

The computations of basic and diluted loss per share are as follows:


(in thousands, except per share basis)	For the Three Months Ended March 31,
	2021		2020
Numerator:
Net loss	$	(18,150)	$	(712)





Denominator:
Shares used in computing net loss per share:
Weighted-average common shares outstanding – basic	22,892		22,858
Effect of dilutive securities	—		—
Weighted-average common shares outstanding – diluted	22,892		22,858

Loss per common share:
Loss per share of common stock – basic	$	(0.79)	$	(0.03)
Loss per share of common stock – diluted	$	(0.79)	$	(0.03)

Summary of Significant Accounting Policies and Other Information - Narrative (Details)	1 Months Ended	3 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2021 USD ($) boardMember segment $ / shares	Mar. 31, 2020 USD ($)	Mar. 26, 2021 USD ($) day	Dec. 31, 2020 USD ($) $ / shares
Concentration Risk [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001			$ 0.001
Number of board members \| boardMember		4
Number of operating segments \| segment		1
Research and development and engineering expenses		$ 6,000,000.0	$ 6,400,000
Outstanding letters of credit amount		2,300,000
Restricted cash		$ 3,299,000	$ 0		$ 3,299,000
Share Purchase Agreement, Weichai Transaction
Concentration Risk [Line Items]
Consideration received on transaction	$ 60,000,000.0
Revolving Credit Facility \| Standard Chartered Bank Credit Agreement
Concentration Risk [Line Items]
Borrowing amount				$ 130,000,000.0
Revolving Credit Facility \| Shareholder's Loan Agreement, Weichai
Concentration Risk [Line Items]
Number of days to submit borrowing request \| day				5

Summary of Significant Accounting Policies and Other Information - Schedules of Concentration of Risk, by Risk Factor (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Purchases \| Supplier Concentration Risk \| Supplier A
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%
Purchases \| Supplier Concentration Risk \| Supplier B
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Purchases \| Supplier Concentration Risk \| Supplier C
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%
Customer A \| Net Sales \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%	15.00%
Customer A \| Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	23.00%		16.00%
Customer B \| Net Sales \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	20.00%
Customer B \| Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%
Customer C \| Net Sales \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%
Customer C \| Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage			22.00%
Customer D \| Net Sales \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%

Summary of Significant Accounting Policies and Other Information - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Inventories
Raw materials	$ 85,595		$ 89,684
Work in process	6,552		2,482
Finished goods	20,653		19,375
Total inventories	112,800		111,541
Inventory allowance	(3,708)		(3,328)
Inventories, net	109,092		$ 108,213
Inventory Allowance
Balance at beginning of period	3,328	$ 2,964
Charged to expense	553	526
Write-offs	(173)	(273)
Balance at end of period	$ 3,708	$ 3,217

Summary of Significant Accounting Policies and Other Information - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued product warranty	$ 17,073	$ 14,928	$ 14,027
Litigation reserves	4,129	3,128
Contract liabilities	32,978	47,960
Accrued compensation and benefits	3,172	3,124
Operating lease liabilities	3,809	3,793
Accrued interest expense	33	895
Other	5,271	3,791
Total	$ 66,465	$ 77,619

Summary of Significant Accounting Policies and Other Information - Schedule of Product Warranty Liability (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accrued Product Warranty
Balance at beginning of period	$ 31,542	$ 25,501
Current year provision	4,630	2,325
Changes in estimates for preexisting warranties	4,119	661
Payments made during the period	(5,166)	(3,926)
Balance at end of period	35,125	24,561
Less: Current portion	17,073	14,027	$ 14,928
Noncurrent accrued product warranty	18,052	10,534
Warranty costs, net of supplier recoveries	6,800	1,700
Supplier recoveries	$ 1,900	$ 1,200
Diluted share (in dollars per share)	$ 0.18	$ 0.03

Revenue - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total	$ 100,171	$ 105,097
North America
Disaggregation of Revenue [Line Items]
Total	91,915	94,520
Pacific Rim
Disaggregation of Revenue [Line Items]
Total	5,528	6,454
Europe
Disaggregation of Revenue [Line Items]
Total	1,610	2,657
Other
Disaggregation of Revenue [Line Items]
Total	1,118	1,466
Energy
Disaggregation of Revenue [Line Items]
Total	25,159	50,084
Industrial
Disaggregation of Revenue [Line Items]
Total	34,320	37,131
Transportation
Disaggregation of Revenue [Line Items]
Total	$ 40,692	$ 17,882

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Short-term contract assets (included in Prepaid expenses and other current assets)	$ 250	$ 547
Short-term contract liabilities (included in Other accrued liabilities)	(32,978)	(47,960)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,087)	(3,181)
Net contract liabilities	$ (35,815)	$ (50,594)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 14.9	$ 3.0
Revenue, remaining performance obligation, amount	35.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 32.5
Revenue, remaining performance obligation, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 0.7
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1.0
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1.0
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 0.4
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 0.1
Revenue, remaining performance obligation, period

Weichai Transactions (Details) - USD ($) $ in Millions	3 Months Ended
Weichai Transactions (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Equity [Abstract]
Purchased inventory	$ 3.1	$ 5.1
Outstanding payables	$ 5.0		$ 4.0

Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 51,269	$ 51,425
Accumulated depreciation	(31,869)	(31,244)
Property, plant and equipment, net	19,400	20,181
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	6,560	6,725
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	43,481	43,030
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 1,228	$ 1,670

Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 29,835	$ 29,835
Accumulated impairment losses	$ 11,600	$ 11,600

Goodwill and Other Intangibles - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 37,340	$ 37,340
Accumulated Amortization	(27,655)	(27,021)
Net Book Value	9,685	10,319
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	34,940	34,940
Accumulated Amortization	(25,717)	(25,117)
Net Book Value	9,223	9,823
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	700	700
Accumulated Amortization	(657)	(650)
Net Book Value	43	50
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	1,700	1,700
Accumulated Amortization	(1,281)	(1,254)
Net Book Value	$ 419	$ 446

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Long-term debt:
Finance leases and other debt	$ 987	$ 1,091
Total long-term debt and finance leases	987	1,091
Less: Current maturities of long-term debt and finance leases	292	310
Long-term debt	695	781
Revolving credit facility
Short-term financing:
Revolving credit facility	130,000	130,000
Long-term debt:
Debt issuance costs	$ 1,900	$ 1,100

Debt - Narrative (Details) - Revolving Credit Facility	Mar. 26, 2021 USD ($) day
Standard Chartered Bank Credit Agreement
Debt Instrument [Line Items]
Borrowing amount	$ 130,000,000.0
Debt issuance costs, line of credit	$ 1,900,000
Standard Chartered Bank Credit Agreement \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.70%
Shareholder's Loan Agreement, Weichai
Debt Instrument [Line Items]
Number of days to submit borrowing request \| day	5
Shareholder's Loan Agreement, Weichai \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	4.50%

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	$ 1,744	$ 1,977
Weighted-average remaining lease term, operating leases	6 years 1 month 6 days		6 years 2 months 12 days
Weighted-average remaining lease term, financing leases	3 years 8 months 12 days		3 years 9 months 18 days
Weighted-average discount rate for operating leases	7.10%		7.10%
Weighted-average discount rate for financing leases	6.70%		6.70%
Cost of Sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	$ 1,500	1,800
Research, Development And Engineering Expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	100	100
Interest Expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	$ 100	100
Selling, General and Administrative Expenses
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense		$ 100

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 1,242	$ 1,379
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52	52
Interest expense	10	13
Short-term lease cost	102	110
Variable lease cost	338	423
Total lease cost	$ 1,744	$ 1,977

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$ 1,257	$ 1,373
Operating cash flows paid for interest portion of finance leases	10	13
Financing cash flows paid for principal portion of finance leases	51	48
Right-of-use assets obtained in exchange for lease obligations
Operating leases	0	0
Finance leases	$ 0	$ 0

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Operating Leases
Operating lease ROU assets, net	$ 16,177	$ 17,104
Operating lease liabilities, current	3,809	3,793
Operating lease liabilities, non-current	13,197	14,156
Total operating lease liabilities	17,006	17,949
Finance Leases
Finance lease ROU assets, net	508	568
Finance lease liabilities, current	198	200
Finance lease liabilities, non-current	357	413
Total finance lease liabilities	$ 555	$ 613
Operating ROU assets, net, statement of financial position, extensible list	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Finance ROU assets, net, statement of financial position, extensible list	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Operating lease liabilities, current, statement of financial position, extensible list	us-gaap:OtherAccruedLiabilitiesCurrent	us-gaap:OtherAccruedLiabilitiesCurrent
Finance lease liabilities, current, statement of financial position, extensible list	us-gaap:LongTermDebtCurrent	us-gaap:LongTermDebtCurrent
Operating lease liabilities, noncurrent, statement of financial position, extensible list	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Finance lease liabilities, noncurrent, statement of financial position, extensible list	us-gaap:LongTermDebtNoncurrent	us-gaap:LongTermDebtNoncurrent

Leases - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Operating Leases
Nine months ending December 31, 2021	$ 3,691
Year ending December 31, 2022	4,788
Year ending December 31, 2023	3,283
Year ending December 31, 2024	1,813
Year ending December 31, 2025	1,851
Thereafter	5,546
Total undiscounted lease payments	20,972
Less: imputed interest	3,966
Total lease liabilities	17,006	$ 17,949
Finance Leases
Nine months ending December 31, 2021	184
Year ending December 31, 2022	177
Year ending December 31, 2023	103
Year ending December 31, 2024	84
Year ending December 31, 2025	62
Thereafter	16
Total undiscounted lease payments	626
Less: imputed interest	71
Total lease liabilities	$ 555	$ 613

Fair Value of Financial Instruments - Schedule of Debt Instruments Measured at Fair Value (Details) - Revolving credit facility - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	$ 130,000	$ 130,000
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	130,000	130,000
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Revolving credit facility	0	0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Revolving credit facility	130,000	130,000
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Revolving credit facility	$ 0	$ 0

Commitments and Contingencies (Details)	1 Months Ended		3 Months Ended		13 Months Ended
Commitments and Contingencies (Details)	Feb. 29, 2020 USD ($)	Oct. 31, 2018 USD ($)	Mar. 31, 2021 USD ($) letterOfCredit	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Accrued penalties			$ 4,129,000		$ 4,129,000	$ 3,128,000
Insurance coverage				$ 30,000,000
Number of outstanding letters of credit \| letterOfCredit			6
Outstanding letters of credit amount			$ 2,300,000		2,300,000
Restricted cash			3,299,000	0	3,299,000	3,299,000
Cost of sales			93,101,000	87,383,000
Supply Commitment Fee, COVID-19
Loss Contingencies [Line Items]
Cost of sales			1,000,000.0
Indemnification Agreement
Loss Contingencies [Line Items]
Estimated liability			3,200,000	1,300,000	3,200,000
Indemnification Agreement \| Former Chairman, CEO, And President
Loss Contingencies [Line Items]
Estimated liability			$ 1,900,000	$ 1,200,000	1,900,000
Jerome Treadwell v. The Company
Loss Contingencies [Line Items]
Recovery per negligent violation		$ 1,000
Recovery per intentional or reckless violation		$ 5,000
Stay case term		60 days
Estimated liability						300,000
Mast Powertrain v. The Company
Loss Contingencies [Line Items]
Damages sought	$ 9,000,000.0				$ 4,500,000
Accrued penalties						$ 1,500,000

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	(2.20%)	85.00%

Stockholders' Equity (Details) - shares shares in Thousands	3 Months Ended
Stockholders' Equity (Details) - shares shares in Thousands	Mar. 31, 2021	Dec. 31, 2020
Common Shares Issued
Common Shares Issued (in shares)	23,117	23,117
Treasury Stock Shares
Balance at beginning of period (in shares)	225
Net shares issued for Stock awards (in shares)	0
Balance at end of period (in shares)	225
Common Shares Outstanding
Balance at beginning of period (in shares)	22,892
Net shares issued for Stock awards (in shares)	0
Balance at end of period (in shares)	22,892

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net loss	$ (18,150)	$ (712)
Shares used in computing net loss per share:
Weighted average basic shares outstanding - basic (in shares)	22,892,000	22,858,000
Effect of dilutive securities (in shares)	0	0
Weighted average common shares outstanding - diluted (in shares)	22,892,000	22,858,000
Loss per common share:
Loss per share of common stock — basic (in dollars per share)	$ (0.79)	$ (0.03)
Loss per share of common stock — diluted (in dollars per share)	$ (0.79)	$ (0.03)
Antidilutive shares (in shares)	200,000	200,000
SARs
Loss per common share:
Antidilutive shares (in shares)	0	0
Restricted Stock Awards
Loss per common share:
Antidilutive shares (in shares)	0	0

Related Party Transactions (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
Related Party Transactions (Details) - USD ($)	Dec. 31, 2012	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2015
Related Party Transaction [Line Items]
Other income, net		$ 0	$ 211,000
Corporate Joint Venture
Related Party Transaction [Line Items]
Other income, net		$ 0	$ 200,000
Corporate Joint Venture \| Green Power
Related Party Transaction [Line Items]
Investment amount with related party	$ 900,000
Percent of noncontrolling interest	50.00%
Corporate Joint Venture \| Green Power \| MAT-PSI Holdings, LLC
Related Party Transaction [Line Items]
Ownership interest	100.00%
Corporate Joint Venture \| Doosan-PSI, LLC
Related Party Transaction [Line Items]
Investment amount with related party				$ 1,000,000.0
Percent of noncontrolling interest				50.00%