AIR INDUSTRIES GROUP
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 14, 2025
AIRI$2.80+5.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-076418
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001213900-25-110811
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 59 previous paragraphs and 63 current paragraphs.
25 unchanged; 29 reworded; 9 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
The discussion which follows regarding our liquidity and capital resources should be read in light of our need to satisfy or refinance our existing debt in the foreseeable future and/or cure existing defaults under the Current Credit Facility.
Current report
The Current Credit Facility and Related Party Subordinated are classified as current liabilities on the condensed consolidated balance sheet as of September 30, 2025. As a result, there is substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the date of filing of these interim condensed consolidated financial statements. The Company is actively engaged in constructive discussions with all lenders regarding potential refinancing or extension of these obligations. While these discussions have been professional and remain ongoing, there can be no assurance that agreements will be reached with existing lenders or through alternative financing sources.
Current report
The Company is currently in default of certain covenants under the Current Credit Facility and Webster Bank could choose to exercise its rights. For example, it could increase the rate of interest it charges us or refuse to make loans under the revolving portion of the Current Credit Facility. It could also keep funds remitted to the collection account. If the lender were to cease making new loans under the revolving facility or limit the amount of such loans, the Company would lack the funds to continue or expand operations and would need to seek immediate capital elsewhere. To date, the lender has chosen not to exercise any of its remedies, though we have agreed to place $3,930,000 of ATM proceeds in an interest bearing account to serve as additional security for the Company’s obligations under the Current Credit Facility.
Current report
As of September 30, 2025, the Company was in compliance with its minimum Fixed Coverage Charge ratio (“FCCR”) of 1.25x on a rolling 12-month basis but was in default of the requirement that fixed asset acquisitions during fiscal 2025 not exceed $2,500.000. Additionally, we have not yet obtained a waiver with respect to our default of a required minimum FCCR of 1.05x on a rolling 12-month basis, as of June 30, 2025, having only attained a ratio of 0.76x. All other financial and business covenants under the terms its Current Credit Facility were met as of September 30, 2025.
Current report
Management remains focused on enhancing profitability and improving cash flows through cost reductions, margin improvements, and long-term revenue growth. In the third quarter of 2025, the Company initiated cost-saving measures—including a workforce reduction—to better align operating expenses with anticipated production volumes. Additional adjustments may be considered as needed.
Current report
Further details regarding outstanding indebtedness are provided in “Note 5. Debt.”
Current report
For the nine months ended September 30, 2025, we used $754,000 of cash in operations as compared to generating $508,000 for the nine months ended September 30, 2024. The reduction was due primarily to a significant increase in inventory partially offset by a decrease in accounts receivable.
Current report
For the nine months ended September 30, 2024, we generated cash of $508,000 from operations which was mainly attributable to reductions in accounts receivable and increases in accounts payable.
Current report
Cash Provided by Financing Activities
Removed paragraphs (5)
Previous report
The Current Credit Facility expires on December 30, 2025. In addition, we are in default under the Current Credit Facility due to our failure to meet the Fixed Charge Coverage Ratio required for the period ended June 30, 2025. We are required to maintain a collection account with our lender into which substantially all cash receipts are remitted. As a result of our failure to meet the Fixed Charge Coverage Ratio for the period ended June 30, 2025, our lender could choose to exercise its rights under the Current Credit Facility, for example, increase the rate of interest or refuse to make loans under the revolving portion of the Current Credit Facility and keep the funds remitted to the collection account. If the lender were to raise the rate of interest, it would adversely impact our operating results. If the lender were to cease making new loans under the revolving facility, we would lack the funds to continue operations. The Current Credit Facility expiration date, our failure to meet the Fixed Charge Coverage Ratio and the rights granted to the lender, raise substantial doubt about our ability to continue as a going concern for the one year commencing as of the date of filing this report.
Previous report
As of June 30, 2025, the amount outstanding under our Revolving Line of Credit was $12,094,000, leaving $7,906,000 of availability to support our growth, subject to having the requisite collateral and maintaining compliance with the terms of the Credit Facility.
Previous report
Cash Provided by Operating Activities
Previous report
For the six months ended June 30, 2025, we generated $1,870,000 of cash flows from operations as compared to $334,000 for the six months ended June 30, 2024. The increase was due primarily to collections of accounts receivable and an increase in non-cash expenses partially offset by the net loss and an increase in inventory.
Previous report
For the six months ended June 30, 2024, we generated $334,000 of cash flows from operations as compared to $1,406,000 for the six months ended June 30, 2023. The reduction was due primarily to the net loss and the use of a portion of customer deposits which had been advanced in 2023 for the procurement of long lead time raw materials expected to be utilized during 2024.
Reworded paragraphs (29)
Previous wording
Our products include landing gear, flight controls, engine mounts and components for aircraft jet engines and ground turbines and other complex machines. The ultimate end-user for most of our products is the U.S. government, foreign governments, and commercial global airlines. Whether it is a small individual component for assembly by others or complete assemblies we manufacture ourselves, our high quality and extremely reliable products are used in mission critical operations that are essential for safety of military personnel and civilians.
Current wording
Our products include landing gear, flight controls, engine mounts and components for aircraft jet engines, helicopters and ground turbines and other complex machines. The ultimate end-user for most of our products is the U.S. government, foreign governments, and commercial global airlines. Whether it is a small individual component for assembly by others or complete assemblies we manufacture ourselves, our high quality and extremely reliable products are used in mission critical operations that are essential for safety of military personnel and civilians.
Previous wording
Although our net sales are concentrated amongst a number of defense and aerospace prime contractors, we have cultivated long-standing relationships with a number of their subsidiaries and/or business units. Additionally, our net sales are generated across several high-profile platforms and programs including: the F-18 Hornet, the E-2 Hawkeye, the UH-60 Black Hawk Helicopters, Geared Turbo-Fan (“GTF”) Engines (used on smaller aircraft such as the Airbus A220 and Embraer E2), the CH-53 Helicopter, the F-35 Lighting II and the F-15 Eagle Tactical Fighter. In many cases, we are the sole or single supplier of certain parts and components and receive LTAs from our customers, both demonstrating their commitment to us.
Current wording
A substantial portion of our net sales are concentrated amongst a number of defense and aerospace prime contractors and we have cultivated long-standing relationships with a number of their subsidiaries and/or business units. Additionally, our net sales are generated across several high-profile platforms and programs including: the F-18 Hornet, the E-2 Hawkeye, the UH-60 Black Hawk Helicopters, Geared Turbo-Fan (“GTF”) Engines (used on smaller aircraft such as the Airbus A220 and Embraer E2), the CH-53 Helicopter, the F-35 Lighting II and the F-15 Eagle Tactical Fighter. In many cases, we are the sole or single supplier of certain parts and components and receive LTAs from our customers, both demonstrating their commitment to us.
Previous wording
For the past several years, despite facing significant financial and operational challenges, we have strategically invested substantial amounts in new capital equipment, tooling, and processes to bolster our competitive position. Additionally, we expanded our sales and marketing efforts, with a sharp focus on expanding relationships with existing customers and cultivating new ones. Fiscal 2024 marked a year of overall progress and positioning for growth. Beginning in July 2025, we reduced employment, cutting expenses by an estimated $1.0 million annually.
Current wording
For the past several years, despite facing significant financial and operational challenges, we have strategically invested substantial amounts in new capital equipment, tooling, and processes to bolster our competitive position. Additionally, we expanded our sales and marketing efforts, with a sharp focus on expanding relationships with existing customers and cultivating new ones.
Previous wording
As a result of recent contract awards, as of June 30, 2025 we had total unfilled contract values amounting to $272.9 million (including our $128.5 million in backlog plus additional potential orders against LTA agreements previously awarded to us). Our backlog of firm orders and expected orders under LTA’s provide a firm foundation for future growth, and improving profitability. However, the long-lead times to receive raw materials and then manufacture the products means that significant improvement in sales and profitability will not be achieved during the balance of 2025. We expect that sales and profitability will begin to improve in early 2026 and continue to improve during the balance of the year.
Current wording
As a result of recent contract awards, as of September 30, 2025 we had total unfilled contract values amounting to $269.0 million (including our $131.8 million in backlog plus additional potential orders against LTA agreements previously awarded to us). Our backlog of firm orders, along with anticipated orders under existing LTA’s, provides a solid foundation for future growth, and improved profitability. However, due to extended lead times for raw material procurement and the complexity of manufacturing processes, meaningful increases in sales and profitability are not expected until fiscal 2026.
Previous wording
***Net Sales:***Net sales for the three months ended June 30, 2025 were $12,659,000, a decrease of $913,000, or 6.7%, compared with $13,572,000 that we achieved in the three months ended June 30, 2024. The period-over-period decrease in net sales was primarily due to overall changes in the mix of products delivered in response to customer orders.
Current wording
***Net Sales:***Net sales for the three months ended September 30, 2025 were $10,309,000, a decrease of $2,246,000, or 17.9%, compared with $12,555,000 that we achieved in the three months ended September 30, 2024. The period-over-period decrease in net sales was primarily due to timing and overall changes in the mix of products delivered in response to customer orders.
Previous wording
The composition of customers that exceeded 10% of our net sales for the three months ended June 30, 2025 and 2024 are shown below:
Current wording
The composition of customers that exceeded 10% of our net sales for the three months end 2025 and 2024 are shown below:
Previous wording
***Gross Profit:***Gross profit for the three months ended June 30, 2025, was $2,028,000 as compared to $2,644,000 for the three months ended June 30, 2024. Our gross profit percentage for the three months ended June 30, 2025 decreased to 16.0% from the 19.5% for the three months ended June 30, 2024. The decrease in margin can be attributed to changes in the sales across our major platforms, shifts in product mix, and underutilization of personnel.
Current wording
***Gross Profit:***Gross profit for the three months ended September 30, 2025, was $2,295,000 as compared to $1,941,000 for the three months ended September 30, 2024. Our gross profit percentage for the three months ended September 30, 2025 increased to 22.3% from the 15.5% for the three months ended September 30, 2024. The increase in margin can be attributed to changes in the sales across our major platforms, shifts in product mix, and cost reductions implemented during the period.
Previous wording
Operating Expenses: Operating expenses was $2,020,000, for the three months ended June 30, 2025, an increase of $128,000, from $1,892,000 for the three months ended June 30, 2024. As a percentage of consolidated net sales, operating expenses increased to 16.0%, compared to the 13.9% achieved during the three months ended June 30, 2024. The dollar increase was primarily driven by $153,000 in stock compensation expense offset by our allowance for credit loss. We continue to look for ways to reduce our costs and improve our operating performance and financial results.
Current wording
Operating Expenses: Operating expenses was $1,979,000, for the three months ended September 30, 2025, an increase of $105,000, from $1,874,000 for the three months ended September 30, 2024. As a percentage of consolidated net sales, operating expenses increased to 19.2%, compared to the 14.9% incurred during the three months ended September 30, 2024. The dollar increase was primarily driven by increases in our stock compensation expense, and the timing of certain professional fees offset in part by reductions in wages and rent expenses. We continue to look for ways to reduce our operating expenses.
Previous wording
***Interest Expense:***Interest expense (which includes amortization of deferred financing costs) was $890,000 during the six months ended June 30, 2025, a decrease of $46,000 or 4.9% from $936,000 during the six months ended June 30, 2024. The decrease is primarily attributable to lower borrowing levels during a portion of the period and a decrease in the average interest rate on outstanding debt pursuant to our Current Credit Facility which decreased to 6.85% in 2025 as compared to 7.85% in 2024.
Current wording
Interest Expense: Interest expense (which includes amortization of deferred financing costs) was $466,000 during the three months ended September 30, 2025, a decrease of $16,000 or 3.3% from $482,000 during the three months ended September 30, 2024. The decrease is primarily attributable to lower levels of subordinate debt during a portion of the period.
Previous wording
Net (Loss) Income: Net loss for the three months ended June 30, 2025 was $422,000, compared to a net income of $298,000 for the three months ended June 30, 2024, for the reasons discussed above.
Current wording
***Net Loss:***Net loss for the three months ended September 30, 2025 was $44,000, compared to a net loss of $404,000 for the three months ended September 30, 2024, for the reasons discussed above.
Previous wording
Results of Operations for the six months ended June 30, 2025
Current wording
Results of Operations for the nine months ended September 30, 2025
Previous wording
***Net Sales:***Net sales for the six months ended June 30, 2025 were $24,802,000, a decrease of $2,831,000, or 10.2%, compared with $27,633,000 that we achieved in the six months ended June 30, 2024. The period-over-period decrease in net sales was primarily due to overall changes in the mix of products delivered in response to customer orders.
Current wording
Net Sales: Consolidated net sales for the nine months ended September 30, 2025 were $35,111,000, a decrease of $5,077,000, or 12.6%, compared with $40,188,000 that we achieved in the nine months ended September 30, 2024. The period-over-period decrease in net sales was primarily due to timing and overall changes in the mix of products requested by delivered in response to customer orders.
Previous wording
The composition of customers that exceeded 10% of our net sales for the six months ended June 30, 2025 and 2024 are shown below:
Current wording
The composition of customers that exceeded 10% of our net sales for the nine months ended September 30, 2025 and 2024 are shown below:
Previous wording
The composition of our net sales by platform or program profiles for the six months ended June 30, 2025 and 2024 are shown below:
Current wording
The composition of our net sales by platform or program profiles for the nine months ended September 30, 2025 and 2024 are shown below:
Previous wording
***Gross Profit:***Gross profit for the six months ended June 30, 2025, was $4,062,000 as compared to $4,550,000 for the six months ended June 30, 2024. Our gross profit percentage for the six months ended June 30, 2025 decreased slightly to 16.4% from 16.5% for the six months ended June 30, 2024. The decrease in margin can be attributable to changes in the sales across our major platforms, shifts in product mix, and underutilization of personnel.
Current wording
***Gross Profit:***Gross profit for the nine months ended September 30, 2025, was $6,357,000 as compared to $6,491,000 for the nine months ended September 30, 2024. Our gross profit percentage for the nine months ended September 30, 2025 increased to 18.1% from the 16.2% for the nine months ended September 30, 2024. The increase in margin can be attributable to changes in sales across our major platforms, shifts in product mix, and cost reductions implemented during the period.
Previous wording
Operating Expenses: Operating expenses was $4,800,000, for the six months ended June 30, 2025, an increase of $743,000, from $4,057,000 for the six months ended June 30, 2024. As a percentage of consolidated net sales, operating expenses increased to 19.4%, compared to the 14.7% incurred during the six months ended June 30, 2024. The dollar increase was primarily driven by increases in stock compensation expense, and costs associated with the continued improvement of our information technology system and hardening our cyber-security defenses. We continue to look for ways to reduce our costs and improve our operating performance and financial results.
Current wording
Operating Expenses: Operating expenses were $6,779,000, for the nine months ended September 30, 2025, an increase of $848,000, from $5,931,000 for the nine months ended September 30, 2024. As a percentage of consolidated net sales, operating expenses increased to 19.3%, compared to the 14.8% incurred during the nine months ended September 30, 2024. The dollar increase was primarily driven by increases in stock compensation expense, our allowance for credit losses, professional fees, and costs associated with the continued improvement of our information technology system and hardening our cyber-security defense. We continue to look for ways to reduce our operating expenses.
Previous wording
***Interest Expense:***Interest expense (which includes amortization of deferred financing costs) was $446,000 during the three months ended June 30, 2025, a decrease of $28,000 or 5.9% from $474,000 during the three months ended June 30, 2024. The decrease is primarily attributable to lower borrowing levels during a portion of the period and a decrease in the average interest rate on outstanding debt pursuant to our Current Credit Facility which decreased to 6.85% in 2025 as compared to 7.85% in 2024.
Current wording
Interest Expense: Interest expense (which includes amortization of deferred financing costs) was $1,354,000 during the nine months ended September 30, 2025, a decrease of $64,000 or 4.5% from $1,418,000 during the nine months ended September 30, 2024. The decrease is primarily attributable to lower levels of subordinated debt during a portion of the period and a reduction in the average interest rate on outstanding debt pursuant to our Current Credit Facility which decreased to 6.84% in 2025 as compared to 7.83% in 2024.
Previous wording
Net Loss: Net Loss for the six months ended June 30, 2025 was $1,410,000, compared to a net loss of $408,000 for the six months ended June 30, 2024, for the reasons discussed above.
Current wording
***Net Loss:***Net Loss for the nine months ended September 30, 2025 was $1,454,000, compared to a net loss of $812,000 for the nine months ended September 30, 2024, for the reasons discussed above.
Previous wording
During the three months ended June 30, 2025 in an At The Market (“ATM”) offering pursuant to a Registration Statement declared effective on December 19, 2024, we sold 97,866 shares for gross proceeds of $340,000. In July we sold an additional 905,787 shares for gross proceeds of $3,623,000. Since initiating the ATM in December 2024, we have sold a total of 1,330,444 shares for gross proceeds of $5,375,000.
Current wording
To support current operations and strategic initiatives, the Company raised capital through public market sales of its common stock since December 2024, and believes it can continue to access equity markets in future periods. During the nine months ended September 30, 2025, the Company sold 1,213,593 shares of common stock and generated gross proceeds of $4,869,000 through an ATM Offering, of which approximately $3,930,000 is restricted for the benefit of the Current Credit Facility lender. Since initiating the ATM in December 2024, we have sold a total of 1,330,444 shares for gross proceeds of $5,375,000. In light of ongoing negotiations with all of our lenders, the Company has temporarily paused all equity raising activity while evaluating the most effective capital structure going forward.
Previous wording
Under the terms of the Current Credit Facility, as amended, we are required to meet a prescribed Fixed Charge Coverage Ratio (as defined) that is determined at the end of each fiscal quarter. This ratio is a financial metric that we use to measure our ability to cover fixed charges such as interest and lease expenses as divided by EBITDA (as defined in the Current Credit Facility) which represents net income (loss) before interest, taxes, depreciation and amortization. As of June 30, 2025, the Company is required to meet a Fixed Charge Coverage Ratio on a rolling twelve month basis of 1.05x. As of June 31, 2025, the Company was not in compliance with this ratio having only attained a ratio of 0.76x.
Current wording
Under the terms of the Current Credit Facility, as amended, we are required to meet a prescribed Fixed Charge Coverage Ratio (as defined) that is determined at the end of each fiscal quarter. This ratio is a financial metric that we use to measure our ability to cover fixed charges such as interest and lease expenses as divided by EBITDA (as defined in the Current Credit Facility) which represents net income (loss) before interest, taxes, depreciation and amortization. We are also required to meet other business and financial covenants.
Previous wording
In addition to required Term Loan payments of approximately $1,011,000 in fiscal 2025, we may have to make additional payments. For so long as the Term Loan under the Current Credit Facility remains outstanding, if Excess Cash Flow (as defined) is a positive amount for any fiscal year, we are obligated to pay an amount equal to the lesser of (i) twenty-five percent (25%) of the Excess Cash Flow and (ii) the outstanding principal balance of the Term Loan. Such payment shall be applied to the outstanding principal balance of the Term loan, on or prior to the April 15 immediately following such fiscal year. For the fiscal year ended December 31, 2024, based on the calculation, a payment was not required.
Current wording
In addition to required Term Loan payments of approximately $262,000 for the remainder of fiscal 2025, we may have to make additional payments. For so long as the Term Loan under the Current Credit Facility remains outstanding, if Excess Cash Flow (as defined) is a positive amount for any fiscal year, we are obligated to pay an amount equal to the lesser of (i) twenty-five percent (25%) of the Excess Cash Flow and (ii) the outstanding principal balance of the Term Loan. Such payment shall be applied to the outstanding principal balance of the Term loan, on or prior to the April 15 immediately following such fiscal year. For the fiscal year ended December 31, 2024, based on the calculation, a payment was not required.
Previous wording
Our material cash requirements are for debt service, capital expenditures and working capital. We have historically met these requirements with funds provided by a combination of cash generated from operating activities and cash generated from equity and debt financings. Although navigating the current business landscape remains challenging and it is difficult to predict period-to-period financial performance, based on the amounts recently raised pursuant to our ATM, our current revenue visibility and the strength of our backlog, we believe we have sufficient liquidity to meet our financial obligations for the next twelve months from the date of issuance of our condensed consolidated financial statements included in this Quarterly Report. Our ability to do so, however, is dependent upon our ability to continue to borrow under our Current Credit Facility and extend the maturity dates of the Current Credit Facility and our subordinated debt. We have begun negotiations with both our lender under the Current Credit Facility and the holders of our subordinated debt in an effort to extend the maturity date of their loans. On August 4, 2025, we received a notice from our lender under the Current Credit Facility citing our default of the FCCR covenant and reserving its rights and remedies.
Current wording
Our material cash requirements are for debt service, capital expenditures and working capital. We have historically met these requirements with funds provided by a combination of cash generated from operating activities and cash generated from equity and debt financings. Although navigating the current business landscape remains challenging and it is difficult to predict period-to-period financial performance, based on the amounts recently raised pursuant to our ATM, our current revenue visibility and the strength of our backlog, we believe we have sufficient liquidity to meet our financial obligations for the next twelve months from the date of issuance of our condensed consolidated financial statements included in this Quarterly Report. Our ability to do so, however, is dependent upon our ability to continue to borrow under our Current Credit Facility and ultimately extend the maturity dates of the Current Credit Facility and our Related Party Notes. The lender under the Current Credit Facility will likely require that the holders of our Related Party Notes extend the terms of these Notes and agree that payment of the Related Party Notes remains subordinated to our obligations under the Current Credit Facility as the same may be amended.
Previous wording
While we are focused on our business, we will explore our options to raise additional capital or borrow additional funds on terms which we believe are favorable. Additional issuances of equity or convertible debt securities to raise capital or increases in the rates of interest payable to our current lenders or issuances of equity securities to obtain their agreements to extend their debt will likely increase our interest expense and result in dilution to our current shareholders. Further, as part of a refinancing we might be required to agree to more restrictive business or financial covenants. We could be required to issue equity securities at prices we believe are below what we believe to be the true value which could cause the price of our common stock to decrease. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional borrowings would likely require the consent of our lender under the Current Credit Facility, could require that we grant the lenders a security interest or other rights that impede our ability to operate as we deem best for our shareholders. Further, any default under a loan agreement could result in an action which could force us to seek bankruptcy protection. Additional financing may not be available upon acceptable terms, or at all.
Current wording
While we are focused on our business, we will explore our options to raise additional capital or borrow additional funds on terms which we believe are favorable and seek to obtain the agreement of our principal lender and the holders of the Related Party Notes to refinance the amounts due. Additional issuances of equity or convertible debt securities or increases in the rates of interest will likely result in dilution to our current shareholders. Further, as part of a refinancing we might be required to agree to more restrictive business or financial covenants. We could be required to issue equity securities at prices we believe are below what we believe to be the true value of our common stock which could cause the price of our common stock to decrease. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional borrowings would likely require the consent of our lender under the Current Credit Facility, could require that we grant the lenders a security interest or other rights that impede our ability to operate as we deem best for our shareholders.
Previous wording
Our ability to obtain funds through the issuance of debt or equity is dependent upon the state of the financial markets at such time as we may seek to raise funds. The state of the capital markets may be adversely impacted by various risks and uncertainties, including, but not limited to future and current impacts of global events such as public health crises, ongoing or new conflicts, banking crises, increases in inflation, the imposition of tariffs and shifts in government alliances and other risks detailed in the risk factors detailed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
Our ability to obtain funds through the issuance of debt or equity is dependent upon the state of the financial markets at such time as we may seek to raise funds. The state of the capital markets may be adversely impacted by various risks and uncertainties, including, but not limited to future and current impacts of global events such as public health crises, ongoing or new conflicts, banking crises, increases in inflation, the imposition of tariffs and shifts in government alliances and other risks detailed in the risk factors detailed in our Annual Report on Form 10-K for the year ended December 31, 2024. Additional debt or equity financing may not be available upon acceptable terms, or at all and we may need to seek bankruptcy protection to restructure our debt.
Previous wording
Cash (Used in) Provided by Financing Activities
Current wording
Cash (Used in) Provided by Operating Activities
Previous wording
During the first half of 2025, we continued to make investments to enhance our competitiveness and market position. Cash used in investing activities of $2,113,000 and $1,224,000, during the six months ended June 30, 2025 and 2024, respectively, was for new machinery and equipment. Investments in 2025 and 2024 increased our production efficiency and speed, while enabling us to maintain closer tolerances. They also expanded the size of products we can manufacture.
Current wording
During the first nine months of 2025, we continued to make investments to enhance our competitiveness and market position. Cash used in investing activities of $2,818,000 and $1,493,000, during the nine months ended September 30, 2025 and 2024, respectively, was for new property and equipment. Investments in 2025 and 2024 increased our production efficiency and speed, while enabling us to maintain closer tolerances. They also expanded the size of products we can manufacture.
Previous wording
During fiscal 2025, we will only make investments in capital equipment necessary to maintain our competitiveness or enhance our ability to produce products subject to funded orders. We expect to invest approximately an additional $400,000 during the remainder of 2025 principally for tooling required to produce product.
Current wording
During the balance of fiscal 2025, we will only make investments in capital equipment necessary to maintain our competitiveness or enhance our ability to produce products subject to funded orders. We expect to invest approximately an additional $350,000 during the remainder of 2025 principally for tooling required to produce product.
Previous wording
For the six months ended June 30, 2025, cash used in financing activities was $3,000. During this period, we obtained cash by increasing our borrowings under our Current Credit Facility by $344,000 (consisting of a net decrease in Revolving Loan borrowings of $811,000 and a net increase in our Term Loan of $1,155,000) and issuing stock for cash in the amount of $1,185,000. We used cash by paying $1,291,000 of subordinated notes - related party, $109,000 pursuant to financing lease obligations and $5,000 on a loan payable and $127,000 for taxes related to the net share settlement of equity awards.
Current wording
For the nine months ended September 30, 2025, cash provided by financing activities was $6,875,000. During this period, we increased borrowings under our Current Credit Facility by $3,826,000 (consisting of a net increase in Revolving Loan borrowings of $2,933,000 and a net increase in our Term Loan of $893,000). We also sold an aggregate of 1,213,593 shares of common stock to the public for gross proceeds of $4,869,000. During this period we also made payments of $166,000 pursuant to financing lease obligations and $7,000 on a loan payable.
Previous wording
For the six months ended June 30, 2024, cash provided by financing activities was $791,000. During this period, we increased borrowings under our Current Credit Facility by $887,000 (consisting of a net increase in Revolving Loan borrowings of $343,000, and a net increase of $544,000 in the Term Loan). We also made payments of $92,000 pursuant to financing lease obligations and $4,000 on a loan payable.
Current wording
For the nine months ended September 30, 2024, cash provided by financing activities was $825,000. During this period, we increased borrowings under our Current Credit Facility by $974,000 (consisting of a net increase in Revolving Loan borrowings of $633,000 and a net increase in our Term Loan of $341,000). We also made payments of $143,000 pursuant to financing lease obligations and $6,000 on a loan payable.