0001137091-22-000019 | 10-Q | XBRL Viewer | Power Solutions International INC

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Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	$ 1,257	$ 1,605	$ 3,945	$ 4,941
Weighted-average remaining lease term, operating leases	5 years 9 months 18 days		5 years 9 months 18 days		5 years 9 months 18 days
Weighted-average remaining lease term, financing leases	3 years 3 months 18 days		3 years 3 months 18 days		3 years 3 months 18 days
Weighted-average discount rate for operating leases	7.00%		7.00%		7.10%
Weighted-average discount rate for financing leases	6.60%		6.60%		6.50%
Cost of Sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	$ 1,600	1,400	$ 4,700	4,400
Research and Development Expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	100	100	200	300
Selling, General and Administrative Expenses
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	100	100	100	100
Interest Expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease expense	$ 100	$ 100	$ 100	$ 100

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$ 3,642	$ 3,731
Operating cash flows paid for interest portion of finance leases	16	26
Financing cash flows paid for principal portion of finance leases	125	144
Right-of-use assets obtained in exchange for lease obligations
Operating leases	0	9
Finance leases	$ 0	$ 0

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	$ 211,001	$ 155,000
Revolving credit facility
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]
Other financing	81,001	50,000
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financing	0	0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financing	81,001	50,000
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financing	0	0
Fair Value, Measurements, Recurring \| Revolving credit facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	130,000	130,000
Fair Value, Measurements, Recurring \| Revolving credit facility \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Revolving credit facility	0	0
Fair Value, Measurements, Recurring \| Revolving credit facility \| 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 \| Revolving credit facility \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Revolving credit facility	$ 0	$ 0

Debt - Narrative (Details)	Apr. 20, 2022 USD ($)	Mar. 25, 2022 USD ($) agreement day	Dec. 10, 2021 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Debt Instrument [Line Items]
Short-term financing				$ 211,001,000	$ 155,000,000
Debt instrument, number of loan agreements amended \| agreement		2
Debt, long-term and short-term, combined amount				211,700,000
Cash and cash equivalents				16,477,000	6,255,000	$ 4,993,000
Accrued unpaid interest				3,600,000	600,000
Revolving credit facility
Debt Instrument [Line Items]
Short-term financing				130,000,000	$ 130,000,000
First, Second, And Fourth Shareholder's Loan Agreement, Weichai
Debt Instrument [Line Items]
Debt instrument, incremental borrowing cost	1.00%
First, Second, And Fourth Shareholder's Loan Agreement, Weichai \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	4.65%
First Shareholder's Loan Agreement, Weichai \| Revolving credit facility
Debt Instrument [Line Items]
Short-term financing				0
Second Shareholder's Loan Agreement, Weichai \| Revolving credit facility
Debt Instrument [Line Items]
Short-term financing				25,000,000
Third Shareholder's Loan Agreement, Weichai \| Revolving credit facility
Debt Instrument [Line Items]
Short-term financing				50,000,000
Fourth Shareholder's Loan Agreement, Weichai \| Revolving credit facility
Debt Instrument [Line Items]
Short-term financing				4,800,000
Revolving credit facility \| Second Standard Chartered Bank Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 130,000,000
Basis spread on variable rate		2.95%
Number of days to submit borrowing request \| day		5
Short-term financing				130,000,000
Revolving credit facility \| First Shareholder's Loan Agreement, Weichai
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 130,000,000		130,000,000
Revolving credit facility \| Second Shareholder's Loan Agreement, Weichai
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 25,000,000		25,000,000
Revolving credit facility \| Third Shareholder's Loan Agreement, Weichai
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 50,000,000	50,000,000
Revolving credit facility \| Third Shareholder's Loan Agreement, Weichai \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			4.50%
Revolving credit facility \| Fourth Shareholder's Loan Agreement, Weichai
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000			$ 30,000,000

Leases - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating Leases
Three months ending December 31, 2022	$ 1,217
Year ending December 31, 2023	3,347
Year ending December 31, 2024	1,815
Year ending December 31, 2025	1,851
Year ending December 31, 2026	1,515
Thereafter	4,023
Total undiscounted lease payments	13,768
Less: imputed interest	2,440
Total lease liabilities	11,328	$ 14,282
Finance Leases
Three months ending December 31, 2022	26
Year ending December 31, 2023	103
Year ending December 31, 2024	85
Year ending December 31, 2025	82
Year ending December 31, 2026	16
Thereafter	0
Total undiscounted lease payments	312
Less: imputed interest	30
Total lease liabilities	$ 282	$ 407

Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings (Loss) Per Share

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


(in thousands, except per share basis)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	3,192	$	(7,177)	$	1,951	$	(40,898)





Denominator:
Shares used in computing net income (loss) per share:
Weighted-average common shares outstanding – basic	22,948		22,920		22,934		22,902
Effect of dilutive securities	11		—		10		—
Weighted-average common shares outstanding – diluted	22,959		22,920		22,944		22,902

Earnings (Loss) per common share:
Earnings (Loss) per share of common stock - basic	$	0.14	$	(0.31)	$	0.09	$	(1.79)
Earnings (Loss) per share of common stock - diluted	$	0.14	$	(0.31)	$	0.09	$	(1.79)

Goodwill and Other Intangibles - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 37,340	$ 37,340
Accumulated Amortization	(31,154)	(29,556)
Net Book Value	6,186	7,784
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	34,940	34,940
Accumulated Amortization	(29,024)	(27,514)
Net Book Value	5,916	7,426
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	700	700
Accumulated Amortization	(700)	(680)
Net Book Value	0	20
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	1,700	1,700
Accumulated Amortization	(1,430)	(1,362)
Net Book Value	$ 270	$ 338

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Accounts receivable allowance	$ 3,115	$ 3,420
STOCKHOLDERS’ DEFICIT
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)	22,950,000	22,926,000
Treasury stock (in shares)	167,000	191,000

Summary of Significant Accounting Policies and Other Information (Tables)

9 Months Ended

Sep. 30, 2022

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 September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Customer A	22	%	17	%	18	%	16	%
Customer B	13	%	**		**		**
Customer C	**		20	%	**		21	%

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


	As of September 30, 2022		As of December 31, 2021
Customer A	30	%	24	%

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


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022	2021
Supplier A	**		11	%	**	**
Supplier B	**		10	%	**	13	%
Supplier C	13	%	**		**	**

**Less than 10% of the total

Schedule of Inventory, Current

Inventories consisted of the following:


(in thousands) Inventories	As of September 30, 2022		As of December 31, 2021
Raw materials	$	103,512	$	120,130
Work in process	4,697		8,923
Finished goods	22,056		16,509
Total inventories	130,265		145,562
Inventory allowance	(3,044)		(3,370)
Inventories, net	$	127,221	$	142,192

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


(in thousands)	For the Nine Months Ended September 30,
Inventory Allowance	2022		2021
Balance at beginning of period	$	3,370	$	3,328
Charged to expense	604		607
Write-offs	(930)		(559)
Balance at end of period	$	3,044	$	3,376

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:


(in thousands) Other Accrued Liabilities	As of September 30, 2022		As of December 31, 2021
Accrued product warranty	$	14,390	$	15,830
Litigation reserves *	2,711		894
Contract liabilities	1,630		1,819
Accrued compensation and benefits	7,423		4,397
Operating lease liabilities	3,442		3,978

Accrued interest expense	3,596		625

Other	9,426		7,258
Total	$	42,618	$	34,801

*As of September 30, 2022 and December 31, 2021 litigation reserves related to various ongoing legal matters including associated legal fees. See Note 9. Commitments and Contingencies for additional information.

Schedule of Accrued Product Warranty

Accrued product warranty activities are presented below:


(in thousands)	For the Nine Months Ended September 30,
Accrued Product Warranty	2022		2021
Balance at December 31, 2021	$	32,948	$	31,542
Current period provision *	6,484		14,135

Changes in estimates for preexisting warranties **	2,705		3,750
Payments made during the period	(18,080)		(19,244)

Balance at end of period	24,057		30,183
Less: current portion	14,390		15,247
Noncurrent accrued product warranty (included with Other Noncurrent liabilities)	$	9,667	$	14,936

*Warranty costs, net of supplier recoveries, and other adjustments, were a cost of $5.4 million and a cost of $14.8 million for the nine months ended September 30, 2022 and 2021, respectively. Supplier recoveries were $3.4 million and $3.3 million for the nine months ended September 30, 2022 and 2021, respectively.

**Changes 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. During the nine months ended September 30, 2022, the Company recorded a cost for changes in estimates of preexisting warranties of $2.7 million, or $0.12 per diluted share, for the nine months ended September 30, 2022, which includes a favorable experience for preexisting warranties attributable to a contract revision during the quarter ended March 31, 2022, and costs of $3.8 million, or $0.16 per diluted share, for the nine months ended September 30, 2021.

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 52,834	$ 52,590
Accumulated depreciation	(38,445)	(35,246)
Property, plant and equipment, net	14,389	17,344
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	7,107	7,107
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	44,915	44,358
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 812	$ 1,125

Summary of Significant Accounting Policies and Other Information - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued product warranty	$ 14,390	$ 15,830	$ 15,247
Litigation reserves	2,711	894
Contract liabilities	1,630	1,819
Accrued compensation and benefits	7,423	4,397
Operating lease liabilities	3,442	3,978
Accrued interest expense	3,596	625
Other	9,426	7,258
Total	$ 42,618	$ 34,801

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
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 and nine months ended September 30, 2022 was 11.5% and 0.7%, respectively, compared to an effective tax rate for the three and nine months ended September 30, 2021 of 1.8% and 0.7%. The effective tax rates for all periods were significantly different than the applicable U.S. statutory tax rate. For the three and nine months ended September 30, 2022, the difference between the effective and statutory tax rates was primarily due to the Company’s full valuation allowance. For the three and nine months ended September 30, 2021, the difference between the effective and statutory tax rates was primarily due to the Company’s full valuation allowance and the ability to carry back 2013 research & experimentation credits to 2012. On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA contains several revisions to the Internal Revenue Code, including a 15% corporate minimum income tax and a 1% excise tax on corporate stock repurchases in tax years beginning after December 31, 2022. While these tax law changes have no immediate effect and are not expected to have a material adverse effect on our results of operations going forward, we will continue to evaluate its impact as further information becomes available.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Summary of Significant Accounting Policies and Other Information

9 Months Ended

Sep. 30, 2022

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

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 Company’s debt arrangements. As of September 30, 2022, the Company’s total outstanding debt obligations under the Second Amended and Restated Credit Agreement, the Amended Second Shareholder’s Loan Agreement, the Third Shareholder’s Loan

Agreement, the Fourth Shareholder’s Loan Agreement and for finance leases and other debt were $211.7 million in the aggregate, and its cash and cash equivalents were $16.5 million. See Note 6. Debt, for further information regarding the terms and conditions of the Company’s debt agreements.

Without additional financing, the Company anticipates that it will not have sufficient cash and cash equivalents to repay amounts owing under its existing debt arrangements as they become 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 its existing debt agreements or seek additional liquidity from its current or other lenders before the maturity dates in 2022 and 2023. There can be no assurance that the Company’s management will be able to successfully complete an extension and amendment of its existing debt agreements 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 COVID-19 pandemic. 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 under its existing debt arrangements, maintain sufficient liquidity to fund its business activities, and maintain compliance with the covenants and other requirements under the Second Amended and Restated Credit Agreement and other outstanding debt, in the future, 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 Second Amended and Restated Credit Agreement and other outstanding debt, in the future, and extending and amending, refinancing or repaying the indebtedness outstanding under the Company’s existing debt arrangements.

COVID-19 and other Recent Business Impacts

During 2020 and 2021, 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 but showed signs of improvement in 2021, and through the first nine months of 2022. However, although rig counts in the U.S. oil markets increased during 2021 and through the first nine months of 2022, average rig counts remained below pre-pandemic levels. The Company also believes that capital spending within the areas of the oil and gas market that it participates in, remains below pre-pandemic levels. While the Company saw an increase of sales to customers with traditional exposure to the oil and gas markets during the first nine months of 2022, as compared to the prior year, sales remain below pre-pandemic levels. A significant portion of the Company’s sales and profitability has historically been derived from the sale of products that are used within the oil and gas industry. In addition, the Company continued to experience delays in its supply chain during the first nine months of 2022 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 shipping-related costs. Additionally, the Company continues to experience ongoing tariff costs for products that did not receive tariff exclusions. The Company is working to mitigate the impact of these matters through price increases and other measures, such as seeking certain tariff exclusions, where possible. The potential for continued supply chain 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.

The Company performs its annual goodwill impairment test as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. As further discussed in Item 8., Note 5. Goodwill and Other Intangibles, the Company completed its annual goodwill impairment

assessment for the year ended December 31, 2021 and concluded that goodwill was not impaired. It is reasonably possible that potential adverse impacts of the factors noted above could result in the recognition of material impairments of goodwill and other long-lived assets or other related charges in future periods.

During 2021, the Company incurred significantly higher legal costs due to its obligation to indemnify certain former officers and employees as a result of exhaustion of its directors’ and officers’ insurance during the early part of 2020. In particular, spending activity was elevated during the first nine months of 2021 as a result of the USAO trial involving former officers and employees of the Company. With a verdict reached in the USAO trial matter involving former officers and employees in September 2021, the Company’s costs related to the matter ceased. Accordingly, the Company saw a substantial decline in these costs during the first nine months of 2022. Additionally, in June 2022, the SEC matter concerning former officers and employees was settled. As a result, the Company’s potential future costs for indemnity obligations related to this matter should cease. Meanwhile, the Company continues to be party to several legal contingencies. See Note 9. Commitments and Contingencies for further discussion of the Company’s indemnification obligations.

Lastly, in addition to incurring higher total debt levels during 2022, the Company’s debt is tied to the London Inter-Bank Offered Rate (“LIBOR”) and the Secured Overnight Financing Rate (“SOFR”), both of which have seen significant increases during the year. As a result of these factors, the Company’s interest expense has increased and is subject to further increases. Accordingly, the above challenges may continue to have a material adverse impact on the Company’s future results of operations, financial position, and liquidity.

Basis of Presentation and Consolidation

The Company is filing this Form 10-Q for the three and nine months ended September 30, 2022, which contains unaudited condensed consolidated financial statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021.

The condensed 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 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 unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by U.S GAAP for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2021, included in the 2021 Annual Report filed with the SEC on March 31, 2022 (“the 2021 Annual Report”). The Company’s significant accounting policies are described in the aforementioned 2021 Annual Report and no changes were made during the nine months ended September 30, 2022. 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 September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Customer A	22	%	17	%	18	%	16	%
Customer B	13	%	**		**		**
Customer C	**		20	%	**		21	%

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


	As of September 30, 2022		As of December 31, 2021
Customer A	30	%	24	%

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


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022	2021
Supplier A	**		11	%	**	**
Supplier B	**		10	%	**	13	%
Supplier C	13	%	**		**	**

**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, stock-based compensation, 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

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 $4.8 million and $5.2 million for the three months ended September 30, 2022 and 2021, respectively. These costs were $13.9 million and $17.0 million for the nine months ended September 30, 2022 and 2021, respectively.

Restricted Cash

Restricted cash consists of funds that are contractually restricted as to usage or withdrawal due to required minimum levels of cash collateral for letters of credits and contractual agreements with customers. As of September 30, 2022 and December 31, 2021, the Company had restricted cash of $3.6 million and $3.5 million, respectively, which includes $1.1 million restricted cash held in escrow which could be required to be refunded to the customer if conditions occur as defined in the agreement with the customer. The Company has not recognized revenue associated with the restricted cash. The liability is included within Noncurrent Contract Liabilities on the Consolidated Balance Sheet.

Inventories

The Company’s inventories consist primarily of engines and parts that 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, and freight-in. 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 September 30, 2022		As of December 31, 2021
Raw materials	$	103,512	$	120,130
Work in process	4,697		8,923
Finished goods	22,056		16,509
Total inventories	130,265		145,562
Inventory allowance	(3,044)		(3,370)
Inventories, net	$	127,221	$	142,192

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


(in thousands)	For the Nine Months Ended September 30,
Inventory Allowance	2022		2021
Balance at beginning of period	$	3,370	$	3,328
Charged to expense	604		607
Write-offs	(930)		(559)
Balance at end of period	$	3,044	$	3,376

Other Accrued Liabilities

Other accrued liabilities consisted of the following:


(in thousands) Other Accrued Liabilities	As of September 30, 2022		As of December 31, 2021
Accrued product warranty	$	14,390	$	15,830
Litigation reserves *	2,711		894
Contract liabilities	1,630		1,819
Accrued compensation and benefits	7,423		4,397
Operating lease liabilities	3,442		3,978

Accrued interest expense	3,596		625

Other	9,426		7,258
Total	$	42,618	$	34,801

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.

The Company has approximately $2.0 million accrued for a specific warranty-related matter as of September 30, 2022. During the second quarter, the Company concluded it is reasonably possible that future warranty claims for this matter may exceed current estimates that are based upon historical claims experience. The impact could be material to the financial statements.

Accrued product warranty activities are presented below:


(in thousands)	For the Nine Months Ended September 30,
Accrued Product Warranty	2022		2021
Balance at December 31, 2021	$	32,948	$	31,542
Current period provision *	6,484		14,135

Changes in estimates for preexisting warranties **	2,705		3,750
Payments made during the period	(18,080)		(19,244)

Balance at end of period	24,057		30,183
Less: current portion	14,390		15,247
Noncurrent accrued product warranty (included with Other Noncurrent liabilities)	$	9,667	$	14,936

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, 2024. There was no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, Statements of Cash Flows or Statement of Stockholders’ Deficit as a result of this guidance since the Company’s debt that references LIBOR matures in November 2022, before LIBOR expires in June 2023.

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.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2022
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 the USAO to resolve the investigations into the Company’s past revenue recognition practices. 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. In April 2022, the SEC granted a further extension of time until March 31, 2023 to fully comply with the administrative order. To the extent that the Company’s request for an extension from the SEC, or other actions are not successful and completed in accordance with the provisions of the settlement with the SEC and USAO, the Company may be required to incur additional time and expense towards further remediation efforts and incremental substantive procedures, which could have a material adverse effect on its results of operations. In addition, failure to comply with the provisions of the settlement agreements with the SEC and USAO could result in further actions by one or both governmental agencies which could have a material adverse effect on the Company’s results of operations. Jerome Treadwell v. the Company In October 2018, a punitive 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 in May 2021 which went forward without a settlement being reached. The stay remains in place pending further guidance from the Court. As of September 30, 2022 and December 31, 2021, the Company had recorded an estimated liability of $1.0 million and $0.3 million, respectively, recorded within Other accrued liabilities on the Consolidated Balance Sheet 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 was 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 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 subsequently clarified its claim for past royalties owed to be approximately $4.5 million. In July 2021, the Company reached a settlement with Mast to resolve past claims for royalties owed for $1.0 million which the Company had previously recorded within Selling, general and administrative expenses in the Consolidated Statement of Operations for the year-ended December 31, 2020. The Company fully paid the settlement and had no recognized liability as of September 30, 2022 and $0.5 million was outstanding as of December 31, 2021. Liability related to the settlement of this matter was included in the Other accrued liabilities on the Consolidated Balance Sheet. In addition, the Company entered into an agreement with Mast under which Mast will provide various technical services. Gary Winemaster Litigation v. The Company In August 2021, the Company’s former Chairman of the Board and former Chief Executive Officer and President, Gary Winemaster (“Winemaster”) filed suit in the Court of Chancery of the State of Delaware against the Company and Travelers Casualty and Surety Company of America (“Travelers”) alleging the Company’s breach of its advancement obligations under Winemaster’s indemnification agreement and Travelers’ breach of the side A policy between Traveler’s and the Company of which Winemaster is a beneficiary. In his complaint, Winemaster was seeking reimbursement under his indemnification agreement in excess of $7.2 million of attorney’s fees plus interest incurred by Winemaster in his defense of the Department of Justice (“DOJ”) case, U.S. v. Winemaster et al. Since the filing of the complaint, the Company estimates that Travelers has paid approximately $8.8 million to Winemaster’s attorneys, Latham and Watkins, under the Company’s side A policy to settle existing outstanding attorney’s fees. Travelers is seeking reimbursement from the Company for those advances pursuant to the terms of the side A policy. In October 2021, the Company and Winemaster entered into a Stipulation and Advancement Order to handle all future attorney’s fees relating to his DOJ and SEC cases, to the extent not reimbursed by Travelers under the side A policy. As of September 30, 2022, the Company has approximately $8.8 million accrued for the reimbursement to Travelers. Jeffrey Ehlers and Rick Lulloff Litigation In September 2021, Jeffrey Ehlers (“Ehlers”) and Rick Lulloff (“Lulloff”), former employees of the Company, made demand against the Company for approximately $2.4 million and $1.2 million, respectively, for alleged wages due and owing under each employee’s employment contract related to “Incentive Bonuses” for revenues generated in the Company’s transportation end market. In November 2021, Lulloff and Ehlers separately filed complaints against the Company in the Circuit Court of Cook County, Illinois, alleging breach of contract and violations of the Illinois Wage and Payment Collection Act incorporating their claims in the above referenced demand letter. The Company filed a notice of removal from the Circuit Court of Cook County, Illinois and has also moved to consolidate the cases which has been granted by the Court. As of September 30, 2022, the Company has recorded an estimated liability of $1.6 million, recorded within the Other accrued liabilities on the Consolidated Balance Sheet related to the potential settlement of this matter. No estimated liability was recorded for the year ended December 31, 2021. 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 $30.0 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 directors and officers and certain 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 both the three and nine months ended September 30, 2022, the Company incurred less than $0.1 million of costs related to these indemnification obligations and $1.6 million and $15.2 million for the three and nine months ended September 30, 2021. With a verdict reached in the USAO trial matter involving former officers and employees in September 2021, coupled with a settlement reached in the SEC matter involving former officers and employees in June 2022, the Company’s potential future costs for indemnity obligations related to these matters should cease. In June 2020, the Company entered into a new directors’ and officers’ liability insurance policy, which was renewed in June 2021, and again in June 2022. 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 and Contingencies At September 30, 2022, the Company had five outstanding letters of credit totaling $2.1 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 $3.6 million as of September 30, 2022 related to these letters of credit and cash held in escrow due to a customer agreement. The Company had arrangements with Hyundai Doosan Infracore Co., Ltd. (“Doosan”) that required the Company to purchase minimum volumes or be subject to monetary penalties. On July 7, 2022, the Company entered into a revised supply agreement with Doosan, which among other things, removed the Company’s exclusivity to purchase and distribute specified engines within the territory of the United States, Canada and Mexico, and removed the minimum product purchase commitments and related performance penalties imposed on the Company except for the 2021 outstanding balance.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements at Reporting Date


(in thousands)	As of September 30, 2022
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—
Other financing	81,001		—		81,001		—


(in thousands)	As of December 31, 2021
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—
Other financing	50,000		—		50,000		—

- 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

Summary of Significant Accounting Policies and Other Information - Schedules of Concentration of Risk, by Risk Factor (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Supplier Concentration Risk \| Supplier A \| Purchases
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%
Supplier Concentration Risk \| Supplier B \| Purchases
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%		13.00%
Supplier Concentration Risk \| Supplier C \| Purchases
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%
Customer A \| Customer Concentration Risk \| Net Sales
Concentration Risk [Line Items]
Concentration risk, percentage	22.00%	17.00%	18.00%	16.00%
Customer A \| Customer Concentration Risk \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			30.00%		24.00%
Customer B \| Customer Concentration Risk \| Net Sales
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%
Customer C \| Customer Concentration Risk \| Net Sales
Concentration Risk [Line Items]
Concentration risk, percentage		20.00%		21.00%

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Revolving credit facility
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt issuance costs	$ 0.9	$ 0.8

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	11.50%	1.80%	0.70%	0.70%

Stockholders' Equity (Details) shares in Thousands	9 Months Ended
Stockholders' Equity (Details) shares in Thousands	Sep. 30, 2022 shares
Common Shares Issued
Beginning balance (in shares)	23,117
Ending balance (in shares)	23,117
Common Shares Outstanding
Balance at beginning of period (in shares)	22,926
Balance at end of period (in shares)	22,950
Common Stock
Common Shares Issued
Beginning balance (in shares)	23,117
Ending balance (in shares)	23,117
Treasury Stock Shares
Net shares issued for Stock Awards (in shares)	(24)
Common Shares Outstanding
Balance at beginning of period (in shares)	22,926
Net shares issued for Stock Awards (in shares)	24
Balance at end of period (in shares)	22,950
Treasury Stock Shares
Treasury Stock Shares
Balance at beginning of period (in shares)	191
Net shares issued for Stock Awards (in shares)	(24)
Balance at end of period (in shares)	167
Common Shares Outstanding
Net shares issued for Stock Awards (in shares)	24

Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Short-term contract assets (included in Prepaid expenses and other current assets)	$ 3,096	$ 2,707
Short-term contract liabilities (included in Other accrued liabilities)	(1,630)	(1,819)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,412)	(3,330)
Net contract liabilities	$ (1,946)	$ (2,442)

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease cost	$ 1,150	$ 1,194	$ 3,489	$ 3,661
Finance lease cost
Amortization of right-of-use (“ROU”) asset	31	40	119	144
Interest expense	5	7	17	26
Short-term lease cost	24	38	89	270
Variable lease cost	306	326	1,026	840
Sublease income	(259)	0	(795)	0
Total lease cost	$ 1,257	$ 1,605	$ 3,945	$ 4,941

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Short-term financing:
Short-term financing	$ 211,001	$ 155,000
Other short-term financing	81,001	25,000
Long-term debt:
Finance leases and other debt	672	890
Total long-term debt and finance leases	672	25,890
Less: Current maturities of long-term debt and finance leases	217	254
Long-term debt	455	25,636
Unsecured senior notes
Long-term debt:
Unsecured senior notes	0	25,000
Revolving credit facility
Short-term financing:
Short-term financing	130,000	130,000
Long-term debt:
Debt issuance costs	$ 900	$ 800

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s outstanding debt consisted of the following:


(in thousands)	As of September 30, 2022		As of December 31, 2021
Short-term financing:
Revolving credit facility *	$	130,000	$	130,000
Other short-term financing	81,001		25,000
Total short-term debt	$	211,001	$	155,000

Long-term debt:
Unsecured senior notes	$	—	$	25,000


Finance leases and other debt	672		890

Total long-term debt and finance leases	672		25,890
Less: Current maturities of long-term debt and finance leases	217		254
Long-term debt	$	455	$	25,636

*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 $0.9 million and $0.8 million as of September 30, 2022 and December 31, 2021, respectively.

Summary of Significant Accounting Policies and Other Information - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2017 USD ($)	Sep. 30, 2022 USD ($) boardMember $ / shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) boardMember segment $ / shares	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / shares	Apr. 30, 2019 $ / shares
Concentration Risk [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001		$ 0.001		$ 0.001	$ 0.001
Number of board members \| boardMember		4		4
Debt, long-term and short-term, combined amount		$ 211,700		$ 211,700
Cash and cash equivalents		16,477	$ 4,993	$ 16,477	$ 4,993	$ 6,255
Number of operating segments \| segment				1
Research and development and engineering expenses		4,800	5,200	$ 13,900	17,000
Restricted cash		3,565	$ 3,081	3,565	$ 3,081	$ 3,477
Specific warranty-related matter accrual		2,000		2,000
Contract With Customer
Concentration Risk [Line Items]
Restricted cash		$ 1,100		$ 1,100
Share Purchase Agreement, Weichai Transaction
Concentration Risk [Line Items]
Consideration received on transaction	$ 60,000

Summary of Significant Accounting Policies and Other Information (Policies)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	The condensed 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 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 unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by U.S GAAP for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2021, included in the 2021 Annual Report filed with the SEC on March 31, 2022 (“the 2021 Annual Report”). The Company’s significant accounting policies are described in the aforementioned 2021 Annual Report and no changes were made during the nine months ended September 30, 2022. 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, stock-based compensation, 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	Restricted cash consists of funds that are contractually restricted as to usage or withdrawal due to required minimum levels of cash collateral for letters of credits and contractual agreements with customers
Inventories	The Company’s inventories consist primarily of engines and parts that 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, and freight-in. 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. The Company has approximately $2.0 million accrued for a specific warranty-related matter as of September 30, 2022. During the second quarter, the Company concluded it is reasonably possible that future warranty claims for this matter may exceed current estimates that are based upon historical claims experience. The impact could be material to the financial statements.
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, 2024. There was no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, Statements of Cash Flows or Statement of Stockholders’ Deficit as a result of this guidance since the Company’s debt that references LIBOR matures in November 2022, before LIBOR expires in June 2023. 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	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.
Fair Value of Financial Instruments	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 and other short-term financing at original carrying value. Unamortized financing costs and deferred fees of $0.9 million and $0.8 million as of September 30, 2022 and December 31, 2021, respectively, 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 and other short-term financing approximated carrying value, as it consisted primarily of short-term variable rate loans.

Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

The Company’s outstanding debt consisted of the following:


(in thousands)	As of September 30, 2022		As of December 31, 2021
Short-term financing:
Revolving credit facility *	$	130,000	$	130,000
Other short-term financing	81,001		25,000
Total short-term debt	$	211,001	$	155,000

Long-term debt:
Unsecured senior notes	$	—	$	25,000


Finance leases and other debt	672		890

Total long-term debt and finance leases	672		25,890
Less: Current maturities of long-term debt and finance leases	217		254
Long-term debt	$	455	$	25,636

Credit Agreement and Shareholders’ Loan Agreements

On March 25, 2022, the Company amended and restated its $130.0 million uncommitted senior secured revolving credit agreement with Standard Chartered by entering into the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement extends the maturity date of loans outstanding under its previous credit facility to the earlier of March 24, 2023 or the demand of Standard Chartered. The Second Amended and Restated Credit Agreement is subject to customary events of default and covenants, as well as financial covenants, including minimum consolidated EBITDA and Consolidated Interest Coverage Ratio covenants, as further defined in the Second Amended and Restated Credit Agreement, required only for the second and third quarters of 2022. The Company was in compliance with these financial covenants for the third quarter of 2022. Borrowings under the Second Amended and Restated Credit Agreement will incur interest at either the alternate base rate or the SOFR plus 2.95% per annum. The Second Amended and Restated Credit

Agreement continues to be secured by substantially all of the Company’s assets and provides Standard Chartered the right to demand payment of any and all of the outstanding borrowings and other amounts owed under the Second Amended and Restated Credit Agreement at any point in time prior to the maturity date at Standard Chartered’s discretion. Furthermore, the Second Amended and Restated Credit Agreement grants Standard Chartered a power of attorney to submit a borrowing request to Weichai under the Amended First Shareholder’s Loan Agreement (see discussion below) if the Company did not submit a borrowing request to Weichai within five business days of receiving a request from Standard Chartered to submit said borrowing request. As of September 30, 2022, the Company had $130.0 million outstanding under the Second Amended and Restated Credit Agreement.

In connection with the Second Amended and Restated Credit Agreement, on March 25, 2022, the Company also amended two of its shareholder’s loan agreements with Weichai, to among other things, extend the maturities thereof. The Amended First Shareholder’s Loan Agreement continues to provide the Company with a $130.0 million subordinated loan under which Weichai is obligated to advance funds solely for purposes of repaying outstanding borrowings under the Second Amended and Restated Credit Agreement if the Company is unable to pay such borrowings. The Amended Second Shareholder’s Loan Agreement continues to provide the Company with a $25.0 million subordinated loan at the discretion of Weichai. The maturity of the Amended First Shareholder’s Loan Agreement was extended to April 24, 2023 and the maturity of the Amended Second Shareholder’s Loan Agreement was extended to May 20, 2023. The Company has covenanted to secure any amounts borrowed under either of the agreements upon payment in full of all amounts outstanding under the Second Amended and Restated Credit Agreement. As of September 30, 2022, there were no borrowings under the Amended First Shareholder’s Loan Agreement and $25.0 million under the Amended Second Shareholder’s Loan Agreement.

The Company is also party to the Third Shareholder’s Loan Agreement with Weichai, which was entered into on December 10, 2021. The Third Shareholder’s Loan Agreement provides the Company with a $50.0 million uncommitted facility that is subordinated to the Second Amended and Restated Credit Agreement and any borrowing requests made under the Third Shareholder’s Loan Agreement are subject to Weichai’s discretionary approval. Borrowings under the Third Shareholder’s Loan Agreement bear interest at LIBOR plus 4.50% and can be used for general corporate purposes, except for certain legal expenditures which require additional approval from Weichai. The Third Shareholder’s Loan Agreement expires on November 30, 2022, with any outstanding principal and accrued interest due upon maturity. As of September 30, 2022, the Company had $50.0 million outstanding under the Third Shareholder’s Loan Agreement.

On April 20, 2022, the Company entered into the Fourth Shareholder’s Loan Agreement with Weichai. The Fourth Shareholder’s Loan Agreement, which matures on March 31, 2023, provides the Company with access to up to $30.0 million of credit at the discretion of Weichai to supplement the Company’s working capital. The Fourth Shareholder’s Loan Agreement is subordinated in all respects to the Second Amended and Restated Credit Agreement. Borrowings under the Amended First Shareholder’s Loan Agreement, the Amended Second Shareholder’s Loan Agreement and the Fourth Shareholder’s Loan Agreement will incur interest at the applicable SOFR, plus 4.65% per annum. Further, if the applicable term SOFR is negative, the interest rate per annum shall be deemed as 4.65% per annum. If the interest rate for any loan is lower than Weichai’s borrowing cost, the interest rate for such loan shall be equal to Weichai’s borrowing cost plus 1%. As of September 30, 2022, the Company had $4.8 million outstanding under the Fourth Shareholder’s Loan Agreement.

As of September 30, 2022, the Company’s total outstanding debt obligations under the Second Amended and Restated Credit Agreement, the Amended Second Shareholder’s Loan Agreement, the Third Shareholder’s Loan Agreement, the Fourth Shareholder’s Loan Agreement and for finance leases and other debt were $211.7 million in the aggregate, and its cash and cash equivalents were $16.5 million. The Company's total accrued interest for all shareholder loans was $3.6 million and $0.6 million as of September 30, 2022 and December 31, 2021, respectively. Accrued interest is included within Other Accrued Liabilities on the Consolidated Balance Sheet.

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

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Summary of Significant Accounting Policies and Other Information - Schedule of Product Warranty Liability (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accrued Product Warranty
Balance at December 31, 2021	$ 32,948	$ 31,542
Current period provision	6,484	14,135
Changes in estimates for preexisting warranties	2,705	3,750
Payments made during the period	(18,080)	(19,244)
Balance at end of period	24,057	30,183
Accrued Product Warranty	24,057	30,183	$ 32,948
Less: current portion	14,390	15,247	$ 15,830
Noncurrent accrued product warranty (included with Other Noncurrent liabilities)	9,667	14,936
Warranty (benefit)/costs, net of supplier recoveries	5,400	14,800
Standard Product Warranty Accrual, Supplier Recoveries	(3,400)	(3,300)
Changes in estimates for preexisting warranties	$ 2,705	$ 3,750
Diluted share (in dollars per share)	$ 0.12	$ 0.16

Goodwill and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Components of intangible assets are as follows:


(in thousands)	As of September 30, 2022
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	34,940	$	(29,024)	$	5,916
Developed technology	700		(700)		—
Trade names and trademarks	1,700		(1,430)		270
Total	$	37,340	$	(31,154)	$	6,186


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

Customer relationships	$	34,940	$	(27,514)	$	7,426
Developed technology	700		(680)		20
Trade names and trademarks	1,700		(1,362)		338
Total	$	37,340	$	(29,556)	$	7,784

Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Components of Lease Expense and Cash Flow Information

The following table summarizes the components of lease expense:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021

Operating lease cost	$	1,150	$	1,194	$	3,489	$	3,661
Finance lease cost
Amortization of right-of-use (“ROU”) asset	31		40		119		144
Interest expense	5		7		17		26
Short-term lease cost	24		38		89		270
Variable lease cost	306		326		1,026		840
Sublease income	(259)		—		(795)		—
Total lease cost	$	1,257	$	1,605	$	3,945	$	4,941

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


(in thousands)	For the Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	3,642	$	3,731
Operating cash flows paid for interest portion of finance leases	16		26
Financing cash flows paid for principal portion of finance leases	125		144
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		9
Finance leases	—		—

Supplemental Balance Sheet Information

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


(in thousands)	September 30, 2022		December 31, 2021

Operating lease ROU assets, net 1	$	10,742	$	13,545

Operating lease liabilities, current 2	3,442		3,978
Operating lease liabilities, non-current 3	7,886		10,304
Total operating lease liabilities	$	11,328	$	14,282

Finance lease ROU assets, net 1	$	246	$	364

Finance lease liabilities, current 2	89		147
Finance lease liabilities, non-current 3	193		260
Total finance lease liabilities	$	282	$	407

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 September 30, 2022:


(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2022	$	1,217	$	26
Year ending December 31, 2023	3,347		103
Year ending December 31, 2024	1,815		85
Year ending December 31, 2025	1,851		82
Year ending December 31, 2026	1,515		16
Thereafter	4,023		—
Total undiscounted lease payments	13,768		312
Less: imputed interest	2,440		30
Total lease liabilities	$	11,328	$	282

Maturity Analysis of Financing Lease Liabilities

The following table presents maturity analysis of lease liabilities as of September 30, 2022:


(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2022	$	1,217	$	26
Year ending December 31, 2023	3,347		103
Year ending December 31, 2024	1,815		85
Year ending December 31, 2025	1,851		82
Year ending December 31, 2026	1,515		16
Thereafter	4,023		—
Total undiscounted lease payments	13,768		312
Less: imputed interest	2,440		30
Total lease liabilities	$	11,328	$	282

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Dec. 31, 2012	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2015
Related Party Transaction [Line Items]
Return of investment in joint venture			$ 0	$ 2,263
Corporate Joint Venture \| Green Power
Related Party Transaction [Line Items]
Investment amount with related party	$ 900
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
Percent of noncontrolling interest					50.00%
Return of investment in joint venture		$ 2,200

Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment by type were as follows:


(in thousands)	As of September 30, 2022		As of December 31, 2021
Property, Plant and Equipment


Leasehold improvements	$	7,107	$	7,107
Machinery and equipment	44,915		44,358
Construction in progress	812		1,125
Total property, plant and equipment, at cost	52,834		52,590
Accumulated depreciation	(38,445)		(35,246)
Property, plant and equipment, net	$	14,389	$	17,344

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Weichai Transactions See Note 3. Weichai Transactions for information regarding the Amended First Shareholder’s Loan Agreement, the Amended Second Shareholder’s Loan Agreement, the Third Shareholder’s Loan Agreement, the Fourth Shareholder’s Loan Agreement and the Collaboration Agreement with Weichai, and an international distribution and sales agreement with Baudouin. 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 down 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 Infracore”), 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 Infracore and the Company agreed to wind down and dissolve the joint venture. In the second quarter of 2021, the Company received a cash distribution from the joint venture of $2.2 million as a result of the final wind down and dissolution of the joint venture. 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.

Commitments and Contingencies (Details)		1 Months Ended						3 Months Ended			9 Months Ended
Commitments and Contingencies (Details)	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($)	Aug. 31, 2021 USD ($)	Jul. 31, 2021 USD ($)	Oct. 31, 2020	Feb. 29, 2020 USD ($)	Oct. 31, 2018 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2022 USD ($) letterOfCredit	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Accrued penalties								$ 2,711,000			$ 2,711,000		$ 894,000
Insurance coverage										$ 30,000,000
Number of outstanding letters of credit \| letterOfCredit											5
Outstanding letters of credit amount								2,100,000			$ 2,100,000		2,100,000
Restricted cash		$ 3,081,000						3,565,000	$ 3,081,000		3,565,000	$ 3,081,000	3,477,000
Indemnification Agreement
Loss Contingencies [Line Items]
Related costs								(100,000)	$ 1,600,000		(100,000)	$ 15,200,000
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								1,000,000			1,000,000		300,000
Mast Powertrain v. The Company
Loss Contingencies [Line Items]
Damages sought	$ 4,500,000					$ 9,000,000
Litigation settlement payment				$ 1,000,000
Accrued penalties								0			0		500,000
Gary Winemaster v. The Company
Loss Contingencies [Line Items]
Damages sought			$ 7,200,000
Legal settlement			$ 8,800,000
Jeffrey Ehlers Litigation
Loss Contingencies [Line Items]
Estimated liability								$ 1,600,000			$ 1,600,000		$ 0
Damages sought		2,400,000
Rick Lulloff Litigation
Loss Contingencies [Line Items]
Damages sought		$ 1,200,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 16,477	$ 6,255
Restricted cash	3,565	3,477
Accounts receivable, net of allowances of $3,115 and $3,420 as of September 30, 2022 and December 31, 2021, respectively	82,732	65,110
Income tax receivable	567	4,276
Inventories, net	127,221	142,192
Prepaid expenses and other current assets	17,849	8,918
Total current assets	248,411	230,228
Property, plant and equipment, net	14,389	17,344
Intangible assets, net	6,186	7,784
Goodwill	29,835	29,835
Other noncurrent assets	12,762	15,347
TOTAL ASSETS	311,583	300,538
Current liabilities:
Accounts payable	73,120	93,256
Current maturities of long-term debt	217	254
Revolving line of credit	130,000	130,000
Other short-term financing	81,001	25,000
Other accrued liabilities	42,618	34,801
Total current liabilities	326,956	283,311
Deferred income taxes	1,041	1,016
Long-term debt, net of current maturities	455	25,636
Noncurrent contract liabilities	3,412	3,330
Other noncurrent liabilities	19,479	29,268
TOTAL LIABILITIES	351,343	342,561
STOCKHOLDERS’ DEFICIT
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; 22,950 and 22,926 shares outstanding at September 30, 2022 and December 31, 2021, respectively	23	23
Additional paid-in capital	157,603	157,436
Accumulated deficit	(196,415)	(198,366)
Treasury stock, at cost, 167 and 191 shares at September 30, 2022 and December 31, 2021, respectively	(971)	(1,116)
TOTAL STOCKHOLDERS’ DEFICIT	(39,760)	(42,023)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 311,583	$ 300,538

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2022

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 and other short-term financing at original carrying value. Unamortized financing costs and deferred fees of $0.9 million and $0.8 million as of September 30, 2022 and December 31, 2021, respectively, 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 and other short-term financing approximated carrying value, as it consisted primarily of short-term variable rate loans.


(in thousands)	As of September 30, 2022
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—
Other financing	81,001		—		81,001		—


(in thousands)	As of December 31, 2021
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3
Revolving credit facility	$	130,000	$	—	$	130,000	$	—
Other financing	50,000		—		50,000		—

- 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

Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes net sales by end market:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
End Market	2022		2021		2022		2021
Power Systems	$	42,693	$	31,801	$	127,904	$	81,611
Industrial	59,419		40,576		163,671		111,796
Transportation	22,788		45,253		52,751		135,872
Total	$	124,900	$	117,630	$	344,326	$	329,279

Revenue from External Customers by Geographic Areas

The following table summarizes net sales by geographic area:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Geographic Area	2022		2021		2022		2021
United States	$	89,661	$	103,872	$	250,026	$	293,424
North America (outside of United States)	2,903		1,894		10,623		6,126
Pacific Rim	20,083		7,914		56,599		18,862
Europe	7,028		1,729		13,787		5,297
Other	5,225		2,221		13,291		5,570
Total	$	124,900	$	117,630	$	344,326	$	329,279

Schedule of Contract Balances


(in thousands)	As of September 30, 2022		As of December 31, 2021
Short-term contract assets (included in Prepaid expenses and other current assets)	$	3,096	$	2,707

Short-term contract liabilities (included in Other accrued liabilities)	(1,630)		(1,819)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,412)		(3,330)
Net contract liabilities	$	(1,946)	$	(2,442)

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income (loss)	$ 3,192	$ (7,177)	$ 1,951	$ (40,898)
Shares used in computing net income (loss) per share:
Weighted average basic shares outstanding - basic (in shares)	22,948	22,920	22,934	22,902
Effect of dilutive securities (in shares)	11	0	10	0
Weighted average common shares outstanding - diluted (in shares)	22,959	22,920	22,944	22,902
Earnings (Loss) per common share:
Earnings (Loss) per share of common stock – basic (in dollars per share)	$ 0.14	$ (0.31)	$ 0.09	$ (1.79)
Earnings (Loss) per share of common stock – diluted (in dollars per share)	$ 0.14	$ (0.31)	$ 0.09	$ (1.79)
Antidilutive shares (in shares)	100	100	200	200

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2022

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, 2021	23,117	191	22,926
Net shares issued for Stock awards	—	(24)	24



Balance as of September 30, 2022	23,117	167	22,950

Revenue - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 0.5	$ 32.5
Revenue, remaining performance obligation, amount	4.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 0.4
Revenue, remaining performance obligation, period	3 months
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	$ 0.9
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	$ 0.5
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	$ 0.2
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1.5
Revenue, remaining performance obligation, period

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2022	Nov. 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-35944
Entity Registrant Name	POWER SOLUTIONS INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0963637
Entity Address, Address Line One	201 Mittel Drive
Entity Address, City or Town	Wood Dale
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60191
City Area Code	630
Local Phone Number	350-9400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,951,379
Entity Central Index Key	0001137091
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 124,900	$ 117,630	$ 344,326	$ 329,279
Cost of sales	100,792	106,288	285,181	297,673
Gross profit	24,108	11,342	59,145	31,606
Operating expenses:
Research, development and engineering expenses	4,819	5,437	13,931	17,772
Selling, general and administrative expenses	11,541	10,958	32,922	47,858
Amortization of intangible assets	526	634	1,598	1,901
Total operating expenses	16,886	17,029	48,451	67,531
Operating income (loss)	7,222	(5,687)	10,694	(35,925)
Other expense, net:
Interest expense	3,615	1,623	8,729	5,253
Other expense, net	0	0	0	1
Total other expense, net	3,615	1,623	8,729	5,254
Income (Loss) before income taxes	3,607	(7,310)	1,965	(41,179)
Income tax expense (benefit)	415	(133)	14	(281)
Net income (loss)	$ 3,192	$ (7,177)	$ 1,951	$ (40,898)
Weighted-average common shares outstanding:
Basic (in shares)	22,948	22,920	22,934	22,902
Diluted (in shares)	22,959	22,920	22,944	22,902
Earnings (Loss) per common share:
Basic (in dollars per share)	$ 0.14	$ (0.31)	$ 0.09	$ (1.79)
Diluted (in dollars per share)	$ 0.14	$ (0.31)	$ 0.09	$ (1.79)

Weichai Transactions (Details)	3 Months Ended		9 Months Ended
Weichai Transactions (Details)	Sep. 30, 2022 USD ($) agreement	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) agreement	Sep. 30, 2021 USD ($)	Apr. 20, 2022 USD ($)	Mar. 25, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 10, 2021 USD ($)
Subsidiary, Sale of Stock [Line Items]
Debt instrument, number of loan agreements \| agreement	4		4
Purchased inventory	$ 3,500,000	$ 3,200,000	$ 10,600,000	$ 9,900,000
Collaborative arrangement, receivable	500,000		500,000
Outstanding payables	22,400,000		22,400,000				$ 12,500,000
Société Internationale Des Moteurs Baudouin \| International Distribution and Sales Agreement
Subsidiary, Sale of Stock [Line Items]
Collaborative arrangement, receivable	1,500,000		1,500,000				$ 0
Net sales from related party	1,400,000	$ 0	1,500,000	$ 0
Revolving credit facility \| First Shareholder's Loan Agreement, Weichai
Subsidiary, Sale of Stock [Line Items]
Maximum borrowing capacity	130,000,000		130,000,000			$ 130,000,000
Revolving credit facility \| Second Shareholder's Loan Agreement, Weichai
Subsidiary, Sale of Stock [Line Items]
Maximum borrowing capacity	25,000,000		25,000,000			$ 25,000,000
Revolving credit facility \| Third Shareholder's Loan Agreement, Weichai
Subsidiary, Sale of Stock [Line Items]
Maximum borrowing capacity	50,000,000		50,000,000					$ 50,000,000
Revolving credit facility \| Fourth Shareholder's Loan Agreement, Weichai
Subsidiary, Sale of Stock [Line Items]
Maximum borrowing capacity	$ 30,000,000		$ 30,000,000		$ 30,000,000

Property, Plant and Equipment

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment by type were as follows:


(in thousands)	As of September 30, 2022		As of December 31, 2021
Property, Plant and Equipment


Leasehold improvements	$	7,107	$	7,107
Machinery and equipment	44,915		44,358
Construction in progress	812		1,125
Total property, plant and equipment, at cost	52,834		52,590
Accumulated depreciation	(38,445)		(35,246)
Property, plant and equipment, net	$	14,389	$	17,344

Weichai Transactions

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Weichai Transactions

Weichai Shareholder’s Loan Agreements

The Company is party to four shareholder’s loan agreements with Weichai, including the $130 million Amended First Shareholder’s Loan Agreement, the $25 million Amended Second Shareholder’s Loan Agreement, the $50 million Third

Shareholder’s Loan Agreement, and the $30 million Fourth Shareholder’s Loan Agreement. See additional discussion of these debt agreements 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 select 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 and nine months ended September 30, 2022 and 2021, the Company’s sales to Weichai were immaterial in all periods. Purchases of inventory from Weichai were $3.5 million and $10.6 million for the three and nine months ended September 30, 2022, respectively. Purchases of inventory from Weichai were $3.2 million and $9.9 million for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022 and December 31, 2021, the Company had $0.5 million and immaterial receivables from Weichai, respectively and outstanding accounts payables to Weichai of $22.4 million and $12.5 million, respectively.

In January 2022, PSI and Société Internationale des Moteurs Baudouin (“Baudouin”), a subsidiary of Weichai, entered into an international distribution and sales agreement which enables Baudouin to bring PSI’s power systems line of products into the European, Middle Eastern, and African markets. In addition to sales, Baudouin will manage service, support, warranty claims, and technical requests. The Company’s sales to Baudouin were $1.4 million and $1.5 million for the three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2021 there were no Company sales to Baudouin. As of September 30, 2022 and December 31, 2021, the Company had $1.5 million and no receivables from Baudouin, 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, 2021	23,117	191	22,926
Net shares issued for Stock awards	—	(24)	24



Balance as of September 30, 2022	23,117	167	22,950

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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-Subparagraph (i)
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating Leases
Operating lease ROU assets, net	$ 10,742	$ 13,545
Operating lease liabilities, current	3,442	3,978
Operating lease liabilities, non-current	7,886	10,304
Total operating lease liabilities	11,328	14,282
Finance Leases
Finance lease ROU assets, net	246	364
Finance lease liabilities, current	89	147
Finance lease liabilities, non-current	193	260
Total finance lease liabilities	$ 282	$ 407
Operating ROU assets, net, statement of financial position, extensible list	Other noncurrent assets	Other noncurrent assets
Finance ROU assets, net, statement of financial position, extensible list	Property, plant and equipment, net	Property, plant and equipment, net
Operating lease liabilities, current, statement of financial position, extensible list	Other accrued liabilities	Other accrued liabilities
Finance lease liabilities, current, statement of financial position, extensible list	Current maturities of long-term debt	Current maturities of long-term debt
Operating lease liabilities, noncurrent, statement of financial position, extensible list	Other noncurrent liabilities	Other noncurrent liabilities
Finance lease liabilities, noncurrent, statement of financial position, extensible list	Long-term debt, net of current maturities	Long-term debt, net of current maturities

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings (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 earnings (loss) per share for the three and nine months ended September 30, 2022 and 2021.

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 2021 Annual Report for additional information on the SARs and the RSAs.

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


(in thousands, except per share basis)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	3,192	$	(7,177)	$	1,951	$	(40,898)





Denominator:
Shares used in computing net income (loss) per share:
Weighted-average common shares outstanding – basic	22,948		22,920		22,934		22,902
Effect of dilutive securities	11		—		10		—
Weighted-average common shares outstanding – diluted	22,959		22,920		22,944		22,902

Earnings (Loss) per common share:
Earnings (Loss) per share of common stock - basic	$	0.14	$	(0.31)	$	0.09	$	(1.79)
Earnings (Loss) per share of common stock - diluted	$	0.14	$	(0.31)	$	0.09	$	(1.79)

The aggregate number of shares excluded from the diluted earnings (loss) per share calculations, because they would have been anti-dilutive, were 0.1 million for both three months ended September 30, 2022 and 2021, and 0.2 million for both nine months ended September 30, 2022 and 2021. For the three and nine months ended September 30, 2022 and 2021, SARs and RSAs were not included in the diluted earnings (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.

Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 29,835	$ 29,835
Accumulated impairment losses	$ 11,600	$ 11,600

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between November 2022 and July 2034. For the three and nine months ended September 30, 2022, the Company recorded lease expense of $1.6 million and $4.7 million within Cost of sales, $0.1 million and $0.2 million within Research, development, and engineering expenses, less than $0.1 million within Selling, general and administrative expenses for both periods and less than $0.1 million within Interest expense for both periods in the Consolidated Statements of Operations. For the three and nine months ended September 30, 2021, the Company recorded lease expense of $1.4 million and $4.4 million within Cost of sales, $0.1 million and $0.3 million within Research, development and engineering expenses, $0.1

million and less than $0.1 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense for both periods in the Consolidated Statements of Operations.

The following table summarizes the components of lease expense:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021

Operating lease cost	$	1,150	$	1,194	$	3,489	$	3,661
Finance lease cost
Amortization of right-of-use (“ROU”) asset	31		40		119		144
Interest expense	5		7		17		26
Short-term lease cost	24		38		89		270
Variable lease cost	306		326		1,026		840
Sublease income	(259)		—		(795)		—
Total lease cost	$	1,257	$	1,605	$	3,945	$	4,941

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


(in thousands)	For the Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	3,642	$	3,731
Operating cash flows paid for interest portion of finance leases	16		26
Financing cash flows paid for principal portion of finance leases	125		144
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		9
Finance leases	—		—

As of September 30, 2022 and December 31, 2021, the weighted-average remaining lease term for both periods was 5.8 years for operating leases and 3.3 years for finance leases. The weighted-average discount rate was 7.0% and 7.1% for operating leases as of September 30, 2022 and December 31, 2021, respectively, and 6.6% and 6.5% for finance leases as of September 30, 2022 and December 31, 2021, respectively.

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


(in thousands)	September 30, 2022		December 31, 2021

Operating lease ROU assets, net 1	$	10,742	$	13,545

Operating lease liabilities, current 2	3,442		3,978
Operating lease liabilities, non-current 3	7,886		10,304
Total operating lease liabilities	$	11,328	$	14,282

Finance lease ROU assets, net 1	$	246	$	364

Finance lease liabilities, current 2	89		147
Finance lease liabilities, non-current 3	193		260
Total finance lease liabilities	$	282	$	407

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 September 30, 2022:


(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2022	$	1,217	$	26
Year ending December 31, 2023	3,347		103
Year ending December 31, 2024	1,815		85
Year ending December 31, 2025	1,851		82
Year ending December 31, 2026	1,515		16
Thereafter	4,023		—
Total undiscounted lease payments	13,768		312
Less: imputed interest	2,440		30
Total lease liabilities	$	11,328	$	282

Leases

The following table summarizes the components of lease expense:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021

Operating lease cost	$	1,150	$	1,194	$	3,489	$	3,661
Finance lease cost
Amortization of right-of-use (“ROU”) asset	31		40		119		144
Interest expense	5		7		17		26
Short-term lease cost	24		38		89		270
Variable lease cost	306		326		1,026		840
Sublease income	(259)		—		(795)		—
Total lease cost	$	1,257	$	1,605	$	3,945	$	4,941

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


(in thousands)	For the Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	3,642	$	3,731
Operating cash flows paid for interest portion of finance leases	16		26
Financing cash flows paid for principal portion of finance leases	125		144
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		9
Finance leases	—		—

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


(in thousands)	September 30, 2022		December 31, 2021

Operating lease ROU assets, net 1	$	10,742	$	13,545

Operating lease liabilities, current 2	3,442		3,978
Operating lease liabilities, non-current 3	7,886		10,304
Total operating lease liabilities	$	11,328	$	14,282

Finance lease ROU assets, net 1	$	246	$	364

Finance lease liabilities, current 2	89		147
Finance lease liabilities, non-current 3	193		260
Total finance lease liabilities	$	282	$	407

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 September 30, 2022:


(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2022	$	1,217	$	26
Year ending December 31, 2023	3,347		103
Year ending December 31, 2024	1,815		85
Year ending December 31, 2025	1,851		82
Year ending December 31, 2026	1,515		16
Thereafter	4,023		—
Total undiscounted lease payments	13,768		312
Less: imputed interest	2,440		30
Total lease liabilities	$	11,328	$	282

Revenue

9 Months Ended

Sep. 30, 2022

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 September 30,				For the Nine Months Ended September 30,
End Market	2022		2021		2022		2021
Power Systems	$	42,693	$	31,801	$	127,904	$	81,611
Industrial	59,419		40,576		163,671		111,796
Transportation	22,788		45,253		52,751		135,872
Total	$	124,900	$	117,630	$	344,326	$	329,279

The following table summarizes net sales by geographic area:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Geographic Area	2022		2021		2022		2021
United States	$	89,661	$	103,872	$	250,026	$	293,424
North America (outside of United States)	2,903		1,894		10,623		6,126
Pacific Rim	20,083		7,914		56,599		18,862
Europe	7,028		1,729		13,787		5,297
Other	5,225		2,221		13,291		5,570
Total	$	124,900	$	117,630	$	344,326	$	329,279

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 September 30, 2022		As of December 31, 2021
Short-term contract assets (included in Prepaid expenses and other current assets)	$	3,096	$	2,707

Short-term contract liabilities (included in Other accrued liabilities)	(1,630)		(1,819)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,412)		(3,330)
Net contract liabilities	$	(1,946)	$	(2,442)

During the nine months ended September 30, 2022 and 2021, the Company recognized $0.5 million and $32.5 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, 2021 and 2020, respectively.

Remaining Performance Obligations

For performance obligations that extend beyond one year, the Company had $4.4 million of remaining performance obligations as of September 30, 2022 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 $0.4 million in the remainder of 2022, $0.9 million in 2023, $1.0 million in 2024, $0.5 million in 2025, $0.2 million in 2026 and less than $1.5 million in 2027 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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash used in operating activities
Net income (loss)	$ 1,951	$ (40,898)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of intangible assets	1,598	1,901
Depreciation	3,532	3,647
Stock-based compensation expense	315	334
Amortization of financing fees	1,730	2,102
Deferred income taxes	25	179
Other adjustments, net	900	652
Changes in operating assets and liabilities:
Accounts receivable, net	(17,635)	5,611
Income taxes receivable	3,710	0
Inventory, net	14,548	(37,167)
Prepaid expenses and other assets	(6,289)	(2,497)
Accounts payable	(20,186)	58,798
Other current liabilities	7,802	(26,911)
Other noncurrent liabilities	(9,708)	(4,852)
Net cash used in operating activities	(17,707)	(39,101)
Cash (used in) provided by investing activities
Capital expenditures	(991)	(2,156)
Return of investment in joint venture	0	2,263
Other investing activities, net	0	88
Net cash (used in) provided by investing activities	(991)	195
Cash provided by financing activities
Repayments of long-term debt and lease liabilities	(203)	(286)
Proceeds from short-term financings	31,582	26,309
Repayment of short-term financings	(581)	(708)
Payments of deferred financing costs	(1,787)	(2,562)
Other financing activities, net	(3)	(40)
Net cash provided by financing activities	29,008	22,713
Net increase (decrease) in cash, cash equivalents, and restricted cash	10,310	(16,193)
Cash, cash equivalents, and restricted cash at beginning of the period	9,732	24,267
Cash, cash equivalents, and restricted cash at end of the period	20,042	8,074
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets
Cash and cash equivalents	16,477	4,993
Restricted cash	3,565	3,081
Total cash, cash equivalents, and restricted cash	$ 20,042	$ 8,074

Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill

The carrying amount of goodwill at both September 30, 2022 and December 31, 2021 was $29.8 million. Accumulated impairment losses at both September 30, 2022 and December 31, 2021 were $11.6 million.

Other Intangible Assets

Components of intangible assets are as follows:


(in thousands)	As of September 30, 2022
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	34,940	$	(29,024)	$	5,916
Developed technology	700		(700)		—
Trade names and trademarks	1,700		(1,430)		270
Total	$	37,340	$	(31,154)	$	6,186


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

Customer relationships	$	34,940	$	(27,514)	$	7,426
Developed technology	700		(680)		20
Trade names and trademarks	1,700		(1,362)		338
Total	$	37,340	$	(29,556)	$	7,784

Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

Weichai Transactions

Weichai Shareholder’s Loan Agreements

Shareholder’s Loan Agreement, and the $30 million Fourth Shareholder’s Loan Agreement. See additional discussion of these debt agreements in Note 6. Debt.

Weichai Collaboration Arrangement and Related Party Transactions

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, 2021	23,117	191	22,926
Net shares issued for Stock awards	—	(24)	24



Balance as of September 30, 2022	23,117	167	22,950

- Definition

+ References

+ Details

Summary of Significant Accounting Policies and Other Information - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Inventories
Raw materials	$ 103,512		$ 120,130
Work in process	4,697		8,923
Finished goods	22,056		16,509
Total inventories	130,265		145,562
Inventory allowance	(3,044)		(3,370)
Inventories, net	127,221		$ 142,192
Inventory Allowance
Balance at beginning of period	3,370	$ 3,328
Charged to expense	604	607
Write-offs	(930)	(559)
Balance at end of period	$ 3,044	$ 3,376

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock
Beginning balance at Dec. 31, 2020	$ 6,097	$ 23	$ 157,262	$ (149,894)	$ (1,294)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(40,898)			(40,898)
Stock-based compensation expense	334		234		100
Common stock issued for stock-based awards, net	(40)				(40)
Ending balance at Sep. 30, 2021	(34,507)	23	157,496	(190,792)	(1,234)
Beginning balance at Jun. 30, 2021	(27,396)	23	157,394	(183,615)	(1,198)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(7,177)			(7,177)
Stock-based compensation expense	102		102		0
Common stock issued for stock-based awards, net	(36)				(36)
Ending balance at Sep. 30, 2021	(34,507)	23	157,496	(190,792)	(1,234)
Beginning balance at Dec. 31, 2021	(42,023)	23	157,436	(198,366)	(1,116)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	1,951			1,951
Stock-based compensation expense	315		167		148
Common stock issued for stock-based awards, net	(3)				(3)
Ending balance at Sep. 30, 2022	(39,760)	23	157,603	(196,415)	(971)
Beginning balance at Jun. 30, 2022	(43,013)	23	157,689	(199,607)	(1,118)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	3,192			3,192
Stock-based compensation expense	62		(86)		148
Common stock issued for stock-based awards, net	(1)				(1)
Ending balance at Sep. 30, 2022	$ (39,760)	$ 23	$ 157,603	$ (196,415)	$ (971)

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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- 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.

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+ Details

Revenue - Disaggregation of Revenue and Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total	$ 124,900	$ 117,630	$ 344,326	$ 329,279
United States
Disaggregation of Revenue [Line Items]
Total	89,661	103,872	250,026	293,424
North America (outside of United States)
Disaggregation of Revenue [Line Items]
Total	2,903	1,894	10,623	6,126
Pacific Rim
Disaggregation of Revenue [Line Items]
Total	20,083	7,914	56,599	18,862
Europe
Disaggregation of Revenue [Line Items]
Total	7,028	1,729	13,787	5,297
Other
Disaggregation of Revenue [Line Items]
Total	5,225	2,221	13,291	5,570
Power Systems
Disaggregation of Revenue [Line Items]
Total	42,693	31,801	127,904	81,611
Industrial
Disaggregation of Revenue [Line Items]
Total	59,419	40,576	163,671	111,796
Transportation
Disaggregation of Revenue [Line Items]
Total	$ 22,788	$ 45,253	$ 52,751	$ 135,872