$ELMT

Elmet Group Co.

CIK:0002101698|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2026	Jun. 30, 2025	Jul. 03, 2026	Jun. 30, 2025
Revenue	$ 66,401	$ 49,130	$ 122,408	$ 95,517
Cost of goods sold	49,791	38,983	93,950	76,759
Gross profit	16,610	10,147	28,458	18,758
Operating expenses:
General and administrative	17,780	4,016	24,848	7,275
Research and development	4,321	1,009	5,171	1,820
Sales and marketing	2,137	1,876	4,204	3,559
Total operating expenses	24,238	6,901	34,223	12,654
Operating (loss) income	(7,628)	3,246	(5,765)	6,104
Change in fair value of derivative asset	881	0	(2,214)	0
(Gain) loss on remeasurement of the fair value of marketable securities	(445)	23	(1,081)	23
Other (income) expense, net	(186)	(77)	(204)	2
Total other expense (income), net	610	1,116	(1,899)	2,121
(Loss) income from continuing operations before taxes	(8,238)	2,130	(3,866)	3,983
Income tax (benefit) provision	(3,750)	0	960	0
(Loss) income from continuing operations	(4,488)	2,130	(4,826)	3,983
Loss from discontinued operations	0	(890)	0	(1,546)
Net (loss) income	$ (4,488)	$ 1,240	$ (4,826)	$ 2,437
Net (loss) income per share:
Basic (in dollars per share)	$ (0.16)	$ 0.06	$ (0.20)	$ 0.12
Diluted (in dollars per share)	$ (0.16)	$ 0.06	$ (0.20)	$ 0.12
Weighted average shares outstanding
Basic (in shares)	28,414,861	20,123,187	24,223,725	20,123,187
Diluted (in shares)	28,414,861	20,268,282	24,223,725	20,196,135
Nonrelated Party
Operating expenses:
Interest expense	$ 127	$ 793	$ 740	$ 1,303
Related Party
Operating expenses:
Interest expense	$ 233	$ 377	$ 860	$ 793

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net (loss) income	$ (4,826)	$ 2,437
Loss from discontinued operations	0	(1,546)
(Loss) income from continuing operations	(4,826)	3,983
Adjustments to reconcile (loss) income from continuing operations to net cash (used in) provided by operating activities:
Deferred income taxes, net	3,987	0
Change in fair value of derivative asset	(2,214)	0
Depreciation and amortization	3,779	3,215
Stock-based compensation	10,735	383
Noncash operating lease expense	469	440
Noncash interest expense	17	14
Provision for excess and obsolete inventories	33	(1)
Change in fair value of interest rate collars	(56)	51
Unrealized (gain) loss on marketable securities	(1,081)	23
Change in operating assets and liabilities:
Accounts receivable	(5,588)	7,607
Unbilled revenue	2,057	(4,059)
Inventories	(32,763)	(10,780)
Related party receivables	291	0
Income tax receivable	(3,766)	0
Prepaid expenses and other current assets	(2,378)	(527)
Other assets	134	5
Accounts payable	12,250	885
Accrued expenses and other current liabilities	5,004	4,181
Operating lease liabilities	(418)	(381)
Related party payables	190	0
Deferred revenue	6,570	3,975
Other liabilities	2	10
Net cash (used in) provided by operating activities from continuing operations	(7,572)	9,024
Net cash used in operating activities from discontinued operations	0	(2,742)
Net cash (used in) provided by operating activities	(7,572)	6,282
Cash flows from investing activities:
Purchase of shares upon exercise of call option	(1,426)	0
Purchases of property, plant and equipment, net of grant proceeds (see Note 7 – Government Grants)	(3,141)	(4,602)
Net cash used in investing activities from continuing operations	(4,567)	(4,602)
Net cash used in investing activities from discontinued operations	0	(110)
Net cash used in investing activities	(4,567)	(4,712)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriting discount and offering costs	125,363	0
Payments of principal on revolving credit facility	(99,882)	(326)
Proceeds from revolving credit facility	76,441	6,522
Cash distributions paid to stockholders	0	(6,833)
Payments of deferred consideration	(73)	0
Payments of contingent consideration	(49)	0
Employee taxes paid on shares withheld for tax-withholding purposes	(4,371)	0
Payments of principal on revolving credit facility – related party	(1,771)	(1,559)
Repurchase of Class B Common Stock	(25)	0
Payments of principal on finance leases	(16)	(25)
Net cash provided by (used in) financing activities from continuing operations	76,540	(6,452)
Net cash provided by financing activities from discontinued operations	0	103
Net cash provided by (used in) financing activities	76,540	(6,349)
Effects of exchange rate changes on cash	(38)	42
Net increase (decrease) in cash	64,363	(4,737)
Cash at beginning of period	1,759	6,532
Cash at end of period	66,122	1,795
Reconciliation of cash at beginning of period:
Cash at beginning of period – continuing operations	1,759	3,608
Cash at beginning of period – discontinued operations	0	2,924
Cash at beginning of period	1,759	6,532
Reconciliation of cash at end of period:
Cash at end of period – continuing operations	66,122	1,620
Cash at end of period – discontinued operations	0	175
Cash at end of period	66,122	1,795
Supplemental non-cash investing and financing activities:
Purchases of property, plant and equipment included in accounts payable and accrued expenses	684	280
Contracted government grants not yet received	1,273	0
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	1,660	0
Supplemental disclosure of cash flow information:
Cash paid for interest	1,674	1,834
Cash paid for income taxes	700	0
Nonrelated Party
Cash flows from financing activities:
Payments of principal on long-term debt	(1,783)	(4,231)
Related Party
Cash flows from financing activities:
Payments of principal on long-term debt	$ (17,294)	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 03, 2026	Dec. 31, 2025
Current Assets:
Cash	$ 66,122	$ 1,759
Marketable securities	4,923	202
Accounts receivable, net	34,483	28,904
Government grant receivables	232	1,690
Related party receivables	58	426
Unbilled revenue	564	2,621
Inventories, net	102,401	69,697
Income tax receivable	3,766	0
Prepaid expenses and other current assets	5,548	4,774
Total current assets	218,097	110,073
Property, plant and equipment, net	42,457	42,342
Operating lease right-of-use assets	11,777	10,586
Intangible assets, net	6,558	7,184
Goodwill	4,527	4,583
Deferred tax assets, net	88	0
Other assets	724	878
Total assets	284,228	175,646
Current Liabilities:
Accrued expenses and other current liabilities	17,417	13,659
Operating lease liabilities, current portion	956	875
Deferred government grants	2,358	4,672
Deferred revenue	21,416	14,853
Total current liabilities	72,097	60,298
Operating lease liabilities, net of current portion	11,407	10,247
Deferred tax liabilities, net	4,075	0
Other liabilities	998	1,189
Total liabilities	96,685	115,189
Commitments and Contingencies (Note 18)
Stockholders’ Equity:
Preferred Stock - $0.001 par value; 20,000,000 shares authorized at July 3, 2026 and December 31, respectively. No shares issued and outstanding as of July 3, 2026 and December 31, 2025	0	0
Common Stock	30
Additional paid-in capital	147,058	15,366
Retained earnings	40,507	44,791
Accumulated other comprehensive (loss) income	(52)	280
Total stockholders’ equity	187,543	60,457
Total liabilities and stockholders’ equity	284,228	175,646
Related Party
Current Assets:
Related party receivables	100	200
Current Liabilities:
Accounts payable	190	0
Current portion of long-term debt	0	2,319
Long-term debt, net of current portion	0	15,000
Nonrelated Party
Current Liabilities:
Accounts payable	27,390	16,165
Current portion of long-term debt	2,370	7,755
Long-term debt, net of current portion	$ 8,108	28,455
Class A Common Stock
Stockholders’ Equity:
Common Stock		20
Class B Common Stock
Stockholders’ Equity:
Common Stock		$ 0