Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-11398 | |
Entity Registrant Name | CPI AEROSTRUCTURES, INC. | |
Entity Central Index Key | 0000889348 | |
Entity Tax Identification Number | 11-2520310 | |
Entity Incorporation, State or Country Code | NY | |
Entity Address, Address Line One | 91 Heartland Blvd. | |
Entity Address, City or Town | Edgewood | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11717 | |
City Area Code | (631) | |
Local Phone Number | 586-5200 | |
Title of 12(b) Security | Common stock, $0.001 par value per share | |
Trading Symbol | CVU | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,856,575 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash | $ 3,018,068 | $ 5,094,794 |
Accounts receivable, net | 4,982,137 | 4,352,196 |
Contract assets, net | 34,016,949 | 35,312,068 |
Inventory | 1,281,219 | 1,436,647 |
Refundable income taxes | 40,000 | 40,000 |
Prepaid expenses and other current assets | 532,458 | 678,026 |
Total Current Assets | 43,870,831 | 46,913,731 |
Operating lease right-of-use assets | 4,277,724 | 4,740,193 |
Property and equipment, net | 741,264 | 794,056 |
Deferred tax asset | 19,906,903 | 19,938,124 |
Goodwill | 1,784,254 | 1,784,254 |
Other assets | 174,530 | 189,774 |
Total Assets | 70,755,506 | 74,360,132 |
Current Liabilities: | ||
Accounts payable | 11,864,561 | 10,487,012 |
Accrued expenses | 7,943,246 | 10,275,695 |
Contract liabilities | 4,497,225 | 5,937,629 |
Loss reserve | 133,206 | 337,351 |
Current portion of line of credit | 2,160,000 | 2,400,000 |
Current portion of long-term debt | 30,010 | 44,498 |
Operating lease liabilities, current | 2,037,547 | 1,999,058 |
Income taxes payable | 38,358 | 30,107 |
Total Current Liabilities | 28,704,153 | 31,511,350 |
Line of credit, net of current portion | 16,920,000 | 17,640,000 |
Long-term operating lease liabilities | 2,581,128 | 3,100,571 |
Long-term debt, net of current portion | 18,736 | 26,483 |
Total Liabilities | 48,224,017 | 52,278,404 |
Shareholders’ Equity: | ||
Common stock - $.001 par value; authorized 50,000,000 shares, 12,784,768 and 12,771,434 shares, respectively, issued and outstanding | 12,784 | 12,771 |
Additional paid-in capital | 74,154,189 | 73,872,679 |
Accumulated deficit | (51,635,484) | (51,803,722) |
Total Shareholders’ Equity | 22,531,489 | 22,081,728 |
Total Liabilities and Shareholders’ Equity | $ 70,755,506 | $ 74,360,132 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 12,784,768 | 12,771,434 |
Common stock, outstanding | 12,784,768 | 12,771,434 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 19,081,143 | $ 22,016,668 |
Cost of sales | 15,527,394 | 17,354,152 |
Gross profit | 3,553,749 | 4,662,516 |
Selling, general and administrative expenses | 2,713,904 | 2,869,058 |
Income from operations | 839,845 | 1,793,458 |
Interest expense | (632,135) | (610,896) |
Income before provision for income taxes | 207,710 | 1,182,562 |
Provision for income taxes | 39,472 | 199,257 |
Net income | $ 168,238 | $ 983,305 |
Income per common share, basic | $ 0.01 | $ 0.08 |
Income per common share, diluted | $ 0.01 | $ 0.08 |
Shares used in computing income per common share: | ||
Basic | 12,486,889 | 12,520,299 |
Diluted | 12,680,584 | 12,608,189 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2022 | $ 12,507 | $ 73,189,449 | $ (69,004,926) | $ 4,197,030 |
Beginning balance (in shares) at Dec. 31, 2022 | 12,506,795 | |||
Net income | 983,305 | 983,305 | ||
Issuance of common stock upon settlement of restricted stock, net | $ 19 | 19 | ||
Issuance of common stock upon settlement of restricted stock, net (in shares) | 19,247 | |||
Stock-based compensation expense | 338,904 | 338,904 | ||
Ending balance, value at Mar. 31, 2023 | $ 12,526 | 73,528,353 | (68,021,621) | 5,519,258 |
Ending balance (in shares) at Mar. 31, 2023 | 12,526,042 | |||
Beginning balance, value at Dec. 31, 2023 | $ 12,771 | 73,872,679 | (51,803,722) | $ 22,081,728 |
Beginning balance (in shares) at Dec. 31, 2023 | 12,771,434 | 12,771,434 | ||
Net income | 168,238 | $ 168,238 | ||
Issuance of common stock upon settlement of restricted stock, net | $ 13 | 13 | ||
Issuance of common stock upon settlement of restricted stock, net (in shares) | 13,334 | |||
Stock-based compensation expense | 281,510 | 281,510 | ||
Ending balance, value at Mar. 31, 2024 | $ 12,784 | $ 74,154,189 | $ (51,635,484) | $ 22,531,489 |
Ending balance (in shares) at Mar. 31, 2024 | 12,784,768 | 12,784,768 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 168,238 | $ 983,305 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 99,567 | 116,545 |
Amortization of debt issuance cost | 15,244 | 65,835 |
Stock-based compensation | 281,523 | 338,923 |
Deferred income taxes | 31,221 | 199,993 |
Bad debt expense | 148,084 | |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (778,025) | (626,143) |
Decrease (increase) in contract assets | 1,295,119 | (2,978,411) |
Decrease in inventory | 155,428 | 158,502 |
Decrease in prepaid expenses and other assets | 145,568 | 6,714 |
Decrease in operating lease right-of-use assets | 462,469 | 455,469 |
(Decrease) increase in accounts payable and accrued expenses | (867,723) | 1,217,630 |
(Decrease) increase in contract liabilities | (1,440,404) | 1,492,095 |
Decrease in lease liabilities | (480,954) | (425,234) |
Decrease in loss reserve | (204,145) | (112,505) |
Increase in income taxes payable | 8,251 | |
Net cash (used in) provided by operating activities | (960,539) | 892,718 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (46,775) | (43,525) |
Net cash used in investing activities | (46,775) | (43,525) |
Cash flows from financing activities: | ||
Principal payments on line of credit | (960,000) | |
Principal payments on long-term debt | (22,235) | (644,160) |
Repayments of insurance financing obligation | (87,177) | |
Debt issuance costs paid | (54,334) | |
Net cash used in financing activities | (1,069,412) | (698,494) |
Net (decrease) increase in cash | (2,076,726) | 150,699 |
Cash at beginning of period | 5,094,794 | 3,847,225 |
Cash at end of period | 3,018,068 | 3,997,924 |
Cash paid during the period for: | ||
Interest | 622,371 | 651,984 |
Income taxes |
INTERIM FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
INTERIM FINANCIAL STATEMENTS | 1. INTERIM FINANCIAL STATEMENTS Basis of Presentation The Company consists of CPI Aerostructures, Inc. (“CPI Aero”), Welding Metallurgy, Inc. (“WMI”), a wholly owned subsidiary of CPI Aero, and Compac Development Corporation, a wholly owned subsidiary of WMI (collectively, the “Company”, “we”, “us”, or “our”). The condensed consolidated interim financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations. The consolidated balance sheet at December 31, 2023 has been derived from audited consolidated financial statements, but does not include all of the information and notes required by U.S. GAAP. The Company believes that the disclosures are adequate to make the information presented not misleading. All adjustments that, in the opinion of the management, are necessary for a fair presentation for the periods presented have been reflected. Such adjustments are of a normal, recurring nature. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”). The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the “CODM”) to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The Company has determined that it has a single operating and reportable segment. The Company maintains its cash in multiple financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed insurance limits. As of March 31, 2024, the Company had $ 2,806,594 Recently Issued Accounting Standards – Not Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity (“PBE”) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows, and financial condition. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 2. REVENUE Disaggregation of Revenue The following tables present the Company’s revenue disaggregated by contract type and revenue recognition method: Three months ended 2024 2023 Government subcontracts $ 15,001,768 $ 18,672,893 Prime government contracts 2,781,881 1,408,034 Commercial contracts 1,297,494 1,935,741 $ 19,081,143 $ 22,016,668 Three months ended 2024 2023 Revenue recognized using over time revenue recognition model $ 18,870,366 $ 20,630,230 Revenue recognized using point in time revenue recognition model 210,777 1,386,438 $ 19,081,143 $ 22,016,668 Favorable/(Unfavorable) Adjustments to Gross Profit We review our Estimates at Completion (“EAC”) at least quarterly. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many inputs, and requires significant judgment by management on a contract-by-contract basis. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities, and the related changes in estimates of revenues and costs. The risks and opportunities relate to management’s judgment about the ability and cost to achieve the schedule, consideration of customer-directed delays or reductions in scheduled deliveries, technical requirements, customer activity levels, and related variable consideration. Management must make assumptions and estimates regarding contract revenue and costs, including estimates of labor productivity and availability, the complexity and scope of the work to be performed, the availability and cost of materials including any impact from changing costs or inflation, the length of time to complete the performance obligation, the availability and timing of funding from our customer, and overhead cost rates, among others. Changes in estimates of net sales, cost of sales, and the related impact to operating profit on contracts recognized over time are recognized on a cumulative catch-up basis, which recognizes the cumulative effect of the profit changes on current and prior periods based on a performance obligation’s percentage-of-completion in the current period. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. Our EAC adjustments also include the establishment of, and changes to, loss provisions for our contracts accounted for on a percentage-of-completion basis. Net EAC adjustments had the following impact on our gross profit during the three months ended March 31, 2024 and 2023: Three months ended March 31, March 31, Favorable adjustments $ 912,487 $ 825,981 Unfavorable adjustments (2,085,348 ) (1,546,986 ) Net adjustments $ (1,172,861 ) $ (721,005 ) Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2024, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $ 103.6 |
CONTRACT ASSETS AND LIABILITIES
CONTRACT ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Contract Assets And Liabilities | |
CONTRACT ASSETS AND LIABILITIES | 3. CONTRACT ASSETS AND LIABILITIES Contract assets represent revenue recognized on contracts in excess of amounts invoiced to the customers and the Company’s right to consideration is conditional on something other than the passage of time. Amounts may not exceed their net realizable value. Under the typical payment terms of our government as well as military contractor contracts, the customer retains a portion of the contract price until completion of the contract, as a measure of protection for the customer. Our government and military contractor contracts therefore typically result in revenue recognized in excess of billings, which we present as contract assets. Contract assets are classified as current assets. The Company’s contract liabilities represent customer payments received or due from the customer in excess of revenue recognized. Contract liabilities are classified as current liabilities. Schedule of contract assets and liabilities March 31, 2024 December 31, 2023 Contract assets $ 34,016,949 $ 35,312,068 Contract liabilities 4,497,225 5,937,629 Contract assets at March 31, 2024 decreased $ 1,295,119 Contract liabilities decreased $ 1,440,404 Revenue recognized for the three months ended March 31, 2024 and 2023 that was included in the contract liabilities balance as of January 1, 2024 and 2023, respectively, was approximately $ 2.0 1.5 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 4. INVENTORY The components of inventory consisted of the following: March 31, 2024 December 31, 2023 Raw materials $ 1,191,315 $ 1,187,008 Work in progress 56,901 75,795 Finished goods 1,604,406 1,617,077 Gross inventory 2,852,622 2,879,879 Inventory reserves (1,571,403 ) (1,443,233 ) Inventory, net $ 1,281,219 $ 1,436,647 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 5. STOCK-BASED COMPENSATION In 2009, the Company adopted the Performance Equity Plan 2009 (the “2009 Plan”). The 2009 Plan reserved 500,000 2,364 In 2016, the Company adopted the 2016 Long Term Incentive Plan (the “2016 Plan”). The 2016 Plan reserved 600,000 200,000 800,000 1,400,000 800,000 2,200,000 599,055 Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: Three months ended 2024 2023 Cost of sales $ (10,755 ) $ 15,077 Selling, general and administrative 292,277 323,846 Total stock-based compensation expense $ 281,522 $ 338,923 The Company grants restricted stock units (“RSUs”) to its board of directors as partial compensation. These RSUs vest quarterly on a straight-line basis over a one-year period. At March 31, 2024, the weighted average remaining amortization period was nine months The following table summarizes activity related to outstanding RSUs for the three months ended March 31, 2024: RSUs Weighted Average Grant Date Fair Value of RSUs Non-vested – January 1, 2024 — $ — Granted 181,323 $ 2.45 Vested (45,328 ) $ 2.45 Forfeited — $ — Non-vested – March 31, 2024 135,995 $ 2.45 The Company grants shares of common stock (“Restricted Stock Awards”) to select employees. These shares have various vesting dates, ranging from vesting on the grant date to as late as four years from the date of grant. In the event that the employee’s employment is voluntarily terminated prior to certain vesting dates, portions of the shares may be forfeited. At March 31, 2024, the weighted average remaining amortization period was 2.6 The following table summarizes activity related to outstanding Restricted Stock Awards for the three months ended March 31, 2024: Restricted Stock Awards Weighted Average Grant Date Fair Value of Restricted Stock Awards Non-vested – January 1, 2024 167,071 $ 3.25 Granted — $ — Vested (9,294 ) $ 2.93 Forfeited (12,572 ) $ 3.03 Non-vested – March 31, 2024 145,205 $ 3.28 The Company grants shares of common stock (“Performance Restricted Stock Awards” or “PRSAs”) to select officers as part of our long-term incentive program that will result in that number of PRSAs being paid out if the target performance metric is achieved. The award vesting is based on specific performance metrics related to accounts payable delinquency, debt, and net income during the performance period. The PRSAs vest at 0 100 100 2.5 The following table summarizes activity related to outstanding PRSAs for the three months ended March 31, 2024: PRSAs Weighted Average Grant Date Fair Value of PRSAs Non-vested – January 1, 2024 48,050 $ 3.27 Granted 1,245 $ 1.60 Vested — $ — Forfeited (6,851 ) $ 3.08 Non-vested – March 31, 2024 42,444 $ 3.25 The fair value of all RSUs, PRSAs and Restricted Stock Awards is based on the closing price of our common stock on the grant date. All RSUs, PRSAs, and Restricted Stock Awards vest and settle in common stock (on a one-for-one basis). As of March 31, 2024, unamortized stock-based compensation costs related to restricted share arrangements was $ 463,262 . |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 6. NET INCOME PER SHARE Basic and diluted income per common share is computed using the weighted average number of common shares outstanding. Diluted income per common share is adjusted for the incremental shares attributed to unvested RSUs. Incremental shares of 193,695 87,890 |
LINE OF CREDIT AND LONG-TERM DE
LINE OF CREDIT AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT AND LONG-TERM DEBT | 7. LINE OF CREDIT AND LONG-TERM DEBT On March 24, 2016, the Company entered into the Amended and Restated Credit Agreement with the lenders named therein and BankUnited N.A. as Sole Arranger, Agent and Collateral Agent (as amended from time to time, the “Credit Agreement” or the “BankUnited Facility”). The BankUnited Facility originally provided for a revolving credit loan commitment of $ 30 10 On February 20, 2024, the Company entered into a Thirteenth Amendment to the Credit Agreement (the “Thirteenth Amendment”). Under the Thirteenth Amendment, the parties amended the Credit Agreement by (a) extending the maturity date of the Company’s existing revolving line of credit to August 31, 2025 19,800,000 19,080,000 18,360,000 17,640,000 16,920,000 16,200,000 15,480,000 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 4.0 1.00 1.0 The BankUnited Facility is secured by all of the Company’s assets and the Revolving Loan bears interest at the Prime Rate + 3.50 8.50 12.00 As of March 31, 2024 and December 31, 2023, the Company had $ 19,080,000 20,040,000 2,160,000 16,920,000 The Company has cumulatively paid approximately $ 962,000 66,000 82,000 Also included in long-term debt are financing leases of $ 48,746 70,981 30,010 44,498 The maturities of the March 31, 2024 balance of these financing leases are as follows: For the Year Ending December 31, Remainder of 2024 $ 22,263 2025 26,483 Total $ 48,746 |
MAJOR CUSTOMERS AND VENDORS
MAJOR CUSTOMERS AND VENDORS | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS AND VENDORS | 8. MAJOR CUSTOMERS AND VENDORS During the three months ended March 31, 2024, our four largest customers accounted for 28 24 15 11 36 28 At March 31, 2024, 22 17 14 14 30 17 12 11 At March 31, 2024, 27 20 18 15 26 23 18 15 At March 31, 2024, 13 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
LEASES | 9. LEASES The Company leases manufacturing and office space under an agreement classified as an operating lease. On November 10, 2021, the Company executed the second amendment to the lease agreement for its manufacturing and office space, which extends the lease agreement’s expiration date to April 30, 2026 The Company also leases office equipment in agreements classified as operating leases. For the three months ended March 31, 2024 and 2023, the Company’s operating lease expense was $ 529,624 546,082 Future minimum lease payments under non-cancellable operating leases as of March 31, 2024 were as follows: For the Year Ending December 31, Remainder of 2024 $ 1,680,674 2025 2,283,354 2026 850,276 2027 111,065 2028 9,228 Total undiscounted operating lease payments 4,934,597 Less imputed interest (315,922 ) Present value of operating lease payments $ 4,618,675 The following table sets forth the right-of-use assets and operating lease liabilities as of: March 31, 2024 December 31, 2023 Assets Right-of-use assets, net $ 4,277,724 $ 4,740,193 Liabilities Current operating lease liabilities $ 2,037,547 $ 1,999,058 Long-term operating lease liabilities 2,581,128 3,100,571 Total lease liabilities $ 4,618,675 $ 5,099,629 The Company’s weighted average remaining lease term for its operating leases is 2.2 5.45 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense. The provision for income tax for the three months ended March 31, 2024 and 2023 was $ 39,472 199,257 The effective income tax rate for the three months ended March 31, 2024 is 19.0 21.0 16.8 21 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES The Company may be involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time to time in the ordinary course of its business. The Company accrues a liability when it is both probable a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in the Company’s accrued liabilities would be recorded in the period such determination is made. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. |
INTERIM FINANCIAL STATEMENTS (P
INTERIM FINANCIAL STATEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company consists of CPI Aerostructures, Inc. (“CPI Aero”), Welding Metallurgy, Inc. (“WMI”), a wholly owned subsidiary of CPI Aero, and Compac Development Corporation, a wholly owned subsidiary of WMI (collectively, the “Company”, “we”, “us”, or “our”). The condensed consolidated interim financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations. The consolidated balance sheet at December 31, 2023 has been derived from audited consolidated financial statements, but does not include all of the information and notes required by U.S. GAAP. The Company believes that the disclosures are adequate to make the information presented not misleading. All adjustments that, in the opinion of the management, are necessary for a fair presentation for the periods presented have been reflected. Such adjustments are of a normal, recurring nature. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”). The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the “CODM”) to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The Company has determined that it has a single operating and reportable segment. The Company maintains its cash in multiple financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed insurance limits. As of March 31, 2024, the Company had $ 2,806,594 |
Recently Issued Accounting Standards – Not Adopted | Recently Issued Accounting Standards – Not Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity (“PBE”) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows, and financial condition. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
The following tables present the Company’s revenue disaggregated by contract type and revenue recognition method: | The following tables present the Company’s revenue disaggregated by contract type and revenue recognition method: Three months ended 2024 2023 Government subcontracts $ 15,001,768 $ 18,672,893 Prime government contracts 2,781,881 1,408,034 Commercial contracts 1,297,494 1,935,741 $ 19,081,143 $ 22,016,668 Three months ended 2024 2023 Revenue recognized using over time revenue recognition model $ 18,870,366 $ 20,630,230 Revenue recognized using point in time revenue recognition model 210,777 1,386,438 $ 19,081,143 $ 22,016,668 |
Net EAC adjustments had the following impact on our gross profit during the three months ended March 31, 2024 and 2023: | Net EAC adjustments had the following impact on our gross profit during the three months ended March 31, 2024 and 2023: Three months ended March 31, March 31, Favorable adjustments $ 912,487 $ 825,981 Unfavorable adjustments (2,085,348 ) (1,546,986 ) Net adjustments $ (1,172,861 ) $ (721,005 ) |
CONTRACT ASSETS AND LIABILITI_2
CONTRACT ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Contract Assets And Liabilities | |
Schedule of contract assets and liabilities | Schedule of contract assets and liabilities March 31, 2024 December 31, 2023 Contract assets $ 34,016,949 $ 35,312,068 Contract liabilities 4,497,225 5,937,629 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
The components of inventory consisted of the following: | The components of inventory consisted of the following: March 31, 2024 December 31, 2023 Raw materials $ 1,191,315 $ 1,187,008 Work in progress 56,901 75,795 Finished goods 1,604,406 1,617,077 Gross inventory 2,852,622 2,879,879 Inventory reserves (1,571,403 ) (1,443,233 ) Inventory, net $ 1,281,219 $ 1,436,647 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: | Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: Three months ended 2024 2023 Cost of sales $ (10,755 ) $ 15,077 Selling, general and administrative 292,277 323,846 Total stock-based compensation expense $ 281,522 $ 338,923 |
The following table summarizes activity related to outstanding RSUs for the three months ended March 31, 2024: | The following table summarizes activity related to outstanding RSUs for the three months ended March 31, 2024: RSUs Weighted Average Grant Date Fair Value of RSUs Non-vested – January 1, 2024 — $ — Granted 181,323 $ 2.45 Vested (45,328 ) $ 2.45 Forfeited — $ — Non-vested – March 31, 2024 135,995 $ 2.45 |
The following table summarizes activity related to outstanding Restricted Stock Awards for the three months ended March 31, 2024: | The following table summarizes activity related to outstanding Restricted Stock Awards for the three months ended March 31, 2024: Restricted Stock Awards Weighted Average Grant Date Fair Value of Restricted Stock Awards Non-vested – January 1, 2024 167,071 $ 3.25 Granted — $ — Vested (9,294 ) $ 2.93 Forfeited (12,572 ) $ 3.03 Non-vested – March 31, 2024 145,205 $ 3.28 |
The following table summarizes activity related to outstanding PRSAs for the three months ended March 31, 2024: | The following table summarizes activity related to outstanding PRSAs for the three months ended March 31, 2024: PRSAs Weighted Average Grant Date Fair Value of PRSAs Non-vested – January 1, 2024 48,050 $ 3.27 Granted 1,245 $ 1.60 Vested — $ — Forfeited (6,851 ) $ 3.08 Non-vested – March 31, 2024 42,444 $ 3.25 |
LINE OF CREDIT AND LONG-TERM _2
LINE OF CREDIT AND LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
The maturities of the March 31, 2024 balance of these financing leases are as follows: | Also included in long-term debt are financing leases of $ 48,746 70,981 30,010 44,498 The maturities of the March 31, 2024 balance of these financing leases are as follows: For the Year Ending December 31, Remainder of 2024 $ 22,263 2025 26,483 Total $ 48,746 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Future minimum lease payments under non-cancellable operating leases as of March 31, 2024 were as follows: | Future minimum lease payments under non-cancellable operating leases as of March 31, 2024 were as follows: For the Year Ending December 31, Remainder of 2024 $ 1,680,674 2025 2,283,354 2026 850,276 2027 111,065 2028 9,228 Total undiscounted operating lease payments 4,934,597 Less imputed interest (315,922 ) Present value of operating lease payments $ 4,618,675 |
The following table sets forth the right-of-use assets and operating lease liabilities as of: | The following table sets forth the right-of-use assets and operating lease liabilities as of: March 31, 2024 December 31, 2023 Assets Right-of-use assets, net $ 4,277,724 $ 4,740,193 Liabilities Current operating lease liabilities $ 2,037,547 $ 1,999,058 Long-term operating lease liabilities 2,581,128 3,100,571 Total lease liabilities $ 4,618,675 $ 5,099,629 |
INTERIM FINANCIAL STATEMENTS (D
INTERIM FINANCIAL STATEMENTS (Details Narrative) | Mar. 31, 2024 USD ($) |
Accounting Policies [Abstract] | |
Uninsured balance | $ 2,806,594 |
The following tables present th
The following tables present the Company’s revenue disaggregated by contract type and revenue recognition method: (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 19,081,143 | $ 22,016,668 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,870,366 | 20,630,230 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 210,777 | 1,386,438 |
Government subcontracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,001,768 | 18,672,893 |
Prime government contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,781,881 | 1,408,034 |
Commercial contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,297,494 | $ 1,935,741 |
Net EAC adjustments had the fol
Net EAC adjustments had the following impact on our gross profit during the three months ended March 31, 2024 and 2023: (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net adjustments | $ (1,172,861) | $ (721,005) |
Favorable adjustments [Member] | ||
Net adjustments | 912,487 | 825,981 |
Unfavorable adjustments [Member] | ||
Net adjustments | $ (2,085,348) | $ (1,546,986) |
REVENUE (Details Narrative)
REVENUE (Details Narrative) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 103.6 |
Schedule of Contract liabilitie
Schedule of Contract liabilities are classified as current liabilities (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Contract Assets And Liabilities | ||
Contract assets | $ 34,016,949 | $ 35,312,068 |
Contract liabilities | $ 4,497,225 | $ 5,937,629 |
CONTRACT ASSETS AND LIABILITI_3
CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Contract Assets And Liabilities | ||
Decrease in contract assets | $ 1,295,119 | |
Decrease in contract liabilities | 1,440,404 | |
Revenue recognized that was included in contract liabilities | $ 2,000,000 | $ 1,500,000 |
The components of inventory con
The components of inventory consisted of the following: (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,191,315 | $ 1,187,008 |
Work in progress | 56,901 | 75,795 |
Finished goods | 1,604,406 | 1,617,077 |
Gross inventory | 2,852,622 | 2,879,879 |
Inventory reserves | (1,571,403) | (1,443,233) |
Inventory, net | $ 1,281,219 | $ 1,436,647 |
Stock-based compensation expens
Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 281,522 | $ 338,923 |
Cost of Sales [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | (10,755) | 15,077 |
Selling, General and Administrative Expenses [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 292,277 | $ 323,846 |
The following table summarizes
The following table summarizes activity related to outstanding RSUs for the three months ended March 31, 2024: (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Non vested January 1, 2024 | shares | |
Non vested January 1, 2024 | $ / shares | |
Granted | shares | 181,323 |
Granted | $ / shares | $ 2.45 |
Vested | shares | (45,328) |
Vested | $ / shares | $ 2.45 |
Forfeited | shares | |
Forfeited | $ / shares | |
Non vested March 31, 2024 | shares | 135,995 |
Non vested March 31, 2024 | $ / shares | $ 2.45 |
The following table summarize_2
The following table summarizes activity related to outstanding Restricted Stock Awards for the three months ended March 31, 2024: (Details) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Non vested January 1, 2024 | shares | 167,071 |
Non vested January 1, 2024 | $ / shares | $ 3.25 |
Granted | shares | |
Granted | $ / shares | |
Vested | shares | (9,294) |
Vested | $ / shares | $ 2.93 |
Forfeited | shares | (12,572) |
Forfeited | $ / shares | $ 3.03 |
Non vested March 31, 2024 | shares | 145,205 |
Non vested March 31, 2024 | $ / shares | $ 3.28 |
The following table summarize_3
The following table summarizes activity related to outstanding PRSAs for the three months ended March 31, 2024: (Details) - Performance Shares [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Non vested January 1, 2024 | shares | 48,050 |
Non vested January 1, 2024 | $ / shares | $ 3.27 |
Granted | shares | 1,245 |
Granted | $ / shares | $ 1.60 |
Vested | shares | |
Vested | $ / shares | |
Forfeited | shares | (6,851) |
Forfeited | $ / shares | $ 3.08 |
Non vested March 31, 2024 | shares | 42,444 |
Non vested March 31, 2024 | $ / shares | $ 3.25 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2024 | Jun. 30, 2023 | Dec. 31, 2020 | Dec. 31, 2016 | Dec. 31, 2009 | |
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Weighted average remaining amortization period | 9 months | ||||
Restricted Stock [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Weighted average remaining amortization period | 2 years 7 months 6 days | ||||
Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Weighted average remaining amortization period | 2 years 6 months | ||||
Unamortized stock-based compensation costs | $ 463,262 | ||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting percentage | 0% | ||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting percentage | 100% | ||||
Performance Equity Plan 2009 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 500,000 | ||||
Shares available for grant | 2,364 | ||||
Long Term Incentive Plan 2016 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 2,200,000 | 1,400,000 | 600,000 | ||
Shares available for grant | 599,055 | ||||
Increase in number of shares reserved for issuance | 800,000 | 800,000 | |||
Long Term Incentive Plan 2016 [Member] | Share-Based Payment Arrangement, Option [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 200,000 |
NET INCOME PER SHARE (Details N
NET INCOME PER SHARE (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Incremental shares used in calculation of diluted income per common share | 193,695 | 87,890 |
The maturities of the March 31,
The maturities of the March 31, 2024 balance of these financing leases are as follows: (Details) | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 22,263 |
2025 | 26,483 |
Total | $ 48,746 |
LINE OF CREDIT AND LONG-TERM _3
LINE OF CREDIT AND LONG-TERM DEBT (Details Narrative) | 3 Months Ended | 96 Months Ended | ||||
Feb. 20, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 24, 2016 USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Prime rate | 8.50% | 8.50% | ||||
Current portion of line of credit | $ 2,160,000 | $ 2,160,000 | $ 2,400,000 | |||
Line of credit | 16,920,000 | 16,920,000 | 17,640,000 | |||
Payments of debt issuance costs | $ 54,334 | |||||
Financing leases | 48,746 | 48,746 | 70,981 | |||
Financing leases current | $ 30,010 | $ 30,010 | 44,498 | |||
Bank United [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Minimum debt service coverage ratio | 1.5 | 1.5 | ||||
Maximum leverage ratio | 4 | 4 | ||||
Minimum adjusted EBITDA | $ 1,000,000 | |||||
Payments of debt issuance costs | $ 962,000 | |||||
Debt issuance costs | 66,000 | 66,000 | 82,000 | |||
Bank United [Member] | Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Net income required under agreement | 1 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | |||||
Expiration date | Aug. 31, 2025 | |||||
Outstanding loans | 19,080,000 | 19,080,000 | $ 20,040,000 | |||
Current portion of line of credit | 2,160,000 | 2,160,000 | ||||
Line of credit | $ 16,920,000 | $ 16,920,000 | ||||
Bank United [Member] | Revolving Credit Facility [Member] | Period One [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 19,800,000 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | Period Two [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 19,080,000 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | Period Three [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 18,360,000 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | Period Four [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 17,640,000 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | Period Five [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 16,920,000 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | Period Six [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 16,200,000 | |||||
Bank United [Member] | Revolving Credit Facility [Member] | Period Seven [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,480,000 | |||||
Bank United [Member] | Term loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, face amount | $ 10,000,000 | |||||
Bank United [Member] | Revolving Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Prime rate Plus | 3.50% | |||||
Interest rate | 12% | 12% |
MAJOR CUSTOMERS AND VENDORS (De
MAJOR CUSTOMERS AND VENDORS (Details Narrative) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue Benchmark [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 28% | 36% | |
Revenue Benchmark [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 24% | 28% | |
Revenue Benchmark [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15% | ||
Revenue Benchmark [Member] | Customer Four [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11% | ||
Accounts Receivable [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22% | 30% | |
Accounts Receivable [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 17% | 17% | |
Accounts Receivable [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14% | 12% | |
Accounts Receivable [Member] | Customer Four [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14% | 11% | |
Contract Assets [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 27% | 26% | |
Contract Assets [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 20% | 23% | |
Contract Assets [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 18% | 18% | |
Contract Assets [Member] | Customer Four [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15% | 15% | |
Accounts Payable [Member] | Vendor One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13% |
Future minimum lease payments u
Future minimum lease payments under non-cancellable operating leases as of March 31, 2024 were as follows: (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases | ||
Remainder of 2024 | $ 1,680,674 | |
2025 | 2,283,354 | |
2026 | 850,276 | |
2027 | 111,065 | |
2028 | 9,228 | |
Total undiscounted operating lease payments | 4,934,597 | |
Less imputed interest | (315,922) | |
Present value of operating lease payments | $ 4,618,675 | $ 5,099,629 |
The following table sets forth
The following table sets forth the right-of-use assets and operating lease liabilities as of: (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Right-of-use assets, net | $ 4,277,724 | $ 4,740,193 |
Liabilities | ||
Current operating lease liabilities | 2,037,547 | 1,999,058 |
Long-term operating lease liabilities | 2,581,128 | 3,100,571 |
Total lease liabilities | $ 4,618,675 | $ 5,099,629 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases | ||
Expiration date | Apr. 30, 2026 | |
Operating lease expense | $ 529,624 | $ 546,082 |
Weighted average remaining lease term operating leases | 2 years 2 months 12 days | |
Weighted average discount rate for its operating leases | 5.45% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 39,472 | $ 199,257 |
Effective income tax rate | 19% | 16.80% |
Statutory income tax rate | 21% | 21% |