Air Industries Group (AIRI) Registration Filing summary

Company overview and business model

• Leading manufacturer of precision components and assemblies for aerospace and defense prime contractors, with products used in mission-critical operations for military and commercial aviation end-users.

• Operates as both Tier One and Tier Two supplier, often holding exclusive or primary supplier status for high-precision parts and assemblies.

• All manufacturing is conducted in the U.S. at two state-of-the-art facilities in New York and Connecticut, supporting three subsidiaries.

• Strategic investments in capital equipment, tooling, and processes have been made to bolster competitiveness and support growth.

• Holds long-term agreements with major customers and has a history of quality and reliability dating back to 1941.

Financial performance and metrics

• Net sales for 2023 were $51.5 million; sales for the nine months ended September 30, 2024, were $40.2 million, up 5.6% year-over-year.

• Backlog was $98.3 million at year-end 2023, increasing to $105.2 million by September 30, 2024.

• Net loss for the nine months ended September 30, 2024, was $812,000, a significant improvement from a $2.3 million loss in the prior year.

• Total unfilled contract value as of September 30, 2024, was $191.9 million, including backlog and potential orders under LTAs.

• As of September 30, 2024, total indebtedness was approximately $24.98 million, with significant maturities in 2025 and 2026.

Use of proceeds and capital allocation

• Net proceeds from securities sales will be used for general corporate purposes, including debt repayment, capital expenditures, acquisitions, working capital, and operating expenses.

• Proceeds from the at-the-market offering may specifically be used to repay outstanding indebtedness, fund capital expenditures, and address working capital needs.

• Management has broad discretion over the use of proceeds, and allocation may vary based on operational needs.