Company: FTCI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047224
Chunk: 234

Company: FTC Solar, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 234
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1 million and $0.7 million during the years ended December 31, 2024 and 2023, respectively.In connection with the creation of Alpha Steel, we also entered into a three-year equipment supply agreement (the "Supply Agreement") with Alpha Steel, the terms of which will apply to our equipment purchase orders. Pursuant to the Supply Agreement, we have committed to placing a minimum level of purchase orders for torque tubes with Alpha Steel during the period from January 1, 2024 to June 30, 2025, with such volume commitments increasing in each of the next two annual periods. In the event we fail to meet our minimum required purchase commitments in any period, we would contractually be required to make a cash payment for the net profit attributable to any unfilled requirements, calculated as specified in the agreement, in an amount not to exceed $4.0 million in the aggregate. As of December 31, 2024, we had met approximately 19% of our required purchase commitments for the period ending June 30, 2025. The Supply Agreement may be terminated early in accordance with its provisions or may be extended beyond the initial term if mutually agreed to by the parties.At December 31, 2024 and 2023, we were contingently liable for unpaid vendor obligations, including issued but unsatisfied purchase orders, of Alpha Steel totaling approximately $0.2 million and $3.4 million, respectively. We expect Alpha Steel will be able to satisfy these obligations with financial resources available to them in the normal course of operations.

Note 12. Accrued expenses and other current liabilitiesAccrued expenses and other current liabilities consisted of the following:

        (in thousands)
         
        December 31, 2024

        December 31, 2023

        Accrued cost of revenue
         
        $
        13,033

        $
        26,773

        Related party accrued cost of revenue

        1,718

        1,451

        Accrued compensation

        3,687

        3,858

        Other accrued expenses

        1,696

        2,766

        Total accrued expenses
         
        $
        20,134

        $
        34,848

        Warranty reserves
         
        $
        9,482

        $
        7,279

        Current portion of operating lease liability

        755

        740