What AEVEX Corp. told the SEC could break it.

Overwhelming dependence on a single customer — the U.S. Government accounted for ~84% of funded backlog at 12/31/2025 and ~74% at 3/31/2026 (all USG entities treated as one customer).

“As of December 31, 2025 and March 31, 2026, approximately 84% and 74%, respectively, of the total dollar value of our funded backlog related to the U.S Government. For purposes of evaluating our backlog, we consider all U.S. Government entities to be one customer.”

China imposed MOFCOM sanctions on AEVEX (Jan 2025, over US arms sales to Taiwan), barring China-related import/export, plus Unreliable Entity List placement and new investment bans.

“For instance, in January 2025, China imposed sanctions on AEVEX in response to sales of military equipment by the U.S. Government to Taiwan. These sanctions by China's Ministry of Commerce (MOFCOM) prohibit AEVEX from engaging in import or export activities related to China. In addition, China has subjected the Company to certain export- and import-related prohibitions and new investment bans by placing the Company on the “Unreliable Entity List” maintained by China's Ministry of Commerce.”

Business and government customer relationships depend on founder/Executive Chairman Brian Raduenz and CEO Mr. Wells and their established relationships with defense personnel.

“We believe that our success depends in part on the continued contributions of our senior management and key employees, including our founder and Executive Chairman, Mr. Raduenz, and our Chief Executive Officer, Mr. Wells. We rely on our Executive Chairman, executive officers, senior management and key employees to generate business and execute programs successfully.”