HLLYMEDIUM SIGNALRISK10-K

HLLY has transitioned away from emerging growth company status while adding new risk disclosures around inflation, fuel costs, and labor challenges alongside deteriorating cash position.

The company's removal of JOBS Act language indicates it has matured beyond emerging growth company thresholds, suggesting increased regulatory compliance requirements and investor scrutiny. The addition of specific risk factors around fuel costs impacting powered vehicle usage and labor retention challenges signals management is identifying new operational headwinds that could affect future performance.

Comparing 2026-03-16 vs 2025-03-14View on EDGAR →
FINANCIAL ANALYSIS

HLLY shows mixed financial health with gross profit growing modestly to $266.2M while operating expenses increased proportionally. However, the company's cash position declined notably to $37.2M from $56.1M, while current liabilities rose 21% and interest expense grew substantially to $60.7M. The combination of higher capital expenditures, increased debt servicing costs, and reduced cash reserves suggests tightening liquidity conditions that warrant monitoring.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+81.1%
$6.8M→$12.3M

Capital expenditure jumped 81.1% — major investment cycle underway; assess returns on deployment.

Interest Expense
P&L
+51%
$40.2M→$60.7M

Interest expense surged 51% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
-33.6%
$56.1M→$37.2M

Cash declined 33.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Current Liabilities
Balance Sheet
+21%
$95.2M→$115.1M

Current liabilities rose 21% — increased short-term obligations, watch current ratio.

Gross Profit
P&L
+11.6%
$238.5M→$266.2M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

SG&A Expense
P&L
+10.6%
$132.1M→$146.1M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

LANGUAGE CHANGES
NEW — 2026-03-16
PRIOR — 2025-03-14
ADDED
There were 120,941,585 shares of Common Stock, including 1,093,750 re stricted earn-out shares, par value $0.0001 per share, issued and outstanding as of March 9, 2026 .
tax laws and regulations, including the impact on deferred tax assets; anticipate the impact of changes in consumer spending patterns, consumer preferences, local, regional and national economic conditions, crime, weather, and demographic trends; and respond to other risks and factors, listed under the caption Risk Factors included in this Annual Report on Form 10-K, and/or as disclosed in any subsequent filings with the SEC.
Inflation and tariffs could result in higher costs and decreased profitability and our revenue and results of operations may be materially affected.
Fuel shortages, or high fuel prices, could have a negative effect on the use of powered vehicles that use our products.
Our success depends on the continuing efforts of our employees and retention of skilled personnel, and our results of operations may be adversely affected by labor shortages, turnover and labor cost increases.
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REMOVED
See Note 2, "Business Combination, Acquisitions, and Divestiture" Includes professional fees for legal, accounting, consulting, administrative, and other professional services directly attributable to acquisitions.
Write-off of obsolete inventory, net of inventory adjustments.
There were 119,958,936 shares of Common Stock, including 1,093,750 restricted earn-out shares, par value $0.0001 per share, issued and outstanding as of March 11, 2025.
laws and regulations, including the impact on deferred tax assets; anticipate the time during which we will be an emerging growth company under the Jumpstart Our Business Startups Act of 2012 (the JOBS Act ); anticipate the impact of changes in consumer spending patterns, consumer preferences, local, regional and national economic conditions, crime, weather, and demographic trends; and other risks and factors, listed under the caption Risk Factors included in this Annual Report on Form 10-K, and/or as disclosed in any subsequent filings with the SEC.
Inflation and tariffs could result in higher costs and decreased profitability.
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