CPI Aerostructures Reports Non-Reliance on Previous Financial Statements in Recent 8-K Filing

CPI Aerostructures, Inc. (NYSE: CVU) recently disclosed in a Form 8-K filing to the Securities and Exchange Commission (SEC) that its financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022, should no longer be relied upon due to errors within Note 11 “Income Taxes.” The company found that the deferred tax balancing figures were previously overstated by $2,603,986. This oversight was attributed to inadequate review, assessment, and reporting of temporary differences between book and taxable income. Consequently, the management’s report on the effectiveness of internal control over financial reporting for that period should also not be trusted.

CPI Aerostructures is actively addressing the material weakness in internal controls and the disclosure controls and procedures that led to these errors. Despite the adjustments, the company believes there won’t be a significant impact on the previously reported net deferred tax assets, net income, earnings per share, or cash flow for the twelve months ended December 31, 2022.

Due to these developments, on April 1, 2024, CPI Aerostructures filed a Notification of Late Filing on Form 12b-25 with the SEC as it was unable to submit its Annual Report on Form 10-K for the period ended December 31, 2023. The company requires extra time to finalize the correction to Note 11. CPI Aerostructures anticipates restating its 2022 deferred tax asset and liability balances by April 16, 2024, within the 2023 Form 10-K.

The company has provided a schedule of restated 2022 deferred income tax positions adjustments in Exhibit 99.1, detailing the modifications required for the previously reported balances. CPI Aerostructures confirms discussions on these matters with RSM US LLP.

This Current Report on Form 8-K contains forward-looking statements acknowledging the uncertainties and risks involved in the process. Despite plans to rectify the errors and enhance internal controls, the company cautions that the actual results could deviate from expectations.

Investors are advised not to place undue reliance on these forward-looking statements and should consider the risks outlined in the Company’s Annual Report on Form 10-K for the period ended December 31, 2022. CPI Aerostructures disclaims any obligation to update these forward-looking statements unless required by law or regulation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CPI Aerostructures’s 8K filing here.

CPI Aerostructures Company Profile

CPI Aerostructures, Inc engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. The company offers aerostructure and aerosystem assemblies, including new production and repair/overhaul of fielded wing structures and other control surfaces, rudder island, engine inlets/nacelles, engine exhaust manifolds, aircraft doors and windows, aircraft steps and racks, other aircraft secondary structures, airborne pod structures and integration of internal systems, radar housing structures, panel assemblies, and mechanical door locking and canopy lifting systems.