CPI Aerostructures (CVU) 10-Q 13 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
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		13,000,670

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current Assets:
Cash	$ 1,708,987	$ 5,094,794
Accounts receivable, net of allowance for credit losses	6,574,853	4,352,196
Contract assets, net	33,618,971	35,312,068
Inventory	1,052,286	1,436,647
Refundable income taxes	40,000	40,000
Prepaid expenses and other current assets	377,858	678,026
Total Current Assets	43,372,955	46,913,731
Operating lease right-of-use assets	3,334,992	4,740,193
Property and equipment, net	819,078	794,056
Deferred tax asset	19,425,407	19,938,124
Goodwill	1,784,254	1,784,254
Other assets	151,077	189,774
Total Assets	68,887,763	74,360,132
Current Liabilities:
Accounts payable	14,994,451	10,487,012
Accrued expenses	5,742,854	10,275,695
Contract liabilities	1,390,127	5,937,629
Loss reserve	24,888	337,351
Current portion of line of credit	2,730,000	2,400,000
Current portion of long-term debt	31,330	44,498
Operating lease liabilities, current	2,118,329	1,999,058
Income taxes payable	28,748	30,107
Total Current Liabilities	27,060,727	31,511,350
Line of credit, net of current portion	15,390,000	17,640,000
Long-term operating lease liabilities	1,494,942	3,100,571
Long-term debt, net of current portion	2,734	26,483
Total Liabilities	43,948,403	52,278,404
Commitments and Contingencies (see note 11)
Shareholders’ Equity:
Common stock - $.001 par value; authorized 50,000,000 shares, 12,933,408 and 12,771,434 shares, respectively, issued and outstanding	12,933	12,771
Additional paid-in capital	74,402,288	73,872,679
Accumulated deficit	(49,475,861)	(51,803,722)
Total Shareholders’ Equity	24,939,360	22,081,728
Total Liabilities and Shareholders’ Equity	$ 68,887,763	$ 74,360,132

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 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	12,933,408	12,771,434
Common stock, outstanding	12,933,408	12,771,434

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenue	$ 19,419,879	$ 20,399,369	$ 59,311,356	$ 62,963,592
Cost of sales	15,200,210	16,693,279	46,422,514	49,990,986
Gross profit	4,219,669	3,706,090	12,888,842	12,972,606
Selling, general and administrative expenses	2,742,036	2,535,065	8,231,875	8,210,603
Income from operations	1,477,633	1,171,025	4,656,967	4,762,003
Interest expense	(573,366)	(663,857)	(1,793,472)	(1,816,408)
Income before provision for income taxes	904,267	507,168	2,863,495	2,945,595
Provision for income taxes	154,590	205,804	535,634	503,850
Net income	$ 749,677	$ 301,364	$ 2,327,861	$ 2,441,745
Income per common share, basic	$ 0.06	$ 0.02	$ 0.19	$ 0.19
Income per common share, diluted	$ 0.06	$ 0.02	$ 0.18	$ 0.19
Shares used in computing income per common share:
Basic	12,647,023	12,759,971	12,559,876	12,613,899
Diluted	12,717,128	12,793,133	12,650,340	12,647,061

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, 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				2,441,745
Ending balance, value at Sep. 30, 2023	$ 12,761	73,849,050	(66,563,181)	7,298,630
Ending balance (in shares) at Sep. 30, 2023	12,760,331
Beginning balance, value at Mar. 31, 2023	$ 12,526	73,528,353	(68,021,621)	5,519,258
Beginning balance (in shares) at Mar. 31, 2023	12,526,042
Net income			1,157,076	1,157,076
Issuance of common stock upon settlement of restricted stock, net	$ 201			201
Issuance of common stock upon settlement of restricted stock, net (in shares)	201,125
Stock-based compensation expense		180,015		180,015
Ending balance, value at Jun. 30, 2023	$ 12,727	73,708,368	(66,864,545)	6,856,550
Ending balance (in shares) at Jun. 30, 2023	12,727,167
Net income			301,364	301,364
Issuance of common stock upon settlement of restricted stock, net	$ 34			34
Issuance of common stock upon settlement of restricted stock, net (in shares)	33,164
Stock-based compensation expense		140,682		140,682
Ending balance, value at Sep. 30, 2023	$ 12,761	73,849,050	(66,563,181)	7,298,630
Ending balance (in shares) at Sep. 30, 2023	12,760,331
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
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				$ 2,327,861
Ending balance, value at Sep. 30, 2024	$ 12,933	74,402,288	(49,475,861)	$ 24,939,360
Ending balance (in shares) at Sep. 30, 2024	12,933,408			12,933,408
Beginning balance, value at Mar. 31, 2024	$ 12,784	74,154,189	(51,635,484)	$ 22,531,489
Beginning balance (in shares) at Mar. 31, 2024	12,784,768
Net income			1,409,946	1,409,946
Issuance of common stock upon settlement of restricted stock, net	$ 179			179
Issuance of common stock upon settlement of restricted stock, net (in shares)	178,095
Stock-based compensation expense		175,356		175,356
Ending balance, value at Jun. 30, 2024	$ 12,963	74,329,545	(50,225,538)	24,116,970
Ending balance (in shares) at Jun. 30, 2024	12,962,863
Net income			749,677	749,677
Issuance of common stock upon settlement of restricted stock, net	$ (30)			(30)
Issuance of common stock upon settlement of restricted stock, net (in shares)	(29,455)
Stock-based compensation expense		72,743		72,743
Ending balance, value at Sep. 30, 2024	$ 12,933	$ 74,402,288	$ (49,475,861)	$ 24,939,360
Ending balance (in shares) at Sep. 30, 2024	12,933,408			12,933,408

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 2,327,861	$ 2,441,745
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	305,260	350,974
Amortization of debt issuance cost	38,697	81,024
Stock-based compensation	529,771	659,855
Deferred income taxes	512,717	500,220
Provision for credit losses	144,565
Amortization of operating lease right-of-use assets	1,405,201	1,330,209
Changes in operating assets and liabilities:
Increase in accounts receivable	(2,367,222)	(4,266,415)
Decrease in insurance receivable		3,600,000
Decrease (increase) in contract assets	1,693,097	(3,646,028)
Decrease in inventory	384,361	842,196
Decrease in prepaid expenses and other assets	300,168	305,526
Increase in accounts payable and accrued expenses	236,130	3,093,351
(Decrease) increase in contract liabilities	(4,547,502)	667,615
Decrease in settlement of litigation obligation		(3,600,000)
Decrease in operating lease liabilities	(1,486,359)	(1,320,706)
Decrease in loss reserve	(312,463)	(204,916)
(Decrease) increase in income taxes payable	(1,359)	5,478
Net cash (used in) provided by operating activities	(837,077)	840,128
Cash flows from investing activities:
Purchase of property and equipment	(330,282)	(92,954)
Net cash used in investing activities	(330,282)	(92,954)
Cash flows from financing activities:
Principal payments on line of credit	(1,920,000)
Principal payments on long-term debt	(36,917)	(1,930,372)
Repayments of insurance financing obligation	(261,531)
Debt issuance costs paid		(54,334)
Net cash used in financing activities	(2,218,448)	(1,984,706)
Net decrease in cash	(3,385,807)	(1,237,532)
Cash at beginning of period	5,094,794	3,847,225
Cash at end of period	1,708,987	2,609,693
Cash paid during the period for:
Interest	1,795,495	1,815,939
Income taxes	$ 36,457

INTERIM FINANCIAL STATEMENTS

INTERIM FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 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 September 30, 2024 and for the three and nine months ended September 30, 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 September 30, 2024, the Company had $ 1,476,844 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. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which focuses on a PBE to disclose entity-wide and segment information in the notes to financial statements. This includes the measure of profit or loss that the CODM uses to assess segment performance and decide how to allocate resources, as well as certain specified amounts included in that measure – e.g. revenue, depreciation and amortization, interest and income tax expense. For PBEs, the new standard is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows, and financial condition.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 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 Nine months ended 2024 2023 2024 2023 Government subcontracts $ 16,986,106 $ 15,375,337 $ 48,951,748 $ 50,550,256 Prime government contracts 1,673,483 3,943,723 7,056,711 8,062,682 Commercial contracts 760,290 1,080,309 3,302,897 4,350,654 $ 19,419,879 $ 20,399,369 $ 59,311,356 $ 62,963,592 Three months ended Nine months ended 2024 2023 2024 2023 Revenue recognized using over time revenue recognition model $ 19,092,000 $ 20,053,771 $ 58,558,552 $ 59,353,845 Revenue recognized using point in time revenue recognition model 327,879 345,598 752,804 3,609,747 $ 19,419,879 $ 20,399,369 $ 59,311,356 $ 62,963,592 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 nine months ended September 30, 2024 and 2023: Nine months ended September 30, September 30, Favorable adjustments $ 1,835,489 $ 2,383,071 Unfavorable adjustments (4,059,160 ) (3,396,171 ) Net adjustments $ (2,223,671 ) $ (1,013,100 ) Transaction Price Allocated to Remaining Performance Obligations As of September 30, 2024, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $ 91.5

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 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 contract or 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 September 30, 2024 December 31, 2023 Contract assets $ 33,618,971 $ 35,312,068 Contract liabilities 1,390,127 5,937,629 Revenue recognized for the nine months ended September 30, 2024 and 2023 that was included in the contract liabilities balance as of January 1, 2024 and 2023, respectively, was approximately $ 5.0 3.0

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORY	4. INVENTORY The components of inventory consisted of the following: September 30, 2024 December 31, 2023 Raw materials $ 440,016 $ 648,264 Work in progress 103,390 75,795 Finished goods 508,880 712,588 Inventory $ 1,052,286 $ 1,436,647

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 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 2,200,000 376,094 Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: Three months ended Nine months ended 2024 2023 2024 2023 Cost of sales $ 14,430 $ 6,612 $ 3,675 $ 58,860 Selling, general and administrative 58,283 134,104 526,096 600,995 Total stock-based compensation expense $ 72,713 $ 140,716 $ 529,771 $ 659,855 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 October 1, 2024 The following table summarizes activity related to outstanding RSUs for the nine months ended September 30, 2024: RSUs Weighted Average Grant Date Fair Value of RSUs Non-vested – January 1, 2024 — $ — Granted 181,323 $ 2.45 Vested (135,900 ) $ 2.45 Forfeited — $ — Non-vested – September 30, 2024 45,423 $ 2.45 The Company grants shares of common stock (“Restricted Stock Awards” or “RSAs”) to select employees. These shares have various vesting dates, ranging from vesting on the grant date to as late as four years At September 30, 2024, the weighted average remaining amortization period was 2.7 The following table summarizes activity related to outstanding Restricted Stock Awards for the nine months ended September 30, 2024: Restricted Stock Awards Weighted Average Grant Date Fair Value of Restricted Stock Awards Non-vested – January 1, 2024 167,071 $ 3.25 Granted 107,604 $ 2.39 Vested (58,587 ) $ 3.18 Forfeited (63,213 ) $ 2.78 Non-vested – September 30, 2024 152,875 $ 2.86 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 2.6 The following table summarizes activity related to outstanding PRSAs for the nine months ended September 30, 2024: PRSAs Weighted Average Grant Date Fair Value of PRSAs Non-vested – January 1, 2024 48,050 $ 3.27 Granted 64,611 $ 2.91 Vested — $ — Forfeited (68,585 ) $ 3.12 Non-vested – September 30, 2024 44,076 $ 2.98 The fair value of all RSUs, PRSAs and RSAs 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 September 30, 2024, unamortized stock-based compensation costs related to restricted share arrangements was $ 284,780

NET INCOME PER SHARE

NET INCOME PER SHARE	9 Months Ended
	Sep. 30, 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 and RSAs. Incremental shares of 70,105 90,463 33,162

LINE OF CREDIT AND LONG-TERM DE

LINE OF CREDIT AND LONG-TERM DEBT	9 Months Ended
	Sep. 30, 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 On November 13, 2024, the Company entered into a Fourteenth Amendment to the Credit Agreement (the “Fourteenth Amendment”). Under the Fourteenth Amendment, the parties amended the Credit Agreement by: (i) extending the maturity date of the Company’s existing revolving line of credit (the “Revolving Credit Loans”) to August 31, 2026 ; (ii) reducing the Base Rate Margin (as defined in the Credit Agreement) from 3.50 % to 2.0 %; (iii) resetting the aggregate maximum principal amount of all Revolving Credit Loans to $ 16,890,000 from January 1, 2025 through March 31, 2025, $ 16,140,000 from April 1, 2025 through June 30, 2025, $15,390,000 $14,640,000 $13,890,000 $13,140,000 $12,390,000 2 % of the aggregate outstanding principal amount of the Revolving Credit Loans as of December 31, 2025, with 50 % of such payment applied to reduce the aggregate outstanding principal and the remaining 50 % retained by the Lenders as an amendment fee with respect to the Fourteenth Amendment. 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. Prior to the Fourteenth Amendment, the Revolving Loan bore interest at the Prime Rate + 3.50 8.0 11.5 As of September 30, 2024 and December 31, 2023, the Company had $ 18,120,000 20,040,000 2,730,000 15,390,000 November 13, 2024. The Company has cumulatively paid approximately $ 962,000 43,000 82,000 Also included in long-term debt are financing leases of $ 34,064 70,981 31,330 44,498 The maturities of the September 30, 2024 balance of these financing leases are as follows: For the Year Ending December 31, Remainder of 2024 $ 7,581 2025 26,483 Total $ 34,064

MAJOR CUSTOMERS AND VENDORS

MAJOR CUSTOMERS AND VENDORS	9 Months Ended
	Sep. 30, 2024
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS AND VENDORS	8. MAJOR CUSTOMERS AND VENDORS During the nine months ended September 30, 2024, our four largest customers accounted for 35 24 12 12 31 26 12 10 40 23 11 28 21 19 13 At September 30, 2024, 38 25 13 30 17 12 11 At September 30, 2024, 27 26 15 12 26 23 18 15 At September 30, 2024, 10

LEASES

LEASES	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2024 and 2023, the Company’s operating lease expense was $ 1,611,487 1,612,713 528,127 529,624 Future minimum lease payments under non-cancellable operating leases as of September 30, 2024 were as follows: For the Year Ending December 31, Remainder of 2024 $ 560,249 2025 2,283,354 2026 850,276 2027 111,065 2028 9,228 Total undiscounted operating lease payments 3,814,172 Less imputed interest (200,901 ) Present value of operating lease payments $ 3,613,271 The following table sets forth the right-of-use assets and operating lease liabilities as of: September 30, 2024 December 31, 2023 Assets Right-of-use assets, net $ 3,334,992 $ 4,740,193 Liabilities Current operating lease liabilities $ 2,118,329 $ 1,999,058 Long-term operating lease liabilities 1,494,942 3,100,571 Total lease liabilities $ 3,613,271 $ 5,099,629 The Company’s weighted average remaining lease term for its operating leases is 1.7 5.5

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 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 September 30, 2024 and 2023 was $ 154,590 205,804 535,634 503,850 The effective income tax rate for the nine months ended September 30, 2024 is 18.7 21.0 17.1 21 122,500

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 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. The Company reached a settlement with the SEC on June 20, 2024 related to the Company’s previously announced and filed restatements of certain of its financial statements for fiscal periods between January 1, 2018 and December 31, 2022. Under the terms of this settlement, if the Company fails to comply with various undertakings, a civil monetary penalty in the amount of $ 400,000 (a) the Company shall fully remediate its outstanding material weaknesses in Internal Controls over Financial Reporting (“ICFR”) and have effective ICFR and disclosure controls and procedures (“DCP”) by December 31, 2024; (b) the Company shall publicly disclose, concurrent with the filing of the 2024 Form 10-K, whether in management’s opinion, the Company has fully remediated its material weaknesses in ICFR and has effective ICFR and DCP; and (c) the Company shall certify, in writing, compliance with the undertaking(s) set forth above. The certification shall be made by the Company’s CEO and identify the undertaking(s), provide written evidence of compliance in the form of a narrative, and be supported by exhibits sufficient to demonstrate compliance. The certification and supporting material shall be submitted to the SEC no later than sixty (60) days from the date of the completion of the undertakings.

INTERIM FINANCIAL STATEMENTS (P

INTERIM FINANCIAL STATEMENTS (Policies)	9 Months Ended
	Sep. 30, 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 September 30, 2024 and for the three and nine months ended September 30, 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 September 30, 2024, the Company had $ 1,476,844
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. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which focuses on a PBE to disclose entity-wide and segment information in the notes to financial statements. This includes the measure of profit or loss that the CODM uses to assess segment performance and decide how to allocate resources, as well as certain specified amounts included in that measure – e.g. revenue, depreciation and amortization, interest and income tax expense. For PBEs, the new standard is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. 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)	9 Months Ended
	Sep. 30, 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 Nine months ended 2024 2023 2024 2023 Government subcontracts $ 16,986,106 $ 15,375,337 $ 48,951,748 $ 50,550,256 Prime government contracts 1,673,483 3,943,723 7,056,711 8,062,682 Commercial contracts 760,290 1,080,309 3,302,897 4,350,654 $ 19,419,879 $ 20,399,369 $ 59,311,356 $ 62,963,592 Three months ended Nine months ended 2024 2023 2024 2023 Revenue recognized using over time revenue recognition model $ 19,092,000 $ 20,053,771 $ 58,558,552 $ 59,353,845 Revenue recognized using point in time revenue recognition model 327,879 345,598 752,804 3,609,747 $ 19,419,879 $ 20,399,369 $ 59,311,356 $ 62,963,592
Net EAC adjustments had the following impact on our gross profit during the nine months ended September 30, 2024 and 2023:	Net EAC adjustments had the following impact on our gross profit during the nine months ended September 30, 2024 and 2023: Nine months ended September 30, September 30, Favorable adjustments $ 1,835,489 $ 2,383,071 Unfavorable adjustments (4,059,160 ) (3,396,171 ) Net adjustments $ (2,223,671 ) $ (1,013,100 )

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Contract Assets And Liabilities
Schedule of contract assets and liabilities	Schedule of contract assets and liabilities September 30, 2024 December 31, 2023 Contract assets $ 33,618,971 $ 35,312,068 Contract liabilities 1,390,127 5,937,629

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
The components of inventory consisted of the following:	The components of inventory consisted of the following: September 30, 2024 December 31, 2023 Raw materials $ 440,016 $ 648,264 Work in progress 103,390 75,795 Finished goods 508,880 712,588 Inventory $ 1,052,286 $ 1,436,647

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 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 Nine months ended 2024 2023 2024 2023 Cost of sales $ 14,430 $ 6,612 $ 3,675 $ 58,860 Selling, general and administrative 58,283 134,104 526,096 600,995 Total stock-based compensation expense $ 72,713 $ 140,716 $ 529,771 $ 659,855
The following table summarizes activity related to outstanding RSUs for the nine months ended September 30, 2024:	The following table summarizes activity related to outstanding RSUs for the nine months ended September 30, 2024: RSUs Weighted Average Grant Date Fair Value of RSUs Non-vested – January 1, 2024 — $ — Granted 181,323 $ 2.45 Vested (135,900 ) $ 2.45 Forfeited — $ — Non-vested – September 30, 2024 45,423 $ 2.45
The following table summarizes activity related to outstanding Restricted Stock Awards for the nine months ended September 30, 2024:	The following table summarizes activity related to outstanding Restricted Stock Awards for the nine months ended September 30, 2024: Restricted Stock Awards Weighted Average Grant Date Fair Value of Restricted Stock Awards Non-vested – January 1, 2024 167,071 $ 3.25 Granted 107,604 $ 2.39 Vested (58,587 ) $ 3.18 Forfeited (63,213 ) $ 2.78 Non-vested – September 30, 2024 152,875 $ 2.86
The following table summarizes activity related to outstanding PRSAs for the nine months ended September 30, 2024:	The following table summarizes activity related to outstanding PRSAs for the nine months ended September 30, 2024: PRSAs Weighted Average Grant Date Fair Value of PRSAs Non-vested – January 1, 2024 48,050 $ 3.27 Granted 64,611 $ 2.91 Vested — $ — Forfeited (68,585 ) $ 3.12 Non-vested – September 30, 2024 44,076 $ 2.98

LINE OF CREDIT AND LONG-TERM _2

LINE OF CREDIT AND LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
The maturities of the September 30, 2024 balance of these financing leases are as follows:	Also included in long-term debt are financing leases of $ 34,064 70,981 31,330 44,498 The maturities of the September 30, 2024 balance of these financing leases are as follows: For the Year Ending December 31, Remainder of 2024 $ 7,581 2025 26,483 Total $ 34,064

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2024
Leases
Future minimum lease payments under non-cancellable operating leases as of September 30, 2024 were as follows:	Future minimum lease payments under non-cancellable operating leases as of September 30, 2024 were as follows: For the Year Ending December 31, Remainder of 2024 $ 560,249 2025 2,283,354 2026 850,276 2027 111,065 2028 9,228 Total undiscounted operating lease payments 3,814,172 Less imputed interest (200,901 ) Present value of operating lease payments $ 3,613,271
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: September 30, 2024 December 31, 2023 Assets Right-of-use assets, net $ 3,334,992 $ 4,740,193 Liabilities Current operating lease liabilities $ 2,118,329 $ 1,999,058 Long-term operating lease liabilities 1,494,942 3,100,571 Total lease liabilities $ 3,613,271 $ 5,099,629

INTERIM FINANCIAL STATEMENTS (D

INTERIM FINANCIAL STATEMENTS (Details Narrative)	Sep. 30, 2024 USD ($)
Accounting Policies [Abstract]
Uninsured balance	$ 1,476,844

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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 19,419,879	$ 20,399,369	$ 59,311,356	$ 62,963,592
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	19,092,000	20,053,771	58,558,552	59,353,845
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	327,879	345,598	752,804	3,609,747
Government subcontracts [Member]
Disaggregation of Revenue [Line Items]
Revenue	16,986,106	15,375,337	48,951,748	50,550,256
Prime government contracts [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,673,483	3,943,723	7,056,711	8,062,682
Commercial contracts [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 760,290	$ 1,080,309	$ 3,302,897	$ 4,350,654

Net EAC adjustments had the fol

Net EAC adjustments had the following impact on our gross profit during the nine months ended September 30, 2024 and 2023: (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Net adjustments	$ (2,223,671)	$ (1,013,100)
Favorable adjustments [Member]
Net adjustments	1,835,489	2,383,071
Unfavorable adjustments [Member]
Net adjustments	$ (4,059,160)	$ (3,396,171)

REVENUE (Details Narrative)

REVENUE (Details Narrative) $ in Millions	Sep. 30, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 91.5

Schedule of Contract liabilitie

Schedule of Contract liabilities are classified as current liabilities (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Contract Assets And Liabilities
Contract assets	$ 33,618,971	$ 35,312,068
Contract liabilities	$ 1,390,127	$ 5,937,629

CONTRACT ASSETS AND LIABILITI_3

CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Contract Assets And Liabilities
Revenue recognized that was included in contract liabilities	$ 5	$ 3

The components of inventory con

The components of inventory consisted of the following: (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 440,016	$ 648,264
Work in progress	103,390	75,795
Finished goods	508,880	712,588
Inventory	$ 1,052,286	$ 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 72,713	$ 140,716	$ 529,771	$ 659,855
Cost of Sales [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	14,430	6,612	3,675	58,860
Selling, General and Administrative Expenses [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 58,283	$ 134,104	$ 526,096	$ 600,995

The following table summarizes

The following table summarizes activity related to outstanding RSUs for the nine months ended September 30, 2024: (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 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	(135,900)
Vested | $ / shares	$ 2.45
Forfeited | shares
Forfeited | $ / shares
Non vested September 30, 2024 | shares	45,423
Non vested September 30, 2024 | $ / shares	$ 2.45

The following table summarize_2

The following table summarizes activity related to outstanding Restricted Stock Awards for the nine months ended September 30, 2024: (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 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	107,604
Granted | $ / shares	$ 2.39
Vested | shares	(58,587)
Vested | $ / shares	$ 3.18
Forfeited | shares	(63,213)
Forfeited | $ / shares	$ 2.78
Non vested September 30, 2024 | shares	152,875
Non vested September 30, 2024 | $ / shares	$ 2.86

The following table summarize_3

The following table summarizes activity related to outstanding PRSAs for the nine months ended September 30, 2024: (Details) - Performance Shares [Member]	9 Months Ended
	Sep. 30, 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	64,611
Granted | $ / shares	$ 2.91
Vested | shares
Vested | $ / shares
Forfeited | shares	(68,585)
Forfeited | $ / shares	$ 3.12
Non vested September 30, 2024 | shares	44,076
Non vested September 30, 2024 | $ / shares	$ 2.98

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Dec. 31, 2020	Sep. 30, 2024	Dec. 31, 2016	Dec. 31, 2009
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period			1 year
RSUs fully vest date			Oct. 01, 2024
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average remaining amortization period			2 years 8 months 12 days
Restricted Stock [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period			4 years
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average remaining amortization period			2 years 7 months 6 days
Unamortized stock-based compensation costs			$ 284,780
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			376,094
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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Incremental shares used in calculation of diluted income per common share	70,105	33,162	90,463	33,162

The maturities of the September

The maturities of the September 30, 2024 balance of these financing leases are as follows: (Details)	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
Remainder of 2024	$ 7,581
2025	26,483
Total	$ 34,064

LINE OF CREDIT AND LONG-TERM _3

LINE OF CREDIT AND LONG-TERM DEBT (Details Narrative)			9 Months Ended
	Nov. 13, 2024 USD ($)	Feb. 20, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 24, 2016 USD ($)
Line of Credit Facility [Line Items]
Prime rate			8%
Current portion of line of credit			$ 2,730,000		$ 2,400,000
Line of credit			15,390,000		17,640,000
Payments of debt issuance costs				$ 54,334
Financing leases			34,064		70,981
Financing leases current			$ 31,330		44,498
Bank United [Member]
Line of Credit Facility [Line Items]
Minimum debt service coverage ratio			1.5
Maximum leverage ratio			4
Minimum adjusted EBITDA			$ 1,000,000
Payments of debt issuance costs			962,000
Debt issuance costs			43,000		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			18,120,000		$ 20,040,000
Current portion of line of credit			2,730,000
Line of credit			$ 15,390,000
Bank United [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Expiration date	Aug. 31, 2026
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 One [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 16,890,000
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 Two [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	16,140,000
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 Three [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	15,390,000
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 Four [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	14,640,000
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 Five [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	13,890,000
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 Six [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	13,140,000
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] | Revolving Credit Facility [Member] | Period Seven [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 12,390,000
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			11.50%
Bank United [Member] | Revolving Loan [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Prime rate Plus	2%
Payment percentage of outstanding principal amount of revolving line of credit loans	2%
Payment percentage applied to outstanding principal	50%
Payment percentage retained by lenders as amendment fee	50%

MAJOR CUSTOMERS AND VENDORS (De

MAJOR CUSTOMERS AND VENDORS (Details Narrative) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	40%	28%	35%	31%
Revenue Benchmark [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	23%	21%	24%	26%
Revenue Benchmark [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	11%	19%	12%	12%
Revenue Benchmark [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		13%	12%	10%
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			38%		30%
Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			25%		17%
Accounts Receivable [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			13%		12%
Accounts Receivable [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage					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			26%		23%
Contract Assets [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			15%		18%
Contract Assets [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			12%		15%
Accounts Payable [Member] | Vendor One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			10%

Future minimum lease payments u

Future minimum lease payments under non-cancellable operating leases as of September 30, 2024 were as follows: (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Leases
Remainder of 2024	$ 560,249
2025	2,283,354
2026	850,276
2027	111,065
2028	9,228
Total undiscounted operating lease payments	3,814,172
Less imputed interest	(200,901)
Present value of operating lease payments	$ 3,613,271	$ 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 ($)	Sep. 30, 2024	Dec. 31, 2023
Assets
Right-of-use assets, net	$ 3,334,992	$ 4,740,193
Liabilities
Current operating lease liabilities	2,118,329	1,999,058
Long-term operating lease liabilities	1,494,942	3,100,571
Total lease liabilities	$ 3,613,271	$ 5,099,629

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases
Expiration date			Apr. 30, 2026
Operating lease expense	$ 528,127	$ 529,624	$ 1,611,487	$ 1,612,713
Weighted average remaining lease term operating leases	1 year 8 months 12 days		1 year 8 months 12 days
Weighted average discount rate for its operating leases	5.50%		5.50%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 154,590	$ 205,804	$ 535,634	$ 503,850
Effective income tax rate			18.70%	17.10%
Statutory income tax rate			21%	21%
Valuation allowance released				$ 122,500

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	1 Months Ended
	Jun. 20, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Settlement amount	$ 400,000