CPI Aerostructures announces settlement with SEC

CPI Aerostructures announced a settlement with the Securities and Exchange Commission related to the Company’s previously announced restatements of certain of its financial statements for fiscal periods between January 1, 2018 and December 31, 2022. The Company, without admitting or denying the findings, agreed to a cease-and-desist order regarding Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended, and Rules 12b-20, 13a-1, 13a-11, 13a-13, and 13a-15(a) thereunder. The Company has undertaken to fully remediate its material weakness in internal control over financial reporting (“ICFR”) and have effective ICFR and disclosure controls and procedures by December 31, 2024, to publicly disclose, concurrent with the filing of the Company’s 2024 Annual report on 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 to certify its compliance. If the Company fails to comply with these undertakings, a civil monetary penalty in the amount of $400,000 will be due to the SEC by June 30, 2025. As part of the settlement, the Commission considered remedial acts promptly undertaken by the Company and cooperation afforded the Commission staff. Among other things, CPI Aero remediated all material weaknesses identified, revised its Sarbanes-Oxley compliance program, retained new personnel with expanded expertise in financial reporting, and hired a consultant to assist CPI Aero with its internal controls.