EDGAR 10-K Filing

Company CIK: 89140
Filing Year: 2025
Filename: 89140_10-K_2025_0001437749-25-007993.json

---

ITEM 1. BUSINESS
Item 1. Business
Description of the Business
We design and manufacture high-performance servo-control valves, including torque motors, hydraulic, and pneumatic valves ("servo-control business"). Our products are sold to commercial aerospace, government, medical, and industrial markets.
Additional information describing the business is provided in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this report.
Until 2023, we operated historically under two business segments: Advanced Technology Group (“ATG”) and Consumer Products Group (“CPG”), which were separate operating units that offered different products and services. The CPG business segment, which included the design, manufacturing, and marketing of a variety of cutlery products for use by consumers and government agencies, was divested during 2023 and disclosed as a discontinued operation in the Company’s annual report on Form 10-K for the years ended December 31, 2024, and 2023. CPG is also reflected as a discontinued operation in this annual report. With only one business segment, reference to ATG is no longer used to describe the ongoing, servo-control business.
The sale of the Company’s products to primarily large commercial aerospace customers does result in a dependence on a small number of major customers. See Note 11, Customer and Supplier Concentration, for further information.
Sales, Marketing, and Distribution
We have embarked on a rebranding initiative, launching a new website and refining our branding strategy to better communicate our product and service capabilities to new and existing customers. These developments are pivotal in aligning our organizational structure and market presence with our long-term vision and the dynamic demands of the aerospace and defense sectors, as well as our targeted expansion into the aftermarket (Repair & Overhaul), energy and industrial markets.
Our products are marketed and sold throughout the United States and in select foreign markets. These products are sold to commercial aviation manufacturers, defense contractors, and government subcontractors.
Servotronics holds long-term contracts with prime defense contractors of the United States Government for military programs and original equipment manufacturers for commercial programs. These contracts are subject to termination at the convenience of the customer. If such termination occurs, we would generally be entitled to receive payment for our costs and profits on work done before termination. Throughout the history of our business, less than 1% of our contracts have been terminated for convenience.
Competition
We believe the critical items of competition in our markets are product quality, reliability, design, engineering capabilities, product development, conformity to customer specifications, timely delivery, and sales support. We compete effectively in the servo valve market as we provide significant value to our customers by developing customized solutions for their specific needs.
Materials & Supplies
Materials, supplies, and components are purchased from many suppliers; however, the loss of a significant supplier could have a material effect on our operations in the short term. This report provides additional information describing supplier risk in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 11 in the Consolidated Financial Statements.
Intellectual Properties
We recognize the critical importance of intellectual property (IP) to our business operations and overall value proposition. Our IP portfolio comprises trademarks, copyrights, and trade secrets encompassing innovative technologies, designs, processes, and branding assets integral to our products and services. These IP assets serve as key differentiators in the marketplace, providing us with competitive advantages, barriers to entry, and opportunities for strategic partnerships. By effectively safeguarding and leveraging our intellectual property assets, we aim to sustain our competitive position, drive innovation, and create long-term value for our shareholders.
Research and Development Activities
We continue to make considerable investments in research and development activities, demonstrating our commitment to promoting innovation and continuous improvement throughout our operations and with our customers. By prioritizing research and development initiatives, we aim to drive sustainable long-term growth, strengthen our market position, and provide greater value to our stakeholders over the long term.
People and Values
Our Company's culture is built on strong values. We prioritize respect for all and foster an inclusive workplace where every staff member can thrive and showcase their full potential. Innovation and personal growth are encouraged among employees.
The dedication and hard work of our employees form the backbone of our operations. As a quality, technology and research driven company, attracting and retaining the right team of talented individuals is essential to achieving our long-term strategic goals. As of December 31, 2024, our team comprised 262 individuals, with 254 as full-time employees, 1 part-time, 3 temporary, and 4 subcontractors across our two New York locations. About 88% actively contribute to production, engineering, inspection, packaging, or shipping tasks. Each member's commitment and expertise are deeply appreciated, and none are bound by a collective bargaining agreement, reflecting our collaborative and supportive work environment.
Employee engagement and retention are key priorities. We actively seek feedback through focus groups and strategy sessions, fostering a culture of collaboration and innovation. Personal and professional growth is encouraged at all levels, and our leadership program focuses on developing current and future leaders, ensuring they create an inspiring and motivating workplace for all. We are pleased that our people strategies have resulted in employee retention improving from 60% in 2022 to nearly 90% in 2024.
Corporate Responsibility
Our values lay the foundation for our growth as a corporation. We conduct our business in compliance with all laws and regulations, emphasizing ethics and integrity. We file annual, quarterly, and current reports, proxy statements, and other information with the U.S. Securities and Exchange Commission. Additionally, we maintain an anonymous ethics hotline for employees to report any concerns they have about business behavior.
Disclosure Regarding Forward-Looking Statements
The information included or incorporated by reference in this report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “project,” “believe,” “plan,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve numerous risks and uncertainties which may cause the actual results of the Company to be materially different from future results expressed or implied by such forward-looking statements. There are a number of factors that will influence our future operations, including: uncertainties in today’s global economy, including political risks and adverse changes in legal and regulatory environments; the ability to implement our corporate strategies; the state of the aerospace and defense industries; the introduction of new technologies and the impact of competitive products; the ability to sustain, manage or forecast our growth and product acceptance to accurately align capacity with demand; risks related to constraints and disruptions in the global supply chain and labor markets; the demand for and market acceptance of new or existing aircraft which contain our products; risks related to our concentration of revenue among a relatively small number of customers; the availability of financing and changes in interest rates; the outcome of pending and potential litigation; our ability to attract and retain key executives and employees; and the additional risks discussed elsewhere in this report and in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.

---

ITEM 1A. RISK FACTORS
Item 1A. Risk Factors
Servotronics is a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and is not required to provide the information required under this item.

---

ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments
None.

---

ITEM 2. PROPERTIES
Item 2. Properties
Our corporate headquarters is in Elma, New York, in a facility we own encompassing approximately 83,000 square feet used for manufacturing activities as well as office space for our sales, marketing, engineering, and administrative personnel. The Company also owns a building in Franklinville, New York, of approximately 92,000 square feet, and used primarily by the CPG business segment prior to its divestiture in 2023. This building was listed for sale with a commercial broker in 2024. See also Note 2, Discontinued Operation and Assets and Liabilities Related to Discontinued Operation, for further information. Approximately 10% of the Franklinville facility's square footage continues to be used for manufacturing of our servo-control business.
We believe that our properties are in good condition, are well maintained, and are suitable and adequate to carry on our ongoing, servo-control business.

---

ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings
See Note 9, Commitments and Contingencies, for information on legal proceedings. There are no other legal proceedings currently pending by or against us other than ordinary routine litigation incidental to the business which is not expected to have a material adverse effect on the business or earnings of the Company that are not disclosed.

---

ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures
Not applicable.
PART II

---

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
(a)
Market Information:
Our common stock is listed on the NYSE American stock exchange and trades under the ticker symbol SVT.
(b)
Approximate Number of Holders of Common Stock, as of February 19, 2025
Title of Class
Appropriate number of record holders
Common Stock, $.20 par value per share
(c)
Dividends on Common Stock
We believe in creating long-term value for our shareholders by continually investing in our business, utilizing capital expenditures and exploring new market opportunities. Additionally, we remain committed to identifying strategic acquisitions and returning capital to our shareholders. No cash dividends were paid in the year ended December 31, 2024, and we have no plans to do so in the immediate future.
(d)
Company Purchases of Company’s Equity Securities
Total Number of Shares
Maximum Number of
Number of
Purchased as Part of
Shares that May Yet Be
Shares Purchased
Average Price
Publicly Announced
Purchased Under the
Period
(1)
Paid per Share
Plans or Programs
Plans or Programs
10/01/24 to 10/31/24
1,820
13.02
-
-
11/01/24 to 11/30/24
12.90
-
-
12/01/24 to 12/31/24
10.72
-
-
Total
3,243
12.50
-
-
(1)
As permitted under the Company’s equity compensation plan, these shares were withheld by the Company to satisfy tax withholding obligations for employees in connection with the vesting of stock. Shares withheld for tax withholding obligations do not affect the total number of shares available for repurchase under any approved common stock repurchase plan. As of December 31, 2024, the Company did not have an authorized stock repurchase plan in place.

---

ITEM 6. SELECTED FINANCIAL DATA
Item 6. [Reserved]

---

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. 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 together with our consolidated financial statements and the related notes appearing elsewhere in this report.
The discussion and analysis contain forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements due to many known and unknown risks and uncertainties described elsewhere in this report.
Business Overview
We are a strategic partner in the aerospace industry, with our servo-control valves playing a key role in supporting manufacturing of commercial airplanes, including narrowbody and widebody aircraft and business jets. We have long-term customer contracts resulting from being a trusted partner in safety-critical, high-temperature, and high-vibration environments. Our products are sold into the commercial aerospace, government, medical, and industrial markets.
As stated in Item 1 and disclosed in the accompanying Consolidated Financial Statements, we executed an Asset Purchase Agreement (APA) with a third party in 2023 to sell certain assets of The Ontario Knife Company (“OKC”), wind-down the OKC operations, and divest the CPG business segment. This divestiture represented a strategic shift, and the Company realigned its corporate and management reporting structure to focus solely on aerospace and organized its business into a single reportable segment. This segment structure reflects the financial information and reports used by our management, specifically the Chief Executive Officer. Therefore, the management discussion and analysis below pertain only to the results of operations of our continuing operations (the servo control business formerly known as the Advanced Technology Group ("ATG") business segment), unless otherwise noted.
Commercial Aerospace Market
The Company's operations can be affected by various factors such as increases in fuel prices, interest rates, income tax laws, government regulations, and legislation. The reputation and operations of aircraft manufacturers may have a direct or indirect effect on the demand for our products. The global economy's uncertainties, competition from low-cost developing countries and emerging markets, currency policies in relation to the U.S. dollar of some major foreign exporting countries, the effect of terrorism, difficulty in predicting defense and other government appropriations, tariffs, the vitality of the commercial aviation industry and its ability to purchase new aircraft, the willingness and ability of our customers to fund long-term purchase programs, volatile market demand, and the continued market acceptance of our products, make it difficult to predict future financial results. These factors also have a direct impact on the demand for aircraft production and the amount of repair and overhaul services required on in-service aircraft.
Consistent with the evolving requirements of the aerospace industry, companies are increasingly being requested to operate under long-term agreements with their customers on the basis of fixed prices, targeted year-to-year price reductions, and/or year-to-year price adjustments predicated on mutually agreed indices and/or a combination of some or all of the above-described pricing arrangements and/or otherwise. Therefore, productivity improvements and cost containment strategies are constantly reviewed for continuous improvement. Since our products are labor-intensive, any productivity improvements are expected to positively impact our financial performance. However, if the costs of raw materials, purchased parts, or labor increase, it will have the opposite effect.
Our suppliers are also subject to all the pressures and volatility generated by global economic conditions. Any interruption in the continuous flow of material and product parts required to manufacture our products could adversely impact the ability to meet customer demand. If airline manufacturers reduce the number of airliners and/or aircraft produced due to adverse economic events, it will negatively impact the supply chain. Moreover, some major manufacturers have imposed extended payment terms to their suppliers, which may not be available to us when purchasing raw materials, such as aluminum, magnetic material, steel, and other product support items and services. Any delay in payment or failure to pay by our customers could adversely affect our operating results and cash flow.
We are deeply involved in providing cutting-edge solutions and components to meet the evolving needs of aerospace manufacturers and operators worldwide. Our strategic focus within this market encompasses developing and supplying advanced materials, components, and systems that enhance aircraft performance, efficiency, and safety. Through strong industry partnerships, innovative product offerings, and a commitment to excellence, we aim to maintain our leadership position and capitalize on emerging opportunities in the dynamic commercial aerospace landscape.
The commercial aerospace market, characterized by its complex nature, continues to witness unprecedented growth driven by increasing demand for air travel, fleet modernization efforts, and technological advancements in aircraft design and production. However, the industry's ability to meet this soaring demand has been hindered by ongoing challenges with supply chain, quality and people constraints (i.e. strikes) that have trickled down to all suppliers, including us. Commercial airplane deliveries from the original equipment manufacturers declined from 2023 to 2024, marking the first year of a decline since 2020. Although the impact of the volatile industry conditions was present in early 2024, the excessive inventory levels, customer rescheduling, and delivery deferrals became more acute during the second half of the year.
Marketing Strategy
Our Company focuses on expanding business in primary markets, such as commercial aviation, while exploring new opportunities in markets like energy and industrials as part of our growth strategy. This approach capitalizes on our technology and expertise in applications for our servo valves, meeting the expanding demands of these sectors.
Furthermore, our strategy includes expanding our services in the defense sector, strategically aligning with the increasing demand for modernizing and renewing military fleets. We actively collaborate with Tier 2 Defense Contractors by providing essential components for various defense applications. In doing so, we contribute critical components to military platforms that require the highest levels of precision and reliability.
By expanding our services in the defense sector, we are diversifying our portfolio and reinforcing our commitment to excellence across a wide range of aerospace applications. This balance between our commercial and defense activities positions us to strategically leverage growth opportunities in both areas due to our reputation for delivering unparalleled quality in the most challenging environments.
Management’s Discussion and Analysis
We navigated a challenging industry environment in 2024 initially marked by strong indicated demand, followed by customer-driven delivery delays, which impacted our financial performance. This discussion provides an overview of our financial and operational results, highlighting key factors that influenced our performance, including revenue trends, gross profit fluctuations, changes in SG&A expenses, increased borrowing costs, and the resulting impact on operating and net income. While many factors caused 2024 to be a challenging year for the aerospace industry and us, we believe the market and our Company are well-positioned for growth in 2025. We remain focused on executing our strategic initiatives, optimizing operational efficiencies, and maintaining financial discipline to drive sustainable growth.
Results of Operations
The following table compares the Company's Consolidated Statements of Operations data for the years ended December 31, 2024 and 2023:
Year Ended December 31,
(in thousands)
2024 vs 2023
Dollars
% Sales
Dollars
% Sales
$ Change
% Change
Revenue
$ 44,917
100.0 %
$ 43,629
100.0 %
$ 1,288
3.0 %
Cost of goods sold
36,651
81.6 %
35,824
82.1 %
2.3 %
Gross profit
8,266
18.4 %
7,805
17.9 %
5.9 %
Gross margin
18.4 %
-
17.9 %
-
0.5 %
-
Selling, general and administrative
9,275
20.6 %
9,918
22.7 %
(643 )
(6.5 )%
Operating loss
(1,009 )
(2.2 )%
(2,113 )
(4.8 )%
1,104
52.2 %
Other expenses
(496 )
1.1 %
(336 )
0.8 %
(160 )
(47.6 )%
Loss from continuing operations before income taxes
(1,505 )
(3.4 )%
(2,449 )
(5.6 )%
38.5 %
Income tax provision
(7 )
0.0 %
(1,098 )
2.5 %
1,091
99.4 %
Loss from continuing operations, net of tax
$ (1,512 )
(3.4 )%
$ (3,547 )
(8.1 )%
$ 2,035
57.4 %
Revenue and Gross Profit/Margin
Three months ended (reclassified)
(in thousands)
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Year
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Year
Revenue
$ 10,446
$ 12,273
$ 12,430
$ 9,768
$ 44,917
$ 9,060
$ 10,649
$ 11,582
$ 12,338
$ 43,629
Cost of goods sold
(8,711 )
(9,210 )
(10,162 )
(8,568 )
(36,651 )
(8,072 )
(9,092 )
(9,083 )
(9,577 )
(35,824 )
Gross profit
1,735
3,063
2,268
1,200
8,266
1,557
2,499
2,761
7,805
Gross margin
16.6 %
25.0 %
18.2 %
12.3 %
18.4 %
10.9 %
14.6 %
21.6 %
22.4 %
17.9 %
Revenue
During the first three quarters of 2024, we had consistent revenue growth, reflecting strong demand for our products. However, beginning in the third quarter and extending into the fourth quarter, certain customers began shifting and pushing out their demand to 2025, which led to higher finished goods inventory levels and significantly impacted our ability to deliver fourth quarter shipments and revenue. These customer shifts do not indicate a loss of business but rather a recalibration of delivery schedules, as the underlying demand and backlog for our products and services remain strong. We continue to work closely with our customers to align our production output and delivery schedules with their current demand and forecasts. As such, we remain confident in our long-term growth strategies that are supported by strong industry fundamentals.
Revenues for the three-month period ended December 31, 2024, decreased by approximately $2,570,000, or 20.8%, compared to the same period in 2023. This was driven by a decrease in volume of approximately $2,722,000 and unfavorable product mix of approximately $276,000, partially offset by price increases of approximately $428,000,
For the year ended December 31, 2024, revenues increased by approximately $1,288,000, or 3.0%, compared to the same period in 2023. This was driven by price increases of approximately $1,432,000 and a volume increase of approximately $339,000, partially offset by unfavorable product mix of approximately $483,000.
Our foreign sales decreased from $12,129,000 for the year ended December 31, 2023 to $11,385,000 for the same period in 2024, a decline of approximately $744,000, or 6.1%, driven by lower deliveries in the fourth quarter. As these sales constitute a substantial part of our overall revenue stream, we remain committed to improving deliveries in 2025, while expanding our global presence, strengthening our relationships with international customers, and leveraging our strategic initiatives to drive long-term growth in key foreign markets.
Gross Profit/Margin
During the first half of 2024 we had sequential growth in both gross profit and gross margin, driven by higher volumes, price increases, and improved operational efficiencies, partially offset by unfavorable product mix. Gross profit and gross margin both declined for the second half of the year due to unfavorable product mix compounded by significantly lower volume and less absorption of fixed overhead costs. Going forward, our focus is on optimizing our production footprint and improving cost efficiency to drive long-term gross profit and margin improvement.
During the three-month period ended December 31, 2024, gross profit decreased by approximately $1,561,000, or 56.5% compared to the same period in 2023. This decrease was driven primarily by lower volumes, unfavorable product mix, and less absorption of fixed overhead costs, slightly offset by price increases. This resulted in a gross margin of 12.3%, compared to 22.4% for the same period in 2023.
For the year ended December 31, 2024, gross profit increased by approximately $461,000, or 5.9% compared to the same period in 2023. The increase was driven primarily by price increases and higher absorption of overhead costs, partially offset by unfavorable product mix. This resulted in a gross margin of 18.4% compared to 17.9% for the same period in 2023.
Selling, General and Administrative Expenses and Operating (Loss) Income
Three months ended (reclassified)
(in thousands)
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Year
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Year
Selling, general and administrative
$ (2,018 )
$ (2,397 )
$ (2,549 )
$ (2,311 )
$ (9,275 )
$ (2,185 )
$ (3,269 )
$ (2,219 )
$ (2,245 )
$ (9,918 )
% SG&A to revenues
19.3 %
19.5 %
20.5 %
23.7 %
20.6 %
24.1 %
30.7 %
19.2 %
18.2 %
22.7 %
Operating (loss) income
$ (283 )
$
$ (281 )
$ (1,111 )
$ (1,009 )
$ (1,197 )
$ (1,712 )
$
$
$ (2,113 )
Operating (loss) income %
(2.7 )%
5.4 %
(2.3 )%
(11.4 )%
(2.2 )%
(13.2 )%
(16.1 )%
2.4 %
4.2 %
(4.8 )%
Selling, General and Administrative Expenses
During the first three quarters of 2024, we experienced a sequential increase in Selling, General, and Administrative (SG&A) expenses, largely driven by legal settlement costs associated with a former officer, which significantly impacted our SG&A expenses. Excluding the legal settlement costs, our SG&A expenses would have reflected a more normalized, consistent trend throughout the year. We remain committed to maintaining a disciplined approach to expense management and driving operational excellence.
During the three-month period ended December 31, 2024, SG&A expenses increased by approximately $66,000 or 2.9%, when compared to the same period in 2023. This increase in SG&A expenses was driven by the legal settlement costs, and increased as a percentage of revenue by 550 basis points due to the lower revenue when compared to the same period in 2023
For the year ended December 31, 2024, SG&A expenses decreased by approximately $643,000, or 6.5%, when compared to the same period in 2023, due primarily to lower one-time costs of approximately $704,000 in the current year for legal settlement costs, compared to approximately $1,211,000 in the prior year related primarily to proxy contest and bank refinancing costs. SG&A expenses as a percentage of revenue for the year ended December 31, 2024 decreased by 210 basis points when compared to the same period in 2023.
Operating (Loss) Income
Despite our customers deferred deliveries that significantly impacted our 2024 results, we experienced an improvement in operating results when compared to 2023. We are committed to improving our operational performance as customer demand normalizes, legal-related expenses subside, and we continue to execute on our strategic transformation initiatives.
For the three-month period ended December 31, 2024, operating loss increased by approximately $1,627,000, or 315.3%, when compared to the same period in 2023. The increase in operating loss was driven by lower gross profit due primarily to volume and unfavorable product mix.
For the year ended December 31, 2024, operating loss decreased (improved) by approximately $1,104,000, or 52.2%, when compared to the same period in 2023. The improvement was driven by slightly higher gross profit and lower SG&A expenses.
Other Expense, net
Three months ended (reclassified)
(in thousands)
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Year
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Year
Other expense, net
Interest expense
$ (86 )
$ (100 )
$ (173 )
$ (129 )
$ (488 )
$ (47 )
$ (89 )
$ (98 )
$ (111 )
$ (345 )
Other income
-
-
-
Loss on sale of equipment
-
-
-
(18 )
(18 )
-
-
-
-
-
Total other expense, net
$ (83 )
$ (98 )
$ (172 )
$ (143 )
$ (496 )
$ (47 )
$ (89 )
$ (98 )
$ (102 )
$ (336 )
(Loss) income from continuing operations before income taxes
$ (366 )
$
$ (453 )
$ (1,254 )
$ (1,505 )
$ (1,244 )
$ (1,801 )
$
$
$ (2,449 )
Other Expense, net
For the three-month period ended December 31, 2024, other expense (net) increased by approximately $41,000, or 40.2%, when compared to the same period in 2023. The increase was driven by higher interest expense due to increased usage of our asset-based line of credit to support working capital requirements, including higher inventory levels resulting from customer delivery pushouts into 2025.
For the year ended December 31, 2024 other expense (net) increased by approximately $160,000, or 47.6%, when compared to the same period in 2023. The increase was driven by higher interest expense due to increased usage of our asset-based line of credit to support working capital requirements, as noted.
(Loss) Income before Income Taxes
For the three-month period ended December 31, 2024, loss before income taxes of approximately $1,254,000 increased by approximately $1,668,000, or 402.9%, when compared to the income before income taxes of approximately $415,000 for the same period in 2023. The increase in loss was driven by the significantly lower revenue and gross profit, as previously noted.
For the year ended December 31, 2024, loss before income taxes of approximately $1,505,000 decreased (improved) by approximately $944,000, or 38.5%, when compared to the loss before income taxes of approximately $2,448,000 for same period in 2023. The decrease in loss resulted from higher revenue, increased gross profit and lower SG&A expenses, partially offset by higher interest expense.
Income Taxes
For both the three-month period and year ended December 31, 2024, tax expense of $7,000 was recorded based on current taxable income, compared to tax expense of $35,000 and $1,098,000, respectively, recorded for the same periods in 2023. The significant expense recorded in 2023 pertained to the recording of a full valuation allowance against our net deferred tax assets, as described in Note 8, "Income Taxes".
Our effective tax rate for continuing operations was (0.5%) and (44.8%) for the twelve-month periods ended December 31, 2024 and 2023, respectively. The effective tax rate reflects federal and state income taxes, permanent non-deductible expenditures, impact of recording a full valuation allowance against the net deferred tax assets, and the federal tax credit for research and development expenditures. The change in the effective tax rates between 2024 and 2023 is due primarily to the increase in business tax credits in 2024 and recording of the full valuation allowance in 2023. See also Note 8, "Income Taxes", for further discussion.
Liquidity and Capital Resources
Years Ended December 31,
(in thousands)
CASH FLOW DATA:
Net Cash Flows from:
Operating Activities
$ 1,253
$ (3,815 )
Investing Activities
$ (1,035 )
$ (689 )
Financing Activities
$ (17 )
$ 1,602
YEAR-END FINANCIAL POSITION:
Working Capital
$ 20,924
$ 21,639
Indebtedness
$ 2,127
$ 2,103
CAPITAL EXPENDITURES, NET:
$ (1,035 )
$ (689 )
CASH FLOW DATA (DISCONTINUED):
Net Cash Flows from:
Discontinued Operating Activities
$ (185 )
$ (2,823 )
Discontinued Investing Activities
$ -
$ 2,158
Operating Activities:
For the year ended December 31, 2024, we generated approximately $1,253,000 in cash from continuing operations, compared to cash used of approximately $3,815,000 for the same period in 2023. The increase in cash provided by continuing operations of approximately $5,068,000 when compared to the same period in 2023, is primarily attributable to a lower net loss by approximately $2,035,000 and lower accounts receivable by approximately $2,883,000 driven by market conditions primarily in the fourth quarter of 2024.
Our working capital as of December 31, 2024 was $20,924,000, a decrease of approximately $715,000 from $21,639,000 as of the end of 2023, driven primarily by a reduction in accounts receivable, as noted above.
Investing Activities:
In 2024, we used approximately $1,035,000 for capital purchases compared to $689,000 for the same period in 2023.
Financing Activities:
For the year ended December 31, 2024, we used $41,000 for the purchase of treasury shares, partially offset by funding received (net of payments) of approximately $24,000 from our credit facility. For the same period in 2023, funding received (net of payments) from our credit facility was approximately $2,103,000, partially offset by use of cash for payments on financing lease obligations of approximately $501,000.
Our primary sources of liquidity are the cash generated from our operations and the cash available from our $7,000,000 credit facility. As of December 31, 2024, our collateral base and eligible accounts receivable supported the ability to fund an additional $4,300,000 from the credit facility. In addition, all covenant requirements were met as of December 31, 2024. Refer to Note 5, "Indebtedness", for further discussions.
Discontinued Operation Activities:
For the year ended December 31, 2024, cash used for discontinued operating activities was approximately $185,000, compared to cash used of $2,823,000 for the same period in 2023. The source of cash from discontinued investing activities of approximately $2,158,000 for the same period in 2023 resulted from cash proceeds due to the sale of OKC assets. See Note 2, "Discontinued Operations and Assets and Liabilities Related to Discontinued Operation", for further information.
Ongoing Liquidity Considerations:
We incurred a net loss from continuing operations for the years ended December 31, 2024 and 2023. The losses in both 2024 and 2023 were both impacted by significant events. Specifically for 2024, market conditions and customer demand changes affected volume, and combined with unfavorable product mix, did not generate enough gross profit to cover SG&A expenses, which were impacted by legal settlement costs related to a former officer of the Company.
The net loss from discontinued operation in 2024 is primarily related to repair and maintenance costs for the mostly (approximately 90%) vacant building. For 2023, the net loss was driven by operating losses, the loss on sale of assets, divestiture costs, and non-cash asset impairment charges for the CPG business segment.
We believe that the availability on our $7,000,000 million line of credit (available through June 2026 with extensions), combined with the current customer demand and backlog, will continue to support our operations and growth, and provide us with sufficient liquidity in 2025. The availability on the line of credit was approximately $4,300,000 as of December 31, 2024 based on our collateral base and eligible accounts receivable. In addition, it is management's intention to sell the building related to the discontinued operation in 2025, which would generate cash flow for continuing operations.
Management Summary
To recap recent history, 2022 was a year of transition, highlighted by the hiring of our new CEO, who began evaluating the overall business and setting the course for long-term success. The initial focus was improving culture and employee retention. Morale was low and limited resources had been devoted to talent development, leadership training, and employee satisfaction. By late 2022 and early 2023, upskilling efforts began with new leadership in human resources and operations that set the course of action for change. Along with these efforts, the overall business evaluation process led to the decision in early 2023 to exit the unprofitable consumer products business segment. This included the OKC operations which lacked synergies with our core aerospace markets. The divestiture allowed the new leadership team to focus on transforming the servo-control business. Our strategic initiatives for the continuing operations centered on creating a people-centric culture, overhauling our processes for improved production output, business development and quality, while also enhancing our ERP system capabilities. Implementing change while still meeting customer demand meant each initiative required a multi-year plan, with many actions carrying over into 2024. Overall, our efforts in 2023 yielded higher employee retention and production output resulting in 24% revenue growth, which were significant milestone achievements.
Based on customer forecasts, we started 2024 with expectations of another year of double-digit revenue growth and improved profitability. However, it became a year of turbulence within the aerospace industry, marked by well-documented airframe manufacturers' quality issues, labor strikes, and engine delivery concerns. This created massive ripple effects throughout the commercial aerospace market, and we were not immune to these headwinds. Although we reacted quickly to adjust our production plans and flex our operations, our revenue and profitability were directly impacted during the second half of the year when customers began to pushout demand into 2025. Despite these market conditions, revenue still grew by approximately 3%, gross margins improved, and operating costs were down. In addition, we are pleased that our people strategy resulted in employee retention improving from 60% in 2022 to nearly 90% in 2024. We invested in a training program for all in-line managers and leaders to equip them with best practices and the tools necessary to better manage team performance, engagement and satisfaction. Our system enhancements included upgrading our ERP system resulting in improved visibility and operational execution. Also, continuous improvement and lean initiatives began to create additional value within the production processes for safely delivering quality product on time. Looking forward, as airline manufacturers increase build rates in 2025 and beyond, we are well-positioned to meet demand due to these investments.
Over the last three years, we achieved sequential growth in revenue, gross profit and margins, resulting in improvements in operating and net loss despite market and industry challenges (as shown below). Our transformation is not done and there is more to do in 2025 to continue this positive momentum. We remain focused on step-change improvements in manufacturing flow and output, material planning, and processes required for delivering high-quality, servo-control valves to our customers. Given current forecasts, we expect to achieve profitable growth in 2025.
Non-GAAP Measures:
We believe the presentation of these financial measures reflecting non-GAAP adjustments provides important supplemental information to investors and other users of our financial statements in evaluating our operating results distinct from results that include certain non-recurring items that are not indicative of our ongoing operating performance. These non-GAAP disclosures have limitations as analytical tools, should not be considered as an alternative to net income, operating income, net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to net operating income (loss) determined in accordance with GAAP.
We have provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Adjusted operating and net loss are provided for information purposes only and are not measures of financial performance under GAAP. We encourage readers to rely upon the GAAP numbers but include the non-GAAP financial measures as supplemental metrics to assist readers to illustrate the improvements made between 2022-2024 reflected in our growth in revenue, gross profit and margins, and improvements in adjusted operating and net losses when excluding the one-time expenses in 2024 and 2023. These measures include legal settlement costs of approximately $704,000 in 2024, and bank refinancing and proxy contest costs of approximately $1,211,000 in 2023. The net loss in 2023 was also impacted by incremental tax expense of approximately $1,098,000 resulting from a tax position due primarily to discontinuing the OKC operation and divesting the CPG business segment (combined adjustment to net loss of $2,309,000).
Finally, we believe adjusted EBITDA is a useful measure for evaluating our operating performance in accordance with the Requirements of Item 10(e)(i)(C) of Regulation S-K. Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our debt financings, as well as income tax expense. It also excludes the one-time expenses incurred in 2024 and 2023, as noted above, as these costs were significant and not in the ordinary course of business. Adjusted EBITDA is frequently used as one of the bases for comparing businesses in our industry, however, this measure is provided as a supplemental measure of our operating results and may not be comparable to similarly titled measures of other companies.
Years Ended December 31,
(in thousands)
Revenue
$ 44,917
$ 43,629
$ 35,185
Costs of goods sold
36,651
35,824
29,616
Gross profit
8,266
7,805
5,569
Gross margin
18.4 %
17.9 %
15.8 %
Selling, general and administrative
9,275
9,918
8,067
Operating loss
(1,009 )
(2,113 )
(2,498 )
Total other expense, net
(496 )
(336 )
(167 )
Loss from continuing operations before income taxes
(1,505 )
(2,449 )
(2,665 )
Income tax expense
(7 )
(1,098 )
Loss from continuing operations, net of tax
$ (1,512 )
$ (3,547 )
$ (2,100 )
Non-GAAP measures for comparison:
Operating loss
$ (1,009 )
$ (2,113 )
$ (2,498 )
Addback: one-time expenses
1,211
-
Adjusted operating loss
$ (305 )
$ (902 )
$ (2,498 )
Loss from continuing operations, net of tax
$ (1,512 )
$ (3,547 )
$ (2,100 )
Addback: one-time expenses
2,309
-
Adjusted loss from continuing operations, net of tax
$ (808 )
$ (1,238 )
$ (2,100 )
Adjusted EBITDA
$
$
$ (1,551 )
Off Balance Sheet Arrangements
Not applicable.
Critical Accounting Policies
We prepare our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). As such, we are required to make certain estimates, judgments and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ significantly from those estimates under different assumptions and conditions.
We have identified our critical accounting estimates. An accounting estimate is considered critical where (a) the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material.
Inventories
Inventories are measured at lower of cost or net realizable value. Inventory costing requires complex calculations that include standard labor and material costs, assumptions for overhead absorption, scrap, and the determination of which costs may be capitalized. Analysis of actual labor cost to standard cost is performed and adjusted, if required, quarterly. Material costs are assessed and adjusted on an on-going basis. Daily cycle counts of raw material and finished goods are performed to ensure accuracy and legitimacy of our inventory balances. Quarterly, full physical counts are performed for WIP balances. The valuation of inventory requires us to review inventory each quarter for excess and slow-moving items and establish a reserve. As of December 31, 2024, we have $15,826,000 of inventory recorded on our consolidated balance sheet, representing approximately 45% of total assets.
Impairment of Long-Lived Assets
The impairment of long-lived assets is a critical aspect of our financial reporting process, where we assess the carrying value of these assets to ensure their recoverability and to reflect any potential declines in their value. Our evaluation involves both qualitative and quantitative assessments, considering factors such as changes in market conditions, technological advancements, legal and regulatory developments, and other relevant indicators of impairment. We conduct impairment tests whenever events or changes in circumstances suggest that the carrying amount of a long-lived asset may not be recoverable. These tests typically involve comparing the asset's carrying value to its estimated future undiscounted cash flows, with impairment recognized if the carrying amount exceeds the asset’s fair value. We utilize various valuation techniques, including discounted cash flow analysis, market-based approaches, and independent appraisals, to determine fair values when necessary. Additionally, we review long-lived assets for impairment at least annually, or more frequently if events or circumstances indicate potential impairment. Through this rigorous impairment assessment process, we aim to ensure the accuracy of our financial statements and provide transparent disclosure to our stakeholders regarding any impairments that may materially affect our financial position and results of operations.
A commercial real estate broker ("broker") has been actively marketing the building associated with the discontinued operation at an asking price of $1,800,000, which is above the current net book value of $1,428,000. Based on discussions with the broker, commercial property sales can range from 12-18 months once actively marketed, a timeframe that is within Management's expectations for the sale of this property. Although there has been interest by third parties, no offers have been received, nor has there been any information received from our brokers that would indicate that our asking price is not aligned with the commercial real estate market conditions. Based on the information known, Management does not believe that an impairment exists and the $1,428,000 represents a fair value of the building as of December 31, 2024.
Deferred Tax Valuation Allowance
We make estimates and judgments in determining the provision for taxes for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, benefits, and deductions, and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. We must assess the likelihood that we will be able to recover our deferred tax assets. Recovery of a deferred tax asset is based on the ability of the business to generate income. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate may not ultimately be recoverable. These calculations require the use of estimates, in particular in relation to the expected growth of sales, the expected hourly rate for labor, the expected productivity of the production labor and achievable gross margin rates.
Commitments and Contingencies
In assessing commitments and contingencies, we employ a diligent and comprehensive approach aimed at ensuring transparency and accuracy for financial statement purposes. Our evaluation process encompasses a thorough review of contractual obligations, legal proceedings, and other potential liabilities that may impact our financial position and operations. We utilize a combination of internal expertise and legal counsel to assess the probability of occurrence and potential financial impact associated with these commitments and contingencies. This evaluation involves analyzing the nature of the obligation, the likelihood of settlement, and the availability of reliable information to estimate the potential loss or exposure. Additionally, we continuously monitor and reassess these commitments and contingencies to reflect any material changes in circumstances or new information that may arise. Through this diligent evaluation process, we strive to provide our stakeholders with transparent and accurate disclosures regarding our commitments and contingencies in our financial statements, thereby enhancing confidence in our financial reporting and risk management practices.

---

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company is a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and is not required to provide the information required under this item.

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data
The consolidated financial statements of the Company which are included in this Annual Report on Form 10-K are described in the accompanying Index to Consolidated Financial Statements on Page.

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.

---

ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures
(i)
Disclosure Controls and Procedures
The Company carried out an evaluation under the supervision and with the participation of its management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) as of December 31, 2024. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective as of the end of the period covered by this report, and designed to ensure that material information relating to us and our consolidated subsidiaries is made known to them on a timely basis, and that these disclosure controls and procedures are effective to ensure such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
(ii)
Management’s Report on Internal Control over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal controls over financial reporting (as defined in Exchange Act Rule 13a-15(f)). Under the supervision and with the participation of management, including the CEO and CFO, the Company conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 (COSO). Our management concluded that our internal controls over financial reporting were effective as of December 31, 2024.
This annual report does not include an attestation report of the Corporation’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Corporation’s independent registered public accounting firm pursuant to rules of the SEC that permit the Corporation to provide only management’s report in this Annual Report on Form 10-K.
(iii)
Changes in Internal Control Over Financial Reporting
There were no changes in the Company’s internal controls over financial reporting during 2024 that have materially affected, or are reasonably likely to affect, the Company’s internal controls over financial reporting.

---

ITEM 9B. OTHER INFORMATION
Item 9B. Other Information
Not applicable.

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance
Information required under this Item 10 is incorporated herein by reference to the information included in the Company’s definitive proxy statement if it is filed with the Commission within 120 days after the end of the Company’s 2024 fiscal year or such information will be included by amendment to this Form 10-K.
Code of Ethics
The Company has adopted a Code of Ethics and Business Conduct (the Code) that applies to all directors, officers and employees of the Company as required by the listing standards of the NYSE American. The Code is available on the Company’s website at www.servotronics.com and the Company intends to disclose on this website any amendment to the Code. Waivers under the Code, if any, will be disclosed under the rules of the SEC and the NYSE American.

---

ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation
Information required under this Item 11 is incorporated herein by reference to the information included in the Company’s definitive proxy statement if it is filed with the Commission within 120 days after the end of the Company’s 2024 fiscal year or such information will be included by amendment to this Form 10-K.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Securities Authorized for Issuance Under Equity Compensation Plans
The following table sets forth the securities authorized for issuance under the Company’s equity compensation plans as of December 31, 2024:
Number of
Weighted-average
Number of
securities to be
exercise price of
securities remaining
issued upon
outstanding
available for
exercise of
options
future issuance
outstanding options,
warrants and
under equity
Plan category
warrants and rights
rights
compensation plans
Equity compensation plans approved by security holders
-
-
140,167
Equity compensation plans not approved by security holders
-
-
-
Total
-
-
140,167
Information required under this Item 12 is incorporated herein by reference to the information included in the Company’s definitive proxy statement if it is filed with the Commission within 120 days after the end of the Company’s 2024 fiscal year or such information will be included by amendment to this Form 10-K.
Also incorporated by reference is the information in the table under the heading “Company Purchases of Company’s Equity Securities” included in Item 5 of this Form 10-K. See also Note 7, Shareholders’ Equity, of the accompanying consolidated financial statements for more information.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions and Director Independence
Information required under this Item 13 is incorporated herein by reference to the information included in the Company’s definitive proxy statement if it is filed with the Commission within 120 days after the end of the Company’s 2024 fiscal year or such information will be included by amendment to this Form 10-K.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accountant Fees and Services
Information required under this Item 14 is incorporated herein by reference to the information included in the Company’s definitive proxy statement if it is filed with the Commission within 120 days after the end of the Company’s 2024 fiscal year or such information will be included by amendment to this Form 10-K.
PART IV

---

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits and Financial Statement Schedules
3.1
Certificate of Incorporation of the Company (Incorporated by reference to Exhibit 3(A)(1) to the Company’s Form 10-KSB for the year ended December 31, 1996)
3.2
Amendments to Certificate of Incorporation dated August 27, 1984 (Incorporated by reference to Exhibit 3(A)(2) to the Company’s Form 10-KSB for the year ended December 31, 1996)
3.3
Amendments to Certificate of Incorporation dated June 30, 1998 (Incorporated by reference to Exhibit 3(A)(4) to the Company’s Form 10-KSB for the year ended December 31, 1998)
3.4
Certificate of designation creating Series I preferred stock (Incorporated by reference to Exhibit 4(A) to the Company’s Form 10-KSB for the year ended December 31, 1987)
3.5
By-laws of the Company (Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed with the SEC on April 27, 2022)
4.1
Description of Capital Stock (Incorporated by reference to Exhibit 4.4 to the Company's Form 10 - K for the year ended December 31, 2022)
Material Contracts (*Indicates management contract or compensatory plan or arrangement)
10.1
Form of Indemnification Agreement between the Registrant and each of its Directors and Officers (Incorporated by reference to Exhibit 10.7 for the year ended December 31, 2016)
10.2
Loan agreement between the Company and its employee stock ownership trust, as amended (Incorporated by reference to Exhibit 10(C)(1) to the Company’s Form 10-KSB for the year ended December 31, 1991)
10.3
Stock purchase agreement between the Company and its employee stock ownership trust (Incorporated by reference to Exhibit 10(D)(2) to the Company’s Form 10-KSB for the year ended December 31, 1988)
10.4*
Servotronics, Inc. Executive Change in Control Severance Plan (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q filed with the SEC on May 16, 2022)
10.5*
Participation Agreement for Executive Change in Control Severance Plan (Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q filed with the SEC on May 16, 2022)
10.6*
Servotronics, Inc. 2022 Equity Incentive Plan (Incorporated by reference to Appendix A to the Company’s Proxy Statement for the 2022 Annual Meeting of Shareholders)
10.7
Financing Agreement effective June 28, 2023, between Servotronics, Inc. and Rosenthal & Rosenthal, Inc. (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on June 30, 2023)
10.8*
Non- Employee Director Compensation Policy (Incorporated by reference to Exhibit 10.8 to the Company's Form 10 - K filed with the SEC on March 31, 2023)
Servotronics, Inc. Insider Trading Policy (Incorporated by reference to Exhibit 19 to the Company's Form 10-K filed with the SEC on March 22, 2024)
Subsidiaries of the Registrant (Filed herewith)
23.1
Consent of Freed Maxick P.C. (f/k/a Freed Maxick CPAs, P.C.) (Filed herewith)
31.1
Certification of Chief Executive Officer pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
31.2
Certification of Chief Financial Officer pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
32.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Furnished herewith)
32.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Furnished herewith)
Servotronics, Inc. Clawback Policy (Incorporated by reference to Exhibit 97 to the Company's Form 10-K filed with the SEC on March 22, 2024)
101.1 SCH
Inline XBRL Taxonomy Extension Schema Document (filed herewith).
101.2 CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).
101.3 DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).
101.4 LAB
Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith).
101.5 PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).
Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in exhibits 101.*) (filed herewith).