NOTE 14 – PROPERTY, PLANT, AND EQUIPMENT, NET AND ASSETS HELD FOR SALE DUE TO SETTLEMENT

Property, plant, and equipment, net

Property, plant, and equipment consist of the following:

Depreciation expense related to property, plant, and equipment for the three and six months ended March 31, 2025 was $3.9 million and $7.8 million, respectively ($8.7 million and $11.7 million for the three and six months ended March 31, 2024, respectively).

Assets Held for Sale due to Settlement

As further disclosed in Note 19 - Contingencies and claims, on May 8, 2025, the Company entered into a legal settlement agreement with GEM to resolve outstanding legal claims. As part of the settlement, the Company agreed to transfer ownership of its Mishawaka facility to GEM in satisfaction of the related liability. The settlement is contingent upon the closing of escrow, which is expected to occur within 12 months from the balance sheet date. Under the terms of the Agreement, GEM has a 55-day due diligence period, subject to extension by GEM, to evaluate the transfer to GEM of the manufacturing plant located in Mishawaka, Indiana, and other related assets in complete satisfaction of the settlement amount. As of March 31, 2025, the Company has met the criteria under ASC 360-10-45-9 to classify the Mishawaka facility as held for sale/disposition. The assets to be transferred to GEM are presented separately on the consolidated balance sheet as “Noncurrent assets held for sale due to settlement”, and depreciation ceased as of the classification date. The transaction does not qualify as a discontinued operation under ASC 205-20, as it does not represent a strategic shift in the Company’s operations nor was the asset a separate reportable segment.