CPI AEROSTRUCTURES INC
For the period ended Mar 31, 2025. Filed May 15, 2025.
View on SEC.govAbout this filing
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.
Mar 31, 2025 · Filed May 15, 2025
CVU$4.62+3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-13.
0001999371-24-014654
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001999371-25-006227
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 88 previous paragraphs and 71 current paragraphs.
38 unchanged; 21 reworded; 12 added; 29 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 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 (12)
Current report
On May 14, 2025, the Company obtained a waiver from its lenders under its existing Credit Agreement with respect to financial covenant noncompliance as of March 31, 2025. For additional information, see “Liquidity and Capital Resources — Bank Credit Facilities” below.
Current report
Total Revenue for the three months ended March 31, 2025 was $15,400,608 compared to $19,081,143 for the same period last year, a decrease of $3,680,535 or 19.3%, driven primarily by unfavorable adjustments on our A-10 Main Landing Gear Pods program due to increased labor and material costs.
Current report
Revenue from military subcontracts was $11,326,608 for the three months ended March 31, 2025 compared to $15,001,768 for the three months ended March 31, 20024, a decrease of $3,675,160 or 24.5%, driven primarily by unfavorable adjustments on our A-10 Main Landing Gear Pods program due to increased labor and material costs.
Current report
Procurement for the three months ended March 31, 2025 was $8,294,588 compared to $9,365,019 for the three months ended March 31, 2024, a decrease of $1,070,431 or 11.4%, driven primarily by lower material receipts for Embraer Phenom-300 Engine Inlet Assemblies program and the Collins MS-110 program.
Current report
Gross profit and gross profit percentage (“gross margin”) for the three months ended March 31, 2025 and March 31, 2024 was $1,649,475 and 10.7% compared to $3,553,749 and 18.6%, respectively, a decrease of $1,904,274, or 53.6%, and 790 basis points for the reasons noted above associated with the A-10 program. Excluding the A-10 impact, current year gross margin would be 21.6% compared to 18.6% in the first quarter of 2024.
Current report
The net adjustment of $3.1 million for the three months ended March 31, 2025 is driven primarily by a decrease of $2.1 million on the A-10 program as a result of increased labor and material costs.
Current report
(Loss) income before provision for income taxes for the three months ended March 31, 2025 was $(1,672,893) compared to $207,710 for the three months ended March 31, 2024, a decrease of $1,880,603 or 905.4% for the reasons noted above.
Current report
(Benefit)/Provision for Income Taxes
Current report
(Benefit) for income taxes for the three months ended March 31, 2025 was $(348,969) compared to provision for income taxes of $39,472 for the three months ended March 31, 2024, an increase of $388,441 or 984.1%.
Current report
The effective income tax rate for the three months ended March 31, 2025 and 2024 20.9% and 19.0%. The change in effective tax rate is result of the varying levels of income in each year and the relative impact of the R&D credit, state income taxes and permanent tax differences.
Current report
Net (loss) income for the three months ended March 31, 2025 was $(1,323,924) or $(0.10) per basic share, compared to net income of $168,238 or $0.01 per basic share, for the same period last year. Diluted (loss) per share was $(0.10) for the three months ended March 31, 2025 calculated utilizing 12,720,148 weighted average shares outstanding. Diluted income per share was $0.01 for the three months ended March 31, 2024 calculated utilizing 12,680,584 weighted average shares outstanding. The decrease in net income was primarily driven by a decrease in gross profit.
Current report
At March 31, 2025, we had working capital of $14,951,205 compared to $17,122,111 at December 31, 2024, a decrease of $2,170,906 or 12.7%. The decrease was driven primarily by a decrease in cash partly offset by an increase in accounts receivable.
Removed paragraphs (29)
Previous report
None.
Previous report
Total Revenue for the three months ended September 30, 2024 was $19,419,879 compared to $20,399,369 for the same period last year, a decrease of $979,490 or 4.8%, driven primarily by decreases in our USAF T-38 Pacer Classic Structure Modification Kits program and Northrop Grumman E-2D Advanced Hawkeye Outer Wing Panels (“OWP”), partly offset by increases in our Raytheon NGJ – Mid Band Pods.
Previous report
Total Revenue for the nine months ended September 30, 2024 was $59,311,356 compared to $62,963,592 for the same period last year, a decrease of $3,652,236 or 5.8%, driven primarily by decreases in our Sikorsky UH-60 BLACKHAWK Hover Infrared Suppression System (“HIRSS”) Module Assemblies program, Northrop Grumman E-2D Advanced Hawkeye OWP program and Lockheed Martin F-16 Rudder Island program, partly offset by increases in our Raytheon NGJ – Mid Band Pods program, and Collins MS-110 program.
Previous report
Revenue from military subcontracts was $16,986,106 for the three months ended September 30, 2024 compared to $15,375,337 for the three months ended September 30, 2023, an increase of $1,610,769 or 10.5%, driven primarily by increases in our Raytheon NGJ – Mid Band Pods program partly offset by decreases in our Lockheed Martin F-16 Rudder Island program.
Previous report
Revenue from military subcontracts was $48,951,748 for the nine months ended September 30, 2024 compared to $50,550,256 for the nine months ended September 30, 2023, a decrease of $1,598,508 or 3.2%, driven primarily by decreases in our Sikorsky UH-60 BLACKHAWK HIRSS Module Assemblies program partly offset by increases in our Raytheon NGJ – Mid Band Pods program.
Previous report
Revenue from government military contracts was $7,056,711 for the nine months ended September 30, 2024 compared to $8,062,682 for the nine months ended September 30, 2023, a decrease of $1,005,971 or 12.5%, driven primarily by decreases in our USAF T-38 Pacer Classic Structural Modification Kits program and DLA F-16 Wing Skins program.
Previous report
Revenue from commercial subcontracts was $3,302,897 for the nine months ended September 30, 2024 compared to $4,350,654 for the nine months ended September 30, 2023, a decrease of $1,047,757 or 24.1%, primarily on a decrease in our Embraer Phenom-300 Engine Inlet Assemblies program.
Previous report
Total Cost of Sales for the nine months ended September 30, 2024 and 2023 was $46,422,514 and $49,990,986, respectively, a decrease of $3,568,472 or 7%.
Previous report
Procurement for the three months ended September 30, 2024 was $9,219,097 compared to $10,815,261 for the three months ended September 30, 2023, a decrease of $1,596,164 or 14.8%, driven primarily by lower procurement for our USAF T-38 Pacer Classic Structural Modification Kits program due to push out of customer inductions of aircraft and Northrop Grumman E-2D Advanced Hawkeye OWP program.
Previous report
Procurement for the nine months ended September 30, 2024 was $28,702,158 compared to $31,774,115 for the nine months ended September 30, 2023, a decrease of $3,071,957 or 9.7%, driven primarily by lower procurement in our Sikorsky UH-60 BLACKHAWK HIRSS Module Assemblies program and USAF T-38 Pacer Classic Structural Modification Kits program partially offset by higher procurement in our Raytheon NGJ – Mid Band Pods program.
Previous report
Labor costs for the nine months ended September 30, 2024 were $5,460,235 compared to $5,302,436 for the nine months ended September 30, 2023, an increase of $157,799 or 3.0% primarily driven by an increase in work performed on the Lockheed Martin F-16 Rudder Island.
Previous report
Factory overhead for the nine months ended September 30, 2024 was $12,058,902 compared to $12,083,270 for the nine months ended September 30, 2023, a decrease of $24,368 or 0.2%.
Previous report
Other cost of sales for the nine months ended September 30, 2024 was $201,219 compared to $831,165 for the nine months ended September 30, 2023, a decrease in cost of $629,946 or 75.8%. The decrease is primarily the result of a lower required loss reserve and lower level of direct charges to cost of sales during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Previous report
Gross profit and gross profit percentage (“gross margin”) for the three months ended September 30, 2024 was $4,219,669 and 21.7%, respectively, compared to $3,706,090 and 18.2%, respectively, for the three months ended September 30, 2023, an increase of $513,579, or 13.9%, and 350 basis points, respectively, for the reasons noted above and a favorable year-over-year mix.
Previous report
Gross profit and gross profit percentage (“gross margin”) for the nine months ended September 30, 2024 was $12,888,842 and 21.7%, respectively, compared to $12,972,606 and 20.6%, respectively, for the nine months ended September 30, 2023, a decrease of $83,764, or 0.6%, and 110 basis points, respectively, for the reasons noted above.
Previous report
Selling, general and administrative expenses for the nine months ended September 30, 2024 were $8,231,875 compared to $8,210,603 for the nine months ended September 30, 2023, an increase of $21,272 or 0.3%.
Previous report
Interest expense for the nine months ended September 30, 2024 was $1,793,472, compared to $1,816,408 for the nine months ended September 30, 2023, a decrease of $22,936 or 1.3%.
Previous report
Income before provision for income taxes for the three months ended September 30, 2024 was $904,267 compared to $507,168 for the three months ended September 30, 2023, an increase of $397,099 or 78.3% for the reasons noted above.
Previous report
Income before provision for income taxes for the nine months ended September 30, 2024 was $2,863,495 compared to $2,945,595 for the nine months ended September 30, 2023, a decrease of $82,100 or 2.8% for the reasons noted above.
Previous report
Provision for Income Taxes
Previous report
Provision for income taxes for the three months ended September 30, 2024 was $154,590 compared to $205,804 for the three months ended September 30, 2023, a decrease of $51,214, or 24.9%. The decrease in the provision for income tax is primarily the result of the annualization of the September 30, 2023 tax rate.
Previous report
Provision for income taxes for the nine months ended September 30, 2024 was $535,634 compared to $503,850 for the nine months ended September 30, 2023, an increase of $31,784, or 6.3%. The increase in the provision for income tax is primarily the result of the reduced impact in the rate for the R&D benefit.
Previous report
Net income for the three months ended September 30, 2024 was $749,677 compared to $301,364 for the three months ended September 30, 2023, an increase of $448,313 or 148.8%% for the reasons noted above.
Previous report
Basic and diluted income per share for the three months ended September 30, 2024 of $0.06 compared to $0.02 for the three months ended September 30, 2023, an increase of $0.04, or 200%.
Previous report
Basic and diluted income per share for the three months ended September 30, 2024 was calculated using 12,647,023 and 12,717,128 weighted average basic and diluted shares outstanding, respectively, as compared to 12,759,971 and 12,793,133 weighted average basic and diluted shares outstanding, respectively, for the three months ended September 30, 2023.
Previous report
Net income for the nine months ended September 30, 2024 was $2,327,861 compared to $2,441,745 for the nine months ended September 30, 2023, a decrease of $113,884 or 4.7% for the reasons noted above.
Previous report
Basic income per share for the nine months ended September 30, 2024 of $0.19 was consistent with $0.19 for the nine months ended September 30, 2023. Diluted income per share for the nine months ended September 30, 2024 of $0.18 compared to $0.19 for the nine months ended September 30, 2023, a decrease of $0.01, or 5.3%.
Previous report
Basic and diluted income per share for the nine months ended September 30, 2024 was calculated using 12,559,876 and 12,650,340 weighted average basic and diluted shares outstanding, respectively, as compared to 12,613,899 and 12,647,061 weighted average basic and diluted shares outstanding, respectively, for the nine months ended September 30, 2023.
Previous report
At September 30, 2024, we had working capital of $16,312,228 compared to $15,402,381 at December 31, 2023, an increase of $909,847 or 5.9%. The increase was driven primarily by lower contract liabilities and higher accounts receivable, partly offset by lower cash and contract assets, lower inventory and lower prepaid expenses and other current assets.
Reworded paragraphs (21)
Previous wording
We are engaged in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in both the commercial and defense markets. We also have a strong and growing presence in the aerosystems sector of the market, with our production of various reconnaissance pod structures and fuel panel systems. Within the global aerostructure and aerosystem supply chain, we are either a Tier 1 supplier to aircraft original equipment manufacturers (“OEMs”) or a Tier 2 subcontractor to major Tier 1 manufacturers. We also are a prime contractor to the United States Department of Defense (“DOD”), primarily the United States Air Force (“USAF”). In conjunction with our assembly operations, we provide engineering, program management, supply chain management and kitting, and maintenance, repair and overhaul (“MRO”) services.
Current wording
We are engaged in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in both the commercial and defense markets. We also have a strong and growing presence in the aerosystems sector of the market, with our production of various reconnaissance pod structures and fuel panel systems. Within the global aerostructure and aerosystem supply chain, we are either a Tier 1 supplier to aircraft original equipment manufacturers (“OEMs”) or a Tier 2 subcontractor to major Tier 1 manufacturers. We also are a prime contractor to the United States Department of Defense (“DOD”), primarily the United States Air Force (“USAF”). In conjunction with our assembly operations, we provide engineering, program management, supply chain management and kitting, and MRO.
Previous wording
The total backlog at September 30, 2024 is primarily comprised of long-term programs with Raytheon (Next Generation Jammer-Mid Band Pods and Advanced Tactical Pods), Lockheed Martin (F-16 RI/DCC’s), Raytheon (B-52 Radar Racks), USAF (T-38 Classic Structural Modification Kits), Sikorsky (UH-60 BLACKHAWK Gunner Windows and CH-53K Welded Tubes), Raytheon (Airborne Reconnaissance Pods), Embraer (Phenom 300 Engine Inlets), and L3Harris (Next Generation Jammer-Low Band Pods (“NGJ-LB”) .
Current wording
The total backlog at March 31, 2025 is primarily comprised of long-term programs with Raytheon (Next Generation Jammer-Mid Band Pods and Advanced Tactical Pods), Lockheed Martin (F-16 RI/DCC’s), L3Harris (Next Generation Jammer-Low Band Pods), Raytheon (B-52 Radar Racks), Sikorsky (UH-60 BLACKHAWK Stabilator MRO) and USAF (T-38 Classic Structural Modification Kits).
Previous wording
The funded backlog at September 30, 2024 is primarily from purchase orders under long-term contracts with Raytheon (NGJ – Mid Band Pods and Advanced Tactical Pods), USAF (T-38 Classic Structural Modification Kits), Sikorsky (CH-53K Welded Tubes), Sikorsky (UH-60 BLACKHAWK Gunner Windows), Raytheon (Airborne Reconnaissance Pods), Boeing (A-10 Main Landing Gear Pods), Lockheed Martin (F-16 RI/DCC’s), Embraer (Phenom 300 Engine Inlets) and L3Harris (NGJ-Low Band Pods).
Current wording
The funded backlog at March 31, 2025 is primarily from purchase orders under long-term contracts with Raytheon (NGJ – Mid Band Pods and Advanced Tactical Pods), USAF (T-38 Classic Structural Modification Kits), L3Harris (Next Generation Jammer-Low Band Pods), Sikorsky (UH-60 BLACKHAWK Gunner Windows) and Lockheed Martin (F-16 RI/DCC’s).
Previous wording
Revenue from government military contracts was $1,673,483 for the three months ended September 30, 2024 compared to $3,943,723 for the three months ended September 30, 2023, a decrease of $2,270,240 or 57.6%, driven primarily by a decrease in our USAF T-38 Pacer Classic Structural Modification Kits program due to push out of customer inductions of aircraft.
Current wording
Revenue from government military contracts was $2,793,612 for the three months ended March 31, 2025 compared to $2,781,881 for the three months ended March 31, 2024, a decrease of $11,731 or 0.4%, driven primarily by a decrease in our USAF T-38 Pacer Classic Structural Modification Kits program due to timing of material receipts.
Previous wording
Revenue from commercial subcontracts was $760,290 for the three months ended September 30, 2024 compared to $1,080,309 for the three months ended September 30, 2023, a decrease of $320,019 or 29.6%, primarily on a decrease in our Embraer Phenom-300 Engine Inlet Assemblies program.
Current wording
Revenue from commercial subcontracts was $1,280,388 for the three months ended March 31, 2025 compared to $1,297,494 for the three months ended March 31, 2024, a decrease of $17,106 or 1.3%, driven primarily by a decrease in our Embraer Phenom-300 Engine Inlet Assemblies program.
Previous wording
Total Cost of Sales for the three months ended September 30, 2024 and 2023 was $15,200,210, and $16,693,279, respectively, a decrease of $1,493,069 or 9%.
Current wording
Total Cost of Sales for the three months ended March 31, 2025 and 2024 was $13,751,133 and $15,527,394, respectively, a decrease of $1,776,261 or 11.4%.
Previous wording
Labor costs for the three months ended September 30, 2024 were $1,861,505 compared to $1,580,290 for the three months ended September 30, 2023, an increase of $281,215 or 17.8% primarily driven by increases in work performed in the Boeing A-10 program, Sikorsky “CH-53K” Tube Assembly, and the Raytheon NGJ – Mid Band Pods program.
Current wording
Labor costs for the three months ended March 31, 2025 were $1,642,586 compared to $1,797,790 for the three months ended March 31, 2024, a decrease of $155,204 or 8.6% primarily driven by decrease in work performed in Embraer Phenom-300 Engine Inlet Assemblies program.
Previous wording
Factory overhead for the three months ended September 30, 2024 was $4,021,411 compared to $4,036,825 for the three months ended September 30, 2023, a decrease of $15,414 or 0.4%.
Current wording
Factory overhead for the three months ended March 31, 2025 was $4,118,581 compared to $4,267,095 for the three months ended March 31, 2024, a decrease of $148,514 or 3.5%.
Previous wording
Other cost of sales relates to items that can increase or decrease cost of sales such as changes in inventory reserves, changes in loss contract provisions, absorption variances and direct charges to cost of sales. Other cost of sales for the three months ended September 30, 2024 was $98,197 compared to a $260,903 for the three months ended September 30, 2023, a decrease of $162,706 or 62.4%. The decrease is primarily the result of lower loss reserve required during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023.
Current wording
Other cost of sales relates to items that can increase or decrease cost of sales such as changes in inventory reserves, changes in loss contract provisions, absorption variances and direct charges to cost of sales. Other cost of sales for the three months ended March 31, 2025 was $(304,622) compared to a $97,490 for the three months ended March 31, 2024, a decrease of $402,112 or 412.5%. The decrease is primarily the result benefits realized on programs nearing completion and lower loss reserve requirements during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.
Previous wording
During the nine months ended September 30, 2024 and 2023, circumstances required that we make changes in estimates to various contracts. Such changes in estimates resulted in changes in total gross profit as follows:
Current wording
During the three months ended March 31, 2025 and 2024, circumstances required that we make changes in estimates to various contracts. Such changes in estimates resulted in changes in total gross profit as follows:
Previous wording
Selling, general and administrative expenses for the three months ended September 30, 2024 were $2,742,036 compared to $2,535,065 for the three months ended September 30, 2023, an increase of $206,971 or 8.2%. The increase was primarily the result of higher personnel related expenses.
Current wording
Selling, general and administrative expenses for the three months ended March 31, 2025 were $2,835,777 compared to $2,713,904 for the three months ended March 31, 2024, an increase of $121,873 or 4.5%. The increase was primarily the result of higher accounting and professional fees.
Previous wording
Interest expense for the three months ended September 30, 2024 was $573,366, compared to $663,857 for the three months ended September 30, 2023, a decrease of $90,491 or 13.6%. The decrease was the result of lower year-over-year interest rates charged on our outstanding debt under the Credit Agreement, combined with a year-over-year decrease in the amount of our outstanding debt under the Credit Agreement.
Current wording
Interest expense for the three months ended March 31, 2025 was $488,091, compared to $632,135 for the three months ended March 31, 2024, a decrease of $144,044 or 22.8%. The decrease was the result of lower year-over-year interest rates charged on our outstanding debt under the Credit Agreement, combined with a year-over-year decrease in the amount of our outstanding debt under the Credit Agreement.
Previous wording
Income Before Provision for Income Taxes
Current wording
(Loss) income Before Provision for Income Taxes
Previous wording
The effective income tax rate for the three months ended September 30, 2024 is 17.1%. The difference between the effective income tax rate for the three months ended September 30, 2024 and the statutory income tax rate of 21% for the three months ended September 30, 2024 is primarily due to estimated R&D credit, state income taxes and permanent tax differences.
Current wording
The effective income tax rate for the three months ended March 31, 2025 is 20.9%. The difference between the effective income tax rate for the three months ended March 31, 2025, and the statutory income tax rate of 21% is primarily due to estimated R&D credit, state income taxes and permanent tax differences.
Previous wording
The effective income tax rate for the nine months ended September 30, 2024 is 18.7%. The difference between the effective income tax rate for the nine months ended September 30, 2024 and the statutory income tax rate of 21% for the nine months ended September 30, 2024 is primarily due to estimated R&D credit, state income taxes and permanent tax differences.
Current wording
The effective income tax rate for the three months ended March 31, 2024 is 19.0%. The difference between the effective income tax rate for the three months ended March 31, 2024, and the statutory income tax rate of 21% is primarily due to estimated R&D credit, state income taxes and permanent tax differences.
Previous wording
Net Income and Earnings per Share
Current wording
Net (Loss)/Income and Earnings per Share
Previous wording
At September 30, 2024, we had cash of $1,708,987 compared to $5,094,794 at December 31, 2023, a decrease of $3,385,807 or 66.5%. This decrease was primarily the result of cash flow used in operating activities and repayment of debt.
Current wording
At March 31, 2025, we had cash of $1,868,580 compared to $5,490,963 at December 31, 2024, a decrease of $3,622,383 or 65.9%. This decrease was primarily the result of cash flow used in operating activities and repayment of debt.
Previous wording
The Credit Agreement, as amended, requires us to maintain the following financial covenants: (a) minimum debt service coverage ratio of no less than 1.5 to 1.0 for trailing four fiscal quarter periods; (b) maximum leverage ratio of no less than 4.0 to 1.0 for trailing four fiscal quarter periods; (c) minimum net income after taxes as of the end of each fiscal quarter being no less than $1.00; and (d) a minimum adjusted EBITDA at the end of each fiscal quarter of no less than $1.0 million. The additional principal payments, increase in interest and the Amendment Fee provided for in the Eighth Amendment (entered into on October 28, 2021) and Ninth Amendment to the Credit Agreement (entered into on April 12, 2022) are excluded for purposes of calculating compliance with each of the financial covenants.
Current wording
The Credit Agreement, as amended, requires us to maintain the following financial covenants: (a) minimum debt service coverage ratio of no less than 1.5 to 1.0 for trailing four fiscal quarter periods; (b) maximum leverage ratio of no less than 4.0 to 1.0 for trailing four fiscal quarter periods; (c) minimum net income after taxes as of the end of each fiscal quarter being no less than $1.00; and (d) a minimum adjusted EBITDA at the end of each fiscal quarter of no less than $1.0 million. As of March 31, 2025, the Company was not in compliance with the financial covenants described in items (a), (c) and (d) above. The noncompliance constituted events of default under the Credit Agreement. On May 14, 2025, the Company obtained a written waiver from the Lenders waiving the specified covenant defaults for the fiscal quarter ended March 31, 2025. A copy of the waiver letter is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q. Although the waiver cured the defaults for the first quarter, failure to comply with the financial covenants in future periods could result in additional events of default, and unless further waivers or amendments are obtained, of which there is no assurance of obtaining such waivers in the future could permit the lenders to accelerate the Company’s outstanding obligations under the Credit Agreement and exercise other remedies available under the loan documents. The Company continues to monitor its financial performance and covenant compliance and may seek further waivers or amendments if necessary.
Previous wording
The BankUnited Facility is secured by all of the Company’s assets. Prior to the Fourteenth Amendment the Revolving Loan bore interest at the Prime Rate + 3.50%. The Prime Rate was 8.0% as of September 30, 2024 and as such, the Company’s interest rate on the Revolving Loan was 11.5% as of September 30, 2024.
Current wording
The BankUnited Facility is secured by all of the Company’s assets and both the Revolving Loan and Term Loan bear interest at the Prime Rate + 2.0% per the 14th Amendment effective on November 13, 2024. The Prime Rate was 7.50% as of March 31, 2025 and as such, the Company’s interest rate on the Revolving Loan and Term Loan was 9.50% as of March 31, 2025.
Previous wording
As of September 30, 2024 and December 31, 2023, the Company had $18,120,000 and $20,040,000 outstanding under the Revolving Loan, respectively.
Current wording
As of March 31, 2025 and December 31, 2024, the Company had $16,640,000 and $17,390,000 outstanding under the Revolving Loan, respectively.
Previous wording
Inflation historically has not had a material effect on our operations, although the current inflationary environment in the U.S., and its impact on interest rates, the supply chain, the labor market and general economic conditions, are factors that the Company actively monitors in an attempt to mitigate and manage potential negative impacts on and risks faced by the Company. The majority of the Company’s long term contracts with its customers reflect fixed pricing and its long term contracts with its suppliers reflect fixed pricing. When bidding for work, the Company takes inflation risk and supply side pricing risk into account in its proposals.
Current wording
Inflation historically has not had a material effect on our operations, although the current inflationary environment in the U.S., and its impact on interest rates, supply chain, labor markets and general economic conditions, are factors that the Company actively monitors in an attempt to mitigate and manage potential negative impacts on and risks faced by the Company. The majority of the Company’s long term contracts with its customers and suppliers reflect fixed pricing. When bidding for work, the Company takes inflation risk and supply side pricing risk into account in its proposals.