モーターカーパーツオブアメリカの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 11, 2024

MOTORCAR PARTS OF AMERICA, INC.

(Exact name of registrant as specified in its charter)

New York		001-33861		11-2153962
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

2929 California Street, Torrance, CA		90503
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (310)-212-7910

N/A

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

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

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, par value $0.01 per share	MPAA	The Nasdaq Global Select Market

Item 2.02.

Results of Operations and Financial Condition

On June 11, 2024, Motorcar Parts of America, Inc. (the "Company") issued a press release announcing its earnings for the fiscal quarter and year ended March 31, 2024 which is being furnished as Exhibit 99.1. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

Item 9.01.

Financial Statements and Exhibits.

The following exhibit is furnished with this Current Report pursuant to Item 2.02:

(d)

Exhibits

	Exhibit No.	Description

	99.1	Press Release, dated June 11, 2024

	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

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

	MOTORCAR PARTS OF AMERICA, INC.

Date: June 11, 2024	/s/ David Lee
	David Lee
	Chief Financial Officer

EX-99.1 2 ef20030769_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

NEWS RELEASE

CONTACT:

Gary S. Maier

Vice President, Corporate Communications & IR

(310) 972-5124

MOTORCAR PARTS OF AMERICA REPORTS YEAR-END RESULTS

- Record Sales for the Fiscal Year; Operating Income Up Sharply;

Solid Outlook with Strong Cash Flow

LOS ANGELES, CA – June 11, 2024 – Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2024 fourth quarter and year ended March 31, 2024 – reflecting year-over-year increases in sales, operating income and cash flow from operating activities, despite industry softness in the fourth quarter.

Key highlights for the fiscal year.

•

Net sales increased 5.1 percent to $717.7 million.

•

Gross profit increased 16.3 percent to $132.6 million.

•

Gross margin increased 1.8 percentage points to 18.5 percent.

•

Operating income increased 26.5 percent to $46.1 million.

•

The company generated cash from operations of approximately $39.2 million.

Fiscal 2024 Fourth Quarter Results

Net sales for the fiscal 2024 fourth quarter were $189.5 million compared with $194.7 million in the prior year, impacted by industry softness. Sales in April and May 2024 indicate a strong start to the new fiscal year.

Gross profit for the fiscal 2024 fourth quarter was $34.8 million compared with $36.2 million a year earlier. Gross margin for the fiscal 2024 fourth quarter was 18.4 percent compared with 18.6 percent a year earlier. Gross margin for the fiscal 2024 fourth quarter was impacted by $3.7 million, or 2.0 percent, of non-cash items, and approximately $700,000, or 0.4 percent, of non-recurring cash items, as detailed in Exhibit 3.

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Motorcar Parts of America, Inc.

2-2-2

Operating income for the fiscal 2024 fourth quarter was $12.2 million compared with $23.7 million in the prior year, impacted by $5.6 million of less favorable foreign exchange rate related gains associated with lease liabilities and forward contracts compared with the prior year and a $5.1 million employee retention credit benefit in the prior year.

Interest expense for the fiscal fourth quarter increased by $2.8 million, or $0.09 per diluted share, to $14.6 million from $11.9 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding balances under the company’s credit facility.

Net income for the fiscal 2024 fourth quarter was $1.3 million compared with $1.5 million for the prior year. Net income for the fiscal 2024 fourth quarter was impacted by approximately $800,000, or $0.04 per diluted share, of non-cash items, and $1.2 million, or $0.05 per diluted share, of cash items, as detailed in Exhibit 1.

“Our fiscal 2024 results indicate continued progress in growing sales, increasing gross margins and gross profit and generating positive cash flow, which we expect to continue in the new fiscal year. Our brake-related product categories continue to gain momentum, which will result in gross margin accretion. We remain focused on executing our strategic plans, supported by positive cash flow and neutralizing working capital,” said Selwyn Joffe, chairman, president, and chief executive officer.

Twelve-Month Results

Net sales for fiscal 2024 increased 5.1 percent to a record $717.7 million from $683.1 million, despite the industry softness in the fourth quarter as noted above.

Gross profit for fiscal 2024 increased 16.3 percent to $132.6 million from $114.0 million a year earlier. Gross margin for fiscal 2024 increased to 18.5 percent from 16.7 percent a year earlier. Gross margin for fiscal 2024 was impacted by $16.3 million, or 2.3 percent, of non-cash items, and $7.5 million, or 1.0 percent, of non-recurring cash items, as detailed in Exhibit 4.

Operating income for fiscal 2024 increased 26.5 percent to $46.1 million from $36.4 million in the prior year.

Interest expense for fiscal 2024 increased by $20.5 million, or $0.78 per share, to $60.0 million from $39.6 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding balances under the company’s credit facility.

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Motorcar Parts of America, Inc.

3-3-3

Due primarily to $50.3 million, or $2.56 per share, of non-cash items, including a $38.0 million U.S. federal and state deferred tax asset valuation allowance under U.S. GAAP, or $1.94 per share, net loss for fiscal 2024 was $49.2 million, or $2.51 per share, compared with a net loss of $4.2 million, or $0.22 per share, a year ago. The valuation allowance does not impact any operating metrics. The non-cash items discussed above, and cash items of $7.0 million, or $0.36 per share, are detailed in Exhibit 2.

The company generated approximately $39.2 million of cash from operating activities during fiscal 2024 and reduced net bank debt by $32.5 million to $114.0 million from $146.5 million, notwithstanding $9.3 million cash used in operating activities during the fourth quarter due to seasonality of the company’s business.

Further Considerations

•

Sales volume improving:

Ordering activity has gained momentum.

Industry fundamentals are improving and will drive product demand.

•

Margin improvement:

Enhanced by multiple rounds of price increases.

Improving overhead absorption as brake-related business gains further momentum.

Improving operational efficiencies through volume increases.

•

Strong cash flow outlook.

Fiscal 2025 Guidance

Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2025 to be between $746 million to $766 million, representing between 3.9 percent and 6.7 percent year-over-year growth. Operating income is expected to be between $62 million and $67 million, before the non-cash foreign exchange impact of lease liabilities and forward contracts and the non-cash impact of revaluation of cores on customers’ shelves. The company estimates other non-cash items will be approximately $17 million, including core and finished goods premium amortization and share-based compensation. The company estimates depreciation and amortization will be approximately $11 million.

Use of Non-GAAP Measure

This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure.

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Motorcar Parts of America, Inc.

4-4-4

Earnings Conference Call and Webcast

Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company’s financial results and operations. The call will be open to all interested investors either through a live audio webcast at www.motorcarparts.com or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America’s website www.motorcarparts.com. A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 11, 2024 through 8:59 p.m. Pacific time on June 18, 2024 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314.

About Motorcar Parts of America, Inc.

Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at www.motorcarparts.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company’s Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2023 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

# # #

(Financial tables follow)

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MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

	Three Months Ended March 31,						Year Ended March 31,
	2024			2023			2024			2023
	(Unaudited)

Net sales	$	189,478,000		$	194,727,000		$	717,684,000		$	683,074,000
Cost of goods sold		154,685,000			158,576,000			585,133,000			569,112,000
Gross profit		34,793,000			36,151,000			132,551,000			113,962,000
Operating expenses:
General and administrative		15,644,000			12,677,000			57,769,000			54,756,000
Sales and marketing		5,443,000			4,487,000			22,481,000			21,729,000
Research and development		2,643,000			1,992,000			9,995,000			10,322,000
Foreign exchange impact of lease liabilities and forward contracts		(1,155,000	)		(6,738,000	)		(3,814,000	)		(9,291,000	)
Total operating expenses		22,575,000			12,418,000			86,431,000			77,516,000
Operating income		12,218,000			23,733,000			46,120,000			36,446,000
Other expenses:
Interest expense, net		14,640,000			11,880,000			60,040,000			39,555,000
Change in fair value of compound net derivative liability		(2,710,000	)		-			(1,020,000	)		-
Loss on extinguishment of debt		-			-			168,000			-
Total other expenses		11,930,000			11,880,000			59,188,000			39,555,000
Income (loss) before income tax (benefit) expense		288,000			11,853,000			(13,068,000	)		(3,109,000	)
Income tax (benefit) expense		(1,050,000	)		10,394,000			36,176,000			1,098,000

Net income (loss)	$	1,338,000		$	1,459,000		$	(49,244,000	)	$	(4,207,000	)

Basic net income (loss) per share	$	0.07		$	0.07		$	(2.51	)	$	(0.22	)

Diluted net income (loss) per share	$	(0.03	)	$	0.07		$	(2.51	)	$	(0.22	)

Weighted average number of shares outstanding:

Basic		19,662,380			19,492,962			19,601,204			19,340,246

Diluted		22,085,292			19,603,394			19,601,204			19,340,246

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

	March 31, 2024		March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	13,974,000	$	11,596,000
Short-term investments		1,837,000		2,011,000
Accounts receivable — net		96,296,000		119,868,000
Inventory — net		377,040,000		339,675,000
Inventory unreturned		20,288,000		16,579,000
Contract assets		27,139,000		25,443,000
Income tax receivable		5,683,000		2,156,000
Prepaid expenses and other current assets		18,202,000		20,150,000
Total current assets		560,459,000		537,478,000
Plant and equipment — net		38,338,000		46,052,000
Operating lease assets		83,973,000		87,619,000
Deferred income taxes		2,976,000		32,625,000
Long-term contract assets		320,282,000		318,381,000
Goodwill		3,205,000		3,205,000
Intangible assets — net		1,069,000		2,143,000
Other assets		1,700,000		1,062,000
TOTAL ASSETS	$	1,012,002,000	$	1,028,565,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	154,977,000	$	119,437,000
Accrued liabilities		30,205,000		22,329,000
Customer finished goods returns accrual		38,312,000		37,984,000
Contract liabilities		37,591,000		40,340,000
Revolving loan		128,000,000		145,200,000
Other current liabilities		7,021,000		4,871,000
Operating lease liabilities		8,319,000		8,767,000
Current portion of term loan		-		3,664,000
Total current liabilities		404,425,000		382,592,000
Term loan, less current portion		-		9,279,000
Convertible notes, related party		30,776,000		30,994,000
Contract liabilities, less current portion		212,068,000		193,606,000
Deferred income taxes		511,000		718,000
Operating lease liabilities, less current portion		72,240,000		79,318,000
Other liabilities		6,872,000		11,583,000
Total liabilities		726,892,000		708,090,000
Commitments and contingencies
Shareholders' equity:
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued		-		-
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued		-		-
Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,662,380 and 19,494,615 shares issued and outstanding at March 31, 2024 and 2023, respectively		197,000		195,000
Additional paid-in capital		236,255,000		231,836,000
Retained earnings		39,503,000		88,747,000
Accumulated other comprehensive income (loss)		9,155,000		(303,000	)
Total shareholders' equity		285,110,000		320,475,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,012,002,000	$	1,028,565,000

Additional Information and Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2024 and 2023. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business.

The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company’s financial statements prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies.

The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items.

Items Impacting Net Income for the Three Months Ended March 31, 2024 and 2023 Exhibit 1

	Three Months Ended March 31,
	2024						2023
	$			Per Share			$			Per Share
GAAP net income	$	1,338,000		$	(0.03	)	$	1,459,000		$	0.07

Non-cash items impacting net income
Core and finished goods premium amortization	$	2,761,000		$	0.13		$	2,608,000		$	0.13
Revaluation - cores on customers' shelves		973,000			0.04			1,032,000			0.05
Share-based compensation expenses		432,000			0.02			1,164,000			0.06
Foreign exchange impact of lease liabilities and forward contracts		(1,155,000	)		(0.05	)		(6,738,000	)		(0.34	)
Change in fair value of compound net derivative liability		(2,710,000	)		(0.12	)		-			-
Tax effect (a)		(75,000	)		(0.00	)		484,000			0.02
Tax valuation allowance		548,000			0.02			-			-
Total non-cash items impacting net income	$	774,000		$	0.04		$	(1,450,000	)	$	(0.07	)

Cash items impacting net income
Supply chain disruptions and related costs (b)	$	734,000		$	0.03		$	2,951,000		$	0.15
New product line start-up costs and transition expenses, and severance (c)		840,000			0.04			923,000			0.05
Employee retention credit (d)		-			-			(5,104,000	)		(0.26	)
Tax effect (a)		(394,000	)		(0.02	)		308,000			0.02
Total cash items impacting net income	$	1,180,000		$	0.05		$	(922,000	)	$	(0.05	)

(a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate.

(b) For the three-months ended March 31, 2024, consists of $734,000 impacting gross profit.

For the three-months ended March 31, 2023, consists of $2,913,000 impacting gross profit and $38,000 included in operating expenses.

For the three-months ended March 31, 2023, consists of $923,000 included in operating expenses.

(d) For the three-months ended March 31, 2023, consists of ($2,034,000) impacting gross profit and ($3,070,000) included in operating expenses.

Items Impacting Net Income for the Twelve Months Ended March 31, 2024 and 2023 Exhibit 2

	Twelve Months Ended March 31,
	2024						2023
	$			Per Share			$			Per Share
GAAP net loss	$	(49,244,000	)	$	(2.51	)	$	(4,207,000	)	$	(0.22	)

Non-cash items impacting net loss
Core and finished goods premium amortization	$	10,963,000		$	0.56		$	11,791,000		$	0.61
Revaluation - cores on customers' shelves		5,353,000			0.27			3,736,000			0.19
Share-based compensation expenses		4,700,000			0.24			4,685,000			0.24
Foreign exchange impact of lease liabilities and forward contracts		(3,814,000	)		(0.19	)		(9,291,000	)		(0.48	)
Change in fair value of compound net derivative liability and loss on extinguishment of debt		(852,000	)		(0.04	)		-			-
Tax effect (a)		(4,088,000	)		(0.21	)		(2,730,000	)		(0.14	)
Tax valuation allowance		38,009,000			1.94			-			-
Total non-cash items impacting net loss	$	50,271,000		$	2.56		$	8,191,000		$	0.42

Cash items impacting net loss
Supply chain disruptions and related costs (b)	$	7,472,000		$	0.38		$	12,914,000		$	0.67
New product line start-up costs and transition expenses, and severance (c)		1,820,000			0.09			3,565,000			0.18
Employee retention credit (d)		-			-			(5,104,000	)		(0.26	)
Tax effect (a)		(2,323,000	)		(0.12	)		(2,844,000	)		(0.15	)
Total cash items impacting net loss	$	6,969,000		$	0.36		$	8,531,000		$	0.44

(a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate.

(b) For the twelve-months ended March 31, 2024, consists of $7,472,000 impacting gross profit.

For the twelve-months ended March 31, 2023, consists of $11,485,000 impacting gross profit and $1,429,000 included in operating expenses.

For the twelve-months ended March 31, 2023, consists of $3,565,000 included in operating expenses.

(d) For the twelve-months ended March 31, 2023, consists of ($2,034,000) impacting gross profit and ($3,070,000) included in operating expenses.

Items Impacting Gross Profit for the Three Months Ended March 31, 2024 and 2023 Exhibit 3

	Three Months Ended March 31,
	2024					2023
	$		Gross Margin			$			Gross Margin
GAAP gross profit	$	34,793,000		18.4	%	$	36,151,000			18.6	%

Non-cash items impacting gross profit
Core and finished goods premium amortization	$	2,761,000		1.5	%	$	2,608,000			1.3	%
Revaluation - cores on customers' shelves		973,000		0.5	%		1,032,000			0.5	%
Total non-cash items impacting gross profit	$	3,734,000		2.0	%	$	3,640,000			1.9	%

Cash items impacting gross profit
Supply chain disruptions and related costs	$	734,000		0.4	%	$	2,913,000			1.5	%
Employee retention credit		-		-			(2,034,000	)		-1.0	%
Total cash items impacting gross profit	$	734,000		0.4	%	$	879,000			0.5	%

Items Impacting Gross Profit for the Twelve Months Ended March 31, 2024 and 2023 Exhibit 4

	Twelve Months Ended March 31,
	2024					2023
	$		Gross Margin			$			Gross Margin
GAAP gross profit	$	132,551,000		18.5	%	$	113,962,000			16.7	%

Non-cash items impacting gross profit
Core and finished goods premium amortization	$	10,963,000		1.5	%	$	11,791,000			1.7	%
Revaluation - cores on customers' shelves		5,353,000		0.7	%		3,736,000			0.5	%
Total non-cash items impacting gross profit	$	16,316,000		2.3	%	$	15,527,000			2.3	%

Cash items impacting gross profit
Supply chain disruptions and related costs	$	7,472,000		1.0	%	$	11,485,000			1.7	%
Employee retention credit		-		-			(2,034,000	)		-0.3	%
Total cash items impacting gross profit	$	7,472,000		1.0	%	$	9,451,000			1.4	%

Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2024 and 2023 Exhibit 5

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2024			2023			2024			2023
GAAP net income (loss)	$	1,338,000		$	1,459,000		$	(49,244,000	)	$	(4,207,000	)
Interest expense, net		14,640,000			11,880,000			60,040,000			39,555,000
Income tax expense (benefit)		(1,050,000	)		10,394,000			36,176,000			1,098,000
Depreciation and amortization		2,775,000			3,122,000			11,619,000			12,444,000
EBITDA	$	17,703,000		$	26,855,000		$	58,591,000		$	48,890,000

Non-cash items impacting EBITDA
Core and finished goods premium amortization	$	2,761,000		$	2,608,000		$	10,963,000		$	11,791,000
Revaluation - cores on customers' shelves		973,000			1,032,000			5,353,000			3,736,000
Share-based compensation expenses		432,000			1,164,000			4,700,000			4,685,000
Foreign exchange impact of lease liabilities and forward contracts		(1,155,000	)		(6,738,000	)		(3,814,000	)		(9,291,000	)
Change in fair value of compound net derivative liability and loss on extinguishment of debt		(2,710,000	)		-			(852,000	)		-
Total non-cash items impacting EBITDA	$	301,000		$	(1,934,000	)	$	16,350,000		$	10,921,000

Cash items impacting EBITDA
Supply chain disruptions and related costs	$	734,000		$	2,951,000		$	7,472,000		$	12,914,000
New product line start-up costs and transition expenses, and severance		840,000			923,000			1,820,000			3,565,000
Employee retention credit		-			(5,104,000	)		-			(5,104,000	)
Total cash items impacting EBITDA	$	1,574,000		$	(1,230,000	)	$	9,292,000		$	11,375,000