Air Industries Group Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Air Industries Group has filed its Q1 2024 10-Q report, detailing its financial status and operations.</b>

AI Summary

AIR INDUSTRIES GROUP (AIRI) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Air Industries Group filed its quarterly report (10-Q) for the period ending March 31, 2024. The company is incorporated in Nevada and its fiscal year ends on December 31. Its principal executive offices are located at 1460 Fifth Avenue, Bay Shore, New York. The company's common stock trades under the symbol AIRI on the NYSE-American exchange. Air Industries Group is classified as a non-accelerated filer and a smaller reporting company.

Why It Matters

For investors and stakeholders tracking AIR INDUSTRIES GROUP, this filing contains several important signals. This filing provides investors with an update on the company's financial performance and operational status for the first quarter of 2024. As a smaller reporting company and non-accelerated filer, this report is crucial for understanding its current financial health and compliance.

Risk Assessment

Risk Level: low — AIR INDUSTRIES GROUP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags, indicating a routine disclosure.

Analyst Insight

Monitor future filings for detailed financial results and operational updates from Air Industries Group.

Key Numbers

• 20240331 — Quarterly Period End Date (Conformed Period of Report)
• 20240515 — Filing Date (Filed As Of Date)
• 001-35927 — SEC File Number (Commission File Number)
• 10-Q — Form Type (Form Type)

Key Players & Entities

• AIR INDUSTRIES GROUP (company) — Filer name
• March 31, 2024 (date) — Quarterly period ended
• 1460 Fifth Avenue, Bay Shore, New York (location) — Principal executive offices address
• AIRI (ticker) — Trading Symbol
• NYSE-American (exchange) — Exchange on which registered
• Nevada (jurisdiction) — State of incorporation

FAQ

Industry Context

Air Industries Group operates in the aircraft part & auxiliary equipment manufacturing sector.

Regulatory Implications

The filing is made pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements.
2. Analyze segment performance if detailed revenue breakdowns are provided.
3. Compare Q1 2024 results to previous periods and analyst expectations.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Filing Documents

• ea0205845-10q_airindust.htm (10-Q) — 480KB
• ea020584501ex31-1_airindus.htm (EX-31.1) — 8KB
• ea020584501ex31-2_airindus.htm (EX-31.2) — 8KB
• ea020584501ex32-1_airindus.htm (EX-32.1) — 4KB
• ea020584501ex32-2_airindus.htm (EX-32.2) — 4KB
• 0001213900-24-043567.txt (&nbsp;) — 4024KB
• airi-20240331.xsd (EX-101.SCH) — 52KB
• airi-20240331_cal.xml (EX-101.CAL) — 50KB
• airi-20240331_def.xml (EX-101.DEF) — 218KB
• airi-20240331_lab.xml (EX-101.LAB) — 436KB
• airi-20240331_pre.xml (EX-101.PRE) — 227KB
• ea0205845-10q_airindust_htm.xml (XML) — 407KB

Financial Statements

Financial Statements 2 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II. OTHER INFORMATION 24 Item 1A.

Risk Factors

Risk Factors 24 Item 6. Exhibits 24

SIGNATURES

SIGNATURES 25 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q filed by Air Industries Group (herein referred to as "Air Industries", the "company", "we", "us", or "our") contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or Securities Act, and Section 21E of the Securities Exchange Act of 1934, or Exchange Act. Certain of the matters discussed herein concerning, among other items, our operations, cash flows, financial position and economic performance including, in particular, future sales, product demand, competition and the effect of economic conditions, include forward-looking statements.

Forward-looking statements

Forward-looking statements are predictive in nature and can be identified by the fact that they do not relate strictly to historical or current facts and generally include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates" and similar expressions. Although we believe that these statements are based upon reasonable assumptions, including projections of orders, sales, operating margins, earnings, cash flow, research and development costs, working capital, capital expenditures, distribution channels, profitability, new products, adequacy of funds from operations, and general economic conditions, these statements and other projections contained herein expressing opinions about future outcomes and non-historical information, are subject to uncertainties and, therefore, there is no assurance that the outcomes expressed in these statements will be achieved. Investors are cautioned that forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the expectations expressed in forward-looking statements contained herein. Given these uncertainties, you should not place any reliance on these forward-looking statements which speak only as of the date hereof. Factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and elsewhere in this report and the risks discussed in our other filings with the Security and Exchange Commission ("SEC"). We do not intend to update or revise publicly and undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. You are advised, however, to review any additional disclosures we make in our report

Financial statements

Item 1. Financial statements 2 Condensed Consolidated Financial Statements: Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 2 Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (unaudited) 3 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 5 Notes to Condensed Consolidated Financial Statements ( unaudited) 7 1

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements AIR INDUSTRIES GROUP Condensed Consolidated Balance Sheets March 31, December 31, 2024 2023 (unaudited) ASSETS Current Assets Cash $ 225,000 $ 346,000 Accounts Receivable, Net of Allowance for Credit Losses of $ 321,000 and $ 344,000 8,035,000 7,892,000 Inventory 29,359,000 29,851,000 Prepaid Expenses and Other Current Assets 345,000 297,000 Contract Costs Receivable 296,000 296,000 Prepaid Taxes 37,000 37,000 Total Current Assets 38,297,000 38,719,000 Property and Equipment, Net 8,031,000 8,048,000 Finance Lease Right-of-Use Assets 932,000 970,000 Operating Lease Right-of-Use Assets 1,704,000 1,866,000 Deferred Financing Costs, Net, Deposits and Other Assets 1,298,000 1,112,000 TOTAL ASSETS $ 50,262,000 $ 50,715,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Debt $ 16,309,000 $ 16,036,000 Accounts Payable and Accrued Expenses 6,275,000 6,091,000 Operating Lease Liabilities 907,000 880,000 Deferred Gain on Sale – Leaseback 38,000 38,000 Customer Deposits 3,158,000 3,557,000 Total Current Liabilities 26,687,000 26,602,000 Long Term Liabilities Debt 1,465,000 1,112,000 Subordinated Notes - Related Party 6,162,000 6,162,000 Operating Lease Liabilities 1,345,000 1,582,000 Deferred Gain on Sale – Leaseback 57,000 67,000 TOTAL LIABILITIES 35,716,000 35,525,000 Commitments and Contingencies (see Note 7) Stockholders' Equity Preferred Stock, par value $ .001 - Authorized 3,000,000 shares, 0 shares outstanding, at both March 31, 2024 and December 31, 2023. - - Common Stock - Par Value $ .001 - Authorized 6,000,000 shares, 3,315,368 and 3,303,045 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 3,000 3,000 Additional Paid-In Capital 82,990,000 82,928,000 Accumulated Deficit ( 68,447,000 ) ( 67,741,000 ) TOTAL STOCKHOLDERS' EQUITY 14,546,000 15,190,000 TOTAL LI

financial statements

financial statements 5 AIR INDUSTRIES GROUP Condensed Consolidated Statements of Cash Flows (Continued) For the Three Months Ended March 31, (Unaudited) 2024 2023 Supplemental cash flow information Cash paid during the year for interest $ 456,000 $ 476,000 Supplemental disclosure of non-cash investing and financing activities: Financing from Solar Credit Facility directly to contractor $ 399,000 $ - See accompanying notes to condensed consolidated

financial statements

financial statements 6 AIR INDUSTRIES GROUP NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Air Industries Group is a Nevada corporation ("AIRI"). The accompanying condensed consolidated financial statements presented are those of AIRI, and its wholly-owned subsidiaries; Air Industries Machining Corp. ("AIM"), Nassau Tool Works, Inc. ("NTW"), and the Sterling Engineering Corporation ("Sterling") (together, the "Company"). Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on April 15, 2024, from which the accompanying condensed consolidated balance sheet dated December 31, 2023 was derived. Going Concern and Management's Plan At each reporting period, management evaluates whether there are conditions or events that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. The Company is requi

financial statements

financial statements. Note 3. PROPERTY AND EQUIPMENT The components of property and equipment at March 31, 2024 and December 31, 2023 consisted of the following: March 31, December 31, 2024 2023 Land $ 300,000 $ 300,000 Buildings and Improvements 2,605,000 2,206,000 31.5 years Machinery and Equipment 24,509,000 24,552,000 5 - 8 years Tools and Instruments 14,368,000 14,314,000 1.5 - 7 years Automotive Equipment 266,000 266,000 5 years Furniture and Fixtures 299,000 299,000 5 - 8 years Leasehold Improvements 1,125,000 1,025,000 Term of lease Computers and Software 605,000 605,000 4 - 6 years Total Property and Equipment 44,077,000 43,567,000 Less: Accumulated Depreciation ( 36,046,000 ) ( 35,519,000 ) Property and Equipment, net $ 8,031,000 $ 8,048,000 Depreciation expense for the three months ended March 31, 2024 and 2023 was approximately $ 527,000 and $ 604,000 , respectively. Assets held under finance lease obligations are depreciated over the shorter of their related lease terms or their estimated productive lives. Note 4. OPERATING LEASE LIABILITIES The Company has operating leases for leased office and manufacturing facilities. The leases have remaining lease terms of one to five years , some of which include options to extend or terminate the leases. Three Months Ended March 31, March 31, 2024 2023 Operating lease cost: $ 321,000 $ 271,000 Total lease cost $ 321,000 $ 271,000 Other Information Cash paid for amounts included in the measurement lease liability: 265,000 249,000 Operating cash flow from operating leases $ 265,000 $ 249,000 March 31, December 31, 2024 2023 Weighted Average Remaining Lease Term - in years 2.44 2.66 Weighted Average discount rate - % 9.14 % 9.10 % 12 The aggregate undiscounted cash flows of operating lease p

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