Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Entity Registrant Name | TAT TECHNOLOGIES LTD |
Entity Central Index Key | 0000808439 |
Document Type | 20-F |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 0-16050 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | Hamelacha 5 |
Entity Address, City or Town | Netanya |
Entity Address, Postal Zip Code | 4250540 |
Entity Address Country | IL |
Title of 12(b) Security | Ordinary Shares, NIS 0.90 Par Value |
Trading Symbol | TATT |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 10,102,612 |
Entity Well-Known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | Kesselman & Kesselman |
Auditor Location | Tel-Aviv, Israel |
Auditor Firm Id | 1309 |
Document Financial Statement Error Correction [Flag] | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Ehud Ben-Yair |
Contact Personnel Email Address | ehudb@tat-technologies.com |
Entity Address, Address Line One | Hamelacha 5 St |
Entity Address, City or Town | Natanya |
Entity Address, Postal Zip Code | 4250540 |
Entity Address Country | IL |
City Area Code | 972 |
Local Phone Number | 54-4522565 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 15,979 | $ 7,722 | |
Accounts receivable, net of allowance for credit losses of $345 and $527 thousand as of December 31, 2023 and December 31, 2022 respectively | 20,009 | 15,622 | |
Restricted deposit | 661 | 0 | |
Other current assets and prepaid expenses | 6,397 | 6,047 | |
Inventory | [1] | 51,280 | 45,759 |
Total current assets | 94,326 | 75,150 | |
NON-CURRENT ASSETS: | |||
Restricted deposit | 302 | 304 | |
Investment in affiliates | 2,168 | 1,665 | |
Funds in respect of employee rights upon retirement | 664 | 780 | |
Deferred income taxes | 994 | 1,229 | |
Property, plant and equipment, net | 42,554 | 43,423 | |
Operating lease right of use assets | 2,746 | 2,477 | |
Intangible assets, net | 1,823 | 1,623 | |
Total non-current assets | 51,251 | 51,501 | |
Total assets | 145,577 | 126,651 | |
CURRENT LIABILITIES: | |||
Current maturities of long-term loans | 2,200 | 1,876 | |
Credit line from bank | 12,138 | 6,101 | |
Accounts payable | 9,988 | 10,233 | |
Accrued expenses and other | 13,952 | 9,876 | |
Operating lease liabilities | 1,033 | 904 | |
Total current liabilities | 39,311 | 28,990 | |
NON-CURRENT LIABILITIES: | |||
Long-term loans | 12,886 | 19,408 | |
Liability in respect of employee rights upon retirement | 1,000 | 1,148 | |
Operating lease liabilities | 1,697 | 1,535 | |
Total non-current liabilities | 15,583 | 22,091 | |
COMMITMENTS AND CONTINGENCIES | |||
Total liabilities | 54,894 | 51,081 | |
EQUITY: | |||
Ordinary shares of NIS 0.9 par value: Authorized: 13,000,000 shares at December 31, 2023 and at December 31, 2022; Issued: 10,377,085 and 9,186,019 shares at December 31, 2023 and at December 31, 2022 respectively; Outstanding: 10,102,612 and 8,911,546 shares at December 31, 2023 and at December 31, 2022 respectively | 3,140 | 2,842 | |
Additional paid-in capital | 76,335 | 66,245 | |
Treasury shares, at cost, 274,473 shares at December 31, 2023 and 2022 | (2,088) | (2,088) | |
Accumulated other comprehensive income (loss) | 27 | (26) | |
Retained earnings | 13,269 | 8,597 | |
Total shareholders' equity | 90,683 | 75,570 | |
Total liabilities and shareholders' equity | $ 145,577 | $ 126,651 | |
[1]The total amount of Rotables included in the Company spare parts inventory for the years ended December 31, 2022 and 2021 were $8,193 and $8,623, respectively. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss, current | $ 345 | $ 527 |
Ordinary shares, shares authorized | 13,000,000 | 13,000,000 |
Ordinary shares, shares issued | 10,377,085 | 9,186,019 |
Ordinary shares, shares outstanding | 10,102,612 | 8,911,546 |
Treasury Shares, shares | 274,473 | 274,473 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL 1) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value per share | ₪ 0.9 | ₪ 0.9 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenues | $ 113,794 | $ 84,556 | $ 77,973 |
Cost of revenue, net: | |||
Total cost of revenues | 91,326 | 68,628 | 66,703 |
Gross profit | 22,468 | 15,928 | 11,270 |
Operating expenses: | |||
Research and development, net | 715 | 479 | 517 |
Selling and marketing, net | 5,523 | 5,629 | 5,147 |
General and administrative, net | 10,588 | 9,970 | 8,354 |
Other (income) expenses | (433) | (90) | (468) |
Restructuring expenses, net | 0 | 1,715 | 1,755 |
Total operating expenses | 16,393 | 17,703 | 15,305 |
Operating income (loss) | 6,075 | (1,775) | (4,035) |
Interest expenses | (1,683) | (902) | (250) |
Other financial income (expenses), net | 353 | 1,029 | (290) |
Income profit (loss) before taxes on income (tax benefit) | 4,745 | (1,648) | (4,575) |
Taxes on income (tax benefit) | 576 | 98 | (662) |
Profit (Loss) before share of equity investment | 4,169 | (1,746) | (3,913) |
Share in profit (losses) of equity investment of affiliated companies | 503 | 184 | (76) |
Net income (loss) from continued operation | 4,672 | (1,562) | (3,989) |
Net income (loss) from discontinued operation | 0 | 427 | |
Net income (loss) | $ 4,672 | $ (1,562) | $ (3,562) |
Net income (loss) per share from continued operation —basic | $ 0.52 | $ (0.175) | $ (0.45) |
Net income (loss) per share from continued operation —diluted | 0.51 | (0.175) | (0.45) |
Net income (loss) per share from discontinued operation - basic and diluted | 0 | 0 | 0.05 |
Net income (loss) per share — basic | 0.52 | (0.175) | (0.4) |
Net income (loss) per share — diluted | $ 0.51 | $ (0.175) | $ (0.4) |
Weighted average number of shares outstanding: | |||
Weighted average shares outstanding - basic | 8,961,689 | 8,911,546 | 8,874,696 |
Weighted average shares outstanding - diluted | 9,084,022 | 8,911,546 | 8,874,696 |
Product [Member] | |||
Revenue: | |||
Total revenues | $ 35,241 | $ 25,460 | $ 25,870 |
Cost of revenue, net: | |||
Total cost of revenues | 30,517 | 21,631 | 23,761 |
Service [Member] | |||
Revenue: | |||
Total revenues | 78,553 | 59,096 | 52,103 |
Cost of revenue, net: | |||
Total cost of revenues | $ 60,809 | $ 46,997 | $ 42,942 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net profit (loss) | $ 4,672 | $ (1,562) | $ (3,562) |
Other comprehensive income (loss), net | |||
Net unrealized gains (losses) from derivatives | 53 | (89) | (76) |
Reclassification adjustments for loss (gains) from derivatives included in net income | 0 | 30 | (19) |
Total other comprehensive income (loss) | 53 | (59) | (95) |
Total comprehensive income (loss) | $ 4,725 | $ (1,621) | $ (3,657) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) $ in Thousands | Ordinary shares [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury shares [Member] | Retained earnings [Member] | Total |
Balance at Dec. 31, 2020 | $ 2,809 | $ 65,711 | $ 128 | $ (2,088) | $ 13,721 | $ 80,281 |
Balance, shares at Dec. 31, 2020 | 9,149,169 | |||||
Comprehensive income (loss) | $ 0 | 0 | (95) | 0 | (3,562) | $ (3,657) |
Exercise of Options, shares | 0 | |||||
Share based compensation | 0 | 160 | 0 | 0 | 0 | $ 160 |
Balance at Dec. 31, 2021 | $ 2,809 | 65,871 | 33 | (2,088) | 10,159 | 76,784 |
Balance, shares at Dec. 31, 2021 | 9,149,169 | |||||
Comprehensive income (loss) | $ 0 | 0 | (59) | 0 | (1,562) | (1,621) |
Exercise of Options | $ 33 | 156 | $ 189 | |||
Exercise of Options, shares | 36,850 | 36,850 | ||||
Share based compensation | $ 0 | 218 | 0 | 0 | 0 | $ 218 |
Balance at Dec. 31, 2022 | $ 2,842 | 66,245 | (26) | (2,088) | 8,597 | 75,570 |
Balance, shares at Dec. 31, 2022 | 9,186,019 | |||||
Comprehensive income (loss) | 53 | 4,672 | 4,725 | |||
Exercise of Options | $ 8 | 157 | 0 | 0 | 0 | $ 165 |
Exercise of Options, shares | 32,466 | 43,386 | ||||
Share based compensation | 159 | $ 159 | ||||
Issuance of common shares net of issuance costs of $141 thousands | $ 290 | 9,774 | 10,064 | |||
Issuance of common shares net of issuance costs of $141 thousands, shares | 1,158,600 | |||||
Balance at Dec. 31, 2023 | $ 3,140 | $ 76,335 | $ 27 | $ (2,088) | $ 13,269 | $ 90,683 |
Balance, shares at Dec. 31, 2023 | 10,377,085 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
issuance costs | $ 141 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) from continued operations | $ 4,672 | $ (1,562) | $ (3,989) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,710 | 3,706 | 4,881 |
Loss (gain) from change in fair value of derivatives | (9) | 8 | (19) |
Change in funds in respect of employee rights upon retirement | 116 | 377 | 76 |
Change in operating right of use asset and operating leasing liability | 22 | (82) | (73) |
Lease modification | 0 | 0 | (1,315) |
Non cash financial expenses | (172) | (902) | 8 |
Increase (decrease) in restructuring plan provision | (126) | (467) | 657 |
change in allowance for credit losses | (182) | 138 | 248 |
Share in results of affiliated companies | (503) | (184) | 76 |
Share based compensation | 159 | 218 | 160 |
Liability in respect of employee rights upon retirement | (148) | (356) | 94 |
Impairment of fixed assets | 0 | 0 | 1,820 |
Capital gain from sale of property, plant and equipment | (530) | (90) | (468) |
Deferred income taxes, net | 235 | 23 | (686) |
Government loan forgiveness | 0 | 0 | (1,442) |
Changes in operating assets and liabilities: | |||
increase in trade accounts receivable | (4,205) | (2,659) | (2,934) |
increase in other current assets and prepaid expenses | (341) | (1,836) | (1,035) |
increase in inventory | (5,400) | (5,069) | (681) |
Increase (decrease) in trade accounts payable | (245) | 1,143 | 2,571 |
Increase (decrease) in accrued expenses and other | 4,202 | 2,727 | (218) |
Net cash provided by (used in) operating activities from continued operation | 2,255 | (4,867) | (2,269) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sale of property and equipment | 2,002 | 93 | 1,163 |
Purchase of property and equipment | (5,102) | (16,213) | (16,247) |
Purchase of intangible assets | (479) | 0 | (555) |
Net cash used in investing activities from continued operations | (3,579) | (16,120) | (15,639) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term loans | (1,701) | (1,071) | 0 |
Short-term credit received from banks | 1,000 | 0 | 3,000 |
Proceeds from long-term loans received | 712 | 16,680 | 3,042 |
Proceeds from issuance of common shares, net | 10,064 | 0 | 0 |
Exercise of options | 165 | 189 | 0 |
Net cash provided by financing activities from continued operations | 10,240 | 15,798 | 6,042 |
CASH FLOWS FROM DISCONTINUED ACTIVITIES: | |||
Net cash provided by operating activities | 0 | 0 | 777 |
Net cash provided by (used in) discontinued activities | 0 | 0 | 777 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | 8,916 | (5,189) | (11,089) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT BEGINNING OF YEAR | 8,026 | 13,215 | 24,304 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR | 16,942 | 8,026 | 13,215 |
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW: | |||
Purchase of property, plant and equipment on credit | 0 | 196 | 199 |
Additions of operating lease right-of-use assets and operating lease liabilities | 1,345 | 318 | 399 |
Reclassification of inventory to property, plant and equipment | 68 | 284 | 829 |
Capital contribution to equity method investee | 0 | 787 | 0 |
Supplemental disclosure of cash flow information: | |||
Interest paid | (1,438) | (796) | (251) |
Income taxes received (paid), net | $ 0 | $ 0 | $ (3) |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2023 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1 - GENERAL a. TAT Technologies Ltd., (“TAT” or the “Company”) an Israeli corporation, incorporated in 1985, is a leading provider of solutions and services to the aerospace and defense industries, focused mainly on the following four segments: (i) original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories mainly through our Kiryat Gat facility and our Limco subsidiary; (ii) MRO (“Maintenance Repair and Overhaul”) services for heat transfer components and OEM of heat transfer solutions through Limco Airepair Inc our wholly-owned subsidiary; (iii) MRO services for aviation components (mainly Auxiliary Power Unit “APU” and Landing Gear “LG”) through Piedmont Aviation Component Services LLC our wholly-owned subsidiary; and (iv) overhaul and coating of jet engine components through Turbochrome our wholly-owned subsidiary. TAT targets the commercial aerospace (serving a wide range of types and sizes of commercial and business jets), military aerospace and ground defense sectors. TAT’s shares are listed on both the NASDAQ (TATT) and Tel-Aviv Stock Exchange. In June 2020, the Company ' In March 2021, the Company announced a restructuring plan which includes the transfer of the Company's activity of “OEM of heat transfer solutions and aviation accessories” in Gedera to our activity of “MRO services for heat transfer components and OEM of heat transfer solutions” in Tulsa, Oklahoma and to our “overhaul and coating of jet engine components” activity in Kiryat Gat, see Note 9. b. During the years 2020 to 2022 the COVID-19 pandemic had an adverse effect on our industry and the markets in which we operate. The COVID-19 outbreak has significantly impacted the aviation market in which TAT’s customers operate and has resulted in a reduction of TAT’s business with some of these customers. Global supply shortages emerged for certain products, leading to delays in delivery schedule. c. During 2023, global conflicts continue to create volatility in global financial and energy markets and contribute to supply chain shortages adding to the inflationary pressures in the global economy. This capabilities lead to higher material and labor costs . The company actively collaborate with its suppliers to minimize impacts of supply shortages on manufacturing. d. In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located along Israel’s border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in thousands of deaths and injuries, and Hamas additionally kidnapped many Israeli civilians and soldiers. Following the attack, Israel’s security cabinet declared war against Hamas and commenced a military campaign against Hamas and other terrorist organizations in parallel to their continued rocket and terror attacks. Since the commencement of hostilities, Tat technologies has experienced a considerable increased demand for our merchandise from the Israel Ministry Of Defense (IMOD) compared to the routine levels of demands, and we have increased our support to the IMOD, mainly through deliveries of our systems and dedicated efforts of our employees. Subject to further developments, this demand may continue and possibly generate material orders to the Company. At the same time, the Company continues to support its international customers. The extent of the effects of the war on the Company's performance will depend on future developments that are difficult to predict at this time, including the duration and scope of the war. We continue to monitor the situation closely Following the attack by Hamas on Israel’s southern border, Hezbollah in Lebanon has also launched missile, rocket, and shooting attacks against Israeli military sites, troops, and Israeli towns in northern Israel. In response to these attacks, the Israeli army has carried out a number of targeted strikes on sites belonging to Hezbollah in southern Lebanon. The intensity and duration of Israel’s current war against Hamas is difficult to predict, as are such war’s economic implications on our business and operations and on Israel's economy in general. e. TAT has the following wholly owned subsidiaries: Limco-Piedmont Inc. (“Limco-Piedmont”), and Turbochrome Ltd. (“Turbochrome”). Additionally, the Company holds 51% of TAT-Engineering LLC (“TAT-Engineering”) as a joint venture, hereinafter collectively referred to as the “Group”. On November 25, 2015, the Company signed an agreement with Russian-based Engineering Holding of Moscow (“Engineering”), to establish a new facility for the provision of services for heat transfer products. The Company, TAT-Engineering LLC, is based in Novosibirsk’s Tolmachevo airport. TAT-Engineering, LLC shall provide services for heat transfer products. 51% of TAT-Engineering LLC's shares are held by TAT and the remaining 49% are held by Engineering. The accounting treatment of the joint venture is based on the equity method due to variable participating rights granted to Engineering. The new entity was established in January 2016. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES a. Basis of Presentation The Group's financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). b. Use of estimates in the preparation of financial statement The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose the nature of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to: recoverability of inventory, provision for current expected credit loss, and income taxes. c. Functional currency The majority revenues of the company and subsidiaries are generated in U.S. dollars ("dollars") and a substantial portion of the costs of the company and each subsidiary in the Group are incurred in dollars. Accordingly, the dollar is the currency of the primary economic environment in which the Group operates and accordingly its functional and reporting currency is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in currencies other than the U.S. dollar are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the statements of income (indicated below), the following exchange rates are used: (i) for transactions – exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) – historical exchange rates. Currency transaction gains and losses are carried to other financial income (expenses), net, as appropriate. d. Principles of consolidation The consolidated financial statements include the accounts of TAT and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. e. Cash and Cash equivalents All highly liquid investments, which include short-term bank deposits, that are not restricted as to withdrawal or use. The period to maturity of which do not exceed three months at the time of investment, are considered to be cash equivalents. Restricted Deposit Restricted deposit consists primarily of bank deposits to secure obligations under our state loan and a letter of credit to a supplier. Restricted deposit is presented at cost, including accrued interest, and is classified based on the duration of the restriction.The following table provides a reconciliation of cash and cash equivalents and restricted deposit reported on the balance sheets that sum to the total of the same amounts shown on the statement of cash flows: 2023 2022 Cash and cash equivalents $ 15,979 $ 7,722 Restricted deposit short term 661 - Restricted deposit long term 302 304 Total cash and cash equivalents and restricted cash equivalents $ 16,942 $ 8,026 f. Accounts receivable, net The Group’s accounts receivable balances are due from customers primarily in the airline and defense industries. Credit is extended based on evaluation of a customer’s financial condition and generally, collateral is not required. Trade accounts receivable from sales of services and products are typically due from customers within 30 - 90 days. Trade accounts receivable balances are stated at amounts due from customers net of a provision for current expected losses. Accounts receivable have been reduced by an allowance for current expected losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-off activity and recoveries for the periods presented were not material (see note 22). g. Inventory Inventory is measured at the lower of cost and net realizable value. Inventories include raw materials, parts, work in progress and finished products. Cost of raw material and parts is determined using the “moving average” basis. Cost of work in progress and finished products is calculated based on actual costs. Capitalized production costs components, mainly labor and overhead, are determined on average basis over the production period. Since the Group sells products and services related to airplane accessories for airplanes that can be in service for 20 to 50 years, it must keep a supply of such products and parts on hand while the airplanes are in use. The Group writes down its inventory for estimated obsolescence and unmarketable inventory equal to the difference between the cost of inventory and net realizable value, which includes costs to sell based upon assumptions for future demand and market conditions. If actual market prices are less favorable than those projected by management, inventory write-downs may be required. When inventory is written down, a new lower cost basis for that inventory is established. h. Property, plant and equipment Property, plant and equipment are stated at cost, after deduction of the related investment grants, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: Years Buildings 25 – 39 Leasehold improvements 3 - 20 Machinery and equipment 15 - 20 Motor vehicles 7 Office furniture and equipment 3 - 5 Internal use software 7 Leasehold improvements are amortized using the straight-line method over the period of the lease contract, or the estimated useful life of the asset, whichever is shorter Capitalized Software Costs The Company accounts for its costs to develop software for internal use accordance with Accounting Standards (“ASC”) 350-40, Internal use Software. These costs are directly attributable to the development and implementation of a new ERP and supply chain software. The Company capitalizes the costs incurred during the development stage. Capitalized costs include software design, configuration, interfaces, coding, installation and testing, payroll, payroll-related expenses and external direct costs, which are directly associated with creating and enhancing internal use software Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Capitalized software costs are amortized on a straight-line basis over their estimated useful life. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Refer to Note 6 for further information. Capitalized software costs are included in property, plant and equipment, net in the consolidated balance sheet. i. Government grants: Grants received from the IIA for approved research and development projects are recognized at the time the Company is reasonably assured that it will be entitled to such grants, on the basis of the costs incurred and included as a deduction from research and development expenses. Due to the fact that the Company is defined as a "Traditional Industry Company", under the IIA regulations, the grants are non-royalty bearing. Government grants relating to the purchase of property, plant and equipment (refer to note 11) are presented in the statement of financial position as a deduction to the carrying amount of the asset and they are credited to profit or loss on a straight-line basis over the estimated useful lives of the related assets. Grants received according to the ERC and PPP plan launched by the US Government are recognized at the time the Company is reasonably assured that it will be entitled to such grants, on the basis of the costs incurred and included as a deduction from cost of revenues and operational expenses, as applicable. j. Investment in affiliates and share in results of equity investment of affiliated companies Investment in which the Group exercises significant influence and which is not considered a subsidiary ("affiliate") is accounted for using the equity method, whereby the Group recognizes its proportionate share of the affiliated Company's net income or loss after the date of investment. See Note 5. The Group reviews those investments for impairment whenever events indicate the carrying amount may not be recoverable. On consolidation, transactions between the Group and the affiliate are eliminated in the amount which related to the Group's proportionate share of the affiliate. k. Leases The Company determines if an arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets are recognized as the lease liability, adjusted for lease incentives received and prepayments made. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. On the commencement date, lease payments that include variable lease payments dependent on an index or a rate (such as the Consumer Price Index or a market interest rate), are initially measured using the index or rate at the commencement date. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term (see also note 2aa). Income from Leasing Transactions under ASC 842 The Company accounts for certain leasing revenues in accordance with ASC 842, which qualify for operating lease treatment. For operating leases in which the Company is the lessor, lease payments are recognized as leasing revenue over the lease term on a straight-line basis. APUs engines subject to operating leases are classified as property, plant, and equipment and depreciated over the useful life, see Note 7. l. Identified intangible assets Identifiable intangible assets are comprised of definite lived intangible assets – commercial license which are amortized over 10 years respectively, using the straight-line method over their estimated period of useful life as determined by identifying the period in which substantially all of the cash flows are expected to be generated. The amortization of the commercial license is recorded in the cost of sales. m. Impairment of long-lived assets Long-lived assets, including property, plant and equipment, operating lease right of use assets and definite life intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized and the assets (or asset group) would be written down to their estimated fair values (see also Notes 6,7 and 8). n. Treasury Shares Company shares held by the Company are presented as a reduction of equity at their cost to the Company. The treasury shares have no rights. o. Revenue Recognition The Group generates its revenues from the sale of OEM products and systems, providing MRO services (remanufacture, maintenance, repair and overhaul services and long - term service contracts) and parts sales. A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. The Company has adopted the following exemptions and accounting policies: a. The Company has chosen to account for shipping as a fulfillment costs, in cases in which the shipping occurs after the customer has obtained control of a good. b. The Company has chosen not to adjust the promised amount of consideration for the effects of a significant financing component, in cases in which the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. c. Revenues from the sale of OEM products is recognized at a point in time when the customer obtains control of the product, typically upon shipment. Invoices are issued based on the customer's approved PO and payment terms are due net 30 to net 90 from invoice date. Revenues from the sale of MRO services is recognized upon meeting all revenue recognition criteria, which involve receiving customers' purchase orders, completing the service, and fulfilling inspection quality assurance obligations at the company's production site. Payment are due upon net 30 to net 45 from invoice date. Contract liabilities Contract liabilities are mainly comprised of deferred revenues which are included under accrued expenses and other. p. Warranty costs The Group provides warranties for its products and services ranging from one to three years, which vary with respect to each contract and in accordance with the nature of each specific product. According to Company's experience, most of the warranty costs incur during the first year of the contract. The Group estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time revenue is recognized under accrued expenses on the Company’s balance sheet. The Group periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. q. Research and development Research and development costs, net of grants, are charged to expenses as incurred and consist primarily of personnel and related expenses for research and development activities. r. Fair value measurement The Group measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data for similar but not identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. s. Concentrations of credit risk Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, derivatives and accounts receivable. Cash and cash equivalents are deposited with several major banks in Israel and the United States. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group's cash and cash equivalents are financially sound, and that the Group has not been effected by the recent turmoil in certain banking institutions in the United States. Accordingly, minimal credit risk exists with respect to these financial instruments. The Group's accounts receivable are derived mainly from sales to customers in the United States, Israel and Europe. The Group generally does not require collateral; however, in certain circumstances the Group may require letters of credit. Management believes that credit risks relating to accounts receivable are minimal since the majority of the Group's customers are world-leading manufacturers of aviation systems and aircrafts, international airlines, governments and air-forces, and world-leading manufacturers and integrators of defense and ground systems. In addition, the Group has relatively a large number of customers with wide geographic spread which mitigates the credit risk. The Group performs ongoing credit evaluation of its customers' financial condition. As part of the risk management, the Company purchased a credit insurance policy from a well-known insurance Company. As of December 31, 2023 the Company has a single customer which represents 17.5% of the Company's accounts receivable. As of December 2022, no individual customer represented 10% or more of the Company's accounts receivable. t. Income taxes Income taxes are accounted for in accordance with ASC 740 "Income Taxes". This statement prescribes the use of the asset and liability method, whereby deferred tax assets and liabilities account balances are determined based on temporary differences between financial reporting and tax basis of assets and liabilities and for tax loss carry-forwards. Deferred taxes are measured using the enacted laws and tax rates that will be in effect when the differences are expected to reverse. The Group provides a valuation allowance, if it is more likely than not that a portion of the deferred income tax assets will not be realized, see Note 19(h). Taxes which would apply in the event of disposal of investments in domestic and foreign subsidiaries have not been taken into account in computing the deferred taxes, when the Group’s intention is to hold, and not to realize the investments. The Group did not provide for deferred taxes attributable to dividend distribution out of retained tax-exempt earnings from "Approved/Benefited Enterprise" plans (see Note 19(a)), since it intends to permanently reinvest them and has no intention to declare dividends out of such tax-exempt income in the foreseeable future. Management considers such retained earnings to be essentially permanent in duration. Results for tax purposes for TAT’s Israeli subsidiaries are measured and reflected in NIS. As explained in (c) above, the consolidated financial statements are measured and presented in U.S. dollars. In accordance with ASC 740, TAT has not provided deferred income taxes on the differences resulting from changes in exchange rate and indexation. The Group follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Group’s policy is to include interest and penalties related to unrecognized tax benefits within financial income (expense). Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date. u. Earnings per share Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of the Company's Ordinary Shares, par value NIS 0.9 per share outstanding for each period, net of treasury shares. Diluted earnings (loss) per share are calculated by dividing the net income by the fully-diluted weighted-average number of ordinary shares outstanding during each period. Potentially dilutive shares include outstanding options granted to employees and directors, using the treasury stock method. v. Share-based compensation The Group applies ASC 718 "Stock Based Compensation" with respect to employees and directors’ options, which requires awards classified as equity awards to be accounted for using the grant-date fair value method. The fair value of share-based awards is estimated using the Black-Scholes valuation model, the payment transaction is recognized as expense over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures based on historical experience and anticipated future conditions. The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method over the requisite service period. w. Comprehensive income (loss) Comprehensive income in 2023, 2022 and 2021 includes, in addition to net income or loss, gains and losses of derivatives designated for cash flow hedge accounting (net of related taxes where applicable). Reclassification adjustments for gain or loss of derivatives are included in the relevant line item in the statement of income. See also Note 2 (aa). x. Contingencies Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group but which will only be resolved when one or more future events occur or fail to occur. The Group’s management assesses such contingent liabilities and estimated legal fees. Such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Management applies the guidance in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. y. Derivatives and hedging The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. The effective portion and the ineffective portion of the gain or loss on the hedging instrument is recognized as other comprehensive income (loss). The effective portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses-net. z. Restructuring Costs Restructuring costs have been recorded in connection with TAT’s restructuring plan announced in March 2021. Following this decision and in anticipation of ongoing efficiency measures in our business, TAT’s management has made estimates and judgments regarding future plans, mainly related to employee termination benefit costs. Management also assesses the recoverability of long-lived assets employed in the business. In certain instances, asset lives have been shortened based on changes in the estimated useful lives of the affected assets. Asset-related impairments and employee's severance and other related costs are reflected within asset impairments of fixed assets, provision for restructuring plan and restructuring expenses. aa. Recently Issued Accounting Principles: New accounting pronouncements effective in future periods: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amended guidance enhances income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid information. This guidance requires disclosure of specific categories in the effective tax rate reconciliation and further information on reconciling items meeting a quantitative threshold. In addition, the amended guidance requires disaggregating income taxes paid (net of refunds received) by federal, state, and foreign taxes. It also requires disaggregating individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amended guidance is effective for fiscal years beginning after December 15, 2024. The guidance can be applied either prospectively or retrospectively. We are evaluating the impact this amended guidance may have on the footnotes to our consolidated financial statements. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. We are evaluating the impact this amended guidance may have on the footnotes to our consolidated financial statements. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 3 - FAIR VALUE MEASUREMENT Recurring Fair Value Measurements The Group measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments: December 31, 2023 Level 1 Level 2 Level 3 Total Liability : - $ (22 ) - $ (22 ) December 31, 2022 Level 1 Level 2 Level 3 Total Liability : - $ (31 ) - $ (31 ) a. Derivative financial instruments: The Company hedges the foreign currency risk arising from probable forecasted Israeli Shekel ("ILS") expenses as part of its risk management policy. The risk management objective is to hedge the foreign currency exchange rate fluctuations associated with ILS denominated forecasted probable expenses according to the Company's hedging policy. The majority of the ILS exposure arises from expected related salary expenses. The Company enters into contracts for derivative financial instruments forward contracts in order to execute its policy. Such derivatives are recognized at fair value. The fair value of forward contracts is calculated as the difference between the forward rate on valuation date and the forward rate on the original forward contract, multiplied by the transaction's notional amount. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The hedge effectiveness is assessed at the end of each reporting period. The estimated net amount of existing gain (loss) that is reported in "Accumulated other comprehensive income (loss)" as of December 31, 2023 that is expected to be reclassified into earnings within the next 12 months is immaterial. As of December 31, 2023, and 2022, the Company has open call options and open put options with a notional total amount of $0 and $7,774, respectively. Non-recurring Fair Value Measurements The Company’s financial instruments consist mainly of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other liabilities. The fair value of these financial instruments approximates their carrying value. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flow is from the transaction commencement date through January 2024. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4 - INVENTORY Inventory is composed of the following: December 31, 2023 2022 Raw materials and components $ 36,934 $ 30,410 Work in progress 13,493 14,525 Finished goods 853 824 Total inventory (**) $ 51,280 $ 45,759 (**) The total amount of Rotables included in the Company spare parts inventory for the years ended December 31, 2023 and 2022 were Inventories write down expenses due to slow inventory amounted to $187, $1,284 and $624 for the years ended December 31, 2023, 2022 and 2021, respectively. The Company maintains a wide range of exchangeable units and other spare parts related to its products and services in various locations. Due to the long lead time of its suppliers and manufacturing cycles, the Company needs to forecast demand and commit significant resources towards these inventories. As such, the Company is subject to risks including excess inventory no longer relevant. |
INVESTMENT IN AFFILIATES
INVESTMENT IN AFFILIATES | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates [Abstract] | |
INVESTMENT IN AFFILIATES | NOTE 5 - INVESTMENT IN AFFILIATES On November 25, 2015, the Company signed an agreement with Russian-based Engineering Holding of Moscow (“Engineering”), to establish a new facility for the provision of services for heat transfer products. The new Company, TAT-Engineering LLC, is based in Novosibirsk’s Tolmachevo airport. TAT-Engineering, LLC shall provide services for heat transfer products. 51% of TAT-Engineering LLC's shares are held by TAT and the remaining 49% are held by Engineering. The accounting treatment of the joint venture is based on the equity method due to variable participating rights granted to Engineering. The new entity was established in January 2016 . Summarized financial information of TAT-Engineering LLC: December 31, 2023 2022 Balance sheets: Current assets $ 2,048 $ 913 Non-current assets 922 1,168 Current liabilities 1,395 1,426 Year ended December 31, 2023 2022 2021 Statements of operation: Revenues $ 2,702 $ 1,277 $ 501 Gross profit (loss) 1,739 605 (22 ) Net income (loss) 987 365 (148 ) Net income (losses) attributable to the Company 503 184 (76 ) |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET Composition of assets, grouped by major classifications, is as follows: December 31, 2023 2022 Cost: Land and buildings $ 10,739 $ 10,739 Leasehold improvements 9,164 6,391 Machinery and equipment 76,664 75,518 Motor vehicles 273 302 Office furniture and equipment 1,378 2,362 Internal use software 3,768 2,610 101,986 97,922 Less: Accumulated depreciation 59,432 54,499 Depreciated cost $ 42,554 $ 43,423 Depreciation expenses amounted to $4,430, $3,500 and $4,718 for the years ended December 31, 2023, 2022 and 2021, respectively. During 2021, as part of the Company's restructuring plan and departure from Gedera's facility, the Company wrote off leasehold improvement assets in total amount of $1,800 , out of this amount $600 was recognized as restructuring expenses due to impairment in OEM of heat transfer solutions and aviation accessories reporting unit which exanimated following the Company's restructuring plan announcement in March 2021. In addition, in 2021 $1,200 recognized in cost of sales as an acceleration of amortization due to change in useful life of leasehold improvements assets. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
LEASES | NOTE 7 - LEASES During 2021, the Company started to provide to the Company’s customers leasing services of APU engines. The results are reported as part of the Company's activity in MRO services for aviation components. The revenues from the lease services amounted to $5.5, $4.8 and $2.7 million for the years ended December 31, 2023,2022 and 2021 respectively. Limco-Piedmont leases some of its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2029 TAT had a lease agreement its factory in Gedera from TAT Industries until the end of 2024. In December 2021 the TAT and the landlord agreed on the settlement conditions which signed on January 10, 2022. Pursuant to such agreement, it was agreed that TAT will vacate the facility in Gedera on March 31, 2022. Due to the execution of such agreement, the Company wrote off operating ROU assets of $1.8 million and lease liability of $3.3 million as of December 31, 2021. Net income resulting from the write-off of such lease assets and liability was recognized as operating restructuring expenses. During 2023 TAT sign a lease agreement for a facility in Charlotte, USA, which will expire on April 30, 2029. Due to the new agreement, the Company recognized an operating ROU assets and related operating lease liability of approximately 1$ million The lease cost was as follows: Year ended December 31, 2023 Year ended December 31, 2022 Operating lease expenses 1,173 1,316 Supplemental cash flow information related to leases was as follows: Year ended December 31, 2023 Year ended December 31, 2022 Operating cash flows from operating leases 1,640 1,316 Right-of-use assets obtained in exchange for lease obligations (non-cash) 1,345 318 Supplemental balance sheet information related to operating leases is as follows: December 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets 2,746 2,477 Current operating lease liabilities 1,033 904 Non-current operating lease liabilities 1,697 1,535 Total operating lease liabilities 2,730 2,439 Weighted Average Remaining Lease Term Operating leases - Israel 5 years 2 years Operating leases – United States 3 years 4 years Weighted Average discount rate Operating leases - Israel 5 % 4.5 % Operating leases – United States 4.84 % 4.84 % As of December 31, 2023, the maturities of lease liabilities were as follows: Year Amount 2024 1,056 2025 810 2026 385 2027 281 2028 and after 472 Total lease payments 3,004 Less imputed interest (274 ) Total $ 2,730 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 8 - INTANGIBLE ASSETS Intangible assets: December 31, 2023 2022 Commercial license Cost $ 2,509 $ 2,030 Accumulated amortization (686 ) (407 ) Amortized cost $ 1,823 $ 1,623 In September 2020, Piedmont signed a 10-year agreement for the commercial MRO services for aviation components. Under this contract Honeywell licensed Piedmont as an authorized MRO station of APU 331-20X. Estimated amortization expenses for the five succeeding years is $279 thousands per year. |
RESTRUCTURING COST
RESTRUCTURING COST | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COST | NOTE 9 - RESTRUCTURING COST In 2022, the Company completed the restructuring plan announced in 2021, pursuant to which, the Company transferred its operations from its leased facility in Gedera to its facilities in Tulsa, Oklahoma and Kiryat Gat. This transfer enables TAT to concentrate on heat exchanges activity in the United States allowing for better operational flow, getting closer to TAT’s customer base, and cutting fixed costs. The restructuring plan has a material impact on the Company's financial statements for the year 2022 as follows: Restructuring Items December 31, 2023 December 31, 2022 Balance sheet Other Provisions $ - $ 190 Investment in building and infrastructures - 4,571 Investment in machinery (**) - 7,799 Total $ - $ 12,560 Profit and loss Restructuring expenses, net Forfeited guarantee Employee’s termination cost - 975 Restructuring income from lease modification - - Restructuring expenses from asset’s impairment - - Other restructuring expenses - 740 $ - $ 1,715 Cost of sales Acceleration of assets depreciation expenses - - Total $ - $ 1,715 * Net cash used in operating activity for restructuring expenses in 2023 and 2022 was $0 and $1.7 million respectively. ** In previous years, investment in machinery was offset by a grant of $2.7 million ($1.5 million in 2022 and $1.2 million in 2021) received from the State of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years |
LONG-TERM LOANS AND CREDIT LINE
LONG-TERM LOANS AND CREDIT LINES | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
LONG-TERM LOANS AND CREDIT LINES | NOTE 10 - LONG-TERM LOANS AND CREDIT LINES In March 2022, TAT received a loan from a commercial bank in the amount of $3.7 million. The loan bears annual interest rate of 6.65% (Prime Rate +0.9%) and paid in equal monthly installment as of April 2022 through March 2029. This new loan is in addition to four previous loans received during 2020 and 2021 in an aggregate amount of $6.3 million and are guaranteed by the Israeli government. The loans bear annual interest of 7.25% (Prime Rate +1.5%) which are paid in equal monthly installments as of April 2021 through February 2031. An amount of $1.2 million was classified to short-term loan as of December 31, 2023.The aforementioned loans were received in NIS. The loan has financial covenant of net debt to equity ratio less than 15%. In February 2022 TAT subsidiary received a credit line from a US commercial bank in the amount of $7 million with a maturity date of February 2024 carry an interest of WSJP+0.1% . During 2023, the Company utilized an additional $1 million from the credit line. In May 2022 the subsidiary received a loan from a commercial bank in the US in the amount of $3 million. The loan is secured with a first-degree lien on the US subsidiary's equipment. The loan bears an annual interest of 3.75% which is paid in equal monthly installments until 2029. The credit line and the loan has financial covenants such as a) tangible net worth to total assets greater than 65%, b) Maximum Net Debt to EBITDA ratio less than 3.5, and c) Minimum Debt Service Coverage Ratio greater than 1.25 (Total debt outstanding as of December 31, 2023 was $10 million). In November 2023, the US subsidiary was not in compliance with one of its covenants with the bank (net worth to total assets ratio), which was the result of the accelerated growth of the US subsidiary during 2023, which had an increase in inventories and accounts receivable. In November 2023, the bank adjusted this covenant from 65% to 55% and the US subsidiary was in compliance. Furthermore, in February 2024, the US subsidiary signed a new loan contract extending the existing line of credit by 2 years and securing an additional credit in the amount of $7 million, resulting in the total amount from the bank of approximately $17 million. In connection with the new extension, the Tangible Net Worth covenant changed to an absolute number of $30 million. As of the date of release of these consolidated financial statements, the US subsidiary is in compliance with all of its covenants. In September and December 2023, TAT subsidiary received loans from Machinery Finance in the total amount of $0.7 million. The loans bear annual interest of 6.65% which are paid in equal monthly installments until 2028 In March 2022, another TAT subsidiary received a credit line of $5 million from a commercial bank in the US. This credit line bears an annual fixed interest rate of 2.9% and has a maturity date of March 2024. In addition, in August 2022, the subsidiary received a long-term loan of $5 million from a commercial bank in the US. This loan bears an annual fixed interest rate of 4.2% and has a maturity date of December 2031. The loan is secured with a first-degree lien on the US subsidiary's equipment. The long term loan has financial covenants such as a) Debt Service Coverage Ratio greater than 1.15, b) Debt to Equity Ratio equal or less than 1. By June 2023 TAT secured another short-term line of credit from an Israeli bank for $4.5 million. The company’s building and land in Kiryat Gat serve as collateral for this loan. As of December 31, 2023, the Company has not utilized this credit line. As of December 31, 2023 the company met all its covenants. Israel Line of Credit Gov guaranteed loans Machinary finance loans Commercial loans Total balance amount $4,710 $2,612 Rate(*) 7.25% 6.65% Duration 5-10 7 USA Total balance amount $12,138 $702 $7,066 Rate 2.9%-7.75% 6.5% 3.75%-4.2% Duration (Years) Revolving 5 7-10 Maturities on long term loans are as follows: Year Amount 2024 2,200 2025 2,146 2026 2,164 2027 2,277 2028 and after 6,299 $ 15,086 The fair value of the long-term debt is determined by a valuation model, which is based on a conventional discounted cash flow methodology and utilizes assumptions of current borrowing rates. The fair value of the Company’s long-term debt approximates its fair value, except for the following: Fair value Carrying Amount (Dollars in thousands) (Dollars in thousands) 2023 2022 2023 2022 Citi Bank Loan $ 4,486 $ 4,876 $ 4,412 $ 4,856 Bank Leumi Loan $ 2,473 $ 2,834 $ 2,447 $ 2,834 |
GOVERNMENT GRANTS
GOVERNMENT GRANTS | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
GOVERNMENT GRANTS | NOTE 11 - GOVERNMENT GRANTS Following the ERC plan launched by the US Government in 2020, during 2022 the Company had all the indications that the Company was eligible and fully guaranteed to receive the third phase of the ERC Plan. As a result, the Company recorded $1.2 million which was recognized as a deduction from payroll cost of revenues and selling and marketing, general and administrative expenses. As of December 31, 2022, the “other current assets and prepaid expenses” includes government grant receivable in the amount of $2 million. The full amount of grant receivable received in January and April 2023. In 2021, TAT received government grants (from both the Israeli and the US government) as part of the Coronavirus Aid and Relief in a total amount of $3.6 million which was recognized as a deduction from payroll and overhead cost of revenues and operating expenses. |
ACCRUED EXPENSES AND OTHER
ACCRUED EXPENSES AND OTHER | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER | NOTE 12 - ACCRUED EXPENSES AND OTHER December 31, 2023 2022 Employees and payroll accruals $ 5,179 $ 3,951 Accrued expenses 1,072 971 Authorities 116 200 *Contract liabilities 5,239 2,778 Warranty provision 325 243 Accrued royalties 1,736 1,448 Provision for restructuring plan 63 190 Other 222 95 13,952 $ 9,876 *Contract liabilities December 31, 2023 2022 Opening balance 2,778 1,147 Revenue recognized (2,080 ) (148 ) Additions 4,541 1,779 Closing balance 5,239 2,778 |
RELATED PARTIES' TRANSACTIONS A
RELATED PARTIES' TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES' TRANSACTIONS AND BALANCES | NOTE 13 - RELATED PARTIES’ TRANSACTIONS AND BALANCES The amounts in the table below refer to TAT-Engineering joint venture. Transactions: Year ended December 31, 2023 2022 2021 Revenue - Sales to related-party Company (*) - $ 17 $ 88 Cost and expenses - Supplies from related party (*) - - $ 654 Balances: December 31, 2023 2022 Trade receivables and other receivables (*) - - Trade payables and other payables (*) - - (*) includes mainly transactions with TAT-Engineering affiliated companies. |
LONG-TERM EMPLOYEE-RELATED OBLI
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS | NOTE 14 - LONG-TERM EMPLOYEE-RELATED OBLIGATIONS Severance pay: The Company and its Israeli subsidiary are required to make severance payments upon dismissal of an employee or upon termination of employment in certain circumstances. The severance payment liability to the employees (based upon length of service and the latest monthly salary - one month’s salary for each year employed) is recorded on the Company’s balance sheet under “Liability in respect of employees rights upon retirement.” The liability is recorded as if it were payable at each balance sheet date on an undiscounted basis. According to Section 14 of the Israeli Severance Pay Law, the Israeli Company’s liability for certain employees, according to their employment agreements, make regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s retirement benefit obligation. The Company and its Israeli subsidiary are fully relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Company balance sheet, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies (the “Contribution Plan”). With regard to employees that are not under the “Contribution Plan”, the liability is funded in part from the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the balance sheets under “Funds in respect of employee rights upon retirement.” These policies are the Company’s assets. In the years ended December 31, 2023, 2022 and 2021 the Company expense $610, $825 and $778 respectively, with pension funds and insurance companies in connection with its severance payment obligations. Limco-Piedmont sponsors a 401(K) safe harbor profit sharing plan covering substantially all of its employees. The plan requires the employer to contribute a match which is currently done on a payroll period basis, matching 100% of the first 2% and 50% of all salary deferrals made up to the next 3%. In addition, the plan allows for a discretionary qualified non-elective contribution for the plan year. Contributions to the plan by Limco-Piedmont were $569, $454 and $349 for the years ended December 31, 2023, 2022 and 2021, respectively. The Group expects to contribute approximately $590 in 2024 to the pension funds and insurance companies in respect of their severance and pension pay obligations. The amounts of severance payments, actually paid to retired employees, by TAT were $116, $274 and $97 for the years ended December 31, 2023, 2022 and 2021. TAT expects to pay $722 in future benefits to their employees during 2024 through 2033 upon their normal retirement age. The amount was determined based on the employee’s current salary rates and the number of service years that will be accumulated upon the retirement date. These amounts do not include amounts that might be paid to employees that will cease working for the Israeli Company before their normal retirement age. Year Amount 2024 80 2025 - 2026 99 2027 134 2028 59 Thereafter (through 2032) 349 Total $ 721 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 - COMMITMENTS AND CONTINGENCIES a. Commissions arrangements: The Group is committed to pay marketing commissions ranging 1% to 10% to sale agents of total sales contracts. Commission expenses were $361, $412 and $423 for the years ended December 31, 2023, 2022 and 2021, respectively. The commissions were recorded as part of the selling and marketing expenses. b. Royalty commitments: (1) TAT is committed to pay royalties to third parties, ranging from 10% to 15% of sales of products developed by the third parties. Royalty expenses were $43, $47 and $95 for the years ended December 31, 2023, 2022 and 2021, respectively. The royalties were recorded as part of the cost of revenues. (2) Piedmont is committed to pay royalties to a third party, ranging 5% to 13% of sales of products purchased from the third party. That third party is the exclusive manufacturer of the products for which Piedmont provides MRO services. In addition, Piedmont is committed to pay another third-party royalty of 5% to 25%, on parts reclaimed to use in MRO services or sold to our customers when they are manufactured by the third party. Royalty expenses were $3,255, $1,747 and $2,245 for the years ended December 31, 2023, 2022 and 2021, respectively. The royalties were recorded as part of the cost of revenues. c. Guarantees: (1) In order to secure TAT's liability to the Israeli customs, the Company provided bank guarantees in amounts of 151 thousands NIS (approximately 42 thousands dollar). The guarantees are linked to the consumer price index and will expire from December 2023 through December 2024. d Litigation: (1) On December 29, 2022, a customer filed a suit against Limco in the Northern District of Oklahoma. Limco filed a counter claim with complaints each against the other on the business relationship in the last five years. The parties reached a final settlement agreement on October 19, 2023, pursuant to which Limco paid $220 thousands to the customer. This fully resolved all matters at issue in the lawsuit. (2) On July 12, 2022 TAT filed a suit against TAT Industries Ltd. In the District Court of Tel Aviv. TAT had leased the Gedera facility from TAT Industries Ltd. until the termination of the lease agreement in 2022. TAT asserts that TAT Industries Ltd. has unlawfully forfeited a bank guarantee that was granted for the benefit TAT Industries Ltd. in connection with the lease in Gedera in the amount of $750 thousands. On December 28, 2022, TAT Industries Ltd. filed a counterclaim against TAT asserting damages caused by TAT in connection with the lease in Gedera. TAT intends to vigorously defend the counterclaim by TAT Industries Ltd. which is in a preliminary stage, and TAT cannot estimate at this stage what impact, if any, the litigation may have on its results of operations, financial condition, or cash flows. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 16 - SHAREHOLDERS' EQUITY a. TAT's Ordinary shares confer upon their holders' voting rights, the right to receive dividends, if declared, and any amounts payable upon the dissolution, liquidation or winding up of the affairs of TAT. TAT's treasury shares have no rights. On December 21, 2023, TAT completed the issuance and sale of 1,158,600 Ordinary Shares of the Company in a private placement to Israeli institutional and accredited investors (as defined under Israel’s Securities Law, 5728-1968), for a purchase price of NIS 31.70 per share (which equaled $8.77 per share based on the exchange rate published by the Bank of Israel at such time),, resulting in net proceeds to the Company, after deducting offering expenses, of approximately NIS 36.2 million (or approximately $10.0 million*). The newly issued shares represent approximately 11.5% of the Company’s issued and outstanding Ordinary Shares after the consummation of such sale. The private offering expenses totaled to $141 thousands. b. Stock option plans: In November 2011, our audit committee and board of directors approved a stock option plan (the “2012 Plan”), which was subsequently approved by TAT’s shareholders, on June 28, 2012. According to the 2012 Plan an aggregate of 980,000 options exercisable into up to 980,000 ordinary shares, 0.9 NIS par value, of TAT may be granted to certain members of our board of directors and certain senior executives at an exercise price not less than the fair market value of the shares covered by the option on the date of grant. On August 30, 2018 the Company's compensation committee, followed by the Board of Directors, approved the amended and restated Company's 2012 Plan. On October 4, 2018 the Company's amended and restated 2012 Plan was approved at the annual general meeting of shareholders. As part of the Company's 2012 Plan’s amendments it was determined that if the Company declares a cash dividend to its shareholders, and the distribution date of such dividend will precede the exercise date of an Option, including for the avoidance of doubt, Options that have yet to become vested and Options which have been granted prior to the adoption of such amendment to the Plan, the exercise price of the option shall be reduced in the amount equal to the cash dividend per share distributed by the Company. Following the approval of TAT's audit committee and board of directors, on November 8, 2022 the Company’s shareholders approved the 2022 stock option plan at the same condition like 2012 plan (the “2022 Plan”, and together with the 2012 Plan, the “Plans”). According to the 2022 Plan an aggregate of 550,000 options exercisable into up to 550,000 ordinary shares, 0.9 NIS par value, of TAT may be granted to certain members of our board of directors and certain senior executives at an exercise price not less than the fair market value of the shares covered by the option on the date of grant Total aggregate option pool under the Plans is 1,530,000 (*) ordinary share of the Company. In general, the options under the Plans vest over a period of 4 years as follows: 25% of the options vest upon the lapse of 12 months following the date of grant and the remaining 75% vest on a quarterly basis over the remaining 3-year period. The options expired within 7 years from the date of grant. Pursuant to the Plans, any options that are cancelled or not exercised within the option period determined in the relevant option agreement will become available for future grants. The grant of options to Israeli employees under the Plans is subject to the terms stipulated by Sections 102 and 102A of the Israeli Income Tax Ordinance. Each option grant is subject to the track chosen by the Company, either Section 102 or Section 102A of the Israeli Income Tax Ordinance, and pursuant to the terms thereof, the Company is not allowed to claim as an expense for tax purposes the amounts credited to employees as benefits, including amounts recorded as salary benefits in the Company’s accounts, in respect of options granted to employees under the Plans, with the exception of the work income benefit component, if any, determined on grant date. For nonemployees and for non-Israeli employees, the share option plan is subject to Section 3(i) of the Israeli Income Tax Ordinance. As of December 31, 2023, options to purchase 625,000 ordinary shares were outstanding under the Plans, exercisable at an average exercise price of $7.31 per share. (*) of which 1,291,755 options are approved by the Tel Aviv Stock Exchange to be allocated to grantees. (1) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 25,000 Options, at an exercise price of $5.91 per share, to senior executive. (2) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 25,000 Options, at an exercise price of $5.91 per share, to senior executive. (3) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 25,000 Options, at an exercise price of $5.91 per share, to senior executive. (4) On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 25,000 Options, at an exercise price of $5.91 per share, to senior executive. (5) On July 25, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 20,000 Options, at an exercise price of $6.41 per share, to senior executive. (6) On August 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 100,000 Options, at an exercise price of $7 per share, to senior executive. (7) On March 22, 2022, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 50,000 Options, at an exercise price of $6.59 per share, to senior executive. (8) On May 1, 2022, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 20,000 Options, at an exercise price of $6.42 per share, to senior executive. (9) On May 22, 2022, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 50,000 Options, at an exercise price of $6.56 per share, to senior executive. (10) On December 1, 2022, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 50,000 Options, at an exercise price of $6.42 per share, to senior executive. (11) On January 9, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 50,000 Options, at an exercise price of $6.31 per share, to senior executive. (12) On February 10, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 35,000 Options, at an exercise price of $6.31 per share, to senior executive. (13) On March 29, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 35,000 Options, at an exercise price of $6.07 per share, to senior executive. (14) On May 30, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 30,000 Options, at an exercise price of $6.45 per share, to senior executive. (15) On August 28, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 40,000 Options, at an exercise price of $8.00 per share, to senior executive. The fair value of the Company’s stock options granted under the 2012 and 2022 plan for the years ended December 31, 2023, 2022 and 2021 was estimated using the following assumptions: 2023 2022 2021 Expected stock price volatility 48% – 54.8% 48.4% – 54.48% 45.6% – 52% Expected option life (in years) 4.6 1-5 3.5-5 Risk free interest rate 3.71 % – 4.54% 0.63% – 4.04% 0.1% – 0.64% Dividend yield 0% 0% 0% The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of options. The volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations. The expected term of options is based on the simplified method. The Company is able to use the simplified method as the options qualify as “plain vanilla” options as defined by ASC 718-10-S99 and since the Company does not have sufficient historical exercise data to provide a reasonable basis to estimate expected term. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected term of the stock options granted. Following the Company's amended and restated 2012 stock plan and 2022 stock plan related to the adjustment of the exercise price in respect of dividend distribution, the dividend yield was amended to 0%. The following table is a summary of the activity of TAT's Stock Option plan: Year ended December 31, Year ended December 31, Year ended December 31, 2023 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at the beginning of the year 675,000 $ 7.17 720,000 $ 6.8 621,460 $ 7.26 Granted 190,000 6.63 170,000 6.56 220,000 6.45 Forfeited (196,614 ) 6.52 (178,150 ) 5.63 (121,460 ) 8.9 Exercised *(43,386 ) 5.68 (36,850 ) 5.25 - - Outstanding at the end of the year 625,000 7.31 675,000 7.17 720,000 6.8 Exercisable at the end of the year 373,438 7.91 412,813 $ 7.54 379,375 $ 7.44 The weighted-average grant-date fair value of options granted was $2.45 in 2023, $2.33 in 2022 and $1.92 in 2021. The aggregate intrinsic value for the options outstanding as of December 31, 2023, 2022 and 2021 was $1.78 million, $0 and $0, respectively. As of December 31, 2023, total unrecognized compensation cost was $382 and is expected to be recognized over a weighted-average period of 1.39 years. * Out of which 12,500 awards were exercised on a cashless basis in 2023. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE ("EPS") | NOTE 17 - EARNINGS PER SHARE (“EPS”) Basic earnings per share are based on the weighted average number of ordinary shares outstanding, net of treasury shares. Diluted EPS is based on those shares used in basic EPS plus shares that would have been outstanding assuming issuance of ordinary shares for all dilutive potential ordinary shares outstanding. Year ended December 31, 2023 2022 2021 Numerator for EPS: Net Income (loss) from continuing operations $ 4,672 $ (1,562 ) $ (3,562 ) Denominator for EPS: Weighted average shares outstanding – basic 8,961,689 8,911,546 8,874,696 Dilutive shares 122,333 - - Weighted average shares outstanding – diluted 9,084,022 8,911,546 8,874,696 EPS: Basic and diluted $ 0.52 $ (0.175 ) $ (0.4 ) Diluted $ 0.51 $ (0.175 ) $ (0.4 ) Diluted loss per share does not include 625,000, 675,000 and 720,000 options, for the years ended December 31, 2023, 2022 and 2021 respectively because the options are anti-dilutive. Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans. |
DISCONTINUED OPERATION
DISCONTINUED OPERATION | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATION | NOTE 18 - DISCONTINUED OPERATION In June 2020, the Company ' 2021 Revenue: Services $ 440 Cost of revenue: Services 429 Gross profit (loss) 11 Operating expenses: Research and development, net 16 Selling and marketing 29 General and administrative 68 113 Operating income (loss) (102 ) Financial expenses (income) - Income (loss) on disposal of discontinued operation (1) 529 Net Income (loss) $ 427 (1) During 2020, the Company wrote off total assets of $1.4 million. During 2021 the Company was succeeded to collect and sell some of the account receivable and inventory that were written off in total amount of $529. The final disposal of this activity was finalized in 2021. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 19 - TAXES ON INCOME a. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): Until December 31, 2010, TAT and Turbochrome has elected to participate in the alternative package of tax benefits for its approved and benefited enterprise under the law. Pursuant to such Law, the income derived from those enterprises will be exempt from Israeli corporate tax for a specified benefit period (except to the extent that dividends are distributed during the tax-exemption period other than upon liquidation) and subject to reduced corporate tax rates for an additional period. In addition pursuant to a recent amendment o f the Law, any distribution of dividend as of August 15, 2021 will be prorated between exempt income and taxable income. As such, upon dividend distribution, in case the company has accumulated exempt income, the company will be obligated to pay the corporate income tax it was exempted from with respect to the exempt profits portion. Preferred Enterprises Additional amendments to the Law became effective in January 2011 (the “2011 Amendment”). Under the 2011 Amendment, income derived by ‘Preferred Companies’ from ‘Preferred Enterprises’ (both as defined in the 2011 Amendment) would be subject to a uniform rate of corporate tax as opposed to the incentives that are limited to income from Approved or Benefiting Enterprises during their benefits period. According to the 2011 Amendment, the uniform tax rate on such income, referred to as ‘Preferred Income’, would be 6% in areas in Israel that are designated as Development Zone A and 12% elsewhere in Israel. Dividends distributed from taxable income derived from Preferred Enterprise would be subject to a 15% tax (or lower, if so provided under an applicable tax treaty), which would generally be withheld by the distributing Company .While the Company may incur additional tax liability in the event of distribution of dividends from tax exempt income generated from its Approved and Benefiting Enterprises, no additional tax liability will be incurred by the Company in the event of distribution of dividends from income taxed in accordance with the 2011 Amendment Under the transitional provisions of the 2011 Amendment, the Company elected to irrevocably implement the 2011 Amendment, commencing 2011 and thereafter, and be regarded as a "Preferred Enterprise" with respect to its existing Approved and Benefited Enterprises while waiving benefits provided under the legislation prior to the 2011 Amendment. a. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law") (cont.): Under a recent amendment, announced in August 2013, beginning in 2014, dividends paid out of income attributed to a Preferred Enterprise will be subject to a withholding tax rate of 20% (instead of 15%). In addition, tax rates under the Preferred Enterprise were also raised effective as of January 1, 2014 to 9% in Zone A and 16%. The uniform tax rate for Development Zone A, as of January 1, 2017, is 7.5% (as part of changes enacted in Amendment 73). TAT is located in an area in Israel that is designated as elsewhere and as such entitled to reduce tax rates of 16%. Turbochrome is in an area in Israel that is designated as Zone A and as such entitled to reduce tax rates of 7.5%. b. Corporate tax rate in Israel The taxable income of TAT, not subject to benefits as detailed above, is taxed at corporate tax rate, which was 23% for all years included in these financial statements. Capital gain is subject to capital gain tax according to corporate tax rate in the year which the assets are sold. As of December 31, 2023, the Company has an accumulated tax loss carryforward from Israeli subsidiary of approximately $2,927 million (as of December 31, 2022, $3,068 million). Such carry forward loss has no expiration date c. U.S. subsidiaries U.S. subsidiaries are taxed based on federal and state tax laws. The Federal statutory tax rate for 2023, 2022 and 2021 was 21% plus 3%-6% for state taxes. As of December 31, 2023, the Company has an accumulated tax loss carryforward of approximately $138 (as of December 31, 2022, $970). Under U.S. tax laws, subject to certain limitations, carryforward tax losses originating in tax years beginning after January 1, 2018, have no expiration date, but are limited as a deduction to 80% of taxable income in any given year d. Tax assessments TAT’s income tax assessments are considered final through 2017. Turbochrome income tax assessments are considered final through 2017. Limco-Piedmont income tax assessments are considered final through 2018. e. Income tax reconciliation: A reconciliation of the theoretical tax expense assuming all income is taxed at the statutory rate to taxes on income (tax benefit) as reported in the statements of income: Year ended December 31, 2023 2022 2021 Income (loss) before taxes on income (tax benefit) from continued operations reported in the statements of income $ 4,745 $ (1,648 ) $ (4,575 ) Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income (tax benefit) 1,091 $ (379 ) $ (1,052 ) Increase (decrease) in taxes on income resulting from: Tax adjustment for foreign subsidiaries subject to a different tax rate (36 ) (13 ) 75 Reduced tax rate on income derived from "Preferred Enterprises" plans (484 ) (48 ) 149 Deferred tax assets from discontinued operation profit (loss) - 98 Reduced deferred tax asset from expecting utilization of carryforward losses 183 - - Tax in respect of prior years 59 24 Temporary differences for which no deferred taxes were recorded - 238 - Permanent differences - 77 71 Other adjustments (178 ) 164 (27 ) Taxes on income (tax benefit) as reported in the statements of income $ 576 $ 98 $ (662 ) f. Income (loss) before taxes on income (tax benefit) is comprised as follows: Year ended December 31, 2023 2022 2021 Domestic (Israel) $ 4,639 $ (1,201 ) $ (5,139 ) Foreign (United States) 106 (447 ) 564 $ 4,745 $ (1,648 ) $ (4,575 ) g. Taxes on income (tax benefit) included in the statements of income: Year ended December 31, 2023 2022 2021 Current: Domestic (Israel) $ - $ - $ - Foreign (United States) 49 - - 49 - - Deferred: Domestic (Israel) 358 268 (579 ) Foreign (United States) 169 (111 ) (107 ) 576 157 (686 ) Previous years: Domestic (Israel) - - - Foreign (United States) - (59 ) 24 $ 576 $ 98 $ (662 ) h. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of TAT's deferred tax liabilities and assets are as follows: December 31, 2023 2022 Deferred tax assets: Provisions for employee benefits $ 657 $ 378 Inventory 1,337 1,288 Capital tax losses carryforward 956 2,475 Net operating losses carryforward 2,368 4,040 R&D expenses 121 144 Other 417 331 Deferred tax assets, before valuation allowance $ 5,856 $ 8,656 Valuation allowance (3,214 ) (5,202 ) Deferred tax assets, net 2,642 $ 3,454 Deferred tax liabilities: Property, plant and equipment (1,348 ) (1,884 ) Intangible assets (300 ) (341 ) Other temporary differences deferred tax liabilities - Deferred tax liabilities $ (1,648 ) $ (2,225 ) Net 994 $ 1,229 The following table summarizes the changes in the valuation allowance for deferred tax assets: Balance, December 31, 2020 $ 5,484 Deductions during the year - Balance, December 31,2021 $ 5,484 Deductions during the year (282 ) Balance, December 31,2022 $ 5,202 Deductions during the year (1,988 ) Balance, December 31,2023 3,214 Valuation allowances Are mainly related to (i) Capital losses attributed to the Company in the amount of $ 956. (ii) Corporate income tax losses carryforward incurred in TAT Gedera in amount of $2,258. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 20 - SEGMENT INFORMATION a. Segment Activities Disclosure: TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories mainly through our Gedera facility and our Limco subsidiary; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components (mainly APU and LG) through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. - OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board of commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units. - MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military. - MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components, as well as APU lease activity. TAT’s Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military. - TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps. The discontinued operation in 2021 regarding to the JT8D activity is part of the coating jet engines component segment. The Group’s chief operating decision-maker (CEO of the Company) evaluates performance, makes operating decisions and allocates resources based on financial data, consistent with the presentation in the accompanying financial statements. CODM reviews revenue, gross profit, operating income and total assets. During 2022 TAT completed its plan to consolidate the Company’s operations from four to three production sites by consolidating its production sites in Israel “OEM of heat transfer solutions and aviation accessories” with the “overhaul and coating of jet engine activity” and transferring the heat exchanges cores production operations from Israel to the Company’s production site in Tulsa, Oklahoma. b. Segments statement operations disclosure: The following financial information is the information that CODM uses for analyzing the segment results. The figures are presented in consolidated method as presented to CODM. The following financial information is a summary of the operating income of each operational segment: Year ended December 31, 2023 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Elimination of inter-Company sales Consolidated Revenues external $ 27,555 $ 28,625 $ 50,760 $ 6,854 $ 113,794 Revenues internal 4,370 (4,370 ) - Cost of revenues 20,193 30,176 41,788 4,110 (4,941 ) 91,326 Gross profit 7,362 2,819 8,972 2,744 571 22,468 Research and development 159 177 268 111 715 Selling and marketing 1,618 1,539 2,040 326 5,523 General and administrative 2,772 3,436 3,555 825 10,588 Other expenses (income) 9 (3 ) (439 ) (423 ) 423 (433 ) Operating income (loss) $ 2,804 $ (2,330 ) $ 3,548 $ 1,905 $ 148 $ 6,075 Financial expenses, net (1,330 ) Loss before tax benefits 4,745 Year ended December 31, 2022 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Elimination of inter-Company sales Consolidated Revenues external $ 21,844 $ 21,063 $ 35,879 $ 5,770 - $ 84,556 Revenues internal - 3,733 - - (3,733 ) - Cost of revenues 18,778 20,750 28,890 3,495 (3,285 ) 68,628 Gross profit 3,066 4,046 6,989 2,275 (448 ) 15,928 Research and development 193 54 286 19 (74 ) 479 Selling and marketing 1,936 926 2,383 330 54 5,629 General and administrative 3,226 2,462 3,686 594 2 9,970 Other expenses (income) (1,566 ) (52 ) (18 ) - 1,547 (90 ) Restructuring expenses, net 975 618 - 122 - 1,715 Operating income (loss) $ (1,698 ) $ 38 $ 652 $ 1,210 $ (1,977 ) $ (1,775 ) Financial expenses, net 127 Loss before tax benefits (1,648 ) Year ended December 31, 2021 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and lease Overhaul and coating of jet engine components Elimination of inter-Company sales Consolidated Revenues external $ 25,977 $ 14,930 $ 33,232 $ 3,834 - $ 77,973 Revenues internal - 3,916 - - (3,916 ) - Cost of revenues 24,044 16,922 26,444 2,978 (3,685 ) 66,703 Gross profit (loss) 1,933 1,924 6,788 856 (231 ) 11,270 Research and development 122 80 202 160 (47 ) 517 Selling and marketing 2,040 1,015 1,961 220 (89 ) 5,147 General and administrative 3,128 1,855 3,004 558 (191 ) 8,354 Other expenses (income) (913 ) - (432 ) (19 ) 896 (468 ) Restructuring expenses, net 1,338 386 - 31 - 1,755 Operating income (loss) $ (3,782 ) $ (1,412 ) $ 2,053 $ (94 ) $ (800 ) $ (4,035 ) Financial expenses, net 540 Profit (loss) before taxes on income (4,575 ) c. The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments: Year ended December 31, 2023 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 39,131 42,491 58,023 9,400 (3,468 ) 145,577 Depreciation and amortization 557 878 3,078 268 (71 ) 4,710 Expenditure for segment assets 3,519 1,352 252 458 4,390 Year ended December 31, 2022 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 24,251 39,193 55,616 8,846 (1,255 ) 126,651 Depreciation and amortization 690 432 2,325 259 - 3,706 Expenditure for segment assets 1,012 9,345 5,411 2,107 - 17,875 |
ENTITY-WIDE DISCLOSURE
ENTITY-WIDE DISCLOSURE | 12 Months Ended |
Dec. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
ENTITY-WIDE DISCLOSURE | NOTE 21 - ENTITY-WIDE DISCLOSURE a. Total revenues - by geographical location were attributed according to customer residential country as follows: Year ended December 31, 2023 2022 2021 Total revenues Total revenues Total revenues Sale of products Israel $ 3,527 $ 3,249 $ 5,532 United States 23,937 15,616 13,716 Other 7,777 6,595 6,622 $ 35,241 $ 25,460 $ 25,870 Year ended December 31, 2023 2022 2021 Total revenues Total revenues Total revenues Sale of Services Israel $ 4,170 $ 3,913 $ 2,213 United States 58,062 40,954 34,231 Other 16,321 14,229 15,659 $ 78,553 $ 59,096 $ 52,103 b. Total long-lived assets - by geographical location were as follows: December 31, 2023 2022 2021 Israel $ 11,569 $ 10,231 $ 8,427 United States 35,002 41,270 26,978 Total $ 46,571 $ 51,501 $ 35,405 c. Major Customers The Company has a single customer of MRO ) ( 2 3 12.6 |
SUPPLEMENTAL CONSOLIDATED BALAN
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION | NOTE 22 - SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION Warranty provision Provision for current expected credit losses Balance, as of December 31, 2020 $ 250 $ 306 Additions 80 269 Deductions (87 ) (186 ) Balance, as of December 31, 2021 $ 243 $ 389 Additions - 200 Deductions - (62 ) Balance, as of December 31, 2022 $ 243 $ 527 Additions 79 90 Deductions (272 ) Balance as of December 31. 2023 322 345 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a. Basis of Presentation The Group's financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). |
Use of estimates in the preparation of financial statement | b. Use of estimates in the preparation of financial statement The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose the nature of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to: recoverability of inventory, provision for current expected credit loss, and income taxes. |
Functional currency | c. Functional currency The majority revenues of the company and subsidiaries are generated in U.S. dollars ("dollars") and a substantial portion of the costs of the company and each subsidiary in the Group are incurred in dollars. Accordingly, the dollar is the currency of the primary economic environment in which the Group operates and accordingly its functional and reporting currency is the dollar. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in currencies other than the U.S. dollar are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items in the statements of income (indicated below), the following exchange rates are used: (i) for transactions – exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization, etc.) – historical exchange rates. Currency transaction gains and losses are carried to other financial income (expenses), net, as appropriate. |
Principles of consolidation | d. Principles of consolidation The consolidated financial statements include the accounts of TAT and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. |
Cash and Cash equivalents | e. Cash and Cash equivalents All highly liquid investments, which include short-term bank deposits, that are not restricted as to withdrawal or use. The period to maturity of which do not exceed three months at the time of investment, are considered to be cash equivalents. Restricted Deposit Restricted deposit consists primarily of bank deposits to secure obligations under our state loan and a letter of credit to a supplier. Restricted deposit is presented at cost, including accrued interest, and is classified based on the duration of the restriction.The following table provides a reconciliation of cash and cash equivalents and restricted deposit reported on the balance sheets that sum to the total of the same amounts shown on the statement of cash flows: 2023 2022 Cash and cash equivalents $ 15,979 $ 7,722 Restricted deposit short term 661 - Restricted deposit long term 302 304 Total cash and cash equivalents and restricted cash equivalents $ 16,942 $ 8,026 |
Accounts receivable, net | f. Accounts receivable, net The Group’s accounts receivable balances are due from customers primarily in the airline and defense industries. Credit is extended based on evaluation of a customer’s financial condition and generally, collateral is not required. Trade accounts receivable from sales of services and products are typically due from customers within 30 - 90 days. Trade accounts receivable balances are stated at amounts due from customers net of a provision for current expected losses. Accounts receivable have been reduced by an allowance for current expected losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-off activity and recoveries for the periods presented were not material (see note 22). |
Inventory | g. Inventory Inventory is measured at the lower of cost and net realizable value. Inventories include raw materials, parts, work in progress and finished products. Cost of raw material and parts is determined using the “moving average” basis. Cost of work in progress and finished products is calculated based on actual costs. Capitalized production costs components, mainly labor and overhead, are determined on average basis over the production period. Since the Group sells products and services related to airplane accessories for airplanes that can be in service for 20 to 50 years, it must keep a supply of such products and parts on hand while the airplanes are in use. The Group writes down its inventory for estimated obsolescence and unmarketable inventory equal to the difference between the cost of inventory and net realizable value, which includes costs to sell based upon assumptions for future demand and market conditions. If actual market prices are less favorable than those projected by management, inventory write-downs may be required. When inventory is written down, a new lower cost basis for that inventory is established. |
Property, plant and equipment | h. Property, plant and equipment Property, plant and equipment are stated at cost, after deduction of the related investment grants, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows: Years Buildings 25 – 39 Leasehold improvements 3 - 20 Machinery and equipment 15 - 20 Motor vehicles 7 Office furniture and equipment 3 - 5 Internal use software 7 Leasehold improvements are amortized using the straight-line method over the period of the lease contract, or the estimated useful life of the asset, whichever is shorter Capitalized Software Costs The Company accounts for its costs to develop software for internal use accordance with Accounting Standards (“ASC”) 350-40, Internal use Software. These costs are directly attributable to the development and implementation of a new ERP and supply chain software. The Company capitalizes the costs incurred during the development stage. Capitalized costs include software design, configuration, interfaces, coding, installation and testing, payroll, payroll-related expenses and external direct costs, which are directly associated with creating and enhancing internal use software Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Capitalized software costs are amortized on a straight-line basis over their estimated useful life. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Refer to Note 6 for further information. Capitalized software costs are included in property, plant and equipment, net in the consolidated balance sheet. |
Government grants: | i. Government grants: Grants received from the IIA for approved research and development projects are recognized at the time the Company is reasonably assured that it will be entitled to such grants, on the basis of the costs incurred and included as a deduction from research and development expenses. Due to the fact that the Company is defined as a "Traditional Industry Company", under the IIA regulations, the grants are non-royalty bearing. Government grants relating to the purchase of property, plant and equipment (refer to note 11) are presented in the statement of financial position as a deduction to the carrying amount of the asset and they are credited to profit or loss on a straight-line basis over the estimated useful lives of the related assets. Grants received according to the ERC and PPP plan launched by the US Government are recognized at the time the Company is reasonably assured that it will be entitled to such grants, on the basis of the costs incurred and included as a deduction from cost of revenues and operational expenses, as applicable. |
Investment in affiliates and share in results of equity investment of affiliated companies | j. Investment in affiliates and share in results of equity investment of affiliated companies Investment in which the Group exercises significant influence and which is not considered a subsidiary ("affiliate") is accounted for using the equity method, whereby the Group recognizes its proportionate share of the affiliated Company's net income or loss after the date of investment. See Note 5. The Group reviews those investments for impairment whenever events indicate the carrying amount may not be recoverable. On consolidation, transactions between the Group and the affiliate are eliminated in the amount which related to the Group's proportionate share of the affiliate. |
Leases | k. Leases The Company determines if an arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets are recognized as the lease liability, adjusted for lease incentives received and prepayments made. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. On the commencement date, lease payments that include variable lease payments dependent on an index or a rate (such as the Consumer Price Index or a market interest rate), are initially measured using the index or rate at the commencement date. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term (see also note 2aa). Income from Leasing Transactions under ASC 842 The Company accounts for certain leasing revenues in accordance with ASC 842, which qualify for operating lease treatment. For operating leases in which the Company is the lessor, lease payments are recognized as leasing revenue over the lease term on a straight-line basis. APUs engines subject to operating leases are classified as property, plant, and equipment and depreciated over the useful life, see Note 7. |
Identified intangible assets | l. Identified intangible assets Identifiable intangible assets are comprised of definite lived intangible assets – commercial license which are amortized over 10 years respectively, using the straight-line method over their estimated period of useful life as determined by identifying the period in which substantially all of the cash flows are expected to be generated. The amortization of the commercial license is recorded in the cost of sales. |
Impairment of long-lived assets | m. Impairment of long-lived assets Long-lived assets, including property, plant and equipment, operating lease right of use assets and definite life intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized and the assets (or asset group) would be written down to their estimated fair values (see also Notes 6,7 and 8). |
Treasury Shares | n. Treasury Shares Company shares held by the Company are presented as a reduction of equity at their cost to the Company. The treasury shares have no rights. |
Revenue Recognition | o. Revenue Recognition The Group generates its revenues from the sale of OEM products and systems, providing MRO services (remanufacture, maintenance, repair and overhaul services and long - term service contracts) and parts sales. A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. The Company has adopted the following exemptions and accounting policies: a. The Company has chosen to account for shipping as a fulfillment costs, in cases in which the shipping occurs after the customer has obtained control of a good. b. The Company has chosen not to adjust the promised amount of consideration for the effects of a significant financing component, in cases in which the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. c. Revenues from the sale of OEM products is recognized at a point in time when the customer obtains control of the product, typically upon shipment. Invoices are issued based on the customer's approved PO and payment terms are due net 30 to net 90 from invoice date. Revenues from the sale of MRO services is recognized upon meeting all revenue recognition criteria, which involve receiving customers' purchase orders, completing the service, and fulfilling inspection quality assurance obligations at the company's production site. Payment are due upon net 30 to net 45 from invoice date. Contract liabilities Contract liabilities are mainly comprised of deferred revenues which are included under accrued expenses and other. |
Warranty costs | p. Warranty costs The Group provides warranties for its products and services ranging from one to three years, which vary with respect to each contract and in accordance with the nature of each specific product. According to Company's experience, most of the warranty costs incur during the first year of the contract. The Group estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time revenue is recognized under accrued expenses on the Company’s balance sheet. The Group periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. |
Research and development | q. Research and development Research and development costs, net of grants, are charged to expenses as incurred and consist primarily of personnel and related expenses for research and development activities. |
Fair value measurement | r. Fair value measurement The Group measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data for similar but not identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. |
Concentrations of credit risk | s. Concentrations of credit risk Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, derivatives and accounts receivable. Cash and cash equivalents are deposited with several major banks in Israel and the United States. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group's cash and cash equivalents are financially sound, and that the Group has not been effected by the recent turmoil in certain banking institutions in the United States. Accordingly, minimal credit risk exists with respect to these financial instruments. The Group's accounts receivable are derived mainly from sales to customers in the United States, Israel and Europe. The Group generally does not require collateral; however, in certain circumstances the Group may require letters of credit. Management believes that credit risks relating to accounts receivable are minimal since the majority of the Group's customers are world-leading manufacturers of aviation systems and aircrafts, international airlines, governments and air-forces, and world-leading manufacturers and integrators of defense and ground systems. In addition, the Group has relatively a large number of customers with wide geographic spread which mitigates the credit risk. The Group performs ongoing credit evaluation of its customers' financial condition. As part of the risk management, the Company purchased a credit insurance policy from a well-known insurance Company. As of December 31, 2023 the Company has a single customer which represents 17.5% of the Company's accounts receivable. As of December 2022, no individual customer represented 10% or more of the Company's accounts receivable. |
Income taxes | t. Income taxes Income taxes are accounted for in accordance with ASC 740 "Income Taxes". This statement prescribes the use of the asset and liability method, whereby deferred tax assets and liabilities account balances are determined based on temporary differences between financial reporting and tax basis of assets and liabilities and for tax loss carry-forwards. Deferred taxes are measured using the enacted laws and tax rates that will be in effect when the differences are expected to reverse. The Group provides a valuation allowance, if it is more likely than not that a portion of the deferred income tax assets will not be realized, see Note 19(h). Taxes which would apply in the event of disposal of investments in domestic and foreign subsidiaries have not been taken into account in computing the deferred taxes, when the Group’s intention is to hold, and not to realize the investments. The Group did not provide for deferred taxes attributable to dividend distribution out of retained tax-exempt earnings from "Approved/Benefited Enterprise" plans (see Note 19(a)), since it intends to permanently reinvest them and has no intention to declare dividends out of such tax-exempt income in the foreseeable future. Management considers such retained earnings to be essentially permanent in duration. Results for tax purposes for TAT’s Israeli subsidiaries are measured and reflected in NIS. As explained in (c) above, the consolidated financial statements are measured and presented in U.S. dollars. In accordance with ASC 740, TAT has not provided deferred income taxes on the differences resulting from changes in exchange rate and indexation. The Group follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Group’s policy is to include interest and penalties related to unrecognized tax benefits within financial income (expense). Such liabilities are classified as long-term, unless the liability is expected to be resolved within twelve months from the balance sheet date. |
Earnings per share | u. Earnings per share Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of the Company's Ordinary Shares, par value NIS 0.9 per share outstanding for each period, net of treasury shares. Diluted earnings (loss) per share are calculated by dividing the net income by the fully-diluted weighted-average number of ordinary shares outstanding during each period. Potentially dilutive shares include outstanding options granted to employees and directors, using the treasury stock method. |
Share-based compensation | v. Share-based compensation The Group applies ASC 718 "Stock Based Compensation" with respect to employees and directors’ options, which requires awards classified as equity awards to be accounted for using the grant-date fair value method. The fair value of share-based awards is estimated using the Black-Scholes valuation model, the payment transaction is recognized as expense over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures based on historical experience and anticipated future conditions. The Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the accelerated method over the requisite service period. |
Comprehensive income (loss) | w. Comprehensive income (loss) Comprehensive income in 2023, 2022 and 2021 includes, in addition to net income or loss, gains and losses of derivatives designated for cash flow hedge accounting (net of related taxes where applicable). Reclassification adjustments for gain or loss of derivatives are included in the relevant line item in the statement of income. See also Note 2 (aa). |
Contingencies | x. Contingencies Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group but which will only be resolved when one or more future events occur or fail to occur. The Group’s management assesses such contingent liabilities and estimated legal fees. Such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Management applies the guidance in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material are disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. |
Derivatives and hedging | y. Derivatives and hedging The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. The effective portion and the ineffective portion of the gain or loss on the hedging instrument is recognized as other comprehensive income (loss). The effective portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses-net. |
Restructuring Costs | z. Restructuring Costs Restructuring costs have been recorded in connection with TAT’s restructuring plan announced in March 2021. Following this decision and in anticipation of ongoing efficiency measures in our business, TAT’s management has made estimates and judgments regarding future plans, mainly related to employee termination benefit costs. Management also assesses the recoverability of long-lived assets employed in the business. In certain instances, asset lives have been shortened based on changes in the estimated useful lives of the affected assets. Asset-related impairments and employee's severance and other related costs are reflected within asset impairments of fixed assets, provision for restructuring plan and restructuring expenses. |
Recently Issued Accounting Principles: | aa. Recently Issued Accounting Principles: New accounting pronouncements effective in future periods: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amended guidance enhances income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid information. This guidance requires disclosure of specific categories in the effective tax rate reconciliation and further information on reconciling items meeting a quantitative threshold. In addition, the amended guidance requires disaggregating income taxes paid (net of refunds received) by federal, state, and foreign taxes. It also requires disaggregating individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amended guidance is effective for fiscal years beginning after December 15, 2024. The guidance can be applied either prospectively or retrospectively. We are evaluating the impact this amended guidance may have on the footnotes to our consolidated financial statements. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. We are evaluating the impact this amended guidance may have on the footnotes to our consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Deposit Reported | 2023 2022 Cash and cash equivalents $ 15,979 $ 7,722 Restricted deposit short term 661 - Restricted deposit long term 302 304 Total cash and cash equivalents and restricted cash equivalents $ 16,942 $ 8,026 |
Schedule of Property, Plant and Equipment Estimated Useful Lives | Years Buildings 25 – 39 Leasehold improvements 3 - 20 Machinery and equipment 15 - 20 Motor vehicles 7 Office furniture and equipment 3 - 5 Internal use software 7 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | December 31, 2023 Level 1 Level 2 Level 3 Total Liability : - $ (22 ) - $ (22 ) December 31, 2022 Level 1 Level 2 Level 3 Total Liability : - $ (31 ) - $ (31 ) |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | December 31, 2023 2022 Raw materials and components $ 36,934 $ 30,410 Work in progress 13,493 14,525 Finished goods 853 824 Total inventory (**) $ 51,280 $ 45,759 |
INVESTMENT IN AFFILIATES (Table
INVESTMENT IN AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates [Abstract] | |
Schedule of Investment in Affiliates | December 31, 2023 2022 Balance sheets: Current assets $ 2,048 $ 913 Non-current assets 922 1,168 Current liabilities 1,395 1,426 Year ended December 31, 2023 2022 2021 Statements of operation: Revenues $ 2,702 $ 1,277 $ 501 Gross profit (loss) 1,739 605 (22 ) Net income (loss) 987 365 (148 ) Net income (losses) attributable to the Company 503 184 (76 ) |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | December 31, 2023 2022 Cost: Land and buildings $ 10,739 $ 10,739 Leasehold improvements 9,164 6,391 Machinery and equipment 76,664 75,518 Motor vehicles 273 302 Office furniture and equipment 1,378 2,362 Internal use software 3,768 2,610 101,986 97,922 Less: Accumulated depreciation 59,432 54,499 Depreciated cost $ 42,554 $ 43,423 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Schedule of Lease Cost | Year ended December 31, 2023 Year ended December 31, 2022 Operating lease expenses 1,173 1,316 |
Schedule of Supplemental Cash Flow Information Related to Leases | Year ended December 31, 2023 Year ended December 31, 2022 Operating cash flows from operating leases 1,640 1,316 Right-of-use assets obtained in exchange for lease obligations (non-cash) 1,345 318 |
Schedule of Operating Cash Flows | December 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets 2,746 2,477 Current operating lease liabilities 1,033 904 Non-current operating lease liabilities 1,697 1,535 Total operating lease liabilities 2,730 2,439 Weighted Average Remaining Lease Term Operating leases - Israel 5 years 2 years Operating leases – United States 3 years 4 years Weighted Average discount rate Operating leases - Israel 5 % 4.5 % Operating leases – United States 4.84 % 4.84 % |
Schedule of Maturities of Lease Liabilities | Year Amount 2024 1,056 2025 810 2026 385 2027 281 2028 and after 472 Total lease payments 3,004 Less imputed interest (274 ) Total $ 2,730 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Intangible Assets | December 31, 2023 2022 Commercial license Cost $ 2,509 $ 2,030 Accumulated amortization (686 ) (407 ) Amortized cost $ 1,823 $ 1,623 |
RESTRUCTURING COST (Tables)
RESTRUCTURING COST (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Plan | Restructuring Items December 31, 2023 December 31, 2022 Balance sheet Other Provisions $ - $ 190 Investment in building and infrastructures - 4,571 Investment in machinery (**) - 7,799 Total $ - $ 12,560 Profit and loss Restructuring expenses, net Forfeited guarantee Employee’s termination cost - 975 Restructuring income from lease modification - - Restructuring expenses from asset’s impairment - - Other restructuring expenses - 740 $ - $ 1,715 Cost of sales Acceleration of assets depreciation expenses - - Total $ - $ 1,715 * Net cash used in operating activity for restructuring expenses in 2023 and 2022 was $0 and $1.7 million respectively. ** In previous years, investment in machinery was offset by a grant of $2.7 million ($1.5 million in 2022 and $1.2 million in 2021) received from the State of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years |
LONG-TERM LOANS AND CREDIT LI_2
LONG-TERM LOANS AND CREDIT LINES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Line of Credit Facilities | Israel Line of Credit Gov guaranteed loans Machinary finance loans Commercial loans Total balance amount $4,710 $2,612 Rate(*) 7.25% 6.65% Duration 5-10 7 USA Total balance amount $12,138 $702 $7,066 Rate 2.9%-7.75% 6.5% 3.75%-4.2% Duration (Years) Revolving 5 7-10 |
Schedule of Long-Term Loans and Credit Lines | Year Amount 2024 2,200 2025 2,146 2026 2,164 2027 2,277 2028 and after 6,299 $ 15,086 |
Schedule of Carrying Values and Fair Values of Long-Term Debt | Fair value Carrying Amount (Dollars in thousands) (Dollars in thousands) 2023 2022 2023 2022 Citi Bank Loan $ 4,486 $ 4,876 $ 4,412 $ 4,856 Bank Leumi Loan $ 2,473 $ 2,834 $ 2,447 $ 2,834 |
ACCRUED EXPENSES AND OTHER (T
ACCRUED EXPENSES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Account Payable and Accrued Expenses | December 31, 2023 2022 Employees and payroll accruals $ 5,179 $ 3,951 Accrued expenses 1,072 971 Authorities 116 200 *Contract liabilities 5,239 2,778 Warranty provision 325 243 Accrued royalties 1,736 1,448 Provision for restructuring plan 63 190 Other 222 95 13,952 $ 9,876 |
Schedule of Contract Liabilities | December 31, 2023 2022 Opening balance 2,778 1,147 Revenue recognized (2,080 ) (148 ) Additions 4,541 1,779 Closing balance 5,239 2,778 |
RELATED PARTIES' TRANSACTIONS_2
RELATED PARTIES' TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Related Parties | Year ended December 31, 2023 2022 2021 Revenue - Sales to related-party Company (*) - $ 17 $ 88 Cost and expenses - Supplies from related party (*) - - $ 654 |
Schedule of Balances with Related Parties | December 31, 2023 2022 Trade receivables and other receivables (*) - - Trade payables and other payables (*) - - |
LONG-TERM EMPLOYEE-RELATED OB_2
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Expected Future Benefits | Year Amount 2024 80 2025 - 2026 99 2027 134 2028 59 Thereafter (through 2032) 349 Total $ 721 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Options Assumptions | 2023 2022 2021 Expected stock price volatility 48% – 54.8% 48.4% – 54.48% 45.6% – 52% Expected option life (in years) 4.6 1-5 3.5-5 Risk free interest rate 3.71 % – 4.54% 0.63% – 4.04% 0.1% – 0.64% Dividend yield 0% 0% 0% |
Schedule of Stock Option Activity | Year ended December 31, Year ended December 31, Year ended December 31, 2023 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at the beginning of the year 675,000 $ 7.17 720,000 $ 6.8 621,460 $ 7.26 Granted 190,000 6.63 170,000 6.56 220,000 6.45 Forfeited (196,614 ) 6.52 (178,150 ) 5.63 (121,460 ) 8.9 Exercised *(43,386 ) 5.68 (36,850 ) 5.25 - - Outstanding at the end of the year 625,000 7.31 675,000 7.17 720,000 6.8 Exercisable at the end of the year 373,438 7.91 412,813 $ 7.54 379,375 $ 7.44 |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Year ended December 31, 2023 2022 2021 Numerator for EPS: Net Income (loss) from continuing operations $ 4,672 $ (1,562 ) $ (3,562 ) Denominator for EPS: Weighted average shares outstanding – basic 8,961,689 8,911,546 8,874,696 Dilutive shares 122,333 - - Weighted average shares outstanding – diluted 9,084,022 8,911,546 8,874,696 EPS: Basic and diluted $ 0.52 $ (0.175 ) $ (0.4 ) Diluted $ 0.51 $ (0.175 ) $ (0.4 ) |
DISCONTINUED OPERATION (Tables)
DISCONTINUED OPERATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Operations Information of Discontinued Operations | 2021 Revenue: Services $ 440 Cost of revenue: Services 429 Gross profit (loss) 11 Operating expenses: Research and development, net 16 Selling and marketing 29 General and administrative 68 113 Operating income (loss) (102 ) Financial expenses (income) - Income (loss) on disposal of discontinued operation (1) 529 Net Income (loss) $ 427 (1) During 2020, the Company wrote off total assets of $1.4 million. During 2021 the Company was succeeded to collect and sell some of the account receivable and inventory that were written off in total amount of $529. The final disposal of this activity was finalized in 2021. |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Tax Provisions to the Domestic and Effective Tax Rate | Year ended December 31, 2023 2022 2021 Income (loss) before taxes on income (tax benefit) from continued operations reported in the statements of income $ 4,745 $ (1,648 ) $ (4,575 ) Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income (tax benefit) 1,091 $ (379 ) $ (1,052 ) Increase (decrease) in taxes on income resulting from: Tax adjustment for foreign subsidiaries subject to a different tax rate (36 ) (13 ) 75 Reduced tax rate on income derived from "Preferred Enterprises" plans (484 ) (48 ) 149 Deferred tax assets from discontinued operation profit (loss) - 98 Reduced deferred tax asset from expecting utilization of carryforward losses 183 - - Tax in respect of prior years 59 24 Temporary differences for which no deferred taxes were recorded - 238 - Permanent differences - 77 71 Other adjustments (178 ) 164 (27 ) Taxes on income (tax benefit) as reported in the statements of income $ 576 $ 98 $ (662 ) |
Schedule of Income (Loss) from Continuing Operations Before Income Tax Domestic and Foreign | Year ended December 31, 2023 2022 2021 Domestic (Israel) $ 4,639 $ (1,201 ) $ (5,139 ) Foreign (United States) 106 (447 ) 564 $ 4,745 $ (1,648 ) $ (4,575 ) Year ended December 31, 2023 2022 2021 Current: Domestic (Israel) $ - $ - $ - Foreign (United States) 49 - - 49 - - Deferred: Domestic (Israel) 358 268 (579 ) Foreign (United States) 169 (111 ) (107 ) 576 157 (686 ) Previous years: Domestic (Israel) - - - Foreign (United States) - (59 ) 24 $ 576 $ 98 $ (662 ) |
Schedule of Components of Income Tax Provision | December 31, 2023 2022 Deferred tax assets: Provisions for employee benefits $ 657 $ 378 Inventory 1,337 1,288 Capital tax losses carryforward 956 2,475 Net operating losses carryforward 2,368 4,040 R&D expenses 121 144 Other 417 331 Deferred tax assets, before valuation allowance $ 5,856 $ 8,656 Valuation allowance (3,214 ) (5,202 ) Deferred tax assets, net 2,642 $ 3,454 Deferred tax liabilities: Property, plant and equipment (1,348 ) (1,884 ) Intangible assets (300 ) (341 ) Other temporary differences deferred tax liabilities - Deferred tax liabilities $ (1,648 ) $ (2,225 ) Net 994 $ 1,229 |
Schedule of Deferred Tax Assets and Liabilities | Balance, December 31, 2020 $ 5,484 Deductions during the year - Balance, December 31,2021 $ 5,484 Deductions during the year (282 ) Balance, December 31,2022 $ 5,202 Deductions during the year (1,988 ) Balance, December 31,2023 3,214 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Income by Segment | The following financial information is the information that CODM uses for analyzing the segment results. The figures are presented in consolidated method as presented to CODM. The following financial information is a summary of the operating income of each operational segment: Year ended December 31, 2023 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Elimination of inter-Company sales Consolidated Revenues external $ 27,555 $ 28,625 $ 50,760 $ 6,854 $ 113,794 Revenues internal 4,370 (4,370 ) - Cost of revenues 20,193 30,176 41,788 4,110 (4,941 ) 91,326 Gross profit 7,362 2,819 8,972 2,744 571 22,468 Research and development 159 177 268 111 715 Selling and marketing 1,618 1,539 2,040 326 5,523 General and administrative 2,772 3,436 3,555 825 10,588 Other expenses (income) 9 (3 ) (439 ) (423 ) 423 (433 ) Operating income (loss) $ 2,804 $ (2,330 ) $ 3,548 $ 1,905 $ 148 $ 6,075 Financial expenses, net (1,330 ) Loss before tax benefits 4,745 Year ended December 31, 2022 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Elimination of inter-Company sales Consolidated Revenues external $ 21,844 $ 21,063 $ 35,879 $ 5,770 - $ 84,556 Revenues internal - 3,733 - - (3,733 ) - Cost of revenues 18,778 20,750 28,890 3,495 (3,285 ) 68,628 Gross profit 3,066 4,046 6,989 2,275 (448 ) 15,928 Research and development 193 54 286 19 (74 ) 479 Selling and marketing 1,936 926 2,383 330 54 5,629 General and administrative 3,226 2,462 3,686 594 2 9,970 Other expenses (income) (1,566 ) (52 ) (18 ) - 1,547 (90 ) Restructuring expenses, net 975 618 - 122 - 1,715 Operating income (loss) $ (1,698 ) $ 38 $ 652 $ 1,210 $ (1,977 ) $ (1,775 ) Financial expenses, net 127 Loss before tax benefits (1,648 ) Year ended December 31, 2021 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and lease Overhaul and coating of jet engine components Elimination of inter-Company sales Consolidated Revenues external $ 25,977 $ 14,930 $ 33,232 $ 3,834 - $ 77,973 Revenues internal - 3,916 - - (3,916 ) - Cost of revenues 24,044 16,922 26,444 2,978 (3,685 ) 66,703 Gross profit (loss) 1,933 1,924 6,788 856 (231 ) 11,270 Research and development 122 80 202 160 (47 ) 517 Selling and marketing 2,040 1,015 1,961 220 (89 ) 5,147 General and administrative 3,128 1,855 3,004 558 (191 ) 8,354 Other expenses (income) (913 ) - (432 ) (19 ) 896 (468 ) Restructuring expenses, net 1,338 386 - 31 - 1,755 Operating income (loss) $ (3,782 ) $ (1,412 ) $ 2,053 $ (94 ) $ (800 ) $ (4,035 ) Financial expenses, net 540 Profit (loss) before taxes on income (4,575 ) |
Schedule of Assets, Depreciation and Amortization, and Capital Expenditures by Segment | c. The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments: Year ended December 31, 2023 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 39,131 42,491 58,023 9,400 (3,468 ) 145,577 Depreciation and amortization 557 878 3,078 268 (71 ) 4,710 Expenditure for segment assets 3,519 1,352 252 458 4,390 Year ended December 31, 2022 OEM of Heat Transfer Solutions and Aviation Accessories MRO Services for heat transfer components and OEM of heat transfer solutions MRO services for Aviation Components and Lease Overhaul and coating of jet engine components Amounts not allocated to segments Consolidated Total assets 24,251 39,193 55,616 8,846 (1,255 ) 126,651 Depreciation and amortization 690 432 2,325 259 - 3,706 Expenditure for segment assets 1,012 9,345 5,411 2,107 - 17,875 |
ENTITY-WIDE DISCLOSURE (Tables)
ENTITY-WIDE DISCLOSURE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Total Revenues by Geographical Location | Year ended December 31, 2023 2022 2021 Total revenues Total revenues Total revenues Sale of products Israel $ 3,527 $ 3,249 $ 5,532 United States 23,937 15,616 13,716 Other 7,777 6,595 6,622 $ 35,241 $ 25,460 $ 25,870 Year ended December 31, 2023 2022 2021 Total revenues Total revenues Total revenues Sale of Services Israel $ 4,170 $ 3,913 $ 2,213 United States 58,062 40,954 34,231 Other 16,321 14,229 15,659 $ 78,553 $ 59,096 $ 52,103 |
Schedule of Long-Lived Assets by Geographical Location | December 31, 2023 2022 2021 Israel $ 11,569 $ 10,231 $ 8,427 United States 35,002 41,270 26,978 Total $ 46,571 $ 51,501 $ 35,405 |
SUPPLEMENTAL CONSOLIDATED BAL_2
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Supplemental Consolidated Balance Sheets Information | Warranty provision Provision for current expected credit losses Balance, as of December 31, 2020 $ 250 $ 306 Additions 80 269 Deductions (87 ) (186 ) Balance, as of December 31, 2021 $ 243 $ 389 Additions - 200 Deductions - (62 ) Balance, as of December 31, 2022 $ 243 $ 527 Additions 79 90 Deductions (272 ) Balance as of December 31. 2023 322 345 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) | Dec. 31, 2023 |
TAT-Engineering [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Percentage of ownership held | 51% |
TAT [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Percentage of ownership held | 49% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Significant Accounting Policies [Line Items] | ||
Ordinary shares, par value per share | ₪ 0.9 | ₪ 0.9 |
Commercial license [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated lived intangible assets useful lives, years | 10 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Deposits Reported) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 15,979 | $ 7,722 | ||
Restricted deposit short term | 661 | 0 | ||
Restricted deposit long term | 302 | 304 | ||
Total cash and cash equivalents and restricted cash equivalents | $ 16,942 | $ 8,026 | $ 13,215 | $ 24,304 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Assets) (Details) | Dec. 31, 2023 |
Commercial license [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated lived intangible assets useful lives, years | 10 years |
Buildings [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 25 years |
Buildings [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 39 years |
Leasehold improvements [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 3 years |
Leasehold improvements [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 15 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 20 years |
Motor Vehicles [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 7 years |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 3 years |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated lived intangible assets useful lives, years | 5 years |
Internal use software [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives, years | 7 years |
FAIR VALUE MEASUREMENT (Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Notional amount of open call options | $ 0 |
Notional amount of open put options | $ 7,774 |
FAIR VALUE MEASUREMENT (Schedul
FAIR VALUE MEASUREMENT (Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Derivative financial instruments | $ (22) | $ (31) |
Level 1 [Member] | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Derivative financial instruments | (22) | (31) |
Level 3 [Member] | ||
Assets: | ||
Derivative financial instruments | $ 0 | $ 0 |
INVENTORY (Narrative) (Details)
INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Total amount of Rotables | $ 10,481 | $ 8,193 | |
Slow moving inventory write-down | $ 187 | $ 1,284 | $ 624 |
INVENTORY (Schedule of Inventor
INVENTORY (Schedule of Inventory, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Raw materials and components | $ 36,934 | $ 30,410 | |
Work in progress | 13,493 | 14,525 | |
Finished goods | 853 | 824 | |
Total inventory | [1] | $ 51,280 | $ 45,759 |
[1]The total amount of Rotables included in the Company spare parts inventory for the years ended December 31, 2022 and 2021 were $8,193 and $8,623, respectively. |
INVESTMENT IN AFFILIATES (Narra
INVESTMENT IN AFFILIATES (Narrative) (Details) | Dec. 31, 2023 |
TAT-Engineering [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 51% |
TAT [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 49% |
INVESTMENT IN AFFILIATES (Sched
INVESTMENT IN AFFILIATES (Schedule of Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance sheets: | |||
Current assets | $ 94,326 | $ 75,150 | |
Non-current assets | 46,571 | 51,501 | $ 35,405 |
Current liabilities | 39,311 | 28,990 | |
Statements of operation: | |||
Revenues | 113,794 | 84,556 | 77,973 |
Gross profit (loss) | 22,468 | 15,928 | 11,270 |
Net income (losses) attributable to the Company | 4,672 | (1,562) | (3,562) |
TAT-Engineering LLC [Member] | |||
Balance sheets: | |||
Current assets | 2,048 | 913 | |
Non-current assets | 922 | 1,168 | |
Current liabilities | 1,395 | 1,426 | |
Statements of operation: | |||
Revenues | 2,702 | 1,277 | 501 |
Gross profit (loss) | 1,739 | 605 | (22) |
Net income (loss) | 987 | 365 | (148) |
Net income (losses) attributable to the Company | $ 503 | $ 184 | $ (76) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 101,986 | $ 97,922 | |
Less: Accumulated depreciation | 59,432 | 54,499 | |
Depreciated cost | 42,554 | 43,423 | |
Depreciation expenses | 4,430 | 3,500 | $ 4,718 |
Restructuring expense | 0 | 1,715 | $ 1,755 |
Land and Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 10,739 | 10,739 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 9,164 | 6,391 | |
Acceleration of amortization | 1,200 | ||
Impairment charges | 1,800 | ||
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 76,664 | 75,518 | |
Motor Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 273 | 302 | |
Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 1,378 | 2,362 | |
Internal Use Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 3,768 | $ 2,610 | |
OEM [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Restructuring expense | $ 600 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease revenue | $ 5.5 | $ 4.8 | $ 2.7 |
Lease expiration date | Dec. 31, 2029 | ||
Write off Operating ROU assets | $ 1.8 | ||
Write off Operating Lease liability | $ 3.3 | ||
TAT Industries [Member] | |||
Lease expiration date | Apr. 30, 2029 | ||
Write off Operating ROU assets | $ 1 |
LEASES (Schedule of Lease Cost)
LEASES (Schedule of Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | ||
Operating lease expenses | $ 1,173 | $ 1,316 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |||
Operating cash flows from operating leases | $ 1,640 | $ 1,316 | |
Right-of-use assets obtained in exchange for lease obligations (non-cash) | $ 1,345 | $ 318 | $ 399 |
LEASES (Schedule of Operating C
LEASES (Schedule of Operating Cash Flows) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 2,746 | $ 2,477 |
Current operating lease liabilities | 1,033 | 904 |
Non-current operating lease liabilities | 1,697 | 1,535 |
Total operating lease liabilities | $ 2,730 | $ 2,439 |
ISRAEL | ||
Operating Leases | ||
Weighted Average Remaining Lease Term | 5 years | 2 years |
Weighted Average discount rate percentage | 5% | 4.50% |
UNITED STATES | ||
Operating Leases | ||
Weighted Average Remaining Lease Term | 3 years | 4 years |
Weighted Average discount rate percentage | 4.84% | 4.84% |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
2024 | $ 1,056 | |
2025 | 810 | |
2026 | 385 | |
2027 | 281 | |
2028 and after | 472 | |
Total lease payments | 3,004 | |
Less imputed interest | (274) | |
Total | $ 2,730 | $ 2,439 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Year one | $ 279 |
Year Two | 279 |
Year Three | 279 |
Year Four | 279 |
Year Five | $ 279 |
INTANGIBLE ASSETS (Schedule of
INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - Commercial license [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,509 | $ 2,030 |
Accumulated amortization | (686) | (407) |
Amortized cost | $ 1,823 | $ 1,623 |
RESTRUCTURING COST (Schedule of
RESTRUCTURING COST (Schedule of Restructuring plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Balance sheet | ||||
Other Provisions | $ 0 | $ 190 | ||
Investment in building and infrastructures | 0 | 4,571 | ||
Investment in machinery | [1] | 0 | 7,799 | |
Total | 0 | 12,560 | ||
Restructuring expenses, net | ||||
Employee's termination cost | 0 | 975 | ||
Restructuring income from lease modification | 0 | 0 | ||
Restructuring expenses from asset's impairment | 0 | 0 | ||
Other restructuring expenses | 0 | 740 | ||
Restructuring expense | 0 | 1,715 | $ 1,755 | |
Cost of sales | ||||
Acceleration of assets depreciation expenses | 0 | 0 | ||
Total | 0 | 1,715 | ||
Net cash used in operating activity for restructuring expenses | 0 | 1,700 | ||
Government incentives [Member] | ||||
Balance sheet | ||||
Investment in machinery | $ 2,700 | $ 1,500 | $ 1,200 | |
[1]In previous years, investment in machinery was offset by a grant of $2.7 million ($1.5 million in 2022 and $1.2 million in 2021) received from the State of Oklahoma as part of a larger incentive plan granted to TAT. As part of this plan TAT Limco will be entitled to several incentives including additional grants, tax exempt and incentives and support in employee's salaries over the next 10 years |
LONG-TERM LOANS AND CREDIT LI_3
LONG-TERM LOANS AND CREDIT LINES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2023 | Aug. 31, 2022 | May 31, 2022 | Mar. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2023 | Feb. 24, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||||||
Current maturities of long-term loans | $ 2,200 | $ 1,876 | |||||||
Short-term credit line | 12,138 | $ 6,101 | |||||||
Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional loan amount of short term line of credit | 1,000 | ||||||||
Outstanding amount of short term debt | $ 10,000 | ||||||||
Percentage of tangible assets net | 65% | ||||||||
Debt service coverage ratio | 1.25% | ||||||||
Maximum net debt to EBITDA ratio | 3.50% | ||||||||
Machinary Finance Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Short-term credit line | $ 700 | ||||||||
Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Net debt to equity ratio | 15% | ||||||||
Second credit line [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Short-term credit line | $ 3,000 | $ 4,500 | |||||||
Line of Credit Facility, Interest Rate During Period | 3.75% | ||||||||
TAT Industries [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 3,700 | ||||||||
Long term debt, interest rate | 6.65% | ||||||||
Long-term debt, interest rate above LIBOR | 0.90% | ||||||||
Long-term debt, frequency of payment | equal monthly installment as of April 2022 through March 2029. | ||||||||
TAT Industries [Member] | Commercial Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 5,000 | ||||||||
Long-term debt, frequency of payment | maturity date of December 2031 | maturity date of March 2024 | maturity date of February 2024 carry an interest of WSJP+0.1% | ||||||
Short-term credit line | $ 7,000 | ||||||||
Line of Credit Facility, Interest Rate During Period | 4.20% | 2.90% | |||||||
Debt service coverage ratio | 115% | ||||||||
Minimum debt service coverage ratio | 1 | ||||||||
TAT Industries [Member] | Guaranteed by Israeli government [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 6,300 | ||||||||
Long term debt, interest rate | 7.25% | ||||||||
Long-term debt, interest rate above LIBOR | 1.50% | ||||||||
Long-term debt, frequency of payment | equal monthly installments as of April 2021 through February 2031. | ||||||||
Short-term credit line | $ 1,200 | ||||||||
TAT Industries [Member] | Guaranteed by Israeli government [Member] | Machinary Finance Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt, interest rate | 6.65% | ||||||||
Us Subsidiaries [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Short-term credit line | $ 17,000 | ||||||||
Amount of tangible net worth covenant changed | $ 30,000 | ||||||||
Us Subsidiaries [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Terms of line of credit facility | 2 years | ||||||||
Us Subsidiaries [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Short-term credit line | $ 7,000 | ||||||||
Us Subsidiaries [Member] | Maximum [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Interest Rate During Period | 65% | ||||||||
Us Subsidiaries [Member] | Minimum [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Interest Rate During Period | 55% |
LONG-TERM LOANS AND CREDIT LI_4
LONG-TERM LOANS AND CREDIT LINES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
ISRAEL | Commercial Loan [Member] | |
Debt Instrument [Line Items] | |
Total balance amount | $ 2,612 |
Rate | 6.65% |
Duration | 7 years |
ISRAEL | Government Guarantee Loan [Member] | |
Debt Instrument [Line Items] | |
Total balance amount | $ 4,710 |
Rate | 7.25% |
ISRAEL | Government Guarantee Loan [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Duration | 10 years |
ISRAEL | Government Guarantee Loan [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Duration | 5 years |
UNITED STATES | Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Total balance amount | $ 12,138 |
UNITED STATES | Line of Credit [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Rate | 7.75% |
UNITED STATES | Line of Credit [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Rate | 2.90% |
UNITED STATES | Commercial Loan [Member] | |
Debt Instrument [Line Items] | |
Total balance amount | $ 7,066 |
UNITED STATES | Commercial Loan [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Rate | 4.20% |
Duration | 10 years |
UNITED STATES | Commercial Loan [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Rate | 3.75% |
Duration | 7 years |
UNITED STATES | Machinary Finance Loans [Member] | |
Debt Instrument [Line Items] | |
Total balance amount | $ 702 |
Rate | 6.50% |
Duration | 5 years |
LONG-TERM LOANS AND CREDIT LI_5
LONG-TERM LOANS AND CREDIT LINES (Schedule of Maturities on Long Term Loans) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
2024 | $ 2,200 |
2025 | 2,146 |
2026 | 2,164 |
2027 | 2,277 |
2028 and after | 6,299 |
Total | $ 15,086 |
LONG-TERM LOANS AND CREDIT LI_6
LONG-TERM LOANS AND CREDIT LINES (Schedule of fair value and carrying Amount of long-term debt) (Details) - Line of Credit [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Citi Bank Loan [Member] | ||
Debt Instrument [Line Items] | ||
Fair value | $ 4,486 | $ 4,876 |
Carrying Amount | 4,412 | 4,856 |
Bank Leumi Loan [Member] | ||
Debt Instrument [Line Items] | ||
Fair value | 2,473 | 2,834 |
Carrying Amount | $ 2,447 | $ 2,834 |
GOVERNMENT GRANTS (Narrative) (
GOVERNMENT GRANTS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deduction from payroll and overhead cost of revenues and operating expenses | $ 1.2 | |
Grants Receivable | $ 2 | |
TAT Industries [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Grants Receivable | $ 3.6 |
ACCRUED EXPENSES AND OTHER (S
ACCRUED EXPENSES AND OTHER (Schedule of Other Account Payable and Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Other account payable and accrued expenses: | |||||
Employees and payroll accruals | $ 5,179 | $ 3,951 | |||
Accrued expenses | 1,072 | 971 | |||
Authorities | 116 | 200 | |||
Contract liabilities | 5,239 | [1] | 2,778 | [1] | $ 1,147 |
Warranty provision | 325 | 243 | |||
Accrued royalties | 1,736 | 1,448 | |||
Provision for restructuring plan | 63 | 190 | |||
Other | 222 | 95 | |||
Total other account payable and accrued expenses | $ 13,952 | $ 9,876 | |||
[1]Contract liabilities |
ACCRUED EXPENSES AND OTHER (Sch
ACCRUED EXPENSES AND OTHER (Schedule of Contract liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Payables and Accruals [Abstract] | ||||
Opening balance | $ 2,778 | [1] | $ 1,147 | |
Revenue recognized | (2,080) | (148) | ||
Additions | 4,541 | 1,779 | ||
Closing balance | [1] | $ 5,239 | $ 2,778 | |
[1]Contract liabilities |
RELATED PARTIES' TRANSACTIONS_3
RELATED PARTIES' TRANSACTIONS AND BALANCES (Schedule of Transactions and Balances with Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Transactions: | ||||
Sales to related-party Company | [1] | $ 0 | $ 17 | $ 88 |
Supplies from related party | [1] | 0 | 0 | $ 654 |
Balances: | ||||
Trade receivables and other receivables | [1] | 0 | 0 | |
Trade payables and other payables | [1] | $ 0 | $ 0 | |
[1]includes mainly transactions with TAT-Engineering affiliated companies. |
LONG-TERM EMPLOYEE-RELATED OB_3
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Severance payments actually paid | $ 116 | $ 274 | $ 97 |
Expected deposits to be made in the next fiscal year for severance and pension payment obligations | 590 | ||
TAT and Turbochrome [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Severance pay expenses | 610 | 825 | 778 |
Limco Piedmont Inc [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(K) profit sharing plan contributions made by company | $ 569 | $ 454 | $ 349 |
Percentage of employees contribution matched by employer | 100% | ||
Percentage of employees contribution | 2% | ||
Percentage of employees contribution matched by employer, two | 50% |
LONG-TERM EMPLOYEE-RELATED OB_4
LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
2024 | $ 80 |
2025 | 0 |
2026 | 99 |
2027 | 134 |
2028 | 59 |
Thereafter (through 2032) | 349 |
Total | $ 721 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Commissions and Royalty Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commissions arrangements: | |||
Commission expenses | $ 361 | $ 412 | $ 423 |
Limco Piedmont Inc [Member] | |||
Royalty commitments: | |||
Royalty expense | $ 3,255 | 1,747 | 2,245 |
Limco Piedmont Inc [Member] | Minimum [Member] | |||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 5% | ||
Royalties percentage rate for sales of additional products developed by third parties | 5% | ||
Limco Piedmont Inc [Member] | Maximum [Member] | |||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 13% | ||
Royalties percentage rate for sales of additional products developed by third parties | 25% | ||
TAT Technologies Ltd [Member] | |||
Royalty commitments: | |||
Royalty expense | $ 43 | $ 47 | $ 95 |
TAT Technologies Ltd [Member] | Minimum [Member] | |||
Commissions arrangements: | |||
Percentage rate paid to sales agents for marketing commissions | 1% | ||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 10% | ||
TAT Technologies Ltd [Member] | Maximum [Member] | |||
Commissions arrangements: | |||
Percentage rate paid to sales agents for marketing commissions | 10% | ||
Royalty commitments: | |||
Royalties percentage rate for sales of products developed by third parties | 15% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Guarantees) (Details) - Dec. 31, 2023 ₪ in Thousands, $ in Thousands | ILS (₪) | USD ($) |
TAT Technologies Ltd [Member] | ||
Guarantees: | ||
Bank guarantee to secure liability to Israeli customs | ₪ 151 | $ 42 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Litigation) (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Jul. 12, 2022 | Dec. 29, 2022 | |
Limco Piedmont Inc [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation, counter claim | $ 220 | |
Tat Industries Ltd [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation, total damages sought by customer | $ 750 |
SHAREHOLDERS' EQUITY (Stock Opt
SHAREHOLDERS' EQUITY (Stock Option Plans TAT Technology) (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 21, 2023 ILS (₪) ₪ / shares shares | Dec. 21, 2023 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 ₪ / shares $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2023 ₪ / shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 21, 2023 $ / shares | Aug. 28, 2023 $ / shares shares | May 30, 2023 $ / shares shares | Mar. 29, 2023 $ / shares shares | Feb. 10, 2023 $ / shares shares | Jan. 09, 2023 $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 01, 2022 $ / shares shares | Nov. 08, 2022 ₪ / shares shares | May 22, 2022 $ / shares shares | May 01, 2022 $ / shares shares | Mar. 22, 2022 $ / shares shares | Aug. 30, 2021 $ / shares shares | Jul. 25, 2021 $ / shares shares | Mar. 30, 2021 $ / shares shares | Jun. 28, 2012 ₪ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Private offering expenses | $ | $ 141,000 | ||||||||||||||||||||||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.9 | ₪ 0.9 | |||||||||||||||||||||
Options exercised on cashless basis | 12,500 | ||||||||||||||||||||||
Number of options | |||||||||||||||||||||||
Options, beginning | 675,000 | 720,000 | 621,460 | ||||||||||||||||||||
Options, Granted | 190,000 | 170,000 | 220,000 | ||||||||||||||||||||
Options, Forfeited | (196,614) | (178,150) | (121,460) | ||||||||||||||||||||
Options, Exercised | (43,386) | (36,850) | 0 | ||||||||||||||||||||
Options, ending | 625,000 | 675,000 | 720,000 | ||||||||||||||||||||
Exercisable at end of year | 379,375 | 373,438 | 412,813 | ||||||||||||||||||||
Weighted average exercise price | |||||||||||||||||||||||
Options, beginning | $ / shares | $ 7.17 | ₪ 6.8 | $ 7.26 | ||||||||||||||||||||
Options, Granted | $ / shares | 6.63 | 6.56 | 6.45 | ||||||||||||||||||||
Options, Forfeited | $ / shares | 6.52 | 5.63 | 8.9 | ||||||||||||||||||||
Options, Exercised | $ / shares | 5.68 | 5.25 | 0 | ||||||||||||||||||||
Options, ending | $ / shares | 7.31 | 7.17 | 6.8 | ||||||||||||||||||||
Exercisable at end of year | $ / shares | 7.44 | $ 7.91 | $ 7.54 | ||||||||||||||||||||
Weighted-average grant-date fair value of options granted | $ / shares | $ 2.45 | ₪ 2.33 | $ 1.92 | ||||||||||||||||||||
Private placement to Israeli institutional and accredited investors [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Issuance and sale of ordinary shares | 1,158,600 | 1,158,600 | |||||||||||||||||||||
purchase price, per share | ₪ / shares | ₪ 31.7 | ||||||||||||||||||||||
Amount per share based on exchange rate published by the Bank of Israel | $ / shares | $ 8.77 | ||||||||||||||||||||||
Net proceeds after deducting offering expenses | ₪ 36,200 | $ 10,000 | |||||||||||||||||||||
Percentage of newly issued shares | 11.50% | 11.50% | |||||||||||||||||||||
Private offering expenses | $ | $ 141,000 | ||||||||||||||||||||||
2012 Plan [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares authorized for the plan | 40,000 | 30,000 | 35,000 | 35,000 | 50,000 | 50,000 | 550,000 | 50,000 | 20,000 | 50,000 | 100,000 | 20,000 | 25,000 | 980,000 | |||||||||
Number of shares approved allocated to grantees | 1,530,000 | ||||||||||||||||||||||
Vesting period for plan | 4 years | ||||||||||||||||||||||
Expiration period for plan | 7 years | ||||||||||||||||||||||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.9 | ₪ 0.9 | |||||||||||||||||||||
Exercise price | $ / shares | $ 8 | $ 6.45 | $ 6.07 | $ 6.31 | $ 6.31 | $ 6.42 | $ 6.56 | $ 6.42 | $ 6.59 | $ 7 | $ 6.41 | $ 5.91 | |||||||||||
Expected option life (in years) | 4 years 7 months 6 days | ||||||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||||
Weighted average exercise price | |||||||||||||||||||||||
Aggregate intrinsic value | $ | $ 0 | $ 1,780,000 | $ 0 | ||||||||||||||||||||
Unrecognized compensation cost related to non-vested stock options | $ | $ 382,000 | ||||||||||||||||||||||
Unrecognized compensation weighted average period of recognition, years | 1 year 4 months 20 days | ||||||||||||||||||||||
2012 Plan [Member] | Tel Aviv Stock Exchange [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares approved allocated to grantees | 1,291,755 | ||||||||||||||||||||||
2012 Plan [Member] | Minimum [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Expected stock price volatility | 48% | 48.40% | 45.60% | ||||||||||||||||||||
Expected option life (in years) | 1 year | 3 years 6 months | |||||||||||||||||||||
Risk free interest rate | 3.71% | 0.63% | 0.10% | ||||||||||||||||||||
2012 Plan [Member] | Maximum [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Expected stock price volatility | 54.80% | 54.48% | 52% | ||||||||||||||||||||
Expected option life (in years) | 5 years | 5 years | |||||||||||||||||||||
Risk free interest rate | 4.54% | 4.04% | 0.64% | ||||||||||||||||||||
2012 Plan [Member] | Vest upon the lapse of 12 months [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Vesting percentage | 25% | ||||||||||||||||||||||
2012 Plan [Member] | Vest on a quarterly basis [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Vesting period for plan | 3 years | ||||||||||||||||||||||
Vesting percentage | 75% | ||||||||||||||||||||||
2012 Plan One [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares authorized for the plan | 25,000 | ||||||||||||||||||||||
Exercise price | $ / shares | $ 5.91 | ||||||||||||||||||||||
2012 Plan Two [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares authorized for the plan | 25,000 | ||||||||||||||||||||||
Exercise price | $ / shares | $ 5.91 | ||||||||||||||||||||||
2012 Plan Three [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares authorized for the plan | 25,000 | ||||||||||||||||||||||
Exercise price | $ / shares | $ 5.91 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator for EPS: | |||
Net Income (loss) from continuing operations | $ 4,672 | $ (1,562) | $ (3,562) |
Denominator for EPS: | |||
Weighted average shares outstanding - basic | 8,961,689 | 8,911,546 | 8,874,696 |
Dilutive shares | 122,333 | 0 | 0 |
Weighted average shares outstanding - diluted | 9,084,022 | 8,911,546 | 8,874,696 |
EPS: | |||
Basic and diluted | $ 0.52 | $ (0.175) | $ (0.4) |
Diluted | $ 0.51 | $ (0.175) | $ (0.4) |
Anti-dilutive options excluded from calculation of diluted income (loss) per share | 625,000 | 675,000 | 720,000 |
DISCONTINUED OPERATION (Schedul
DISCONTINUED OPERATION (Schedule of Operations Information of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gross profit (loss) | $ 11 | ||
Operating expenses: | |||
Research and development, net | 16 | ||
Selling and marketing | 29 | ||
General and administrative | 68 | ||
Total operating expenses | 113 | ||
Operating income (loss) | (102) | ||
Financial expenses (income) | 0 | ||
Income (loss) on disposal of discontinued operation | [1] | 529 | |
Net Income (loss) | 427 | ||
Total assets write off | $ 1,400 | ||
Total amount of account receivable and inventory written off | 529 | ||
Services [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 440 | ||
Cost of revenue | $ 429 | ||
[1]During 2020, the Company wrote off total assets of $1.4 million. During 2021 the Company was succeeded to collect and sell some of the account receivable and inventory that were written off in total amount of $529. The final disposal of this activity was finalized in 2021. |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017 | Aug. 31, 2013 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2014 | |
Income Taxes [Line Items] | ||||||
Preferred Income tax rate not within Development Zone A | 12% | 16% | ||||
Preferred Income tax rate for Development Zone A | 6% | 9% | ||||
Accumulated tax loss carryforward from Israeli subsidiary | $ 2,927,000 | $ 3,068,000 | ||||
Accumulated tax loss carry forward | $ 138 | $ 970 | ||||
Domestic Maximum Tax Rate For Distributed Dividends From Preferred Income | 20% | 15% | ||||
Corporate tax rate for Israel | 23% | 23% | 23% | |||
Reduction of corporate tax rate | 80% | |||||
Uniform tax rate for Development Zone A | 7.50% | |||||
Deferred tax asset, state operating loss carryforward | $ 956 | $ 2,475 | ||||
UNITED STATES | ||||||
Income Taxes [Line Items] | ||||||
Corporate tax rate for Israel | 21% | |||||
UNITED STATES | Minimum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Corporate tax rate for Israel | 3% | |||||
UNITED STATES | Maximum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Corporate tax rate for Israel | 6% | |||||
TAT Technologies Ltd [Member] | ||||||
Income Taxes [Line Items] | ||||||
Preferred Income tax rate not within Development Zone A | 16% | |||||
Deferred tax asset, capital loss carryforward | $ 956 | |||||
TAT Gedera [Member] | ||||||
Income Taxes [Line Items] | ||||||
Deferred tax asset, capital loss carryforward | $ 2,258 | |||||
Turbo chrome [Member] | ||||||
Income Taxes [Line Items] | ||||||
Preferred Income tax rate for Development Zone A | 7.50% |
TAXES ON INCOME (Schedule of Re
TAXES ON INCOME (Schedule of Reconciliation of Tax Provisions to the Domestic and Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before taxes on income (tax benefit) from continued operations reported in the statements of income | $ 4,745 | $ (1,648) | $ (4,575) |
Statutory tax rate in Israel | 23% | 23% | 23% |
Theoretical taxes on income (tax benefit) | $ 1,091 | $ (379) | $ (1,052) |
Increase (decrease) in taxes on income resulting from: | |||
Tax adjustment for foreign subsidiaries subject to a different tax rate | (36) | (13) | 75 |
Reduced tax rate on income derived from "Preferred Enterprises" plans | (484) | (48) | 149 |
Deferred tax assets from discontinued operation profit (loss) | 0 | 98 | |
Reduced deferred tax asset from expecting utilization of carryforward losses | 183 | 0 | 0 |
Tax in respect of prior years | 59 | 24 | |
Temporary differences for which no deferred taxes were recorded | 0 | 238 | 0 |
Permanent differences | 0 | 77 | 71 |
Other adjustments | (178) | 164 | (27) |
Taxes on income (tax benefit) as reported in the statements of income | $ 576 | $ 98 | $ (662) |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income (Loss) from Continuing Operations Before Income Tax Domestic and Foreign) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic (Israel) | $ 4,639 | $ (1,201) | $ (5,139) |
Foreign (United States) | 106 | (447) | 564 |
Income before taxes on income | $ 4,745 | $ (1,648) | $ (4,575) |
TAXES ON INCOME (Schedule of Co
TAXES ON INCOME (Schedule of Components of Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Domestic (Israel) | $ 0 | $ 0 | $ 0 |
Foreign (United States) | 49 | 0 | 0 |
Total current | 49 | 0 | 0 |
Deferred: | |||
Domestic (Israel) | 358 | 268 | (579) |
Foreign (United States) | 169 | (111) | (107) |
Total deferred | 576 | 157 | (686) |
Previous Years: | |||
Domestic (Israel) | 0 | 0 | 0 |
Foreign (United States) | 0 | (59) | 24 |
Taxes on income (tax benefit) | $ 576 | $ 98 | $ (662) |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||||
Provisions for employee benefits | $ 657 | $ 378 | ||
Inventory | 1,337 | 1,288 | ||
Capital tax losses carryforward | 956 | 2,475 | ||
Net operating losses carryforward | 2,368 | 4,040 | ||
R&D expenses | 121 | 144 | ||
Other | 417 | 331 | ||
Deferred tax assets, before valuation allowance | 5,856 | 8,656 | ||
Valuation allowance | (3,214) | (5,202) | $ (5,484) | $ (5,484) |
Deferred tax assets, net | 2,642 | 3,454 | ||
Deferred tax liabilities: | ||||
Property, plant and equipment | (1,348) | (1,884) | ||
Intangible assets | (300) | (341) | ||
Other temporary differences deferred tax liabilities | 0 | |||
Deferred tax liabilities | (1,648) | (2,225) | ||
Deferred Tax Assets, Net, Total | $ 994 | $ 1,229 |
TAXES ON INCOME (Schedule of Ch
TAXES ON INCOME (Schedule of Changes in Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Valuation Allowance | |||
Beginning balance | $ 5,202 | $ 5,484 | $ 5,484 |
Deductions during the year | (1,988) | (282) | 0 |
Ending balance | $ 3,214 | $ 5,202 | $ 5,484 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Operating Income By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues external | $ 113,794 | $ 84,556 | $ 77,973 |
Revenues internal | 0 | 0 | 0 |
Cost of revenues | 91,326 | 68,628 | 66,703 |
Gross profit | 22,468 | 15,928 | 11,270 |
Research and development | 715 | 479 | 517 |
Selling and marketing | 5,523 | 5,629 | 5,147 |
General and administrative | 10,588 | 9,970 | 8,354 |
Other expenses (income) | (433) | (90) | (468) |
Restructuring Charges | 0 | 1,715 | 1,755 |
Operating income (loss) | 6,075 | (1,775) | (4,035) |
Financial expense, net | (1,330) | 127 | 540 |
Profit (loss) before taxes on income | 4,745 | (1,648) | (4,575) |
OEM of Heat Transfer Solutions and Aviation Accessories [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues external | 27,555 | 21,844 | 25,977 |
Revenues internal | 0 | 0 | |
Cost of revenues | 20,193 | 18,778 | 24,044 |
Gross profit | 7,362 | 3,066 | 1,933 |
Research and development | 159 | 193 | 122 |
Selling and marketing | 1,618 | 1,936 | 2,040 |
General and administrative | 2,772 | 3,226 | 3,128 |
Other expenses (income) | 9 | (1,566) | (913) |
Restructuring Charges | 975 | 1,338 | |
Operating income (loss) | 2,804 | (1,698) | (3,782) |
MRO Services for heat transfer components and OEM of heat transfer solutions [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues external | 28,625 | 21,063 | 14,930 |
Revenues internal | 4,370 | 3,733 | 3,916 |
Cost of revenues | 30,176 | 20,750 | 16,922 |
Gross profit | 2,819 | 4,046 | 1,924 |
Research and development | 177 | 54 | 80 |
Selling and marketing | 1,539 | 926 | 1,015 |
General and administrative | 3,436 | 2,462 | 1,855 |
Other expenses (income) | (3) | (52) | 0 |
Restructuring Charges | 618 | 386 | |
Operating income (loss) | (2,330) | (38) | (1,412) |
MRO services for Aviation Components and Lease [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues external | 50,760 | 35,879 | 33,232 |
Revenues internal | 0 | 0 | |
Cost of revenues | 41,788 | 28,890 | 26,444 |
Gross profit | 8,972 | 6,989 | 6,788 |
Research and development | 268 | 286 | 202 |
Selling and marketing | 2,040 | 2,383 | 1,961 |
General and administrative | 3,555 | 3,686 | 3,004 |
Other expenses (income) | (439) | (18) | (432) |
Restructuring Charges | 0 | 0 | |
Operating income (loss) | 3,548 | 652 | 2,053 |
Overhaul and coating of jet engine components [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues external | 6,854 | 5,770 | 3,834 |
Revenues internal | 0 | 0 | |
Cost of revenues | 4,110 | 3,495 | 2,978 |
Gross profit | 2,744 | 2,275 | 856 |
Research and development | 111 | 19 | 160 |
Selling and marketing | 326 | 330 | 220 |
General and administrative | 825 | 594 | 558 |
Other expenses (income) | (423) | 0 | (19) |
Restructuring Charges | 122 | 31 | |
Operating income (loss) | 1,905 | 1,210 | (94) |
Elimination of inter-company sales [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenues external | 0 | 0 | |
Revenues internal | (4,370) | (3,733) | (3,916) |
Cost of revenues | (4,941) | (3,285) | (3,685) |
Gross profit | 571 | (448) | (231) |
Research and development | (74) | (47) | |
Selling and marketing | (54) | (89) | |
General and administrative | (2) | (191) | |
Other expenses (income) | 423 | 1,547 | 896 |
Restructuring Charges | 0 | 0 | |
Operating income (loss) | $ 148 | $ (1,977) | $ (800) |
SEGMENT INFORMATION (Schedule_2
SEGMENT INFORMATION (Schedule of Assets, Depreciation and Amortization, and Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 145,577 | $ 126,651 | |
Depreciation and amortization | 4,710 | 3,706 | $ 4,881 |
Expenditure for segment assets | 4,390 | 17,875 | |
OEM of Heat Transfer Solutions and Aviation Accessories [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 39,131 | 24,251 | |
Depreciation and amortization | 557 | 690 | |
Expenditure for segment assets | 3,519 | 1,012 | |
MRO Services for heat transfer components and OEM of heat transfer solutions [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 42,491 | 39,193 | |
Depreciation and amortization | 878 | 432 | |
Expenditure for segment assets | 1,352 | 9,345 | |
MRO services for Aviation Components and Lease [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 58,023 | 55,616 | |
Depreciation and amortization | 3,078 | 2,325 | |
Expenditure for segment assets | 252 | 5,411 | |
Overhaul and coating of jet engine components [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 9,400 | 8,846 | |
Depreciation and amortization | 268 | 259 | |
Expenditure for segment assets | 458 | 2,107 | |
Amounts not allocated to segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | (3,468) | (1,255) | |
Depreciation and amortization | $ (71) | 0 | |
Expenditure for segment assets | $ 0 |
ENTITY-WIDE DISCLOSURE (Narrati
ENTITY-WIDE DISCLOSURE (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sales [Member] | Customer Concentration Risk [Member] | Single Customer [Member] | |||
Product Information [Line Items] | |||
Concentration Risk, Percentage | 12.60% | 8.40% | 12.80% |
ENTITY-WIDE DISCLOSURE (Schedul
ENTITY-WIDE DISCLOSURE (Schedule of Total Revenues by Geographical Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 113,794 | $ 84,556 | $ 77,973 |
Product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 35,241 | 25,460 | 25,870 |
Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 78,553 | 59,096 | 52,103 |
ISRAEL | Product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 3,527 | 3,249 | 5,532 |
ISRAEL | Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 4,170 | 3,913 | 2,213 |
UNITED STATES | Product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 23,937 | 15,616 | 13,716 |
UNITED STATES | Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 58,062 | 40,954 | 34,231 |
Other [Member] | Product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 7,777 | 6,595 | 6,622 |
Other [Member] | Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 16,321 | $ 14,229 | $ 15,659 |
ENTITY-WIDE DISCLOSURE (Sched_2
ENTITY-WIDE DISCLOSURE (Schedule of Long-Lived Assets by Geographical Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 46,571 | $ 51,501 | $ 35,405 |
ISRAEL | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 11,569 | 10,231 | 8,427 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 35,002 | $ 41,270 | $ 26,978 |
SUPPLEMENTAL CONSOLIDATED BAL_3
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Warranty provision [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | $ 243 | $ 243 | $ 250 |
Additions | 79 | 0 | 80 |
Deductions | 0 | (87) | |
Balance, ending | 322 | 243 | 243 |
Provision for current expected credit losses [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning | 527 | 389 | 306 |
Additions | 90 | 200 | 269 |
Deductions | (272) | (62) | (186) |
Balance, ending | $ 345 | $ 527 | $ 389 |