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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 36,325	$ 71,674
Accounts receivable, less allowance for credit losses of $1,387 and $1,240, respectively	51,390	47,341
Inventory	185,040	133,928
Prepaids and other current assets	18,962	5,037
Total Current Assets	291,717	257,980
Property, plant, and equipment, net	51,495	43,729
Goodwill	411,383	359,099
Other intangibles assets, net	438,461	404,522
Total Assets	1,193,056	1,065,330
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	45,708	34,601
Accrued interest	3,359	6,588
Accrued liabilities	34,853	26,092
Acquisition contingent consideration payable	0	9,200
Current portion of long-term debt	7,875	5,528
Total current liabilities	91,795	82,009
Long-term debt, net of current portion	637,673	649,458
Long-term debt due to related party	0	20,000
Warrant liability	61,293
Earn-out liability	26,596
Deferred taxes	70,045	71,336
Other noncurrent liabilities	1,167	2,146
Total Liabilities	888,569	824,949
Commitments and contingencies (Refer to Note 17 - Commitments and Contingencies)
Shareholders' Equity
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding as of December 31, 2021 and 2020	0	0
Common stock, $0.0001 par value, 550,000,000 shares authorized, 115,807,337 and 67,673,884 shares issued and outstanding as of December 31, 2021 and 2020, respectively	12	7
Additional paid-in capital	329,705	238,883
Accumulated other comprehensive loss	(256)	(674)
Retained earnings (accumulated deficit)	(24,974)	2,165
Total stockholders' equity	304,487	240,381
Total liabilities and stockholders' equity	$ 1,193,056	$ 1,065,330

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable, allowance for doubtful accounts	$ 1,387	$ 1,240
Preference shares, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preference shares, authorized	5,000,000	5,000,000
Preference shares, issued	0	0
Preference shares, outstanding	0	0
Ordinary shares, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Ordinary shares, authorized	550,000,000	550,000,000
Common stock, share issued	115,807,337	67,673,884
Common Stock, Shares, Outstanding	115,807,337	67,673,884

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net sales	$ 692,847	$ 504,179	$ 368,663
Cost of goods sold	406,040	295,935	219,884
Gross profit	286,807	208,244	148,779
Selling, general, and administrative	116,793	70,875	62,371
Research and development costs	28,280	23,483	20,630
Amortization of intangible assets	13,999	11,082	10,456
Acquisition and restructuring costs	23,668	9,743	4,942
Related party acquisition and management fee costs	25,789	6,089	3,662
Other operating expense	755	1,517	644
Total operating expense	209,284	122,789	102,705
Operating income	77,523	85,455	46,074
Change in fair value of warrant liability	32,580
Change in fair value of earn-out liability	8,875
Loss on early extinguishment of debt	(13,650)
Interest expense	39,128	43,772	50,386
Total non-operating expense	94,233	43,772	50,386
(Loss) Income before income taxes	(16,710)	41,683	(4,312)
Income tax expense (benefit)	10,429	8,826	(4,873)
Net (loss) income	(27,139)	32,857	561
Comprehensive (loss) income
Foreign currency translation adjustment	30	16
Pension liability loss	388	(293)	(123)
Total comprehensive (loss) income	$ (26,721)	$ 32,580	$ 438
Weighted average shares of outstanding common stock, basic and diluted	89,959,993	67,673,884	67,673,884
Basic net (loss) income per share	$ (0.30)	$ 0.49	$ 0.01
Diluted net (loss) income per share	$ (0.30)	$ 0.49	$ 0.01

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Previously Reported [Member]	Common Stock	Common Stock Retroactive application of recapitalization	Common Stock Previously Reported [Member]	Additional Paid-in Capital	Additional Paid-in Capital Retroactive application of recapitalization	Additional Paid-in Capital Previously Reported [Member]	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Previously Reported [Member]	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Previously Reported [Member]
Balance at beginning at Dec. 31, 2018	$ 204,806	$ 204,806	$ 7	$ 7	$ 0	$ 236,326	$ (7)	$ 236,333	$ (274)	$ (274)	$ (31,253)	$ (31,253)
Balance at beginning (in Shares) at Dec. 31, 2018			67,673,884	67,673,784	100
Net (loss) income	561										561
Equity compensation	437					437
Pension liability adjustment	(123)								(123)
Capital distributions, net	(267)					(267)
Foreign currency translation
Balance, at ending at Dec. 31, 2019	205,414		$ 7			236,496			(397)		(30,692)
Balance, at ending (in Shares) at Dec. 31, 2019			67,673,884
Net (loss) income	32,857										32,857
Equity compensation	487					487
Pension liability adjustment	(293)								(293)
Foreign currency translation	16								16
Capital contributions, net	1,900					1,900
Balance, at ending at Dec. 31, 2020	240,381		$ 7			238,883			(674)		2,165
Balance, at ending (in Shares) at Dec. 31, 2020			67,673,884
Net (loss) income	(27,139)										(27,139)
Equity compensation	4,963					4,963
Pension liability adjustment	388								388
Foreign currency translation	30								30
Recapitalization transaction, net	85,864		$ 5			85,859
Recapitalization transaction, net (in Shares)			48,133,453
Balance, at ending at Dec. 31, 2021	$ 304,487		$ 12			$ 329,705			$ (256)		$ (24,974)
Balance, at ending (in Shares) at Dec. 31, 2021			115,807,337

Condensed Statement of Cash Flows - USD ($)	12 Months Ended
Condensed Statement of Cash Flows - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
Net (loss) income	$ (27,139,000)	$ 32,857,000	$ 561,000
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation	11,527,000	7,886,000	8,827,000
Amortization of intangible assets	13,999,000	11,082,000	10,456,000
Amortization of deferred loan costs	3,182,000	3,092,000	3,097,000
Increase in warrant liability	32,580,000
Increase in earn-out liability	8,875,000
Equity compensation	4,963,000	487,000	437,000
Change in deferred taxes	(66,000)	6,750,000	(11,489,000)
Loss on early extinguishment of long-term debt	13,650,000
Loss (gain) on disposal of property, plant and equipment	(82,000)	943,000	833,000
Inventory reserves	4,228,000	3,003,000	2,873,000
Allowance for credit losses	147,000	1,597,000	103,000
Changes in operating assets and liabilities:
Accounts receivable	464,000	(11,349,000)	2,110,000
Inventories	(45,073,000)	22,006,000	(7,058,000)
Prepaids and other current assets	(13,408,000)	1,884,000	(378,000)
Accounts payable	8,727,000	8,399,000	181,000
Accrued interest	(3,229,000)	737,000	(2,489,000)
Accrued and other liabilities	8,238,000	(961,000)	1,354,000
Net cash from operating activities	21,583,000	88,413,000	9,418,000
INVESTING ACTIVITIES.
Capital expenditures	(15,233,000)	(9,433,000)	(7,421,000)
Proceeds from the disposal of fixed assets	364,000	698,000
Cash paid for acquisitions, net	(119,220,000)	156,833,000	(5,937,000)
Trademark Acquisition		(50,000)	(1,121,000)
Net cash used in investing activities	(134,089,000)	(165,618,000)	(14,479,000)
FINANCING ACTIVITIES
Net change under revolving credit agreement	25,000,000	(20,500,000)	6,500,000
Proceeds from long-term debt	630,000,000	170,000,000	0
Principal payments on long-term debt	(687,529,000)	(4,146,000)	(3,800,000)
Proceeds from Business Combination and PIPE financing,net of issuance costs paid	132,299,000
Deferred financing fees	(13,413,000)	(4,710,000)
Payment of acquisition contingent consideration	(9,200,000)
Capital contributions			150,000
Capital distributions, net		(100,000)	(417,000)
Net Cash Provided by (Used in) Financing Activities, Total	77,157,000	140,544,000	2,433,000
Net change in cash and cash equivalents	(35,349,000)	63,339,000	(2,628,000)
Cash and cash equivalents:
Beginning of period	71,674,000	8,335,000	10,963,000
End of period	36,325,000	71,674,000	8,335,000
Supplemental disclosures of cash flow information:
Cash paid for interest	38,067,000	39,945,000	49,778,000
Cash paid for income taxes	10,648,000	3,239,000	4,434,000
Non-Cash Investing and Financing Activities:
Assumption of warrant liability	28,713,000
Assumption of earn-out liability	17,722,000
Units exchanged in Detroit Speed transaction		$ 2,000,000

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

DESCRIPTION OF THE BUSINESS, BASIS OF PRESENTATION, AND SUMMARY ACCOUNTING POLICIES

1. Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies

Holley Inc., a Delaware corporation headquartered in Bowling Green, Kentucky (the “Company” or “Holley”), conducts operations through its wholly-owned subsidiaries. These operating subsidiaries are comprised of Holley Performance Products Inc. (“Holley Performance”), Hot Rod Brands, Inc. (“Hot Rod Brands”), Simpson Safety Solutions, Inc., B&M Racing and Performance Products, Inc., and Speedshop.com, Inc. Investment funds managed by Sentinel Capital Partners hold a controlling interest in Holley.

On July 16, 2021, (the “Closing” and such date, the “Closing Date”) the Company consummated the business combination (the “Business Combination”) pursuant to that certain Agreement and Plan of Merger dated March 11, 2021 (the “Merger Agreement”), by and among Empower Ltd., (“Empower”), Empower Merger Sub I Inc. (“Merger Sub I”), Empower Merger Sub II LLC (“Merger Sub II”), and Holley Intermediate Holdings, Inc. (“Holley Intermediate”). On the Closing Date, Empower changed its name to Holley Inc. See Note 2, “Business Combination and Acquisitions,” for more information.

Holley Intermediate, the predecessor to Holley, was incorporated on October 25, 2018 to effect the merger of Driven Performance Brands, Inc. (“Driven”) and the purchase of High Performance Industries, Inc. (“HPI”). The Company designs, manufactures and distributes performance automotive products to customers primarily in the United States, Canada and Europe. The Company is a leading manufacturer of a diversified line of performance automotive products, including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners and automotive performance plumbing products that are produced through its two major subsidiaries, Holley Performance and Hot Rod Brands. The Company is also a leading manufacturer of exhaust products as well as shifters, converters, transmission kits, transmissions, tuners and automotive software. The Company’s products are designed to enhance street, off-road, recreational and competitive vehicle performance through increased horsepower, torque and drivability. The Company has locations in North America, Canada, Italy and China.

Emerging Growth Company Status

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company is an emerging growth company, and, as such, has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards.

Risks and Uncertainties

COVID-19 has adversely impacted global supply chain and general economic conditions. The Company has experienced disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain Company products in distribution channels. The full extent of the impact of the COVID-19 pandemic on the Company's business and operational and financial performance and condition is currently uncertain and will depend on many factors outside the Company's control, including but not limited to the timing, extent, duration and effects of the virus and any of its mutations, the utilization and effectiveness of treatments and vaccines, the imposition of effective public safety and other protective measures, the further impact of COVID-19 on the global economy and demand for the Company's products and services. Should the COVID-19 pandemic, including variants such as Delta and Omicron, not improve or worsen, or if the Company's attempt to mitigate its impact on its supply chain, operations and costs is not successful, the Company's business, results of operations, financial condition and prospects may be adversely affected.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or “GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These estimates require the use of judgment as future events and the effect of these events cannot be predicted with certainty. The estimates will change as new events occur, as more experience is acquired and as more information is obtained. The Company evaluates and updates assumptions and estimates on an ongoing basis and may consult outside experts to assist as considered necessary.

Cash and Cash Equivalents

Cash and cash equivalents include cash and deposits with financial institutions with original maturities less than 90 days. The Federal Deposit Insurance Corporation insures financial institution deposits up to $250. The Company maintains deposits exceeding $250 in certain accounts at financial institutions. At December 31, 2021 and 2020, the Company had cash in foreign bank accounts of $5,765 and $4,607, respectively.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable represent amounts due from customers in the ordinary course of business. The receivables are stated at the amount management expects to collect. The Company is subject to risk of loss from uncollectible receivables in excess of its allowance. The Company maintains an allowance for credit losses for estimated losses from customers’ inability to make required payments. In order to estimate the appropriate level of this allowance, the Company analyzes historical bad debts, customer concentrations, current customer credit worthiness, current economic trends and changes in customer payment patterns. Accounts are written off when management determines the account is uncollectable. Interest is not charged on past due accounts.

Inventory Valuation

The Company's inventories are stated at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances.

Segments

The Company's operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment.

Goodwill

Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis or whenever events or changes in circumstances indicate the carrying value of goodwill may have been impaired, the Company may perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that the fair value of the reporting unit is less than its carrying amount or elects not to perform a qualitative assessment, it will perform a quantitative analysis; otherwise, no further evaluation is necessary. For the quantitative impairment assessment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Impairments, if any, are charged directly to earnings. In 2021, the Company performed a qualitative assessment and did not identify any indicators of impairment. No impairment charges have been incurred during 2021, 2020, or 2019.

Intangible Assets Other Than Goodwill

Tradenames acquired in certain business combinations were determined to have indefinite useful lives and are not amortized, but instead are tested for impairment on an annual basis and when facts and circumstances indicate that the carrying values of the assets may be impaired. If such review indicates an asset’s carrying value may not be recoverable, an impairment loss is recognized for the excess of the carrying value over the fair value of the asset.

As part of separate business acquisitions, the Company’s customer relationships, technology and certain tradenames were identified as definite-lived intangible assets. The customer relationship intangible assets are being amortized over a ten to twenty-five year life based on the attrition rate of customers. The technology intangible assets are being amortized over a five to fourteen year life based on the lifecycle of previous technology. The tradenames are being amortized over a fifteen to twenty year life based on the estimated life of the tradename.

Property, Plant and Equipment

Property, plant and equipment acquired in various acquisitions have been recorded at fair value. All other property, plant and equipment is recorded at cost. Depreciation and amortization are provided for using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for new property, plant and equipment additions are seven years to twenty-five years for buildings and improvements and three to ten years for machinery and equipment. Maintenance, repairs, and betterments which do not enhance the value of or increase the life of the assets are expensed as incurred.

Debt Issuance Costs

Debt issuance costs are being amortized using the effective interest method over the term of the related debt. As of December 31, 2021 and 2020 unamortized debt issuance costs were $13,264 and $16,684, respectively, and are included as a reduction of debt. In connection with the Company's refinancing of its existing credit facility in 2021, a loss on the early extinguishment of debt of $13,650 was recognized for the write-off of unamortized debt issuance costs. Additionally, the Company paid $13,413 in original issue discount and issuance costs related to the new credit facility. Amortization expense for debt issuance costs was $3,182, $3,092, and $3,097 in 2021, 2020 and 2019, respectively, which is included in interest expense in the accompanying consolidated statements of comprehensive income (loss).

Self-Insurance

The Company is self-insured for employee medical and prescription drug benefits up to certain stop loss coverage amounts. The Company accrues an estimate for unpaid claims, as well as incurred but not reported claims, based upon the Company’s claim experience and expectations of future claim activity. The resulting liability and expense are reflected as a component of accrued expenses, cost of sales and selling, general and administrative expenses in the accompanying consolidated balance sheets and consolidated statements of comprehensive income (loss), respectively.

Revenue Recognition

The Company recognizes revenue with customers when control of the promised goods transfers to the customer. This generally occurs when the product is shipped to the customer. Revenue is recorded at the amount of consideration the Company expects to be entitled to in exchange for the delivered goods, which includes an estimate of variable consideration, expected returns, or refunds when applicable. The Company estimates variable consideration, such as sales incentives, by using the most likely amount approach, which considers the single most likely amount from a range of possible consideration amounts. Estimates of variable consideration result in an adjustment to the transaction price such that it is probable that a significant reversal of cumulative revenue would not occur in the future. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. Revenue is recorded net of sales tax. Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in selling, general and administrative costs.

For more information about the Company’s revenue from contracts with customers, refer to Note 9 Revenue.

Customer Sales Incentives

Sales incentives provided take the form of either sales discounts or rebates and are treated as a reduction of net sales. The Company also maintains a cooperative advertising program with its customers and provides sales incentives to the extent of the estimated value of advertising provided by the customer on behalf of the Company. The costs incurred under the cooperative advertising program are included as a reduction of net sales.

Sales Returns

Estimated sales returns and allowances are recorded as a charge against gross sales in the period in which the related sales are recognized, net of returns to stock. The Company allows customers to return products when certain Company-established criteria are met. The Company estimates sales returns based primarily upon actual historical returns, planned product discontinuances, and promotional sales. Returned products, which are recorded as inventories, are valued at the lower of cost or net realizable value. The physical condition and marketability of the returned products are the major factors considered in estimating realizable value.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes income tax positions only if those positions are “more likely than not” of being sustained upon examination by taxing authorities. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in its consolidated income statements. The Company has no amounts accrued for such interest or penalties as of December 31, 2021 and 2020. The Company files income tax returns in the U.S. federal jurisdiction and various foreign and state jurisdictions.

As of December 31, 2021 and 2020, the Company did not have any unrecognized tax benefits. The statute of limitations remains open for U.S. federal income tax examinations for years ended December 31, 2018 through December 31, 2020. U.S. state jurisdictions have statues of limitations generally ranging from three to eight years. The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months.

Impairment or Disposal of Long-Lived Assets

The Company accounts for long-lived assets, including intangible assets subject to amortization, in accordance with the provisions that require long-lived assets, such as property and equipment, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Advertising

Advertising production costs are expensed the first time the advertising takes place. Total advertising expenses were $6,299, $4,379, and $3,921 for the years ended December 31, 2021, 2020, and 2019, respectively. Advertising costs are classified as a component of selling, general and administrative costs in the accompanying consolidated statements of comprehensive income (loss).

Research and Development Costs

Research, development, pre-production and start-up costs related to both present and future products are expensed as incurred. Such costs amount to $28,280, $23,483, and $20,630 for the years ended December 31, 2021, 2020, and 2019, respectively.

Other Comprehensive Income (Loss)

Comprehensive loss encompasses all changes in stockholder’s equity and includes net income, change in the foreign currency translation adjustment and minimum pension liability. The Company’s accumulated other comprehensive loss shown on the consolidated balance sheets as of December 31, 2021 and 2020 consists of minimum pension loss of $302 and $690, respectively, and foreign currency translation adjustments of $(46) and $(16), respectively.

Foreign Currencies

The functional currency of the Company’s Italian subsidiary is the Euro. Assets and liabilities of foreign operations are translated using period end exchange rates. Revenue and expenses are translated using average exchange rates during each period reported. Translation gains are reported in accumulated other comprehensive loss as a component of shareholders equity and were $30 and $16 as of December 31, 2021 and 2020, respectively. The Company recognizes foreign currency transaction gains (losses) on certain assets and liabilities. These transaction (gains) losses are reported in other expense in the consolidated statements of comprehensive income (loss) and were $44, $(284), and $(27) for the years ended December 31, 2021, 2020 and 2019, respectively.

Earnings per Share

Earnings per share is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method.

Warrants

The Company reviews the terms of warrants to purchase its common stock to determine whether warrants should be classified as liabilities or stockholders' equity in its consolidated balance sheet. In order for a warrant to be classified in stockholders' equity, the warrant must be (a) indexed to the Company's equity and (b) meet the conditions for equity classification in Accounting Standards Codification ("ASC") Subtopic 815-40, Derivatives and Hedging-Contracts in an Entity's Own Equity. If a warrant does not meet the conditions for equity classification, it is carried in the consolidated balance sheet as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in the consolidated statements of comprehensive income as a non-operating expense. If a warrant meets both conditions for equity classification, the warrant is initially recorded in additional paid-in capital on the consolidated balance sheet, and the amount initially recorded is not subsequently re-measured at fair value.

Equity-Based Compensation

The Company accounts for equity-based awards granted to employees and nonemployees under the fair value method prescribed by ASC Subtopic 718-10, Stock Compensation. Equity-based compensation cost is measured based on the estimated grant date fair value of the award and is recognized as expense over the requisite service period (generally the vesting period). The Company accounts for forfeitures as they occur.

The fair value of stock options is estimated using the Black Scholes option-pricing model. Restricted stock units are valued at the stock price on the grant date. The fair value of profit interest units ("PIUs") granted by Holley Parent Holdings, LLC (the “Holley Stockholder” or “Parent”) is estimated based on the Company’s estimated equity value for each unit class at the time of granting using the Black-Scholes option-pricing model, discounted to reflect market considerations for illiquidity.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimizes the use of unobservable inputs to the extent possible. The inputs used to measure fair value are prioritized based on a three-level hierarchy, which are defined as follows:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. Derivative liabilities are classified on the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Recent Accounting Pronouncements

Accounting Standards Recently Adopted

The FASB issued 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 will provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU is effective for annual reporting periods beginning after December 15, 2022. The Company early adopted the standard in 2020. There was no material impact of adopting this guidance on its financial statements.

Accounting Standards Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize right-of-use assets, representing their right to use the underlying asset for the lease term, and lease liabilities on the balance sheet for all leases with terms greater than 12 months. The Company has substantially completed its preparation for the adoption of this new accounting standard. This included assessing the completeness of our lease arrangements, evaluating practical expedients and accounting policy elections, and executing changes to our business process. ASU 2016-02 is effective for the Company beginning January 1, 2022. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The Company expects to elect certain practical expedients, including the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and is evaluating the other practical expedients available under the guidance. The Company also plans to elect the optional transition method that will give companies the option to use the effective date as the date of initial application on transition, and as a result, we will not adjust our comparative period financial information or make the new required lease disclosures for periods before the effective date. The Company anticipates the adoption of this new standard will result in an increase of approximately 3 percent of total assets and approximately 4 percent of total liabilities on our consolidated balance sheet. We do not expect the new standard to have a material impact on the Company's consolidated statement of income or consolidated statement of cash flows. While we are substantially complete with the process of quantifying the impacts that will result from applying the new guidance, our assessment will be finalized during the first quarter of 2022.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirements Benefits – Defined Benefit Plans – General (Subtopic 715-20). The ASU is effective for the Company for annual reporting periods beginning after December 15, 2021 with early adoption permitted. This guidance should be applied on a retrospective basis to all periods presented. The ASU will update disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. The Company is in the process of terminating its defined benefit pension plan and does not expect this guidance to have a significant impact on its financial statements or related disclosures.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) which is intended to simplify various aspects related to accounting for income taxes. This ASU is effective for the Company for annual reporting periods beginning after December 15, 2021 and interim periods therein, with early adoption permitted. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company does not expect the adoption of this ASU to have a material impact on its financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. As of December 31, 2021, the Company did not adopt any expedients or exceptions under ASU 2020-04. The Company will continue to evaluate the impact of ASU 2020-04 and whether it will apply the optional expedients and exceptions.

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Subtopic 470-20). The ASU is effective for the Company for annual reporting periods beginning after December 15, 2023 and interim periods therein, with early adoption permitted as of the beginning of the Company's annual fiscal year. The ASU includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity and simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models in Subtopic 470-20. Additionally, the ASU requires entities to use the “if-converted” method when calculating diluted earnings per share for convertible instruments. When adopted, the ASU will result in changes in the fair value of its public warrants being recognized through equity rather than through the statement of income. The Company plans to early adopt the standard as of January 1, 2022.

BUSINESS COMBINATION AND ACQUISITIONS

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

BUSINESS COMBINATION AND ACQUISITIONS

2. BUSINESS COMBINATION AND ACQUISITIONS

BUSINESS COMBINATION

On July 16, 2021, Holley consummated the Business Combination pursuant to the terms of the Merger Agreement, whereby (i) Merger Sub I, a direct wholly owned subsidiary of Empower, merged with and into Holley Intermediate, with Holley Intermediate surviving such merger as a wholly owned subsidiary of Holley (“Merger I”) and (ii) Merger Sub II, a direct wholly owned subsidiary of Empower, merged with and into Holley Intermediate, with Merger Sub II surviving such merger as a wholly owned subsidiary of Holley (“Merger II”).

Pursuant to the Merger Agreement, at the Closing, all outstanding shares of Holley Intermediate common stock as of immediately prior to the effective time of Merger I were cancelled and the Holley Stockholder, the sole stockholder of Holley Intermediate, received $264,718 in cash and 67,673,884 shares of common stock (at a deemed value of $10.00 per share). The Company’s common stock is listed on the NYSE under the symbol “HLLY.”

In connection with the Business Combination, a number of subscribers purchased from the Company an aggregate of 24,000,000 shares of common stock (the “PIPE”), for a purchase price of $10.00 per share, or $240,000 in the aggregate. Per the Merger Agreement, $100,000 of the PIPE proceeds were used to partially pay off Holley’s debt.

Pursuant to the Amended and Restated Forward Purchase Agreement (“A&R FPA”), at the Closing, 5,000,000 shares of the Company’s common stock and 1,666,667 warrants were issued to certain investors for an aggregate purchase price of $50,000. Pursuant to the A&R FPA, each warrant entitles the holder to purchase one share of the Company’s common stock at a price of $11.50 per share (the ”Public Warrants”), subject to certain conditions.

The Company also assumed 8,333,310 Public Warrants and 4,666,667 private placement warrants (the “Private Warrants”, and together with the Public Warrants, the “Warrants”) upon the Business Combination, all of which were issued in connection with Empower’s initial public offering. Each Warrant represents the right to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to certain conditions. The Warrants are exercisable commencing on October 9, 2021 (the one-year anniversary of Empower’s initial public offering) and expire on July 16, 2026 (five years after the Closing Date). The Public Warrants are listed on the NYSE under the symbol “HLLY WS.”

Additionally, Empower Sponsor Holdings LLC (the "Sponsor") may be entitled to receive up to 2,187,500 shares of the Company’s common stock vesting in two equal tranches upon achieving certain market share price milestones as outlined in the Merger Agreement during the earn-out period (“the “Earn-Out Shares”). The Earn-Out Shares will be forfeited if the applicable conditions are not satisfied before July 16, 2028 (seven years after the Closing Date). The earnout is classified as a liability in the consolidated balance sheet and is re-measured at fair value with changes in the post-Business Combination fair value recognized in the Company’s consolidated statement of comprehensive income (loss) as non-operating expense.

The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. This determination was primarily based on the Holley Stockholder having a relative majority of the voting power of the Company, the operations of Holley prior to the acquisition comprising the only ongoing operations of the Company, and senior management of Holley comprising the majority of the senior management of the Company. Under this method of accounting, Empower was treated as the acquired company for financial reporting. Accordingly, the Business Combination was accounted for as the equivalent of Holley issuing stock for the net assets of Empower, accompanied by a recapitalization. The net assets of Empower are stated at historical cost, with no goodwill or other intangible assets recorded. Reported amounts from operations included herein prior to the Business Combination are those of Holley Intermediate. The shares and corresponding capital amounts and earnings per share, prior to the Business Combination, have been retroactively restated based on shares received by the Holley Stockholder.

The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows for the year ended December 31, 2021:


	Recapitalization
Cash - Empower's trust and cash (net of redemptions of $99,353 and transaction costs of $44,314)	$	107,017
Cash - Forward Purchase Agreement		50,000
Cash - PIPE Financing		240,000
Net cash provided by Business Combination and PIPE Financing		397,017
Less: cash consideration paid to Holley Stockholder		(264,718	)
Net contributions from Business Combination and PIPE Financing	$	132,299

ACQUISITIONS

During the three years ended December 31, 2021, the Company completed 12 acquisitions. These acquisitions are expected to enhance the Company's portfolio of products and services in the automotive aftermarket and automotive safety solutions market.

The company accounts for acquisitions using the acquisition method, and accordingly, the purchase price has been allocated based upon the fair value of the assets acquired and liabilities assumed. The valuation of the assets acquired and liabilities assumed is subject to revision. If additional information becomes available, the Company may further revise the purchase price allocation as soon as practical, but no later than one year from the acquisition date; however, material changes are not expected. Goodwill generated by the acquisitions is primarily attributable to the strong market position of the entities acquired.

Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions were for 100 percent of the acquired business and are reported in the Consolidated Statements of Cash Flows, net of acquired cash and cash equivalents. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are typically expensed in the periods in which the costs are incurred and are recorded in acquisition and restructuring costs. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.

In 2021, the Company acquired substantially all the assets of Finspeed, LLC (“Finspeed”), Classic Instruments LLC (“Classic Instruments”), ADS Precision Machining, Inc., doing business as Arizona Desert Shocks (“ADS”), Rocket Performance Machine, Inc., doing business as Rocket Racing Wheels (“Rocket”), and Speartech Fuel Injections Systems, Inc. (“Speartech”). These five acquisitions were individually immaterial business combinations that are material in the aggregate. Cash paid for the five immaterial acquisitions, net of cash acquired, was $19,685, and was funded with borrowings from the Company's credit facility and cash on hand. The acquisitions resulted in both amortizable and non-amortizable intangibles and goodwill totaling $13,145. The goodwill and intangibles generated as a result of these acquisitions are deductible for income tax purposes. Pro forma results of operations and the results of operations since the acquisition dates for these immaterial acquisitions have not been separately disclosed because the effects were not significant compared to the consolidated financial statements, individually or in the aggregate. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Cash	$	122
Accounts receivable		618
Inventory		3,975
Property, plant and equipment		2,274
Other assets		23
Tradenames		2,608
Customer relationships		2,450
Goodwill		8,087
Accounts payable		(343	)
Accrued liabilities		(129	)
	$	19,685

The fair value of the acquired customer relationship intangible assets were estimated using the excess earnings approach. The customer relationship intangible assets are being amortized based on the attrition rate of customers which have an estimated weighted average life of 18 years. The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

The remaining seven acquisitions completed during the three years ended December 31, 2021 are described below.

Baer, Inc.

On December 23, 2021, the Company acquired substantially all the assets and liabilities of Baer, Inc., doing business as Baer Brakes ("Baer"). Consideration for the assets acquired was cash payments of $22,170. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill totaling $19,068. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded with borrowings from the Company's credit facility and cash on hand. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Accounts receivable	$	627
Inventory		1,813
Property, plant and equipment		695
Other assets		76
Tradenames		4,630
Customer relationships		6,075
Goodwill		8,363
Accounts payable		(81	)
Accrued liabilities		(28	)
	$	22,170

The fair value of the acquired customer relationship intangible asset was estimated using the excess earnings approach. The customer relationship intangible asset is being amortized based on the attrition rate of customers which was determined to be 20 years. The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

The contractual value of the accounts receivable acquired was $800.

The Company incurred transaction costs in the amount of $222, which are reflected in operating expenses for the year ended December 31, 2021.

Brothers Mail Order Industries, Inc.

On December 16, 2021, the Company acquired substantially all the assets and liabilities of Brothers Mail Order Industries, Inc., doing business as Brothers Trucks ("Brothers"). Consideration for the assets acquired was cash payments of $25,836. The acquisition resulted in non-amortizable intangibles and goodwill totaling $24,536. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded with borrowings from the Company's credit facility and cash on hand. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Accounts receivable	$	22
Inventory		1,682
Property, plant and equipment		20
Other assets		13
Tradenames		4,975
Goodwill		19,561
Accounts payable		(34	)
Accrued liabilities		(403	)
	$	25,836

The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

The contractual value of the accounts receivable acquired was $22.

The Company incurred transaction costs in the amount of $191, which are reflected in operating expenses for the year ended December 31, 2021.

Advance Engine Management Inc.

On April 14, 2021, the Company acquired substantially all the assets and liabilities of Advance Engine Management Inc. doing business as AEM Performance Electronics (“AEM”). Consideration for the assets acquired was cash payments of $51,243. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill, totaling $44,486. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded from cash on hand.

The determination of the final purchase price allocation to specific assets acquired and liabilities assumed was adjusted to reflect the final fair value estimate of acquired assets and liabilities, as noted below. The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


	April 14, 2021 (as initially reported)			Measurement Period Adjustments			April 14, 2021 (as adjusted)
Accounts receivable	$	3,454		$	(61	)	$	3,393
Inventory		3,892			—			3,892
Property, plant and equipment		1,342			—			1,342
Other assets		493			(91	)		402
Tradenames		10,760			—			10,760
Customer relationships		14,640			—			14,640
Patents		1,970			—			1,970
Technology intangibles		110			—			110
Goodwill		17,426			(420	)		17,006
Accounts payable		(2,032	)		110			(1,922	)
Accrued liabilities		(489	)		139			(350	)
	$	51,566		$	(323	)	$	51,243

The fair value of the acquired customer relationship intangible asset was estimated using the excess earnings approach. The customer relationship intangible asset is being amortized based on the attrition rate of customers which was determined to be 20 years. The fair value of the acquired tradenames and patents intangible assets were estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life. The patents are being amortized over 13 years based on the weighted average remaining life of the patent portfolio.

The contractual value of the accounts receivable acquired was $3,454.

The Company’s results for the year ended December 31, 2021 include $16,593 of net sales and $2,664 of net income from AEM since the date of acquisition. The Company incurred transaction costs in the amount of $2,264, which are reflected in operating expenses for the year ended December 31, 2021.

Drake Automotive Group LLC

On November 11, 2020, the Company acquired Drake Automotive Group LLC (“Drake”). The purchase price was $49,104. The Company acquired 100% of the outstanding member units of Drake. Consideration for the assets acquired consisted of cash payments of $47,104 plus an estimated earn-out payment of $2,000 based on expected 2020 performance. The earn-out payment of $2,000 was paid in March 2021. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill, totaling $32,441. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded from the proceeds of debt and cash on hand.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Cash	$	205
Accounts receivable		3,947
Inventory		14,198
Property, plant and equipment		1,296
Other assets		189
Tradenames		7,715
Customer relationships		17,175
Goodwill		7,551
Accounts payable		(2,524	)
Accrued liabilities		(648	)
	$	49,104

The contractual value of the accounts receivable acquired was $4,155.

Simpson Performance Products, Inc.

On November 16, 2020, the Company acquired Simpson Performance Products, Inc. (“Simpson”). The purchase price was $117,409. The Company acquired 100% of the outstanding common stock of Simpson. Consideration for the assets acquired consisted of cash payments of $110,209 and an earnout initially valued at $7,200. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill, totaling $107,618. The goodwill and intangibles generated as a result of this acquisition are not deductible for income tax purposes. The purchase price was funded from the proceeds of debt and cash on hand.

The purchase agreement included a potential contingent payment based on the performance for the twelve months ended October 3, 2021. The seller could earn up to an additional $25,000. The fair value of this contingent payment was initially determined to be $7,200 using the “Bull Call” option strategy utilizing the option values from the Black-Scholes Option Pricing Model. Based on actual performance and updated projections of Simpson’s performance for the earn-out period, the fair value of the contingent payment was determined to be $24,373, resulting in an adjustment of $17,173, which is recognized in acquisition and restructuring costs in the consolidated statement of comprehensive income for the year ended December 31, 2021.

The determination of the final purchase price allocation to specific assets acquired and liabilities assumed was adjusted to reflect the final fair value estimate of finished goods inventory, as noted below. The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


	November 16, 2020 (as initially reported)			Measurement Period Adjustments			November 16, 2020 (as adjusted)
Cash	$	7,715		$	—		$	7,715
Accounts receivable		3,894			—			3,894
Inventory		19,265			(770	)		18,495
Property, plant and equipment		5,952			—			5,952
Other assets		1,613			—			1,613
Tradenames		23,980			—			23,980
Customer relationships		28,770			—			28,770
Patents		2,720			—			2,720
Goodwill		51,305			(893	)		50,412
Accounts payable		(2,483	)		—			(2,483	)
Accrued liabilities		(7,787	)		361			(7,426	)
Deferred tax liability		(12,993	)		1,375			(11,618	)
Debt		(4,615	)		—			(4,615	)
	$	117,336		$	73		$	117,409

The fair value of the acquired customer relationship intangible asset was estimated using the excess earnings approach. The customer relationship intangible asset is being amortized based on the attrition rate of customers which was determined to be 20 years. The fair value of the acquired tradenames and patents intangible assets were estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life. The patents are being amortized over 10 years based on the weighted average remaining life of the patent portfolio.

The contractual value of the accounts receivable acquired was $3,894.

Detroit Speed, Inc.

On December 18, 2020, the Company acquired Detroit Speed, Inc. (“Detroit Speed”). The purchase price was $11,297. The Company acquired substantially all of the assets and liabilities of Detroit Speed. Consideration for the assets acquired includes cash payments of $9,297 and Class A Units of Parent of $2,000. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill, totaling $4,323. The goodwill and intangibles generated as a result of this acquisition are partially deductible for income tax purposes. The purchase price was funded from cash on hand and distribution of Class A Units of Parent.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


	November 16, 2020 (as initially reported)			Measurement Period Adjustments			November 16, 2020 (as adjusted)
Cash	$	1,784		$	—		$	1,784
Accounts receivable		418			—			418
Inventory		3,478			(324	)		3,154
Property, plant and equipment		3,040			—			3,040
Other assets		215			—			215
Tradenames		1,127			—			1,127
Customer relationships		560			—			560
Goodwill		2,636			159			2,795
Accounts payable		(668	)		—			(668	)
Accrued liabilities		(1,019	)		500			(519	)
Deferred tax liability		(274	)		—			(274	)
	$	11,297		$	335		$	11,632

The fair value of the acquired customer relationship intangible asset was estimated using the excess earnings approach. The customer relationship intangible asset is being amortized based on the attrition rate of customers which was determined to be 10 years. The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

The contractual value of the accounts receivable acquired was $418.

Range Technologies Inc.

On October 18, 2019, the Company acquired Range Technologies Inc. (“Range”). The Company acquired 100% of the issued and outstanding common stock of Range. The purchase price was cash consideration of $7,239. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill, totaling $8,277. The goodwill and intangibles generated as a result of this acquisition are not deductible for income tax purposes. The purchase price was cash funded.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Cash	$	218
Accounts receivable		94
Inventory		231
Property, plant and equipment		7
Other assets		60
Tradename		510
Technology intangible		5,695
Goodwill		2,072
Accounts payable		(64	)
Accrued liabilities		(4	)
Deferred tax liability		(1,580	)
	$	7,239

The fair value of the acquired technology intangible asset was estimated using the relief from royalty method, a form of the income approach. The technology intangible asset is being amortized over the estimated lifecycle of the technology which was determined to be 14 years. The fair value of the acquired tradename intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradename was determined to have an indefinite life.

The contractual value of the accounts receivable acquired was $94.

The following table provides the unaudited consolidated pro forma results for the periods presented as if Baer, Brothers, AEM, Drake, Simpson, and Detroit Speed had been acquired as of January 1, 2020.


	For the years ended
	December 31, 2021			December 31, 2020
Pro forma net sales	$	727,369		$	631,560
Pro forma net income (loss)		(8,464	)		31,435

The following table presents the supplemental and unaudited pro forma results as if Range, Drake, Simpson and Detroit Speed had been acquired as of January 1, 2019:


	For the years ended
	December 31, 2020		December 31, 2019
Pro forma net sales	$	584,270	$	461,418
Pro forma net income (loss)		37,304		(8,799	)

The pro forma results include the effects of the amortization of purchased intangible assets and acquired inventory step-up. The pro forma results are based upon unaudited financial information of the acquired entity and are presented for informational purposes only and are not necessarily indicative of the results of future operations or the results that would have occurred had the acquisitions taken place in the periods noted.

INVENTORY

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventory

3. INVENTORY

Inventories of the Company consisted of the following:


	December 31,
	2021		2020
Raw materials	$	54,818	$	44,474
Work-in-process		21,728		12,946
Finished goods		108,494		76,508
	$	185,040	$	133,928

PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure

4. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment of the Company consisted of the following:


	December 31,
	2021		2020
Land	$	1,330	$	1,330
Buildings and improvements		10,623		8,594
Machinery and equipment		56,824		44,690
Construction in process		12,859		8,088
Total property, plant and equipment		81,636		62,702
Less: accumulated depreciation		30,141		18,973
Property, plant and equipment, net	$	51,495	$	43,729

The Company’s long-lived assets by geographic locations are as follows:


	December 31,
	2021		2020
United States	$	49,547	$	42,264
International		1,948		1,465
Total property, plant and equipment, net	$	51,495	$	43,729

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The following presents changes to goodwill for the periods indicated:


Balance at December 31, 2019	$	297,607
Drake acquisition		7,551
Simpson acquisition		51,305
Detroit Speed acquisition		2,636
Balance at December 31, 2020		359,099
AEM acquisition		17,426
Classic Instruments acquisition		4,912
Speartech acquisition		2,705
ADS acquisition		1,260
Baer acquisition		8,363
Brothers acquisition		19,561
Rocket acquisition		2,141
Measurement period adjustments*		(4,084	)
Balance at December 31, 2021	$	411,383

* See Note 2, "Business Combination and Acquisitions - Simpson Performance Products, Inc. and Advance Engine Management Inc."

Goodwill represents the premium paid over the fair value of the net tangible and identifiable intangible assets acquired in the Company's business combinations. The measurement period for the valuation of assets acquired and liabilities assumed ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, not to exceed 12 months. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

Intangible assets consisted of the following:


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	268,438	$	(32,662	)	$	235,776
Tradenames		13,775		(4,119	)		9,656
Technology		26,675		(9,080	)		17,595
Total finite-lived intangible assets	$	308,888	$	(45,861	)	$	263,027

Indefinite-lived intangible assets:
Tradenames	$	175,434		—		$	175,434


	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	245,274	$	(21,819	)	$	223,455
Tradenames		13,775		(3,369	)		10,406
Technology		24,595		(6,674	)		17,921
Total finite-lived intangible assets	$	283,644	$	(31,862	)	$	251,782

Indefinite-lived intangible assets:
Tradenames	$	152,740		—		$	152,740

The following outlines the estimated future amortization expense related to intangible assets held as of December 31, 2021:


2022	$	14,644
2023		14,481
2024		13,668
2025		13,638
2026		13,532
Thereafter		193,064
Total	$	263,027

DEBT

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

6. DEBT

Debt of the Company consisted of the following:


	December 31,
	2021			2020
First lien term loan due November 17, 2028	$	630,000		$	—
Revolver		25,000			—
First lien note		—			541,969
Second lien note		—			145,000
Other		3,812			4,701
Less unamortized debt issuance costs		(13,264	)		(16,684	)
		645,548			674,986
Less current portion of long-term debt		(7,875	)		(5,528	)
	$	637,673		$	669,458

On November 18, 2021, the Company entered into a new credit facility with a syndicate of lenders and Wells Fargo Bank, N.A., as administrative agent for the lenders, letter of credit issuer and swing line lender (the "Credit Agreement"). The financing consists of a seven-year $600,000 first lien term loan, a five-year $125,000 revolving credit facility, and a $100,000 delayed draw term loan. As of December 31, 2021, the Company had drawn $30,000 under the delayed draw term loan.

The delayed draw term loan is available for six months and is subject to the satisfaction of certain conditions precedent, including, but not limited to, the consent of the lenders providing the delayed draw term loan. In addition, the credit facility includes a letter of credit facility in the amount of $10,000, pursuant to which letters of credit may be issued as long as revolving loans may be advanced and subject to availability under the revolving credit facility. The Company had $1,200 in outstanding letters of credit at December 31, 2021.

Proceeds from the new credit facility were used to repay in full the obligations outstanding under both the Company’s existing first lien and second lien notes and to pay $13,413 in original issue discount and issuance costs related to the refinancing. The proceeds of any delayed draw loans made after closing may be used by the Company to finance acquisitions.

The first lien term loan is to be repaid in quarterly payments of $1,500 from December 31, 2021 to September 30, 2028 with the balance due upon maturity on November 17, 2028. Beginning with the fiscal year ending on December 31, 2022, at the end of each fiscal year, the Company is required to make a payment based on its available free cash flow (as defined in the Credit Agreement). Any such payments offset future mandatory quarterly payments.

Amounts outstanding under the new credit facility will accrue interest at a rate equal to either LIBOR or base rate, at the Company's election, plus a specified margin. In the case of revolving credit loans and letter of credit fees, the specified margin is based on the Company's Total Leverage Ratio, as defined in the Credit Agreement. Commitment fees payable under the revolving credit facility are based on the Company's Total Leverage Ratio. At December 31, 2021, the weighted average interest rate on the Company's borrowings under the credit facility was 4.5%.

Obligations under the Credit Agreement are secured by substantially all of the Company’s assets. The Credit Agreement includes representations and warranties, and affirmative and negative covenants customary for financings of this type, including, but not limited to, limitations on restricted payments, additional borrowings, additional investments, and asset sales. It also requires that Holley maintain on the last day of each quarter, a Total Leverage Ratio not to exceed a maximum amount. At December 31, 2021, the Company was in compliance with all financial covenants.

Some of the lenders and their affiliates have various relationships with the Company in the ordinary course of business involving the provision of financial services, including cash management, commercial banking, investment banking or other services.

In 2021, as a result of prepayments of the Company’s existing first lien and second lien notes, losses of $13,650 were recognized on the early extinguishment of debt due to the write-off of unamortized debt issuance costs.

The first lien note totaled $600,000, comprised of two parts: a revolving component with maximum borrowings of $50,000, and a $550,000 term loan. The proceeds of the new first lien term loan were used to repay the $537,820 outstanding principal balance of the existing first lien note, which resulted in a loss of $11,638 from the write-off of unamortized debt issuance costs. The interest rate for the first lien note LIBOR rate loans was 5.2% at December 31, 2020. There were no prime rate loans as of December 31, 2020. The Company had $1,200 in outstanding letters of credit under the first lien note at December 31, 2020.

The second lien note totaled $145,000. On July 16, 2021, the Company used a portion of the net proceeds from the Business Combination to repay $100,000 of the outstanding principal of the second lien note, which resulted in a loss of $1,425 from the write-off of unamortized debt issuance costs. The remaining $45,000 outstanding balance was repaid with proceeds from the new first lien term loan, which resulted in a loss of $587 from the write-off of unamortized debt issuance costs. The interest rate for the second lien note LIBOR rate loan was 8.7% at December 31, 2020. Sentinel Capital Partners Junior Fund I, a related party, held $20,000 of the second lien note at December 31, 2020.

Future maturities of long-term debt and amortization of debt issuance costs as of December 31, 2021 are as follows:


	Debt		Debt Issuance Costs
2022	$	8,774	$	1,769
2023		7,207		1,817
2024		7,215		1,708
2025		7,391		1,912
2026		31,300		1,964
Thereafter		596,925		4,094
	$	658,812	$	13,264

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

COMMON STOCK WARRANTS

12 Months Ended

Dec. 31, 2021

Warrant Liability [Abstract]

COMMON STOCK WARRANTS

7. COMMON STOCK WARRANTS

Upon the Closing, there were 14,666,644 Warrants, consisting of 9,999,977 Public Warrants and 4,666,667 Private Warrants, outstanding to purchase shares of the Company's common stock that were issued by Empower prior to the Business Combination. Each warrant entitles the registered holder to purchase one share of the Company's common stock at a price of $11.50 per share, subject to adjustments, commencing on October 9, 2021 (the one-year anniversary of Empower’s initial public offering), provided that the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities laws of the state of residence of the holder. The Warrants may be exercised only for a whole number of shares of the Company’s common stock. The Warrants expire on July 16, 2026, the date that is five years after the Closing date, or earlier upon redemption or liquidation. Additionally, the Private Warrants will be non-redeemable and are exercisable on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. If the Private Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The Company may redeem the Public Warrants at a price of $0.01 per warrant upon 30 days' notice if the closing price of the Company’s common stock equals or exceeds $18.00 per share, subject to adjustments, on the trading day prior to the date on which notice of redemption is given, provided there is an effective registration statement and current prospectus in effect with respect to the ordinary shares underlying such Warrants throughout the 30-day redemption period. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Warrants, the Warrant holder is entitled to exercise his, her or its Warrant prior to the scheduled redemption date. Any such exercise requires the Warrant holder to pay the exercise price for each Warrant being exercised.

Further, the Company may redeem the Public Warrants at a price of $0.10 per warrant upon 30 days' notice if the closing price of the Company’s common stock equals or exceeds $10.00 per share, subject to adjustments, on the trading day prior to the date on which notice of redemption is given. Beginning on the date the notice of redemption is given until the Warrants are redeemed or exercised, holders may elect to exercise their Warrants on a cashless basis and receive that number of shares of the Company’s common stock as determined by reference to a table in the warrant agreement.

If a registration statement is not effective within 60 days following the Closing, warrant holders may, until such time as there is an effective registration statement and during any period when the Company has failed to maintain an effective registration statement, exercise warrants on a cashless basis in accordance with Section 3(a)(9) of the Securities Act or another exemption, but the Company will use its commercially reasonable best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

The Company’s Warrants were accounted for as liabilities in accordance with ASC 815-40 and are presented as warrant liability on the balance sheet. The warrant liability was measured at fair value at inception and on a recurring basis, with changes in fair value recognized as non-operating expense. As of December 31, 2021, a warrant liability with a fair value of $61,293 was reflected as a long-term liability in the consolidated balance sheet, and a $32,580 increase in the fair value of the warrant liability was reflected as change in fair value of warrant liability in the consolidated statements of comprehensive income for year ended December 31, 2021.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

8. FAIR VALUE MEASUREMENTS

The Company’s financial liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows:


	Fair Value Measured as of December 31, 2021
	Level 1		Level 2		Level 3		Total
Liabilities included in:
Warrant liability (Public)	$	39,500	$	—	$	—	$	39,500
Warrant liability (Private)		—		—		21,793		21,793
Earn-out liability		—		—		26,596		26,596
Total fair value	$	39,500	$	—	$	48,389	$	87,889

As of December 31, 2021, the Company's derivative liabilities for its private and public warrants, the earn-out liability (see Note 2, “Business Combination and Acquisitions,” for more details), and the acquisition contingent consideration payable are measured at fair value on a recurring basis. The fair value for the private warrants, earn-out liability, and acquisition contingent consideration payable are determined based on significant inputs not observable in the market (Level 3). The valuation of the Level 3 liabilities uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. The Company uses a Monte Carlo simulation model to estimate the fair value of its private warrants and earn-out liability. The fair value of the public warrants is determined using publicly traded prices (Level 1). Changes in the fair value of the derivative liabilities related to warrants and the earn-out liability are recognized as non-operating expense in the consolidated statements of comprehensive income (loss). Changes in the fair value of acquisition contingent consideration payable are recognized as acquisition and restructuring costs in the consolidated statements of comprehensive income (loss). As of December 31, 2020, the Company's financial liabilities subject to fair value measurement on a recurring basis consisted of acquisition contingent consideration payables of $9,200, for which the fair value was determined based on significant inputs not observable in the market (Level 3).

The fair value of private warrants was estimated as of December 31, 2021 using the Monte Carlo simulation model with the following assumptions:


Valuation date price	$	12.99
Strike price	$	11.50
Remaining life	4.54 years
Expected dividend	$	—
Risk-free interest rate		1.19	%
Price threshold	$	18.00

The fair value of the earn-out liability was estimated as of December 31, 2021 using the Monte Carlo simulation model with the following assumptions:


Valuation date price	$	12.99
Expected term	6.54 years
Expected volatility		40.59	%
Risk-free interest rate		1.40	%
Price hurdle 1	$	13.00
Price hurdle 2	$	15.00

As of December 31, 2021 and 2020, the Company had accounts receivable, accounts payable and accrued expenses for which the carrying value approximates fair value due to the short-term nature of these instruments. The carrying value of the Company’s long-term debt approximates fair value as the rates used approximate the market rates currently available to the Company. Fair value measurements used in the impairment reviews of goodwill and intangible assets are Level 3 measurements.

The reconciliation of changes in Level 3 during the year ended December 31, 2021 is as follows:


	For the year ended December 31, 2021
	Private Warrants		Acquisition Contingent Consideration			Earn-Out Liability		Total
Balance on December 31, 2020	$	—	$	9,200		$	—	$	9,200
Cash paid for contingent consideration		—		(26,573	)		—		(26,573	)
Liabilities assumed in recapitalization		9,613		—			17,722		27,335
Losses included in earnings		12,180		17,373			8,874		38,427
Balance on December 31, 2021	$	21,793	$	—		$	26,596	$	48,389

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

REVENUE

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

9. REVENUE

The principal activity from which the Company generates its revenue is the manufacturing and distribution of after-market automotive parts for its customers, comprised of resellers and end users. The Company recognizes revenue at a point in time, rather than over time, as the performance obligation is satisfied when customer obtains control of the product upon title transfer and not as the product is manufactured or developed. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e., estimated rebates, co-op advertising, etc.).

The Company collects sales tax and other taxes concurrent with revenue-producing activities which are excluded from revenue. Shipping and handling costs incurred after control of the product is transferred to our customers are treated as fulfillment costs and not a separate performance obligation.

The Company allows customers to return products when certain Company-established criteria are met. These sales returns are recorded as a charge against gross sales in the period in which the related sales are recognized, net of returns to stock. Returned products, which are recorded as inventories, are valued at the lower of cost or net realizable value. The physical condition and marketability of the returned products are the major factors considered in estimating realizable value. The Company also estimates expected sales returns and records the necessary adjustment as a charge against gross sales.

The Company’s payment terms with customers are customary and vary by customer and geography but typically range from 30 to 365 days. The Company elected the practical expedient to disregard the possible existence of a significant financing component related to payment on contracts, as the Company expects that customers will pay for the products within one year. The Company has evaluated the terms of our arrangements and determined that they do not contain significant financing components. Additionally, as all contracts with customers have an expected duration of one year or less, the Company has elected the practical expedient to exclude disclosure of information regarding the aggregate amount and future timing of performance obligations that are unsatisfied or partially satisfied as of the end of the reporting period. The Company provides limited warranties on most of its products against certain manufacturing and other defects. Provisions for estimated expenses related to product warranty are made at the time products are sold. Refer to Note 17 for more information.

The following table summarizes total revenue by product category:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
Electronic systems	$	324,522	$	266,742	$	199,295
Mechanical systems		161,836		119,784		92,498
Exhaust		76,971		71,915		51,802
Accessories		63,427		38,543		25,068
Safety		66,091		7,195		—
Total sales	$	692,847	$	504,179	$	368,663

The following table summarizes total revenue based on geographic location from which the product is shipped:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
United States	$	674,491	$	502,661	$	368,663
Italy		18,356		1,518		—
Total sales	$	692,847	$	504,179	$	368,663

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=49130388

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+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

10. INCOME TAXES

Income tax expense (benefit) of the Company consisted of:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Current income tax expense (benefit):
Federal	$	7,422		$	(530	)	$	4,420
State		323			1,174			302
Foreign		2,602			1,668			1,894
Total current income tax expense (benefit)		10,347			2,312			6,616
Deferred income tax expense (benefit):
Federal		823			7,136			(9,663	)
State		(552	)		(622	)		(1,826	)
Foreign		(189	)		—			—
Total deferred income tax expense (benefit)		82			6,514			(11,489	)
Total income tax expense (benefit)	$	10,429		$	8,826		$	(4,873	)

The Company’s income before income taxes was subject to taxes in the following jurisdictions:


	For the years ended
	December 31, 2021			December 31, 2020		December 31, 2019
United States	$	(24,772	)	$	37,548	$	(7,879	)
Foreign		8,062			4,135		3,567
Income (loss) before income taxes	$	(16,710	)	$	41,683	$	(4,312	)

Reported income tax expense (benefit) for the year ended December 31, 2021, 2020 and 2019 differs from the “expected” tax expense (benefit), computed by applying the U.S. Federal statutory income tax rate of 21% to income before income taxes as follows:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Expected tax expense (benefit) at U.S. Federal statutory rates	$	(3,510	)	$	8,753		$	(906	)
State income tax expense (benefit)		(180	)		335			(1,005	)
Permanent tax differences		825			(53	)		494
Global intangible low-taxed income		375			220			—
Foreign rate differential		719			389			369
Tax credit		(1,620	)		(646	)		(750	)
Earn-outs		5,470			—			—
Change in fair value of warrants		6,842			—			—
Transaction costs		1,465			280			—
Other differences, net		43			(452	)		(3,075	)
Total income tax expense (benefit)	$	10,429		$	8,826		$	(4,873	)

The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities consisted of the following:


	December 31,
	2021		2020
Deferred tax assets:
Reserves on assets	$	8,140	$	6,435
Liabilities not yet deductible		3,040		3,786
Interest expense limitation		7,863		5,491
Other		1,764		2,570
Total gross deferred tax assets		20,807		18,282
Deferred tax liabilities:
Tradename		32,713		31,962
Intangible assets		43,965		45,956
Goodwill		7,969		5,743
Inventory		—		832
Property, plant and equipment		6,205		5,125
Total gross deferred tax liabilities		90,852		89,618
Net deferred tax liabilities	$	70,045	$	71,336

Based on the Company’s projected pretax earnings, reversal of deferred tax liabilities and other relevant factors, management believes that it is more likely than not that the Company’s deferred tax assets at December 31, 2021 and 2020 will be realized.

As of December 31, 2021, the Company's federal and state net operating loss carryforwards for income tax purposes were immaterial. A majority of the U.S. net operating loss carryforwards have no expiration date. The remaining state net operating loss carryforwards expire at various dates through 2035. The entire amount of federal net operating loss carryforward of $865 and a significant portion of state net operating loss carryforward of $566 relate to acquisitions, and, as a result, are limited in the amount that can be recognized in any one year.

Uncertain Tax Positions

Under the accounting rules for income taxes, the Company is not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position. The Company did not have any uncertain tax positions for the year ended December 31, 2021.

The Company recognizes interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in its consolidated statements of comprehensive income (loss). In 2021 and 2020, the Company has not recognized any amount of interest and penalties for uncertain tax positions in its consolidated statements of comprehensive income (loss).

The Company files federal, state, and non-U.S. tax returns in various foreign jurisdictions. For state and non-U.S. tax returns, the Company is generally no longer subject to tax examinations for years prior to 2012. For federal tax returns, the Company is no longer subject to tax examination for years prior to 2018. The federal tax returns for 2018 through 2020 remain open for examinations. State income tax returns remain open for examination in various states for tax years 2012 through 2020.

The Company's tax policy is to comply with the laws, regulations, and filing requirements of all jurisdictions in which it conducts business. Management regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible, that certain U.S. federal and non-U.S. tax audits may be concluded within the next 12 months, which could significantly increase or decrease the balance of our gross unrecognized tax benefits. However, the estimated impact of income tax expense and net income is not expected to be significant.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

11. EARNINGS PER SHARE

The following table sets forth the calculation of basic and diluted earnings per share:


	For the years ended
	December 31, 2021			December 31, 2020		December 31, 2019
Numerator:
Net (loss) income	$	(27,139	)	$	32,857	$	561
Denominator:
Basic and diluted weighted average common shares		89,959,993			67,673,884		67,673,884
(Loss) earnings per share:
Basic	$	(0.30	)	$	0.49	$	0.01
Diluted	$	(0.30	)	$	0.49	$	0.01

The following outstanding shares of common stock equivalents were excluded from the calculation of diluted earnings per share due to the anti-dilutive effect such shares would have on net loss per common share.


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
Anti-dilutive securities excluded from calculation of diluted EPS:
Warrants		14,666,644		—		—
Stock options		1,386,974		—		—
Restricted stock units		656,485		—		—
Earn-out shares		2,187,500		—		—
Total anti-dilutive securities		18,897,603		—		—

BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

BENEFIT PLANS

12. BENEFIT PLANS

The Company has a defined benefit pension plan (the “Plan”) for its employees. The Projected Unit Credit Actuarial Cost Method is used to determine the normal cost of the Plan and estimated pension benefit obligation. During 2002, the Plan was amended to curtail accrual of future benefits under the Plan. The pension plan assets are managed to maximize total return over the long term while providing sufficient liquidity and current return to satisfy the cash flow requirements of the plan. The plan’s day-to-day investment decisions are managed by our outside investment manager; however, overall investment strategies are discussed with our employee benefits committee. Our investment strategy is to weight our portfolio towards large-cap, high-quality, dividend-growing equities that we have historically favored. As our plan matures and interest rates normalize, we expect a greater allocation to fixed-income securities to better align asset and liability market risks. Our fixed-maturity bond portfolio is investment grade. The plan does not engage in derivative transactions.

On January 28, 2022, the Company approved the termination of our defined benefit pension plan, effective March 31, 2022. The distribution of the Plan assets pursuant to the termination will not be made until the plan termination satisfies all regulatory requirements, which is expected to be completed by the fourth quarter of 2022. Plan participants will receive their full accrued benefits from plan assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The resulting settlement effect of the Plan termination will be determined based on prevailing market conditions, the lump sum offer participation rate of eligible participants, the actual lump sum distributions, and annuity purchase rates at the date of distribution. As a result, we are currently unable to reasonably estimate either the timing or the final amount of such settlement charges. Based on the valuation performed as of December 31, 2021, the Plan has an underfunded status of $862.

The following table shows the changes in the benefit obligation and plan assets and the plan’s funded status.


	December 31,
	2021			2020
Change in Projected Benefit Obligation:
Benefit obligation, January 1	$	6,551		$	5,993
Service cost		143			159
Interest cost		152			190
Benefits paid		(349	)		(339	)
Expenses paid		(135	)		(142	)
Actuarial (gain) loss		(258	)		690
Benefit obligation, December 31	$	6,104		$	6,551
Change in Plan Assets:
Fair value of plan assets, January 1	$	4,756		$	4,089
Actual return on plan assets		499			559
Employer contributions		471			589
Benefits paid from plan assets		(349	)		(339	)
Expenses paid		(135	)		(142	)
Fair value of plan net assets, December 31	$	5,242		$	4,756
Underfunded status at end of period	$	(862	)	$	(1,795	)
Amounts recognized in the consolidated balance sheet:
Current liabilities	$	—		$	—
Non-current liabilities		(862	)		(1,795	)
Net amount recorded	$	(862	)	$	(1,795	)

The accumulated benefit obligation for the Plan was $6,104 and $6,551 at December 31, 2021 and 2020. The Company made contributions of $471, $589 and $285 in 2021, 2020 and 2019, respectively. There were no participant contributions in 2021, 2020 or 2019.

Unrecognized actuarial losses are recognized as a component of accumulated other comprehensive income. The following table shows the balances reflected in accumulated other comprehensive income on a pre-tax basis for the periods presented:


	December 31,
	2021		2020
Amounts recognized in accumulated other comprehensive loss (pre-tax):
Net actuarial loss	$	283	$	822

The pre-tax amounts recognized in other comprehensive income were as follows:


	For the years ended
	December 31, 2021			December 31, 2020
Actuarial (gain) loss arising during measurement period	$	(513	)	$	386
Amortization of actuarial loss		(25	)		—
Total recognized in other comprehensive (income) loss	$	(538	)	$	386

The following summarizes the components of net periodic benefit cost for the defined benefit pension plan:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Components of expense:
Service cost	$	143		$	159		$	142
Interest cost		152			190			231
Expected return on plan assets		(240	)		(255	)		(232	)
Amortization of net loss		25			—			—
Net periodic benefit cost	$	80		$	94		$	141

Weighted-average assumptions used to determine net cost:


	December 31,
	2021			2020
Discount rate		2.38	%		3.25	%
Expected return on plan assets		6.35	%		6.35	%

The Company uses a measurement date of December 31 for its defined benefit pension plan.

Weighted-average assumptions used to determine the benefit obligation:


	December 31,
	2021			2020
Discount rate		2.78	%		2.38	%

In order to develop the expected long-term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. The fair value of the Plan assets at December 31, 2021 and 2020, by asset category, are as follows:


	For the years ended
	December 31, 2021		December 31, 2020

Common stock	$	789	$	1,562
Mutual funds		2,171		2,202
Corporate / government bonds		2,354		982
Cash and cash equivalents		20		10
Total	$	5,334	$	4,756

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis as well as the general classification of such assets pursuant to the valuation hierarchy.

Common Stock: The fair value of common stock investments is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).

Mutual Funds: The fair value of mutual fund investments is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).

Corporate/government bonds: The fair value of corporate/government bonds is based upon recent bid prices or the average of the recent bid and ask prices when available (Level 2 inputs) and if not available, they are valued through matrix pricing models developed by sources considered by management to be reliable. Matrix pricing, which is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The fair value of Holley’s pension plan assets at December 31, 2021 and 2020, by asset category using the Fair Value measurement hierarchy is shown in the table below. See Note 1, “Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies,” for more details about fair value measurements.


	December 31, 2021
	Fair Value		Level 1		Level 2		Level 3
Common stock	$	789	$	789	$	—	$	—
Mutual funds		2,171		2,171		—		—
Corporate / government bonds		2,354		—		2,354		—
Cash and cash equivalents		20		—		20		—
Total	$	5,334	$	2,960	$	2,374	$	—

	December 31, 2020
	Fair Value		Level 1		Level 2		Level 3
Common stock	$	1,562	$	1,562	$	—	$	—
Mutual funds		2,202		2,022		—		—
Corporate / government bonds		982		—		982		—
Cash and cash equivalents		10		—		10		—
Total	$	4,756	$	3,584	$	992	$	—

Plan contributions are made and the actuarial present value of accumulated Plan benefits are reported based on certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which are subject to change. Due to uncertainties inherent in the estimation and assumption process, it is at least reasonably possible that changes in these estimates and assumptions in the near term would be material to the consolidated financial statements.

The Company generally funds accrued pension cost based on minimum Employee Retirement Income Security Act funding requirements.

Benefit payments are anticipated to be as follows:


2022	$	372
2023		374
2024		371
2025		371
2026		371
2027 - 2031		1,850

401(k) Plan

The Company has 401(k) savings plan for salaried and non-salaried employees. Participation in the plan is optional. The Company matches employee contributions up to 3.5% each pay period. The Company made matching contributions of $2,579, $1,997, and $1,141 for the years ended December 31, 2021, 2020, and 2019, respectively. The Company had accrued $725 for Company match as of December 31, 2021, which is expected to be paid by the second quarter of 2022.

EQUITY-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

EQUITY-BASED COMPENSATION PLANS

13. EQUITY-BASED COMPENSATION PLANS

In 2021, the Company adopted the 2021 Omnibus Incentive Plan (the “2021 Plan”), which provides for the grant of restricted stock awards, incentive and nonqualified stock options, and other share based awards to employees, directors and non-employees. The 2021 Plan authorized 8,850,000 new shares of the Company’s common stock to be available for award grants. As of December 31, 2021, 6,797,101 shares of common stock remained available for future issuance under the 2021 Plan.

Stock Options

Stock option grants have an exercise price at least equal to the market value of the underlying common stock on the date of grant, have ten-year terms, and vest ratably over three years of continued employment. In general, vested options expire if not exercised at termination of service. On July 16, 2021, the Company granted 1,394,008 options to purchase shares of the Company’s common stock to key employees. These stock options had a weighted-average grant date fair value $3.88 per share and remain outstanding and unvested as of December 31, 2021. Compensation expense for stock options is recorded based on straight-line amortization of the grant date fair value over the requisite service period.

A summary of stock option activity during the year ended December 31, 2021 is presented below:


						Weighted
						Average
				Weighted		Remaining		Aggregate
	Outstanding			Average		Contractual		Intrinsic Value
	Stock Options			Exercise Price		Term		(in millions)
December 31, 2020		—		$	—
Granted		1,394,008			10.50
Forfeited		(7,034	)		10.50
December 31, 2021		1,386,974		$	10.50		2.54	$	3.5

As of December 31, 2021, there was $4,582 of unrecognized compensation cost related to unvested stock options that is expected to be recognized over a remaining weighted-average period of 2.5 years.

The fair value of each stock option granted on July 16, 2021 was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions:


Weighted-average expected term		6.0
Expected volatility		40.3	%
Expected dividend	$	—
Risk-free interest rate		0.94	%

The expected term has been estimated using a simplified method, which calculates the expected term as the mid-point between the vesting date and the contractual life of the awards since the Company does not have an extended history of actual exercises. The expected dividend yield is assumed to be zero since the Company has never paid dividends and does not have current plans to pay any dividends. The risk-free interest rate is based on yields of U.S. Treasury securities with maturities similar to the expected term of the options. Expected volatility is based on an evenly weighted blend of implied volatility and historical volatility of publicly-traded peer companies since the Company has limited historical volatility.

Restricted Stock Units

Restricted stock units (“RSUs”) vest ratably over one to three years from the anniversary of the Closing Date, or July 16, 2021, and expire ten years from the date of grant. The fair value of a RSU at the grant date is equal to the market price of the Company’s common stock on the grant date. On September 23, 2021, the Company granted 658,891 RSUs to key employees and directors. These RSUs had a weighted-average grant date fair value of $12.06 per unit and remain outstanding and unvested as of December 31, 2021. Compensation expense for RSUs is recorded based on amortization of the grant date fair market value over the period the restrictions lapse.

A summary of RSU activity during the year ended December 31, 2021 is presented below:


	Unvested Restricted Stock Units
				Weighted
	Number of			Average Grant
	Shares			Date Fair Value
December 31, 2020		—		$	-
Granted		658,891			12.06
Forfeited		(2,406	)		12.06
December 31, 2021		656,485		$	12.06

As of December 31, 2021, there was $6,875 of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a remaining weighted average period of 2.3 years.

Profit Interest Units

The Holley Stockholder has authorized an incentive pool of 41.4 million units of Parent that its management has the right to grant, which are designated as PIUs. Holley Stockholder grants certain employees of the Company PIU's, which are a special type of limited liability company equity unit that allows the recipient to potentially participate in a future increase in the value of the Company. PIUs are issued for no consideration and generally provide for vesting over the requisite service period, subject to the recipient remaining an employee of the Company through each vesting date. During 2021, the Holley Stockholder granted 6,546 PIUs that contained both time-based vesting criteria and performance-based vesting criteria related to the attainment of specified levels of return for certain other investors in Parent and the occurrence of certain events. The weighted-average grant date fair value of the PIUs granted in 2021 with performance-based vesting criteria was $1.25 and is being expensed over the requisite service period. During 2020 and 2019, the Holley Stockholder granted 4,507 and 2,967 PIUs, respectively, that contained certain performance vesting criteria related to the attainment of specified levels of return for certain other investors in Parent and the occurrence of certain events. The weighted-average grant date fair value of these performance based PIUs was $0.27 and $0.24 for grants in 2020 and 2019, respectively. No expense has been recorded for the 2020 or 2019 grants, as meeting the necessary performance conditions for vesting is not considered probable. Compensation expense related to PIUs is recorded based on the grant date fair value over the requisite service period.

The table below summarizes the PIU activity for the years ended December 31, 2021, 2020 and 2019:


	Profit Interest Units
				Weighted
	Outstanding			Average Grant
	Units			Date Fair Value
December 31, 2018		27,925		$	0.27
Granted		3,906			0.25
December 31, 2019		31,831			0.27
Granted		5,932			0.28
Forfeited		(2,193	)		0.27
December 31, 2020		35,570			0.27
Granted		8,445			1.31
Forfeited		(2,921	)		0.30
December 31, 2021		41,094		$	0.50

As of December 31, 2021, 2020 and 2019, the amount of unvested PIUs was 34,302, 32,383 and 30,323, respectively, with a weighted average grant date fair value of $0.48, $0.26 and $0.28 as of December 31, 2021, 2020 and 2019, respectively. For the years ended December 31, 2021, 2020 and 2019, 3,629, 1,679 and 1,508 PIUs were fully vested, respectively, with a total grant-date fair value of $3,069, $487 and $437 in 2021, 2020 and 2019, respectively.

As of December 31, 2021, there was $9,637 of total unrecognized compensation cost related to unvested time-based PIUs that is expected to be recognized over a remaining weighted-average period of 1.6 years.

The fair value of PIUs is estimated on the grant date with the following assumptions:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Weighted-average expected term		2.0			3.4			4.1
Expected volatility		55.0	%		72.5	%		72.5	%
Expected dividend	$	—		$	—		$	—
Risk-free interest rate		0.3	%		0.3	%		1.5	%

PIUs are measured at the estimated fair value on the measurement date, which is typically the grant date. The fair value of PIUs is estimated using the Black-Scholes option pricing model. Determining the fair value of PIUs at the grant date is affected by estimates involving inherent uncertainties, as well as assumptions regarding a number of other complex and subjective variables. These variables include the fair value of the equity unit classes, value adjustments for a reduction in marketability, expected unit price volatility over the expected term of the units, unit redemption and cancellation behaviors, risk-free interest rates and expected dividends.

The expected term has been estimated based on the contractual terms, vesting schedules and expectations of future unit holder behavior. The expected dividend yield is assumed to be zero since the Company has never paid dividends and does not have current plans to pay any dividends. The risk-free interest rate is based on yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. As the Parent is a private company and does not have a trading history for its equity units, the expected price volatility for the equity units is estimated by taking the average historical price volatility for industry peers. Industry peers, which the Company has designated, consist of several public companies in the industry similar in size, stage of life cycle and financial leverage.

Compensation Expense

Equity-based compensation expense included the following components:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
Stock options	$	824	$	—	$	—
Restricted stock units		1,070		—		—
Profit interest units		3,069		487		437

All equity-based compensation expense is recorded in selling, general and administrative costs in the consolidated statements of comprehensive income.

LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2021

Leases, Operating [Abstract]

LEASE COMMITMENTS

14. LEASE COMMITMENTS

The Company is obligated under various operating leases for facilities, equipment and automobiles. Leased facilities serve functions including distribution, engineering, manufacturing, office space, research and development, and retail sales. Leases have a remaining term of one to ten years some of which have an option to renew. The aggregate future minimum fixed lease obligations under operating leases for the Company as of December 31, 2021, are as follows:


2022	$	8,517
2023		6,320
2024		4,766
2025		2,995
2026		2,813
Thereafter		8,546

For the years ended December 31, 2021, 2020 and 2019, total rent expense under operating leases approximated $8,412, $4,688 and $4,737, respectively. Taxes, insurance and maintenance expenses relating to all leases are obligations of the Company.

MAJOR RESELLER CUSTOMERS

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

MAJOR RESELLER CUSTOMERS

15. MAJOR RESELLER CUSTOMERS

The Company's reseller customers include many large and well-known automotive parts retailers and distributors. The following table summarizes resellers that individually account for more than 5% of the Company’s net sales in any of the periods presented:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Customer A		19.3	%		21.5	%		20.0	%
Customer B		4.1	%		5.4	%		5.7	%
Customer C		3.5	%		4.5	%		5.6	%

The following reseller customers accounted for 10% or more of the Company’s account receivable balance in any of the periods presented:


	For the years ended
	December 31, 2021			December 31, 2020
Customer A		7.4	%		13.2	%

ACQUISITION, RESTRUCTURING AND MANAGEMENT FEE COSTS

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Acquistion, Reconstructuring and Management Fee Cost

16. ACQUISITION, RESTRUCTURING AND MANAGEMENT FEE COSTS

The following table summarizes total acquisition, restructuring and management fee costs:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019

Acquisitions (1)	$	5,074	$	4,434	$	1,404
Restructuring (2)		1,465		5,309		3,538
Management fees (3)		25,789		6,089		3,662
Earn out adjustment (4)		17,173		—		—
Total acquisition, restructuring and management fees	$	49,501	$	15,832	$	8,604

(1)

Includes professional fees for legal, accounting, consulting, administrative, and other professional services directly attributable to potential acquisitions.

(2)

Includes costs incurred as part of the restructuring of operations including professional and consulting services.

(3)

Includes acquisition costs and management fees paid to Sentinel Capital Partners, including a fee of $23,275 paid in 2021 upon the Closing of the Business Combination. Director compensation of $90 attributable to Mr. Basham's and Mr. Coady's service on Holley's Board of Directors paid to Sentinel Capital Partners is included in selling, general, and administrative cost for the year ended December 31, 2021.

(4)

A fair value adjustment to the contingent consideration payable from the Simpson acquisition.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

17. COMMITMENTS AND CONTINGENCIES

The Company is a party to various lawsuits and claims in the normal course of business. While the lawsuits and claims against the Company cannot be predicted with certainty, management believes that the ultimate resolution of the matters will not have a material effect on the consolidated financial position or results of operations of the Company.

The Company generally warrants its products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. The accrued product warranty costs are based primarily on historical experience of actual warranty claims and are recorded at the time of the sale.

The following table provides the changes in the Company's accrual for product warranties, which is classified as a component of accrued liabilities in the consolidated balance sheets.


	For the thirteen weeks ended						For the years ended
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Beginning balance	$	2,645		$	3,496		$	3,989		$	3,454
Accrued for current year warranty claims		4,722			3,614			10,185			11,251
Settlement of warranty claims		(3,373	)		(3,121	)		(10,180	)		(10,716	)
Ending balance	$	3,994		$	3,989		$	3,994		$	3,989

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule Of Valuation And Qualifying Accounts Disclosure Text Block

Item 15. Exhibits, Financial Statement Schedules

The following documents are filed as part of this Annual Report on Form 10-K:

(1)

Financial Statements:

The financial statements are filed as part of this Annual Report on Form 10-K under “Item 8. Financial Statements and Supplementary Data.”

(2)

Financial Statement Schedules:

Schedule II-Valuation and Qualifying Accounts is included below. The rest of the schedules required by this item have been omitted as they are either not required, not applicable or the information required is presented in the financial statements and notes thereto under "Item 8. Financial Statements and Supplementary Data" of this report.


Holley Inc. and Subsidiaries
Schedule II - Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020, and 2019

			Charged				Charged
	Balance at		(Credited)		Reserves		Against			Balance at
	Beginning of		to Costs and		from		Allowances			End of
	Period		Expenses		Acquisitions		(1) (2)			Period
Accounts receivable reserve:
Year ended December 31, 2019:
Bad debt reserve	$	334	$	103	$	—	$	229		$	208
Cash discount reserve		406		3,751		—		3,915			242
Year ended December 31, 2020:
Bad debt reserve		208		1,597		—		992			813
Cash discount reserve		242		5,289		—		5,105			426
Year ended December 31, 2021:
Bad debt reserve		813		809		—		666			956
Cash discount reserve		426		6,173		—		6,169			430

Inventory valuation reserve:
Year ended December 31, 2019:
Expired and obsolete reserve		16,177		2,792		—		99			18,870
Year ended December 31, 2020:
Expired and obsolete reserve		18,870		2,293		480		(409	)		22,052
Year ended December 31, 2021:
Expired and obsolete reserve		22,052		3,806		1,226		804			26,280

(1) Write-off of uncollectible accounts, net of recoveries.
(2) Write-off of obsolete inventory, net of inventory adjustments.

(3)

Exhibits:

See Exhibit Index immediately following the signature page of this Annual Report on Form 10-K.

DESCRIPTION OF THE BUSINESS, BASIS OF PRESENTATION, AND SUMMARY ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Emerging Growth Company Status	Emerging Growth Company Status Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company is an emerging growth company, and, as such, has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards.
Risks and Uncertainties	Risks and Uncertainties COVID-19 has adversely impacted global supply chain and general economic conditions. The Company has experienced disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain Company products in distribution channels. The full extent of the impact of the COVID-19 pandemic on the Company's business and operational and financial performance and condition is currently uncertain and will depend on many factors outside the Company's control, including but not limited to the timing, extent, duration and effects of the virus and any of its mutations, the utilization and effectiveness of treatments and vaccines, the imposition of effective public safety and other protective measures, the further impact of COVID-19 on the global economy and demand for the Company's products and services. Should the COVID-19 pandemic, including variants such as Delta and Omicron, not improve or worsen, or if the Company's attempt to mitigate its impact on its supply chain, operations and costs is not successful, the Company's business, results of operations, financial condition and prospects may be adversely affected.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or “GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These estimates require the use of judgment as future events and the effect of these events cannot be predicted with certainty. The estimates will change as new events occur, as more experience is acquired and as more information is obtained. The Company evaluates and updates assumptions and estimates on an ongoing basis and may consult outside experts to assist as considered necessary.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and deposits with financial institutions with original maturities less than 90 days. The Federal Deposit Insurance Corporation insures financial institution deposits up to $250. The Company maintains deposits exceeding $250 in certain accounts at financial institutions. At December 31, 2021 and 2020, the Company had cash in foreign bank accounts of $5,765 and $4,607, respectively.
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Accounts receivable represent amounts due from customers in the ordinary course of business. The receivables are stated at the amount management expects to collect. The Company is subject to risk of loss from uncollectible receivables in excess of its allowance. The Company maintains an allowance for credit losses for estimated losses from customers’ inability to make required payments. In order to estimate the appropriate level of this allowance, the Company analyzes historical bad debts, customer concentrations, current customer credit worthiness, current economic trends and changes in customer payment patterns. Accounts are written off when management determines the account is uncollectable. Interest is not charged on past due accounts.
Inventory Valuation	Inventory Valuation The Company's inventories are stated at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances.
Segments	Segments The Company's operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment.
Goodwill	Goodwill Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis or whenever events or changes in circumstances indicate the carrying value of goodwill may have been impaired, the Company may perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that the fair value of the reporting unit is less than its carrying amount or elects not to perform a qualitative assessment, it will perform a quantitative analysis; otherwise, no further evaluation is necessary. For the quantitative impairment assessment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Impairments, if any, are charged directly to earnings. In 2021, the Company performed a qualitative assessment and did not identify any indicators of impairment. No impairment charges have been incurred during 2021, 2020, or 2019.
Intangible Assets Other Than Goodwill	Intangible Assets Other Than Goodwill Tradenames acquired in certain business combinations were determined to have indefinite useful lives and are not amortized, but instead are tested for impairment on an annual basis and when facts and circumstances indicate that the carrying values of the assets may be impaired. If such review indicates an asset’s carrying value may not be recoverable, an impairment loss is recognized for the excess of the carrying value over the fair value of the asset. As part of separate business acquisitions, the Company’s customer relationships, technology and certain tradenames were identified as definite-lived intangible assets. The customer relationship intangible assets are being amortized over a ten to twenty-five year life based on the attrition rate of customers. The technology intangible assets are being amortized over a five to fourteen year life based on the lifecycle of previous technology. The tradenames are being amortized over a fifteen to twenty year life based on the estimated life of the tradename.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment acquired in various acquisitions have been recorded at fair value. All other property, plant and equipment is recorded at cost. Depreciation and amortization are provided for using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for new property, plant and equipment additions are seven years to twenty-five years for buildings and improvements and three to ten years for machinery and equipment. Maintenance, repairs, and betterments which do not enhance the value of or increase the life of the assets are expensed as incurred.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs are being amortized using the effective interest method over the term of the related debt. As of December 31, 2021 and 2020 unamortized debt issuance costs were $13,264 and $16,684, respectively, and are included as a reduction of debt. In connection with the Company's refinancing of its existing credit facility in 2021, a loss on the early extinguishment of debt of $13,650 was recognized for the write-off of unamortized debt issuance costs. Additionally, the Company paid $13,413 in original issue discount and issuance costs related to the new credit facility. Amortization expense for debt issuance costs was $3,182, $3,092, and $3,097 in 2021, 2020 and 2019, respectively, which is included in interest expense in the accompanying consolidated statements of comprehensive income (loss).
Self-Insurance	Self-Insurance The Company is self-insured for employee medical and prescription drug benefits up to certain stop loss coverage amounts. The Company accrues an estimate for unpaid claims, as well as incurred but not reported claims, based upon the Company’s claim experience and expectations of future claim activity. The resulting liability and expense are reflected as a component of accrued expenses, cost of sales and selling, general and administrative expenses in the accompanying consolidated balance sheets and consolidated statements of comprehensive income (loss), respectively.
Revenue Recognition	Revenue Recognition The Company recognizes revenue with customers when control of the promised goods transfers to the customer. This generally occurs when the product is shipped to the customer. Revenue is recorded at the amount of consideration the Company expects to be entitled to in exchange for the delivered goods, which includes an estimate of variable consideration, expected returns, or refunds when applicable. The Company estimates variable consideration, such as sales incentives, by using the most likely amount approach, which considers the single most likely amount from a range of possible consideration amounts. Estimates of variable consideration result in an adjustment to the transaction price such that it is probable that a significant reversal of cumulative revenue would not occur in the future. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. Revenue is recorded net of sales tax. Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in selling, general and administrative costs. For more information about the Company’s revenue from contracts with customers, refer to Note 9 Revenue. Customer Sales Incentives Sales incentives provided take the form of either sales discounts or rebates and are treated as a reduction of net sales. The Company also maintains a cooperative advertising program with its customers and provides sales incentives to the extent of the estimated value of advertising provided by the customer on behalf of the Company. The costs incurred under the cooperative advertising program are included as a reduction of net sales. Sales Returns Estimated sales returns and allowances are recorded as a charge against gross sales in the period in which the related sales are recognized, net of returns to stock. The Company allows customers to return products when certain Company-established criteria are met. The Company estimates sales returns based primarily upon actual historical returns, planned product discontinuances, and promotional sales. Returned products, which are recorded as inventories, are valued at the lower of cost or net realizable value. The physical condition and marketability of the returned products are the major factors considered in estimating realizable value.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes income tax positions only if those positions are “more likely than not” of being sustained upon examination by taxing authorities. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in its consolidated income statements. The Company has no amounts accrued for such interest or penalties as of December 31, 2021 and 2020. The Company files income tax returns in the U.S. federal jurisdiction and various foreign and state jurisdictions. As of December 31, 2021 and 2020, the Company did not have any unrecognized tax benefits. The statute of limitations remains open for U.S. federal income tax examinations for years ended December 31, 2018 through December 31, 2020. U.S. state jurisdictions have statues of limitations generally ranging from three to eight years. The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months.
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets The Company accounts for long-lived assets, including intangible assets subject to amortization, in accordance with the provisions that require long-lived assets, such as property and equipment, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
Advertising	Advertising Advertising production costs are expensed the first time the advertising takes place. Total advertising expenses were $6,299, $4,379, and $3,921 for the years ended December 31, 2021, 2020, and 2019, respectively. Advertising costs are classified as a component of selling, general and administrative costs in the accompanying consolidated statements of comprehensive income (loss).
Research and Development Costs	Research and Development Costs Research, development, pre-production and start-up costs related to both present and future products are expensed as incurred. Such costs amount to $28,280, $23,483, and $20,630 for the years ended December 31, 2021, 2020, and 2019, respectively.
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Comprehensive loss encompasses all changes in stockholder’s equity and includes net income, change in the foreign currency translation adjustment and minimum pension liability. The Company’s accumulated other comprehensive loss shown on the consolidated balance sheets as of December 31, 2021 and 2020 consists of minimum pension loss of $302 and $690, respectively, and foreign currency translation adjustments of $(46) and $(16), respectively.
Foreign Currencies	Foreign Currencies The functional currency of the Company’s Italian subsidiary is the Euro. Assets and liabilities of foreign operations are translated using period end exchange rates. Revenue and expenses are translated using average exchange rates during each period reported. Translation gains are reported in accumulated other comprehensive loss as a component of shareholders equity and were $30 and $16 as of December 31, 2021 and 2020, respectively. The Company recognizes foreign currency transaction gains (losses) on certain assets and liabilities. These transaction (gains) losses are reported in other expense in the consolidated statements of comprehensive income (loss) and were $44, $(284), and $(27) for the years ended December 31, 2021, 2020 and 2019, respectively.
Warrants	Warrants The Company reviews the terms of warrants to purchase its common stock to determine whether warrants should be classified as liabilities or stockholders' equity in its consolidated balance sheet. In order for a warrant to be classified in stockholders' equity, the warrant must be (a) indexed to the Company's equity and (b) meet the conditions for equity classification in Accounting Standards Codification ("ASC") Subtopic 815-40, Derivatives and Hedging-Contracts in an Entity's Own Equity. If a warrant does not meet the conditions for equity classification, it is carried in the consolidated balance sheet as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in the consolidated statements of comprehensive income as a non-operating expense. If a warrant meets both conditions for equity classification, the warrant is initially recorded in additional paid-in capital on the consolidated balance sheet, and the amount initially recorded is not subsequently re-measured at fair value.
Equity-Based Compensation	Equity-Based Compensation The Company accounts for equity-based awards granted to employees and nonemployees under the fair value method prescribed by ASC Subtopic 718-10, Stock Compensation. Equity-based compensation cost is measured based on the estimated grant date fair value of the award and is recognized as expense over the requisite service period (generally the vesting period). The Company accounts for forfeitures as they occur. The fair value of stock options is estimated using the Black Scholes option-pricing model. Restricted stock units are valued at the stock price on the grant date. The fair value of profit interest units ("PIUs") granted by Holley Parent Holdings, LLC (the “Holley Stockholder” or “Parent”) is estimated based on the Company’s estimated equity value for each unit class at the time of granting using the Black-Scholes option-pricing model, discounted to reflect market considerations for illiquidity.
Earnings per Share	Earnings per Share Earnings per share is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimizes the use of unobservable inputs to the extent possible. The inputs used to measure fair value are prioritized based on a three-level hierarchy, which are defined as follows: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
Derivative Financial Instruments	Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. Derivative liabilities are classified on the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.
Recent Accounting Standards	Recent Accounting Pronouncements Accounting Standards Recently Adopted The FASB issued 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 will provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU is effective for annual reporting periods beginning after December 15, 2022. The Company early adopted the standard in 2020. There was no material impact of adopting this guidance on its financial statements. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize right-of-use assets, representing their right to use the underlying asset for the lease term, and lease liabilities on the balance sheet for all leases with terms greater than 12 months. The Company has substantially completed its preparation for the adoption of this new accounting standard. This included assessing the completeness of our lease arrangements, evaluating practical expedients and accounting policy elections, and executing changes to our business process. ASU 2016-02 is effective for the Company beginning January 1, 2022. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The Company expects to elect certain practical expedients, including the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and is evaluating the other practical expedients available under the guidance. The Company also plans to elect the optional transition method that will give companies the option to use the effective date as the date of initial application on transition, and as a result, we will not adjust our comparative period financial information or make the new required lease disclosures for periods before the effective date. The Company anticipates the adoption of this new standard will result in an increase of approximately 3 percent of total assets and approximately 4 percent of total liabilities on our consolidated balance sheet. We do not expect the new standard to have a material impact on the Company's consolidated statement of income or consolidated statement of cash flows. While we are substantially complete with the process of quantifying the impacts that will result from applying the new guidance, our assessment will be finalized during the first quarter of 2022. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirements Benefits – Defined Benefit Plans – General (Subtopic 715-20). The ASU is effective for the Company for annual reporting periods beginning after December 15, 2021 with early adoption permitted. This guidance should be applied on a retrospective basis to all periods presented. The ASU will update disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. The Company is in the process of terminating its defined benefit pension plan and does not expect this guidance to have a significant impact on its financial statements or related disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) which is intended to simplify various aspects related to accounting for income taxes. This ASU is effective for the Company for annual reporting periods beginning after December 15, 2021 and interim periods therein, with early adoption permitted. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company does not expect the adoption of this ASU to have a material impact on its financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. As of December 31, 2021, the Company did not adopt any expedients or exceptions under ASU 2020-04. The Company will continue to evaluate the impact of ASU 2020-04 and whether it will apply the optional expedients and exceptions. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Subtopic 470-20). The ASU is effective for the Company for annual reporting periods beginning after December 15, 2023 and interim periods therein, with early adoption permitted as of the beginning of the Company's annual fiscal year. The ASU includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity and simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models in Subtopic 470-20. Additionally, the ASU requires entities to use the “if-converted” method when calculating diluted earnings per share for convertible instruments. When adopted, the ASU will result in changes in the fair value of its public warrants being recognized through equity rather than through the statement of income. The Company plans to early adopt the standard as of January 1, 2022.

BUSINESS COMBINATION AND ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2021

Business Acquisition [Line Items]

Summary of reconciles elements of business combination to cash flows

The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows for the year ended December 31, 2021:


	Recapitalization
Cash - Empower's trust and cash (net of redemptions of $99,353 and transaction costs of $44,314)	$	107,017
Cash - Forward Purchase Agreement		50,000
Cash - PIPE Financing		240,000
Net cash provided by Business Combination and PIPE Financing		397,017
Less: cash consideration paid to Holley Stockholder		(264,718	)
Net contributions from Business Combination and PIPE Financing	$	132,299

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Cash	$	122
Accounts receivable		618
Inventory		3,975
Property, plant and equipment		2,274
Other assets		23
Tradenames		2,608
Customer relationships		2,450
Goodwill		8,087
Accounts payable		(343	)
Accrued liabilities		(129	)
	$	19,685

Summary of pro forma information

The following table presents the supplemental and unaudited pro forma results as if Range, Drake, Simpson and Detroit Speed had been acquired as of January 1, 2019:


	For the years ended
	December 31, 2020		December 31, 2019
Pro forma net sales	$	584,270	$	461,418
Pro forma net income (loss)		37,304		(8,799	)

Baer, Inc. [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Accounts receivable	$	627
Inventory		1,813
Property, plant and equipment		695
Other assets		76
Tradenames		4,630
Customer relationships		6,075
Goodwill		8,363
Accounts payable		(81	)
Accrued liabilities		(28	)
	$	22,170

Brothers Mail Order Industries, Inc. [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Accounts receivable	$	22
Inventory		1,682
Property, plant and equipment		20
Other assets		13
Tradenames		4,975
Goodwill		19,561
Accounts payable		(34	)
Accrued liabilities		(403	)
	$	25,836

Advance Engine Management Inc. [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


	April 14, 2021 (as initially reported)			Measurement Period Adjustments			April 14, 2021 (as adjusted)
Accounts receivable	$	3,454		$	(61	)	$	3,393
Inventory		3,892			—			3,892
Property, plant and equipment		1,342			—			1,342
Other assets		493			(91	)		402
Tradenames		10,760			—			10,760
Customer relationships		14,640			—			14,640
Patents		1,970			—			1,970
Technology intangibles		110			—			110
Goodwill		17,426			(420	)		17,006
Accounts payable		(2,032	)		110			(1,922	)
Accrued liabilities		(489	)		139			(350	)
	$	51,566		$	(323	)	$	51,243

Drake Automotive Group LLC [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Cash	$	205
Accounts receivable		3,947
Inventory		14,198
Property, plant and equipment		1,296
Other assets		189
Tradenames		7,715
Customer relationships		17,175
Goodwill		7,551
Accounts payable		(2,524	)
Accrued liabilities		(648	)
	$	49,104

Simpson Performance Products, Inc. [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


	November 16, 2020 (as initially reported)			Measurement Period Adjustments			November 16, 2020 (as adjusted)
Cash	$	7,715		$	—		$	7,715
Accounts receivable		3,894			—			3,894
Inventory		19,265			(770	)		18,495
Property, plant and equipment		5,952			—			5,952
Other assets		1,613			—			1,613
Tradenames		23,980			—			23,980
Customer relationships		28,770			—			28,770
Patents		2,720			—			2,720
Goodwill		51,305			(893	)		50,412
Accounts payable		(2,483	)		—			(2,483	)
Accrued liabilities		(7,787	)		361			(7,426	)
Deferred tax liability		(12,993	)		1,375			(11,618	)
Debt		(4,615	)		—			(4,615	)
	$	117,336		$	73		$	117,409

Detroit Speed, Inc. [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


	November 16, 2020 (as initially reported)			Measurement Period Adjustments			November 16, 2020 (as adjusted)
Cash	$	1,784		$	—		$	1,784
Accounts receivable		418			—			418
Inventory		3,478			(324	)		3,154
Property, plant and equipment		3,040			—			3,040
Other assets		215			—			215
Tradenames		1,127			—			1,127
Customer relationships		560			—			560
Goodwill		2,636			159			2,795
Accounts payable		(668	)		—			(668	)
Accrued liabilities		(1,019	)		500			(519	)
Deferred tax liability		(274	)		—			(274	)
	$	11,297		$	335		$	11,632

Range Technologies Inc. [Member]

Business Acquisition [Line Items]

Summary of Purchase price allocation of assets acquired and liabilities assumed

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:


Cash	$	218
Accounts receivable		94
Inventory		231
Property, plant and equipment		7
Other assets		60
Tradename		510
Technology intangible		5,695
Goodwill		2,072
Accounts payable		(64	)
Accrued liabilities		(4	)
Deferred tax liability		(1,580	)
	$	7,239

Baer, Brothers, AEM, Drake, Simpson and Detroit Speed [Member]

Business Acquisition [Line Items]

Summary of pro forma information


	For the years ended
	December 31, 2021			December 31, 2020
Pro forma net sales	$	727,369		$	631,560
Pro forma net income (loss)		(8,464	)		31,435

INVENTORY (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories of the Company consisted of the following:


	December 31,
	2021		2020
Raw materials	$	54,818	$	44,474
Work-in-process		21,728		12,946
Finished goods		108,494		76,508
	$	185,040	$	133,928

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of property, plant, and equipment

Property, plant and equipment of the Company consisted of the following:


	December 31,
	2021		2020
Land	$	1,330	$	1,330
Buildings and improvements		10,623		8,594
Machinery and equipment		56,824		44,690
Construction in process		12,859		8,088
Total property, plant and equipment		81,636		62,702
Less: accumulated depreciation		30,141		18,973
Property, plant and equipment, net	$	51,495	$	43,729

Schedule of long-lived assets by geographic locations

The Company’s long-lived assets by geographic locations are as follows:


	December 31,
	2021		2020
United States	$	49,547	$	42,264
International		1,948		1,465
Total property, plant and equipment, net	$	51,495	$	43,729

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Goodwill

The following presents changes to goodwill for the periods indicated:


Balance at December 31, 2019	$	297,607
Drake acquisition		7,551
Simpson acquisition		51,305
Detroit Speed acquisition		2,636
Balance at December 31, 2020		359,099
AEM acquisition		17,426
Classic Instruments acquisition		4,912
Speartech acquisition		2,705
ADS acquisition		1,260
Baer acquisition		8,363
Brothers acquisition		19,561
Rocket acquisition		2,141
Measurement period adjustments*		(4,084	)
Balance at December 31, 2021	$	411,383

Summary Of Intangible Assets

Intangible assets consisted of the following:


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	268,438	$	(32,662	)	$	235,776
Tradenames		13,775		(4,119	)		9,656
Technology		26,675		(9,080	)		17,595
Total finite-lived intangible assets	$	308,888	$	(45,861	)	$	263,027

Indefinite-lived intangible assets:
Tradenames	$	175,434		—		$	175,434


	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	245,274	$	(21,819	)	$	223,455
Tradenames		13,775		(3,369	)		10,406
Technology		24,595		(6,674	)		17,921
Total finite-lived intangible assets	$	283,644	$	(31,862	)	$	251,782

Indefinite-lived intangible assets:
Tradenames	$	152,740		—		$	152,740

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following outlines the estimated future amortization expense related to intangible assets held as of December 31, 2021:


2022	$	14,644
2023		14,481
2024		13,668
2025		13,638
2026		13,532
Thereafter		193,064
Total	$	263,027

DEBT (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of debt

Debt of the Company consisted of the following:


	December 31,
	2021			2020
First lien term loan due November 17, 2028	$	630,000		$	—
Revolver		25,000			—
First lien note		—			541,969
Second lien note		—			145,000
Other		3,812			4,701
Less unamortized debt issuance costs		(13,264	)		(16,684	)
		645,548			674,986
Less current portion of long-term debt		(7,875	)		(5,528	)
	$	637,673		$	669,458

Future maturities of long-term debt and amortization of debt issuance cost

Future maturities of long-term debt and amortization of debt issuance costs as of December 31, 2021 are as follows:


	Debt		Debt Issuance Costs
2022	$	8,774	$	1,769
2023		7,207		1,817
2024		7,215		1,708
2025		7,391		1,912
2026		31,300		1,964
Thereafter		596,925		4,094
	$	658,812	$	13,264

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of value assets and liabilities measured on recurring basis

The Company’s financial liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows:


	Fair Value Measured as of December 31, 2021
	Level 1		Level 2		Level 3		Total
Liabilities included in:
Warrant liability (Public)	$	39,500	$	—	$	—	$	39,500
Warrant liability (Private)		—		—		21,793		21,793
Earn-out liability		—		—		26,596		26,596
Total fair value	$	39,500	$	—	$	48,389	$	87,889

Summary of Assumptions for Estimated Fair Value Using Monte Carlo Simulation Model

The fair value of private warrants was estimated as of December 31, 2021 using the Monte Carlo simulation model with the following assumptions:


Valuation date price	$	12.99
Strike price	$	11.50
Remaining life	4.54 years
Expected dividend	$	—
Risk-free interest rate		1.19	%
Price threshold	$	18.00

The fair value of the earn-out liability was estimated as of December 31, 2021 using the Monte Carlo simulation model with the following assumptions:


Valuation date price	$	12.99
Expected term	6.54 years
Expected volatility		40.59	%
Risk-free interest rate		1.40	%
Price hurdle 1	$	13.00
Price hurdle 2	$	15.00

Reconciliation of changes

The reconciliation of changes in Level 3 during the year ended December 31, 2021 is as follows:


	For the year ended December 31, 2021
	Private Warrants		Acquisition Contingent Consideration			Earn-Out Liability		Total
Balance on December 31, 2020	$	—	$	9,200		$	—	$	9,200
Cash paid for contingent consideration		—		(26,573	)		—		(26,573	)
Liabilities assumed in recapitalization		9,613		—			17,722		27,335
Losses included in earnings		12,180		17,373			8,874		38,427
Balance on December 31, 2021	$	21,793	$	—		$	26,596	$	48,389

REVENUE (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Revenue by Product Category

The following table summarizes total revenue by product category:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
Electronic systems	$	324,522	$	266,742	$	199,295
Mechanical systems		161,836		119,784		92,498
Exhaust		76,971		71,915		51,802
Accessories		63,427		38,543		25,068
Safety		66,091		7,195		—
Total sales	$	692,847	$	504,179	$	368,663

Summary of Revenue Based on Geographic Location

The following table summarizes total revenue based on geographic location from which the product is shipped:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
United States	$	674,491	$	502,661	$	368,663
Italy		18,356		1,518		—
Total sales	$	692,847	$	504,179	$	368,663

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) of the Company consisted of:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Current income tax expense (benefit):
Federal	$	7,422		$	(530	)	$	4,420
State		323			1,174			302
Foreign		2,602			1,668			1,894
Total current income tax expense (benefit)		10,347			2,312			6,616
Deferred income tax expense (benefit):
Federal		823			7,136			(9,663	)
State		(552	)		(622	)		(1,826	)
Foreign		(189	)		—			—
Total deferred income tax expense (benefit)		82			6,514			(11,489	)
Total income tax expense (benefit)	$	10,429		$	8,826		$	(4,873	)

Schedule of Income before Income Tax, Domestic and Foreign Jurisdictions

The Company’s income before income taxes was subject to taxes in the following jurisdictions:


	For the years ended
	December 31, 2021			December 31, 2020		December 31, 2019
United States	$	(24,772	)	$	37,548	$	(7,879	)
Foreign		8,062			4,135		3,567
Income (loss) before income taxes	$	(16,710	)	$	41,683	$	(4,312	)

Schedule of Provision and Effective tax rates


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Expected tax expense (benefit) at U.S. Federal statutory rates	$	(3,510	)	$	8,753		$	(906	)
State income tax expense (benefit)		(180	)		335			(1,005	)
Permanent tax differences		825			(53	)		494
Global intangible low-taxed income		375			220			—
Foreign rate differential		719			389			369
Tax credit		(1,620	)		(646	)		(750	)
Earn-outs		5,470			—			—
Change in fair value of warrants		6,842			—			—
Transaction costs		1,465			280			—
Other differences, net		43			(452	)		(3,075	)
Total income tax expense (benefit)	$	10,429		$	8,826		$	(4,873	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities consisted of the following:


	December 31,
	2021		2020
Deferred tax assets:
Reserves on assets	$	8,140	$	6,435
Liabilities not yet deductible		3,040		3,786
Interest expense limitation		7,863		5,491
Other		1,764		2,570
Total gross deferred tax assets		20,807		18,282
Deferred tax liabilities:
Tradename		32,713		31,962
Intangible assets		43,965		45,956
Goodwill		7,969		5,743
Inventory		—		832
Property, plant and equipment		6,205		5,125
Total gross deferred tax liabilities		90,852		89,618
Net deferred tax liabilities	$	70,045	$	71,336

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per share

The following table sets forth the calculation of basic and diluted earnings per share:


	For the years ended
	December 31, 2021			December 31, 2020		December 31, 2019
Numerator:
Net (loss) income	$	(27,139	)	$	32,857	$	561
Denominator:
Basic and diluted weighted average common shares		89,959,993			67,673,884		67,673,884
(Loss) earnings per share:
Basic	$	(0.30	)	$	0.49	$	0.01
Diluted	$	(0.30	)	$	0.49	$	0.01

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
Anti-dilutive securities excluded from calculation of diluted EPS:
Warrants		14,666,644		—		—
Stock options		1,386,974		—		—
Restricted stock units		656,485		—		—
Earn-out shares		2,187,500		—		—
Total anti-dilutive securities		18,897,603		—		—

BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Summary of Changes in The Benefit Obligation and Plan Assets and The Plan Funded Status

The following table shows the changes in the benefit obligation and plan assets and the plan’s funded status.


	December 31,
	2021			2020
Change in Projected Benefit Obligation:
Benefit obligation, January 1	$	6,551		$	5,993
Service cost		143			159
Interest cost		152			190
Benefits paid		(349	)		(339	)
Expenses paid		(135	)		(142	)
Actuarial (gain) loss		(258	)		690
Benefit obligation, December 31	$	6,104		$	6,551
Change in Plan Assets:
Fair value of plan assets, January 1	$	4,756		$	4,089
Actual return on plan assets		499			559
Employer contributions		471			589
Benefits paid from plan assets		(349	)		(339	)
Expenses paid		(135	)		(142	)
Fair value of plan net assets, December 31	$	5,242		$	4,756
Underfunded status at end of period	$	(862	)	$	(1,795	)
Amounts recognized in the consolidated balance sheet:
Current liabilities	$	—		$	—
Non-current liabilities		(862	)		(1,795	)
Net amount recorded	$	(862	)	$	(1,795	)

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table shows the balances reflected in accumulated other comprehensive income on a pre-tax basis for the periods presented:


	December 31,
	2021		2020
Amounts recognized in accumulated other comprehensive loss (pre-tax):
Net actuarial loss	$	283	$	822

Schedule of Pre Tax Amounts Recognized in Other Comprehensive Income

The pre-tax amounts recognized in other comprehensive income were as follows:


	For the years ended
	December 31, 2021			December 31, 2020
Actuarial (gain) loss arising during measurement period	$	(513	)	$	386
Amortization of actuarial loss		(25	)		—
Total recognized in other comprehensive (income) loss	$	(538	)	$	386

Summary of The Components of Net Periodic Benefit Cost

The following summarizes the components of net periodic benefit cost for the defined benefit pension plan:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Components of expense:
Service cost	$	143		$	159		$	142
Interest cost		152			190			231
Expected return on plan assets		(240	)		(255	)		(232	)
Amortization of net loss		25			—			—
Net periodic benefit cost	$	80		$	94		$	141

Schedule Of Defined Benefit Plan, Assumptions

Weighted-average assumptions used to determine net cost:


	December 31,
	2021			2020
Discount rate		2.38	%		3.25	%
Expected return on plan assets		6.35	%		6.35	%

Schedule Of Weighted Average Assumptions for Benefit Obligation

Weighted-average assumptions used to determine the benefit obligation:


	December 31,
	2021			2020
Discount rate		2.78	%		2.38	%

Schedule Of Fair Value of the Plan Assets and Target Asset Allocation

The fair value of the Plan assets at December 31, 2021 and 2020, by asset category, are as follows:


	For the years ended
	December 31, 2021		December 31, 2020

Common stock	$	789	$	1,562
Mutual funds		2,171		2,202
Corporate / government bonds		2,354		982
Cash and cash equivalents		20		10
Total	$	5,334	$	4,756

Schedule Of Fair Value Of Pension Plan Assets


	December 31, 2021
	Fair Value		Level 1		Level 2		Level 3
Common stock	$	789	$	789	$	—	$	—
Mutual funds		2,171		2,171		—		—
Corporate / government bonds		2,354		—		2,354		—
Cash and cash equivalents		20		—		20		—
Total	$	5,334	$	2,960	$	2,374	$	—

	December 31, 2020
	Fair Value		Level 1		Level 2		Level 3
Common stock	$	1,562	$	1,562	$	—	$	—
Mutual funds		2,202		2,022		—		—
Corporate / government bonds		982		—		982		—
Cash and cash equivalents		10		—		10		—
Total	$	4,756	$	3,584	$	992	$	—

Schedule of Benefit Payments

Benefit payments are anticipated to be as follows:


2022	$	372
2023		374
2024		371
2025		371
2026		371
2027 - 2031		1,850

EQUITY-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Option Activity

A summary of stock option activity during the year ended December 31, 2021 is presented below:


						Weighted
						Average
				Weighted		Remaining		Aggregate
	Outstanding			Average		Contractual		Intrinsic Value
	Stock Options			Exercise Price		Term		(in millions)
December 31, 2020		—		$	—
Granted		1,394,008			10.50
Forfeited		(7,034	)		10.50
December 31, 2021		1,386,974		$	10.50		2.54	$	3.5

Schedule of Share-Based Payment Award Stock Options Valuation using Black-Scholes Option Pricing Model

The fair value of each stock option granted on July 16, 2021 was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions:


Weighted-average expected term		6.0
Expected volatility		40.3	%
Expected dividend	$	—
Risk-free interest rate		0.94	%

Schedule of RSU Activity

A summary of RSU activity during the year ended December 31, 2021 is presented below:


	Unvested Restricted Stock Units
				Weighted
	Number of			Average Grant
	Shares			Date Fair Value
December 31, 2020		—		$	-
Granted		658,891			12.06
Forfeited		(2,406	)		12.06
December 31, 2021		656,485		$	12.06

Schedule of Equity-Based Compensation Expense

Equity-based compensation expense included the following components:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
Stock options	$	824	$	—	$	—
Restricted stock units		1,070		—		—
Profit interest units		3,069		487		437

PIU [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Option Activity

The table below summarizes the PIU activity for the years ended December 31, 2021, 2020 and 2019:


	Profit Interest Units
				Weighted
	Outstanding			Average Grant
	Units			Date Fair Value
December 31, 2018		27,925		$	0.27
Granted		3,906			0.25
December 31, 2019		31,831			0.27
Granted		5,932			0.28
Forfeited		(2,193	)		0.27
December 31, 2020		35,570			0.27
Granted		8,445			1.31
Forfeited		(2,921	)		0.30
December 31, 2021		41,094		$	0.50

Schedule of Share-Based Payment Award Stock Options Valuation using Black-Scholes Option Pricing Model

The fair value of PIUs is estimated on the grant date with the following assumptions:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Weighted-average expected term		2.0			3.4			4.1
Expected volatility		55.0	%		72.5	%		72.5	%
Expected dividend	$	—		$	—		$	—
Risk-free interest rate		0.3	%		0.3	%		1.5	%

LEASE COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Lessee Disclosure [Abstract]

Schedule of Future Minimum Fixed Lease Obligations Under Operating Leases

The aggregate future minimum fixed lease obligations under operating leases for the Company as of December 31, 2021, are as follows:


2022	$	8,517
2023		6,320
2024		4,766
2025		2,995
2026		2,813
Thereafter		8,546

MAJOR RESELLER CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Schedules of Concentration of Risk

The following table summarizes resellers that individually account for more than 5% of the Company’s net sales in any of the periods presented:


	For the years ended
	December 31, 2021			December 31, 2020			December 31, 2019
Customer A		19.3	%		21.5	%		20.0	%
Customer B		4.1	%		5.4	%		5.7	%
Customer C		3.5	%		4.5	%		5.6	%

The following reseller customers accounted for 10% or more of the Company’s account receivable balance in any of the periods presented:


	For the years ended
	December 31, 2021			December 31, 2020
Customer A		7.4	%		13.2	%

ACQUISITION, RESTRUCTURING AND MANAGEMENT FEE COSTS (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Summarizes of total acquisition, restructuring and management fee costs

The following table summarizes total acquisition, restructuring and management fee costs:


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019

Acquisitions (1)	$	5,074	$	4,434	$	1,404
Restructuring (2)		1,465		5,309		3,538
Management fees (3)		25,789		6,089		3,662
Earn out adjustment (4)		17,173		—		—
Total acquisition, restructuring and management fees	$	49,501	$	15,832	$	8,604

(1)

Includes professional fees for legal, accounting, consulting, administrative, and other professional services directly attributable to potential acquisitions.

(2)

Includes costs incurred as part of the restructuring of operations including professional and consulting services.

(3)

(4)

A fair value adjustment to the contingent consideration payable from the Simpson acquisition.

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Accrual For Product Warranties

The following table provides the changes in the Company's accrual for product warranties, which is classified as a component of accrued liabilities in the consolidated balance sheets.


	For the thirteen weeks ended						For the years ended
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Beginning balance	$	2,645		$	3,496		$	3,989		$	3,454
Accrued for current year warranty claims		4,722			3,614			10,185			11,251
Settlement of warranty claims		(3,373	)		(3,121	)		(10,180	)		(10,716	)
Ending balance	$	3,994		$	3,989		$	3,994		$	3,989

Description of Organization and Business Operations - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) ReportableSegment $ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)	Dec. 31, 2022 USD ($)
Description of Organization and Business Operations (Details) [Line Items]
FDIC Deposits Maturities	90 days
Federal Deposit Insurance Corporation institution deposits	$ 250
Cash in Foreign Bank Accounts	$ 5,765	$ 4,607
Number of Reportable Segments \| ReportableSegment	1
Impairment charges	$ 0	0	$ 0
Unamortized debt issuance costs	13,264	16,684
Loss on the early extinguishment of debt	13,650
Debt Issuance Costs	13,264	16,684
Amortization expense for debt issuance costs	3,182	3,092	3,097
Interest expense penalties	0	0
Unrecognized tax benefits	0	0		$ 0
Advertising production costs	6,299	4,379	3,921
Research, Development, Pre Production and Start Up Costs	28,280	23,483	20,630
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ (46)	$ (16)
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.0001	$ 0.0001
Other Expense [Member]
Description of Organization and Business Operations (Details) [Line Items]
Other Nonoperating Income (Expense)	$ 44	$ (284)	$ (27)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	30	16
2021 Credit Facility [Member]
Description of Organization and Business Operations (Details) [Line Items]
Unamortized debt issuance costs	13,413
Debt Issuance Costs	$ 13,413
Maximum [Member]
Description of Organization and Business Operations (Details) [Line Items]
U.S. State Jurisdictions Statues of Limitations	8 years
Maximum [Member] \| Buildings and Improvements [Member]
Description of Organization and Business Operations (Details) [Line Items]
Estimated useful lives for new property, plant and equipment	25 years
Maximum [Member] \| Machinery and equipment [Member]
Description of Organization and Business Operations (Details) [Line Items]
Estimated useful lives for new property, plant and equipment	10 years
Minimum [Member]
Description of Organization and Business Operations (Details) [Line Items]
U.S. State Jurisdictions Statues of Limitations	3 years
Minimum [Member] \| Buildings and Improvements [Member]
Description of Organization and Business Operations (Details) [Line Items]
Estimated useful lives for new property, plant and equipment	7 years
Minimum [Member] \| Machinery and equipment [Member]
Description of Organization and Business Operations (Details) [Line Items]
Estimated useful lives for new property, plant and equipment	3 years
Customer Relationship Intangible Assets [Member] \| Maximum [Member]
Description of Organization and Business Operations (Details) [Line Items]
Amortized Period	25 years
Customer Relationship Intangible Assets [Member] \| Minimum [Member]
Description of Organization and Business Operations (Details) [Line Items]
Amortized Period	10 years
Technology Intangible [Member] \| Maximum [Member]
Description of Organization and Business Operations (Details) [Line Items]
Amortized Period	14 years
Technology Intangible [Member] \| Minimum [Member]
Description of Organization and Business Operations (Details) [Line Items]
Amortized Period	5 years
Trade Names [Member] \| Maximum [Member]
Description of Organization and Business Operations (Details) [Line Items]
Amortized Period	20 years
Trade Names [Member] \| Minimum [Member]
Description of Organization and Business Operations (Details) [Line Items]
Amortized Period	15 years
Minimum pension loss [Member]
Description of Organization and Business Operations (Details) [Line Items]
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 302	$ 690

Business Combination and Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands									12 Months Ended
	Dec. 23, 2021	Dec. 16, 2021	Jul. 16, 2021	Apr. 14, 2021	Dec. 18, 2020	Nov. 16, 2020	Nov. 11, 2020	Oct. 18, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Oct. 09, 2021
Business Acquisition [Line Items]
Common stock, share issued									115,807,337	67,673,884
Warrant price per share												$ 11.50
Purchase of warrants (in Shares)												1
Cash payment of business combination									$ 264,718
Units exchanged in Detroit Speed transaction										$ 2,000
Business acquisition intangible assets including goodwill acquired									13,145
Transaction costs									44,314
Cash acquired									107,017
IPO [Member]
Business Acquisition [Line Items]
Warrants expiration term			5 years
Warrant price per share			$ 11.50
Warrants Expire Date			Jul. 16, 2026
Public Warrants [Member] \| IPO [Member]
Business Acquisition [Line Items]
Purchase of warrants (in Shares)			8,333,310
Private Placement Warrants [Member] \| IPO [Member]
Business Acquisition [Line Items]
Purchase of warrants (in Shares)			4,666,667
Merger Agreement \| PIPE Investors
Business Acquisition [Line Items]
Repayment Of Outstanding Principal			$ 100,000
A&R FPA
Business Acquisition [Line Items]
Proceeds from issuance of common stock			$ 50,000
Warrant price per share			$ 11.50
A&R FPA \| Common Stock
Business Acquisition [Line Items]
Common stock, share issued			5,000,000
A&R FPA \| Warrant
Business Acquisition [Line Items]
Purchase of warrants (in Shares)			1,666,667
Subscription Agreement [Member] \| PIPE Investors
Business Acquisition [Line Items]
Common stock shares subscribed but not issued			24,000,000
Sale of stock issue price per share			$ 10.00
Common stock shares subscribed but not issued value			$ 240,000
Finspeed LLC, Classic Instruments LLC, ADS Precision Machining Inc, Rocket Performance Machine Inc and Speartech Fuel Injections Systems Inc [Members]
Business Acquisition [Line Items]
Cash payment of business combination									$ 19,685
Finspeed LLC, Classic Instruments LLC, ADS Precision Machining Inc, Rocket Performance Machine Inc and Speartech Fuel Injections Systems Inc [Members] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life									18 years
Baer, Inc. [Member]
Business Acquisition [Line Items]
Date of acquisitions	Dec. 23, 2021
Cash payment of business combination	$ 22,170
Business acquisition intangible assets including goodwill acquired	19,068
Business combination transaction costs expensed									$ 222
Accounts Receivable Acquired	$ 800
Baer, Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life	20 years
Brothers Mail Order Industries, Inc. [Member]
Business Acquisition [Line Items]
Date of acquisitions		Dec. 16, 2021
Cash payment of business combination		$ 25,836
Business acquisition intangible assets including goodwill acquired		24,536
Business combination transaction costs expensed									191
Accounts Receivable Acquired		$ 22
Range Technologies Inc. [Member]
Business Acquisition [Line Items]
Date of acquisitions								Oct. 18, 2019
Business combination ownership acquired								100.00%
Cash payment of business combination								$ 7,239
Business acquisition intangible assets including goodwill acquired								8,277
Accounts Receivable Acquired								$ 94
Range Technologies Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life								14 years
Empower Sponsor Holdings LLC [Member] \| Merger Agreement
Business Acquisition [Line Items]
Business combination contingent consideration shares issuable			2,187,500
Drake Automotive Group LLC [Member]
Business Acquisition [Line Items]
Date of acquisitions							Nov. 11, 2020
Business combination purchase price							$ 49,104
Business combination ownership acquired							100.00%
Cash payment of business combination							$ 47,104
Business combination earn out payment							2,000
Business acquisition intangible assets including goodwill acquired							32,441
Accounts Receivable Acquired							$ 4,155
Drake Automotive Group LLC [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life							20 years
Simpson Performance Products, Inc. [Member]
Business Acquisition [Line Items]
Date of acquisitions						Nov. 16, 2020
Business combination purchase price						$ 117,409
Business combination ownership acquired						100.00%
Cash payment of business combination						$ 110,209
Business combination earn out payment						7,200
Business acquisition intangible assets including goodwill acquired						107,618
Business combination additional potential consideration payment						25,000
Fair value of additional payment						7,200			24,373
Business combination contingent consideration adjustment									17,173
Accounts Receivable Acquired						$ 3,894
Simpson Performance Products, Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life						20 years
Simpson Performance Products, Inc. [Member] \| Patents [Member]
Business Acquisition [Line Items]
Intangible assets useful life						10 years
Detroit Speed, Inc. [Member]
Business Acquisition [Line Items]
Date of acquisitions					Dec. 18, 2020
Business combination purchase price					$ 11,297
Cash payment of business combination					9,297
Units exchanged in Detroit Speed transaction					2,000
Business acquisition intangible assets including goodwill acquired					4,323
Accounts Receivable Acquired					$ 418
Detroit Speed, Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life					10 years
Advance Engine Management Inc. [Member]
Business Acquisition [Line Items]
Date of acquisitions				Apr. 14, 2021
Cash payment of business combination				$ 51,243
Business acquisition intangible assets including goodwill acquired				44,486
Net sales									16,593
Net income									2,664
Business combination transaction costs expensed									$ 2,264
Accounts Receivable Acquired				$ 3,454
Advance Engine Management Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets useful life				20 years
Advance Engine Management Inc. [Member] \| Patents [Member]
Business Acquisition [Line Items]
Intangible assets useful life				13 years
Holley Parent Holdings LLC \| Merger Agreement
Business Acquisition [Line Items]
Common stock, share issued			67,673,884
Sale of stock issue price per share			$ 10.00
Cash payment of business combination			$ 264,718

Business Combination and Acquisitions - Summary of reconciles elements of business combination to cash flows (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Cash - Empowers trust and cash (net of redemptions of $99,353 and transaction costs of $44,314)	$ 107,017
Cash - Forward Purchase Agreement	50,000
Cash - PIPE Financing	240,000
Net cash provided by Business Combination and PIPE Financing	397,017
Less: cash consideration paid to Holley Stockholder	264,718
Net contributions from Business Combination and PIPE Financing	$ 132,299

Business Combination and Acquisitions - Summary of reconciles elements of business combination to cash flows (Parenthetical) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Empowers trust and cash redemptions	$ 99,353
Transaction costs	$ 44,314

Business Combination and Acquisitions - Summary of Purchase price allocation of assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 23, 2021	Dec. 16, 2021	Apr. 14, 2021	Dec. 31, 2020	Nov. 16, 2020	Nov. 11, 2020	Dec. 31, 2019	Oct. 18, 2019
Business Acquisition [Line Items]
Other assets	$ 23
Goodwill	411,383				$ 359,099			$ 297,607
Finspeed LLC, Classic Instruments LLC, ADS Precision Machining Inc, Rocket Performance Machine Inc and Speartech Fuel Injections Systems Inc [Members]
Business Acquisition [Line Items]
Cash	122
Accounts receivable	618
Inventory	3,975
Property, plant and equipment	2,274
Goodwill	8,087
Accounts payable	(343)
Accrued liabilities	(129)
Net assets acquired and liabilities assumed	19,685
Finspeed LLC, Classic Instruments LLC, ADS Precision Machining Inc, Rocket Performance Machine Inc and Speartech Fuel Injections Systems Inc [Members] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets	2,450
Finspeed LLC, Classic Instruments LLC, ADS Precision Machining Inc, Rocket Performance Machine Inc and Speartech Fuel Injections Systems Inc [Members] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets	$ 2,608
Baer, Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable		$ 627
Inventory		1,813
Property, plant and equipment		695
Other assets		76
Goodwill		8,363
Accounts payable		(81)
Accrued liabilities		(28)
Net assets acquired and liabilities assumed		22,170
Baer, Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets		6,075
Baer, Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets		$ 4,630
Brothers Mail Order Industries, Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable			$ 22
Inventory			1,682
Property, plant and equipment			20
Other assets			13
Goodwill			19,561
Accounts payable			(34)
Accrued liabilities			(403)
Net assets acquired and liabilities assumed			25,836
Brothers Mail Order Industries, Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets			$ 4,975
Drake Automotive Group LLC [Member]
Business Acquisition [Line Items]
Cash							$ 205
Accounts receivable							3,947
Inventory							14,198
Property, plant and equipment							1,296
Other assets							189
Goodwill							7,551
Accounts payable							(2,524)
Accrued liabilities							(648)
Net assets acquired and liabilities assumed							49,104
Drake Automotive Group LLC [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets							17,175
Drake Automotive Group LLC [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets							$ 7,715
Simpson Performance Products, Inc. [Member]
Business Acquisition [Line Items]
Cash						$ 7,715
Accounts receivable						3,894
Inventory						18,495
Property, plant and equipment						5,952
Other assets						1,613
Goodwill						50,412
Accounts payable						(2,483)
Accrued liabilities						(7,426)
Deferred tax liabilities						(11,618)
Debt						(4,615)
Net assets acquired and liabilities assumed						117,409
Simpson Performance Products, Inc. [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Cash						7,715
Accounts receivable						3,894
Inventory						19,265
Property, plant and equipment						5,952
Other assets						1,613
Goodwill						51,305
Accounts payable						(2,483)
Accrued liabilities						(7,787)
Deferred tax liabilities						(12,993)
Debt						(4,615)
Net assets acquired and liabilities assumed						117,336
Simpson Performance Products, Inc. [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Cash						0
Accounts receivable						0
Inventory						(770)
Property, plant and equipment						0
Other assets						0
Goodwill						(893)
Accounts payable						0
Accrued liabilities						361
Deferred tax liabilities						1,375
Debt						0
Net assets acquired and liabilities assumed						73
Simpson Performance Products, Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets						28,770
Simpson Performance Products, Inc. [Member] \| Customer Relationships [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets						28,770
Simpson Performance Products, Inc. [Member] \| Customer Relationships [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets						0
Simpson Performance Products, Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets						23,980
Simpson Performance Products, Inc. [Member] \| Trade Names [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets						23,980
Simpson Performance Products, Inc. [Member] \| Trade Names [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets						0
Simpson Performance Products, Inc. [Member] \| Patents [Member]
Business Acquisition [Line Items]
Intangible assets						2,720
Simpson Performance Products, Inc. [Member] \| Patents [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets						2,720
Simpson Performance Products, Inc. [Member] \| Patents [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets						0
Detroit Speed, Inc. [Member]
Business Acquisition [Line Items]
Cash						1,784
Accounts receivable						418
Inventory						3,154
Property, plant and equipment						3,040
Other assets						215
Goodwill						2,795
Accounts payable						(668)
Accrued liabilities						(519)
Deferred tax liabilities						(274)
Net assets acquired and liabilities assumed						11,632
Detroit Speed, Inc. [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Cash						1,784
Accounts receivable						418
Inventory						3,478
Property, plant and equipment						3,040
Other assets						215
Goodwill						2,636
Accounts payable						(668)
Accrued liabilities						(1,019)
Deferred tax liabilities						(274)
Net assets acquired and liabilities assumed						11,297
Detroit Speed, Inc. [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Cash
Accounts receivable
Inventory						(324)
Property, plant and equipment
Other assets
Goodwill						159
Accounts payable
Accrued liabilities						500
Deferred tax liabilities
Net assets acquired and liabilities assumed						335
Detroit Speed, Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets						560
Detroit Speed, Inc. [Member] \| Customer Relationships [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets						560
Detroit Speed, Inc. [Member] \| Customer Relationships [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets
Detroit Speed, Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets						1,127
Detroit Speed, Inc. [Member] \| Trade Names [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets						1,127
Detroit Speed, Inc. [Member] \| Trade Names [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets
Advance Engine Management Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable				$ 3,393
Inventory				3,892
Property, plant and equipment				1,342
Other assets				402
Goodwill				17,006
Accounts payable				(1,922)
Accrued liabilities				(350)
Net assets acquired and liabilities assumed				51,243
Advance Engine Management Inc. [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Accounts receivable				3,454
Inventory				3,892
Property, plant and equipment				1,342
Other assets				493
Goodwill				17,426
Accounts payable				(2,032)
Accrued liabilities				(489)
Net assets acquired and liabilities assumed				51,566
Advance Engine Management Inc. [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Accounts receivable				(61)
Inventory
Property, plant and equipment
Other assets				(91)
Goodwill				(420)
Accounts payable				110
Accrued liabilities				139
Net assets acquired and liabilities assumed				(323)
Advance Engine Management Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets				14,640
Advance Engine Management Inc. [Member] \| Customer Relationships [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets				14,640
Advance Engine Management Inc. [Member] \| Customer Relationships [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets
Advance Engine Management Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets				10,760
Advance Engine Management Inc. [Member] \| Trade Names [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets				10,760
Advance Engine Management Inc. [Member] \| Trade Names [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets
Advance Engine Management Inc. [Member] \| Patents [Member]
Business Acquisition [Line Items]
Intangible assets				1,970
Advance Engine Management Inc. [Member] \| Patents [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets				1,970
Advance Engine Management Inc. [Member] \| Patents [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets
Advance Engine Management Inc. [Member] \| Technology Intangible [Member]
Business Acquisition [Line Items]
Intangible assets				110
Advance Engine Management Inc. [Member] \| Technology Intangible [Member] \| Previously Reported [Member]
Business Acquisition [Line Items]
Intangible assets				110
Advance Engine Management Inc. [Member] \| Technology Intangible [Member] \| Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Intangible assets
Range Technologies Inc. [Member]
Business Acquisition [Line Items]
Cash									$ 218
Accounts receivable									94
Inventory									231
Property, plant and equipment									7
Other assets									60
Goodwill									2,072
Accounts payable									(64)
Accrued liabilities									(4)
Deferred tax liabilities									(1,580)
Net assets acquired and liabilities assumed									7,239
Range Technologies Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets									510
Range Technologies Inc. [Member] \| Technology Intangible [Member]
Business Acquisition [Line Items]
Intangible assets									$ 5,695

Business Combination and Acquisitions - Summary of pro forma information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Pro forma net sales		$ 584,270	$ 461,418
Pro forma net income (loss)		37,304	$ (8,799)
Baer, Brothers, AEM, Drake, Simpson and Detroit Speed [Member]
Business Acquisition [Line Items]
Pro forma net sales	$ 727,369	631,560
Pro forma net income (loss)	$ (8,464)	$ 31,435

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 54,818	$ 44,474
Work-in-process	21,728	12,946
Finished goods	108,494	76,508
Inventory, Net, Total	$ 185,040	$ 133,928

Property, Plant and Equipment, net - Schedule of property, plant, and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 81,636	$ 62,702
Less: accumulated depreciation	30,141	18,973
Property, Plant and Equipment, Net, Total	51,495	43,729
Land [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,330	1,330
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	10,623	8,594
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	56,824	44,690
Construction in process [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 12,859	$ 8,088

Property, Plant and Equipment, net - Schedule of long-lived assets by geographic locations (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, net	$ 51,495	$ 43,729
United States [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, net	49,547	42,264
International [member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, net	$ 1,948	$ 1,465

Goodwill And Other Intangible Assets - Schedule of Change in the Carrying Amount of Goodwill (Details) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Beginning Balance

$ 359,099

$ 297,607

Measurement period adjustments

^[1]

(4,084)

Goodwill, Ending Balance

411,383

359,099

Drake Automotive Group LLC [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

7,551

Simpson Performance Product Inc [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

51,305

Detroit Speed, Inc. [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

$ 2,636

Advance Engine Management Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

17,426

Classic Instrument Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

4,912

Speartech Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

2,705

Ads Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

1,260

Baer Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

8,363

Brothers Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

19,561

Rocket Acquisition [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Goodwill, Acquired During Period

$ 2,141

[1]	See Note 2, "Business Combination and Acquisitions - Simpson Performance Products, Inc. and Advance Engine Management Inc."

Goodwill And Other Intangible Assets - Summary Of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finite-lived intangible assets:
Finite-Lived intangible assets, Gross Carrying Amount	$ 308,888	$ 283,644
Finite-Lived intangible assets, Accumulated Amortization	(45,861)	31,862
Finite-Lived intangible assets, Net Carrying Value	263,027	251,782
Customer Relationships [Member]
Finite-lived intangible assets:
Finite-Lived intangible assets, Gross Carrying Amount	268,438	245,274
Finite-Lived intangible assets, Accumulated Amortization	(32,662)	21,819
Finite-Lived intangible assets, Net Carrying Value	235,776	223,455
Trade Names [Member]
Finite-lived intangible assets:
Finite-Lived intangible assets, Gross Carrying Amount	13,775	13,775
Finite-Lived intangible assets, Accumulated Amortization	(4,119)	3,369
Finite-Lived intangible assets, Net Carrying Value	9,656	10,406
Indefinite-lived intangible assets:
Indefinite-lived intangible assets, Gross Carrying Amount	175,434	152,740
Indefinite-lived intangible assets, Net Carrying Value	175,434	152,740
Technology [Member]
Finite-lived intangible assets:
Finite-Lived intangible assets, Gross Carrying Amount	26,675	24,595
Finite-Lived intangible assets, Accumulated Amortization	(9,080)	6,674
Finite-Lived intangible assets, Net Carrying Value	$ 17,595	$ 17,921

Goodwill And Other Intangible Assets - Schedule of Estimated Annual Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 14,644
2023	14,481
2024	13,668
2025	13,638
2026	13,532
Thereafter	193,064
Finite-Lived intangible assets, Net Carrying Value	$ 263,027	$ 251,782

Debt - Schedule of debt (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Long-term Debt, Gross	$ 645,548	$ 674,986
Other	3,812	4,701
Less unamortized debt issuance costs	(13,264)	(16,684)
Less current portion of long-term debt	(7,875)	(5,528)
Long Term Debt Including Related Parties Noncurrent	637,673	669,458
First Lien Term Loan due November 17, 2028 [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross	630,000
Revolver [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross	25,000
First Lien Note [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross		541,969
Second Lien Note [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross		$ 145,000

Debt - Additional Information (Details) $ in Thousands			12 Months Ended
Debt - Additional Information (Details) $ in Thousands	Nov. 18, 2021 USD ($)	Jul. 16, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Long-term Debt, Gross			$ 645,548	$ 674,986
Debt Issuance Costs			$ 13,264	16,684
Weighted average interest rate on credit facility			4.5
Loss on early extinguishment of debt			$ (13,650)
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowings	$ 125,000
Debt Instrument, Term	5 years
Total outstanding letters of credit			1,200
Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument Face Amount	$ 100,000
Debt Instrument, Term	6 months
Debt Instrument, Withdrawn Amount			30,000
First Lien Term Loan due November 17, 2028 [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross			$ 630,000
First Lien Term Loan due November 17, 2028 [Member] \| Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument Face Amount	$ 600,000
Debt Instrument, Term	7 years
Debt Instrument, Maturity Date			Nov. 17, 2028
Principal payment			$ 1,500
First Lien Note [Member]
Line of Credit Facility [Line Items]
Debt Instrument Face Amount	$ 600,000
Long-term Debt, Gross				541,969
Total outstanding letters of credit				1,200
First Lien Note [Member] \| Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument Face Amount				550,000
Repayment of outstanding principal	537,820
Loss on early extinguishment of debt	11,638
Second Lien Note [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross				145,000
Repayment of outstanding principal	45,000	$ 100,000
Loss on early extinguishment of debt	(587)	$ (1,425)
Second Lien Note [Member] \| Sentinel Capital Partners Junior Fund I [Member]
Line of Credit Facility [Line Items]
Amount outstanding, related party				$ 20,000
First Lien and Second Lien Notes [Member]
Line of Credit Facility [Line Items]
Debt issuance costs, gross	$ 13,413
Loss on early extinguishment of debt			(13,650)
LIBOR [Member] \| First Lien Note [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Effective Percentage				5.20%
LIBOR [Member] \| First Lien Note [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowings				$ 50,000
LIBOR [Member] \| Second Lien Note [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Effective Percentage				8.70%
Prime Rate [Member]
Line of Credit Facility [Line Items]
Long-term Debt, Gross				$ 0
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowings			$ 10,000

Debt - Future maturities of long-term debt and amortization of debt issuance cost (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 8,774
2023	7,207
2024	7,215
2025	7,391
2026	31,300
Thereafter	596,925
Long-term Debt, Total	658,812
Debt Issuance Costs, Net [Abstract]
2022	1,769
2023	1,817
2024	1,708
2025	1,912
2026	1,964
Thereafter	4,094
Debt Issuance Costs	$ 13,264	$ 16,684

Common Stock Warrants - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Oct. 09, 2021
Class of warrant or right outstanding				14,666,644
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Warrant entitlement, start date	Oct. 09, 2021
Class of warrant or right, number of securities called by each warrant or right				1
Warrant expiry date	Jul. 16, 2026
Warrant price per share				$ 11.50
Change in fair value of warrant liability	$ 32,580,000
Warrant Liability	61,293,000
Liability [Member]
Change in fair value of warrant liability	32,580,000
Warrant Liability	$ 61,293,000
Public Warrants [Member] \| Share Price $18.00 [Member]
Warrant price per share	$ 0.01
Common stock, share price	$ 18.00
Warrants for redemption, description	The Company may redeem the Public Warrants at a price of $0.01 per warrant upon 30 days' notice if the closing price of the Company’s common stock equals or exceeds $18.00 per share, subject to adjustments, on the trading day prior to the date on which notice of redemption is given, provided there is an effective registration statement and current prospectus in effect with respect to the ordinary shares underlying such Warrants throughout the 30-day redemption period. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Warrants, the Warrant holder is entitled to exercise his, her or its Warrant prior to the scheduled redemption date. Any such exercise requires the Warrant holder to pay the exercise price for each Warrant being exercised.
Public Warrants [Member] \| Share Price $10.00 [Member]
Warrant price per share	$ 0.10
Common stock, share price	$ 10.00
Warrants for redemption, description	the Company may redeem the Public Warrants at a price of $0.10 per warrant upon 30 days' notice if the closing price of the Company’s common stock equals or exceeds $10.00 per share, subject to adjustments, on the trading day prior to the date on which notice of redemption is given. Beginning on the date the notice of redemption is given until the Warrants are redeemed or exercised, holders may elect to exercise their Warrants on a cashless basis and receive that number of shares of the Company’s common stock as determined by reference to a table in the warrant agreement.
Common Stock [Member] \| Private Warrants [Member]
Class of warrant or right outstanding				4,666,667
Common Stock [Member] \| Public Warrants [Member]
Class of warrant or right outstanding				9,999,977

Fair Value Measurements - Summary of key inputs into the monte carlo simulation model (Details) - Monte Carlo Simulation Model [Member]	Dec. 31, 2021 yr USD ($)
Earn Out Liability [Member] \| Valuation date price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	12.99
Earn Out Liability [Member] \| Expected term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input \| yr	6.54
Earn Out Liability [Member] \| Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	40.59
Earn Out Liability [Member] \| Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	1.40
Earn Out Liability [Member] \| Price Hurdle 1 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	13.00
Earn Out Liability [Member] \| Price Hurdle 2 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	15.00
Private Warrants [Member \| Valuation date price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	12.99
Private Warrants [Member \| Strike price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	11.50
Private Warrants [Member \| Expected term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input \| yr	4.54
Private Warrants [Member \| Expected dividend
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input
Private Warrants [Member \| Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	1.19
Private Warrants [Member \| Price threshold
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative Investment, Measurement Input	18.00

Fair Value Measurements - Summary of Fair Value Changes (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Ending Balance	$ 87,889
Earn Out Liability [Member]
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Ending Balance	26,596
Fair Value, Inputs, Level 3 [Member]
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Beginning balance	9,200
Cash paid for contingent consideration	(26,573)
Liabilities Assumed	27,335
Losses included in earnings	38,427
Ending Balance	48,389
Fair Value, Inputs, Level 3 [Member] \| Acquisition Contingent Consideration [Member]
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Beginning balance	9,200
Cash paid for contingent consideration	(26,573)
Liabilities Assumed	0
Losses included in earnings	17,373
Ending Balance
Fair Value, Inputs, Level 3 [Member] \| Private Warrants [Member]
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Beginning balance	0
Cash paid for contingent consideration	0
Liabilities Assumed	9,613
Losses included in earnings	12,180
Ending Balance	21,793
Fair Value, Inputs, Level 3 [Member] \| Earn Out Liability [Member]
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Beginning balance	0
Cash paid for contingent consideration	0
Liabilities Assumed	17,722
Losses included in earnings	8,874
Ending Balance	$ 26,596

Fair Value Measurements (Additional Information) (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Level 3 [Member]
Fair Value Liabilities Measured On Recurring Basis [Line Items]
Contingent Consideration Payable	$ 9,200

Revenue - Summary of Revenue By Product and Geographic Location (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total sales	$ 692,847	$ 504,179	$ 368,663
Electronic Systems [Member]
Disaggregation of Revenue [Line Items]
Total sales	324,522	266,742	199,295
Mechanical System [Member]
Disaggregation of Revenue [Line Items]
Total sales	161,836	119,784	92,498
Exhaust [Member]
Disaggregation of Revenue [Line Items]
Total sales	76,971	71,915	51,802
Accessories [Member]
Disaggregation of Revenue [Line Items]
Total sales	63,427	38,543	25,068
Safety [Member]
Disaggregation of Revenue [Line Items]
Total sales	$ 66,091	$ 7,195

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Revenue - Summary of Revenue By Geographic Location (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total sales	$ 692,847	$ 504,179	$ 368,663
United States [Member]
Disaggregation of Revenue [Line Items]
Total sales	674,491	502,661	368,663
Italy [Member]
Disaggregation of Revenue [Line Items]
Total sales	$ 18,356	$ 1,518

- Definition

+ References

+ Details

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current income tax expense (benefit):
Federal	$ 7,422	$ (530)	$ 4,420
State	323	1,174	302
Foreign	2,602	1,668	1,894
Total current income tax expense (benefit)	10,347	2,312	6,616
Deferred income tax expense (benefit):
Federal	823	7,136	(9,663)
State	(552)	(622)	(1,826)
Foreign	(189)
Total deferred income tax expense (benefit)	82	6,514	(11,489)
Total income tax expense (benefit)	$ 10,429	$ 8,826	$ (4,873)

Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign Jurisdictions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
United States	$ (24,772)	$ 37,548	$ (7,879)
Foreign	8,062	4,135	3,567
Income (loss) before income taxes	$ (16,710)	$ 41,683	$ (4,312)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Income Taxes - Schedule of Provision and Effective tax rates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Expected tax expense (benefit) at U.S. Federal statutory rates	$ (3,510)	$ 8,753	$ (906)
State income tax expense (benefit)	(180)	335	(1,005)
Permanent tax differences	825	(53)	494
Global intangible low-taxed income	375	220
Foreign rate differential	719	389	369
Tax Credit	(1,620)	(646)	(750)
Earn-outs	5,470
Change in fair value of warrants	$ 6,842
Transaction costs	1,465	280	0
Other differences, net	$ 43	$ (452)	$ (3,075)
Total income tax expense (benefit)	$ 10,429	$ 8,826	$ (4,873)

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Reserves on assets	$ 8,140	$ 6,435
Liabilities not yet deductible	3,040	3,786
Interest expense limitation	7,863	5,491
Other	1,764	2,570
Total gross deferred tax assets	20,807	18,282
Deferred tax liabilities:
Tradename	32,713	31,962
Intangible assets	43,965	45,956
Goodwill	7,969	5,743
Inventory	0	832
Property, plant and equipment	6,205	5,125
Total gross deferred tax liabilities	90,852	89,618
Net deferred tax liabilities	$ 70,045	$ 71,336

Income Taxes (Additional Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Federal statutory tax rates	21.00%	21.00%	21.00%
Interest and penalties	$ 0	$ 0
State [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforward	566
Federal [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Loss Carryforward	$ 865

Earnings Per Share - Schedule of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net (loss) income	$ (27,139)	$ 32,857	$ 561
Denominator:
Basic and diluted weighted average common shares	89,959,993	67,673,884	67,673,884
(Loss) earnings per share:
Basic	$ (0.30)	$ 0.49	$ 0.01
Diluted	$ (0.30)	$ 0.49	$ 0.01

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities	18,897,603	0	0
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities	1,386,974
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities	656,485
Earn-Out Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities	2,187,500
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities	14,666,644

Benefit Plans - Summary of Changes in The Benefit Obligation and Plan Assets and The Plan Funded Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	$ 6,551
Service cost	143	$ 159	$ 142
Interest cost	152	190	231
Actuarial gain (loss)	283	822
Benefit obligation at end of year		6,551
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	4,756
Employer contributions	471	589	285
Fair value of plan net assets at end of year		4,756
Unfunded Plan [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Underfunded status at end of period	(862)	(1,795)
Pension Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	6,551	5,993
Service cost	143	159
Interest cost	152	190
Benefits paid	(349)	(339)
Expenses paid	(135)	(142)
Actuarial gain (loss)	(258)	690
Benefit obligation at end of year	6,104	6,551	5,993
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	4,756	4,089
Actual return on plan assets	499	559
Employer contributions	471	589
Benefits paid from plan assets	(349)	(339)
Expenses paid	(135)	(142)
Fair value of plan net assets at end of year	5,242	4,756	$ 4,089
Amounts recognized in the consolidated balance sheet:
Current liabilities	0	0
Non-current liabilities	(862)	(1,795)
Net amount recorded	$ (862)	$ (1,795)

Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined contribution pension plan
Employer contributions	$ 471	$ 589	$ 285
Accumulated benefit obligation	6,104	6,551
Participant contributions	$ 0	0	0
Company matching employee contribution percentage	3.50%
Unfunded Plan [Member]
Defined contribution pension plan
Underfunded status at end of period	$ (862)	(1,795)
401(k) [Member]
Defined contribution pension plan
Matching contribution	$ 2,579	$ 1,997	$ 1,141

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Benefit Plans - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Amounts recognized in accumulated other comprehensive loss (pre-tax):
Net actuarial loss	$ 283	$ 822

Benefit Plans - Schedule of Pre Tax Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Actuarial (gain) loss arising during measurement period	$ (513)	$ 386
Amortization of actuarial loss	(25)	0	$ 0
Total recognized in other comprehensive (income) loss	$ (538)	$ 386

- Definition

Amount before tax, after reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
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-Paragraph 5
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-Paragraph 2
-Subparagraph (SX 210.5-03(21))
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+ Details

Benefit Plans - Summary of The Components Of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 143	$ 159	$ 142
Interest cost	152	190	231
Expected return on plan assets	(240)	(255)	(232)
Amortization of net loss	25	0	0
Net periodic benefit cost	$ 80	$ 94	$ 141

Benefit Plans - Schedule Of Defined Benefit Plan, Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Discount rate	2.38%	3.25%
Expected return on plan assets	6.35%	6.35%

Benefit Plans - Schedule Of Weighted Average Assumptions for Benefit Obligation (Details)	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Discount rate	2.78%	2.38%

Benefit Plans - Schedule Of Fair Value of the Plan Assets and Target Asset Allocation (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Common stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset Category, Amount	$ 789	$ 1,562
Mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset Category, Amount	2,171	2,202
Corporate/government bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset Category, Amount	2,354	982
Cash and cash equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset Category, Amount	20	10
Plan Asset Categories [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset Category, Amount	$ 5,334	$ 4,756

Benefit Plans - Schedule Of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total		$ 4,756
Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	$ 5,334	4,756
Fair Value Recurring [Member] \| Corporate / government bonds [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	2,354	982
Defined Benefit Plan, Equity Securities [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	789	1,562
Mutual funds [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	2,171	2,202
Cash and cash equivalents [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	20	10
Level 1 [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	2,960	3,584
Level 1 [Member] \| Fair Value Recurring [Member] \| Corporate / government bonds [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 1 [Member] \| Defined Benefit Plan, Equity Securities [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	789	1,562
Level 1 [Member] \| Mutual funds [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	2,171	2,022
Level 1 [Member] \| Cash and cash equivalents [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 2 [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	2,374	992
Level 2 [Member] \| Fair Value Recurring [Member] \| Corporate / government bonds [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	2,354	982
Level 2 [Member] \| Defined Benefit Plan, Equity Securities [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 2 [Member] \| Mutual funds [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 2 [Member] \| Cash and cash equivalents [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	20	10
Level 3 [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 3 [Member] \| Fair Value Recurring [Member] \| Corporate / government bonds [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 3 [Member] \| Defined Benefit Plan, Equity Securities [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 3 [Member] \| Mutual funds [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	0	0
Level 3 [Member] \| Cash and cash equivalents [Member] \| Fair Value Recurring [Member]
Defined Benefit Plan, Plan Assets Reconciliation at Fair Value measurement hierarchy [Line Items]
Total	$ 0	$ 0

Benefit Plans - Schedule of Benefit Payments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Retirement Benefits [Abstract]
2022	$ 372
2023	374
2024	371
2025	371
2026	371
2027 - 2031	$ 1,850

Equity-based Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Sep. 23, 2021	Jul. 16, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted			1,394,008
Granted			1,394,008
Weighted-Average Remaining Contractual Term (Years)			2 years 6 months 14 days
2021 Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			8,850,000
Common Stock, Capital Shares Reserved for Future Issuance			6,797,101
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	658,891
Granted	658,891
Expiration period			10 years
Weighted average grant date fair value, options non-vested	$ 12.06
Unrecognized compensation cost			$ 6,875
Weighted-Average Remaining Contractual Term (Years)			2 years 3 months 18 days
Restricted Stock Units [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period			3 years
Restricted Stock Units [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period			1 year
Profit Interest Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			41,400,000
Shares granted			6,546	4,507	2,967
Granted			6,546	4,507	2,967
Shares Unvested			34,302	32,383	30,323
Weighted average grant date fair value			$ 1.25	$ 0.27	$ 0.24
Weighted average grant date fair value, options non-vested			$ 0.48	$ 0.26	$ 0.28
Unrecognized compensation cost			$ 9,637
Total grant date fair value			$ 3,069	$ 487	$ 437
Weighted-Average Remaining Contractual Term (Years)			1 year 7 months 6 days
Shares fully vested			3,629	1,679	1,508
Expected dividend			0.00%
Share based compensation expense				$ 0	$ 0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted		1,394,008
Granted		1,394,008
Expiration period			10 years
Weighted average grant date fair value, options non-vested			$ 3.88
Unrecognized compensation cost			$ 4,582
Vesting Period			3 years
Weighted-Average Remaining Contractual Term (Years)			2 years 6 months
Expected dividend			0.00%

Equity-Based Compensation Plans - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Share-based Payment Arrangement [Abstract]
Beginning Balance \| shares	0
Granted \| shares	1,394,008
Forfeited \| shares	(7,034)
Ending Balance \| shares	1,386,974
Weighted Average Exercise Price, Beginning Balance \| $ / shares	$ 0
Weighted-Average Exercise Price, Granted \| $ / shares	10.50
Weighted-Average Exercise Price, Forfeited \| $ / shares	10.50
Weighted Average Exercise Price, Ending Balance \| $ / shares	$ 10.50
Weighted-Average Remaining Contractual Term (Years)	2 years 6 months 14 days
Aggregate Intrinsic Value of Options Outstanding \| $	$ 3.5

Equity-based Compensation Plans - Schedule of Stock Options Valuation using Black-Scholes Option Pricing Model (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average expected term	6 years
Expected volatility	40.30%
Expected dividend	$ 0
Risk-free interest rate	0.94%
PIU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average expected term	2 years	3 years 4 months 24 days	4 years 1 month 6 days
Expected volatility	55.00%	72.50%	72.50%
Expected dividend	$ 0	$ 0	$ 0
Risk-free interest rate	0.30%	0.30%	1.50%

Equity-Based Compensation Plans - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units [Member]	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested RSUs, Beginning Balance \| shares	0
Unvested RSUs, Granted \| shares	658,891
Unvested RSUs, forfeited \| shares	(2,406)
Unvested RSUs, Ending Balance \| shares	656,485
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance \| $ / shares	$ 0
Weighted-Average Grant Date Fair Value Per Share, Granted \| $ / shares	12.06
Weighted-Average Grant Date Fair Value Per Share, Forfeited \| $ / shares	12.06
Weighted-Average Grant Date Fair Value Per Share, Ending Balance \| $ / shares	$ 12.06

Equity-Based Compensation Plans - Summary of Profit Interest Units Activities (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	0
Granted	1,394,008
Forfeited	(7,034)
Ending Balance	1,386,974	0
PIU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	35,570	31,831	27,925
Granted	8,445	5,932	3,906
Forfeited	(2,921)	(2,193)
Ending Balance	41,094	35,570	31,831
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance	$ 0.27	$ 0.27	$ 0.27
Weighted-Average Grant Date Fair Value Per Share, Granted	1.31	0.28	0.25
Weighted-Average Grant Date Fair Value Per Share, Forfeited	0.30	0.27
Weighted-Average Grant Date Fair Value Per Share, Ending Balance	$ 0.50	$ 0.27	$ 0.27

Equity-based Compensation Plans - Equity-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 4,963	$ 487	$ 437
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	824	0	0
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	1,070	0	0
Profit Interest Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 3,069	$ 487	$ 437

Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Rent expense	$ 8,412	$ 4,688	$ 4,737
Maximum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease term	10 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year

Lease Commitments - - Schedule of Future Minimum Fixed Lease Obligations Under Operating Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Lessee Disclosure [Abstract]
2022	$ 8,517
2023	6,320
2024	4,766
2025	2,995
2026	2,813
Thereafter	$ 8,546

Major Reseller Customers - Additional Information (Details) - Customer Concentration Risk [Member] - Major Reseller Customers [Member] - Minimum [Member]	12 Months Ended
	Dec. 31, 2021
Net Sales [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	5.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Major Reseller Customers - Schedules of Concentration of Risk (Details) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net Sales [Member] \| Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	19.30%	21.50%	20.00%
Net Sales [Member] \| Customer B [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	4.10%	5.40%	5.70%
Net Sales [Member] \| Customer C [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	3.50%	4.50%	5.60%
Accounts Receivable [Member] \| Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	7.40%	13.20%

Acquisition, restructuring and management fee costs - Summary of total acquisition, restructuring and management fee costs (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Business Combination and Asset Acquisition [Abstract]

Acquisitions

^[1]

$ 5,074

$ 4,434

$ 1,404

Restructuring

^[2]

1,465

5,309

3,538

Management fees

^[3]

25,789

6,089

3,662

Earn out adjustment

17,173

^[4]

Total acquisition, restructuring and management fees

$ 49,501

$ 15,832

$ 8,604

[1]	Includes professional fees for legal, accounting, consulting, administrative, and other professional services directly attributable to potential acquisitions.
[2]	Includes costs incurred as part of the restructuring of operations including professional and consulting services.
[3]	Includes acquisition costs and management fees paid to Sentinel Capital Partners, including a fee of $23,275 paid in 2021 upon the Closing of the Business Combination. Director compensation of $90 attributable to Mr. Basham's and Mr. Coady's service on Holley's Board of Directors paid to Sentinel Capital Partners is included in selling, general, and administrative cost for the year ended December 31, 2021.
[4]	A fair value adjustment to the contingent consideration payable from the Simpson acquisition.

Acquisition, restructuring and management fee costs - Additional Information (Details) - Sentinel Capital Partners [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Acquisition costs and management fees	$ 23,275
Selling, General and Administrative Expenses [Member]
Business Acquisition [Line Items]
Director Compensation	$ 90

Commitments and Contingencies - Schedule of Accrual For Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning Balance	$ 2,645	$ 3,496	$ 3,989	$ 3,454
Accrued for current year warranty claims	4,722	3,614	10,185	11,251
Settlement of warranty claims	(3,373)	(3,121)	(10,180)	(10,716)
Ending Balance	$ 3,994	$ 3,989	$ 3,994	$ 3,989

Valuation and Qualifying Accounts - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Expired and obsolete reserve
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 22,052	$ 18,870	$ 16,177
Charged (Credited to Costs and Expenses	3,806	2,293	2,792
Reserves from Acquisitions	1,226	480
Charged Against Allowances	804	(409)	(99)
Balance at End of Period	26,280	22,052	18,870
Bad debt reserve
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	813	208	334
Charged (Credited to Costs and Expenses	809	1,597	103
Reserves from Acquisitions
Charged Against Allowances	666	992	229
Balance at End of Period	956	813	208
Cash discount reserve
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	426	242	406
Charged (Credited to Costs and Expenses	6,173	5,289	3,751
Reserves from Acquisitions
Charged Against Allowances	6,169	5,105	3,915
Balance at End of Period	$ 430	$ 426	$ 242

Label	Element	Value
Restricted Earn Out Share	hlly_RestrictedEarnOutShare	2,187,500

Fair Value Measurements - Schedule of value assets and liabilities measured on recurring basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	$ 87,889
Earn-Out Liability
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	26,596
Warrant Liability – Public Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	39,500
Warrant Liability Private Placement Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	21,793
Level 1 [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	39,500
Level 1 [Member] \| Earn-Out Liability
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 1 [Member] \| Warrant Liability – Public Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	39,500
Level 1 [Member] \| Warrant Liability Private Placement Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 2 [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 2 [Member] \| Earn-Out Liability
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 2 [Member] \| Warrant Liability – Public Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 2 [Member] \| Warrant Liability Private Placement Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 3 [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	48,389	$ 9,200
Level 3 [Member] \| Earn-Out Liability
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	26,596	$ 0
Level 3 [Member] \| Warrant Liability – Public Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	0
Level 3 [Member] \| Warrant Liability Private Placement Warrants [Member]
Fair Value Measurements (Details) - Schedule of value assets measured on recurring basis [Line Items]
Total fair value	$ 21,793