(A) Premium alloys represent all vacuum induction melted (VIM) products.

Selling, general and administrative expenses:

Interest expense and other financing costs:

For the three months ended June 30, 2022 and 2021, our estimated annual effective tax rates applied to ordinary income were 5.4% and 27.5%, respectively. The difference between the federal statutory rate of 21.0% and the projected annual ETR in both years is primarily due to research and

development credits. The 2022 and 2021 estimated annual effective tax rates differ primarily due to a forecast of income tax expense in 2022 compared to an income tax benefit in 2021.

For the three months ended June 30, 2022, the Company recorded a net loss of $1.4 million, or $0.16 per diluted share, compared to a net loss of $2.5 million, or $0.28 per diluted share, for the three months ended June 30, 2021.

(A) Premium alloys represent all vacuum induction melted (VIM) products.

The majority of our products are sold to service centers rather than the ultimate end market customers. The end market information in this Quarterly Report is our estimate based upon our knowledge of our customers and the grade of material sold to them, which they will in-turn sell to the ultimate end market customer.

Selling, general and administrative expenses:

Interest expense and other financing costs:

Historically, we have financed our operations through cash provided by operating activities and borrowings on our credit facilities. At June 30, 2022, we maintained approximately $26.4 million of remaining availability under our revolving credit facility.

Net cash used in (provided by) operating activities:

Net cash used in investing activities:

Net cash provided by financing activities:

The Company was in compliance with all the applicable financial covenants on December 31, 2021 and June 30, 2022.

The Facilities, which expire on March 17, 2026 (the 'Expiration Date"), are collateralized by a first lien on substantially all of the assets of the company and its subsidiaries, except that no real property is collateral under the Facilities other than Company's real property in North Jackson, Ohio.

The Company is required to pay a commitment fee of 0.25% based on the daily unused portion of the Revolving Credit Facility.

Paycheck Protection Program Term Note

The Company applied for forgiveness of the PPP Term Note during the third quarter of 2020. In July 2021, PNC Bank notified the Company that forgiveness of the note was granted by the United States Small Business Administration. Accordingly, the PPP Term Note was forgiven in its entirety, including all related accrued interest. In the third quarter of 2021, we recognized forgiveness of the PPP Term Note and recorded a corresponding gain on extinguishment of debt in the Consolidated Statement of Operations for the period.

In connection with the acquisition of the North Jackson facility, in August 2011, we issued $20.0 million in aggregate principal amount of notes to the sellers of the North Jackson facility as partial consideration of the acquisition, which were retired in 2021.

outstanding at the 2021 maturity date. On March 17, 2021, the Company paid the remaining principal balance and all applicable interest to settle the notes obligation.

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