(15) East Providence Incidents

In January 2026, there was a fire at our manufacturing facility in East Providence, Rhode Island (the January 2026 Incident). The January 2026 Incident damaged one of our emissions control units and rendered it inoperable.

On April 8, 2026, an explosion occurred at the Company's manufacturing facility in East Providence, Rhode Island that resulted in damage to a portion of the facility’s production space, including certain of the Company's property, plant and equipment, and the temporary cessation of operations (the April 2026 Incident, and together with the January 2026 Incident, the East Providence Incidents). On May 14, 2026, the Company initiated a staged restart of the facility.

The total amount of losses associated with the East Providence Incidents, including business interruption, cannot be reasonably estimated at this time. The Company maintains property damage and business interruption insurance coverage and expects certain losses resulting from the incident to be recoverable under its insurance policies, subject to policy terms, conditions, and deductibles.

During the three and six months ended June 30, 2026, the Company recognized a loss of $8.9 million related to damaged property, plant and equipment and recorded a corresponding receivable for estimated insurance recovery of $8.9 million, which is included in other income in the accompanying consolidated statements of operations. The insurance receivable reflects the net book value of the damaged assets. Any insurance proceeds received in excess of the net book value of the related assets will be recognized as a gain when realization of such amounts is deemed probable and reasonably estimable.

The Company incurred approximately $5.3 million of incremental costs associated with the East Providence Incidents during the three and six months ended June 30, 2026. These costs are reflected in the accompanying consolidated statements of operations primarily within cost of revenue.