Air Industries Group reported its March quarter the way a company in the middle of a rescue usually does: the operating loss narrowed on better gross margin, while a thinned balance sheet and a credit-facility default kept the "going concern" language on the page. Revenue slipped 4.4% to $11.6 million on a changing customer-requested mix, while gross margin jumped to 22.4% from 16.8% a year earlier on that mix, the platform mix and the cost reductions put in during second-half 2025, and the GAAP net loss narrowed to $(1.0) million from $(0.99) million - roughly flat, nearer breakeven per share at $(0.21) versus $(0.27), only because the share count had grown by a third. None of that is the story. The story is that this equity stopped being an operating business some time in the spring and became a stub in consent.
In February, the company signed a reverse merger with Tenax Aerospace Acquisition, a private special-mission aviation contractor with 2025 net income of $18.6 million on $133.4 million of revenue and an adjusted-EBITDA run-rate north of $72 million. Restated in July and extended in August, the deal hands the Tenax members roughly 96% of the combined company and reduces today's Air Industries stockholders to about 4% of the shares - plus a redemption right equal to 107.3% of the deal's $3.05 reference share price, subject to the combined company's trading a year out. Tenax is the accounting acquirer; it also pays off Air Industries' roughly $26.2 million of bank and related-party debt at closing, resolving the default that the operating numbers cannot. The market has priced this as a stub: at about $2.61, the shares trade below the merger's $3.05 reference and below a book value the standalone company can no longer defend. The question is no longer whether the components business recovers; it is whether the deal closes, and what the leverage-heavy but profitable Tenax engine is worth once it carries the ticker.