Company: TISI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000318833-25-000070
Chunk: 113

Company: TEAM INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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ution adjustments, including for stock dividends, stock splits, reclassifications, non-cash distributions, cash dividends, certain equity issuances and business combination transactions. The warrants can be exercised by rendering cash or by means of a cashless option as set forth in the agreement.Accumulated Other Comprehensive lossA summary of changes in accumulated other comprehensive income (loss) included within shareholders’ equity (deficit) is as follows (in thousands):

 Nine Months EndedSeptember 30, 2025Nine Months EndedSeptember 30, 2024 (unaudited)(unaudited) ForeignCurrencyTranslationAdjustmentsDefined Benefit Pension PlansTaxProvisionTotalForeignCurrencyTranslationAdjustmentsDefined Benefit Pension PlansTaxProvisionTotalBalance, beginning of period$(33,249)$(10,951)$71 $(44,129)$(25,853)$(11,041)$(38)$(36,932)Other comprehensive income (loss)6,954 299 (148)7,105 1,317 264 78 1,659 Balance, end of period$(26,295)$(10,652)$(77)$(37,024)$(24,536)$(10,777)$40 $(35,273)       

13. REDEEMABLE PREFERRED STOCK

On September 11, 2025, the Company entered into the Purchase Agreement with the “Stellex Holder” which provided for, among other things, the issuance of 75,000 shares of  preferred stock, $100.00 par value per share, of the Company designated as Series B Preferred Stock (the “Series B Preferred Stock”), for aggregate gross proceeds of $75.0 million. In connection with the transaction, the Company also issued the Stellex Holder 1,453,260 warrants (see Note 12 - Shareholders’ Equity for additional detail).  Classification and fair value allocation. The Series B Preferred Stock is classified as temporary equity in the mezzanine section of the consolidated balance sheets, as it is potentially redeemable for cash if required by the holder beginning December 31, 2030, and under certain other events outside the Company’s control.The proceeds from the Series B Transactions were allocated based on relative fair value of the warrants and the Series B Preferred Stock: $20.9 million was allocated to warrants and $54.1 million was allocated to the Series B Preferred Stock.Total issuance costs of $7.0 million were allocated to the Series B