# EDGAR Filing Document

**Accession Number:** 0001120370
**File Stem:** 0001437749-25-026122
**Filing Date:** 2025-8
**Character Count:** 296571
**Document Hash:** 7f0fbdc8c678a77cadb9d7ca68329ed8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-026122.hdr.sgml**: 20250812

**ACCESSION NUMBER**: 0001437749-25-026122

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 77

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250812

**DATE AS OF CHANGE**: 20250812

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BROADWIND, INC.
- **CENTRAL INDEX KEY:** 0001120370
- **STANDARD INDUSTRIAL CLASSIFICATION:** NONFERROUS FOUNDRIES (CASTINGS) [3360]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 880409160
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34278
- **FILM NUMBER:** 251205625

**BUSINESS ADDRESS:**
- **STREET 1:** 3240 S. CENTRAL AVENUE
- **CITY:** CICERO
- **STATE:** IL
- **ZIP:** 60804
- **BUSINESS PHONE:** 708-780-4800

**MAIL ADDRESS:**
- **STREET 1:** 3240 S. CENTRAL AVENUE
- **CITY:** CICERO
- **STATE:** IL
- **ZIP:** 60804

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BROADWIND ENERGY, INC.
- **DATE OF NAME CHANGE:** 20080304

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TOWER TECH HOLDINGS INC.
- **DATE OF NAME CHANGE:** 20060210

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BLACKFOOT ENTERPRISES INC
- **DATE OF NAME CHANGE:** 20000726

?xml version='1.0' encoding='ASCII'? bwen20250630_10q.htm

[**Table of Contents**](#toc)

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to**

**Commission file number 001-34278**

## BROADWIND, INC.
(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **88-0409160** |
| (State or other jurisdiction<br> of incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

**3240 S. Central Avenue, Cicero, IL 60804**

(Address of principal executive offices)

**(708) 780-4800**

(Registrant's telephone number, including area code)

**Not applicable**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock, $0.001 par value | BWEN | The NASDAQ Capital Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding twelve months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act:

---

| | |
|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Non-accelerated filer ☒ | Smaller reporting company ☒ |
| Emerging growth company ☐ |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period to comply with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of registrant's common stock, par value $0.001, outstanding as of August 7, 2025: 23,041,464.

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[**Table of Contents**](#toc)

**BROADWIND, INC. AND SUBSIDIARIES**

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | **Page No.** |
| [**PART I. FINANCIAL INFORMATION**](#Part1) | [**PART I. FINANCIAL INFORMATION**](#Part1) | [**PART I. FINANCIAL INFORMATION**](#Part1) |
| [Item 1.](#Item1_Fin) | [Unaudited Financial Statements](#Item1_Fin) | [1](#Item1_Fin) |
|  | [Condensed Consolidated Balance Sheets](#BalanceSheets) | [1](#BalanceSheets) |
|  | [Condensed Consolidated Statements of Operations](#Operations) | [2](#Operations) |
|  | [Condensed Consolidated Statements of Stockholders' Equity](#Equity) | [3](#Equity) |
|  | [Condensed Consolidated Statements of Cash Flows](#CashFlows) | [4](#CashFlows) |
|  | [Notes to Condensed Consolidated Financial Statements](#Notes) | [5](#Notes) |
| [Item 2.](#Item2_MDA) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item2_MDA) | [17](#Item2_MDA) |
| [Item 3.](#Item3_QQ) | [Quantitative and Qualitative Disclosures About Market Risk](#Item3_QQ) | [27](#Item3_QQ) |
| [Item 4.](#Item4_Controls) | [Controls and Procedures](#Item4_Controls) | [27](#Item4_Controls) |
| [**PART II. OTHER INFORMATION**](#Part2) | [**PART II. OTHER INFORMATION**](#Part2) | [**PART II. OTHER INFORMATION**](#Part2) |
| [Item 1.](#Item1_Legal) | [Legal Proceedings](#Item1_Legal) | [28](#Item1_Legal) |
| [Item 1A.](#Item1A_Risk) | [Risk Factors](#Item1A_Risk) | [28](#Item1A_Risk) |
| [Item 2.](#Item2_Unreg) | [Unregistered Sales of Equity Securities and Use of Proceeds](#Item2_Unreg) | [28](#Item2_Unreg) |
| [Item 3.](#Item3_Defaults) | [Defaults Upon Senior Securities](#Item3_Defaults) | [28](#Item3_Defaults) |
| [Item 4.](#Item4_Mine) | [Mine Safety Disclosures](#Item4_Mine) | [28](#Item4_Mine) |
| [Item 5.](#Item5_Other) | [Other Information](#Item5_Other) | [28](#Item5_Other) |
| [Item 6.](#Item6_Exhibits) | [Exhibits](#Item6_Exhibits) | [28](#Item6_Exhibits) |
| [Signatures](#Signatures) |  | [30](#Signatures) |

---

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[**Table of Contents**](#toc)

**PART I.&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**BROADWIND, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| Cash | $1037 | $7721 |
| Accounts receivable, net | 15436 | 13454 |
| AMP credit receivable | 2880 | 2533 |
| Contract assets | 1593 | 836 |
| Inventories | 51432 | 39950 |
| Prepaid expenses and other current assets | 2074 | 2374 |
| Assets held for sale | 3849 |  |
| Total current assets | 78301 | 66868 |
| **LONG-TERM ASSETS:** |  |  |
| Property and equipment, net | 40635 | 45572 |
| Operating lease right-of-use assets | 9982 | 13841 |
| Intangible assets, net | 1072 | 1403 |
| Other assets | 521 | 606 |
| **TOTAL ASSETS** | $130511 | $128290 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES:** |  |  |
| Line of credit and current maturities of long-term debt | $19099 | $1454 |
| Current portion of finance lease obligations | 2229 | 2266 |
| Current portion of operating lease obligations | 1606 | 2115 |
| Accounts payable | 20025 | 16080 |
| Accrued liabilities | 4007 | 3605 |
| Customer deposits | 4341 | 18037 |
| Total current liabilities | 51307 | 43557 |
| **LONG-TERM LIABILITIES:** |  |  |
| Long-term debt, net of current maturities | 7006 | 7742 |
| Long-term finance lease obligations, net of current portion | 3089 | 3777 |
| Long-term operating lease obligations, net of current portion | 10150 | 13799 |
| Other | 6 | 15 |
| Total long-term liabilities | 20251 | 25333 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |
| **STOCKHOLDERS' EQUITY:** |  |  |
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding |  |  |
| Common stock, $0.001 par value; 45,000,000 shares authorized; 23,315,401 and 22,593,589 shares issued as of June 30, 2025, and December 31, 2024, respectively | 23 | 23 |
| Treasury stock, at cost, 273,937 shares as of June 30, 2025 and December 31, 2024 | (1842) | (1842) |
| Additional paid-in capital | 402476 | 401564 |
| Accumulated deficit | (341704) | (340345) |
| Total stockholders' equity | 58953 | 59400 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $130511 | $128290 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

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[**Table of Contents**](#toc)

**BROADWIND, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

**(in thousands, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Revenues | $39235 | $36452 | $76073 | $74068 |
| Cost of sales | 35260 | 30886 | 67772 | 61865 |
| Gross profit | 3975 | 5566 | 8301 | 12203 |
| **OPERATING EXPENSES:** |  |  |  |  |
| Selling, general and administrative | 3974 | 4143 | 7951 | 8537 |
| Intangible amortization | 166 | 166 | 331 | 331 |
| Total operating expenses | 4140 | 4309 | 8282 | 8868 |
| Operating (loss) income | (165) | 1257 | 19 | 3335 |
| **OTHER (EXPENSE) INCOME, net:** |  |  |  |  |
| Interest expense, net | (783) | (726) | (1299) | (1258) |
| Other, net | (8) | 4 | (10) | 7 |
| Total other expense, net | (791) | (722) | (1309) | (1251) |
| Net (loss) income before provision for income taxes | (956) | 535 | (1290) | 2084 |
| Provision for income taxes | 33 | 53 | 69 | 92 |
| **NET (LOSS) INCOME** | (989) | 482 | (1359) | 1992 |
| **NET (LOSS) INCOME PER COMMON SHARE—BASIC:** |  |  |  |  |
| Net (loss) income | $(0.04) | $0.02 | $(0.06) | $0.09 |
| **WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—BASIC** | 22773 | 21783 | 22568 | 21689 |
| **NET (LOSS) INCOME PER COMMON SHARE—DILUTED:** |  |  |  |  |
| Net (loss) income | $(0.04) | $0.02 | $(0.06) | $0.09 |
| **WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—DILUTED** | 22773 | 22003 | 22568 | 21904 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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[**Table of Contents**](#toc)

**BROADWIND, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(UNAUDITED)**

**(in thousands, except share data)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Common Stock*** | ***Treasury Stock*** | ***Treasury Stock*** | ***Additional*** |  |  |
|  | ***Shares*** | ***Issued*** |  | ***Issued*** | ***Paid-in*** | ***Accumulated*** |  |
|  | ***Issued*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Total*** |
| **BALANCE, December 31, 2023** | 21840301 | $22 | (273937) | $(1842) | $399336 | $(341497) | $56019 |
| Stock issued under defined contribution 401(k) retirement savings plan | 107305 |  |  |  | 287 |  | 287 |
| Share-based compensation | *—* |  | *—* |  | 225 |  | 225 |
| Net income | *—* |  | *—* |  |  | 1510 | 1510 |
| **BALANCE, March 31, 2024** | 21947606 | $22 | (273937) | $(1842) | $399848 | $(339987) | $58041 |
| &nbsp;&nbsp;&nbsp; Stock issued for restricted stock | 240397 | *—* |  | *—* | *—* | *—* | *—* |
| &nbsp;&nbsp;&nbsp; Stock issued under defined contribution 401(k) retirement savings plan | 118161 |  |  |  | 308 |  | 308 |
| &nbsp;&nbsp;&nbsp; Share-based compensation | *—* |  | *—* |  | 351 |  | 351 |
| &nbsp;&nbsp;&nbsp; Shares withheld for taxes in connection with issuance of restricted stock | (46668) |  |  |  | (130) |  | (130) |
| &nbsp;&nbsp;&nbsp; Net income | *—* |  | *—* |  |  | 482 | 482 |
| **BALANCE, June 30, 2024** | 22259496 | $22 | (273937) | $(1842) | $400377 | $(339505) | $59052 |
| **BALANCE, December 31, 2024** | 22593589 | $23 | (273937) | $(1842) | $401564 | $(340345) | $59400 |
| Stock issued for restricted stock | 268152 | *—* |  | *—* | *—* | *—* | *—* |
| Stock issued under defined contribution 401(k) retirement savings plan | 165189 |  |  |  | 286 |  | 286 |
| Share-based compensation | *—* |  | *—* |  | 189 |  | 189 |
| Shares withheld for taxes in connection with issuance of restricted stock | (124497) |  |  |  | (196) |  | (196) |
| &nbsp;&nbsp;&nbsp; Net loss | *—* |  | *—* |  |  | (370) | (370) |
| **BALANCE, March 31, 2025** | 22902433 | $23 | (273937) | $(1842) | $401843 | $(340715) | $59309 |
| &nbsp;&nbsp;&nbsp; Stock issued for restricted stock | 278914 | *—* |  | *—* | *—* | *—* | *—* |
| &nbsp;&nbsp;&nbsp; Stock issued under defined contribution 401(k) retirement savings plan | 178947 |  |  |  | 336 |  | 336 |
| &nbsp;&nbsp;&nbsp; Share-based compensation | *—* |  | *—* |  | 357 |  | 357 |
| &nbsp;&nbsp;&nbsp; Shares withheld for taxes in connection with issuance of restricted stock | (44893) |  |  |  | (60) |  | (60) |
| Net loss | *—* |  | *—* |  |  | (989) | (989) |
| **BALANCE, June 30, 2025** | 23315401 | $23 | (273937) | $(1842) | $402476 | $(341704) | $58953 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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[**Table of Contents**](#toc)

**BROADWIND, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (loss) income | $(1359) | $1992 |
| **Adjustments to reconcile net cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 3345 | 3314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (9) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 546 | 576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | (16) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock issued under defined contribution 401(k) plan | 622 | 595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of assets | (1) | (114) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (1966) | 5061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMP credit receivable | (347) | 5360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets | (757) | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (11482) | (1397) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 300 | 1111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 4134 | (4328) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 402 | (2130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer deposits | (13696) | (13728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets and liabilities | (214) | (41) |
| Net cash used in operating activities | (20498) | (3427) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of property and equipment | (2116) | (2534) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposals of property and equipment | 1 | 159 |
| Net cash used in investing activities | (2115) | (2375) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from line of credit, net | 17634 | 5914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from long-term debt |  | 1421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on long-term debt | (724) | (681) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on finance leases | (725) | (883) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares withheld for taxes in connection with issuance of restricted stock | (256) | (130) |
| Net cash provided by financing activities | 15929 | 5641 |
| **NET DECREASE IN CASH** | (6684) | (161) |
| CASH beginning of the period | 7721 | 1099 |
| **CASH end of the period** | $1037 | $938 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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[**Table of Contents**](#toc)

**BROADWIND, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**(Dollars are presented in thousands, except share, per share and per employee data or unless otherwise stated)**

**NOTE *1* — BASIS OF PRESENTATION**

The unaudited condensed consolidated financial statements presented herein include the accounts of Broadwind, Inc. (the "Company") and its wholly-owned subsidiaries Broadwind Heavy Fabrications, Inc. ("Broadwind Heavy Fabrications"), Brad Foote Gear Works, Inc. ("Brad Foote") and Broadwind Industrial Solutions, LLC ("Broadwind Industrial Solutions"). All intercompany transactions and balances have been eliminated. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the instructions to Form *10*-Q and Article *10* of Regulation S-*X.* Accordingly, the financial statements do *not* include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included.

Operating results for the *three* and *six* months ended *June 30, 2025* are *not* necessarily indicative of the results that *may* be expected for the *twelve* months ending *December 31, 2025,* or any other interim period, which *may* differ materially due to, among other things, the risk factors set forth in our Annual Report on Form *10*-K for the year ended *December 31, 2024* and in Part II, Item *1A* of this Quarterly Report on Form *10*-Q.

The *December 31, 2024* condensed consolidated balance sheet was derived from audited financial statements, but does *not* include all disclosures required by GAAP. This financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form *10*-K for the year ended *December 31, 2024*.

There have been *no* material changes in the Company's significant accounting policies during the *six* months ended *June 30, 2025* as compared to the significant accounting policies described in the Company's Annual Report on Form *10*-K for the year ended *December 31, 2024*.

**Company Description**

Through its subsidiaries, the Company is a precision manufacturer of structures, equipment and components for clean technology and other specialized applications. The Company provides technologically advanced high value products to customers with complex systems and stringent quality standards that operate in energy, mining and infrastructure sectors, primarily in the United States of America (the "U.S."). The Company's capabilities include, but are *not* limited to, the following: heavy fabrications, welding, metal rolling, coatings, gear cutting and shaping, gearbox manufacturing and repair, heat treatment, precision machining, assembly, engineering and packaging solutions. The Company's most significant presence is within the U.S. wind energy industry, which accounted for 52% and 40% of the Company's revenue during the *first six* months of *2025* and *2024,* respectively.

**Liquidity**

The Company typically meets its short term liquidity needs through cash generated from operations, its available cash balances, the *2022* Credit Facility (as defined below), equipment financing, access to the public and private debt and/or equity markets, and has the option to raise capital from the sale of the Company's securities under the Company's registration statement on Form S-*3* (as discussed below), and proceeds from any sales of Advanced Manufacturing Production tax credits ("AMP credits") (discussed in Note *6* "AMP Credits" of these condensed consolidated financial statements).

See Note *9,* "Debt and Credit Agreements," of these condensed consolidated financial statements for a description of the *2022* Credit Facility and the Company's other debt.

Debt and finance lease obligations at *June 30, 2025* totaled $31,423, which includes current outstanding debt and finance leases totaling $21,328. The Company's outstanding debt includes $7,037 outstanding from the senior secured term loan under the *2022* Credit Facility. During the *six* months ended *June 30, 2025,* the Company borrowed on the revolving line of credit and repaid a portion of such borrowings during the period. The Company had $17,634 drawn on the revolving line of credit as of *June 30, 2025.* The Company's revolving line of credit balance, if any, is included in the "Line of credit and current maturities of long-term debt" line item in the Company's condensed consolidated balance sheet.

On *September 22, 2023,* the Company filed a shelf registration statement on Form S-*3,* which was declared effective by the Securities and Exchange Commission (the "SEC") on *October 12, 2023 (*the "Form S-*3"*), replacing a prior shelf registration statement which expired on *October 12, 2023.* The Form S-*3* will expire on *October 12, 2026.* This shelf registration statement, which includes a base prospectus, allows the Company to offer any combination of securities described in the prospectus in *one* or more offerings. Unless otherwise specified in the prospectus supplement accompanying the base prospectus, the Company would use the net proceeds from the sale of any securities offered pursuant to the shelf registration statement for general corporate purposes.

On *September 12, 2022,* the Company entered into a Sales Agreement (the "Sales Agreement") with Roth Capital Partners, LLC and HC Wainwright & Co., LLC (collectively, the "Agents"). Pursuant to the terms of the Sales Agreement, the Company *may* sell from time to time through the Agents shares of the Company's common stock, par value $0.001 per share with an aggregate sales price of up to $12,000. The Company will pay a commission to the Agents of 2.75% of the gross proceeds of the sale of the shares sold under the Sales Agreement and reimburse the Agents for the expenses incident to the performance of their obligations under the Sales Agreement. *No* shares of the Company's common stock were issued under the Sales Agreement during the year ended *December 31, 2024* or during the *six* months ended *June 30, 2025.* As of *June 30, 2025,* shares of the Company's common stock having a value of approximately $11,667 remained available for issuance under the Sales Agreement. Any additional shares offered and sold under the Sales Agreement are to be issued pursuant to the Form S-*3* and a *424*(b) prospectus supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *5*

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The Company also utilizes supply chain financing arrangements as a component of its funding for working capital, which accelerates receivable collections and helps to better manage cash flow. Under these agreements, the Company has agreed to sell certain of its accounts receivable balances to banking institutions who have agreed to advance amounts equal to the net accounts receivable balances due, less a discount as set forth in the respective agreements. The balances under these agreements are accounted for as sales of accounts receivable, as they are sold without recourse. Cash proceeds from these agreements are reflected as operating activities included in the change in accounts receivable in the Company's consolidated statements of cash flows. Fees incurred in connection with the agreements are recorded as interest expense by the Company.

During the *three* and *six* months ended *June 30, 2025,* the Company sold account receivables totaling $13,111 and $21,952, respectively, related to supply chain financing arrangements, of which customers' financial institutions applied discount fees totaling $299 and $498, respectively. During the *three* and *six* months ended *June 30, 2024,* the Company sold account receivables totaling $13,234 and $20,039, respectively, related to supply chain financing arrangements, of which customers' financial institutions applied discount fees totaling $352 and $516, respectively.

The Company anticipates that current cash resources, amounts available under the *2022* Credit Facility, sales of shares under the Sales Agreement, cash to be generated from operations and equipment financing, access to the public and private debt and/or equity markets, any potential proceeds from the sale of further Company securities under the Form S-*3,* and proceeds from sales of AMP credits will be adequate to meet the Company's liquidity needs for at least the next *twelve* months.

If assumptions regarding the Company's production, sales and subsequent collections from certain of the Company's large customers, the Company's ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer, as well as receipt of customer deposits and revenues generated from new customer orders, are materially inconsistent with management's expectations, the Company *may* in the future encounter cash flow and liquidity issues, which could have a material adverse impact on the Company.

If the Company's operational performance deteriorates, the Company *may* be unable to comply with existing financial covenants, and could lose access to the *2022* Credit Facility. This could limit the Company's operational flexibility, require a delay in making planned investments and/or require us to seek additional equity or debt financing. Any attempt to raise equity through the public markets could have a negative effect on the Company's stock price, making an equity raise more difficult or more dilutive. Any additional equity financing or equity-linked financing, if available, will be dilutive to stockholders, and additional debt financing, if available, would likely require new financial covenants or impose other operating and financial restrictions on the Company and could be on less favorable terms than the *2022* Credit Facility. While management believes that the Company will continue to have sufficient cash available to operate its businesses and to meet the Company's financial obligations and debt covenants, there can be *no* assurances that the Company's operations will generate sufficient cash, or that credit facilities or equity or equity-linked financings will be available in an amount sufficient to enable the Company to meet these financial obligations.

**Reclassifications**

Certain prior year amounts have been reclassified to conform to current year presentation in the condensed consolidated financial statements and the notes to the condensed consolidated financial statements.

**Management's Use of Estimates**

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include inventory reserves, warranty reserves, impairment of long-lived assets, allowance for credit losses, health insurance reserves, and valuation allowances on deferred taxes. Although these estimates are based upon management's best knowledge of current events and actions that the Company *may* undertake in the future, actual results could differ from these estimates.

**NOTE *2* — REVENUES** 

Revenues are recognized when the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The following table presents the Company's revenues disaggregated by revenue source for the *three* and *six* months ended *June 30, 2025* and *2024*:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Heavy Fabrications | $24989 | $19611 | $50236 | $41628 |
| Gearing | 7284 | 10454 | 13251 | 18791 |
| Industrial Solutions | 7363 | 6463 | 13010 | 14456 |
| Eliminations | (401) | (76) | (424) | (807) |
| Consolidated | $39235 | $36452 | $76073 | $74068 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *6*

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Revenue within the Company's Gearing and Industrial Solutions segments, as well as industrial fabrication product line revenues within the Heavy Fabrications segment, are generally recognized at a point in time, typically when the promised goods or services are physically transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The Company measures revenue based on the consideration specified in the purchase order and revenue is recognized when the performance obligations are satisfied. If applicable, the transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation.

For substantially all wind sales within the Company's Heavy Fabrications segment as well as certain sales within our Gearing segment, products are sold under terms included in bill and hold sales arrangements that result in different timing for revenue recognition. The Company recognizes revenue under these arrangements only when there is a substantive reason for the agreement, the ordered goods are identified separately as belonging to the customer and *not* available to fill other orders, the goods are currently ready for physical transfer to the customer, and the Company does *not* have the ability to use the product or to direct it to another customer. Assuming these required revenue recognition criteria are met, revenue is recognized upon completion of product manufacture and customer acceptance. During the *three* and *six* months ended *June 30, 2025,* the Company recognized $221 and $436, respectively, of revenue within the Gearing segment under terms included in bill and hold sales arrangements. During the *three* and *six* months ended *June 30, 2024,* the Company did not recognize any revenue within the Gearing segment under terms included in bill and hold sales arrangements.

During the *six* months ended *June 30, 2025* and *2024,* the Company recognized a portion of revenue within the Heavy Fabrications segment over time, as the products had *no* alternative use to the Company and the Company had an enforceable right to payment, including profit, upon termination of the contracts. Because the projects are labor intensive, the Company uses labor hours as the input measure of progress for the applicable contracts. Within the Heavy Fabrications segment, the Company recognized revenue for contracts that meet over time criteria of $2,665 and $3,662 for the *three* and *six* months ended *June 30, 2025,* respectively. Within the Heavy Fabrications segment, the Company recognized revenue for contracts that meet over time criteria of $2,067 and $2,347 for the *three* and *six* months ended *June 30, 2024,* respectively. Contract assets are recorded when performance obligations are satisfied but the Company is *not* yet entitled to payment. Contract assets represent the Company's rights to consideration for work completed but *not* billed at the end of the period.

The Company generally expenses sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. Customer deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in the Company's statement of operations.

The Company does *not* disclose the value of the unsatisfied performance obligations for contracts with an original expected length of *one* year or less.

**NOTE *3* — NET INCOME PER SHARE**

The following table presents a reconciliation of basic and diluted income per share for the *three* and *six* months ended *June 30, 2025* and *2024*, as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** | ***Six Months Ended*** | ***Six Months Ended*** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Basic (loss) income per share calculation:** |  |  |  |  |
| Net (loss) income | $(989) | $482 | $(1359) | $1992 |
| Weighted average number of common shares outstanding | 22773271 | 21783219 | 22568350 | 21688941 |
| Basic net (loss) income per share | $(0.04) | $0.02 | $(0.06) | $0.09 |
| **Diluted (loss) income per share calculation:** |  |  |  |  |
| Net (loss) income | $(989) | $482 | $(1359) | $1992 |
| Weighted average number of common shares outstanding | 22773271 | 21783219 | 22568350 | 21688941 |
| Common stock equivalents: |  |  |  |  |
| Non-vested stock awards (1) |  | 219859 |  | 215515 |
| Weighted average number of common shares outstanding | 22773271 | 22003078 | 22568350 | 21904456 |
| Diluted net (loss) income per share | $(0.04) | $0.02 | $(0.06) | $0.09 |

---

(*1*) Restricted stock units granted and outstanding of 897,948 as of *June 30, 2025,* are excluded from the computation of diluted earnings due to the anti-dilutive effect as a result of the Company's net loss for the *three* and *six* months ended *June 30, 2025.*<br>

**NOTE *4*** — **ASSETS HELD FOR SALE** 

On *June 4, 2025,* the Company entered into a definitive agreement (the "Manitowoc Purchase Agreement") with Wisconsin Heavy Fabrication, LLC (the "Buyer") to sell certain assets used in its industrial fabrication operations in Manitowoc, Wisconsin including specified contracts, equipment, machinery and other personal property, and permits for an aggregate purchase price of up to $13,800 in cash, subject to certain purchase price adjustments. The transaction is expected to close during the *third* quarter of *2025,* subject to the satisfaction of customary closing conditions.

Since the sale is probable within a year and the Company has met all other held for sale accounting criteria, the related assets are reflected as held for sale as of *June 30, 2025.* The transaction does *not* reflect a strategic shift that will have a major effect on operations and financial results, and therefore, did *not* qualify for presentation as a discontinued operation. As the transaction is likely to close within *one* year, the assets are included in the current assets section of the Company's condensed consolidated balance sheets as of *June 30, 2025.* The results of the industrial fabrication operations in Manitowoc are included within the Heavy Fabrications segment. Assets classified as held for sale consist of the Manitowoc property and equipment and have been recognized at the lower of the carrying value and fair value less costs to sell, which was the carrying value. Depreciation of these assets ceased as of *June 4, 2025.*

**NOTE *5* — INVENTORIES**

The components of inventories as of *June 30, 2025* and *December 31, 2024* are summarized as follows:

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| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Raw materials | $29114 | $19651 |
| Work-in-process | 13580 | 9945 |
| Finished goods | 11121 | 12517 |
|  | 53815 | 42113 |
| Less: Reserve | (2383) | (2163) |
| Net inventories | $51432 | $39950 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

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**NOTE *6* — AMP CREDITS**

During the *three* and *six* months ended *June 30, 2025,* the Company recognized gross AMP credits totaling $3,132 and $5,904, respectively, within the Heavy Fabrications segment. During the *three* and *six* months ended *June 30, 2024,* the Company recognized gross AMP credits totaling $1,848 and $3,720, respectively, within the Heavy Fabrications segment. These AMP credits were introduced as part of the Inflation Reduction Act ("IRA"), which was enacted on *August 16, 2022.* The IRA includes advanced manufacturing tax credits for manufacturers of eligible components, including wind components. Manufacturers of wind components qualify for the AMP credits based on the total rated capacity, expressed on a per watt basis, of the completed wind turbine for which such component is designed. The credit applies to each component produced and sold in the U.S. beginning in *2023* through *2032.* The One Big Beautiful Bill Act (the "OBBBA"), enacted on *July 4, 2025,* eliminates the credit for components produced and sold after *2027.* Wind towers within the Company's Heavy Fabrications segment are eligible for credits of $0.03 per watt for each wind tower produced. In calculating the eligible credit, the Company relied on the megawatt rating provided by the customers. Manufacturers who qualify for the AMP credits can apply to the Internal Revenue Service for cash refunds of the AMP credits, sell the AMP credits to *third* parties for cash, or apply the AMP credits against taxable income. The Company recognized the AMP credits as a reduction to cost of sales in the Company's condensed consolidated statements of operations for the *three* and *six* months ended *June 30, 2025* and *June 30, 2024.* The assets related to the AMP credits are recognized as current assets in the "AMP credit receivable" line item in the Company's condensed consolidated balance sheets as of *June 30, 2025* and *December 31, 2024.*

During the *six* months ended *June 30, 2025,* the Company recognized gross AMP credits totaling $5,904 and recognized a 6.5% discount on the credits totaling $384, which was recognized in cost of sales. The Company also incurred other miscellaneous administrative costs related to the credits in the amount of $52, which have been recorded as cost of sales. Additionally, costs totaling $10 are included in the "Prepaid expenses and other current assets" line item of the Company's condensed consolidated financial statements at *June 30, 2025.* 

During the *six* months ended *June 30, 2024,* the Company recognized gross AMP credits totaling $3,720 and recognized a 6.5% discount on the credits totaling $242, which was recognized in cost of sales. The Company also incurred other miscellaneous administrative costs related to the credits in the amount of $65, which have been recorded as cost of sales. Additionally, costs totaling $28 are included in the "Prepaid expenses and other current assets" line item of the Company's condensed consolidated financial statements at *June 30, 2024.* 

**NOTE *7* — INTANGIBLE ASSETS**

Intangible assets represent the fair value assigned to definite-lived assets such as trade names and customer relationships as part of the Company's acquisition of Brad Foote completed in *2007* as well as the noncompetition agreements, trade names and customer relationships that were part of the Company's acquisition of Red Wolf Company, LLC completed in *2017.* Intangible assets are amortized on a straight-line basis over their estimated useful lives, with a remaining life range from 1 to 2 years.

As of *June 30, 2025* and *December 31, 2024*, the cost basis, accumulated amortization and net book value of intangible assets were as follows:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** |
|  |  |  |  |  | ***Remaining*** |  |  |  |  | ***Remaining*** |
|  |  |  |  |  | ***Weighted*** |  |  |  |  | ***Weighted*** |
|  |  |  | ***Accumulated*** | ***Net*** | ***Average*** |  |  | ***Accumulated*** | ***Net*** | ***Average*** |
|  | ***Cost*** | ***Accumulated*** | ***Impairment*** | ***Book*** | ***Amortization*** |  | ***Accumulated*** | ***Impairment*** | ***Book*** | ***Amortization*** |
|  | ***Basis*** | ***Amortization*** | ***Charges*** | ***Value*** | ***Period*** | ***Cost*** | ***Amortization*** | ***Charges*** | ***Value*** | ***Period*** |
| Intangible assets: |  |  |  |  |  |  |  |  |  |  |
| Customer relationships | $15979 | $(8234) | $(7592) | $153 | 0.6 | $15979 | $(8103) | $(7592) | $284 | 1.1 |
| Trade names | 9099 | (8180) |  | 919 | 2.3 | 9099 | (7980) |  | 1119 | 2.8 |
| Intangible assets | $25078 | $(16414) | $(7592) | $1072 | 2.1 | $25078 | $(16083) | $(7592) | $1403 | 2.5 |

---

As of *June 30, 2025*, estimated future amortization expense was as follows:

---

| | |
|:---|:---|
| 2025 | $331 |
| 2026 | 422 |
| 2027 | 319 |
| Total | $1072 |

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**NOTE *8* — ACCRUED LIABILITIES**

Accrued liabilities as of *June 30, 2025* and *December 31, 2024* consisted of the following:

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Accrued payroll and benefits | $2908 | $2968 |
| Accrued property taxes | 360 |  |
| Income taxes payable | 54 | 137 |
| Accrued professional fees | 56 | 81 |
| Accrued warranty liability | 189 | 167 |
| Self-insured workers compensation reserve | 58 | 10 |
| Accrued sales tax | 16 | 6 |
| Accrued other | 366 | 236 |
| Total accrued liabilities | $4007 | $3605 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

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**NOTE *9* — DEBT AND CREDIT AGREEMENTS**

The Company's outstanding debt balances as of *June 30, 2025* and *December 31, 2024* consisted of the following:

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| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Line of credit | $17634 | $— |
| Other notes payable | 1434 | 1618 |
| Long-term debt | 7037 | 7578 |
| Total debt | 26105 | 9196 |
| Less: current maturities | (19099) | (1454) |
| Long-term debt, net of current maturities | $7006 | $7742 |

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**Credit Facility**

On *August 4, 2022,* the Company entered into a credit agreement (the *"2022* Credit Agreement") with Wells Fargo Bank, National Association, as lender ("Wells Fargo"), which replaced its prior credit facility and provided the Company and its subsidiaries with a $35,000 senior secured revolving credit facility (which *may* be further increased by up to an additional $10,000 upon the request of the Company and at the sole discretion of Wells Fargo) and a $7,578 senior secured term loan (collectively, the *"2022* Credit Facility"). The proceeds of the *2022* Credit Facility are available for general corporate purposes, including strategic growth opportunities. Net deferred financing costs related to the *2022* Credit Facility which primarily relate to the revolving credit loan, were $217 at *June 30, 2025,* which is net of accumulated amortization of $303. Net deferred financing costs at *December 31, 2024* were $269, which is net of accumulated amortization of $251. These costs are included in the "Other assets" line item of the Company's condensed consolidated financial statements at *June 30, 2025* and *December 31, 2024.* 

On *February 8, 2023,* the Company executed Amendment *No. 1* to Credit Agreement and Limited Waiver which waived the Company's *fourth* quarter minimum EBITDA (as defined in the *2022* Credit Agreement) requirement for the period ended *December 31, 2023,* amended the Fixed Charge Coverage Ratio (as defined in the *2022* Credit Agreement) requirements for the *twelve*-month period ending *January 31, 2024* through and including *June 30, 2024* and each *twelve*-month period thereafter, and amended the minimum EBITDA requirements applicable to the *twelve*-month periods ending *March 31, 2023, June 30, 2023, September 30, 2023,* and *December 31, 2023.* 

On *December 19, 2024,* the Company executed Amendment *No. 2* to Credit Agreement, which (*1*) increased the outstanding principal amount of the term loan to $7,578 and restarted the 84-month amortization period, and (*2*) amended the Fixed Charge Coverage Ratio (as defined in the *2022* Credit Agreement) from 1.1:1.0 to 1.0:1.0 for each *twelve*-month period ending *January 31, 2024* through and including *December 31, 2025.* Proceeds from the increased amount of the term loan were used to repay the Company's indebtedness under its existing revolving line of credit with Wells Fargo and related fees and expenses, thereby allowing for increased availability under the existing revolving line of credit.

The *2022* Credit Agreement, as amended, contains customary covenants limiting the Company's and its subsidiaries' ability to, among other things, incur liens, make investments, incur indebtedness, merge or consolidate with others or dispose of assets, change the nature of its business, and enter into transactions with affiliates. The initial term of the revolving credit facility matures *August 4, 2027.* The term loan also matures on *August 4, 2027,* with monthly payments based on an 84-month amortization.

As of *June 30, 2025*, there was $24,671 of outstanding indebtedness under the *2022* Credit Facility, with the ability to borrow an additional $13,831. As of *June 30, 2025,* the Company was in compliance with all financial covenants under the *2022* Credit Facility. As of *June 30, 2025,* the effective interest rate of the senior secured revolving credit facility was 6.65% and the senior secured term loan was 6.90%. As of *December 31, 2024,* the effective interest rate of the senior secured revolving credit facility was 6.71% and the effective rate of the senior secured term loan was 6.96%.

The Company intends to use a portion of the proceeds from the sale of its operations in Manitowoc, Wisconsin, described in Note *4* "Assets Held for Sale", to repay approximately $1,600 on the outstanding senior secured term loan.

**Other**

In addition, the Company had outstanding notes payable for capital expenditures in the amount of $1,434 and $1,618 as of *June 30, 2025* and *December 31, 2024*, respectively, with $383 and $371 included in the "Line of credit and current maturities of long-term debt" line item of the Company's condensed consolidated financial statements as of *June 30, 2025* and *December 31, 2024*, respectively. The notes payable have monthly payments that range from $1 to $20 and an interest rate of approximately 7%. The equipment purchased is utilized as collateral for the notes payable. The outstanding notes payable have maturity dates that range from *September 2028* to *June 2029.*

**NOTE *10* — LEASES**

The Company leases certain facilities and equipment. The leases are accounted for under Accounting Standard Update *2016*-*02,* Leases ("Topic *842"*), and the Company elected to apply each available practical expedient. The discount rates used for the leases are based on an interest rate yield curve developed for the leases in the Company's lease portfolio.

The Company has elected to apply the short-term lease exception to all leases of *one* year or less. During the *six* months ended *June 30, 2025* and *2024,* the Company had additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations in the amount of $0 and $29, respectively. During the *six* months ended *June 30, 2025* and *2024,* the Company had additional finance leases associated with property, plant, and equipment of $0 and $880, respectively.

Some of the Company's facility leases include options to renew. The exercise of the renewal options is typically at the Company's discretion. The Company regularly evaluates the renewal options and includes them in the lease term when the Company is reasonably certain to exercise them.

As part of the Manitowoc Purchase Agreement described in Note *4* "Assets Held for Sale", the Company entered into a lease termination agreement with the landlord of the Manitowoc facility and paid a termination fee of $98. In conjunction with the lease termination, the Company reduced the operating lease right-of-use assets and related operating lease obligations to zero. Additionally, the Company recognized a gain in the amount of $238, which represents the difference between the operating lease right-of-use assets of $3,903 and the operating lease obligations of $4,141. The gain, related termination fee, and related closing costs incurred through *June 30, 2025* are included in the "Selling, general, and administrative" line item of the Company's condensed consolidated statements of operations as of *June 30, 2025.*

As part of the Manitowoc Purchase Agreement, the Buyer entered into a new lease agreement with the landlord for the Manitowoc facility and the Company entered into a sublease with the Buyer. The term of the sublease commenced on *June 4, 2025,* and expires on the earlier of (i) midnight on *August 31, 2025, (*ii) the date that the Company vacates the facility, or (iii) the termination of the Manitowoc Purchase Agreement. As the term of the sublease is less than *one* year, the Company has elected to *not* record the related operating lease right-of-use assets and operating lease liabilities on the Company's condensed consolidated balance sheets as of *June 30, 2025* and has elected to expense such costs.

In the event that the Buyer's lease is terminated prior to the closing of the sale, the Company's leases will be automatically reinstated as of the termination date and the sublease will be terminated as of the termination date. The Company believes that there is low likelihood for the Buyer's lease to be terminated prior to the closing of the sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

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Quantitative information regarding the Company's leases is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Components of lease cost |  |  |  |  |
| Finance lease cost components: |  |  |  |  |
| Amortization of finance lease assets | $294 | $370 | $621 | $728 |
| Interest on finance lease liabilities | 105 | 121 | 218 | 228 |
| Total finance lease costs | 399 | 491 | 839 | 956 |
| Operating lease cost components: |  |  |  |  |
| Operating lease cost | 660 | 703 | 1401 | 1345 |
| Short-term lease cost | 183 | 54 | 371 | 100 |
| Variable lease cost (1) | 95 | 384 | 372 | 753 |
| Sublease income | (98) | (49) | (219) | (99) |
| Total operating lease costs | 840 | 1092 | 1925 | 2099 |
| Total lease cost | $1239 | $1583 | $2764 | $3055 |
| Supplemental cash flow information related to our operating leases is as follows for the six months ended June 30, 2025 and 2024: |  |  |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
| Operating cash outflow from operating leases |  |  | $1733 | $1679 |
| Weighted-average remaining lease term-finance leases at end of period (in years) |  |  | 2.7 | 2.8 |
| Weighted-average remaining lease term-operating leases at end of period (in years) |  |  | 6.1 | 6.6 |
| Weighted-average discount rate-finance leases at end of period |  |  | 6.0% | 5.4% |
| Weighted-average discount rate-operating leases at end of period |  |  | 9.1% | 8.9% |

---

(*1*) Variable lease costs consist primarily of taxes, insurance, utilities, and common area or other maintenance costs for the Company's leased facilities and equipment.

As of *June 30, 2025*, future minimum lease payments under finance leases and operating leases were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | ***Finance*** | ***Operating*** |  |
|  | ***Leases*** | ***Leases*** | ***Total*** |
| 2025 | $1686 | $1308 | $2994 |
| 2026 | 1508 | 2618 | 4126 |
| 2027 | 1212 | 2321 | 3533 |
| 2028 | 952 | 2323 | 3275 |
| 2029 | 526 | 2350 | 2876 |
| 2030 and thereafter |  | 4618 | 4618 |
| Total lease payments | 5884 | 15538 | 21422 |
| Less—portion representing interest | (566) | (3782) | (4348) |
| Present value of lease obligations | 5318 | 11756 | 17074 |
| Less—current portion of lease obligations | (2229) | (1606) | (3835) |
| Long-term portion of lease obligations | $3089 | $10150 | $13239 |

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**NOTE *11* — FAIR VALUE MEASUREMENTS**

**Fair Value of Financial Instruments**

The carrying amounts of the Company's financial instruments, which include cash, accounts receivable, accounts payable and customer deposits, approximate their respective fair values due to the relatively short-term nature of these instruments. Based upon interest rates currently available to the Company for debt with similar terms, the carrying value of the Company's long-term debt is approximately equal to its fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

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The Company is required to provide disclosure and categorize assets and liabilities measured at fair value into *one* of *three* different levels depending on the assumptions (i.e., inputs) used in the valuation. Level *1* provides the most reliable measure of fair value while Level *3* generally requires significant management judgment. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. Financial instruments are assessed quarterly to determine the appropriate classification within the fair value hierarchy. Transfers between fair value classifications are made based upon the nature and type of the observable inputs. The fair value hierarchy is defined as follows:

Level *1* — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

Level *2* — Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are *not* active for which significant inputs are observable, either directly or indirectly.

Level *3* — Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management's best estimate of what market participants would use in valuing the asset or liability at the measurement date.

**NOTE *12* — INCOME TAXES**

Effective tax rates differ from federal statutory income tax rates primarily due to changes in the Company's valuation allowance, permanent differences and provisions for state and local income taxes. As of *June 30, 2025*, the Company has a full valuation allowance recorded against deferred tax assets. During the *six* months ended *June 30, 2025*, the Company recorded a provision for income taxes of $69, compared to a provision for income taxes of $92 during the *six* months ended *June 30, 2024*. On *August 16, 2022,* Congress enacted the IRA which includes advanced manufacturing tax credits for manufacturers of eligible components, including wind components produced and sold in the U.S. beginning in *2023* through *2032.* The OBBBA, enacted on *July 4, 2025,* eliminates the credit for components produced and sold after *2027.* These credits will have *no* impact on income tax expense.

The Company files income tax returns in U.S. federal and state jurisdictions. As of *June 30, 2025*, open tax years in federal and some state jurisdictions date back to *1996* due to the taxing authorities' ability to adjust operating loss carryforwards. As of *December 31, 2024*, the Company had federal and unapportioned state net operating loss ("NOL") carryforwards of $295,198 of which $227,781 will generally begin to expire in *2026.* The majority of the NOL carryforwards will expire in various years from *2028* through *2037.* NOLs generated after *January 1, 2018* will *not* expire.

Since the Company has *no* unrecognized tax benefits, they will *not* have an impact on the condensed consolidated financial statements as a result of the expiration of the applicable statues of limitations within the next *twelve* months. In addition, Section *382* of the Internal Revenue Code of *1986,* as amended (the "IRC"), generally imposes an annual limitation on the amount of NOL carryforwards and associated built-in losses that *may* be used to offset taxable income when a corporation has undergone certain changes in stock ownership. The Company's ability to utilize NOL carryforwards and built-in losses *may* be limited, under Section *382* of the IRC or otherwise, by the Company's issuance of common stock or by other changes in stock ownership. Upon completion of the Company's analysis of Section *382* of the IRC in *2010,* the Company determined that aggregate changes in stock ownership triggered an annual limitation on NOL carryforwards and built-in losses available for utilization, thereby currently limiting annual NOL usage to $14,284 per year. Further limitations *may* occur, depending on additional future changes in stock ownership. To the extent the Company's use of NOL carryforwards and associated built-in losses is significantly limited in the future, the Company's income could be subject to U.S. corporate income tax earlier than it would be if the Company were able to use NOL carryforwards and built-in losses without such limitation, which could result in lower profits and the loss of benefits from these attributes.

In *February 2013,* the Company adopted a Stockholder Rights Plan, which was approved by the Company's stockholders and extended in *2016, 2019, 2022,* and *2025* for additional *three*-year periods (as amended, the "Rights Plan"), designed to preserve the Company's substantial tax assets associated with NOL carryforwards under Section *382* of the IRC.

The Rights Plan is intended to act as a deterrent to any person or group, together with its affiliates and associates, becoming the beneficial owner of 4.9% or more of the Company's common stock and thereby triggering a further limitation of the Company's available NOL carryforwards. In connection with the adoption of the Rights Plan, the Board declared a non-taxable dividend of one preferred share purchase right (a "Right") for each outstanding share of the Company's common stock to the Company's stockholders of record as of the close of business on *February 22, 2013.* Each Right entitles its holder to purchase from the Company one one-thousandth of a share of the Company's Series A Junior Participating Preferred Stock at an exercise price of $7.70 per Right, subject to adjustment. As a result of the Rights Plan, any person or group that acquires beneficial ownership of 4.9% or more of the Company's common stock without the approval of the Board would be subject to significant dilution in the ownership interest of that person or group. Stockholders who owned 4.9% or more of the outstanding shares of the Company's common stock as of *February 12, 2013* will *not* trigger the preferred share purchase rights unless they acquire additional shares after that date.

As of *June 30, 2025*, the Company had no unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense. The Company had no accrued interest and penalties as of *June 30, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

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**NOTE *13* — SHARE-BASED COMPENSATION**

There was *no* stock option activity during the *six* months ended *June 30, 2025* and *June 30, 2024* and no stock options were outstanding as of *June 30, 2025* or *June 30, 2024.*

The following table summarizes the Company's restricted stock unit and performance award activity during the *six* months ended *June 30, 2025*:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted Average*** |
|  | ***Number of*** | ***Grant-Date Fair Value*** |
|  | ***Shares*** | ***Per Share*** |
| Unvested as of December 31, 2024 | 823808 | $2.96 |
| Granted | 621206 | $1.89 |
| Vested | (547066) | $2.67 |
| Unvested as of June 30, 2025 | 897948 | $2.47 |

---

Under certain situations, shares are withheld from issuance to cover taxes for the vesting of restricted stock units and performance awards. For the *six* months ended *June 30, 2025* and *2024,* 169,390 and 46,668 shares, respectively, were withheld to cover tax obligations.

The following table summarizes share-based compensation expense included in the Company's condensed consolidated statements of operations for the *six* months ended *June 30, 2025* and *2024*, as follows:

---

| | | |
|:---|:---|:---|
|  | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** |
| **Share-based compensation expense:** |  |  |
| Cost of sales | $45 | $64 |
| Selling, general and administrative | 501 | 512 |
| Net effect of share-based compensation expense on net income | $546 | $576 |
| **Reduction in earnings per share:** |  |  |
| Basic earnings per share | $0.02 | $0.03 |
| Diluted earnings per share | $0.02 | $0.03 |

---

**NOTE *14* — LEGAL PROCEEDINGS AND OTHER MATTERS**

***Legal Proceedings***

The Company is party to a variety of legal proceedings that arise in the normal course of its business. On an ongoing basis, the Company is often the subject of, or party to, various legal claims by other parties against the Company, by the Company against other parties, or involving the Company, which arise in the normal course of its business. While the results of these legal proceedings or claims cannot be predicted with certainty, management believes that the final outcome of these proceedings or claims will *not* have a material adverse effect, individually or in the aggregate, on the Company's results of operations, financial condition or cash flows. Due to the inherent uncertainty of litigation, there can be *no* assurance that the resolution of any particular claim or proceeding would *not* have a material adverse effect on the Company's results of operations, financial condition or cash flows. It is possible that if *one* or more of such matters were decided against the Company, the effects could be materially adverse to the Company, including to its results of operations in the period in which the Company would be required to record or adjust the related liability and to the Company's financial condition and cash flows in the periods the Company would be required to pay such liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

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**NOTE *15* — RECENT ACCOUNTING PRONOUNCEMENTS**

The Company reviews new accounting standards as issued. Although some of the accounting standards issued or effective in the current fiscal year *may* be applicable to it, the Company believes that *none* of the new standards have a significant impact on its condensed consolidated financial statements.

In *November 2023,* the Financial Accounting Standards Board issued Accounting Standards Update *No. 2023*-*07,* "Segment Reporting (Topic *280*): Improvements to Reportable Segment Disclosures", which requires additional disclosure of significant segment expenses on an annual and interim basis. This guidance will be applied retrospectively and will be effective for the annual periods beginning the year ended *December 31, 2024,* and for interim periods beginning *January 1, 2025.* The Company adopted this guidance for the year ended *December 31, 2024.* Refer to Note *16* "Segment Reporting" of these condensed consolidated financial statements for the additional disclosures applied on a retrospective basis.

In *December 2023,* the Financial Accounting Standards Board issued Accounting Standards Update *No. 2023*-*09,* "Income Taxes (Topic *740*): Improvements to Income Tax Disclosures," which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for the annual periods beginning the year ended *December 31, 2025.* The Company does *not* expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements.

In *November 2024,* the Financial Accounting Standards Board issued Accounting Standards Update *No. 2024*-*03,"Income* Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Incomes Statement Expenses," which serves to improve the disclosures about a public business entity's expenses by requiring more detailed information about the types of expenses in commonly presented expense captions. This guidance will be effective for annual periods beginning after *December 15, 2026.* The Company is currently evaluating the impact that the updated guidance will have on its consolidated financial statements.

**NOTE *16—* SEGMENT REPORTING**

The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company's chief operating decision maker ("CODM"). The Company's CODM has been identified as the Chief Executive Officer and President, who reviews operating income by segment in relation to total operating income to make decisions about allocating resources and assessing performance.

The Company's segments and their product and service offerings are summarized below:

***Heavy Fabrications***

The Company provides large, complex and precision fabrications to customers in a broad range of industrial markets. The Company's most significant presence is within the U.S. wind energy industry, although it has diversified into other industrial markets in order to improve capacity utilization, reduce customer concentrations, and reduce exposure to uncertainty related to governmental policies currently impacting the U.S. wind energy industry. Within the U.S. wind energy industry, the Company provides steel towers and repowering adapters primarily to wind turbine manufacturers. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of up to approximately 550 towers (1,650 tower sections), sufficient to support turbines generating more than 1.7 GW of power. The Company has expanded its production capabilities and leveraged manufacturing competencies, including welding, lifting capacity and stringent quality practices, into aftermarket and original equipment manufacturer ("OEM") components utilized in surface and underground mining, construction, material handling, oil and gas ("O&G") and other infrastructure markets. The Company has designed and manufactures a mobile, modular pressure reducing system for the compressed natural gas virtual pipeline market. The Company manufactures components for buckets, shovels, car bodies, drill masts and other products that support mining and construction markets. In other industrial markets, the Company provides crane components, pressure vessels, frames and other structures.

***Gearing***

The Company provides gearing, gearboxes and precision machined components to a broad set of customers in diverse markets including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, defense, and other industrial markets. The Company has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and OEM applications for a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in addition to gearbox repair in Cicero, Illinois, and heat treatment and gearbox repair in Neville Island, Pennsylvania.

***Industrial Solutions***

The Company provides supply chain solutions, light fabrication, inventory management and kitting and assembly services, primarily serving the combined cycle natural gas turbine market. The Company has recently expanded into the U.S. wind power generation market, by providing tower internals kitting solutions for on-site installations, as OEMs domesticate their supply chain due to lead time and reliability issues. The Company leverages a global supply chain to provide instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, and electromechanical devices. The Company also provides packaging solutions and fabricates panels and sub-assemblies to reduce customers' costs and improve manufacturing velocity and reliability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

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***Corporate***

"Corporate" includes the assets and selling, general and administrative expenses of the Company's corporate office. "Eliminations" comprises adjustments to reconcile segment results to consolidated results.

The accounting policies of the reportable segments are the same as those referenced in Note *1,* "Basis of Presentation" of these condensed consolidated financial statements. Summary financial information by reportable segment for the *three* and *six* months ended *June 30, 2025* and *2024* is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Heavy Fabrications*** | ***Gearing*** | ***Industrial Solutions*** | ***Corporate*** | ***Eliminations*** | ***Consolidated*** |
| **For the Three Months Ended June 30, 2025** |  |  |  |  |  |  |
| Revenues from external customers | $24989 | $7284 | $6962 | $— | $— | $39235 |
| Intersegment revenues |  |  | 401 |  | (401) | *—* |
| Net revenues | 24989 | 7284 | 7363 |  | (401) | 39235 |
| Direct materials | 13735 | 1826 | 4446 |  | *\** | 20007 |
| Direct labor | 4700 | 1432 | *\** |  |  | 6132 |
| Indirect labor | 3103 | 1133 | 588 |  |  | 4824 |
| Variable overhead | *\** | 975 | 659 |  |  | 1634 |
| AMP credits | (2904) |  |  |  |  | (2904) |
| Salaries and benefits | *\** | *\** | *\** | 654 |  | 654 |
| Share-based compensation | *\** | *\** | *\** | 243 |  | 243 |
| Depreciation and amortization | 964 | 550 | 113 | 16 |  | 1643 |
| All other expenses (1) | 3680 | 2187 | 1071 | 630 | (401) | 7167 |
| Operating income (loss) | 1711 | (819) | 486 | (1543) |  | (165) |
| Capital expenditures | 895 | 116 | 94 | 95 |  | 1200 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Heavy Fabrications*** | ***Gearing*** | ***Industrial Solutions*** | ***Corporate*** | ***Eliminations*** | ***Consolidated*** |
| **For the Three Months Ended June 30, 2024** |  |  |  |  |  |  |
| Revenues from external customers | $19611 | $10454 | $6387 | $— | $— | $36452 |
| Intersegment revenues |  |  | 76 |  | (76) | *—* |
| Net revenues | 19611 | 10454 | 6463 |  | (76) | 36452 |
| Direct materials | 10498 | 2658 | 3692 |  | *\** | 16848 |
| Direct labor | 2635 | 1604 | *\** |  |  | 4239 |
| Indirect labor | 2752 | 1298 | 385 |  |  | 4435 |
| Variable overhead | *\** | 1284 | 543 |  |  | 1827 |
| AMP credits | (1678) |  |  |  |  | (1678) |
| Salaries and benefits | *\** | *\** | *\** | 401 |  | 401 |
| Share-based compensation | *\** | *\** | *\** | 237 |  | 237 |
| Depreciation and amortization | 1022 | 553 | 105 | 38 |  | 1718 |
| All other expenses (1) | 2825 | 2575 | 1115 | 729 | (76) | 7168 |
| Operating income (loss) | 1557 | 482 | 623 | (1405) |  | 1257 |
| Capital expenditures | 370 | 280 | 123 | 17 |  | 790 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Heavy Fabrications*** | ***Gearing*** | ***Industrial Solutions*** | ***Corporate*** | ***Eliminations*** | ***Consolidated*** |
| **For the Six Months Ended June 30, 2025** |  |  |  |  |  |  |
| Revenues from external customers | $50236 | $13251 | $12586 | $— | $— | $76073 |
| Intersegment revenues |  |  | 424 |  | (424) | *—* |
| Net revenues | 50236 | 13251 | 13010 |  | (424) | 76073 |
| Direct materials | 28357 | 3266 | 7776 |  | *\** | 39399 |
| Direct labor | 8462 | 2693 | *\** |  |  | 11155 |
| Indirect labor | 5914 | 2262 | 1135 |  |  | 9311 |
| Variable overhead | *\** | 1849 | 1132 |  |  | 2981 |
| AMP credits | (5468) |  |  |  |  | (5468) |
| Salaries and benefits | *\** | *\** | *\** | 1052 |  | 1052 |
| Share-based compensation | *\** | *\** | *\** | 389 |  | 389 |
| Depreciation and amortization | 1985 | 1099 | 227 | 34 |  | 3345 |
| All other expenses (1) | 7034 | 3793 | 1924 | 1563 | (424) | 13890 |
| Operating income (loss) | 3952 | (1711) | 816 | (3038) |  | 19 |
| Capital expenditures | 1756 | 142 | 94 | 124 |  | 2116 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Heavy Fabrications*** | ***Gearing*** | ***Industrial Solutions*** | ***Corporate*** | ***Eliminations*** | ***Consolidated*** |
| **For the Six Months Ended June 30, 2024** |  |  |  |  |  |  |
| Revenues from external customers | $41628 | $18791 | $13649 | $— | $— | $74068 |
| Intersegment revenues |  |  | 807 |  | (807) | *—* |
| Net revenues | 41628 | 18791 | 14456 |  | (807) | 74068 |
| Direct materials | 23045 | 4488 | 8078 |  | *\** | 35611 |
| Direct labor | 5520 | 2985 | *\** |  |  | 8505 |
| Indirect labor | 5441 | 2605 | 767 |  |  | 8813 |
| Variable overhead | *\** | 2287 | 1000 |  |  | 3287 |
| AMP credits | (3395) |  |  |  |  | (3395) |
| Salaries and benefits | *\** | *\** | *\** | 980 |  | 980 |
| Share-based compensation | *\** | *\** | *\** | 409 |  | 409 |
| Depreciation and amortization | 1933 | 1093 | 205 | 83 |  | 3314 |
| All other expenses (1) | 5483 | 4825 | 2016 | 1692 | (807) | 13209 |
| Operating income (loss) | 3601 | 508 | 2390 | (3164) |  | 3335 |
| Capital expenditures | 831 | 1348 | 338 | 17 |  | 2534 |

---

\* Line item *not* deemed a significant expense for this segment (per analysis of Accounting Standards Update *No. 2023*-*07*).

<sup>(*1*)</sup> All other expenses for each reportable segment primarily consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Heavy Fabrications**-variable overhead, salaries and benefits, and rent and utilities

 **Gearing**-salaries and benefits and rent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Industrial Solutions**-direct labor, salaries and benefits, and rent and utilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Corporate**-professional expenses

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| | | |
|:---|:---|:---|
|  | ***Total Assets as of*** | ***Total Assets as of*** |
|  | ***June 30,*** | ***December 31,*** |
| **Segments:** | ***2025*** | ***2024*** |
| Heavy Fabrications | $51112 | $43035 |
| Gearing | 39649 | 41406 |
| Industrial Solutions | 16993 | 14864 |
| Corporate | 63363 | 48488 |
| Eliminations | (40606) | (19503) |
|  | $130511 | $128290 |

---

**NOTE *17* — COMMITMENTS AND CONTINGENCIES**

**Environmental Compliance and Remediation Liabilities**

The Company's operations and products are subject to a variety of environmental laws and regulations in the jurisdictions in which the Company operates and sells products governing, among other things, air emissions, wastewater discharges, the use, handling and disposal of hazardous materials, soil and groundwater contamination, employee health and safety, and product content, performance and packaging. Certain environmental laws *may* impose the entire cost or a portion of the cost of investigating and cleaning up a contaminated site, regardless of fault, upon any *one* or more of a number of parties, including the current or previous owners or operators of the site. These environmental laws also impose liability on any person who arranges for the disposal or treatment of hazardous substances at a contaminated site. Third parties *may* also make claims against owners or operators of sites and users of disposal sites for personal injuries and property damage associated with releases of hazardous substances from those sites.

**Allowance for Credit Losses**

Beginning *January 1, 2023,* the Company assessed and recorded an allowance for credit losses using the current expected credit loss model. The adjustment for credit losses to management's current estimate is recorded in net income as credit loss expense. All credit losses were on trade receivables and/or contract assets arising from the Company's contracts with customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

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The Company monitors its collections and write-off experience to assess whether or *not* adjustments to its allowance estimates are necessary. Changes in trends in any of the factors that the Company believes *may* impact the collectability of its accounts receivable, or modifications to its credit standards, collection practices and other related policies *may* impact the Company's allowance for credit losses and its financial results. The activity in the accounts receivable allowance liability for the *six* months ended *June 30, 2025* and *2024* consisted of the following:

---

| | | |
|:---|:---|:---|
|  | ***For the Six Months Ended June 30,*** | ***For the Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** |
| Balance at beginning of period | $94 | $99 |
| Write-offs | (16) |  |
| Other adjustments |  | (2) |
| Balance at end of period | $78 | $97 |

---

**Collateral**

In select instances, the Company has pledged specific inventory and machinery and equipment assets to serve as collateral on related payable or financing obligations.

**Liquidated Damages**

In certain customer contracts, the Company has agreed to pay liquidated damages in the event of qualifying delivery or production delays. These damages are typically limited to a specific percentage of the value of the product in question and/or are dependent on actual losses sustained by the customer. The Company does *not* believe that this potential exposure will have a material adverse effect on the Company's consolidated financial position or results of operations. There was *no* reserve for liquidated damages at *June 30, 2025* and *December 31, 2024.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *16*

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes thereto in Item 1, "Financial Statements," of this Quarterly Report and the audited consolidated financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2024. The discussion below contains forward-looking statements that are based upon our current expectations and are subject to uncertainty and changes in circumstances including, but not limited to, those identified in "Cautionary Note Regarding Forward-Looking Statements" at the end of Item 2. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties. As used in this Quarterly Report on Form 10-Q, the terms "we," "us," "our," and the "Company" refer to Broadwind, Inc., a Delaware corporation headquartered in Cicero, Illinois, and its subsidiaries, as appropriate.* 

***(Dollars are presented in thousands except share, per share and per employee data or unless otherwise stated)***

**KEY METRICS USED BY MANAGEMENT TO MEASURE PERFORMANCE**

In addition to measures of financial performance presented in our consolidated financial statements in accordance with GAAP, we use certain other financial measures to analyze our performance. These non-GAAP financial measures primarily consist of adjusted EBITDA (as defined below) and free cash flow which help us evaluate growth trends, establish budgets, assess operational efficiencies, oversee our overall liquidity, and evaluate our overall financial performance.

**<u>Key Financial Measures</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $39235 | $36452 | $76073 | $74068 |
| Net (loss) income | $(989) | $482 | $(1359) | $1992 |
| Adjusted EBITDA (1) | $2085 | $3642 | $4453 | $7811 |
| Capital expenditures | $1200 | $790 | $2116 | $2534 |
| Free cash flow (2) | $(12777) | $(6955) | $(20877) | $(9408) |
| Operating working capital (3) | $42502 | $34252 | $42502 | $34252 |
| Total debt | $26105 | $17957 | $26105 | $17957 |
| Total orders (4) | $20956 | $18372 | $49090 | $47368 |
| Backlog at end of period (4) | $95279 | $139060 | $95279 | $139060 |
| Book-to-bill (5) | 0.5 | 0.5 | 0.6 | 0.6 |

---

(1) We provide non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share based compensation and other stock payments, restructuring costs, impairment charges, proxy contest-related expenses, and other non-cash gains and losses) as supplemental information regarding our business performance. Our management uses adjusted EBITDA when it internally evaluates the performance of our business, reviews financial trends and makes operating and strategic decisions. We believe that this non-GAAP financial measure is useful to investors because it provides a better understanding of our past financial performance and future results, and it allows investors to evaluate our performance using the same methodology and information as used by our management. Our definition of adjusted EBITDA may be different from similar non-GAAP financial measures used by other companies and/or analysts.

(2) We define free cash flow as adjusted EBITDA plus or minus changes in operating working capital less capital expenditures net of any proceeds from disposals of property and equipment. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our business for purposes such as repaying maturing debt and funding future investments.

(3) We define operating working capital as accounts receivable and inventory net of accounts payable and customer deposits.

(4) Our backlog at June 30, 2025 and 2024 is net of revenue recognized over time. Backlog has been adjusted to reflect updated assumptions related to raw material pricing (which is a customer passthrough) and other variables. Additionally, orders and backlog at June 30, 2025 have been adjusted for orders totaling $2,320 received in prior periods that we do not plan to recognize as revenue as a result of the transaction described in the Manitowoc Purchase Agreement (defined below). 

(5) We define the book-to-bill as the ratio of new orders we received, net of cancellations, to revenue during a period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17

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The following table reconciles our non-GAAP key financial measures to the most directly comparable GAAP measure:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net (loss) income | $(989) | $482 | $(1359) | $1992 |
| Interest expense | 783 | 726 | 1299 | 1258 |
| Income tax provision | 33 | 53 | 69 | 92 |
| Depreciation and amortization | 1643 | 1718 | 3345 | 3314 |
| Share-based compensation and other stock payments | 615 | 663 | 1099 | 1165 |
| Proxy contest-related expenses |  |  |  | (10) |
| **Adjusted EBITDA** | **2085** | **3642** | **4453** | **7811** |
| Changes in operating working capital | (13663) | (9966) | (23215) | (14844) |
| Capital expenditures | (1200) | (790) | (2116) | (2534) |
| Proceeds from disposal of property and equipment | 1 | 159 | 1 | 159 |
| **Free Cash Flow** | $**(12777)** | $**(6955)** | $**(20877**) | $**(9408)** |

---

**OUR BUSINESS**

The One Big Beautiful Bill Act (the "OBBBA"), which was signed into law on July 4, 2025, eliminates AMP credits for components produced and sold after December 31, 2027. The OBBBA shortened the time period in which we could benefit from the AMP credits, which could have a material adverse effect on our business in the near term. Under the OBBBA, wind projects that begin construction after July 4, 2026, must be placed in service by December 31, 2027, to qualify for the production tax credit ("PTC") or the investment tax credit ("ITC"). Any wind project that begins construction after July 4, 2026, and is not placed in service by December 31, 2027, will not qualify for the PTC or the ITC. The PTC and ITC drive demand for new wind projects by providing financial incentives to developers. We expect the changes to the PTC and the ITC could lead to a decrease in the number of new wind projects, which would cause a corresponding decrease in demand for our wind products. Lower demand for our wind products, coupled with the expedited phase out of the AMP credits, would adversely impact the profitability of our Heavy Fabrications segment.

***Second Quarter Overview***

We received $20,956 in new orders in the second quarter, up from $18,372 in the second quarter of 2024. Industrial Solutions orders increased by over 200% compared to the prior year quarter primarily due to an increase in demand associated with new gas turbine and aftermarket gas turbine projects. Additionally, Gearing segment orders increased 45% versus the prior year period primarily due to improved demand from most markets served. Partially offsetting this was a significant decrease in orders within our Heavy Fabrications segment as orders were muted as we wind down operations in our Manitowoc facility in conjunction with the pending sale of the Manitowoc facility (described below).

We recognized revenue of $39,235 in the second quarter, which was an 8% increase compared to the second quarter of 2024.Within the Heavy Fabrications segment, wind revenue increased 52% as we restarted tower production with a limited run at our Manitowoc facility and recognized increased wind repowering revenue. This was partially offset by a decrease in industrial fabrication product line revenue as we experienced reduced shipments to mining customers. Industrial Solutions segment revenue increased by 14% from the prior year period primarily due to increased shipments to new gas turbine customers. Gearing segment revenue decreased 30% relative to the comparable prior year period primarily due to reduced shipments to oil and gas ("O&G") customers.

We recorded a net loss of $989 or ($0.04) per share in the second quarter of 2025, compared to net income of $482 or $0.02 per share in the second quarter of 2024. Despite an increase in revenue, net income decreased due primarily to manufacturing inefficiencies experienced within the Heavy Fabrications segment and increased fixed costs to support higher production levels.

On June 4, 2025, we entered into a definitive agreement (the "Manitowoc Purchase Agreement") with Wisconsin Heavy Fabrication, LLC to sell certain assets used in our industrial fabrication operations in Manitowoc, Wisconsin including specified contracts, equipment, machinery and other personal property, and permits for an aggregate purchase price of up to $13,800 in cash, subject to certain purchase price adjustments. The transaction is expected to close during the third quarter of 2025, subject to the satisfaction of customary closing conditions. As such, within the Heavy Fabrications segment we have only reported orders and backlog which we believe will be recorded as revenue.

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**RESULTS OF OPERATIONS**

**Three months ended June 30, 2025, Compared to Three months ended June 30, 2024**

The condensed consolidated statement of operations table below should be read in connection with a review of the following discussion of our results of operations for the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **2025 vs. 2024** | **2025 vs. 2024** |
|  |  | **% of Total** |  | **% of Total** |  |  |
|  | **2025** | **Revenue** | **2024** | **Revenue** | **$ Change** | **% Change** |
| Revenues | $39235 | 100.0% | $36452 | 100.0% | $2783 | 7.6% |
| Cost of sales | 35260 | 89.9% | 30886 | 84.7% | 4374 | 14.2% |
| Gross profit | 3975 | 10.1% | 5566 | 15.3% | (1591) | (28.6)% |
| Operating expenses |  |  |  |  |  |  |
| Selling, general and administrative expenses | 3974 | 10.1% | 4143 | 11.4% | (169) | (4.1)% |
| Intangible amortization | 166 | 0.4% | 166 | 0.5% |  | 0.0% |
| Total operating expenses | 4140 | 10.6% | 4309 | 11.8% | (169) | (3.9)% |
| Operating (loss) income | (165) | (0.4)% | 1257 | 3.4% | (1422) | (113.1)% |
| Other (expense) income, net |  |  |  |  |  |  |
| Interest expense, net | (783) | (2.0)% | (726) | (2.0)% | (57) | (7.9)% |
| Other, net | (8) | (0.0)% | 4 | 0.0% | (12) | (300.0)% |
| Total other expense, net | (791) | (2.0)% | (722) | (2.0)% | (69) | (9.6)% |
| Net (loss) income before provision for income taxes | (956) | (2.4)% | 535 | 1.5% | (1491) | (278.7)% |
| Provision for income taxes | 33 | 0.1% | 53 | 0.1% | (20) | (37.7)% |
| Net (loss) income | $(989) | (2.5)% | $482 | 1.3% | $(1471) | (305.2)% |

---

***Consolidated***

Revenues increased by $2,783 as compared to the prior year period primarily due to a 27% increase in revenue within our Heavy Fabrications segment. Wind revenue increased 52% from the prior year period as we restarted tower production with a limited run at our Manitowoc facility and recognized increased wind repowering revenue. This was partially offset by a decrease in industrial fabrication product line revenues as we experienced reduced shipments to mining customers. Industrial Solutions segment revenue increased 14% from the prior year period primarily due to higher shipments to new gas turbine customers. Gearing segment revenue decreased 30% relative to the comparable prior year period, reflective of reduced shipments to O&G customers.

Despite the increase in revenue described above, gross profit decreased versus the prior year due primarily to manufacturing inefficiencies experienced within Heavy Fabrications and increased fixed costs to support higher volumes. Operating expenses decreased from the prior year period primarily due to lower professional expenses and incentive compensation, partially offset by higher medical costs in the current year quarter.

We recorded a net loss of $989 during the three months ended June 30, 2025, compared to net income of $482 during the three months ended June 30, 2024. This decrease in net income was primarily due to the factors described above.

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**Heavy Fabrications Segment**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Orders | $248 | $9138 |
| Revenues | 24989 | 19611 |
| Operating income | 1711 | 1557 |
| Operating margin | 6.8% | 7.9% |

---

Within our Heavy Fabrications segment, orders decreased 97% from the prior year period as orders were muted as we wind down certain operations due to the pending sale of the Manitowoc facility. Segment revenues increased by 27% compared to the prior year period as we restarted tower production with a limited run at our Manitowoc facility and recognized increased wind repowering revenue. This was partially offset by a 20% decrease in industrial fabrication product line revenue as we experienced reduced shipments to mining customers.

Heavy Fabrications segment operating income increased by $154 as compared to the prior year period. The increase in operating income was primarily a result of higher segment revenue and the corresponding increase in Advanced Manufacturing Production tax credits ("AMP credits") recognized. This was partially offset by manufacturing inefficiencies associated with the production of a new, larger size wind tower model and restarting tower production on a limited run within our Manitowoc facility.

**Gearing Segment**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Orders | $6799 | $4704 |
| Revenues | 7284 | 10454 |
| Operating (loss) income | (819) | 482 |
| Operating margin | (11.2)% | 4.6% |

---

Gearing segment orders increased 45% from the prior year period primarily due to higher demand from customers from most markets served. Gearing revenue was down 30% relative to the prior year period reflective of reduced shipments to O&G customers.

The Gearing segment's operating income decreased by $1,301 from the prior year period. This decrease was primarily attributable to lower sales in the current year period.

**Industrial Solutions Segment**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Orders | $13909 | $4530 |
| Revenues | 7363 | 6463 |
| Operating income | 486 | 623 |
| Operating margin | 6.6% | 9.6% |

---

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Industrial Solutions segment orders increased from the prior year period primarily due to an increase in orders associated with new and aftermarket gas turbine projects. Segment revenues increased from the prior year period primarily due to higher shipments to new gas turbine customers. Operating income decreased versus the prior-year period primarily as a result of a less profitable mix of product sold and increased fixed costs to support higher volumes.

**Corporate and Other**

Corporate and Other expenses increased during the three months ended June 30, 2025 compared to the prior year period primarily due to higher insurance and medical expenses, partially offset by lower employee compensation.

**Six months ended June 30, 2025, Compared to Six months ended June 30, 2024**

The condensed consolidated statement of operations table below should be read in connection with a review of the following discussion of our results of operations for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **2025 vs. 2024** | **2025 vs. 2024** |
|  |  | **% of Total** |  | **% of Total** |  |  |
|  | **2025** | **Revenue** | **2024** | **Revenue** | **$ Change** | **% Change** |
| Revenues | $76073 | 100.0% | $74068 | 100.0% | $2005 | 2.7% |
| Cost of sales | 67772 | 89.1% | 61865 | 83.5% | 5907 | 9.5% |
| Gross profit | 8301 | 10.9% | 12203 | 16.5% | (3902) | (32.0)% |
| Operating expenses |  |  |  |  |  |  |
| Selling, general and administrative expenses | 7951 | 10.5% | 8537 | 11.5% | (586) | (6.9)% |
| Intangible amortization | 331 | 0.4% | 331 | 0.4% |  | —% |
| Total operating expenses | 8282 | 10.9% | 8868 | 12.0% | (586) | (6.6)% |
| Operating (loss) income | 19 | 0.0% | 3335 | 4.5% | (3316) | (99.4)% |
| Other expense, net |  |  |  |  |  |  |
| Interest expense, net | (1299) | (1.7)% | (1258) | (1.7)% | (41) | (3.3)% |
| Other, net | (10) | (0.0)% | 7 | 0.0% | (17) | (242.9)% |
| Total other expense, net | (1309) | (1.7)% | (1251) | (1.7)% | (58) | (4.6)% |
| Net (loss) income before provision for income taxes | (1290) | (1.7)% | 2084 | 2.8% | (3374) | (161.9)% |
| Provision for income taxes | 69 | 0.1% | 92 | 0.1% | (23) | (25.0)% |
| Net (loss) income | $(1359) | (1.8)% | $1992 | 2.7% | $(3351) | (168.2)% |

---

***Consolidated***

Revenues for the six months ending June 30, 2025, increased by $2,005 as compared to the prior year period primarily due to an increase in revenue within our Heavy Fabrications segment. Wind revenue increased 39% from the prior year period primarily due to restarting tower production with a limited run at our Manitowoc facility and increased wind repowering revenue. Partially offsetting this was a 17% decrease in industrial fabrication product line revenues due primarily to lower sales of our Pressure Reducing Systems ("PRS") units and reduced shipments to mining customers. Gearing segment revenue decreased 29% compared to the prior year period, reflective of reduced shipments to O&G customers. Industrial Solutions segment revenue decreased 10% from the prior year period primarily due to reduced shipments to aftermarket gas turbine customers, partially offset by higher shipments to new gas turbine customers.

Despite the increase in revenue described above, gross profit decreased versus the prior year period due primarily to manufacturing inefficiencies experienced within Heavy Fabrications and increased fixed costs to support higher volumes. Operating expenses decreased from the prior year period primarily due to lower incentive compensation and commission expenses in the current year period.

We recorded a net loss of $1,359 during the six months ended June 30, 2025, compared to net income of $1,992 during the six months ended June 30, 2024. This decrease in net income was primarily due to the factors described above.

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**Heavy Fabrications Segment**

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| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Orders | $10318 | $20359 |
| Revenues | 50236 | 41628 |
| Operating income | 3952 | 3601 |
| Operating margin | 7.9% | 8.7% |

---

Within our Heavy Fabrications segment, orders decreased 49% from the prior year period primarily due to a 75% decrease in industrial fabrication product line orders as we wind down certain operations in conjunction with the pending sale of the Manitowoc facility and lower demand for our PRS units. Partially offsetting this decrease was a 92% increase in wind orders primarily due to the timing of orders associated with wind repowering projects. Segment revenues increased by 21% compared to the prior year period primarily due to a 39% increase in wind revenue as we restarted tower production with a limited run at our Manitowoc facility and recognized increased wind repowering revenue. This was partially offset by a 17% decrease in industrial fabrication product line revenues due to reduced shipments to mining customers and fewer shipments of our PRS units.

Heavy Fabrications segment operating income increased by $351 as compared to the prior year period. The improved operating performance was primarily a result of higher segment revenue and the corresponding increase in AMP credits recognized, partially offset by manufacturing inefficiencies associated with the production of a new, larger size wind tower model and restarting tower production on a limited run within our Manitowoc facility.

**Gearing Segment**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Orders | $14759 | $15150 |
| Revenues | 13251 | 18791 |
| Operating (loss) income | (1711) | 508 |
| Operating margin | (12.9)% | 2.7% |

---

Gearing segment orders decreased 3% from the prior year period primarily due to the timing of orders from aftermarket wind customers. Gearing revenue was down 29% relative to the prior year period reflective of reduced shipments to O&G customers.

The Gearing segment's operating income decreased by $2,219 from the prior year period. This decrease was primarily attributable to lower sales, partially offset by a favorable $482 property tax adjustment in the current year period.

**Industrial Solutions Segment**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Orders | $24013 | $11859 |
| Revenues | 13010 | 14456 |
| Operating income | 816 | 2390 |
| Operating margin | 6.3% | 16.5% |

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Industrial Solutions segment orders increased from the prior year period primarily due to an increase in orders associated with new and aftermarket gas turbine projects. Segment revenues decreased from the prior year period primarily due to decreased shipments to aftermarket gas turbine customers, partially offset by increased shipments to new gas turbine customers. Operating income decreased versus the prior year period primarily as a result of lower sales and a less profitable mix of product sold.

**Corporate and Other**

Corporate and Other expenses decreased compared to the prior year period primarily due to lower employee compensation, partially offset by higher medical costs in the current year period.

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**LIQUIDITY, FINANCIAL POSITION AND CAPITAL RESOURCES**

On August 4, 2022, we entered into a credit agreement (the "2022 Credit Agreement") with Wells Fargo Bank, National Association, as lender ("Wells Fargo"), providing the Company and its subsidiaries with a $35,000 senior secured revolving credit facility (which may be further increased by up to an additional $10,000 upon the request of the Company and at the sole discretion of Wells Fargo) and a $7,578 senior secured term loan (collectively, the "2022 Credit Facility"). The proceeds of the 2022 Credit Facility are available for general corporate purposes, including strategic growth opportunities. As of June 30, 2025, cash totaled $1,037, a decrease of $6,684 from December 31, 2024. Debt and finance lease obligations at June 30, 2025 totaled $31,423. As of June 30, 2025, we had $24,671 outstanding under the 2022 Credit Facility and had the ability to borrow up to an additional $13,831.

In addition to the 2022 Credit Facility, we also utilize supply chain financing arrangements as a component of our funding for working capital, which accelerates receivable collections and helps to better manage cash flow. Under these agreements, we have agreed to sell certain of our accounts receivable balances to banking institutions who have agreed to advance amounts equal to the net accounts receivable balances due, less a discount as set forth in the respective agreements. The balances under these agreements are accounted for as sales of accounts receivable, as they are sold without recourse. Cash proceeds from these agreements are reflected as operating activities included in the change in accounts receivable in the consolidated statements of cash flows. Fees incurred in connection with the agreements are recorded as interest expense.

We also have outstanding notes payable for capital expenditures in the amount of $1,434 and $1,618 as of June 30, 2025 and December 31, 2024, respectively, with $383 and $371 included in the "Line of Credit and current maturities of long-term debt" line item of our condensed consolidated financial statements as of June 30, 2025 and December 31, 2024, respectively. The notes payable have monthly payments that range from $1 to $20 and an interest rate of approximately 7%. The equipment purchased is utilized as collateral for the notes payable. The outstanding notes payable have maturity dates that range from September 2028 to June 2029.

On September 22, 2023, we filed a shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (the "SEC") on October 12, 2023 (the "Form S-3"), replacing a prior shelf registration statement which expired on October 12, 2023. The Form S-3 will expire on October 12, 2026. This shelf registration statement, which includes a base prospectus, allows us to offer any combination of securities described in the prospectus in one or more offerings. Unless otherwise specified in the prospectus supplement accompanying the base prospectus, we would use the net proceeds from the sale of any securities offered pursuant to the shelf registration statement for general corporate purposes.

On September 12, 2022, we entered into a Sales Agreement (the "Sales Agreement") with Roth Capital Partners, LLC and HC Wainwright & Co., LLC (collectively, the "Agents"). Pursuant to the terms of the Sales Agreement, we may sell from time to time through the Agents shares of our common stock with an aggregate sales price of up to $12,000. We will pay a commission to the Agents of 2.75% of the gross proceeds of the sale of the shares sold under the Sales Agreement and reimburse the Agents for the expenses incident to the performance of their obligations under the Sales Agreement. No shares of the Company's common stock were issued under the Sales Agreement during the year ended December 31, 2024 or six months ended June 30, 2025. As of June 30, 2025, shares of our common stock having a value of approximately $11,667 remained available for issuance under the Sales Agreement. Any additional shares offered and sold under the Sales Agreement are to be issued pursuant to the Form S-3 and a 424(b) prospectus supplement.

We anticipate that current cash resources, amounts available under the 2022 Credit Facility, cash to be generated from operations and equipment financing, potential proceeds from the sale of securities under the Sales Agreement, access to the public or private debt and/or equity markets including any potential proceeds from the sale of further securities under the Form S-3, and proceeds from sales of AMP credits will be adequate to meet our liquidity needs for at least the next twelve months.

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If assumptions regarding our production, sales and subsequent collections from certain of our large customers, our ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer, as well as receipt of customer deposits and revenues generated from new customer orders, are materially inconsistent with management's expectations, we may in the future encounter cash flow and liquidity issues.

If our operational performance deteriorates, we may be unable to comply with existing financial covenants, and could lose access to the 2022 Credit Facility. This could limit our operational flexibility, require a delay in making planned investments and/or require us to seek additional equity or debt financing. Any attempt to raise equity through the public markets could have a negative effect on our stock price, making an equity raise more difficult or more dilutive. Any additional equity financing or equity-linked financing, if available, will be dilutive to stockholders, and additional debt financing, if available, would likely require new financial covenants or impose other operating and financial restrictions on the Company and could be on less favorable terms than the 2022 Credit Facility. While we believe that we will continue to have sufficient cash available to operate our businesses and to meet our financial obligations and debt covenants for the next twelve months, there can be no assurances that our operations will generate sufficient cash, or that credit facilities or equity or equity-linked financings will be available in an amount sufficient to enable us to meet these financial obligations.

**Sources and Uses of Cash**

The following table summarizes our cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Total cash (used in) provided by: |  |  |
| Operating activities | $(20498) | $(3427) |
| Investing activities | (2115) | (2375) |
| Financing activities | 15929 | 5641 |
| Net decrease in cash | $(6684) | $(161) |

---

***Operating Cash Flows***

During the six months ended June 30, 2025, net cash used in operating activities totaled $20,498 compared to net cash used in operating activities of $3,427 during the prior year period. The increase in net cash used in operating activities during the current year period was primarily attributable to a more significant increase in inventory, decreased proceeds from the sale of AMP credits, and an increase in cash used to fund accounts receivable in the current year period. Partially offsetting this was an increase in accounts payable during the current year period as compared to a decrease in the prior year period.

***Investing Cash Flows*** 

During the six months ended June 30, 2025, net cash used in investing activities totaled $2,115, compared to net cash used in investing activities of $2,375 during the prior year period. The decrease in net cash used in investing activities as compared to the prior-year period was primarily due to a net decrease in purchases of property and equipment.

***Financing Cash Flows***

During the six months ended June 30, 2025, net cash provided by financing activities totaled $15,929, compared to net cash provided by financing activities of $5,641 during the prior year period. The increase was primarily due to increased net borrowings under the 2022 Credit Facility in the current year period, partially offset by proceeds from long-term debt received in the prior year period.

**CRITICAL ACCOUNTING ESTIMATES**

There have been no material changes in our critical accounting estimates during the six months ended June 30, 2025 as compared to the critical accounting estimates described in our Annual Report on Form 10-K for the year ended December 31, 2024.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

The preceding discussion and analysis should be read in conjunction with our condensed consolidated financial statements and related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2024. Portions of this Quarterly Report on Form 10-Q, including the discussion and analysis in this Part I, Item 2, contain "forward looking statements", as defined in Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), that reflect our current expectations regarding our future growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward looking statements by using words such as "anticipate," "believe," "expect," "intend," "will," "should," "may," "plan" and similar expressions, but these words are not the exclusive means of identifying forward looking statements. Forward-looking statements include any statement that does not directly relate to a current or historical fact. Our forward-looking statements may include or relate to our beliefs, expectations, plans and/or assumptions with respect to the following: (i) the impact of global health concerns on the economies and financial markets and the demand for our products; (ii) state, local and federal regulatory frameworks affecting the industries in which we compete, including the wind energy industry, and the related phase out, extension, continuation or renewal of federal tax incentives and grants, including the advanced manufacturing tax credits, and state renewable portfolio standards as well as new or continuing tariffs on steel or other products imported into the United States; (iii) our customer relationships and our substantial dependency on a few significant customers and our efforts to diversify our customer base and sector focus and leverage relationships across business units; (iv) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (v) the economic and operational stability of our significant customers and suppliers, including their respective supply chains, and the ability to source alternative suppliers as necessary; (vi) our ability to continue to grow our business organically and through acquisitions; (vii) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (viii) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (ix) the sufficiency of our liquidity and alternate sources of funding, if necessary; (x) our ability to realize revenue from customer orders and backlog (including our ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer); (xi) the economy and the potential impact it may have on our business, including our customers; (xii) the state of the wind energy market and other energy and industrial markets generally, including the availability of tax credits, and the impact of competition and economic volatility in those markets; (xiii) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xiv) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xv) the effects of the change of administrations in the U.S. federal government; (xvi) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xvii) the potential loss of tax benefits if we experience an "ownership change" under Section 382 of the Internal Revenue Code of 1986, as amended; (xviii) the effects of proxy contests and actions of activist stockholders; (xix) the limited trading market for our securities and the volatility of market price for our securities; (xx) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); (xxi) the impact of future sales of our common stock or securities convertible into our common stock on our stock price<u>;</u> (xxii) our ability to complete the sale of our industrial fabrication operations in Manitowoc, Wisconsin (the "Manitowoc Sale") in a timely manner, if at all; and (xxiii) the impact that the Manitowoc Sale may have on our current plans and operations. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements including, but not limited to, those set forth under the caption "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and in Part II, Item 1A of this Quarterly Report on Form 10-Q. We are under no duty to update any of these statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or other factors that could cause our current beliefs, expectations, plans and/or assumptions to change. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

We are a smaller reporting company as defined by Item 10(f)(1) of Regulation S-K under the Securities Act and as such are not required to provide information under this Item pursuant to Item 305I of Regulation S-K.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

We seek to maintain disclosure controls and procedures (as defined in Rules 13a-15I and 15d-15I under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. This information is also accumulated and communicated to management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), as appropriate, to allow timely decisions regarding required disclosure. Our management, under the supervision and with the participation of our CEO and CFO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the most recent fiscal quarter reported on herein. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of June 30, 2025.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting during the three months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27

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**PART II. OTHER INFORMATION**

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| | |
|:---|:---|
| **Item 1.** | **Legal Proceedings**  |

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The information required by this item is incorporated herein by reference to Note 14, "Legal Proceedings And Other Matters" of the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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| | |
|:---|:---|
| **Item 1A.** | **Risk Factors** |

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The Risk Factors identified in our Annual Report on Form 10-K for the year ended December 31, 2024 continue to represent the most significant risks to the Company's future results of operations and financial conditions except for the updated risk factor set forth below.

***The U.S. wind energy industry is significantly impacted by tax and other economic incentives. Recent changes in these incentives could significantly impact our results of operations and growth.***

We sell towers to wind turbine manufacturers who supply wind energy generation facilities. The U.S. wind energy industry is significantly impacted by federal tax incentives and state Renewable Portfolio Standards ("RPSs"). Despite recent reductions in the cost of wind energy, due to variability in wind quality and consistency, and other regional differences, wind energy may not be economically viable in certain parts of the country absent such incentives. These programs have provided material incentives to develop wind energy generation facilities and thereby impact the demand for our products. The increased demand for our products that generally results from the credits and incentives could be impacted by the expiration or curtailment of these programs. The One Big Beautiful Bill Act (the "OBBBA"), which was signed into law on July 4, 2025, significantly shortens the eligibility windows for certain of these federal tax incentives. The expedited phase out of the production tax credit ("PTC") for new wind energy projects, investment tax credit ("ITC") created for offshore wind projects, and the AMP credits could have a material adverse impact on our business, results of operations, financial performance and future development efforts.

The PTC provides a supplemental payment based on electricity produced from each qualifying wind turbine. Legislative support for the PTC has been intermittent since its introduction in 1992, which has caused volatility in the demand for new wind energy projects.

The Consolidated Appropriations Act of 2021 ("COVID IV") was signed into law on December 27, 2020. As part of COVID IV, the PTC was extended for an additional year, allowing for a 60% credit for projects that start construction by the end of 2021. In order to benefit from the PTC, qualifying projects must either be completed within four years from their start of construction, or the developer must demonstrate that its projects are in continuous construction between start of construction and completion. The PTC tax benefits are available for the first ten years of operation of a wind energy facility, and also apply to significant redevelopment of existing wind energy facilities. Included in COVID IV is the addition of a new 30% ITC created for offshore wind projects that start construction by the end of 2025. The provision will be retroactively applied to projects that started production in 2016.

On August 16, 2022, the IRA was enacted to reduce inflation and promote clean energy in the United States. The IRA modified and extended the PTC until the later of 2032 or when greenhouse gas emissions have been reduced by 75% compared to 2022. It provides for tax credits up to a maximum of 30%, adjusted for inflation annually, for electricity generated from qualified renewable energy sources where taxpayers meet prevailing wage standards and employ a sufficient proportion of qualified apprentices from registered apprenticeship programs. It also provides a bonus credit for qualifying clean energy production in energy communities.

Under the OBBBA, wind projects that begin construction after July 4, 2026, must be placed in service by December 31, 2027, to qualify for the PTC or the ITC. Any wind project that begins construction after July 4, 2026, and is not placed in service by December 31, 2027, will not qualify for the PTC or the ITC. Wind projects that begin construction prior to July 4, 2026 may take advantage of the four-year construction safe harbor provision in COVID IV. In addition, the PTC and ITC will not be available for wind projects that are owned by, or receive material assistance from, entities from covered nations, including China, Iran, North Korean or Russia. The PTC and ITC also face heightened compliance requirements under executive orders issued alongside the OBBBA. These executive orders instruct the U.S. Treasury Department to issue stricter guidance and oversight regarding qualification standards, including the "beginning of construction" tests. These changes to the PTC and the ITC may lead to a decrease in the number of new wind projects, which could have a material adverse effect on our business.

The IRA also includes AMP credits for manufacturers of eligible components, including wind and solar components. Under the IRA, manufacturers qualified for the AMP credits based on the electricity output for each component produced and sold in the US starting in 2023 through 2032. The OBBBA eliminates the AMP credits for wind components produced and sold after December 31, 2027. The credit amount varies based on the eligible component, which includes solar components, wind energy components, inverters, qualifying battery components, and critical minerals. Tower manufacturers are eligible for credits of $0.03 per watt for applicable components produced. Manufacturers can elect a direct pay option where they can receive a payment equal to the full value of the tax credits from the Internal Revenue Service anytime during the ten-year period. That election lasts for five years, after which the AMP credits can be used against tax obligations or transferred to third parties in exchange for cash. We expect certain financial benefits as a result of tax incentives provided by the IRA. If these expected financial benefits vary significantly from our assumptions, our business, financial condition, and results of operations could be adversely affected. The OBBBA significantly shortened the time period in which we could benefit from the AMP credits, which could have a material adverse effect on our business in the near term. Any further modifications to the AMP credits or its effects arising, for example, through (i) technical guidance and regulations from the IRS and U.S. Treasury Department, (ii) subsequent amendments to or interpretations of the law, and/or (iii) future laws or regulations rendering certain provisions of the IRA less effective or ineffective, in whole or in part, could result in material adverse changes to the benefits we have recognized and expect to recognize.

Several significant administrative law cases were decided by the U.S. Supreme Court in 2024, most notably Loper Bright Enterprises V. Raimondo. In Loper Bright, the U.S. Supreme Court held that the U.S. Administrative Procedure Act requires that courts exercise their independent judgment when deciding whether a federal agency has acted within its statutory authority, and not to defer to an agency interpretation solely because a statute is ambiguous. These decisions may result in additional legal challenges to regulations and guidance issued by federal regulatory agencies, including the IRS, which the Company relies on and intends to rely on in the future. Successful challenges of certain regulations, any increased regulatory uncertainty, or delays or other impacts to the federal agency rulemaking process could adversely impact our business and operations.

RPSs generally require or encourage state regulated electric utilities to supply a certain proportion of electricity from renewable energy sources or to devote a certain portion of their plant capacity to renewable energy generation. Typically, utilities comply with such standards by qualifying for renewable energy credits evidencing the share of electricity that was produced from renewable sources. Under many state standards, these renewable energy credits can be unbundled from their associated energy and traded in a market system, allowing generators with insufficient credits to meet their applicable state mandate. These standards have spurred significant growth in the wind energy industry and a corresponding increase in the demand for our products. Currently, the majority of states have RPSs in place and certain states have voluntary utility commitments to supply a specific percentage of their electricity from renewable sources. The enactment of RPSs in additional states or any changes to existing RPSs (including changes due to the failure to extend or renew the federal incentives described above), or the enactment of a federal RPS or imposition of other greenhouse gas regulations, may impact the demand for our products. We cannot assure that government support for renewable energy will continue including any assurance regarding the adoption of any of the clean energy provisions of former President Biden's Build Back Better agenda. The elimination of, or reduction in, state or federal government policies that support renewable energy could have a material adverse impact on our business, results of operations, financial performance and future development efforts.

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| | |
|:---|:---|
| **Item 2.** | **Unregistered Sales of Equity Securities and Use of Proceeds** |

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None.

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| | |
|:---|:---|
| **Item 3.** | **Defaults Upon Senior Securities**  |

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None.

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| | |
|:---|:---|
| **Item 4.** | **Mine Safety Disclosures**  |

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Not Applicable.

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| | |
|:---|:---|
| **Item *5.*** | **Other Information**  |

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**Rule *10b5*-*1* Trading Arrangement**

During the *three* months ended *June 30, 2025,* none of the Company's directors or officers (as defined in Rule *16a*-*1*(f) of the Securities Exchange Act of *1934*) adopted, terminated or modified a Rule *10b5*-*1* trading arrangement or non-Rule *10b5*-*1* trading arrangement (as such terms are defined in Item *408* of Regulation S-K of the Securities Act of *1933*).

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| | |
|:---|:---|
| **Item 6.** | **Exhibits**  |

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The exhibits listed on the Exhibit Index are filed as part of this Quarterly Report on Form 10-Q.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

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EXHIBIT INDEX

BROADWIND, INC.

FORM 10-Q FOR THE QUARTER ENDED June 30, 2025

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| | |
|:---|:---|
| **Exhibit**<br> **<u>Number</u>** | <br> **<u>Exhibit</u>** |
| 3.1 | [Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2008](http://www.sec.gov/Archives/edgar/data/1120370/000110465908053113/a08-19089_1ex3d1.htm) |
| 3.2 | [Certificate of Amendment to the Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed August 23, 2012)](http://www.sec.gov/Archives/edgar/data/1120370/000110465912059685/a12-18891_1ex3d1.htm) |
| 3.3 | [Certificate of Amendment to the Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed May 6, 2020)](http://www.sec.gov/Archives/edgar/data/1120370/000112037020000017/bwen-20200506ex319bbf000.htm) |
| 3.4 | [Certificate of Amendment to the Certificate of Incorporation of the Company (incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed May 17, 2024)](http://www.sec.gov/Archives/edgar/data/1120370/000143774924017478/ex_675101.htm) |
| 3.5 | [Fourth Amended and Restated Bylaws of the Company, adopted as of June 26, 2023 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed June 28, 2023)](http://www.sec.gov/Archives/edgar/data/1120370/000143774923018778/ex_539275.htm) |
| 4.1 | [Fourth Amendment to Section 382 Rights Agreement dated as of February 4, 2025 between the Company and Equiniti Trust Company, as rights agent (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed February 6, 2025)](http://www.sec.gov/Archives/edgar/data/1120370/000143774925003014/ex_774758.htm) |
| 10.1 | [Tax Credit Transfer Agreement, dated as of January 8, 2025, by and between Broadwind Heavy Fabrications Inc. and MarketAxess Holdings, Inc. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 30, 2025)](http://www.sec.gov/Archives/edgar/data/1120370/000143774925002196/ex_772119.htm) |
| 10.2 | [Guaranty, dated as of January 8, 2025, by and between Broadwind Inc. and MarketAxess Holdings Inc. (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed January 30, 2025)](http://www.sec.gov/Archives/edgar/data/1120370/000143774925002196/ex_772120.htm) |
| 10.3\* | [Asset Purchase Agreement, dated as of June 4, 2025, by and between Broadwind Heavy Fabrications, Inc. and Wisconsin Heavy Fabrication, LLC\*\*](ex_847664.htm) |
| 10.4\* | [Sublease Agreement, dated as of June 4, 2025, by and between Wisconsin Heavy Fabrication, LLC and Broadwind Heavy Fabrications, Inc.\*\*](ex_847717.htm) |
| 31.1 | [Rule 13a-14(a) Certification of Chief Executive Officer\*](ex_824619.htm) |
| 31.2 | [Rule 13a-14(a) Certification of Chief Financial Officer\*](ex_824620.htm) |
| 32.1 | [Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Chief Executive Officer\*](ex_824621.htm) |
| 32.2 | [Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Chief Financial Officer\*](ex_824622.htm) |
| 101 | The following financial information from this Form 10-Q of Broadwind, Inc. for the quarter ended June 30, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Stockholders' Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text. |
| 101.INS\* | Inline XBRL Instance |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition |
| 101.LAB\* | Inline XBRL Taxonomy Extension Labels |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

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\* Filed herewith.

\*\* Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K because such schedules and exhibits do not contain information which is material to an investment decision, or which is not otherwise disclosed in the filed agreements. The Company will furnish the omitted schedules and exhibits to the SEC upon request by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29

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**SIGNATURES**

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | BROADWIND, INC. | BROADWIND, INC. |
| August 12, 2025 | By: | /s/ Eric B. Blashford |
|  |  | Eric B. Blashford |
|  |  | President and Chief Executive Officer |
|  |  | *(Principal Executive Officer)*  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30

## Exhibit 10.3

**EXHIBIT 10.3** 

**ASSET PURCHASE AGREEMENT**

This **ASSET PURCHASE AGREEMENT**, dated as of June 4, 2025 (this "**Agreement**"), is by and among Broadwind Heavy Fabrications, Inc., a Wisconsin corporation (the "**Seller**" or the "**Company**") and Wisconsin Heavy Fabrication, LLC, a Delaware limited liability company (the "**Buyer**"). Each of the Seller and the Buyer are referred to herein individually as a "**Party**", and collectively as the "**Parties**."

**RECITALS**

**WHEREAS**, the Seller desires to sell and assign to the Buyer, and the Buyer desires to purchase from the Seller, the Purchased Assets and the Buyer desires to assume the Assumed Liabilities, on the terms and subject to the conditions set forth in this Agreement.

**NOW THEREFORE**, in consideration of the foregoing premises and the respective representations, warranties, covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

**ARTICLE I**<br> **DEFINITIONS**

**Section 1.1 <u>Definitions</u>**. When used in this Agreement, the following terms have the meanings assigned to them:

**"Affiliate**" (and, with a correlative meaning, "Affiliated") shall mean, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person. As used in this definition, "control" (including, with correlative meanings, "controlled by" and "under common control with") shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise).

**"Agents**" means, with respect to any person or entity, the officers, directors, managers, employees, counsel, accountants, financial advisors, consultants and other representatives of such person or entity.

**"Agreement**" has the meaning set forth in the preamble to this Agreement.

**"Allocation**" has the meaning set forth in <u>Section 2.11</u>.

**"Ancillary Documents**" means the Bill of Sale, the Assignment and Assumption Agreement, the Sublease, and the other agreements, instruments and documents required to be delivered at the Closing.

**"Assigned Contracts**" has the meaning set forth in <u>Section 2.1(a)</u>.

**"Assignment and Assumption**" has the meaning set forth in <u>Section 2.8(b)(ii)</u>.

**"Assumed Liabilities**" has the meaning set forth in <u>Section 2.3</u>.

**"Bill of Sale**" has the meaning set forth in <u>Section 2.8(c)(i)</u>.

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**"Business Day**" means any day other than a Saturday, Sunday or other day on which banks located in the State of Wisconsin are closed.

**"Business Employees**" shall mean all hourly employees of the Seller at the Premises immediately prior to the Closing Date.

**"Buyer**" has the meaning set forth in the preamble to this Agreement.

**"Buyer Fundamental Representations**" means the representations found in <u>Section 4.1</u> (Organization and Existence), <u>Section 4.2</u> (Authority and Enforceability), <u>Section 4.3</u> (Non-Contravention) and <u>Section 4.4</u> (Brokers).

**"Buyer Indemnitees**" has the meaning set forth in <u>Section 8.1</u>.

**"Claim Notice**" has the meaning set forth in <u>Section 8.6</u>.

**"Claimed Amount**" has the meaning set forth in <u>Section 8.6</u>.

**"Closing**" has the meaning set forth in <u>Section 2.6</u>.

**"Closing Assumed Liabilities**" has the meaning set forth in <u>Section 2.8(a)(ii)</u>.

**"Closing Date**" has the meaning set forth in <u>Section 2.6</u>.

**"Closing Payment**" means an amount equal to $6,000,000 *plus* (a) if the Closing Date occurs before July 31, 2025, $800,000 or (b) if the Closing Date occurs after July 31, 2025, but before August 31, 2025, $500,000.

**"Closing Purchased Assets**" has the meaning set forth in <u>Section 2.8(a)(i)</u>.

**"Code**" means the Internal Revenue Code of 1986, as amended, and any successor thereto.

**"Company**" has the meaning set forth in the preamble to this Agreement.

**"Confidentiality Agreement**" has the meaning set forth in <u>Section 9.4</u>.

**"Contract**" means any written or oral contract, lease, license, indenture, undertaking or other agreement that is legally binding.

**"Dealer**" has the meaning set forth in Section 3(a)(5) of the Exchange Act.

**"Disclosure Schedules**" has the meaning set forth in the preamble to <u>ARTICLE III</u>.

**"Disclosure Schedule Update**" has the meaning set forth in <u>Section 5.12</u>.

**"Dispute**" has the meaning set forth in <u>Section 9.6(a)</u>.

**"ERISA**" means the Employee Retirement Income Security Act of 1974.

**"Escrow Agent**" means U.S. Bank.

------

**"Escrow Agreement**" means that certain Escrow Agreement, dated on the date hereof, by and among Buyer, Seller, and Escrow Agent.

**"Exchange Act**" means the Securities Exchange Act of 1934, as amended.

**"Excluded Assets**" has the meaning set forth in <u>Section 2.2</u>.

**"Excluded Liabilities**" has the meaning set forth in <u>Section 2.4</u>.

**"Filing**" has the meaning set forth in <u>Section 3.4(b)</u>.

**"Final Determination**" has the meaning set forth in <u>Section 8.7(c)</u>.

**"Fraud**" shall mean common law fraud that is committed with actual (as opposed to imputed or constructive) knowledge of falsity and with the intention to deceive or mislead (as opposed to reckless indifference to the truth) another who is relying thereon with respect to the making of, or with respect to material facts in, any representation or warranty set forth in this Agreement, made by such party.

**"Governmental Entity**" means any federal, state, local, domestic or foreign agency, court, tribunal, administrative body, arbitration panel, department or other legislative, judicial, regulatory, governmental or quasi-governmental entity.

**"Indemnitee**" means any person or entity that is entitled to indemnification pursuant to the provisions of this Agreement.

**"Indemnitor**" means any Party from which a person or entity is entitled to indemnification pursuant to the provisions of this Agreement.

**"Intercompany Contract**" means any Contract between the Seller, on the one hand, and any of its Affiliates, on the other hand.

**"IRS**" means the Internal Revenue Service.

"Landlord" means City Centre, LLC.

**"Leased Real Property**" has the meaning set forth in <u>Section 3.10(a)</u>.

**"Lender**" has the meaning set forth in <u>Section 6.1(d)</u>.

**"Lessor Party Agreement**" has the meaning set forth in <u>Section 6.1(d)</u>.

**"Lien**" shall mean any security interest, pledge, mortgage, lien, charge, encumbrance, or any similar interest in any of the Purchased Assets.

**"Losses**" means any loss, liability, charge, assessed interest, fine, penalty, damage, Tax or expense (including reasonable attorneys' fees and costs of investigation, defense and enforcement of this Agreement); provided, however, that Losses shall not include any special, indirect, incidental, consequential, exemplary, and punitive damages, and any damages associated with any lost profits or lost opportunities (including loss of future revenue, income, or profits, diminution of value or loss of business reputation), except to the extent actually awarded to a Governmental Entity or any other third party in a Third Party Claim.

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**"Material Adverse Effect**" means any materially adverse change in (a) the Purchased Assets, or value thereof, taken as a whole, or (b) the ability of the Seller to consummate the transactions contemplated hereby on a timely basis; <u>provided</u>, <u>however</u>, that none of the following items, in and of itself or themselves, will constitute a Material Adverse Effect: (i) changes in economic, political, regulatory, financial or capital market conditions generally or in the industries in which the Seller operates; (ii) any acts of war (declared or undeclared), hostilities, sabotage or terrorist activities or any escalation of any of the foregoing; (iii) effects of weather, meteorological events or other acts of God; (iv) any change in law, generally accepted accounting principles in the United States, accounting standards, regulatory policy or industry standards, in each case after the date of this Agreement, or any change in interpretation of any of the foregoing, in each case after the date of this Agreement; (v) any failure of the Seller to meet projections or forecasts or revenue or earnings predictions for any period (but, for the purposes of clarity, the underlying cause of such failure may be taken into account when determining whether a Material Adverse Effect has occurred); or (vi) the Parties' entry into this Agreement, the announcement or disclosure of this Agreement or the transactions contemplated therein (including (A) the disclosure of the identity of Buyer or any of Buyer's Affiliates as being involved in the transactions, (B) any communication by Buyer or any of Buyer's Affiliates regarding the plan or intentions of Buyer or any of Buyer's Affiliates with respect to the Purchased Assets, the portion of Seller's business being acquired by Buyer, or relating to the transactions contemplated thereby, and (C) the threatened or actual impact on relationships of Seller with any customers, vendors, suppliers, distributors, landlords, or employees (including the threatened or actual termination, suspension, modification, or reduction of such relationships)), or (D) any action required or permitted by this Agreement or the performance or compliance with the terms of, or the taking of any action required by or related to, this Agreement; <u>provided</u>, <u>further</u>, that such matters in the case of clauses (i), (ii), (iii) and (iv) will be taken into account in determining whether there has been or will be a "Material Adverse Effect" to the extent of any disproportionate impact on the Purchased Assets, taken as a whole, relative to other participants operating in the same industries as the Seller.

**"Material Contracts**" has the meaning set forth in <u>Section 3.7(b)</u>.

**"Notice of Claim**" has the meaning set forth in <u>Section 8.5(a)</u>.

**"Order**" means any award, injunction, judgment, order, writ, decree or ruling entered, issued, made or rendered by any Governmental Entity that possesses competent jurisdiction.

**"Organizational Documents**" means, with respect to any entity, the articles or certificate of incorporation or organization, certificate of formation, by-laws, limited partnership agreement, partnership agreement, limited liability company agreement, shareholders agreement or such other organizational documents of such entity.

**"Outside Date**" has the meaning set forth in <u>Section 7.1(a)</u>.

**"Party**" and "**Parties**" have the meanings set forth in the preamble to this Agreement.

**"Permit**" has the meaning set forth in <u>Section 3.4(b)</u>.

**"Permitted Liens**" means all Liens (a) that are set forth on <u>Schedule A</u> hereto, (b) that arise out of Taxes or general or special assessments not yet due and payable without penalty or interest or the validity of which is being contested in good faith by appropriate proceedings, (c) of carriers, warehousemen, mechanics, materialmen and other similar persons or otherwise imposed by law which are incurred in the Seller's ordinary course of business for sums not yet due and payable or are being contested in good faith, (d) that relate to deposits made in the Seller's ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, (e) that arise out of zoning and other governmental ordinances and building and use restrictions, or (f) that do not have a Material Adverse Effect.

------

**"Person**" means any individual, firm, corporation, partnership, limited liability company, joint venture, association, estate, trust, governmental agency or body or other entity, and shall include any successor (by merger or otherwise) of such Person.

**"Premises**" means the real property located at 101 S. 16<sup>th</sup> Street, Manitowoc, Wisconsin 54220.

**"Prime Lease**" means that certain Lease, dated of even date herewith, between Buyer and Landlord, with respect to the Premises.

**"Purchase Price**" has the meaning set forth in <u>Section 2.5</u>.

**"Purchased Assets**" has the meaning set forth in <u>Section 2.1</u>.

**"Real Property Leases**" has the meaning set forth in <u>Section 3.10(a)</u>.

**"Records**" means all data, books, records, marketing materials, training modules and other literature and instruments (including in electronic form or through electronic media) relating to the Purchased Assets.

**"Restricted Business**" has the meaning set forth in <u>Section 5.9(a)</u>.

**"SEC**" means the United States Securities and Exchange Commission.

**"Seller**" has the meaning set forth in the preamble to this Agreement.

**"Seller Benefit Plan**" means any plan, program, agreement, policy or arrangement, whether or not reduced to writing, and whether covering a single individual or a group of individuals, that is (a) an "employee welfare benefit plan" within the meaning of Section 3(1) of ERISA, (b) an "employee pension benefit plan" within the meaning of Section 3(2) of ERISA, (c) a stock ownership, stock bonus, stock purchase, stock option, stock unit, restricted stock, phantom stock, stock appreciation right or other equity or equity-based plan, program, agreement, or arrangement or (d) any other employment, consulting, independent contractor, termination, severance, deferred compensation, retirement, welfare-benefit, bonus, incentive, profit-sharing, savings, retention, change-of-control, fringe-benefit, vacation, disability, death benefit, hospitalization, medical plan, program, agreement, policy or arrangement that or to which the Seller sponsors, maintains, contributes or is obligated to contribute, or under which the Seller has or may have any liability, or which benefits any current or former employee, director, consultant or independent contractor of the Seller or the beneficiaries or dependents of any such person or entity.

**"Seller Fundamental Representations**" means the representations found in <u>Section 3.1</u> (Organization and Existence), <u>Section 3.2</u> (Authority and Enforceability), and <u>Section 3.3</u> (Title to Assets) and <u>Section 3.11</u> (Brokers).

**"Seller Indemnitee**" has the meaning set forth in <u>Section 8.2</u>.

**"Signing**" means the time of execution of this Agreement by Buyer and Seller.

**"Signing Payment**" means $7,000,000.

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**"Subcontract Agreement**" has the meaning set forth in <u>Section 2.8(b)(iv).</u>

**"Sublease**" means that certain Sublease, dated of even date herewith, between Buyer, as the sub-lessor, and Seller, as the sub-lessee, with respect to the Premises.

**"Tax**" or "**Taxes**" means (a) any United States local, state or federal or foreign income, gross receipts, license, profits, franchise, withholding, ad valorem, personal property (tangible and intangible), employment, payroll, sales and use, social security (or similar including FICA), unemployment, escheat or unclaimed property obligation, registration, disability, occupation, real property, severance, stamp, premium, windfall profits, environmental, customs, duties, capital stock, excise, alternative or add-on minimum, estimated or other taxes of any kind or any charge of any kind in the nature of (or similar to) taxes imposed by a Taxing Authority, including any interest, penalty or addition thereto, in each case whether disputed or not and (b) any liability for the payment of any amounts of the type described in clause (a) as a result of being a member of an affiliated, consolidated, combined or unitary group, as a result of any tax sharing or tax allocation agreement, arrangement or understanding, or as a result of being liable for another person or entity's taxes as a transferee or successor, by Contract or otherwise.

**"Tax Returns**" means any return, report, declaration, election or similar statement filed or required to be filed with respect to any Taxes (including any attached schedules), including any information return, claim for refund, amended return and declaration of estimated Tax.

**"Taxing Authority**" means, with respect to any Tax, the Governmental Entity or political subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision.

**"Third Party Claim**" has the meaning set forth in <u>Section 8.5(a)</u>.

**"Third Party Defense**" has the meaning set forth in <u>Section 8.5(b)</u>.

**"Threshold Amount**" has the meaning set forth in <u>Section 8.4(a)</u>.

**"To Seller**'**s knowledge**" and words of similar import shall mean the actual knowledge of those employees of Seller listed on **Schedule B** after reasonable investigation.

**"Transfer Taxes**" has the meaning set forth in <u>Section 5.6</u>.

**Section 1.2 <u>Interpretation</u>**. Articles, titles and headings to sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. The Schedules, Exhibits and Sections of the Disclosure Schedules referred to herein will be construed with and as an integral part of this Agreement to the same extent as if they were set forth herein. For purposes of this Agreement, (a) the words "include," "includes" and "including" will be deemed to be followed by the words "without limitation"; (b) the word "or" is not exclusive; (c) the words "herein," "hereof," "hereby," "hereto" and "hereunder" refer to this Agreement as a whole; (d) references herein to Articles, Sections, Exhibits, Schedules and Disclosure Schedules mean the Articles and Sections of, and the Exhibits, Schedules and Disclosure Schedules attached to or delivered in connection with, this Agreement; (e) references to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; (f) references to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder; and (g) the singular number will include the plural, and vice versa; the masculine gender will include the feminine and neuter genders; the feminine gender will include the masculine and neuter genders; and the neuter gender will include the masculine and feminine genders. This Agreement, the Ancillary Documents will be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

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**ARTICLE II**<br> **PURCHASE AND SALE**

**Section 2.1 <u>Purchase and Sale of the Assets</u>**. Subject to the terms and conditions set forth in this Agreement, at the Closing the Seller will sell, convey, transfer, assign and deliver to the Buyer, free and clear of all Liens except Permitted Liens, and the Buyer will purchase, acquire and accept from the Seller, all of the Seller's right, title and interest in, to and under only the following assets, properties and rights of the Seller (collectively, the "**Purchased Assets**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Contracts set forth on <u>Schedule 2.1(a)</u> (collectively, the "**Assigned Contracts**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the equipment, machinery, personal property, and other assets set forth on <u>Schedule 2.1(b)</u> (the "**Personal Property**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all claims, demands, causes of action, rights of recovery, rights of set-off, rights of recoupment, guarantees, warranties, indemnities, and similar rights of the Seller (regardless of whether such rights are currently excisable) exclusively relating to any Purchased Assets or Assumed Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent transferrable, the Permits necessary to operate or use the Purchased Assets set forth on <u>Schedule 2.1(d)</u>.

**Section 2.2 <u>Excluded Assets</u>**. The Parties expressly understand and agree that the Buyer is not purchasing or acquiring, and the Seller is not selling or assigning, any other assets, properties or rights of the Seller (the "**Excluded Assets**"), including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all accounts receivable of the Seller, including any intracompany receivables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all cash and cash equivalents and bank accounts of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all items set forth on <u>Schedule 2.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Seller Benefit Plans and any other of the Seller's plans or arrangements for the benefit of the Company's employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any assets, properties or rights of Seller used in the operation of Seller's business at any location other than the Premises.

**Section 2.3 <u>Assumed Liabilities</u>**. Subject to the terms and conditions set forth herein, the Buyer will assume and agree to pay, perform and discharge when due only certain liabilities and obligations of the Seller to the extent such liabilities and obligations relate to the Purchased Assets and arise on or after the Closing (collectively, the "**Assumed Liabilities**"), which liabilities and obligations will be limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all liabilities and obligations relating to or arising out of the Assigned Contracts, arising at or after the Closing Date (which will not include any liabilities or obligations arising from any breach, default, failure to perform, improper performance or violation or any conduct with respect to such Assigned Contracts occurring prior to, or otherwise related to the period prior to, the Closing Date);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all liabilities and obligations for (i) Taxes relating to the Purchased Assets or the Assumed Liabilities for any taxable period (or portion thereof) beginning after the Closing, and (ii) Taxes for which the Buyer is liable pursuant to <u>Section 5.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all ordinary course accounts payable to third parties associated with the Purchased Assets arising on or after the Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all liabilities accruing, arising out of or relating to the ownership or use of the Purchased Assets from and after the Closing Date.

**Section 2.4 <u>Excluded Liabilities</u>**. Notwithstanding any provision in this Agreement to the contrary, the Buyer will not assume and will not be responsible to pay, perform or discharge any of the liabilities or obligations of the Seller of any kind or nature whatsoever other than the Assumed Liabilities, including, but not limited to, the following liabilities or obligations of the Seller (collectively, the "**Excluded Liabilities**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any liabilities of the Seller arising or incurred in connection with the negotiation, preparation, investigation, and performance of this Agreement, the Ancillary Documents and the transactions contemplated hereby and thereby, including, without limitation, fees and expenses of counsel, accountants, consultants, advisers and others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any liabilities or obligations to the extent arising out of the Seller's ownership or operation of the Purchased Assets prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any liabilities or obligations of the Seller for compensation or bonuses, including transaction or retention bonuses, with respect to the employees of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any liabilities relating to or arising out of the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all indebtedness, intercompany payables, or accounts payable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any liabilities or obligations arising from any breach, default, failure to perform, improper performance or violation or any conduct with respect to such Assigned Contracts occurring prior to, or otherwise related to the period prior to, the Closing Date, including any product warranties with respect to products sold by Seller prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any liabilities or obligations with respect to (i) Taxes and Tax Returns relating the Purchased Assets or the Assumed Liabilities for any taxable period (or a portion thereof) ending on or prior to the Closing, (ii) any Taxes of the Seller for any taxable period, (iii) Taxes for which the Seller is liable pursuant to <u>Section 5.6</u>, and (iv) any withholding Taxes imposed in connection with the transactions set forth in this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any liability or obligations with respect to Seller Benefit Plans and any other of the Seller's plans or arrangements for the benefit of the Company's employees and with respect to any current or former employee or independent contractor of the Seller or any Affiliate of the Seller, including any liabilities arising out of or related to the employment, retention or engagement of any employee or independent contractor and the termination of such employee or independent contractor.

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**Section 2.5 <u>Purchase Price</u>**. The aggregate consideration to be paid by the Buyer for the Purchased Assets (the "**Purchase Price**") is: (a) an amount in cash equal to (i) the Signing Payment plus (ii) the Closing Payment; <u>plus</u> (b) the Buyer's assumption of the Assumed Liabilities.

**Section 2.6 <u>Closing</u>**. The closing of the transactions contemplated by this Agreement (the "**Closing**") will take place remotely by exchange of documents and signatures (or their electronic counterparts), on the last Business Day of the calendar month in which the conditions set forth in <u>ARTICLE VI</u> (other than those conditions that by their nature are to be satisfied at the Closing, but subject to such satisfaction or waiver) have been satisfied or waived, or at such other time, date and place as may be mutually agreed upon in writing by the Parties (the date on which the Closing actually occurs being referred to herein as the "**Closing Date**").

**Section 2.7 <u>Signing Actions and Deliveries</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Signing, the Seller will deliver to Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement, the Sublease, and the Escrow Agreement, duly executed by Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an acknowledgment of the termination of the existing leases with respect to the facilities located at 101 S. 16<sup>th</sup> Street, Manitowoc, Wisconsin 54220, substantially in the form attached hereto as **<u>Exhibit A</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Signing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Buyer will deliver to Seller this Agreement, the Sublease, the Prime Lease, and the Escrow Agreement, duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Buyer will deliver, by wire transfer of immediately available funds, the Signing Payment to the Escrow Agent.

**Section 2.8 <u>Closing Actions and Deliveries</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Seller will sell, convey, transfer, assign, and deliver to the Buyer, free and clear of all Liens except Permitted Liens, and the Buyer will purchase, acquire, and accept from the Seller, all of the Seller's right, title and interest in, to and under the Purchased Assets (the "**Closing Purchased Assets**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Buyer will assume and agree to pay, perform, and discharge when due the Assumed Liabilities (the "**Closing Assumed Liabilities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Closing, the Buyer will deliver to the Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an amount (by wire transfer of immediately available funds to such account or accounts specified by the Seller to the Buyer at least two (2) Business Days prior to the Closing) equal to the Closing Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an assignment and assumption agreement substantially in the form attached hereto as **<u>Exhibit B</u>** (the "**Assignment and Assumption**"), duly executed by the Buyer and relating to the Closing Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a written acknowledgment of the termination of the sublease between Buyer and Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a subcontract agreement with respect to the contracts not assumed by Buyer for which Seller wishes to engage Buyer's services, substantially in the form attached hereto as **<u>Exhibit C</u>** (the "**Subcontract Agreement**"), duly executed by the Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the certificate required to be delivered by the Buyer at or prior to the Closing pursuant to <u>Section 6.2(c)</u> of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the Closing, the Seller will deliver to the Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a bill of sale substantially in the form attached hereto as **<u>Exhibit D</u>** (the "**Bill of Sale**"), duly executed by the Seller and relating to the Closing Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Assignment and Assumption, duly executed by the Seller and relating to the Closing Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Subcontract Agreement, duly executed by the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an updated Schedule 2.1(a) and Schedule 6.1(c), each updated as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the certificates required to be delivered by the Seller at or prior to the Closing pursuant to <u>Section 6.1(c)</u> this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such other customary instruments of transfer, assumption, filings, documents, or certificates, in form and substance reasonably satisfactory to Buyer, as may be reasonably required by Buyer or required to give effect to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the Closing, the Seller and Buyer shall deliver to the Escrow Agent joint written instructions directing the disbursement of the Signing Payment to Seller.

**Section 2.9 <u>Purchase Price Adjustment</u>.** The Purchase Price will be adjusted as set forth on Schedule 2.9.

**Section 2.10 <u>Non-Assignable and Non-Transferrable Purchased Assets</u>**. Notwithstanding any provision in this Agreement to the contrary, this Agreement will not constitute an agreement to assign any Purchased Asset or any right thereunder if an attempted assignment, without the consent of any third party, would constitute a breach thereunder or in any way adversely affect in any material respect the rights of the Buyer or the Seller or any of their respective Affiliates, and Seller will, both before and for a reasonable period after the Closing, upon the specific request of Buyer, use its commercially reasonable efforts to obtain any such required consent(s) as promptly as possible; <u>provided</u>, <u>however</u>, under no circumstances shall the Seller be required to pay more than a token or nominal sum of money or incur any other obligation to such third party in fulfilling this "commercially reasonable efforts" obligation, and the Seller does not guarantee that any consents to assignment will be obtained. If such consent is not obtained or such other action is not taken, the Seller and the Buyer will cooperate in a mutually agreeable arrangement under which the Buyer would obtain the benefits and assume the obligations thereunder in accordance with this Agreement; <u>provided</u>, <u>however</u>, that neither the Seller nor the Buyer will be required to pay any consideration therefor. Once such consent is obtained, the Seller will sell, assign, transfer, convey and deliver to the Buyer the relevant Purchased Asset to which such consent relates for no additional consideration. To the extent that any Purchased Asset is not transferred to the Buyer upon the Closing, from and after the Closing, until such time as the required consent sufficient to allow such sale, assignment, transfer, conveyance or delivery of such Purchased Asset is obtained and each Purchased Asset is so assigned, the Seller will (i) pay and otherwise provide to the Buyer the full benefits of, and economic and, to the extent permitted under applicable law (or Contract), operational equivalent of, the assignment of the Purchased Assets as of the Closing (including the benefit of any limitations on liability) under any reasonable and lawful arrangement (as a subcontractor or otherwise) designed to provide such benefits and equivalent to the Buyer on a pass-through basis (including customer payments without reduction by the Seller), and (ii) enforce at the request of the Buyer and for the account of the Buyer, any rights of the Seller arising from any such Purchased Asset (including the right to elect to terminate or amend such Purchased Asset in accordance with its terms <u>provided</u> such termination or amendment does not negatively impact the Seller), and the Buyer will perform and discharge the obligations with respect to such Purchased Assets (including any related Assumed Liabilities) under such arrangement.

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**Section 2.11 <u>Purchase Price Allocation</u>**. The Seller and the Buyer will work in good faith to prepare an allocation (the "**Allocation**") of the Purchase Price as determined for Tax purposes (and all other capitalized costs) within sixty (60) days after the Closing among the Purchased Assets in accordance with Section 1060 of the Code and the Treasury Regulations promulgated thereunder (and any similar provision of state, local, or non-U.S. law, as appropriate). The Buyer will deliver the Allocation to the Seller within sixty (60) days after the Closing. The Seller, the Buyer and their respective Affiliates will report, act, and file Tax Returns (including, but not limited to IRS Form 8594) in all respects and for all purposes consistent with the Allocation and neither the Seller nor the Buyer will take any position (whether in audits, Tax Returns, or otherwise) that is inconsistent with the Allocation unless required to do so by applicable law.

**Section 2.12 <u>Tax Withholding</u>**. The Buyer and any other applicable withholding agent will be entitled to deduct and withholding from any consideration payable under this Agreement any withholding Taxes or other amounts required under the Code or any applicable law to be deducted and withheld. The Buyer shall provide prompt notice to the Seller of any such deductions or withholdings and shall remit the withheld amounts to the appropriate Taxing Authority within a specified period. To the extent any such amounts are so deducted and withheld, such amounts will be treated for all purposes of this Agreement as having been paid to the person or entity in respect of which such deduction and withholding was made.

**ARTICLE III**<br> **REPRESENTATIONS AND WARRANTIES RELATING TO THE SELLER**

The Seller represents and warrants to the Buyer as of the date of this Agreement (other than representations and warranties that are made as of a specific date, which are made only as of such date), except as set forth in the disclosures schedules delivered by the Buyer as of date of this Agreement (collectively, the "**Disclosure Schedules**"), as follows:

**Section 3.1 <u>Organization and Existence</u>**. The Seller is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. The Seller is duly qualified or licensed as a foreign corporation to do business, and is in good standing, in each jurisdiction where the character of its properties or assets owned, leased or operated by it or the nature of its activities makes such qualification or licensing necessary, except where the failure to be so qualified or licensed would not reasonably be expected to have a Material Adverse Effect.

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**Section 3.2 <u>Authority and Enforceability</u>**. The Seller has the requisite power and authority to execute and deliver this Agreement and each Ancillary Document, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated by this Agreement. The execution, delivery and performance by the Seller of this Agreement and the Ancillary Documents, and the consummation by the Seller of the transactions contemplated hereby and thereby, have been duly authorized by all necessary action on the part of the Seller, and no other action is necessary on the part of the Seller to authorize this Agreement and the Ancillary Documents or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and each Ancillary Document when executed will be, duly executed and delivered by the Seller and, assuming the due authorization, execution and delivery by each other Party hereto, this Agreement and each Ancillary Document constitutes a legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as limited by (a) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws relating to creditors' rights generally and (b) general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

**Section 3.3 <u>Title to Assets</u>**. Except as set forth on <u>Section 3.3</u> of the Disclosure Schedules, the Seller has good title to all of the Purchased Assets, or holds such Purchased Assets by valid and existing lease or license, free and clear of any and all Liens except Permitted Liens. None of the Purchased Assets is in the possession, custody or control of any person or entity other than the Seller. <u>Section 3.3</u> of the Disclosure Schedule lists any operating lease that relates to any of the Purchased Assets.

**Section 3.4 <u>Non-Contravention.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on <u>Section 3.4(a)</u> of the Disclosure Schedules, neither the execution, delivery and performance of this Agreement by the Seller and any Ancillary Document, nor the consummation of the transactions contemplated hereby and thereby, will, with or without the giving of notice or the lapse of time or both, result in a breach or default under, give rise to a right of termination, amendment, modification, vesting, acceleration or cancellation of any right or obligation, loss of benefit under or result in the creation of any Lien except Permitted Liens upon the Purchased Assets or violate, breach or conflict with (i) any provision of the Organizational Documents of the Seller, (ii) any law or Order applicable to the Seller or the Purchased Assets or (iii) any Contract to which the Seller is a party, except in the case of the immediately preceding clause (iii) to the extent that any such violation, breach or conflict would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No consent, approval, license, permit, certificate or authorization from any Governmental Entity (each, a "**Permit**") of, or registration, declaration or filing with a Governmental Entity (each, a "**Filing**"), is required in connection with the execution and delivery of this Agreement by the Seller, the performance by the Seller of its obligations hereunder, and the consummation by the Seller of the transactions contemplated by this Agreement, other than (i) the Permits and Filings set forth on <u>Section 3.4(b)</u> of the Disclosure Schedules, (ii) those Permits and Filings that have been obtained or made by the Seller prior to the date of this Agreement and (iii) those Permits and Filings required as a result of the identity or regulatory obligations of the Buyer.

**Section 3.5 <u>Legal Proceedings</u>**. There are no legal proceedings pending or, to Seller's knowledge, threatened against or otherwise relating to the Seller or its Affiliates or their respective officers, directors, members or employees (in their capacities as such) that would reasonably be expected to have a Material Adverse Effect, and none of the Seller or, to Seller's knowledge, Seller's Affiliates has received any claim, complaint, incident, report, threat or notice (in each case, in writing or, to Seller's knowledge, orally) of any such action that could impact the Purchased Assets or Assumed Liabilities. The Seller and its respective Affiliates are not a party to or subject to or in default under any Order relating to the Purchased Assets or the Assumed Liabilities or the transactions contemplated by this Agreement.

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**Section 3.6 <u>Compliance with Laws; Permits; Filings</u>.** Seller is in compliance in all material respects with all laws applicable to the conduct of its business, and the ownership and use of the Purchased Assets.

**Section 3.7 <u>Material Contracts</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 3.7(a)</u> of the Disclosure Schedules sets forth a true and complete list of :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Contracts (x) by which any of the Purchased Assets or Assumed Liabilities are bound or affected or (y) to which the Seller is a party or by which it is bound, in each case, in connection with the Purchased Assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Contracts exclusively or primarily related to the Purchased Assets or Assumed Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all Assigned Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Contracts set forth, or that are required to be set forth, on <u>Section 3.7(a)</u> of the Disclosure Schedules are collectively referred to as the "**Material Contracts**." Neither the Seller, nor, to the knowledge of the Seller, any other party thereto, is in, or, has received written notice of, any violation of or default in any material respect under (including any condition that with the passage of time or the giving of notice would cause such a violation or default under) any Material Contract. There are no material disputes pending or, to the knowledge of Seller, threatened in writing or orally under any Material Contract. A true and complete copy of each Material Contract has previously been made available to the Buyer. Each Material Contract is a valid and binding agreement of the Seller, and is in full force and effect (except to the extent such Material Contract terminates or expires after the date of this Agreement in accordance with its terms), and is enforceable against the Seller and, to the knowledge of the Seller, each other party thereto, in accordance with its terms, except (i) as limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws relating to creditors' rights generally, and (ii) as limited by general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section 3.7(c)</u> of the Disclosure Schedule sets forth all warranty obligations under the Material Contracts. There exists no outstanding liability under any warranty obligation set forth on <u>Section 3.7(c)</u> of the Disclosure Schedule.

**Section 3.8 <u>Condition of Assets</u>**. Each item of Personal Property included in the Purchased Assets and in active use in the conduct of the Seller's business at the Premises is in good repair and good operating condition, ordinary wear and tear excepted.

**Section 3.9 <u>Taxes</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Tax Returns required to have been filed by the Seller or otherwise with respect to the Purchased Assets have been filed, and each such Tax Return is true, correct and complete in all material respects. All Taxes due and payable by or with respect to the Purchased Assets (whether or not shown as due on any Tax Return) have been timely paid in full to the applicable Taxing Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no audit pending, or, to the Seller's knowledge, threatened, against the Seller in respect of any Taxes or Tax Returns relating to the Seller, the Purchased Assets. All deficiencies asserted or assessments made, if any, with respect to Taxes, and any adjustments of any Tax item or the Tax Returns of or with respect to the Purchased Assets have been paid in full.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Liens except Permitted Liens on any of the Purchased Assets that arose in connection with any failure (or alleged failure) to pay any Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employees, independent contractors or other third parties with respect to Seller's conduct of its business at the Premises and has complied with all reporting and recordkeeping requirements under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There is no unclaimed property or escheat obligation with respect to the Purchased Assets.

**Section 3.10 <u>Real Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 3.10(a)</u> of the Disclosure Schedules sets forth all real property leased by the Seller or one of its Affiliates and used in connection with the Purchased Assets (collectively, the "**Leased Real Property**"), and a list, as of the date of this Agreement, of all leases for each Leased Real Property (collectively, the "**Real Property Leases**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A full copy of each Real Property Lease has been furnished or made available to the Buyer. There are no arrears of rent under any Real Property Lease and the current uses of all Leased Real Property comply in all material respects with applicable law.

**Section 3.11 <u>Brokers</u>**. The Seller does not have any liabilities or obligations to pay fees or commissions to any Broker, finder or Agent with respect to the transactions contemplated by this Agreement or any Ancillary Document.

**Section 3.12 <u>No Other Representations and Warranties</u>**. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR ANY ANCILLARY DOCUMENT, NEITHER SELLER NOR ANY OF ITS AGENTS HAS MADE, NOR SHALL BE DEEMED TO HAVE MADE, AND NEITHER SELLER NOR ANY OF ITS AGENTS IS LIABLE FOR OR BOUND IN ANY MANNER BY, ANY EXPRESS OR IMPLIED REPRESENTATIONS, WARRANTIES, GUARANTIES, PROMISES OR STATEMENTS PERTAINING TO SELLER, THE PURCHASED ASSETS, OR THE ASSUMED LIABILITIES, EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR ANY ANCILLARY DOCUMENT DELIVERED BY ANY SUCH PERSONS.

**ARTICLE IV**<br> **REPRESENTATIONS AND WARRANTIES OF THE BUYER**

The Buyer represents and warrants to the Seller as follows:

**Section 4.1 <u>Organization and Existence</u>**. The Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of formation. The Buyer is duly qualified or licensed as a foreign limited liability company to do business, and is in good standing, in each jurisdiction where the character of its properties or assets owned, leased or operated by it or the nature of its activities makes such qualification or licensing necessary, except where the failure to be so qualified or licensed would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the Buyer's ability to perform its obligations hereunder.

**Section 4.2 <u>Authority and Enforceability</u>**. The Buyer has the requisite power and authority to execute and deliver this Agreement and each Ancillary Document to which Buyer is a party, to perform its obligations hereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by the Buyer of this Agreement and the Ancillary Documents and the consummation by the Buyer of the transactions contemplated hereby and thereby has been duly authorized by all necessary action on the part of the Buyer and no other action is necessary on the part of the Buyer to authorize this Agreement, the Ancillary Documents, or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and each Ancillary Document when executed will be, duly executed and delivered by the Buyer and, assuming the due authorization, execution and delivery by each other Party hereto and thereto, this Agreement and each Ancillary Document, constitutes a legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, except as limited by (a) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws relating to creditors' rights generally and (b) general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

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**Section 4.3 <u>Non-Contravention</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the execution, delivery and performance of this Agreement by the Buyer or any Ancillary Document, nor the consummation of the transactions contemplated hereby and thereby, will, with or without the giving of notice or the lapse of time or both, (i) violate any provision of the Organizational Documents of the Buyer, (ii) violate any law or Order applicable to the Buyer or (iii) violate any Contract to which the Buyer is a party, except in the case of clauses (ii) and (iii) to the extent that any such violation would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the Buyer's ability to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Permit of, or Filing with, any Governmental Entity is required in connection with the execution and delivery of this Agreement by the Buyer, the performance by the Buyer of its obligations hereunder and the consummation by the Buyer of the transactions contemplated by this Agreement other than (i) those Permits and Filings that have been obtained or made by the Buyer prior to the date of this Agreement and (ii) those Permits and Filings the failure of which to obtain or make would not reasonably be expected to have a material adverse effect on the Buyer's ability to perform its obligations hereunder.

**Section 4.4 <u>Brokers</u>**. Neither the Buyer nor any of its Affiliates has any liability or obligation to pay fees or commissions to any broker, finder or Agent with respect to the transactions contemplated by this Agreement or any Ancillary Document.

**Section 4.5 <u>Financial Capability</u>**. Buyer has, and as of the Closing Date will have, available (either from its immediately available cash or from available unused lines of credit or third party financing, or a combination thereof) funds sufficient to pay the Purchase Price in cash and to consummate the Closing. Buyer knows of no circumstance or condition that would prevent the availability at the Closing of the requisite financing to consummate the transactions contemplated by this Agreement on the terms set forth herein.

**Section 4.6 <u>Independent Investigation; Seller Representations</u>**. Buyer has conducted its own independent investigation, review and analysis of the conduct of the Seller's business at the Premises, the Purchased Assets, and the Assumed Liabilities. Buyer acknowledges that it and its Agents have been provided adequate access to information about the Seller's business at the Premises, the Purchased Assets, and the Assumed Liabilities for such purpose and has been provided with and has evaluated such documents and information as it has deemed necessary to make an informed and intelligent decision with respect to the execution, delivery and performance of this Agreement. By executing this Agreement, Buyer acknowledges that is has relied solely upon its own investigation, review and analysis and not on any factual representations or opinions of Seller, other than the representations set forth in this Agreement and the Ancillary Documents.

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**ARTICLE V**<br> **COVENANTS**

**Section 5.1 <u>Access to Information</u>.** From the date of this Agreement and continuing for a period ending three (3) years after the Closing, the Seller will provide the Buyer and its Agents with access to information regarding the conduct of the Seller's business at the Premises and all Records as reasonably requested by the Buyer, in each case, other than (A) information that the Seller is prohibited by law from providing to the Buyer or (B) information that constitutes or allows access to information protected by attorney/client privilege (except to the extent that the information relates to the Purchased Assets or Assumed Liabilities); <u>provided</u>, <u>however</u>, that such access (1) will be conducted at the Buyer's expense, during normal business hours and under the supervision of the Seller's personnel, (2) does not disrupt the normal operations of the Seller and (3) will comply with all laws.

**Section 5.2 <u>Conduct of Business</u>**. Except as prohibited pursuant to this <u>Section 5.2</u>, during the period between the date of this Agreement and the Closing, the Seller will, and will cause the subsidiaries of the Company to, conduct its business in all material respects in the ordinary course consistent with past practice, and preserve, maintain and protect the Purchased Assets. Without limiting the foregoing, during the period between the date of this Agreement and the Closing except as consented to in writing by the Buyer, the Seller will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) sell, transfer, or dispose of any Purchased Assets (other than the sale of inventory in the ordinary course of business), or amend, terminate or waive any material rights constituting Purchased Assets, other than in the ordinary course of business consistent with past practice or as would not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) create any Lien, except Permitted Liens, upon any of the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) incur capital expenditures that would constitute an Assumed Liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amend any of its Organizational Documents in any manner that would reasonably be expected to have an adverse effect on any of the Purchased Assets or the Seller's compliance with its obligations under this Agreement or any Ancillary Document or the Seller's ability to consummate the transactions contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) directly or indirectly acquire, whether by merger or consolidation, or acquiring all or substantially all of the assets or equity of, any other person or entity in any manner that could reasonably be expected to have an adverse effect on any of the Purchased Assets or the Seller's compliance with its obligations under this Agreement or the consummation of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) incur any indebtedness or enter into any guarantee or similar obligation that is secured by any Purchased Assets or would not reasonably be expected to adversely affect the Seller's compliance with its obligations under this Agreement or the consummation of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) fail to perform any of its obligations under the Assigned Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) fail to comply in any material respect with any laws applicable to the ownership and use of the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fail to continue in full force and effect without modification all insurance policies, except as required by applicable law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter into any agreements or purchase orders with respect to Seller's non-wind-related business over $100,000 in total value without the prior written consent of Buyer; provided, however, Buyer must respond within three (3) Business Days of receiving (x) a written request from Seller for approval of such agreement or purchase order and (y) information sufficient to evaluate such agreement or purchase order, otherwise Buyer shall be deemed to have consented to entry into such agreement or purchase order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) take or permit any action that would cause any of the changes, events or conditions described in <u>Section 5.2</u> to occur.

**Section 5.3 <u>Publicity</u>**. From and after the execution of this Agreement, (a) each Party will consult with the other Party before issuing any press release or otherwise making any statement or making any other disclosure (whether or not in response to an inquiry) regarding the terms of this Agreement and the transactions contemplated hereby, and (b) neither Party will issue any such press release or make any similar statement or disclosure without the prior written approval of the other Party (which shall not be unreasonably withheld). Notwithstanding the foregoing, either Party may disclose this transaction on a Form 8-K, which filing may include this Agreement as an exhibit thereto; provided, however, that the disclosing Party will afford the other Party a reasonable opportunity to comment on such Form 8-K in advance of its actual filing with the SEC on the understanding that the final form and content of the Form 8-K shall be at the final discretion of the disclosing Party, and either Party may make public announcements or disclosures regarding this Agreement or the transactions contemplated hereby except if required to do so by applicable law or the rules and regulations of NASDAQ, in which case such Party shall use its reasonable best efforts to allow the other Party a reasonable opportunity to comment on such release, announcement or disclosure in advance of such issuance (it being understood that the final form and content of any such release, announcement or disclosure, as well as the timing of any such release, announcement or disclosure, shall be at the final discretion of the disclosing party).

**Section 5.4 <u>Expenses</u>.** Except as otherwise expressly provided in this Agreement, whether or not the transactions contemplated by this Agreement are consummated, each Party will pay its own costs and expenses incurred in anticipation of, relating to and in connection with the negotiation and execution of this Agreement and the transactions contemplated by this Agreement.

**Section 5.5 <u>Bulk Sales Laws</u>**. The Parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to the Buyer.

**Section 5.6 <u>Transfer Taxes</u>**. All transfer, documentary, sales, use, stamp, registration, value added and other similar Taxes and fees (including any penalties and interest) ("**Transfer Taxes**") incurred in connection with the transactions contemplated by this Agreement will be borne and paid fifty percent (50%) by the Buyer and fifty percent (50%) by the Seller when due. Each Party will, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and the other Party will cooperate with respect thereto as necessary).

**Section 5.7 <u>Further Actions</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, each of the Buyer and the Seller agrees to use their commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement and the Ancillary Documents. Nothing contained in this <u>Agreement</u> will require, and in no event will the commercially reasonable efforts of the Seller be deemed or construed to require, the Seller to (i) pay any material fee or (ii) incur any other liability following the Closing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the terms and conditions of this Agreement, at any time and from time to time following the Closing at a Party's request and without further consideration, the other Parties will execute and deliver to such requesting Party such other instruments of sale, transfer, assurance, conveyance, assignment and confirmation, provide such materials and information and take such other actions as such Party may reasonably request in order to consummate the transactions contemplated by this Agreement and the Ancillary Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except for those consents that are otherwise expressly dealt with in other sections of this Agreement, the Seller will use commercially reasonable efforts, and the Buyer will reasonably cooperate and assist as requested by the Seller, to give all notices to, and obtain all consents from, all third parties that are described in <u>Section 3.4(b)</u> of the Disclosure Schedules; <u>provided</u>, <u>however</u>, that no Party will be obligated to pay any material consideration therefor to any third party from whom consent or approval is requested.

**Section 5.8 <u>Release</u>**. From and after the Closing, the Seller hereby releases and forever discharges any and all rights and claims that it has had, now has or might now have against or with respect to the Purchased Assets or Assumed Liabilities except for rights and claims pursuant to the terms and conditions of this Agreement.

**Section 5.9 <u>Restrictive Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Non-Competition by Buyer</u>.** During the period commencing with the Closing Date and ending on the fifth anniversary of the Closing Date, Buyer shall not, and shall cause its Affiliates not to, engage in the Restricted Business, or own, manufacture for, supply to, consult with or otherwise render services to any Person (including Buyer or any of its Affiliates) who is engaged in the Restricted Business. "**Restricted Business**" means the fabrication of steel towers and manufacturing of repowering adaptors for sale to wind turbine manufacturers. Notwithstanding the foregoing, the Buyer and its Affiliates may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if the <u>Buyer</u> is not a controlling Person of, or a member of a group which controls, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer acknowledges and agrees that Seller may be irreparably damaged if any of the provisions of this Section 5.9 are not complied with in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that Seller shall be entitled to seek an injunction or injunctions to prevent breaches of this Section 5.9 and shall have the right to seek to specifically enforce Section 5.9 and its terms and provisions against Buyer in addition to any other remedy to which Seller may be entitled under this Agreement, at law or in equity. If Buyer shall be in breach of this covenant, then the time periods set forth in those subsections shall, as they relate to the breaching party, be extended by the length of time during which the breaching party is in breach of any of those provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is the intent of the parties that each provision of this Section 5.9 be adjudicated valid and enforced to the fullest extent permissible under the laws and public policies of each jurisdiction in which adjudication of the validity or enforcement of Section 5.9 is sought. In furtherance of the foregoing, each provision of Section 5.9 shall be severable from each other provision, and any provision of Section 5.9 that is prohibited or unenforceable in any jurisdiction shall be subject to the following: (i) if the prohibited or unenforceable provision is contrary to or conflicts with any requirement of any statute, rule or regulation in effect in the jurisdiction, then the requirement shall be incorporated into, or substituted for, the prohibited or unenforceable provision to the minimum extent necessary to make the provision valid or enforceable;(ii) the Governmental Entity or arbitrator considering the matter is authorized to (or, if that Governmental Entity or arbitrator is unwilling or fails to do so, then the parties shall) amend the unenforceable provision to the minimum extent necessary to make the provision valid or enforceable, and the parties consent to the entry of an order amending the provision to that extent for that purpose; and (iii) if any unenforceable provision cannot be or is not reformed and made valid or enforceable under this Section 5.9, then the prohibited or unenforceable provision shall be ineffective in that jurisdiction to the minimum extent necessary to make the remainder of Section 5.9 valid or enforceable in that jurisdiction. Any application of the foregoing provisions to any provision of Section 5.9 shall not (x) affect the validity or enforceability of any other provision of this Agreement, or (y) prevent the prohibited or unenforceable provision from being adjudicated valid or enforced as written in any other jurisdiction.

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**Section 5.10 <u>Buyer's Obligations for Business Employees</u>**. The Buyer agrees that, as of the Closing it shall offer employment to substantially all of the Business Employees.

**Section 5.11 <u>Exclusivity</u>**. From and after the date of this Agreement and until the Closing, the Seller will not, and will not permit its Affiliates or Agents to, directly or indirectly, (a) solicit, initiate or encourage the submission or any proposal or offer from any person or entity or group (other than the Buyer or its Agents) relating to, or enter into any agreement with respect to or consummate any transaction relating to the acquisition of the Purchased Assets or any merger, recapitalization, share exchange, sale of substantial assets or any similar transaction or alternative to the transactions contemplated by this Agreement or (b) participate in any discussion or negotiations regarding, furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any person or entity or group (other than the Buyer or its Agents) to do or seek to do any of the foregoing.

**Section 5.12 <u>Disclosure Schedule Updates</u>**. From time to time prior to the Closing, Seller shall have the right (but not the obligation) to supplement or amend the Disclosure Schedules (each such supplement or amendment, a "**Disclosure Schedule Update**") with respect to any matter arising after the date hereof and prior to the Closing that would otherwise constitute a breach of any representation, warranty, covenant, or agreement contained herein if the Disclosure Schedule were dated as of the date of the occurrence, existence, or discovery of such matter. Each such Disclosure Schedule Update shall be deemed to be incorporated into and to supplement and amend the Disclosure Schedule as of the Closing Date. If any matter included in a Disclosure Schedule Update would, absent such Disclosure Schedule Update, result in a failure of the satisfaction of the conditions set forth in Section 6.1, then Buyer will have the right to terminate this Agreement in accordance with Section7.1 provided, however, that if Buyer does not exercise such termination right within ten (10) Business Days of receipt of the Disclosure Schedule Update, then such termination right will be deemed waived. If Buyer waives, or is deemed to have waived, such termination right, then Buyer shall also have waived its right to indemnification under this Agreement with respect to such matter.

**Section 5.13 <u>Sublease</u>**. The parties acknowledge that, as a result of entering into the Prime Lease and Sublease, that certain Sublease Agreement, dated January 1, 2025, between Seller and Konecranes, Inc., an Ohio corporation (the "**Konecranes Sublease**"), will be terminated. Buyer shall present to Konecranes, Inc., a replacement sublease in substantially the same form as the Konecranes Sublease (the "**Replacement Sublease**"), provided that the Replacement Sublease shall (a) reference the Prime Lease in lieu of Seller's current leases, and (b) include language terminating the Repalcement Sublease and reinstating the Konecranes Sublease in the event that this Agreement is terminated and the Sublease and Prime Lease are terminated (as provided in Sections 7.2(c) and (d).

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**ARTICLE VI**<br> **CLOSING CONDITIONS**

**Section 6.1 <u>Buyer</u>**<u>'</u>**<u>s Conditions to Closing</u>**. The obligation of the Buyer to consummate the transactions contemplated by this Agreement will be subject to fulfillment at or prior to the Closing of the following conditions, any one or more of which may be waived in writing by the Buyer in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. The (i) Seller Fundamental Representations will be true and correct in all respects as of the date of this Agreement and as of Closing Date as though made on and as of such date (except to the extent that any such representation expressly speaks as of an earlier date, in which case such Seller Fundamental Representation will be true and correct as of such earlier date) and (ii) other representations and warranties of the Seller set forth in this Agreement will be true and correct in all respects as of the date of this Agreement and as of Closing Date as though made on and as of such date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty will be true and correct as of such earlier date), except, in the case of this clause (ii) only, where the failure of such representations and warranties to be so true and correct, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Agreements</u>. The covenants, agreements and obligations required by this Agreement and the Ancillary Documents to be performed and complied with by the Seller prior to or at the Closing will have been performed and complied with in all material respects prior to or at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Employees.</u> The employment of 80% of all Seller employees at the Premises that have been employed by Seller for at least 3 months as of the Closing Date, as listed on <u>Schedule 6.1(c)</u>, remain employees of Seller at the Closing Date; provided, however, that if any such employee has been offered employment by Buyer or any of its Affiliates but thereafter either (i) leaves their employment with Seller prior to the Closing Date for the stated reason that they did not wish to be employed by Buyer or its Affiliates, or (ii) otherwise declines employment with Buyer or its Affiliates, such employee shall be excluded from the calculation for determining whether this condition has been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Customer Calls</u>. Buyer shall have been introduced to the top five (5) customers of Seller's non-wind business customers and shall have completed customer diligence calls to such customers, to Buyer's satisfaction in its reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificates</u>. The Seller will execute and deliver to the Buyer (i) a certificate executed by an authorized officer of the Seller, dated as of the Closing Date, stating that the conditions specified in <u>Section 6.1(a)</u> and <u>Section 6.1(b)</u> of this Agreement have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Lessor Party Agreement</u>. The Seller will execute and deliver to the Buyer the Lessor Party Agreement, substantially in the form attached hereto as **<u>Exhibit E</u>**, dated as of the Closing Date, to which the Landlord, Buyer, Seller and Wells Fargo Bank, N.A. ("**Lender**") will be party (the "**Lessor Party Agreement**"), which is a condition to Lender providing its consent to sale of Purchased Assets and release of its Liens on such Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Material Adverse Effect</u>. Since the date of this Agreement, there will not have been a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Requested Documents</u>. The Seller will have delivered to the Buyer such other documents or instruments as the Buyer reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

**Section 6.2 <u>Seller</u>**<u>'</u>**<u>s Conditions to Closing</u>**. The obligation of the Seller to consummate the transactions contemplated by this Agreement will be subject to fulfillment at or prior to the Closing of the following conditions, any one or more of which may be waived in writing by the Seller in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. The (i) Buyer Fundamental Representations will be true and correct in all respects as of date of this Agreement and as of Closing Date as though made on and as of such date (except to the extent that any such Buyer Fundamental Representation expressly speaks as of an earlier date, in which case such representation and warranty will be true and correct as of such earlier date) and (ii) other representations and warranties of the Buyer set forth in this Agreement will be true and correct in all respects as of date of this Agreement and as of Closing Date as though made on and as of such date (except to the extent that any such representation expressly speaks as of an earlier date, in which case such representation and warranty will be true and correct as of such earlier date), except, in the case of this clause (ii) only, where the failure of such representations and warranties of the Buyer to be so true and correct, individually or in the aggregate, would not reasonably be expected to have a material adverse effect on the Buyer's ability to consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Agreements</u>. The covenants, agreements and obligations required by this Agreement and the Ancillary Documents to be performed and complied with by the Buyer prior to or at the Closing will have been performed and complied with in all material respects prior to or at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate</u>. The Buyer will execute and deliver to the Seller a certificate executed by an authorized officer of the Buyer, dated as of the Closing Date, stating that the conditions specified in <u>Section 6.2(a)</u> and <u>Section 6.2(b)</u> of this Agreement have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Lessor Party Agreement</u>. The Buyer will execute and deliver to the Seller the Lessor Party Agreement.

**Section 6.3 <u>Mutual Conditions to Closing</u>**. The respective obligations of the Buyer and the Seller to consummate the transactions contemplated by this Agreement will be subject to fulfillment at or prior to the Closing of the following conditions, any one or more of which may be waived by mutual written agreement of the Buyer and the Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Absence of Orders</u>. No provision of any applicable law prohibiting, enjoining, restricting or making illegal the consummation of the transactions contemplated by this Agreement or any Ancillary Document will be in effect and no temporary, preliminary or permanent restraining Order enjoining, restricting or making illegal the consummation of the transactions contemplated by this Agreement or any Ancillary Document will be in effect.

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**ARTICLE VII**<br> **TERMINATION**

**Section 7.1 <u>Grounds for Termination</u>.**

This Agreement may be terminated at any time prior to the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by either the Buyer or the Seller (<u>provided</u> that the terminating Party is not then in breach of any representation, warranty, covenant or other agreement contained herein such that the conditions to Closing set forth in <u>Section 6.1(a)</u>, <u>Section 6.1(b)</u>, <u>Section 6.2(a)</u>, or <u>Section 6.2(b)</u>, as applicable, would not have been satisfied) if the Closing will not have occurred before October 31, 2025 (the "**Outside Date**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by the Buyer if (i) the Seller has breached any of the covenants or agreements contained in this Agreement to be complied with by the Seller such that the Closing condition set forth in <u>Section 6.1(b)</u> would not be satisfied or (ii) there exists a breach of any representation or warranty of the Seller contained in this Agreement such that the Closing condition set forth in <u>Section 6.1(a)</u> would not be satisfied; <u>provided</u> that (A) in the case of the immediately preceding clauses (i) or (ii), such breach is not cured by the Seller prior to the date that is the earlier of (1) twenty (20) Business Days after the Seller receive written notice of such breach from the Buyer and (2) the Outside Date and (B) the Buyer will not be entitled to terminate this Agreement pursuant to this <u>Section 7.1(b)</u> if, at the time of such termination, the Buyer is in breach of any representation, warranty, covenant or other agreement contained herein in a manner that would cause the conditions to Closing set forth in <u>Section 6.2(a)</u> or <u>Section 6.2(b)</u>, as applicable, to not be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by the Seller if (i) the Buyer will have breached any of the covenants or agreements contained in this Agreement to be complied with by the Buyer such that the Closing condition set forth in <u>Section 6.2(b)</u> would not be satisfied or (ii) there exists a breach of any representation or warranty of the Buyer contained in this Agreement such that the Closing condition set forth in <u>Section 6.2(a)</u> would not be satisfied; <u>provided</u> that (A) in the case of the immediately preceding clauses (i) or (ii), such breach is not cured by the Buyer prior to the date that is the earlier of (1) twenty (20) Business Days after the Buyer receives written notice of such breach from the Seller and (2) the Outside Date and (B) the Seller will not be entitled to terminate this Agreement pursuant to this <u>Section 7.1(c)</u> if, at the time of such termination, the Seller is in breach of any representation, warranty, covenant or other agreement contained herein in a manner that would cause the conditions to Closing set forth in <u>Section 6.1(a)</u> or <u>Section 6.1(b)</u>, as applicable, to not be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by either the Buyer or the Seller if an Order enjoining or otherwise prohibiting the transactions contemplated by this Agreement has been issued by a Governmental Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by mutual written agreement of the Buyer and the Seller.

**Section 7.2 <u>Effect of Termination</u>.** In the event of a termination of this Agreement pursuant to <u>Section 7.1</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations of the Parties will terminate, except for the obligations under Section 5.3, Section 5.4, this ARTICLE VII, and ARTICLE IX of this Agreement and the obligations under the Confidentiality Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Buyer and Seller shall deliver joint written instructions to the Escrow Agent directing the disbursement of the Signing Payment to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Sublease between the Parties shall immediately terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Prime Lease shall be terminated effective as of the termination date of this Agreement as set forth in the Prime Lease and the original lease arrangement between Seller and Landlord shall be reinstated in full force and effect without further action of any party; <u>provided</u>, <u>however</u>, Buyer shall be responsible for all rent and other payments under the Prime Lease during the term of the Prime Lease; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, (a) such termination will not relieve any Party of any liability or damages suffered or incurred by another Party, to the extent such liabilities or damages were the result of Fraud by such Party with respect to its representations, warranties, covenants or other agreements set forth in this Agreement, and (b) the provisions of the Confidentiality Agreement will automatically be extended and remain in full force and effect without any further action by the parties thereto for the longer of (i) one (1) year following such termination or (ii) the remaining term under the Confidentiality Agreement.

**ARTICLE VIII**<br> **INDEMNIFICATION**

**Section 8.1 <u>Indemnification by the Seller</u>.** From and after the Closing, subject to the limitations set forth in this <u>ARTICLE VIII</u>, the Seller will indemnify and hold harmless each of the Buyer, its Agents and its Affiliates and their Agents, and each of the equity holders, heirs, executors, successors and assigns of any of the foregoing (collectively, the "**Buyer Indemnitees**") from, against and in respect of, and will compensate and reimburse the Buyer Indemnitees for, any and all Losses, whether or not involving a Third Party Claim, incurred or suffered by the Buyer Indemnitees or any of them as a result of, arising out of or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach of, or inaccuracy in, any representation or warranty made by Seller in this Agreement or any Ancillary Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or violation of any covenant or agreement of the Seller in or pursuant to this Agreement or any Ancillary Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without duplication, any Excluded Asset or Excluded Liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Fraud.

**Section 8.2 <u>Indemnification by the Buyer</u>.** From and after the Closing, subject to the limitations set forth in this <u>ARTICLE VIII</u>, Buyer will indemnify and hold harmless each of the Seller, its Agents and Affiliates and the Agents and Affiliates of such Affiliates, and each of the members, heirs, executors, successors and assigns of any of the foregoing (collectively, the "**Seller Indemnitees**") from, against and in respect of, and will compensate and reimburse the Seller Indemnitees for, any and all Losses, whether or not involving a Third Party Claim, incurred or suffered by the Seller Indemnitees or any of them as a result of, arising out of or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach of, or inaccuracy in, any representation or warranty made by Buyer in this Agreement, any closing certificate or Ancillary Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or violation of any covenant or agreement of Buyer pursuant to this Agreement or any Ancillary Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to (and not in limitation of) the Buyer's rights to indemnification under <u>Section 8.1</u>, any Assumed Liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Fraud.

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**Section 8.3 <u>Time for Claims</u>.** No claim may be made or suit instituted seeking indemnification pursuant to <u>Section 8.1(a)</u> or <u>Section 8.2(a)</u> unless a written notice describing such claim in reasonable detail in light of the circumstances then known to the Indemnitee is provided to the Indemnitor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at any time prior to or on the one hundred twentieth (120th) day after the expiration of the applicable statute of limitations (taking into account any tolling periods and other extensions) in the case of any breach of, or inaccuracy in, the Seller Fundamental Representations, the Buyer Fundamental Representations or the representations and warranties set forth in <u>Section 3.9</u> (<u>Taxes.</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at any time prior to the 18-month anniversary of the Closing Date in the case of any breach of, or inaccuracy in, any other representation and warranty in this Agreement.

For the avoidance of doubt, claims for indemnification pursuant to <u>Section 8.1(b)</u>, <u>Section 8.1(c)</u>, <u>Section 8.2(b)</u> or <u>Section 8.2(c)</u> will not be subject to any of the limitations set forth in this <u>Section 8.3</u>.

**Section 8.4 <u>Monetary Thresholds and Limitations</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained herein, no Buyer Indemnitee will be entitled to indemnification or to recover from the Seller with respect to indemnification pursuant to <u>Section 8.1(a)</u> unless and until the Buyer Indemnitees have incurred Losses in excess of $50,000 in the aggregate (the "**Threshold Amount**"), after which the Buyer Indemnitees will be entitled to seek recovery for all Losses in excess of the Threshold Amount; <u>provided</u> that the limitations of this <u>Section 8.4(a)</u> will not apply to claims for indemnification pursuant to <u>Section 8.1(a)</u> for breach of, or inaccuracy in, any Seller Fundamental Representation or any representation or warranty in <u>Section 3.9</u> (<u>Taxes.</u>) or any claims for indemnification pursuant to Section 8.1(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to claims for indemnification pursuant to <u>Section 8.1(a)</u> or <u>8.2(a)</u> for breach of, or inaccuracy in, any representation or warranty contained in <u>ARTICLE III</u> or <u>ARTICLE IV</u>, the aggregate maximum liability of the Seller or the Buyer, respectively will be limited to $1,500,000; <u>provided</u>, that the limitation set forth in this <u>Section 8.4(b)</u> will not apply to claims for indemnification pursuant to <u>Section 8.1(a)</u> or <u>Section 8.2(a)</u> for breach of, or inaccuracy in, any Seller Fundamental Representation, any Buyer Fundamental Representation or any representation or warranty in <u>Section 3.9</u> (<u>Taxes.</u>), in respect of which the aggregate maximum liability of the Seller will be limited to the Purchase Price.

**Section 8.5 <u>Indemnification Procedures for Third Party Claims</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any claim or demand, or other circumstance or state of facts that could give rise to any claim or demand, for which an Indemnitor may be liable to an Indemnitee hereunder is asserted or sought to be collected, in each case, in writing, by a third party (each, a "**Third Party Claim**"), the Indemnitee will promptly notify the Indemnitor in writing of such Third Party Claim (each, a "**Notice of Claim**"); <u>provided</u>, <u>however</u>, that a failure by an Indemnitee to provide timely notice will not affect the rights or obligations of such Indemnitee other than if the Indemnitor will have been actually and materially prejudiced as a result of such failure. The Notice of Claim will specify in reasonable detail the basis for any anticipated Loss and the nature of the misrepresentation, breach of warranty, breach of covenant or claim to which each such item is related; <u>provided</u>, <u>however</u>, that a failure by an Indemnitee to include information that is incomplete or unknown will not affect the rights of the Indemnitee or the obligations of the Indemnitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Indemnitor will have the right, but not the obligation, to, within ten (10) Business Days after receipt of a Notice of Claim, assume the defense or prosecution of such Third Party Claim and any litigation resulting therefrom with counsel of its choice and at its sole cost and expense (a "**Third Party Defense**"); <u>provided</u>, that the Indemnitor will not be entitled to assume the defense of a Third Party Claim if (i) such Third Party Claim seeks an injunction or other equitable relief against any Indemnitee, (ii) an Indemnitee is advised by counsel that an actual or potential conflict exists between the Indemnitee and the Indemnitor in connection with the defense of the Third Party Claim, (iii) the Third Party Claim relates to or otherwise arises in connection with any criminal or regulatory enforcement action, investigation, suit or proceeding, or any proceeding relating to Taxes or (iv) settlement of, an adverse judgment with respect to, or conduct of the defense of the Third Party Claim by the Indemnitor is, in the good faith judgment of the Indemnitee, likely to be adverse to the Indemnitee's reputation or continuing business interests. If the Indemnitor assumes the Third Party Defense in accordance herewith, (i) the Indemnitee may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim but the Indemnitor will control the investigation, defense and settlement thereof, (ii) the Indemnitee will not file any papers or consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnitor (not to be unreasonably withheld, conditioned or delayed), and (iii) the Indemnitor will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnitee (not to be unreasonably withheld, delayed or conditioned). The Parties will reasonably cooperate in any such defense and give each other reasonable access to all information relevant thereto. Whether or not the Indemnitor has assumed the Third Party Defense, in the event that the Indemnitee consents to an entry of judgment or enters into a settlement with respect to such a Third Party Claim without the prior written consent of the Indemnitor (not to be unreasonably withheld, conditioned or delayed), then such judgment or settlement will not be dispositive of the amount of Losses indemnifiable hereunder by the Indemnitor and absent such consent the amount of Losses from such claim will be resolved in accordance with the procedures hereunder for a claim other than a Third Party Claim.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Indemnitor does not assume the Third Party Defense within ten (10) Business Days after receipt of a Notice of Claim or the Indemnitor is not entitled to assume the Third Party Defense pursuant to <u>Section 8.5(a)</u>, the Indemnitee will be entitled to assume the Third Party Defense upon delivery of notice to such effect to the Indemnitor; <u>provided</u> that the Indemnitor will have the right to participate in the Third Party Defense at its sole cost and expense, but the Indemnitee will control the investigation, defense and settlement thereof; <u>provided</u>, <u>further</u>, that in the event that the Indemnitee consents to an entry of judgment or enters into a settlement with respect to such a Third Party Claim without the prior written consent of the Indemnitor (not to be unreasonably withheld, conditioned or delayed), then such judgment or settlement will not be dispositive of the amount of Losses indemnifiable hereunder by the Indemnitor and absent such consent the amount of Losses from such claim will be resolved in accordance with the procedures hereunder for a claim other than a Third Party Claim.

**Section 8.6 <u>Procedure for Other Claims</u>**. An Indemnitee wishing to assert a claim for indemnification under this <u>ARTICLE VIII</u> that is not subject to <u>Section 8.5</u> shall deliver to the Indemnitor a prompt written notice (a "**Claim Notice**") which contains (a) a description of the amount (or if the amount is unknown, an estimate of the amount) (the "**Claimed Amount**") of any Losses incurred by the Indemnitee, (b) a statement that the Indemnitee has incurred Losses or anticipates that it will incur Losses for which such Indemnitee is entitled to indemnification under this <u>ARTICLE VIII</u>, (c) a statement that the Indemnitee is entitled to indemnification under this <u>ARTICLE VIII</u> and a reasonable explanation of the basis therefor (including the nature of the breach of representation or warranty, breach of covenant or agreement, or other matter to which each such claim is related), and (d) a demand for payment in the amount of such Losses, provided, however, that no delay on the part of the <u>Indemnitor</u> in notifying the Seller will relieve any indemnification obligation hereunder unless the <u>Indemnitor</u> is prejudiced thereby. Within thirty (30) days after delivery of a Claim Notice, the Indemnitor shall deliver to the Indemnitee a written response in which the Indemnitor shall: (i) agree that it is responsible for the claim under the Claim Notice and that the Indemnitee is entitled to receive all of the Claimed Amount (in which case such amount shall be paid to the Indemnitee in accordance with <u>Section 8.7</u> promptly upon delivery of such written response); <u>provided</u>, <u>however</u>, that payment of the Claimed Amount shall not be deemed full satisfaction of the claim if the Claimed Amount was an estimate of the amount of Losses incurred by the Indemnitee in connection therewith, or (ii) contest that the Indemnitee is entitled to receive the Claimed Amount in whole or in part. If the Indemnitor in its response contests (or is deemed to have contested) the payment of all or part of the Claimed Amount, the Indemnitor and the Indemnitee shall resolve such dispute in accordance with the provisions of this Agreement; <u>provided</u> that the uncontested part of the Claimed Amount, if any, shall be paid to the Indemnitee in accordance with <u>Section 8.7</u> promptly upon delivery of such written response.

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**Section 8.7 <u>Payment of Losses</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Where a Final Determination has been made that a Buyer Indemnitee is entitled to indemnification under this <u>ARTICLE VIII</u>, the Buyer Indemnitee's right to receive payment shall be paid (i) first, by withholding from and setting off against any payments that are or may become payable by the Buyer either at the time of such setoff or at any future time to the Seller pursuant to this Agreement or any Ancillary Document, and (ii) to the extent such amount is insufficient to cover any such Losses, by the Seller's payment to the applicable Buyer Indemnitee the amount of any Losses for which the Seller is liable hereunder, in immediately available funds, to the account(s) specified by the applicable Buyer Indemnitee no later than five (5) Business Days following such Final Determination of such Losses and the Seller's liability therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Where a Final Determination has been made that a Seller Indemnitee is entitled to indemnification from Buyer under this <u>ARTICLE VIII</u>, the Buyer shall pay to the applicable Seller Indemnitee the amount of any Losses for which it is liable hereunder, in immediately available funds, to the account(s) specified by the applicable Seller Indemnitee no later than five (5) Business Days following such Final Determination of such Losses and the Buyer's liability therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A "**Final Determination**" shall exist when (i) the parties to the dispute have reached an agreement in writing, (ii) a court of competent jurisdiction shall have entered a final and non-appealable order or judgment, or (iii) an arbitration or like panel shall have rendered a final non-appealable determination with respect to disputes the Parties have agreed to submit thereto.

**Section 8.8 <u>Characterization of Indemnification Payments</u>**. Except as otherwise required by applicable law, the Parties will treat any payment made pursuant to <u>Section 2.11</u> and this <u>ARTICLE VIII</u> as an adjustment to the Purchase Price for all Tax purposes.

**Section 8.9 <u>Insurance Offset</u>.** All indemnification payments required pursuant to this Agreement shall be made net of all insurance benefits actually received by the applicable Indemnitee. In the event that any claim for indemnification hereunder is, or may be, the subject of any insurance coverage or other right of indemnification or contribution from any third person (other than an Affiliate of the Indemnitee), the Indemnitee expressly agrees that it shall promptly notify the applicable insurance carrier, and shall also promptly notify any potential third party indemnitor or contributor which may be liable for any portion of such Losses or claims. The Indemnitee agrees to pursue, at the Indemnitee's sole cost and expense, such claims diligently and to reasonably cooperate with each applicable insurance carrier to mitigate its Loss; <u>provided</u>, <u>however</u>, in no event shall an Indemnitee be obligated to make any claim under any insurance coverage or otherwise exercise any other right of indemnification or contribution from any third party prior to making a claim for indemnification under this <u>ARTICLE VIII</u>. In the event insurance benefits are actually received by the Indemnitee with respect to any Losses, such Losses shall not be considered Losses for purposes of this Agreement, and, to the extent the Indemnitor has made a payment indemnifying the Indemnitee for such Losses, the Indemnitee shall promptly pay to the Indemnitor the insurance benefits received by it, not to exceed the amount of the Indemnitor's payment to the Indemnitee.

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**Section 8.10 <u>Exclusive Remedy</u>**. The Buyer and the Seller acknowledge and agree that, from and after the Closing, their sole and exclusive remedy with respect to any and all Losses or claims relating to a breach of representation, warranty or covenant under this Agreement, regardless of the legal theory under which such liability or obligation may be sought to be imposed, whether sounding in contract or tort, or whether at law or in equity, or otherwise, shall be indemnification pursuant to the provisions set forth in this <u>ARTICLE VIII</u> and they shall have no other remedy or recourse with respect to any of the foregoing other than (a) injunctive or other equitable relief to specifically enforce the provisions of this Agreement and (b) any action based on Fraud.

**ARTICLE IX**<br> **MISCELLANEOUS**

**Section 9.1 <u>Notices</u>**. Any notice, request, demand, waiver, consent, approval or other communication that is required or permitted hereunder will be in writing and will be deemed given: (a) on the date established by the sender as having been delivered personally, (b) on the date delivered by a private courier as established by the sender by evidence obtained from the courier, (c) if sent by e-mail, (i) on a Business Day before 5:00 p.m. in the time zone of the receiving Party, when transmitted and the sender has received confirmation of receipt by the recipient, and (ii) on a day other than a Business Day or after 5:00 p.m. in the time zone of the receiving Party, and the sender has received confirmation of receipt by the recipient, on the following Business Day; or (d) on the fifth Business Day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications, to be valid, must be addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Buyer, to:

Wisconsin Heavy Fabrication, LLC

C/o IES Infrastructure Solutions

13131 Dairy Ashford Road, 5<sup>th</sup> Floor

Sugar Land, Texas 77478

Attention: General Counsel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Seller, to:

Broadwind Heavy Fabrications, Inc.

c/o Broadwind, Inc.

3240 S. Central Ave.

Cicero, IL 60804

Attention: Eric Blashford, President and CEO

Email: Eric.Blashford@bwen.com

with a copy to (which shall not constitute notice):

Bodman PLC

1901 St. Antoine Street

6<sup>th</sup> Floor at Ford Field

Detroit, MI 48226

Attn: Joseph J. Shannon

Email: jshannon@bodmanlaw.com

or to such other address or to the attention of such person or entity as the recipient party has specified by prior written notice pursuant to this <u>Section 9.1</u> to the sending party (or in the case of counsel, to such other readily ascertainable business address as such counsel may hereafter maintain). If more than one method for sending notice as set forth above is used, the earliest notice date established as set forth above will control.

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**Section 9.2 <u>Severability</u>**. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law (a) such provision will be fully severable, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance here from and (d) in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms of such illegal, invalid or unenforceable provision as may be possible.

**Section 9.3 <u>Counterparts</u>**. This Agreement may be executed in counterparts, and any Party hereto may execute any such counterpart, each of which when executed and delivered will be deemed to be an original and all of which counterparts taken together will constitute but one and the same instrument**.** This Agreement will become effective when each Party hereto will have received a counterpart hereof signed by the other Party hereto. The Parties agree that the delivery of this Agreement, and any other agreements and documents at the Closing, may be effected by means of an exchange of facsimile or electronically transmitted signatures.

**Section 9.4 <u>Entire Agreement; No Third Party Beneficiaries</u>**. This Agreement, the Confidentiality Agreement, the Disclosure Schedules, other Schedules, Exhibits, Appendices and the other documents, instruments and agreements specifically referred to herein or therein or delivered pursuant hereto or thereto set forth the entire understanding of the Parties hereto with respect to the transactions contemplated by this Agreement. All Schedules, Exhibits and Appendices referred to herein are intended to be and hereby are specifically made a part of this Agreement. Any and all previous agreements and understandings between or among the Parties regarding the subject matter hereof, whether written or oral, are superseded by this Agreement, except for the Nondisclosure Agreement, dated May 13, 2024, by and between the Seller and the Buyer (the "**Confidentiality Agreement**"). This Agreement will not confer any rights or remedies upon any person or entity other than the Parties hereto and their respective successors and permitted assigns, except for the Buyer Indemnitees and the Seller Indemnitees, who will be third party beneficiaries of <u>ARTICLE VIII</u>.

**Section 9.5 <u>Governing Law</u>**. This Agreement and the exhibits and schedules hereto will be governed by and interpreted and enforced in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of laws rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

**Section 9.6 <u>Dispute Resolution; Consent to Jurisdiction; Waiver of Jury Trial</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Negotiation</u>. In the event of any dispute or disagreement between any of the parties hereto as to the interpretation of any provision of this Agreement or any agreement incorporated herein, the performance of obligations hereunder or thereunder, or any other disputed matter relating hereto or thereto ("**Dispute**"), such matter, upon the written request of any party hereto, shall be referred to the chief financial officers of each party or their respective designees. The chief financial officers or their respective designees shall promptly meet in good faith to resolve the Dispute. If the chief financial officers or their designees do not agree upon a decision within thirty (30) calendar days after the reference of the matter to them, any party hereto shall be free to exercise the remedies available to it under Section 9.6(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent and Waiver</u>. Each Party hereto irrevocably and unconditionally submits to the exclusive jurisdiction of any state or federal court located within the State of Delaware for the purposes of any suit, action or other proceeding arising out of or in connection with this Agreement or any transaction contemplated hereby or thereby or the actions of the parties in the negotiation, administration, performance and enforcement hereof and thereof, and agrees to commence any such action, suit or proceeding only in such courts. Each Party further agrees that service of any process, summons, notice or document by United States registered mail to such Party's respective address set forth herein will be effective service of process for any such action, suit or proceeding. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby or thereby in such courts, and hereby irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. The Parties hereto agree that a final judgment in any such action, suit or proceeding will be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable law. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF OR THEREOF.

**Section 9.7 <u>Assignment</u>**. Neither this Agreement nor any of the rights or obligations hereunder will be assigned by any of the Parties hereto without the prior written consent of the other Parties; provided that the Buyer may assign this Agreement to an Affiliate without the prior written consent of Seller. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns. Any attempted assignment in violation of the terms of this <u>Section 9.7</u> will be null and void, ab initio. Notwithstanding anything to the contrary contained in this <u>Section 9.7</u>, in the event Buyer assigns this Agreement to an Affiliate without the prior written consent of Seller, such assignment shall not relieve Buyer of its obligations under this Agreement and this Agreement shall remain enforceable by Seller against Buyer in all respects as if such assignment had not occurred.

**Section 9.8 <u>Headings</u>.** All headings contained in this Agreement are for convenience of reference only, do not form a part of this Agreement and will not affect in any way the meaning or interpretation of this Agreement**.**

**Section 9.9 <u>Amendments and Waivers</u>**. This Agreement may not be amended, supplemented or modified except by an instrument in writing signed on behalf of the Buyer and by the Seller. Any term or condition of this Agreement may be waived at any time in writing by the Party against whom such waiver is sought to be entered. No waiver by any Party of any term or condition of this Agreement, in any one or more instances, will be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion.

**Section 9.10 <u>Expenses</u>**. Except as otherwise set forth in this Agreement, all legal, accounting, investment banking, and other costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses.

**[Signature Page Follows]**

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written.

**SELLER:** 

**Broadwind Heavy Fabrications, Inc.,** 

a Wisconsin corporation

By: <u>/s/ Eric B. Blashford</u><u> </u><u> </u><br> Name: Eric B. Blashford<br> Title: President and CEO

**Wisconsin Heavy Fabrication, LLC**

By: <u>/s/ Tracy McLauchlin</u><u> </u><u> </u> <br> Name: Tracy McLauchlin<br> Title: Vice President, CFO & Treasurer

## Exhibit 10.4

**EXHIBIT 10.4**

**SUBLEASE AGREEMENT**

This Sublease Agreement ("**Sublease**"), dated as of June 4, 2025 (the "**Effective Date**"), is entered into between Wisconsin Heavy Fabrication, LLC a Delaware limited liability company ("**Sublandlord**") and Broadwind Heavy Fabrications, Inc., a Wisconsin corporation ("**Subtenant**" and, together with Sublandlord, collectively referred herein as the "**Parties**" or individually as a "**Party**").

**RECITALS**

**WHEREAS**, Sublandlord is the tenant under that certain Industrial Lease Agreement dated of even date herewith (the "**Prime Lease**" or "**Lease**") by and between City Centre, L.L.C., a Wisconsin limited liability company ("**Prime Landlord**") and Sublandlord, pursuant to which Prime Landlord leases to Sublandlord certain "**Premises**" (as more particularly described in the Prime Lease and located in the City of Manitowoc, Wisconsin); and

**WHEREAS,** the Sublandlord and Subtenant have entered into an Asset Purchase Agreement of even date herewith (the "**Asset Purchase Agreement**"); and

**WHEREAS**, Sublandlord desires to sublease all or a portion of the Premises to Subtenant, and Subtenant desires to sublease all or a portion of the Premises from Sublandlord, in accordance with the terms and conditions of this Sublease.

**NOW, THEREFORE**, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Demise</u>.

Sublandlord hereby leases to Subtenant, and Subtenant hereby leases from Sublandlord, the areas of the Premises marked on <u>Exhibit A</u> hereto ("**Subleased Premises**"). In connection with the use of the Subleased Premises, subject to all terms and conditions of the Prime Lease and subject to any rules of the Prime Lease, Subtenant shall also have the non-exclusive right to use the common areas at the Premises that Sublandlord has the right to use under the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of this Sublease ("**Term**") shall commence on the date hereof ("**Sublease Commencement Date**") and shall expire at the earlier of (i) midnight on August 31, 2025, (ii) the date that Subtenant has fully vacated the Premises, and (iii) the termination of the Asset Purchase Agreement ("**Sublease Expiration Date**"), unless sooner terminated or cancelled in accordance with the terms and conditions of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subtenant shall not be entitled to exercise any options to extend or renew the term of the Prime Lease. These options are expressly retained by Sublandlord and may be exercised or waived by Sublandlord in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If for any reason the term of the Lease is terminated prior to the Sublease Expiration Date, this Sublease shall terminate on the date of such termination and Sublandlord shall not be liable to Subtenant for such termination. Notwithstanding the foregoing, Sublandlord (i) represents and warrants to Subtenant that the term of the Lease is not scheduled to expire prior to the Sublease Expiration Date, and (ii) covenants to Subtenant that Sublandlord shall not take or permit any action to cause the Lease to be terminated prior to the Sublease Expiration Date without the prior written consent of Subtenant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Permitted Use.</u>

Subtenant shall use and occupy the Subleased Premises solely in accordance with, and as permitted under, the terms of the Lease and for no other purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Payment of Base Rent and CAM Charges.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Throughout the Term of this Sublease, Subtenant shall pay to Sublandlord fixed base rent ("**Base Rent**") at the rate of Eighty-Two Thousand Two Hundred Twenty-Seven and 00/100 Dollars ($82,227.00) per month. Subtenant shall pay to Sublandlord the first monthly installment of Base Rent within ten (10) days of the execution of this Sublease and shall pay all other monthly installments of Base Rent on or before the first day of each month the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Base Rent shall be due and payable by ACH or wire transaction on the first (1<sup>st</sup>) day of each and every month, without demand therefor unless otherwise designated by Sublandlord and without any deduction, offset, abatement, counterclaim, or defense, except as otherwise permitted herein. The monthly installments of Base Rent payable on account of any partial calendar month during the Term of this Sublease, if any, shall be prorated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the Term of this Sublease Sublandlord and Subtenant may agree that Subtenant no longer needs the full amount of the Subleased Premises, and if the size of the Subleased Premises is reduced, the Base Rent shall be reduced proportionally as mutually agreed by Sublandlord and Subtenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If during the Term of this Sublease, Sublandlord wishes to engage Subtenant to perform certain work on behalf of Sublandlord in anticipation of the Closing (as defined in the Asset Purchase Agreement), the Parties shall mutually agree in writing to the scope of such work and amounts payable therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition, throughout the Term of this Sublease, Subtenant shall be responsible for any CAM Charges and for Tenant's Share of Peninsula Real Estate Taxes (collectively, "Additional Charges") with respect to the Subleased Premises, and shall promptly reimburse Sublandlord following receipt of notice of Additional Charges being imposed on Sublandlord by Prime Landlord. For the avoidance of doubt, the Additional Charges shall be pro-rated between Subtenant, on the one hand, and Sublandlord or any other subtenant(s) of Sublandlord, on the other, for the Premises by multiplying the applicable Additional Charges by a percentage calculated by dividing the total number of rentable square feet which Subtenant occupies on the first (1<sup>st</sup>) floor of all building(s) within the Subleased Premises by the total number of rentable square feet on the first (1<sup>st</sup>) floor of all building(s) within the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event of Sublandlord's failure to pay the Prime Landlord any amounts due under the Prime Lease (including, without limitation, Base Rent or Additional Charges), at Prime Landlord's written request, Subtenant shall pay all amounts due hereunder to Prime Landlord until such time as Sublandlord becomes compliant with the terms of the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Intentionally Deleted</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Incorporation of Lease by Reference.</u>

The terms, covenants, and conditions of the Lease are incorporated herein by reference, except to the extent they are expressly modified by the provisions of this Sublease. Every term, covenant, and condition of the Lease binding on or inuring to the benefit of Prime Landlord shall, in respect of this Sublease, be binding on or inure to the benefit of Sublandlord as it pertains only to the Subleased Premises during the Term and every term, covenant, and condition of the Lease binding on or inuring to the benefit of Sublandlord shall, in respect of this Sublease, be binding on and inure to the benefit of Subtenant as it pertains only to the Subleased Premises during the Term. Whenever the term "**Lessor**" or "**Landlord**" appears in the Lease, the word "**Sublandlord**" shall be substituted therefore; whenever the term "**Lessee**" or "**Tenant**" appears in the Lease, the word "**Subtenant**" shall be substituted therefore; and whenever the word "**Premises**" appears in the Lease, the word "**Subleased Premises**" shall be substituted therefore. Notwithstanding anything herein to the contrary, any provisions of the Lease pertaining to Base Rent, additional rent or tenant improvement obligations shall not be applicable as between Subtenant and Sublandlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Subordination to Lease</u>.

This Sublease is subject and subordinate to the provisions set forth in the Prime Lease, a redacted copy of which is attached hereto as <u>Exhibit B</u> and made a part of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Representations of Sublandlord</u>.

Sublandlord represents and warrants the following is true and correct as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Sublandlord is the tenant under the Lease and has the capacity to enter into this Sublease with Subtenant, subject to Prime Landlord's consent, which is evidenced by Prime Landlord's executed acknowledgment herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Lease attached hereto as <u>Exhibit B</u> is a true, correct, and complete copy of the Lease, is in full force and effect, and has not been further modified, amended, or supplemented except as expressly set out herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Sublandlord has not received any notice, and has no actual knowledge, of any default by Sublandlord under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>AS-IS Condition</u>.

Subtenant accepts the Subleased Premises in its current, "as-is" condition. Sublandlord shall have no obligation to furnish or supply any work, services, furniture, fixtures, equipment, or decorations. Notwithstanding the forgoing, Sublandlord shall allow Subtenant to utilize all furniture, fixtures, and equipment ("**FFE**") currently located on the Subleased Premises at no cost to Subtenant. On or before the Sublease Expiration Date or earlier termination or expiration of this Sublease, Subtenant shall surrender the Subleased Premises in substantially the same condition existing as of the Sublease Commencement Date, ordinary wear and tear and the obligations of Prime Landlord and Sublandlord excepted. The obligations of Subtenant hereunder shall survive the expiration or earlier termination of this Sublease for a period of three (3) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Performance by Sublandlord</u>.

Notwithstanding any other provision of this Sublease, Sublandlord shall have no obligation: (a) to furnish or provide, or cause to be furnished or provided, any repairs, restoration, alterations, or other work, or electricity, heating, ventilation, air-conditioning, water, elevator, cleaning, or other utilities or services; or (b) to comply with or perform or, except as expressly provided in this Sublease, to cause the compliance with or performance of, any of the terms and conditions required to be performed by Prime Landlord under the terms of the Lease. Subtenant hereby agrees that Prime Landlord is solely responsible for the performance of the foregoing obligations, but only to the extent set forth in the Prime Lease. Notwithstanding the foregoing, on the written request of Subtenant, Sublandlord shall make a written demand on Prime Landlord to perform its obligations under the Lease with respect to the Subleased Premises if Prime Landlord fails to perform same within the time frame and in the manner required under the Lease; provided, however, Subtenant shall not be required to bring any action against the Prime Landlord to enforce its obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>No Privity of Estate; No Privity of Contract</u>.

Nothing in this Sublease shall be construed to create privity of estate or privity of contract between Subtenant and Prime Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Breach of Lease</u>.

Subtenant shall not do or permit to be done any act or thing, or omit to do anything, which may constitute a breach or violation of any term, covenant, or condition of the Lease, notwithstanding such act, thing, or omission is permitted under the terms of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Subtenant Defaults</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Subtenant fails to cure a default under this Sublease within any applicable grace or cure period contained in the Lease (as such applicable grace or cure period is modified by Section 6 herein), Sublandlord, after fifteen (15) days' notice to Subtenant, shall have the right, but not the obligation, to seek to remedy any such default on the behalf of, and at the expense of, Subtenant, provided, however, that in the case of: (i) a life safety or property related emergency; or (ii) a default which must be cured within a time frame set out in the Lease which does not allow sufficient time for prior notice to be given to Subtenant, Sublandlord may remedy any such default after giving to Subtenant only such notice as is commercially reasonable given the circumstances. Any reasonable cost and expense (including, without limitation, reasonable attorneys' fees and expenses) so incurred by Sublandlord shall be due and payable by Subtenant to Sublandlord within fifteen (15) days after notice from Sublandlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Subtenant fails to pay any installment of Base Rent or Additional Charges within five (5) days after the due date of such payment, Subtenant shall pay to Sublandlord a "**late charge**" of five percent (5%) of the amount then overdue for the purposes of defraying the expense of handling such delinquent payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Subtenant fails to pay any installment of Base Rent or Additional Charges within fifteen (15) days from the due date of such payment, in addition to the payment of the late charge set out immediately above, Subtenant shall also pay to Sublandlord interest at the Default Rate (hereinafter defined) from the due date of such payment to the date payment is made. "**Default Rate**" shall mean a rate *per annum* equal to the lesser of: (i) two percent (2%) in excess of the prime rate of Wall Street Journal on the due date of such Base Rent or Additional Charges; and (ii) the highest rate of interest permitted by applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Consents</u>.

Whenever the consent or approval of Sublandlord is required, Subtenant shall also be obligated to obtain the written consent or approval of Prime Landlord, if required under the terms of the Lease. Sublandlord shall promptly make such consent request on behalf of Subtenant and Subtenant shall promptly provide any information or documentation that Prime Landlord may request. Subtenant shall reimburse Sublandlord, not later than fifteen (15) days after written demand by Sublandlord, for any fees and disbursements of attorneys, architects, engineers, or others charged by Prime Landlord in connection with any consent or approval necessitated by a request from Subtenant. Sublandlord shall have no liability of any kind to Subtenant for Prime Landlord's failure to give its consent or approval.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Prime Landlord Consent to Sublease</u>.

Prime Landlord hereby consents to this Sublease and confirms the effectiveness of that certain Lease Termination and Reinstatement Agreement dated as of the date hereof by and between Prime Landlord and Subtenant for, subject to the reinstatement terms thereof, the termination of (i) that certain Amended and Restated Industrial Lease Agreement – Buildings 101, 102 and 103 dated as of December 31, 2024; (ii) that certain Amended and Restated Industrial Lease Agreement – Buildings 104, 106, 120, 125, 128, 129, 130, 131, 143, 144 dated as of December 31, 2024; and that certain Amended and Restated Industrial Lease Agreement – Fabrication Building dated as of December 31, 2024..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Assignment or Subletting</u>.

Subtenant shall not sublet all or any portion of the Subleased Premises or assign, encumber, mortgage, pledge, or otherwise transfer this Sublease (by operation of law or otherwise) or any interest therein, without the prior written consent of: (a) Sublandlord, which consent shall not be unreasonably withheld or may be withheld; and (b) Prime Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Release</u>.

Subtenant shall cause its insurance carriers to include any clauses or endorsements in favor of Sublandlord, Prime Landlord, and any additional parties, which Sublandlord is required to provide under the provisions of the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Notices</u>.

All notices and other communications required or permitted under this Sublease shall be given in the same manner as in the Prime Lease. Notices shall be addressed to the addresses set out below:

---

| |
|:---|
| To Subtenant at: |
| To Sublandlord at:<br> Wisconsin Heavy Fabrication, LLC<br> c/o IES Infrastructure Solutions, LLC<br> 13131 Dairy Ashford Road, 5<sup>th</sup> Floor<br> Sugar Land, Texas 77478 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Brokers</u>.

Sublandlord and Subtenant each represent to the other that it has not dealt with any broker in connection with this Sublease and the transactions contemplated hereby. Sublandlord and Subtenant each indemnify and hold harmless the other from and against all claims, liabilities, damages, costs, and expenses (including without limitation reasonable attorneys' fees and other charges) arising out of any claim, demand, or proceeding for commissions, fees, reimbursement for expenses, or other compensation by any person or entity who shall claim to have dealt with the indemnifying party in connection with the Sublease. This Section 19 shall survive the expiration or earlier termination of this Sublease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendments and Modifications</u>.

This Sublease may not be modified or amended in any manner other than by a written agreement signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Successors and Assigns</u>.

The covenants and agreements contained in this Sublease shall bind and inure to the benefit of Sublandlord and Subtenant and their respective permitted successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Counterparts</u>.

This Sublease may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original for all purposes, and all such counterparts shall together constitute but one and the same instrument. A signed copy of this Sublease delivered by either facsimile, email, or any other form of electronic transmission (e.g. DocuSign) shall be deemed to have the same legal effect as delivery of an original signed copy of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Defined Terms</u>.

All capitalized terms not otherwise defined in this Sublease shall have the definitions contained in the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Choice of Law</u>.

This Sublease shall be governed by, and construed in accordance with, the laws of Wisconsin, without regard to conflict of law rules.

------

**IN WITNESS WHEREOF**, the parties have caused this Sublease to be executed as of the Effective Date.

---

| | |
|:---|:---|
| **SUBLANDLORD**: | **SUBLANDLORD**: |
| Wisconsin Heavy Fabrication, LLC | Wisconsin Heavy Fabrication, LLC |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Tracy McLauchlin |
| Name: Tracy McLauchlin | Name: Tracy McLauchlin |
| Title: Vice President, CFO & Treasurer | Title: Vice President, CFO & Treasurer |
| **SUBTENANT**: | **SUBTENANT**: |
| Broadwind Heavy Fabrications, Inc., | Broadwind Heavy Fabrications, Inc., |
| a Delaware corporation | a Delaware corporation |
| By: | /s/ Eric B. Blashford |
| Name: Eric B. Blashford | Name: Eric B. Blashford |
| Title: Authorized Representative | Title: Authorized Representative |

---

---

| | |
|:---|:---|
| Prime Landlord joins below solely for purposes of consenting to the sublease of the Premises from Sublandlord to Subtenant. Nothing contained herein shall be interpreted to or have the effect of modifying the terms or conditions of the Prime Lease in any way. | Prime Landlord joins below solely for purposes of consenting to the sublease of the Premises from Sublandlord to Subtenant. Nothing contained herein shall be interpreted to or have the effect of modifying the terms or conditions of the Prime Lease in any way. |
| **PRIME LANDLORD**: | **PRIME LANDLORD**: |
| City Centre, L.L.C., | City Centre, L.L.C., |
| a Wisconsin limited liability company | a Wisconsin limited liability company |
| By | /s/ Peter C. Allie |
| Name: Peter C. Allie | Name: Peter C. Allie |
| Title: Agent | Title: Agent |

---

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION**

I, Eric B. Blashford, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Broadwind, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d- 15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| August 12, 2025 |  |
|  | /s/ Eric B. Blashford |
|  | Eric B. Blashford |
|  | President and Chief Executive Officer |
|  | *(Principal Executive Officer)* |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION**

I, Thomas A. Ciccone, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Broadwind, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d- 15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| August 12, 2025 |  |
|  | /s/ Thomas A. Ciccone |
|  | Thomas A. Ciccone |
|  | Vice President, Chief Financial Officer |
|  | *(Principal Financial Officer)* |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report on Form 10-Q of Broadwind, Inc. (the "Company") for the period ended June 30, 2025, as filed with the Securities and Exchange Commission (the "Commission") on the date hereof (the "Report"), I, Eric B. Blashford, President and Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 ("Section 906"), that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| August 12, 2025 |  |
|  | /s/ Eric B. Blashford |
|  | Eric B. Blashford |
|  | President and Chief Executive Officer |
|  | *(Principal Executive Officer)* |

---

This certification accompanies the Report pursuant to Section 906 and shall not be deemed filed by the Company for purposes of Section 18 of the Exchange Act.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Commission or its staff upon request.

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report on Form 10-Q of Broadwind , Inc. (the "Company") for the period ended June 30, 2025, as filed with the Securities and Exchange Commission (the "Commission") on the date hereof (the "Report"), I, Thomas A. Ciccone, Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 ("Section 906"), that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; (the "Exchange Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| August 12, 2025 |  |
|  | /s/ Thomas A. Ciccone |
|  | Thomas A. Ciccone |
|  | Vice President, Chief Financial Officer |
|  | *(Principal Financial Officer)* |

---

This certification accompanies the Report pursuant to Section 906 and shall not be deemed filed by the Company for purposes of Section 18 of the Exchange Act.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Commission or its staff upon request.