CPI AeroStructures Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CPI AeroStructures Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and business operations.</b>

AI Summary

CPI AEROSTRUCTURES INC (CVU) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. CPI AeroStructures Inc. filed a 10-Q report for the quarter ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's principal business is manufacturing aircraft parts and auxiliary equipment. CPI AeroStructures Inc. is incorporated in New York. The filing was made on May 15, 2024.

Why It Matters

For investors and stakeholders tracking CPI AEROSTRUCTURES INC, this filing contains several important signals. This 10-Q filing provides investors with an updated view of CPI AeroStructures' financial health and operational status for the first quarter of 2024. The report is crucial for understanding the company's performance in the aerospace and defense sector, including its revenue streams from commercial and government contracts.

Risk Assessment

Risk Level: low — CPI AEROSTRUCTURES INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative developments, indicating a low level of immediate risk from this specific document.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to assess revenue trends and profitability for Q1 2024.

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-05-15 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period)
• 2023-03-31 — Prior Year Quarter End (Comparison period)

Key Players & Entities

• CPI AEROSTRUCTURES INC (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-15 (date) — Filed as of date
• 0000889348 (company) — Central Index Key
• NY (location) — State of Incorporation
• EDGEWOOD (location) — Business Address City
• 11717 (location) — Business Address Zip
• 5165865200 (phone) — Business Phone

FAQ

Industry Context

CPI AeroStructures Inc. operates in the aerospace manufacturing sector, producing structural components for commercial, military, and business aircraft.

Regulatory Implications

As a publicly traded company, CPI AeroStructures Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly reports on Form 10-Q.

What Investors Should Do

1. Analyze the revenue breakdown by contract type (Government Subcontracts, Prime Government Contracts, Commercial Contracts) for Q1 2024.
2. Examine any disclosures related to adjustments (Favorable/Unfavorable) to understand their impact on financial results.
3. Review the equity plan information for any changes or grants made during the quarter.

Key Dates

• 2024-05-15: 10-Q Filing — Report for the quarter ended March 31, 2024
• 2024-03-31: Quarter End Date — End of the reporting period
• 2024-01-01: Quarter Start Date — Beginning of the reporting period

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024. Comparative data from the previous filing (likely for the quarter ended December 31, 2023) would be needed for a direct comparison.

Key Financial Figures

• $0.001 — e on which registered Common stock, $0.001 par value per share CVU NYSE American

Filing Documents

• cpi-10q_033124.htm (10-Q) — 676KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 17KB
• ex32-1.htm (EX-32.1) — 9KB
• cpi10q001.jpg (GRAPHIC) — 3KB
• 0001999371-24-006169.txt (&nbsp;) — 3631KB
• cvu-20240331.xsd (EX-101.SCH) — 31KB
• cvu-20240331_cal.xml (EX-101.CAL) — 53KB
• cvu-20240331_def.xml (EX-101.DEF) — 100KB
• cvu-20240331_lab.xml (EX-101.LAB) — 239KB
• cvu-20240331_pre.xml (EX-101.PRE) — 199KB
• cpi-10q_033124_htm.xml (XML) — 444KB

- Financial Information

Part I - Financial Information

– Consolidated Financial Statements (Unaudited)

Item 1 – Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Operations for the Three Months ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Shareholders' Equity for the Three Months ended March 31, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2024 and 2023 (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7

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

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 14

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 18

– Controls and Procedures

Item 4 – Controls and Procedures 19

- Other Information

Part II - Other Information

– Legal Proceedings

Item 1 – Legal Proceedings 19

– Risk Factors

Item 1A – Risk Factors 19

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 19

– Defaults Upon Senior Securities

Item 3 – Defaults Upon Senior Securities 19

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 20

– Other Information

Item 5 – Other Information 20

– Exhibits

Item 6 – Exhibits 20

- Financial Information

Part I - Financial Information

- Consolidated Financial Statements

Item 1 - Consolidated Financial Statements CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2024 (Unaudited) December 31, 2023 ASSETS Current Assets: Cash $ 3,018,068 $ 5,094,794 Accounts receivable, net 4,982,137 4,352,196 Contract assets, net 34,016,949 35,312,068 Inventory 1,281,219 1,436,647 Refundable income taxes 40,000 40,000 Prepaid expenses and other current assets 532,458 678,026 Total Current Assets 43,870,831 46,913,731 Operating lease right-of-use assets 4,277,724 4,740,193 Property and equipment, net 741,264 794,056 Deferred tax asset 19,906,903 19,938,124 Goodwill 1,784,254 1,784,254 Other assets 174,530 189,774 Total Assets $ 70,755,506 $ 74,360,132 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 11,864,561 $ 10,487,012 Accrued expenses 7,943,246 10,275,695 Contract liabilities 4,497,225 5,937,629 Loss reserve 133,206 337,351 Current portion of line of credit 2,160,000 2,400,000 Current portion of long-term debt 30,010 44,498 Operating lease liabilities, current 2,037,547 1,999,058 Income taxes payable 38,358 30,107 Total Current Liabilities 28,704,153 31,511,350 Line of credit, net of current portion 16,920,000 17,640,000 Long-term operating lease liabilities 2,581,128 3,100,571 Long-term debt, net of current portion 18,736 26,483 Total Liabilities 48,224,017 52,278,404 Commitments and Contingencies (see note 11) Shareholders' Equity: Common stock - $ .001 par value; authorized 50,000,000 shares, 12,784,768 and 12,771,434 shares, respectively, issued and outstanding 12,784 12,771 Additional paid-in capital 74,154,189 73,872,679 Accumulated deficit ( 51,635,484 ) ( 51,803,722 ) Total Shareholders' Equity 22,531,489 22,081,728 Total Liabilities and Shareholders' Equity $ 70,755,506 $ 74,360,132 See Notes to

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Basis of Presentation The Company consists of CPI Aerostructures, Inc. ("CPI Aero"), Welding Metallurgy, Inc. ("WMI"), a wholly owned subsidiary of CPI Aero, and Compac Development Corporation, a wholly owned subsidiary of WMI (collectively, the "Company", "we", "us", or "our"). The condensed consolidated interim financial to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to those rules and regulations. The consolidated balance sheet at December 31, 2023 has been derived from audited consolidated financial statements, but does not include all of the information and notes required by U.S. GAAP. The Company believes that the disclosures are adequate to make the information presented not misleading. All adjustments that, in the opinion of the management, are necessary for a fair presentation for the periods presented have been reflected. Such adjustments are of a normal, recurring nature. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "Form 10-K"). The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the "CODM") to make decisions about resources to be allocated to the segment and assess its performance. Operating segm

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View this 10-Q filing on SEC EDGAR