FreightCar America, Inc. Fair Value Disclosure
Note 4 – Fair Value Measurements
The following table sets forth by level within the fair value hierarchy the Company’s financial assets that were recorded at fair value on a recurring basis and the Company’s non-financial assets that were recorded at fair value on a non-recurring basis.
Recurring Fair Value Measurements |
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As of December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Foreign currency derivative asset |
|
$ |
- |
|
|
$ |
437 |
|
|
$ |
- |
|
|
$ |
437 |
|
Liabilities: |
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Warrant liability |
|
$ |
- |
|
|
$ |
168,529 |
|
|
$ |
- |
|
|
$ |
168,529 |
|
Contingent consideration |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
2,020 |
|
|
$ |
2,020 |
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Recurring Fair Value Measurements |
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As of December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Liabilities: |
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|
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|
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Warrant liability |
|
$ |
- |
|
|
$ |
136,319 |
|
|
$ |
- |
|
|
$ |
136,319 |
|
Foreign currency derivative liability |
|
$ |
- |
|
|
$ |
1,396 |
|
|
$ |
- |
|
|
$ |
1,396 |
|
|
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Non-recurring Fair Value Measurements |
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During the Year Ended December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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|
|
|
|
|
|
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|
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Assets held for sale |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
629 |
|
|
$ |
629 |
|
The fair value of the Company’s Warrant (as defined in Note 12 - Warrants) liability recorded in the Company’s financial statements, determined using the quoted price of the Company’s Common Stock in an active market, exercise price ($0.01/share) and number of shares exercisable, as of December 31, 2025 and 2024, is a Level 2 measurement.
The fair value of the Company’s contingent consideration liability, related to the CRC acquisition and determined using projected financial results and a risk-adjusted discount rate, as of December 31, 2025, is a Level 3 measurement. See Note 7 - Acquisitions.
The fair value of the Company’s foreign currency forward contracts, determined using exit prices obtained from each counterparty, which are based on currency spot and forward rates, as of December 31, 2025 and 2024, in an active market, is a Level 2 measurement. See Note 8 - Derivatives.
The fair value of the Company's fleet of triple hopper aggregate railcars held for sale determined using a market-based appraisal, during the year ended December 31, 2024, is a Level 3 measurement. In April 2025, the Company sold the railcars in their current condition.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 18, 2024 | |
| 2022 | Mar 27, 2023 | |
| 2021 | Mar 22, 2022 | |
| 2020 | Mar 24, 2021 | |
| 2019 | Mar 4, 2020 | |
| 2018 | Mar 4, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.