DefaultMay 13, 2026, 04:08 PM
AIR INDUSTRIES GROUP Defaults on Loan Covenant; Going Concern Doubt
AI Summary
AIR INDUSTRIES GROUP reported a net loss of $1.02 million for the first quarter of 2026 on net sales of $11.61 million. The company is in default of its minimum Fixed Charge Coverage Ratio covenant and its Current Credit Facility, which expires on September 30, 2026, will not be renewed by the lender. These factors raise substantial doubt about the company's ability to continue as a going concern.
Key Highlights
- Defaulted on Fixed Charge Coverage Ratio (FCCR) covenant with a ratio of 0.93x against a required 1.10x.
- Current Credit Facility expires September 30, 2026, and the lender has advised it will not renew.
- Substantial doubt exists about the company's ability to continue as a going concern.
- Q1 2026 Net Sales decreased to $11.61 million from $12.14 million in Q1 2025.
- Q1 2026 Net Loss was $1.02 million, compared to a $0.99 million loss in Q1 2025.
- Loss per share was $(0.21) in Q1 2026, an improvement from $(0.27) in Q1 2025.
- Total current debt increased to $25.10 million as of March 31, 2026.
- Unfilled contract values total $269.2 million, including $134.7 million in funded backlog.