Sypris Solutions (SYPR) 10-Q15 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 05, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	0-24020
Entity Registrant Name	SYPRIS SOLUTIONS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	61-1321992
Entity Address, Address Line One	101 Bullitt Lane, Suite 450
Entity Address, City or Town	Louisville
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40222
City Area Code	502
Local Phone Number	329-2000
Title of 12(b) Security	Common Stock
Trading Symbol	SYPR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		22,774,128
Entity Central Index Key	0000864240
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Net revenue	$ 35,553	$ 32,292
Cost of sales	32,669	28,131
Gross profit	2,884	4,161
Selling, general and administrative	4,258	3,745
Operating (loss) income	(1,374)	416
Interest expense, net	318	226
Other expense, net	341	71
Income (loss) before taxes	(2,033)	119
Income tax expense	188	294
Loss per share:
Net income (loss)	$ (2,221)	$ (175)
Basic (in dollars per share)	$ (0.1)	$ (0.01)
Diluted (in dollars per share)	$ (0.1)	$ (0.01)
Weighted average shares outstanding:
Basic (in shares)	21,965	21,796
Diluted (in shares)	21,965	21,796
Dividends declared per common share (in dollars per share)	$ 0	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Net income (loss)	$ (2,221)	$ (175)
Other comprehensive (loss) income
Foreign currency translation adjustments	405	1,373
Comprehensive income (loss)	$ (1,816)	$ 1,198

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Cash and cash equivalents	$ 8,096,000	$ 7,881,000
Accounts receivable, net	13,093,000	8,929,000
Inventory, net	70,890,000	77,314,000
Other current assets	10,777,000	9,743,000
Total current assets	102,856,000	103,867,000
Property, plant and equipment, net	16,706,000	17,133,000
Operating lease right-of-use assets	4,617,000	3,309,000
Other assets	4,866,000	5,033,000
Total assets	129,045,000	129,342,000
Accounts payable	26,530,000	26,737,000
Accrued liabilities	56,314,000	56,232,000
Operating lease liabilities, current portion	1,122,000	1,068,000
Finance lease obligations, current portion	1,404,000	1,327,000
Equipment financing obligations, current portion	591,000	618,000
Working capital line of credit	500,000	500,000
Note payable – related party, current portion	2,000,000	0
Total current liabilities	88,461,000	86,482,000
Operating lease liabilities, net of current portion	3,868,000	2,642,000
Finance lease obligations, net of current portion	1,647,000	1,852,000
Equipment financing obligations, net of current portion	1,197,000	1,333,000
Note payable – related party, net of current portion	6,980,000	6,484,000
Other liabilities	6,043,000	8,082,000
Total liabilities	108,196,000	106,875,000
Preferred stock	0	0
Additional paid-in capital	156,439,000	156,242,000
Accumulated deficit	(119,153,000)	(116,932,000)
Accumulated other comprehensive loss	(16,662,000)	(17,067,000)
Treasury stock, 19 shares in 2023 and 2022	0	0
Total stockholders’ equity	20,849,000	22,467,000
Total liabilities and stockholders’ equity	129,045,000	129,342,000
Series A Preferred Stock [Member]
Preferred stock	0	0
Nonvoting Common Stock [Member]
Common stock	0	0
Common Stock [Member]
Common stock	$ 225,000	$ 224,000

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	975,150	975,150
Preferred Stock, Shares Issued (in shares)	0	0
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	24,850	24,850
Preferred Stock, Shares Issued (in shares)	0	0
Nonvoting Common Stock [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (in shares)	10,000,000	10,000,000
Common Stock, Shares, Issued (in shares)	0	0
Common Stock [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (in shares)	30,000,000	30,000,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Cash flows from operating activities:
Net income (loss)	$ (2,221)	$ (175)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	845	774
Deferred income taxes	39	(136)
Stock-based compensation expense	197	263
Deferred loan costs recognized	2	2
Provision for excess and obsolete inventory	73	(87)
Non-cash lease expense	293	179
Other noncash items	69	33
Contributions to pension plans	0	(10)
Accounts receivable	(4,326)	(2,691)
Inventory	6,405	(9,942)
Other current assets	(866)	154
Accounts payable	(208)	3,118
Accrued and other liabilities	(2,011)	7,277
Net cash provided by (used in) operating activities	(1,709)	(1,241)
Capital expenditures	(316)	(708)
Net cash used in investing activities	(316)	(708)
Proceeds from debt facilities	198	210
Proceeds from note payable – related party	2,500	0
Principal payments on finance lease obligations	(324)	(271)
Principal payments on equipment financing obligations	(164)	(95)
Indirect repurchase of shares for minimum statutory tax withholdings	0	(48)
Net cash provided by (used in) financing activities	2,210	(204)
Effect of exchange rate changes on cash balances	30	(14)
Net decrease in cash and cash equivalents	215	(2,167)
Cash and cash equivalents at beginning of period	7,881	21,648
Cash and cash equivalents at end of period	8,096	19,481
Fixed assets acquired with equipment financing loan	$ 0	$ 792

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock Outstanding [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Common [Member]	Total
Balance (in shares) at Dec. 31, 2022	22,175,645
Balance at Dec. 31, 2022	$ 221	$ 155,535	$ (115,336)	$ (20,845)	$ 0
Net income (loss)	0	0	(175)	0	0	$ (175)
Foreign currency translation adjustment	$ 0	0	0	1,373	0
Issuance of restricted common stock (in shares)	160,000
Issuance of restricted common stock	$ 2	(2)	0	0	0
Exercise of stock options (in shares)	45,198
Exercise of stock options	$ 1	(48)	0	0	0
Noncash compensation (in shares)	15,000
Noncash compensation	$ 0	263	0	0	0
Balance (in shares) at Apr. 02, 2023	22,395,843
Balance at Apr. 02, 2023	$ 224	155,748	(115,511)	(19,472)	0
Balance (in shares) at Dec. 31, 2023	22,459,649,000
Balance at Dec. 31, 2023	$ 224	156,242	(116,932)	(17,067)	0	22,467
Net income (loss)	0	0	(2,221)	0	0	(2,221)
Foreign currency translation adjustment	$ 0	0	0	405	0
Issuance of restricted common stock (in shares)	10,000,000
Issuance of restricted common stock	$ 0	0	0	0	0
Exercise of stock options (in shares)	25,443,000
Exercise of stock options	$ 1	1	0	0	0
Noncash compensation (in shares)	15,000,000
Noncash compensation	$ 0	197	0	0	0
Treasury stock (in shares)	(80,000,000)
Treasury stock	$ 0		0	0	0
Treasury stock		(1)
Balance (in shares) at Mar. 31, 2024	22,430,092,000
Balance at Mar. 31, 2024	$ 225	$ 156,439	$ (119,153)	$ (16,662)	$ 0	$ 20,849

Note 1 - Nature of Business

Note 1 - Nature of Business	3 Months Ended
Note 1 - Nature of Business	Mar. 31, 2024
Notes to Financial Statements
Nature of Operations [Text Block]	(1) Nature of Business All references to “Sypris,” the “Company,” “we” or “our” include Sypris Solutions, Inc. and its wholly-owned subsidiaries. Sypris is a diversified provider of truck components, oil and gas pipeline components and aerospace and defense electronics. The Company produces a wide range of manufactured products, often under multi-year, sole-source contracts. The Company offers such products through its two

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	3 Months Ended
Note 2 - Basis of Presentation	Mar. 31, 2024
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	(2) Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Sypris Solutions, Inc. and its wholly-owned subsidiaries and have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. The December 31, 2023 consolidated balance sheet data was derived from audited statements, but does not include all disclosures required by U.S. GAAP. The Company’s operations are domiciled in the United States (U.S.) and Mexico, and we serve a wide variety of domestic and international customers. All intercompany transactions and accounts have been eliminated. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state the results of operations, financial position and cash flows for the periods presented, and the disclosures herein are adequate to make the information presented not misleading. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Changes in facts and circumstances could have a significant impact on the resulting estimated amounts included in our consolidated financial statements. Actual results could differ from these estimates. Actual results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2023 as presented in the Company’s Annual Report on Form 10-K.

Note 3 - Recent Accounting Pron

Note 3 - Recent Accounting Pronouncements	3 Months Ended
Note 3 - Recent Accounting Pronouncements	Mar. 31, 2024
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	(3) Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures.” This guidance requires disclosure of incremental segment information on an annual and interim basis. This amendment is effective for our fiscal year ending December 31, 2024 and subsequent interim periods. We are currently assessing the impact of this guidance on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes: Improvements to Income Tax Disclosures.” This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. This amendment is effective for our fiscal year ending December 31, 2025. We are currently assessing the impact of this guidance on our disclosures. No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our Consolidated Financial Statements.

Note 4 - Leases

Note 4 - Leases	3 Months Ended
Note 4 - Leases	Mar. 31, 2024
Notes to Financial Statements
Lessee, Operating and Finance Leases [Text Block]	(4) Leases The Company determines if an arrangement is a lease at its inception. The Company has entered into operating leases for real estate. These leases have initial terms which range from 10 years to 11 years, and often include one or more options to renew. These renewal terms can extend the lease term by 5 years, and will be included in the lease term when it is reasonably certain that the Company will exercise the option. The Company’s existing leases do not contain significant restrictive provisions; however, certain leases contain provisions for payment of real estate taxes, insurance and maintenance costs by the Company. The lease agreements do not contain any residual value guarantees. Some of the real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. All operating lease expenses are recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the right-of-use asset is amortized over the lease term. Some leases may require variable lease payments based on factors specific to the individual agreements. Variable lease payments for which we are typically responsible include real estate taxes, insurance and common area maintenance expenses based on the Company’s pro-rata share, which are excluded from the measurement of the lease liability. Additionally, one of the Company’s real estate leases has lease payments that adjust based on annual changes in the Consumer Price Index (“CPI”). The leases that are dependent upon CPI are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Incremental payments due to changes in the index are treated as variable lease costs and expensed as incurred. These operating leases are included in “Operating lease right-of-use assets” on the Company’s consolidated balance sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in “Operating lease liabilities, current portion” and “Operating lease liabilities, net of current portion” on the Company’s consolidated balance sheets. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As of March 31, 2024, total right-of-use assets and operating lease liabilities were approximately $4,617,000 and $4,990,000, respectively. As of December 31, 2023, total right-of-use assets and operating lease liabilities were approximately $3,309,000 and $3,710,000, respectively. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at the commencement date, in determining the present value of lease payments. If readily available, we would use the implicit rate in a new lease to determine the present value of lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component. The Company has entered into various short-term operating leases, primarily for office equipment with an initial term of twelve months or less. Lease payments associated with short-term leases are expensed as incurred and are not recorded on the Company’s balance sheet. The related lease expense for short-term leases was not material for the three months ended March 31, 2024 and April 2, 2023. The following table presents information related to lease expense for the three months ended March 31, 2024 and April 2, 2023 (in thousands): Three Months Ended March 31, 2024 April 2, 2023 (Unaudited) Finance lease expense: Amortization expense $ 207 $ 177 Interest expense 67 76 Operating lease expense 351 351 Variable lease expense 89 85 Total lease expense $ 714 $ 689 The following table presents supplemental cash flow information related to leases (in thousands): Three Months Ended March 31, 2024 April 2, 2023 (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 447 $ 444 Operating cash flows from finance leases 67 76 Financing cash flows from finance leases 324 271 The annual future minimum lease payments as of March 31, 2024 are as follows (in thousands): Operating Finance Leases Leases Next 12 months $ 1,499 $ 1,588 12 to 24 months 1,148 1,480 24 to 36 months 1,095 252 36 to 48 months 904 60 48 to 60 months 279 2 Thereafter 1,182 0 Total lease payments 6,107 3,382 Less imputed interest (1,117 ) (331 ) Total $ 4,990 $ 3,051 The following table presents certain information related to lease terms and discount rates for leases as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (Unaudited) Weighted-average remaining lease term (years): Operating leases 5.6 3.6 Finance leases 2.1 2.2 Weighted-average discount rate (percentage): Operating leases 8.4 8.0 Finance leases 8.8 8.8

Note 5 - Revenue From Contracts

Note 5 - Revenue From Contracts With Customers	3 Months Ended
Note 5 - Revenue From Contracts With Customers	Mar. 31, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	(5) Revenue from Contracts with Customers The Company recognizes revenue when it satisfies a performance obligation by transferring control of a promised product or rendering a service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for the product or service (the “transaction price”). The Company’s transaction price in its contracts with customers is generally fixed; no payment discounts, rebates or refunds are included within its contracts. The Company also does not provide service-type warranties nor does it allow customer returns. In connection with the sale of various parts to customers, the Company is subject to typical assurance warranty obligations covering the compliance of the electronics parts produced to agreed-upon specifications. Customer returns, when they occur, relate to quality rework issues and are not connected to any repurchase obligation of the Company. A performance obligation is a promise in a contract to transfer a distinct product or render a service to a customer and is the unit of account to which the transaction price is allocated under ASC 606. When a contract contains multiple performance obligations, we allocate the transaction price to the individual performance obligations using the price at which the promised goods or services would be sold to customers on a standalone basis. For most sales within our Sypris Technologies segment and a portion of sales within Sypris Electronics, control transfers to the customer at a point in time. Indicators that control has transferred to the customer include the Company having a present right to payment, the customer obtaining legal title and the customer having the significant risks and rewards of ownership. The Company’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. For contracts where Sypris Electronics serves as a contractor for aerospace and defense companies under federally funded programs, we generally recognize revenue over time as we perform because of continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contracts that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. Because control is transferred over time, revenue and gross profit is recognized based on the extent of progress towards completion of the performance obligation. We use labor hours incurred as a measure of progress for these contracts because it best depicts the Company’s performance of the obligation to the customer, which occurs as we incur labor on our contracts. Under this measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the performance obligation. Some of Sypris Electronics’ contractual arrangements with customers are for one Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three months ended March 31, 2024 and April 2, 2023 (in thousands): March 31, April 2, 2024 2023 (Unaudited) Sypris Technologies – transferred point in time $ 18,350 $ 19,500 Sypris Electronics – transferred point in time 3,782 4,489 Sypris Electronics – transferred over time 13,421 8,303 Net revenue $ 35,553 $ 32,292 Contract Balances Differences in the timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the consolidated balance sheets. Contract assets Contract liabilities The Company recognized revenue from the amortization of contract liabilities of $7,403,000 and $3,812,000 during the three months ended March 31, 2024 and April 2, 2023, respectively. Practical expedients and exemptions Sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expense in the consolidated statements of operations. We do not disclose the value of unsatisfied performance obligations for contracts with original expected lengths of one year or less.

Note 6 - Loss Per Common Share

Note 6 - Loss Per Common Share	3 Months Ended
Note 6 - Loss Per Common Share	Mar. 31, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	(6) Loss Per Common Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three months ended March 31, 2024 and April 2, 2023, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted loss per common share is as follows (in thousands): Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Loss attributable to stockholders: Net loss as reported $ (2,221 ) $ (175 ) Less distributed and undistributed earnings allocable to restricted awarded holders 0 0 Net loss allocable to common stockholders $ (2,221 ) $ (175 ) Loss per common share attributable to stockholders: Basic $ (0.10 ) $ (0.01 ) Diluted $ (0.10 ) $ (0.01 ) Weighted average shares outstanding – basic 21,965 21,796 Weighted average additional shares assuming conversion of potential common shares 0 0 Weighted average shares outstanding – diluted 21,965 21,796

Note 7 - Inventory

Note 7 - Inventory	3 Months Ended
Note 7 - Inventory	Mar. 31, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	(7) Inventory Inventory consists of the following (in thousands): March 31, December 31, 2024 2023 (Unaudited) Raw materials $ 63,208 $ 67,962 Work in process 8,183 9,027 Finished goods 1,220 1,974 Reserve for excess and obsolete inventory (1,721 ) (1,649 ) Total $ 70,890 $ 77,314

Note 8 - Property, Plant and Eq

Note 8 - Property, Plant and Equipment	3 Months Ended
Note 8 - Property, Plant and Equipment	Mar. 31, 2024
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	(8) Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): March 31, December 31, 2024 2023 (Unaudited) Land and land improvements $ 43 $ 43 Buildings and building improvements 8,568 8,507 Machinery, equipment, furniture and fixtures 75,579 74,588 Construction in progress 617 863 84,807 84,001 Accumulated depreciation (68,101 ) (66,868 ) $ 16,706 $ 17,133

Note 9 - Debt

Note 9 - Debt	3 Months Ended
Note 9 - Debt	Mar. 31, 2024
Notes to Financial Statements
Long-Term Debt [Text Block]	(9) Debt Long-term obligations consists of the following (in thousands): March 31, December 31, 2024 2023 (Unaudited) Current: Finance lease obligation, current portion $ 1,404 $ 1,327 Equipment financing obligations, current portion 591 618 Note payable – related party, current portion 2,000 0 Working capital line of credit 500 500 Current portion of long-term debt and finance lease obligations $ 4,495 $ 2,445 Long Term: Finance lease obligation $ 1,647 $ 1,852 Equipment financing obligations 1,197 1,333 Note payable – related party 7,000 6,500 Less unamortized debt issuance and modification costs (20 ) (16 ) Long-term debt and finance lease obligations, net of unamortized debt costs $ 9,824 $ 9,669 Note Payable Related Party The Company has received the benefit of cash infusions from Gill Family Capital Management, Inc. (“GFCM”) in the form of secured promissory note obligations totaling $9,000,000 in principal as of March 31, 2024 and $6,500,000 as of December 31, 2023 (the “Note”). GFCM is an entity controlled by the Company’s Chairman, President and Chief Executive Officer, Jeffrey T. Gill, and one of our directors, R. Scott Gill. GFCM, Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. As of March 31, 2024, our principal commitment under the Note was $2,000,000 due on April 1, 2025, $2,000,000 on April 1, 2026 and the balance of $5,000,000 due on April 1, 2027. Interest on the Note is reset on April 1 of each year, at the greater of 8.0% or 500 basis points above the five-year Treasury note average during the preceding 90-day period, in each case, payable quarterly, which was 9.56% as of March 31, 2024. The Note allows for a deferral of payment for up to 60% of the interest due on the Note to April 1, 2025. During the first quarter of 2024, the Company amended the Note to increase the principal amount due on April 1, 2027 by $2,500,000. The amendment increased the aggregate amount previously loaned by GFCM to the Company from $6,500,000 to $9,000,000. This additional amount loaned to the Company in the first quarter of 2024 was approved by the Audit Committee and provided the Company necessary liquidity. Obligations under the Note are guaranteed by all of the subsidiaries and are secured by a first priority lien on substantially all assets of the Company, including those in Mexico. Finance Lease Obligations As of March 31, 2024, the Company had $3,051,000 outstanding under finance lease obligations for both property and machinery and equipment at its Sypris Technologies locations with maturities through 2028 and a weighted average interest rate of 8.8%. Equipment Financing Obligations As of March 31, 2024, the Company had $1,788,000 outstanding under equipment financing facilities, with a weighted average interest rate of 6.8% and payments due through 2028. Payments on the Company’s equipment financing obligations are due as follows (in thousands): Next 12 months $ 695 12 to 24 months 521 24 to 36 months 432 36 to 48 months 330 48 to 60 months 36 Thereafter 0 Total payments 2,014 Less imputed interest (226 ) Total equipment financing obligations $ 1,788

Note 10 - Segment Data

Note 10 - Segment Data	3 Months Ended
Note 10 - Segment Data	Mar. 31, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	(10) Segment Data The Company is organized into two The Company includes the unallocated costs of its corporate office, including the employment costs of its senior management team and other corporate personnel, administrative costs and net corporate interest expense incurred at the corporate level under the caption “General, corporate and other” in the table below. Such unallocated costs include those for centralized information technology, finance, legal and human resources support teams, certain professional fees, director fees, corporate office rent, certain self-insurance costs and recoveries, software license fees and various other administrative expenses that are not allocated to our reportable segments. The unallocated assets include cash and cash equivalents maintained in its domestic treasury accounts and the net book value of corporate facilities and related information systems. The unallocated liabilities consist primarily of the related party notes payable. Domestic income taxes are calculated at an entity level and are not allocated to our reportable segments. Corporate capital expenditures and depreciation and amortization include items attributable to the unallocated fixed assets of the corporate office and related information systems. The following table presents financial information for the reportable segments of the Company (in thousands): Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 18,350 $ 19,500 Sypris Electronics 17,203 12,792 Total net revenue $ 35,553 $ 32,292 Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Gross profit: Sypris Technologies $ 2,051 $ 2,639 Sypris Electronics 833 1,522 Total gross profit $ 2,884 $ 4,161 Operating income (loss): Sypris Technologies $ 506 $ 1,161 Sypris Electronics (563 ) 562 General, corporate and other (1,317 ) (1,307 ) Total operating (loss) income $ (1,374 ) $ 416 Income (loss) before taxes: Sypris Technologies $ 150 $ 1,023 Sypris Electronics (628 ) 532 General, corporate and other (1,555 ) (1,436 ) Total (loss) income before taxes $ (2,033 ) $ 119 March 31, December 31, 2024 2023 (Unaudited) Total assets: Sypris Technologies $ 39,518 $ 41,143 Sypris Electronics 82,112 84,576 General, corporate and other 7,415 3,623 Total assets $ 129,045 $ 129,342 Total liabilities: Sypris Technologies $ 21,035 $ 21,309 Sypris Electronics 74,794 77,272 General, corporate and other 12,367 8,294 Total liabilities $ 108,196 $ 106,875

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	3 Months Ended
Note 11 - Commitments and Contingencies	Mar. 31, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	(11) Commitments and Contingencies The provision for estimated warranty costs is recorded at the time of sale and periodically adjusted to reflect actual experience. The Company’s warranty liability, which is included in accrued liabilities in the accompanying consolidated balance sheets as of March 31, 2024 and December 31, 2023 was $831,000 and $805,000, respectively. The Company’s warranty expense for the three months ended March 31, 2024 and April 2, 2023 was not material. The Company bears insurance risk as a member of a group captive insurance entity for certain general liability, automobile and workers’ compensation insurance programs, a self-insured worker’s compensation program and a self-insured employee health program. The Company records estimated liabilities for its insurance programs based on information provided by the third-party plan administrators, historical claims experience, expected costs of claims incurred but not paid, and expected costs to settle unpaid claims. The Company monitors its estimated insurance-related liabilities on a quarterly basis. As facts change, it may become necessary to make adjustments that could be material to the Company’s consolidated results of operations and financial condition. The Company is involved in certain litigation and contract issues arising in the normal course of business. While the outcome of these matters cannot, at this time, be predicted in light of the uncertainties inherent therein, management does not expect that these matters will have a material adverse effect on the consolidated financial position or results of operations of the Company. Additionally, the Company believes its product liability insurance is adequate to cover all potential liability claims. The Company accounts for loss contingencies in accordance with U.S. GAAP. Estimated loss contingencies are accrued only if the loss is probable and the amount of the loss can be reasonably estimated. With respect to a particular loss contingency, it may be probable that a loss has occurred but the estimate of the loss is within a wide range or undeterminable. If the Company deems an amount within the range to be a better estimate than any other amount within the range, that amount will be accrued. However, if no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued. The Company has various current and previously-owned facilities subject to a variety of environmental regulations. The Company has received certain indemnifications from either companies previously owning these facilities or from purchasers of those facilities. Additionally, certain property previously sold by the Company has been designated as a Brownfield Site and is under development by the purchaser. As of March 31, 2024 and December 31, 2023, no amounts were accrued for any environmental matters. On December 27, 2017, the U.S. Department of Labor (the “DOL”) filed a lawsuit alleging that the Company had misinterpreted the language of the Company’s 401(k) Plans (collectively, the “Plan”). The DOL does not dispute that the Company reached such interpretation in good faith and after the Company consulted with independent ERISA counsel. Although the Company maintains that it had affirmative defenses against the DOL’s claims, in an effort to avoid further litigation the Company engaged in settlement discussions in the second half of 2022 with the DOL. On March 14, 2023, the parties jointly delivered to the court a proposed consent order and judgment containing the terms of a settlement agreement, which was entered into the court record on September 28, 2023. The settlement, among other terms, required the Company to pay a restoration payment of $575,000 to the Plan, which was deposited into the Plan’s unallocated asset account during the fourth quarter of 2023 and distributed among affected participants of the Plan in February 2024. The settlement agreement also assessed a 10% penalty under section 502(l) of ERISA, for which the Company requested a good faith waiver in March 2024. On February 17, 2017, several employees (“Lucas Plaintiffs”) of KapStone Charleston Kraft, LLC filed a lawsuit in South Carolina alleging that they had been seriously burned when they opened a hinged closure and a hot tar-like material spilled out. Among other claims, the Lucas Plaintiffs allege that Sypris Technologies designed and manufactured the closure, that the closure was defective and that those defects had caused or contributed to their injuries. Sypris Technologies’ motion to dismiss for lack of jurisdiction was denied on February 28, 2020. On November 21, 2022, the Company received a demand for settlement presented by the Lucas Plaintiffs, which was rejected. On January 12, 2024, a hearing took place for oral arguments in support of Sypris Technologies’ motion for summary judgement previously filed in September 2023. The trial had been set for May 20, 2024, and a mediation of the parties was required to take place prior to the trial under South Carolina law. The Company entered into a settlement agreement on April 18, 2024 with the Lucas Plaintiffs at the pre-trial mediation. The settlement payment is being funded entirely by insurance, and the Company does not expect to pay any amount under the terms of the settlement agreement. Additionally, the Company’s general liability insurer has accepted the defense costs. In order to reduce manufacturing lead times, the Company enters into agreements with certain suppliers to purchase inventory based on the Company’s requirements. A significant portion of the Company’s purchase commitments arising from these agreements consists of firm and non-cancelable commitments. These purchase commitments totaled $41,284,000 as of March 31, 2024, of which $28,389,000 is for purchases to be made in 2024, $12,469,000 in 2025 and the balance in 2026.

Note 12 - Income Taxes

Note 12 - Income Taxes	3 Months Ended
Note 12 - Income Taxes	Mar. 31, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	(12) Income Taxes The provision for income taxes includes federal, state, local and foreign taxes. The Company’s effective tax rate varies from period to period due to the proportion of foreign and domestic pre-tax income expected to be generated by the Company. The Company provides for income taxes for its domestic operations at a statutory rate of 21% in 2024 and 2023 and for its foreign operations at a statutory rate of 30% in 2024 and 2023. Reconciling items between the federal statutory rate and the effective tax rate also include state income taxes, valuation allowances and certain other permanent differences. Additionally, a deferred tax adjustment was recorded in 2024 related to the fixed asset valuation utilized by the Company’s foreign operation which increased the effective tax rate. The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements in accordance with ASC 740, Income Taxes (ASC 740). These temporary differences will result in taxable or deductible amounts in future years when the reported amounts of assets or liabilities are recovered or settled. ASC 740 requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company evaluates its deferred tax position on a quarterly basis and valuation allowances are provided as necessary. During this evaluation, the Company reviews its forecast of income in conjunction with other positive and negative evidence surrounding the realizability of its deferred tax assets to determine if a valuation allowance is needed. Based on the Company’s consideration of all positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations, the Company has established a valuation allowance against all U.S. deferred tax assets. Until an appropriate level and characterization of profitability is attained, the Company expects to continue to maintain a valuation allowance on its net deferred tax assets related to future U.S. tax benefits. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. To the Company’s knowledge, the Internal Revenue Service (IRS) is not currently examining the Company’s U.S. income tax returns for 2020 through 2022, for which the statute has yet to expire. During the first quarter of 2023, the Company’s wholly-owned subsidiary in Mexico received a formal tax assessment notice from Mexico’s Federal Tax Administration Service, Servicio de Administracion Tributaria’s (the “SAT”) pertaining to revenue variances and disallowed deductions related to an audit by the SAT of the 2016 tax year. The tax liability for the variances approximates $1,150,000, which includes annual adjustments for inflation, interest and penalties. The Company believes the variances can be substantially eliminated and has filed an administrative appeal with the SAT and will further pursue all available legal actions in response to this assessment. No amounts have been accrued, as the Company does not believe a loss is probable. In addition, open tax years related to state and foreign jurisdictions remain subject to examination.

Note 13 - Employee Benefit Plan

Note 13 - Employee Benefit Plans	3 Months Ended
Note 13 - Employee Benefit Plans	Mar. 31, 2024
Notes to Financial Statements
Retirement Benefits [Text Block]	(13) Employee Benefit Plans The following table details the components of pension (income) expense (in thousands): Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Service cost $ 0 $ 1 Interest cost on projected benefit obligation 309 210 Net amortizations of actuarial loss 132 140 Expected return on plan assets (177 ) (204 ) Net periodic benefit cost $ 264 $ 147 The net periodic benefit cost of the defined benefit pension plans incurred during the three-month periods ended March 31, 2024 and April 2, 2023 are reflected in the following captions in the accompanying consolidated statements of operations (in thousands): Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Service cost: Selling, general and administrative expenses $ 0 $ 1 Other net periodic benefit costs: Other expense, net 264 146 Total $ 264 $ 147

Note 14 - Accumulated Other Com

Note 14 - Accumulated Other Comprehensive Loss	3 Months Ended
Note 14 - Accumulated Other Comprehensive Loss	Mar. 31, 2024
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	(14) Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss consists of employee benefit related adjustments and foreign currency translation adjustments. Accumulated other comprehensive loss consisted of the following (in thousands): March 31, December 31, 2024 2023 (Unaudited) Foreign currency translation adjustments $ (7,464 ) $ (7,869 ) Employee benefit related adjustments – U.S., net of tax (9,281 ) (9,281 ) Employee benefit related adjustments – Mexico, net of tax 83 83 Accumulated other comprehensive loss $ (16,662 ) $ (17,067 )

Note 15 - Fair Value of Financi

Note 15 - Fair Value of Financial Instruments	3 Months Ended
Note 15 - Fair Value of Financial Instruments	Mar. 31, 2024
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	(15) Fair Value of Financial Instruments Cash, accounts receivable, accounts payable and accrued liabilities are reflected in the consolidated financial statements at their carrying amount which approximates fair value because of the short-term maturity of those instruments. The carrying amount of debt outstanding at March 31, 2024 approximates fair value, and is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments (Level 2).

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5. Other Information During the quarter ended March 31, 2024, no
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Note 4 - Leases (Tables)

Note 4 - Leases (Tables)	3 Months Ended
Note 4 - Leases (Tables)	Mar. 31, 2024
Notes Tables
Lease, Cost [Table Text Block]	Three Months Ended March 31, 2024 April 2, 2023 (Unaudited) Finance lease expense: Amortization expense $ 207 $ 177 Interest expense 67 76 Operating lease expense 351 351 Variable lease expense 89 85 Total lease expense $ 714 $ 689
Supplemental Cash Flow Information Related to Leases [Table Text Block]	Three Months Ended March 31, 2024 April 2, 2023 (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 447 $ 444 Operating cash flows from finance leases 67 76 Financing cash flows from finance leases 324 271
Lessee, Operating and Finance Lease, Liability, Maturity [Table Text Block]	Operating Finance Leases Leases Next 12 months $ 1,499 $ 1,588 12 to 24 months 1,148 1,480 24 to 36 months 1,095 252 36 to 48 months 904 60 48 to 60 months 279 2 Thereafter 1,182 0 Total lease payments 6,107 3,382 Less imputed interest (1,117 ) (331 ) Total $ 4,990 $ 3,051
Lease Terms and Discount Rates for Leases [Table Text Block]	March 31, 2024 December 31, 2023 (Unaudited) Weighted-average remaining lease term (years): Operating leases 5.6 3.6 Finance leases 2.1 2.2 Weighted-average discount rate (percentage): Operating leases 8.4 8.0 Finance leases 8.8 8.8

Note 5 - Revenue From Contrac_2

Note 5 - Revenue From Contracts With Customers (Tables)	3 Months Ended
Note 5 - Revenue From Contracts With Customers (Tables)	Mar. 31, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	March 31, April 2, 2024 2023 (Unaudited) Sypris Technologies – transferred point in time $ 18,350 $ 19,500 Sypris Electronics – transferred point in time 3,782 4,489 Sypris Electronics – transferred over time 13,421 8,303 Net revenue $ 35,553 $ 32,292

Note 6 - Loss Per Common Share

Note 6 - Loss Per Common Share (Tables)	3 Months Ended
Note 6 - Loss Per Common Share (Tables)	Mar. 31, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Loss attributable to stockholders: Net loss as reported $ (2,221 ) $ (175 ) Less distributed and undistributed earnings allocable to restricted awarded holders 0 0 Net loss allocable to common stockholders $ (2,221 ) $ (175 ) Loss per common share attributable to stockholders: Basic $ (0.10 ) $ (0.01 ) Diluted $ (0.10 ) $ (0.01 ) Weighted average shares outstanding – basic 21,965 21,796 Weighted average additional shares assuming conversion of potential common shares 0 0 Weighted average shares outstanding – diluted 21,965 21,796

Note 7 - Inventory (Tables)

Note 7 - Inventory (Tables)	3 Months Ended
Note 7 - Inventory (Tables)	Mar. 31, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, December 31, 2024 2023 (Unaudited) Raw materials $ 63,208 $ 67,962 Work in process 8,183 9,027 Finished goods 1,220 1,974 Reserve for excess and obsolete inventory (1,721 ) (1,649 ) Total $ 70,890 $ 77,314

Note 8 - Property, Plant and _2

Note 8 - Property, Plant and Equipment (Tables)	3 Months Ended
Note 8 - Property, Plant and Equipment (Tables)	Mar. 31, 2024
Notes Tables
Property, Plant and Equipment [Table Text Block]	March 31, December 31, 2024 2023 (Unaudited) Land and land improvements $ 43 $ 43 Buildings and building improvements 8,568 8,507 Machinery, equipment, furniture and fixtures 75,579 74,588 Construction in progress 617 863 84,807 84,001 Accumulated depreciation (68,101 ) (66,868 ) $ 16,706 $ 17,133

Note 9 - Debt (Tables)

Note 9 - Debt (Tables)	3 Months Ended
Note 9 - Debt (Tables)	Mar. 31, 2024
Notes Tables
Schedule of Long-Term Debt Instruments [Table Text Block]	March 31, December 31, 2024 2023 (Unaudited) Current: Finance lease obligation, current portion $ 1,404 $ 1,327 Equipment financing obligations, current portion 591 618 Note payable – related party, current portion 2,000 0 Working capital line of credit 500 500 Current portion of long-term debt and finance lease obligations $ 4,495 $ 2,445 Long Term: Finance lease obligation $ 1,647 $ 1,852 Equipment financing obligations 1,197 1,333 Note payable – related party 7,000 6,500 Less unamortized debt issuance and modification costs (20 ) (16 ) Long-term debt and finance lease obligations, net of unamortized debt costs $ 9,824 $ 9,669
Finance Lease, Liability, to be Paid, Maturity [Table Text Block]	Next 12 months $ 695 12 to 24 months 521 24 to 36 months 432 36 to 48 months 330 48 to 60 months 36 Thereafter 0 Total payments 2,014 Less imputed interest (226 ) Total equipment financing obligations $ 1,788

Note 10 - Segment Data (Tables)

Note 10 - Segment Data (Tables)	3 Months Ended
Note 10 - Segment Data (Tables)	Mar. 31, 2024
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 18,350 $ 19,500 Sypris Electronics 17,203 12,792 Total net revenue $ 35,553 $ 32,292
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Gross profit: Sypris Technologies $ 2,051 $ 2,639 Sypris Electronics 833 1,522 Total gross profit $ 2,884 $ 4,161 Operating income (loss): Sypris Technologies $ 506 $ 1,161 Sypris Electronics (563 ) 562 General, corporate and other (1,317 ) (1,307 ) Total operating (loss) income $ (1,374 ) $ 416 Income (loss) before taxes: Sypris Technologies $ 150 $ 1,023 Sypris Electronics (628 ) 532 General, corporate and other (1,555 ) (1,436 ) Total (loss) income before taxes $ (2,033 ) $ 119 March 31, December 31, 2024 2023 (Unaudited) Total assets: Sypris Technologies $ 39,518 $ 41,143 Sypris Electronics 82,112 84,576 General, corporate and other 7,415 3,623 Total assets $ 129,045 $ 129,342 Total liabilities: Sypris Technologies $ 21,035 $ 21,309 Sypris Electronics 74,794 77,272 General, corporate and other 12,367 8,294 Total liabilities $ 108,196 $ 106,875

Note 13 - Employee Benefit Pl_2

Note 13 - Employee Benefit Plans (Tables)	3 Months Ended
Note 13 - Employee Benefit Plans (Tables)	Mar. 31, 2024
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Service cost $ 0 $ 1 Interest cost on projected benefit obligation 309 210 Net amortizations of actuarial loss 132 140 Expected return on plan assets (177 ) (204 ) Net periodic benefit cost $ 264 $ 147
Net Periodic Benefit Cost Recognized in Income Statement [Table Text Block]	Three Months Ended March 31, April 2, 2024 2023 (Unaudited) Service cost: Selling, general and administrative expenses $ 0 $ 1 Other net periodic benefit costs: Other expense, net 264 146 Total $ 264 $ 147

Note 14 - Accumulated Other C_2

Note 14 - Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
Note 14 - Accumulated Other Comprehensive Loss (Tables)	Mar. 31, 2024
Notes Tables
Schedule of Stockholders Equity [Table Text Block]	March 31, December 31, 2024 2023 (Unaudited) Foreign currency translation adjustments $ (7,464 ) $ (7,869 ) Employee benefit related adjustments – U.S., net of tax (9,281 ) (9,281 ) Employee benefit related adjustments – Mexico, net of tax 83 83 Accumulated other comprehensive loss $ (16,662 ) $ (17,067 )

Note 1 - Nature of Business (De

Note 1 - Nature of Business (Details Textual)	3 Months Ended
Note 1 - Nature of Business (Details Textual)	Mar. 31, 2024
Number of Operating Segments	2

Note 4 - Leases (Details Textua

Note 4 - Leases (Details Textual) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Lessee, Operating Lease, Renewal Term	5 years
Operating Lease, Right-of-Use Asset	$ 4,617,000	$ 3,309,000
Operating Lease, Liability, Total	$ 4,990,000	$ 3,710,000
Minimum [Member]
Lessee, Operating Lease, Term of Contract	10 years
Maximum [Member]
Lessee, Operating Lease, Term of Contract	11 years

Note 4 - Leases - Lease Expense

Note 4 - Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Amortization expense	$ 207	$ 177
Interest expense	67	76
Operating lease expense	351	351
Variable lease expense	89	85
Total lease expense	$ 714	$ 689

Note 4 - Leases - Supplemental

Note 4 - Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Operating cash flows from operating leases	$ 447	$ 444
Operating cash flows from finance leases	67	76
Financing cash flows from finance leases	$ 324	$ 271

Note 4 - Leases - Maturities of

Note 4 - Leases - Maturities of Lease Liabilities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Next 12 months, operating leases	$ 1,499,000
12 to 24 months, operating leases	1,148,000
24 to 36 months, operating leases	1,095,000
36 to 48 months, operating leases	904,000
48 to 60 months, operating leases	279,000
Thereafter, operating leases	1,182,000
Total lease payments, operating leases	6,107,000
Less imputed interest, operating leases	(1,117,000)
Total, operating leases	4,990,000	$ 3,710,000
Finance Leases Excluding Equipment Financing Obligations [Member]
Next 12 months, finance leases	1,588,000
12 to 24 months, finance leases	1,480,000
24 to 36 months, finance leases	252,000
36 to 48 months, finance leases	60,000
48 to 60 months, finance leases	2,000
Thereafter, finance leases	0
Total lease payments, finance leases	3,382,000
Less imputed interest, finance leases	(331,000)
Total, finance leases	$ 3,051,000

Note 4 - Leases - Information R

Note 4 - Leases - Information Related to Lease Terms and Discount Rates (Details)	Mar. 31, 2024	Dec. 31, 2023
Operating leases (Year)	5 years 7 months 6 days	3 years 7 months 6 days
Finance leases (Year)	2 years 1 month 6 days	2 years 2 months 12 days
Operating leases	8.40%	8%
Finance leases	8.80%	8.80%

Note 5 - Revenue From Contrac_3

Note 5 - Revenue From Contracts With Customers 1 (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023	Dec. 31, 2023
Revenue, Remaining Performance Obligation, Amount	$ 90,921,000
Contract with Customer, Liability	51,732,000		$ 53,537,000
Contract with Customer, Liability, Revenue Recognized from Contract Liabilities	7,403,000	$ 3,812,000
Accrued Liabilities [Member]
Contract with Customer, Liability, Current	50,069,000		49,738,000
Other Noncurrent Liabilities [Member]
Contract with Customer, Liability, Noncurrent	$ 1,663,000		$ 3,799,000

Note 5 - Revenue From Contrac_4

Note 5 - Revenue From Contracts With Customers 2 (Details Textual) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-03	Mar. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Percentage	80%

Note 5 - Revenue From Contrac_5

Note 5 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Net revenue	$ 35,553	$ 32,292
Sypris Technologies [Member]
Net revenue	18,350	19,500
Sypris Technologies [Member] \| Transferred at Point in Time [Member]
Net revenue	18,350	19,500
Sypris Electronics [Member]
Net revenue	17,203	12,792
Sypris Electronics [Member] \| Transferred at Point in Time [Member]
Net revenue	3,782	4,489
Sypris Electronics [Member] \| Transferred over Time [Member]
Net revenue	$ 13,421	$ 8,303

Note 6 - Loss Per Common Shar_2

Note 6 - Loss Per Common Share - Reconciliation of Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Net income (loss) income as reported	$ (2,221)	$ (175)
Less distributed and undistributed earnings allocable to restricted award holders	0	0
Net income (loss) allocable to common stockholders	$ (2,221)	$ (175)
Basic (in dollars per share)	$ (0.1)	$ (0.01)
Diluted (in dollars per share)	$ (0.1)	$ (0.01)
Basic (in shares)	21,965	21,796
Weighted average additional shares assuming conversion of potential common shares (in shares)	0	0
Weighted average shares outstanding – diluted (in shares)	21,965	21,796

Note 7 - Inventory - Inventory

Note 7 - Inventory - Inventory Components (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Raw materials	$ 63,208	$ 67,962
Work in process	8,183	9,027
Finished goods	1,220	1,974
Reserve for excess and obsolete inventory	(1,721)	(1,649)
Total	$ 70,890	$ 77,314

Note 8 - Property, Plant and _3

Note 8 - Property, Plant and Equipment - Property, Plant and Equipment Components (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Gross property, plant and equipment	$ 84,807	$ 84,001
Accumulated depreciation	(68,101)	(66,868)
Property, Plant and Equipment, Net	16,706	17,133
Land and Land Improvements [Member]
Gross property, plant and equipment	43	43
Building and Building Improvements [Member]
Gross property, plant and equipment	8,568	8,507
Property, Plant and Equipment, Other Types [Member]
Gross property, plant and equipment	75,579	74,588
Construction in Progress [Member]
Gross property, plant and equipment	$ 617	$ 863

Note 9 - Debt (Details Textual)

Note 9 - Debt (Details Textual) - USD ($)	3 Months Ended
Note 9 - Debt (Details Textual) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Machinery at Sypris Technologies Facility [Member]
Finance Lease, Liability	$ 3,051,000
Machinery at Sypris Technologies Facility [Member] \| Finance Lease Obligations [Member]
Debt, Weighted Average Interest Rate	8.80%
Promissory Notes with Maturity on April 1, 2021 and April 1, 2023 [Member] \| Gill Family Capital Management [Member]
Subordinated Debt, Ending Balance	$ 9,000,000	$ 6,500,000
Debt Instrument, Interest Rate, Stated Percentage	9.56%
Promissory Notes with Maturity on April 1, 2021 and April 1, 2023 [Member] \| Gill Family Capital Management [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage	8%
Promissory Note [Member] \| Gill Family Capital Management [Member] \| Minimum [Member] \| Five-year Treasury Note Average During Preceding 90-day Period [Member]
Debt Instrument, Basis Spread on Variable Rate	5%
Promissory Notes With Maturity On April 1, 2024 And April 1, 2026 [Member] \| Gill Family Capital Management [Member]
Debt Instrument, Maximum Allowance of Interest Due on Deferred Payments, Percent	60%
Debt Instrument, Increase (Decrease), Net	$ 2,500,000
Equipment Financing Obligations [Member]
Finance Lease, Liability	1,788,000
Long-Term Debt	$ 1,788,000
Debt Instrument, Interest Rate, Effective Percentage	6.80%

Note 9 - Debt - Debt Components

Note 9 - Debt - Debt Components (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finance lease obligations, current portion	$ 1,404	$ 1,327
Equipment financing obligations, current portion	591	618
Note payable – related party, current portion	2,000	0
Working capital line of credit	500	500
Current portion of long-term debt and finance lease obligations	4,495	2,445
Finance lease obligations, net of current portion	1,647	1,852
Equipment financing obligations	1,197	1,333
Less unamortized debt issuance and modification costs	(20)	(16)
Long-term debt and finance lease obligations, net of unamortized debt costs	9,824	9,669
Related Party [Member]
Note payable – related party, current portion	2,000	0
Note payable – related party	$ 7,000	$ 6,500

Note 9 - Debt - Maturities of E

Note 9 - Debt - Maturities of Equipment Financing Obligations (Details) - Equipment Financing Obligations [Member]	Mar. 31, 2024 USD ($)
Next 12 months	$ 695,000
12 to 24 months	521,000
24 to 36 months	432,000
36 to 48 months	330,000
48 to 60 months	36,000
Thereafter	0
Total lease payments, finance leases	2,014,000
Less imputed interest, finance leases	(226,000)
Total, finance leases	$ 1,788,000

Note 10 - Segment Data (Details

Note 10 - Segment Data (Details Textual)	3 Months Ended
Note 10 - Segment Data (Details Textual)	Mar. 31, 2024
Number of Operating Segments	2
Intersegment Eliminations [Member]
Number of Operating Segments	2

Note 10 - Segment Data - Financ

Note 10 - Segment Data - Financial Information From Reportable Segments - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Net revenue from unaffiliated customers	$ 35,553	$ 32,292
Sypris Technologies [Member]
Net revenue from unaffiliated customers	18,350	19,500
Sypris Electronics [Member]
Net revenue from unaffiliated customers	$ 17,203	$ 12,792

Note 10 - Segment Data - Fina_2

Note 10 - Segment Data - Financial Information From Reportable Segments - Balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023	Dec. 31, 2023
Total gross profit	$ 2,884	$ 4,161
Total assets	129,045		$ 129,342
Total operating income	(1,374)	416
Total liabilities	108,196		106,875
Total income (loss) before income taxes	(2,033)	119
Sypris Technologies [Member]
Total gross profit	2,051	2,639
Total assets	39,518		41,143
Total operating income	506	1,161
Total liabilities	21,035		21,309
Total income (loss) before income taxes	150	1,023
Sypris Electronics [Member]
Total gross profit	833	1,522
Total assets	82,112		84,576
Total operating income	(563)	562
Total liabilities	74,794		77,272
Total income (loss) before income taxes	(628)	532
Corporate Segment and Other Operating Segment [Member]
Total assets	7,415		3,623
Total operating income	(1,317)	(1,307)
Total liabilities	12,367		$ 8,294
Total income (loss) before income taxes	$ (1,555)	$ (1,436)

Note 11 - Commitments and Con_2

Note 11 - Commitments and Contingencies (Details Textual) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Standard and Extended Product Warranty Accrual	$ 831,000	$ 805,000
Inventories [Member]
Purchase Obligation	41,284,000
Purchase Obligation, to be Paid, Year One	28,389,000
Purchase Obligation, to be Paid, Year Two	12,469,000
DOL [Member]
Estimated Litigation Liability	$ 575,000

Note 12 - Income Taxes (Details

Note 12 - Income Taxes (Details Textual) - USD ($)		3 Months Ended
Note 12 - Income Taxes (Details Textual) - USD ($)	Feb. 23, 2023	Mar. 31, 2024	Apr. 02, 2023
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21%	21%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent		30%	30%
Foreign Tax Jurisdiction [Member] \| Mexican Tax Authority [Member]
Tax Assessment of the Company	$ 1,150,000

Note 13 - Employee Benefit Pl_3

Note 13 - Employee Benefit Plans - Components of Pension Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Service cost	$ 0	$ 1
Interest cost on projected benefit obligation	309	210
Net amortizations of actuarial loss	132	140
Expected return on plan assets	(177)	(204)
Net periodic benefit cost	$ 264	$ 147

Note 13 - Employee Benefit Pl_4

Note 13 - Employee Benefit Plans - Net Periodic Benefit Cost Recognized in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Selling, general and administrative expenses	$ 0	$ 1
Other expense (income), net	264	146
Total	264	147
Approximation [Member]
Total	$ 264	$ 147

Note 14 - Accumulated Other C_3

Note 14 - Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Foreign currency translation adjustments	$ (7,464)	$ (7,869)
Accumulated other comprehensive loss	(16,662)	(17,067)
UNITED STATES
Employee benefit related adjustments – U.S., net of tax	(9,281)	(9,281)
Foreign Plan [Member]
Employee benefit related adjustments – U.S., net of tax	$ 83	$ 83