CPI AEROSTRUCTURES INC
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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.
Jun 30, 2026 · Filed Aug 13, 2026
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 2026-03-31; filed 2026-05-15.
0001999371-26-010877
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001999371-26-017859
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 74 previous paragraphs and 90 current paragraphs.
36 unchanged; 31 reworded; 21 added; 7 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 6 previous and 7 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 (21)
Current report
Total Revenue for the three months ended June 30, 2026 was $17,581,532 compared to $15,179,108 for the same period last year, an increase of $2,402,424 or 15.8%, driven by our RTX MPBD Missile Wing program, our NGJ – Mid Band Pods and Advanced Tactical Pods program and our NGJ – Low Band Pods program, partially offset by our Sikorsky MH-60 Seahawk Stabilator MRO program, and our Sikorsky Hover Infrared Reduction System (HIRRS) program.
Current report
Revenue from military subcontracts for the three months ended June 30, 2026 was $15,340,158 compared to $12,266,475 for the three months ended June 30, 2025, an increase of $3,073,683 or 25.1%, driven primarily by our RTX MPBD Missile Wing program, our NGJ – Mid Band Pods and Advanced Tactical Pods program and NGJ – Low Band Pods program.
Current report
Revenue from military subcontracts for the six months ended June 30, 2026 was $30,019,135 compared to $23,593,083 for the six months ended June 30, 2025, an increase of $6,426,052 or 27.2%, driven primarily by our NGJ – Mid Band Pods and Advanced Tactical Pods program and NGJ – Low Band Pods program partially offset by to our F-16 RI/DCC’s program.
Current report
Revenue from prime government military contracts for the six months ended June 30, 2026 was $2,480,423 compared to $4,128,970 for the six months ended June 30, 2025, a decrease of $1,648,547 or 39.9%, driven primarily by a decrease in our USAF T-38 Pacer Classic Structural Modification Kits program due to timing of material receipts.
Current report
Total Cost of Sales for the six months ended June 30, 2026 and 2025 was $26,589,844 and $28,266,859, respectively, a decrease of $1,677,015 or 5.9%.
Current report
Procurement for the three months ended June 30, 2026 was $8,787,126 compared to $8,860,302 for the three months ended June 30, 2025, a decrease of $73,176 or 0.8%, remaining consistent.
Current report
Labor costs for the three months ended June 30, 2026 were $1,467,673 compared to $1,504,475 for the three months ended June 30, 2025, a decrease of $36,802 or 2.4%, remaining consistent.
Current report
Factory overhead for the six months ended June 30, 2026 was $7,539,754 compared to $8,070,931 for the six months ended June 30, 2025, a decrease of $531,177 or 6.6%.
Current report
Other cost of sales for the six months ended June 30, 2026 was $(30,575) compared to $(106,023) for the six months ended June 30, 2025, an increase in cost of $75,448 or 71.2%. The increase is primarily due to benefits realized in prior year on programs nearing completion.
Current report
Gross profit and gross profit percentage for the six months ended June 30, 2026 was $8,351,628 and 23.9%, respectively, compared to $2,312,857 and 7.6%, respectively, for the six months ended June 30, 2025, an increase of $6,038,771 or 261.1%, and 1,634 basis points.
Current report
The increase in gross margin for the three and six months ended June 30, 2026 compared to June 30, 2025 was primarily driven byadjustments made in the prior year associated with the termination of our A-10 Main Landing Gear Pods program.
Current report
The net adjustment of $4.0 million for the three months ended June 30, 2025 is driven primarily by an unfavorable adjustment of $2.3 million associated with the termination of our A-10 program. Additional net unfavorable adjustments of $1.7 million were driven primarily by the NGJ Mid-Band Pod and the T-38 Classic Structural Modification Kits program were due to increased labor and material costs.
Current report
The net adjustment of $7.1 million for the six months ended June 30, 2025 is driven primarily by an unfavorable adjustment of $4.5 million associated with the termination of our A-10 program. Additional net unfavorable adjustments of $2.6 million were driven primarily by the NGJ Mid-Band Pod and the T-38 Classic Structural Modification Kits program were due to increased labor and material costs.
Current report
Selling, general and administrative expenses for the three months ended June 30, 2026 were $2,675,952 compared to $2,654,024 for the three months ended June 30, 2025, an increase of $21,928 or 0.8%. The increase was primarily the result of higher professional fees and accrued compensation, partially offset by lower salaries.
Current report
Selling, general and administrative expenses for the six months ended June 30, 2026 were $5,326,215 compared to $5,489,801 for the six months ended June 30, 2025, a decrease of $163,586 or 3.0%. The decrease was primarily due to lower Board of Director and accounting fees partially offset by increased professional fees and increased contract labor.
Current report
Interest expense for the three months ended June 30, 2026 was $312,939, compared to $287,546 for the three months ended June 30, 2025, an increase of $25,393 or 8.8%.
Current report
Income (loss) before provision for income taxes for the three months ended June 30, 2026 was $882,846 compared to $(2,272,708) for the three months ended June 30, 2025 an increase of $3,155,554.
Current report
Income (loss) before provision for income taxes for the six months ended June 30, 2026 was $2,450,912 compared to $(3,945,601) for the six months ended June 30, 2025 an increase of $6,396,513.
Current report
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
At June 30, 2026, we had cash of $835,875 compared to $899,199 at December 31, 2025, a decrease of $63,324 or 7.0%. This decrease was primarily the result of cash flow used in operating activities and net impacts of financing activities.
Current report
Our Credit Facilities consisted of the following as of:
Removed paragraphs (7)
Previous report
Forward Looking Statements
Previous report
Revenue from military subcontracts was $14,678,977 for the three months ended March 31, 2026 compared to $11,326,608 for the three months ended March 31, 2025, an increase of $3,352,369 or 29.6%. The increase was driven primarily by favorable adjustments on our NGJ – Mid Band Pods and Advanced Tactical Pods program and NGJ – Low Band Pods program.
Previous report
Selling, general and administrative expenses for the three months ended March 31, 2026 were $2,650,263 compared to $2,835,777 for the three months ended March 31, 2025, a decrease of $185,514 or 6.5%. The decrease was primarily thedue to lower salary related costs.
Previous report
Income (loss) before provision for income taxes for the three months ended March 31, 2026 was $1,568,066 compared to $(1,672,893) for the three months ended March 31, 2025, an increase of $3,240,959 or 193.7% for the reasons noted above.
Previous report
At March 31, 2026, we had cash of $1,002,548 compared to $899,199 at December 31, 2025, an increase of $103,349 or 11.5%. This increase was primarily the result of positive cash flows from the reduction in accounts receivable during the quarter.
Previous report
Shelf Registration Statement and At-the-Market Offering Program
Previous report
On March 31, 2026, the Company filed a shelf registration statement on Form S-3 registering the potential offer and sale from time to time of up to $30 million of the Company’s securities. In connection with the shelf registration statement, the Company also entered into an At Market Issuance Sales Agreement with Craig-Hallum Capital Group LLC relating to an at-the-market offering program pursuant to which the Company may offer and sell shares of its common stock having an aggregate offering price of up to approximately $17 million from time to time, subject to market conditions and the Company’s capital needs. The registration statement was declared effective by the SEC on April 14, 2026.
Reworded paragraphs (31)
Previous wording
This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this Form 10-Q and in future filings by us with the Securities and Exchange Commission (“SEC”), the words or phrases “believe”, “expect,” “anticipate,” “intend”, “plan”, “may,” “will”, “should,” “could”, “estimate,” or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. There can be no assurance that future developments will be those that have been anticipated. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Further, such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The risks are included in Part I, Item 1A – Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”).
Current wording
Forward Looking StatementsThis Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this Form 10-Q and in future filings by us with the Securities and Exchange Commission (“SEC”), the words or phrases “believe”, “expect,” “anticipate,” “intend”, “plan”, “may,” “will”, “should,” “could”, “estimate,” or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. There can be no assurance that future developments will be those that have been anticipated. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Further, such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The risks are included in Part I, Item 1A – Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”).
Previous wording
We are engaged in the contract production of structural aircraft assemblies for fixed wing aircraft and helicopters in both the commercial and defense markets. We also participate in the aerosystems sector through our production of reconnaissance pod structures and fuel panel systems. Within the global aerostructures and aerosystems supply chain, we are either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. We also are a prime contractor to the U.S. DOD, primarily the USAF. In conjunction with our assembly operations, we provide engineering, program management, supply chain management and kitting, and MRO services.
Current wording
We are engaged in the contract production of structural aircraft assemblies for fixed wing aircraft and helicopters in both the commercial and defense markets. We also participate in the aerosystems sector through our production of reconnaissance pod structures and fuel panel systems. Within the global aerostructures and aerosystems supply chain, we are either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. We also are a prime contractor to the U.S. Department of Defense, primarily the United States Airforce “USAF”. In conjunction with our assembly operations, we provide engineering, program management, supply chain management and kitting, and MRO services.
Previous wording
We produce custom assemblies pursuant to long-term contracts and customer purchase orders. Funded backlog consists of the aggregate funded value of remaining performance obligations under such contracts and purchase orders, excluding the portion previously included in operating revenues pursuant to Accounting Standards Codification Topic 606 (“ASC 606”). Unfunded backlog is the estimated amount of future orders under the expected duration of the program. Substantially all of our unfunded backlog is subject to termination at will and rescheduling, without significant penalty. Funds are often appropriated for programs or contracts on a yearly or quarterly basis, even though the contract may call for performance that is expected to take a number of years. Therefore, our funded backlog does not include the full value of our contracts.
Current wording
We produce custom assemblies pursuant to long-term contracts and customer purchase orders. Funded backlog consists of aggregate funded values under such contracts and purchase orders, excluding the portion previously included in operating revenues pursuant to Accounting Standards Codification Topic 606 (“ASC 606”). Unfunded backlog is the estimated amount of future orders under the expected duration of the programs. Substantially all of our backlog is subject to termination at will and rescheduling, without significant penalty. Funds are often appropriated for programs or contracts on a yearly or quarterly basis, even though the contract may call for performance that is expected to take a number of years. Therefore, our funded backlog does not include the full value of our contracts.
Previous wording
Approximately 96% of the total amount of our backlog at March 31, 2026 was attributable to government and military contractor contracts. Our backlog attributable to government contracts at March 31, 2026 and December 31, 2025 was as follows:
Current wording
Approximately 95% of the total amount of our backlog at June 30, 2026 was attributable to government and military contractor contracts. Our backlog attributable to government contracts at June 30, 2026 and December 31, 2025 was as follows:
Previous wording
The total backlog at March 31, 2026 is primarily comprised of long-term programs with Raytheon (Next Generation Jammer-Mid Band Pods and Advanced Tactical Pods), L3Harris (Next Generation Jammer-Low Band Pods), Lockheed Martin (F-16 RI/DCC’s), Raytheon (B-52 Radar Racks), Sikorsky (UH-60 BLACKHAWK Stabilator MRO) and USAF (T-38 Classic Structural Modification Kits).
Current wording
The total backlog at June 30, 2026 is primarily comprised of long-term programs with Raytheon (NGJ-Mid Band Pods and Advanced Tactical Pods), L3Harris (NGJ-Low Band Pods), Raytheon (B-52 Radar Racks) Lockheed Martin (F-16 RI/DCC’s), Sikorsky (MH-60 Seahawk Stabilator MRO) and Sikorsky (CH-53K Welded Tubes).
Previous wording
The funded backlog at March 31, 2026 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), and Lockheed Martin (F-16 RI/DCC’s).
Current wording
The funded backlog at June 30, 2026 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), and L3Harris (NGJ-Low Band Pods).
Previous wording
Total Revenue for the three months ended March 31, 2026 was $17,359,940 compared to $15,400,608 for the same period last year, an increase of $1,959,332 or 12.7%. The increase was driven primarily by favorable adjustments on our NGJ – Mid Band Pods and Advanced Tactical Pods program and NGJ – Low Band Pods program, partially offset by unfavorable adjustments to our F-16 RI/DCC’s program and Embraer Phenom-300 Engine Inlet Assemblies program.
Current wording
Total Revenue for the six months ended June 30, 2026 was $34,941,472 compared to $30,579,716 for the same period last year, an increase of $4,361,756 or 14.3%, driven by our NGJ – Mid Band Pods and Advanced Tactical Pods program and NGJ – Low Band Pods program, partially offset by our USAF T-38 Pacer Classic Structural Modification Kits programand Embraer Phenom-300 Engine Inlet Assemblies program.
Previous wording
Revenue from prime government military contracts was $1,764,056 for the three months ended March 31, 2025 compared to $2,793,612 for the three months ended March 31, 2025, a decrease of $1,029,556 or 36.9%. The decrease was driven primarily by a decrease in our USAF T-38 Pacer Classic Structural Modification Kits program due to timing of material receipts.
Current wording
Revenue from prime government military contracts for the three months ended June 30, 2026 was $716,367 compared to $1,335,358 for the three months ended June 30, 2025, a decrease of $618,991 or 46.4%, 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 $916,907 for the three months ended March 31, 2026 compared to $1,280,388 for the three months ended March 31, 2025, a decrease of $363,481 or 28.4%. The decrease was driven primarily by a decrease in our Embraer Phenom-300 Engine Inlet Assemblies program, partially offset by thecommencement of production on our Embraer Phenom-100 Engine Inlet Assemblies and Collins Compac Enclosures programs.
Current wording
Revenue from commercial subcontracts for the three months ended June 30, 2026 was $1,525,007 compared to $1,577,275 for the three months ended June 30, 2025, a decrease of $52,268 or 3.3%, driven primarily by a decrease in our Embraer Phenom-300 Engine Inlet Assemblies program, partially offset by thecommencement of production on our Embraer Phenom-100 Engine Inlet Assemblies and Collins Compac Enclosures programs
Previous wording
Total Cost of Sales for the three months ended March 31, 2026 and 2025 was $12,880,049 and $13,751,133, respectively, a decrease of $871,084 or 6.3%.
Current wording
Total Cost of Sales for the three months ended June 30, 2026 and 2025 was $13,709,795 and $14,515,726, respectively, a decrease of $805,931 or 5.6%.
Previous wording
Procurement for the three months ended March 31, 2026 was $7,509,709 compared to $8,294,588 for the three months ended March 31, 2025, a decrease of $784,879 or 9.5%, driven primarily by lower material receipts for Embraer Phenom-300 Engine Inlet Assemblies program and the Collins MS-110 program.
Current wording
Procurement for the six months ended June 30, 2026 was $16,296,835 compared to $17,154,890 for the six months ended June 30, 2025, a decrease of $858,055 or 5.0%, driven primarily by lower material receipts for Embraer Phenom-300 Engine Inlet Assemblies program and the Collins MS-110 program.
Previous wording
Labor costs for the three months ended March 31, 2026 were $1,316,157 compared to $1,642,586 for the three months ended March 31, 2025, a decrease of $326,429 or 19.9% primarily driven by decreased work performed on the A-10 Main Landing Gear Pods program due to termination.
Current wording
Labor costs for the six months ended June 30, 2026 were $2,783,830 compared to $3,147,061 for the six months ended June 30, 2025, a decrease of $363,231 or 11.5% primarily driven by decreased work performed on the A-10 Main Landing Gear Pods program due to termination.
Previous wording
Factory overhead for the three months ended March 31, 2026 was $3,937,186 compared to $4,118,581 for the three months ended March 31, 2025, a decrease of $181,395 or 4.4%.
Current wording
Factory overhead for the three months ended June 30, 2026 was $3,602,568 compared to $3,952,350 for the three months ended June 30, 2025, a decrease of $349,782 or 8.8%.
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 March 31, 2026 was $116,997 compared to a $(304,622) for the three months ended March 31, 2025, an increase of $421,619 or 138.4%. The increase is primarily the result less benefits realized on programs nearing completion and higher loss reserve requirements during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
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 June 30, 2026 was $(147,572) compared to a $198,599 for the three months ended June 30, 2025, a decrease of $346,171 or 174.3%. The decrease is primarily the result of increased inventory reserve requirements in the prior year due to aged material compared to the current period.
Previous wording
Gross profit and gross profit percentage (“gross margin”) for the three months ended March 31, 2026 and March 31, 2025 was $4,479,891 and 25.8% compared to $1,649,475 and 10.7%, respectively, an increase of $2,830,416, or 171.6%, for the reasons noted above associated with the A-10 program.
Current wording
Gross profit and gross profit percentage (“gross margin”) for the three months ended June 30, 2026 and June 30, 2025 was $3,871,737 and 22.0% compared to $663,382 and 4.4% respectively, an increase of $3,208,355, or 483.6%, and 1,760 basis points.
Previous 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:
Current wording
During the three and six months ended June 30, 2026 and 2025, 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
The net adjustment of $0.7 million for the three months ended March 31, 2026 is driven primarily by an unfavorable adjustment on our Embraer Phenom-300 Engine Inlet Assemblies program.
Current wording
The net adjustment of $0.7 million and $1.4 million for the three and six months ended June 30, 2026 respectively, is driven primarily by unfavorable adjustments on our Embraer Phenom-300 Engine Inlet Assemblies program and Sikorsky UH60 Gunner Windows.
Previous wording
Interest expense for the three months ended March 31, 2026 was $291,935, compared to $488,091 for the three months ended March 31, 2025, a decrease of $196,156 or 40.2%. The decrease was the result of lower year-over-year interest rates charged on our outstanding debt under the Loan and Security Agreement.
Current wording
Interest expense for the six months ended June 30, 2026 was $604,874, compared to $775,637 for the six months ended June 30, 2025, a decrease of $170,763 or 22.0%. The decrease was the result of lower year-over-year interest rates charged on our outstanding debt under the Loan and Security Agreement.
Previous wording
The effective income tax rate for the three months ended March 31, 2026 and 2025 approximated the statutory rate of approximately 21%.
Current wording
Provision for income taxes for the three months ended June 30, 2026 was $197,231 compared to (benefit) for income taxes of $(947,749) for the three months ended June 30, 2025, an increase of $1,144,980 is primarily related to the increase in income. The effective income tax rate for the three months ended June 30, 2026 and 2025 was 22.3% and (44.7%), respectively.
Previous wording
Provision for income taxes for the three months ended March 31, 2026 was $331,348 compared to (benefit) for income taxes of $(348,969) for the three months ended March 31, 2025, an increase of $680,317 or 195.0%.
Current wording
Provision for income taxes for the six months ended June 30, 2026 was $528,579 compared to (benefit) for income taxes of $(1,296,718) for the six months ended June 30, 2025, an increase of $1,825,297. The effective income tax rate for the six months ended June 30, 2026 and 2025 was 21.6% and (34.2%), respectively.
Previous wording
Net income (loss) for the three months ended March 31, 2026 was $1,236,718 or $0.10 per basic share, compared to net loss of $(1,323,924) or $(0.10) per basic share, for the same period last year. Diluted income per share was $0.09 for the three months ended March 31, 2026 calculated utilizing 13,040,998 weighted average shares outstanding. Diluted (loss) per share was $(0.10) for the three months ended March 31, 2025 calculated utilizing 12,720,148 weighted average shares outstanding. The increase in net income was primarily driven by an increase in gross profit.
Current wording
Net income for the three months ended June 30, 2026 was $685,615 or $0.05 per basic share, compared to net (loss) of $(1,324,959) or $(0.10) per basic share, for the same period last year. Diluted income per share was $0.05 for the three months ended June 30, 2026 calculated utilizing 13,042,595 weighted average shares outstanding. Diluted (loss) per share was $(0.10) for the three months ended June 30, 2025 calculated utilizing 12,748,869 weighted average shares outstanding. The increase in net income was primarily driven by an increase in gross profit.
Previous wording
At March 31, 2026, we had working capital of $22,725,875 compared to $20,388,755 at December 31, 2025, an increase of $2,337,120 or 11.5%. The increase was driven primarily by an increase in cash and contract assets partly offset by a decrease in accounts receivable.
Current wording
At June 30, 2026, we had working capital of $23,488,549 compared to $20,388,755 at December 31, 2025, an increase of $3,099,794 or 15.2%. The increase was driven primarily by an increase in accounts receivable.
Previous wording
A large portion of our cash is used to pay for materials and processing costs associated with contracts that are in process and which do not provide for progress payments. Costs for which we are not able to bill on a progress basis are made up of contract assets on our consolidated balance sheet and represent the aggregate costs and related earnings for uncompleted contracts for which the customer has not yet been billed. These costs and earnings are recovered upon shipment of products and presentation of billings in accordance with contract terms.
Current wording
A large portion of our cash flow is used to pay for materials and processing costs associated with contracts that are in process and which do not provide for progress payments. Costs and related earnings for which we do not bill on a progress basis, and which, as a result, we bill upon shipment of products, are components of contract assets on our consolidated balance sheets and represent the aggregate costs and related earnings for uncompleted contracts for which the customer has not yet been billed. These costs and earnings are recovered upon shipment of products and presentation of billings in accordance with contract terms.
Previous wording
Because ASC 606 requires us to use estimates in determining revenues, costs and profits and in assigning those amounts to accounting periods, there can be a significant disparity between earnings as reported and the actual cash we receive during any reporting period. Accordingly, it is possible that we experience shortfalls in our cash flow and may need to borrow money or take steps to delay certain cash outflows until the reported earnings materialize into actual cash receipts.
Current wording
Because ASC 606 requires us to use estimates in determining revenue, costs and profits and in assigning the amounts to accounting periods, there can be a significant disparity between earnings (both for accounting and tax purposes) as reported and actual cash that we receive during any reporting period. Accordingly, it is possible that we may have a shortfall in our cash flow and may need to borrow money or take steps to defer cash outflows until the reported earnings materialize into actual cash receipts.
Previous wording
Several of our programs require us to expend up-front costs that may have to be amortized over a portion of production units. In the case of significant program delays and/or program cancellations, we could experience margin degradation, which may be material for costs that are not recoverable. Such charges and the loss of up-front costs could have a material impact on our liquidity and results of operations.
Current wording
Some of our programs require us to expend up-front costs that may have to be amortized over a portion of production units. In the case of significant program delays and/or program cancellations, we could experience margin degradation, which may be material for costs that are not recoverable. Such charges and the loss of up-front costs could have a material impact on our liquidity and results of operations.
Previous wording
We continue to work to obtain better payment terms with our customers, including accelerated progress payment arrangements, as well as exploring alternative funding sources.
Current wording
We continuously work to improve our payment terms from our customers, including accelerated progress payment arrangements, as well as exploring alternate funding sources.
Previous wording
The Credit Facilities mature on December 12, 2030. The Term Loan was funded in full on the closing date and is repayable in scheduled quarterly installments beginning on April 5, 2026. Maturities on long term debt are as follows:
Current wording
The Credit Facilities mature on December 12, 2030. The Term Loan was funded in full on the closing date and is repayable in scheduled quarterly installments beginning on April 5, 2026. As of June 30, 2026, the aggregate future principal payments on long term debt are as follows:
Previous wording
As of March 31, 2026 and December 31, 2025, the Company had $19,173,672 and $18,373,672 outstanding under the Loan and Security Agreement, respectively.
Current wording
As of June 30, 2026 and December 31, 2025, the Company had $19,111,172 and $18,373,672 outstanding under the Loan and Security Agreement, respectively.
Previous wording
We believe that our existing liquidity resources as of March 31, 2026 will be sufficient to meet our current working capital needs for at least the next 12 months from the date of issuance of our consolidated financial statements. However, our working capital requirements can vary significantly, depending in part on the timing of new program awards and the payment terms with our customers and suppliers. To the extent additional liquidity is required, we may utilize our cash balances, availability for borrowings under our credit facilities and other potential sources of liquidity, including our existing shelf registration statement and at-the-market offering program, although such additional liquidity may not be available on satisfactory terms and in adequate amounts, if at all.
Current wording
We believe that our existing resources as of June 30, 2026 will be sufficient to meet our current working capital needs for at least the next 12 months from the date of issuance of our consolidated financial statements. However, our working capital requirements can vary significantly, depending in part on the timing of new program awards and the payment terms with our customers and suppliers. If our working capital needs exceed our cash flows from operations, we would look to our cash balances and availability for borrowings under our borrowing arrangement to satisfy those needs, as well as potential sources of additional capital, which may not be available on satisfactory terms and in adequate amounts, if at all.
Previous wording
For information concerning our contractual obligations, seeContractual Obligations under Item 7 of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Form 10-K.
Current wording
For information concerning our contractual obligations, seeContractual Obligations under Item 7 of Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Form 10-K.
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, supply chain, labor markets and general economic conditions, are factors that the Company actively monitors in an effort to mitigate and manage potential negative impacts 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.
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.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Revenue from commercial subcontracts for the six months ended June 30, 2026 was $2,441,914 compared to $2,857,663 for the six months ended June 30, 2025, a decrease of $415,749 or 14.5%, primarily driven by a decrease in our Embraer Phenom-300 Engine Inlet Assemblies program, partially offset by thecommencement of production on our Embraer Phenom-100 Engine Inlet Assemblies and Collins Compac Enclosures programs
Current report — wording carried from elsewhere
Net income for the six months ended June 30, 2026 was $1,922,333 or $0.15 per basic share, compared to net (loss) of $(2,648,883) or $(0.21) per basic share, for the same period last year. Diluted income per share was $0.15 for the six months ended June 30, 2026 calculated utilizing 13,056,924 weighted average shares outstanding. Diluted (loss) per share was $(0.21) for the six months ended June 30, 2025 calculated utilizing 12,728,209 weighted average shares outstanding. The increase in net income was primarily driven by an increase in gross profit.