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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 16, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	AIR INDUSTRIES GROUP
Entity Central Index Key	0001009891
Trading Symbol	AIRI
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		27,743,867

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets
Cash and Cash Equivalents	$ 917,000	$ 630,000
Accounts Receivable, Net of Allowance for Doubtful Accounts of $610,000 and $494,000, respectively	6,713,000	5,464,000
Inventory	30,949,000	31,141,000
Prepaid Expenses and Other Current Assets	190,000	214,000
Prepaid Taxes	49,000	49,000
Assets Held for Sale, net	12,341,000	10,082,000
Total Current Assets	51,159,000	47,580,000
Property and Equipment, Net	8,638,000	10,050,000
Capitalized Engineering Costs - Net of Accumulated Amortization of $5,874,000 and $5,380,000, respectively	2,095,000	2,188,000
Deferred Financing Costs, Net, Deposits and Other Assets	848,000	665,000
Goodwill	272,000	272,000
TOTAL ASSETS	63,012,000	60,755,000
Current Liabilities
Notes Payable and Capitalized Lease Obligations - Current Portion	23,575,000	23,131,000
Notes Payable - Related Party - Current Portion	472,000	262,000
Accounts Payable and Accrued Expenses	10,070,000	10,872,000
Deferred Gain on Sale - Current Portion	38,000	38,000
Deferred Revenue	865,000	931,000
Liabilities Directly Associated with Assets Held for Sale	3,327,000	2,795,000
Income Taxes Payable	20,000	20,000
Total Current Liabilities	38,367,000	38,049,000
Long Term Liabilities
Notes Payable and Capitalized Lease Obligations - Net of Current Portion	3,579,000	1,798,000
Notes Payable - Related Party - Net of Current Portion	2,388,000	1,650,000
Deferred Gain on Sale - Net of Current Portion	266,000	295,000
Deferred Rent	1,173,000	1,197,000
TOTAL LIABILITIES	45,773,000	42,989,000
Commitments and Contingencies
Stockholders' Equity
Preferred Stock, par value $.001 - Authorized 3,000,000 shares, outstanding: 0 at September 30, 2018 and December 31, 2017.
Common Stock - Par Value $.001 - Authorized 50,000,000 Shares, 26,768,914 and 25,219,805 Shares Issued and Outstanding as of September 30, 2018 and December 31, 2017, respectively	26,000	25,000
Additional Paid-In Capital	73,594,000	71,272,000
Accumulated Deficit	(56,381,000)	(53,531,000)
TOTAL STOCKHOLDERS' EQUITY	17,239,000	17,766,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 63,012,000	$ 60,755,000

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 610,000	$ 494,000
Accumulated amortization	$ 5,874,000	$ 5,380,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	26,768,914	25,219,805
Common stock, shares outstanding	26,768,914	25,219,805

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net Sales	$ 11,043,000	$ 13,690,000	$ 35,200,000	$ 40,235,000
Cost of Sales	9,683,000	12,133,000	30,249,000	34,704,000
Gross Profit	1,360,000	1,557,000	4,951,000	5,531,000
Operating expenses	(1,975,000)	(2,507,000)	(7,238,000)	(8,419,000)
Loss from Operations	(615,000)	(950,000)	(2,287,000)	(2,888,000)
Interest and Financing Costs	(833,000)	(1,865,000)	(2,471,000)	(3,633,000)
Loss on extinguishment of debt		(150,000)		(150,000)
Gain on Sale of Subsidiary		50,000		338,000
Other Income (Expense), Net	88,000	2,000	175,000	(123,000)
Loss before Income Taxes	(1,360,000)	(2,913,000)	(4,583,000)	(6,456,000)
Provision for (Benefit from) Income Taxes		29,000	2,000	(170,000)
Loss from Continuing Operations	(1,360,000)	(2,942,000)	(4,585,000)	(6,286,000)
(Loss) gain from Discontinued Operations, net of tax	(1,770,000)	62,000	172,000	280,000
Net Loss	(3,130,000)	(2,880,000)	(4,413,000)	(6,006,000)
Less: Cumulative preferred stock dividends				(913,000)
Net Loss attributable to common stockholders	$ (3,130,000)	$ (2,880,000)	$ (4,413,000)	$ (6,919,000)
Net loss per share - Basic
Continuing Operations	$ (0.05)	$ (0.22)	$ (0.17)	$ (0.47)
Discontinued Operations	(0.07)		0.01	0.02
Net loss per share - Diluted
Continuing Operations	(0.05)	(0.22)	(0.17)	(0.47)
Discontinued Operations	$ (0.07)		$ 0.01	$ 0.02
Weighted average shares outstanding - Basic	26,768,914	13,463,372	26,295,703	13,463,372
Weighted average shares outstanding- Diluted	26,805,672	13,463,372	26,345,919	13,463,372

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (4,413,000)	$ (6,006,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation of property and equipment	2,165,000	2,026,000
Amortization of intangible assets		630,000
Amortization of capitalized engineering costs	493,000	278,000
Bad debt expense (recovery)	190,000	(10,000)
Non-cash employee compensation expense	308,000	9,000
Amortization of deferred financing costs	158,000	179,000
Deferred gain on sale of real estate	(29,000)	(29,000)
Gain on sale of subsidiary		(338,000)
Loss on assets held for sale	930,000
Loss on extinguishment of debt		150,000
Amortization of debt discount on convertible notes payable	740,000	1,544,000
Changes in Assets and Liabilities (Increase) Decrease in Operating Assets:
Accounts receivable	(1,167,000)	(1,979,000)
Inventory	(836,000)	609,000
Prepaid expenses and other current assets	89,000	7,000
Prepaid taxes		388,000
Deposits and other assets	(1,275,000)	(1,185,000)
Increase (Decrease) in Operating Liabilities:
Accounts payable and accrued expense	(1,736,000)	(4,335,000)
Deferred rent	4,000	28,000
Deferred revenue	1,513,000	280,000
NET CASH USED IN OPERATING ACTIVITIES	(2,866,000)	(7,754,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalized engineering costs	(400,000)	(724,000)
Purchase of property and equipment	(629,000)	(607,000)
Proceeds from sale of subsidiary		4,260,000
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(1,029,000)	2,929,000
CASH FLOWS FROM FINANCING ACTIVITIES
Note payable - revolver - net	3,615,000	(6,316,000)
Payments of note payable - term notes	(1,108,000)	(2,808,000)
Payments of capital lease obligations	(958,000)	(933,000)
Proceeds from notes payable issuances- related party	803,000	2,553,000
Proceeds from notes payable issuances	70,000	4,184,000
Deferred financing costs	(125,000)	(50,000)
Proceeds from the issuance of common stock	1,885,000	7,762,000
Payment of notes payable issuances		(463,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES	4,182,000	3,929,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	287,000	(896,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	630,000	1,304,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	917,000	408,000
Supplemental cash flow information
Cash paid during the period for interest	1,053,000	1,684,000
Cash paid during the period for income taxes	2,000
Supplemental schedule of non-cash investing and financing activities
Common stock issued for notes payable - related party	330,000	1,754,000
Common stock issued for notes payable	30,000
Issuance of notes payable-related party	34,000
Preferred shares issued for PIK dividends		913,000
Issuance of Convertible notes payable - related party		1,885,000
Placement agent warrants issued		$ 85,000

Formation and Basis of Presentation

9 Months Ended

Sep. 30, 2018

Formation and Basis of Presentation [Abstract]

FORMATION AND BASIS OF PRESENTATION

Note 1. FORMATION AND BASIS OF PRESENTATION

Organization

On August 30, 2013, Air Industries Group, Inc. (“Air Industries Delaware”) changed its state of incorporation from Delaware to Nevada as a result of a merger with and into its newly formed wholly-owned subsidiary, Air Industries Group, a Nevada corporation (“Air Industries Nevada” or “AIRI”) and the surviving entity, pursuant to an Agreement and Plan of Merger. The reincorporation was approved by the stockholders of Air Industries Delaware at its 2013 Annual Meeting of Stockholders. Air Industries Nevada is deemed to be the successor.

The accompanying consolidated financial statements presented are those of AIRI, and its wholly-owned subsidiaries; (collectively, “the Company”) Air Industries Machining Corp. (“AIM”), Welding Metallurgy, Inc. (“WMI” or “Welding”), Miller Stuart, Inc. (“Miller Stuart”), Nassau Tool Works, Inc. (“NTW”), Woodbine Products, Inc. (“Woodbine” or “WPI”), Decimal Industries, Inc. (“Decimal”), Eur-Pac Corporation (“Eur-Pac” or “EPC”), Electronic Connection Corporation (“ECC”), AMK Welding, Inc. (“AMK”), Air Realty Group, LLC (“Air Realty”) The Sterling Engineering Corporation (“Sterling”), and Compac Development Corporation (“Compac”). Miller Stuart and Woodbine were merged into Welding during 2017.

Going Concern

The Company incurred losses from operations of $2,287,000 and $12,758,000 and net losses of $4,413,000 and $22,551,000 for the nine months ended September 30, 2018 and the year ended December 31, 2017, respectively. The Company also had negative cash flows from operations for the nine months ended September 30, 2018 and for the years ended December 31, 2017 and 2016. In 2016, the Company disposed of the real estate on which an operating subsidiary was located through a sale leaseback transaction. Since January 1, 2016, the Company has sold in excess of $32,500,000 in debt and equity securities to fund its operations. In January 2017, the Company sold one of its operating subsidiaries, AMK Welding Inc. Furthermore, at December 31, 2017, the Company was not in compliance with financial covenants under its Amended and Restated Revolving Credit, Term Loan and Security Agreement with PNC Bank (the “Loan Facility”). On May 30, 2018 the Company entered into a Sixteenth Amendment of its Loan Facility with PNC Bank which provided for an extension of the Loan Facility to December 31, 2018 and that, among other things, waived the covenant violation at December 31, 2017 and March 31, 2018 and instituted new covenants. The Company was in compliance with these covenants at March 31, 2018, June 30, 2018 and September 30, 2018.

The continuation of the Company’s business is dependent upon its ability to achieve profitability and positive cash flow and, pending such achievement, future issuances of equity or other financing to fund ongoing operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission.

Reclassifications

Certain account balances in 2017 have been reclassified to conform to the current period presentation.

Sale of AMK

On January 27, 2017, the Company sold all of the outstanding shares of AMK to Meyer Tool, Inc., pursuant to a Stock Purchase Agreement dated January 27, 2017 for a purchase price of $4,500,000, net of a working capital adjustment of ($163,000), plus additional quarterly payments, not to exceed $ 1,500,000, equal to five percent (5%) of Net Revenues of AMK commencing April 1, 2017. The Company recorded a $200,000 gain on the sale of AMK. The gain on sale was the difference between the non-contingent payments and the carrying value of the disposed business. The Company has made an accounting policy decision to record the contingent consideration as it is determined to be realizable.

The proceeds of the sale of AMK were applied as follows: $1,700,000 to the payment of the Term Loan (as defined in the PNC Loan Agreement), $1,800,000 to the payment of outstanding Revolving Advances (as defined in the PNC Loan Agreement), and $500,000 to the payment of existing accounts payable. The remaining $500,000 was applied to outstanding accounts payable and reduced the amount of the Revolving Advance.

Pending Sale of Welding Metallurgy Inc.

On March 21, 2018, the Company signed an agreement to sell all of the outstanding shares of WMI including its wholly owned subsidiaries Miller Stuart, Woodbine, Decimal and Compac Development Corp (“WMI Group”), to CPI Aerostructures, Inc. (“CPI”), pursuant to a Stock Purchase Agreement (“SPA”) for a purchase price of $9,000,000, subject to a customary working capital adjustment. In June 2018, the Company terminated the sale to CPI.

On October 3, 2018, the Company entered into a stipulation with CPI pursuant to which it agreed to deliver to CPI no later than November 16, 2018, audited financial statements of WMI Group. CPI will have three weeks after receipt of the audited financial statements to close the transaction in accordance with the terms of the SPA. The stipulation contemplates that the parties will enter into an amendment to the SPA incorporating the terms of the Stipulation into the SPA. On November 9, 2018, the Court issued an Order directing that the Company and CPI enter into an amendment to the SPA which, among other things, confirms the parties’ obligations with respect to the delivery of the audited financial statements of WMI Group and obligation to close the transaction within 21 days thereafter. As of the date of this report, the audit of WMI Group has not been completed nor have the parties entered into an amendment to the SPA.

The sale is subject to certain conditions, including CPI obtaining financing for the amount of the purchase price, and requires an escrow deposit of $2,000,000 to cover the working capital adjustment and the Company’s obligation to indemnify CPI against damages arising out of the breach of the Company’s representations and warranties and obligations under the SPA.

Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Note 2. DISCONTINUED OPERATIONS

As discussed above, in March 2018, the Company entered into an agreement to sell WMI Group. As such, these businesses are reported as discontinued operations for the three and nine months ended September 30, 2018 and 2017. As required, the Company has retrospectively recast its consolidated statements of operations and balance sheets for all periods presented. The Company has not segregated the cash flows of these businesses in the consolidated statements of cash flows. Management was also required to make certain assumptions and apply judgment to determine historical expenses related to the discontinued operations presented in prior periods. Unless noted otherwise, discussion in the Notes to Consolidated Financial Statements refers to the Company’s continuing operations.

At September 30, 2018, the Company has recorded a liability for loss on assets held for sale of $930,000.

The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net loss from discontinued operations presented separately in the consolidated statement of operations for the three and nine months ended September 30, 2018 and September 30, 2017:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net revenue	$	4,951,000		$	3,588,000		$	11,396,000		$	10,280,000
Cost of sales		3,935,000			2,988,000			9,269,000			8,033,000
Gross profit		1,016,000			600,000			2,127,000			2,247,000
Operating expenses:
Selling, general and administrative		(298,000	)		(531,000	)		(1,033,000	)		(1,957,000	)
Loss on assets held for sale		(2,493,000	)		-			(930,000	)		-
Total Operating expenses		(2,791,000	)		(531,000	)		(1,963,000	)		(1,957,000	)
Interest income (expense) and financing costs		1,000			(12,000	)		1,000			(12,000	)
Other Income, net		4,000			5,000			7,000			2,000
Gain (loss)		-			-			-			-
Loss from discontinued operations before income taxes		(1,770,000	)		62,000			172,000			280,000
Provision for income taxes		-			-			-			-
Net income (loss) from discontinued operations	$	(1,770,000	)	$	62,000		$	172,000		$	280,000

Non-cash operating amounts for discontinued operations for the three and nine month periods ended September 30, 2018 include depreciation of $41,000 and $124,000, respectively. Capital expenditures were $0. There were no other significant non-cash operating amounts or investing items of the discontinued operations for the periods.

Non-cash operating amounts for discontinued operations for the three and nine month periods ended September 30, 2017 include depreciation of $41,000 and $131,000, respectively, and amortization of $49,000 and $159,000, respectively. Capital expenditures were $29,000. There were no other significant non-cash operating amounts or investing items of the discontinued operations for the periods.

See Note 6 for a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operations to the total assets and liabilities of the disposal group classified as held for sale that are presented separately in the consolidated balance sheets.

Subsequent Events

On April 30, 2018 Eur Pac Corporation (EPC) received a “Notice of Proposed Debarment” from the Department of the Navy – its principal customer. The proposed debarment would prohibit EPC from bidding on and executing on future contracts with the Federal Government. Despite this action, EPC would be entitled to complete existing contracts that had already been awarded. Immediately after receiving this notice, EPC and Air Industries retained counsel to appeal the proposed debarment, and submitted information in opposition to the proposed debarment, and EPC representatives met with the Navy to discuss the matter.

On November 8, 2018 EPC received formal notice from the Department of the Navy that EPC’s opposition to debarment was rejected and that the EPC was debarred from future government contracts until October 29, 2020. Management is considering completing existing contracts that had already been awarded, and management’s plan is to eventually close EPC in the first or second quarter of 2019. Management has determined that the impact of the eventual closing of Eur Pac is immaterial to the September 30, 2018 financial position of the Company. EPC’s net sales for the three and nine months ended September 30, 2018 were $310,000 and $1,554,000, respectively. Also refer to Notes 7 and 8 that discuss subsequent events.

Management has evaluated subsequent events through the date of this filing.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principal Business Activity

The Company, through its AIM subsidiary, is primarily engaged in manufacturing aircraft structural parts, and assemblies for prime defense contractors in the aerospace industry in the United States. NTW is a manufacturer of aerospace components, principally landing gear for F-16 and F-18 fighter aircraft. Welding Metallurgy is a specialty welding and products provider whose significant customers include the world’s largest aircraft manufacturers, subcontractors, and original equipment manufacturers. Miller Stuart is a manufacturer of aerospace components whose customers include major aircraft manufacturers and the US Military. Miller Stuart specializes in electromechanical systems, harness and cable assemblies, electronic equipment and printed circuit boards. Woodbine is a manufacturer of aerospace components whose customers include major aircraft component suppliers. Eur-Pac specializes in military packaging and supplies. Eur-Pac’s primary business is “kitting” of supplies for all branches of the United States Defense Department including ordnance parts, hose assemblies, hydraulic, mechanical and electrical assemblies. Compac specializes in the manufacture of RFI/EMI (Radio Frequency Interference Electro-Magnetic Interference) shielded enclosures for electronic components. The Company’s customers consist mainly of publicly traded companies in the aerospace industry.

Assets Held for Sale

The Company classifies assets as held for sale and suspends depreciation and amortization when approval at the appropriate level has been provided, the assets can be immediately removed from operations, an active program has begun to locate a buyer, the assets are being actively marketed for sale at or near their current fair value, significant changes to the plan of sale are not likely and the sale is probable within one year. Upon classification as held for sale, long-lived assets are no longer depreciated, and an assessment of impairment is performed to identify and expense any excess of carrying value over fair value less costs to sell. Subsequent changes to the estimated fair value less costs to sell will impact the measurement of assets held for sale. To the extent fair value increases, any impairment previously recorded is reversed. If the carrying value of the assets held for sale exceeds the fair value less costs to sell, the Company will record a loss for the amount of the excess.

If the Company decides not to sell previously classified assets held for sale, the assets are reclassified back to their original asset group in the period that the assets are determined to no longer be held for sale. The assets are recorded at the lower of the carrying value before being classified as held for sale adjusted for depreciation that would have been recognized during the time they were classified as held for sale or fair value at the date the Company decided not to sell.

As of December 31, 2017 the Company held for sale WMI Group. In June 2018, upon the termination of its agreement to sell the WMI Group to CPI, management of the Company decided not to hold for sale the WMI Group. Upon the change in plan of sale, the Company reclassified the assets held for sale at the lower of the carrying value before being classified as held for sale adjusted for depreciation that would have been recognized during the time they were classified as held for sale or fair value at the date the Company decided not to sell and liabilities held for sale were also reclassified to their liability group. For presentation purposes, the assets and liabilities previously held for sale as of December 31, 2017 were reclassified in the December 31, 2017 balance sheet in the accompanying financial statements back to their original asset and liability groups at their previous carrying values. In connection with this reclassification, the Company recorded a gain of $1,563,000 during the quarter ended June 30, 2018 that was reversed in the quarter ended September 30, 2018 that resulted in no gain or loss on change in assets held for sale.

As of September 30, 2018 the Company again held for sale WMI Group. On September 30, 2018 the Company recorded a loss on assets held for sale of $930,000 during the nine months ended September 30, 2018. On October 3, 2018, the Company entered into a stipulation with CPI pursuant to which it agreed to deliver to CPI no later than November 16, 2018, audited financial statements of WMI Group. CPI will have three weeks after receipt of the audited financial statements to close the transaction in accordance with the terms of the SPA. The stipulation contemplates that the parties will enter into an Amendment to the SPA incorporating the terms of the Stipulation into the SPA. On November 9, 2018, the Court issued an Order directing that the Company and CPI enter into an Amendment to the SPA which, among other things, confirms the parties’ obligations with respect to the delivery of the audited financial statements of WMI Group and obligation to close the transaction within 21 days thereafter.

Inventory Valuation

For annual periods, the Company values inventory at the lower of cost on a first-in-first out basis or an estimated net realizable value. The Company does not take physical inventories at interim quarterly reporting periods. As such, approximately 50% of the inventory value at September 30, 2018 has been estimated using a gross profit percentage based on sales of previous periods to the net sales of the current period, as management believes that the gross profit percentage on these items are materially consistent from period to period. The remainder of the inventory value at September 30, 2018 is estimated based on the Company’s standard cost perpetual inventory system, as management believes the perpetual system computed value for these items provides a better estimate of value for that inventory. Adjustments to reconcile the annual physical inventory to the Company’s books are treated as changes in accounting estimates and are recorded in the fourth quarter. Inventories consist of the following at:

	September 30,			December 31,
	2018			2017
	(unaudited)
Raw Materials	$	4,912,000		$	5,346,000
Work In Progress		19,787,000			19,947,000
Finished Goods		10,783,000			10,122,000
Inventory Reserve		(4,533,000	)		(4,274,000	)
Total Inventory	$	30,949,000		$	31,141,000

Credit and Concentration Risks

There were three customers that represented 67.4% and 72.1% of total net sales for the three months ended September 30, 2018 and 2017, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 2018		September 2017
	(Unaudited)		(Unaudited)
1		27.7		27.5
2		26.4		23.7
3		13.3		*
4		**		20.9

Customer was less than 10% of sales at September 30, 2017.

Customer was less than 10% of sales at September 30, 2018.

There were three customers that represented 69.1% and 68.8% of total sales for the nine months ended September 30, 2018 and 2017, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 2018		September 2017
	(Unaudited)		(Unaudited)
1		31.8		25.4
2		26.3		22.0
3		11.0		*
4		**		21.4

Customer was less than 10% of sales at September 30, 2017.

Customer was less than 10% of sales at September 30, 2018.

There were three customers that represented 67.9% and 68.7% of gross accounts receivable at September 30, 2018 and December 31, 2017, respectively. This is set forth in the table below.

Customer	Percentage of Receivables
	September 2018		December 2017
	(Unaudited)
1		37.8		41.9
2		19.9		14.6
3		10.2		*
4		**		12.2

Customer was less than 10% of gross accounts receivable at December 31, 2017.

Customer was less than 10% of gross accounts receivable at September 30, 2018.

During the year, the Company had occasionally maintained balances in its bank accounts that were in excess of the FDIC limit. The Company has not experienced any losses on these accounts.

The Company has several key sole-source suppliers of various parts that are important for one or more of its products. These suppliers are its only source for such parts and, therefore, in the event any of them were to go out of business or be unable to provide parts for any reason, its business could be severely harmed.

Earnings per share

Basic earnings per share is computed by dividing the net income applicable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Potentially dilutive shares, using the treasury stock method, are included in the diluted per-share calculations for all periods when the effect of their inclusion is dilutive.

The following is a reconciliation of the denominators of basic and diluted earnings per share computations:

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		26,768,914		13,463,372		26,295,703		13,463,372
Effect of dilutive stock options and warrants		36,758		-		50,216		-
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		26,805,672		13,463,372		26,345,919		13,463,372

The following securities have been excluded from the calculation as the exercise price was greater than the average market price of the common shares:

	Nine Months Ended
	September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)
Convertible Preferred Stock		-		2,631,000
Stock Options		215,000		516,000
Warrants		1,480,000		1,479,000
		1,695,000		4,626,000

The following securities have been excluded from the calculation even though the exercise price was less than the average market price of the common shares because the effect of including these potential shares was anti-dilutive due to the net loss incurred during that period:

	September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)
Stock Options		695,000		22,000
Warrants		480,000		-
		1,175,000		22,000

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with FASB ASC 718, “Compensation – Stock Compensation.” Under the fair value recognition provision of the ASC, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options and warrants granted using the Black-Scholes-Merton option pricing model. Stock based compensation amounted to $308,000 and $9,000 for the nine months ended September 30, 2018 and 2017, respectively, and was included in operating expenses on the accompanying Condensed Consolidated Statements of Operations.

Goodwill

Goodwill represents the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. The goodwill amount of $272,000 at September 30, 2018 and December 31, 2017 relates to the acquisitions of NTW $163,000 and ECC $109,000.

Goodwill is not amortized, but is tested at least annually for impairment, or if circumstances occur that more likely than not reduce the fair value of the reporting unit below its carrying amount.

The Company has determined that there has been no impairment of goodwill at September 30, 2018.

Recently Issued Accounting Pronouncements

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes existing revenue recognition guidance, including ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts, and outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. On July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. The Company will adopt the New Revenue Standard effective December 31, 2018, as allowed under the Company’s Emerging Growth Status designation.

The new guidance allows for two transition methods in application - (i) retrospective to each prior reporting period presented, or (ii) prospective with the cumulative effect of adoption recognized on December 31, 2018 (also known as the modified retrospective approach). The Company is still assessing which transition method to adopt. This guidance requires additional disclosures of the amount by which each financial statement line item affected in the current reporting period during 2018 as compared to the guidance that was in effect before the change, and an explanation of the reasons for the significant changes.

The Company currently recognizes the majority of its revenues based on shipment of products (at a point in time). Currently, some contracts the Company enters into with customers are accounted for on a percentage of completion or milestone basis. For contracts with a significant amount of development and/or requiring the delivery of a minimal number of units, revenue and profit are recognized using the percentage-of-completion cost-to-cost method or a milestone to measure progress. For contracts that require the Company to produce a substantial number of similar items without a significant level of development, the Company currently records revenue and profit using the units-of-delivery method as the basis for measuring progress on the contract.

Under ASC 606, revenue will be recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). The Company may also have more performance obligations in our contracts under ASC 606, which may impact the timing of recording sales and operating profit, including those where sales recognition is deferred pending the incurrence of costs.

The Company plans to adopt the New Revenue Standard on December 31, 2018 as allowed under their Emerging Growth Status designation.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. The Company has been gathering the lease agreement data and has begun to analyze the financial impact to the consolidated financial statements.

In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11 “Leases (Topic 842): Targeted Improvements” (ASU 2018-11). ASU 2018-10 clarifies certain areas within ASU 2016-02. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 allows entities an additional transition method to the existing requirements whereby an entity could adopt the provisions of ASU 2016-02 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. ASU 2018-11 also allows a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are present. An entity that elects to use the practical expedients will, in effect, continue to account for leases that commenced before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. ASU 2016-02, ASU 2018-10 and ASU 2018-11 will be effective for the Company’s fiscal year beginning April 1, 2019 and subsequent interim periods. The Company’s current lease arrangements expire through 2021 and the Company is currently evaluating the impact the adoption of these ASUs will have on the Company’s condensed consolidated financial statements.

In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers (Topic 606) (“ASU 2016-10”). The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2016-10 affect the guidance in ASU 2014-09, Revenue from Contracts with Customers, which is not yet effective. The effective date and transition requirements of ASU 2016-10 are the same as the effective date and transition requirements of ASU 2014-09. They are effective prospectively for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The Company is currently assessing the impact of the adoption of these amendments on its consolidated financial statements.

In May 2016, the FASB issued Accounting Standards Update No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow -Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients. These amendments are effective at the same date that Topic 606 is effective. Topic 606 is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Topic 606 is effective for nonpublic entities one year later. The Company is currently assessing the impact of the adoption of the amendments to Topic 606 and these amendments on its consolidated financial statements.

In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842),” which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). The revenue standard is effective for annual periods beginning after December 15, 2017. ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements.

In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update will be effective for all interim and annual reporting periods beginning after December 15, 2018. The Company is currently assessing the impact of the adoption of these amendments on its consolidated financial statements.

In March 2018, the FASB issued Accounting Standards Update No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). ASU 2018-05 adds various SEC paragraphs pursuant to the issuance of the December 2017 SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB No. 118”), which was effective immediately. SAB No.118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Cuts and Jobs Act. The adoption of ASU 2018-05 had no material impact on the Company’s consolidated financial statements as of and for the three and nine months ended September 30, 2018. See Note 10, Income Taxes, for disclosures related to this amended guidance.

In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share based compensation. The guidance is effective for the Company for the fiscal year beginning January 1, 2020. While the exact impact of this standard is not known, the guidance is not expected to have a material impact on the Company’s consolidated financial statements, as non-employee stock compensation is nominal relative to the Company’s total expenses as of September 30, 2018.

In October 2018, the FASB issued ASU No. 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” (“ASU 2018-17”). This ASU reduces the cost and complexity of financial reporting associated with consolidation of variable interest entities (VIEs). A VIE is an organization in which consolidation is not based on a majority of voting rights. The new guidance supersedes the private company alternative for common control leasing arrangements issued in 2014 and expands it to all qualifying common control arrangements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently assessing the impact the adoption of ASU 2018- 17 will have on the Company’s condensed consolidated financial statements.

The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

Property and Equipment

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Note 4. PROPERTY AND EQUIPMENT

The components of property and equipment at September 30, 2018 and December 31, 2017 consisted of the following:

	September 30,			December 31,
	2018			2017
	(unaudited)
Land	$	300,000		$	300,000
Buildings and Improvements		1,650,000			1,650,000		31.5 years
Machinery and Equipment		11,590,000			11,554,000		5 - 8 years
Capital Lease Machinery and Equipment		6,534,000			6,534,000		5 - 8 years
Tools and Instruments		9,124,000			8,538,000		1.5 - 7 years
Automotive Equipment		172,000			172,000		5 years
Furniture and Fixtures		316,000			311,000		5 - 8 years
Leasehold Improvements		528,000			528,000		Term of Lease
Computers and Software		409,000			406,000		4 - 6 years
Total Property and Equipment		30,623,000			29,993,000
Less: Accumulated Depreciation		(21,985,000	)		(19,943,000	)
Property and Equipment, net	$	8,638,000		$	10,050,000

Depreciation expense for the three months ended September 30, 2018 and 2017 was $681,000 and $575,000, respectively. Depreciation expense for the nine months ended September 30, 2018 and 2017 was $2,042,000 and $1,938,000, respectively.

Assets held under capitalized lease obligations are depreciated over the shorter of their related lease terms or their estimated productive lives. Depreciation of assets under capital leases is included in depreciation expense for 2018 and 2017. Accumulated depreciation on these assets was approximately $4,576,000 and $3,595,000 as of September 30, 2018 and December 31, 2017, respectively.

Assets Held for Sale and Liabilities Directly Associated

9 Months Ended

Sep. 30, 2018

Assets Held For Sale And Liabilites Direclty Associated

ASSETS HELD FOR SALE AND LIABILITES DIRECTLY ASSOCIATED

Note 5. ASSETS HELD FOR SALE AND LIABILITES DIRECTLY ASSOCIATED

WMI Group

As discussed in Note 1, on March 21, 2018, the Company signed a SPA to sell all of the outstanding shares of WMI Group to CPI for a purchase price of $9,000,000, subject to a working capital adjustment, and a contingent payment of $1,000,000. At September 30, 2018 and December 31, 2017, the Company reclassified its assets held for sale and the liabilities directly associated to these assets. The components of these assets and liabilities are as follows:

Components of Assets Held for Sale and Liabilities Directly Associated

	September 30, 2018			December 31, 2017
Assets Held for Sale
Accounts Receivable, net of allowance for doubtful accounts	$	1,945,000		$	2,217,000
Inventory, net of reserves		9,093,000			8,065,000
Prepaid and other assets		1,479,000			485,000
Property and equipment, net of accumulated depreciation		754,000			878,000
Impairment of Assets Held for Sale		(930,000	)		(1,563,000	)

Assets Held for Sale, net	$	12,341,000		$	10,082,000

Accounts payable and accrued expenses		1,074,000			2,138,000
Deferred Revenue		2,100,000			521,000
Notes Payable & Capital lease obligations		-			11,000
Deferred rent		153,000			125,000

Liabilities directly associated to Assets Held for Sale	$	3,327,000		$	2,795,000

Additionally, WMI Group’s operations were previously reported in the Company’s Aerostructures & Electronics segment. The amounts below represent WMI Group’s operations that have been excluded from this segment for the three month and nine month periods ended September 30, 2018 and 2017, respectively:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
	(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)
Segment Data
Aerostructures and Electronics
Net Sales	$	4,951,000		$	3,588,000	$	11,396,000	$	10,280,000
Gross Profit		1,016,000			600,000		2,127,000		2,247,000
Pre Tax (Loss) Income		(1,770,000	)		62,000		172,000		280,000
Assets		12,341,000			16,959,000		12,341,000		16,959,000

Notes Payable and Capital Lease Obligations

9 Months Ended

Sep. 30, 2018

Notes and Loans Payable [Abstract]

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS

Note 6. NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS

Notes payable and capital lease obligations consist of the following:

	September 30,			December 31,
	2018			2017
	(unaudited)
Revolving credit note payable to PNC Bank N.A. (“PNC”)	$	20,070,000		$	16,455,000
Term loans, PNC		2,363,000			3,471,000
Capital lease obligations		2,115,000			3,073,000
Related party notes payable, net of debt discount		2,860,000			1,912,000
Convertible notes payable-third parties, net of debt discount		2,606,000			1,930,000
Subtotal		30,014,000			26,841,000
Less: Current portion of notes and capital obligations		(24,047,000	)		(23,393,000	)
Notes payable and capital lease obligations, net of current portion	$	5,967,000		$	3,448,000

PNC Bank N.A. (“PNC”)

The Company has a Loan Facility with PNC secured by substantially all of its assets which has been amended many times since 2013.

The Loan Facility was amended on May 30, 2018 (the “Sixteenth Amendment”). The Sixteenth Amendment provides for a $20,000,000 revolving loan and a Term Loan with a balance of $2,363,000 at September 30, 2018.

Under the terms of the Loan Facility, as amended, the revolving loan and the term loan now bear interest at (a) the sum of the Alternate Base Rate plus three percent (3%) with respect to Domestic Rate Loans, and (b) the sum of the Eurodollar rate plus four and one-half percent (4.5%) with respect to Eurodollar Rate Loans. Both the revolving loan and the term loan mature on December 31, 2018 and are classified with the current portion of notes and capital lease obligations.

The Sixteenth Amendment waived the Fixed Charge Coverage Ratio covenant violations for the periods ending September 30, 2017, December 31, 2017 and March 31, 2018. The Sixteenth Amendment imposes minimum EBITDA (as defined in the Loan Agreement) covenants of not less than (i) $75,000 for the three-month period ending March 31, 2018, (ii) $485,000 for the six month period ending June 30, 2018, and (iii) $1,200,000 for the nine-month period ending September 30, 2018. The Company complied with these new covenants for the three-months ended March 31, 2018, the six-month period ended June 30, 2018 and the nine-month period ended September 30, 2018. In addition, the Company is prohibited from paying dividends to its stockholders and limits capital expenditures. In connection with the Sixteenth Amendment; the Company paid PNC a fee of $125,000 in two installments and reimbursed it for the fees and expenses of its counsel.

On June 19, 2017, the Company entered into the Fifteenth Amendment to the Loan Facility, which waived the failure to comply with the minimum EBITDA covenant for the periods ended December 31, 2016 and March 31, 2017 and the Capital Expenditures covenant for the period ended December 31, 2016. The amendment also requires that the Company maintain at all times a Fixed Charge Coverage Ratio, tested quarterly on a consolidated basis beginning September 30, 2017, as follows: (i) 1.00 to 1.00 for the quarter ending September 30, 2017, tested based upon the prior three (3) months, (ii) 1.05 to 1.00 for the quarter ending December 31, 2017, tested based upon the prior six (6) months and (iii) 1.05 to 1.00 for the quarter ending March 31, 2018, tested based upon the prior nine months and that we maintain EBITDA of not less than $345,000 for the period ending September 30, 2017. The amendment also provided that we were not required to maintain a Fixed Charge Coverage Ratio and that no testing was required to the Fixed Charge Coverage Ratio for the periods ending December 31, 2016 and June 30, 2017 and that the Company is not required to maintain a Fixed Charge Coverage Ratio and that no testing will be required of the Fixed Charge Coverage Ratio for the period ending June 30, 2017. In addition, the Fifteenth Amendment reduced the weekly payments the Company is required to make to reduce our $2,244,071 over-advance under the revolving credit facility as of June 19, 2017 from $100,000 to $25,000 per week during the period commencing May 22, 2017 through and including July 10, 2017. At December 31, 2017, the over-advance had been paid in full. The Company paid $50,000 to PNC in connection with the amendment and reimbursed PNC’s counsel fees.

As of September 30, 2018, the Company’s debt to PNC in the amount of $22,433,000 consisted of the revolving credit loan in the amount of $20,070,000 and the term loan in the amount of $2,363,000. The revolver balance presented was increased to include the Company’s negative general ledger balances of its controlled disbursement cash accounts. As of December 31, 2017, the Company’s debt to PNC in the amount of $19,926,000 consisted of the revolving credit note due to PNC in the amount of $16,455,000 and the term loan due to PNC in the amount of $3,471,000.

Each day, the Company’s cash collections are swept directly by the bank to reduce the revolving loans and the Company then borrows according to a borrowing base formula. The Company’s receivables are payable directly into a lockbox controlled by PNC (subject to the terms of the Loan Facility). PNC may use some elements of subjective business judgment in determining whether a material adverse change has occurred in the Company’s condition, results of operations, assets, business, properties or prospects allowing it to demand repayment of the Loan Facility.

As of September 30, 2018 the future minimum principal payments for the term loan is as follows:

For the twelve months ending	Amount
September 30, 2019	$	1,477,000
September 30, 2020		886,000

PNC Term Loans payable		2,363,000
Less: Current portion		(2,363,000	)
Long-term portion	$	-

Interest expense related to these credit facilities amounted to $981,000 and $1,660,000 for the nine months ended September 30, 2018 and 2017, respectively.

Capital Leases Payable – Equipment

The Company is committed under several capital leases for manufacturing and computer equipment. All leases have bargain purchase options exercisable at the termination of each lease. Capital lease obligations totaled $2,115,000 and $3,073,000 as of September 30, 2018 and December 31, 2017, respectively, with various interest rates ranging from approximately 4% to 14%.

As of September 30, 2018, the aggregate future minimum lease payments, including imputed interest, with remaining terms of greater than one year are as follows:

For the twelve months ending	Amount
September 30, 2019	$	1,297,000
September 30, 2020		813,000
September 30, 2021		84,000
September 30, 2022		34,000
Thereafter		-
Total future minimum lease payments		2,228,000
Less: imputed interest		(113,000	)
Less: current portion		(1,213,000	)
Total Long Term Portion	$	902,000

Related Party Notes Payable

Taglich Brothers, Inc. is a corporation co-founded by two directors of the Company, Michael and Robert Taglich. In addition, a third director of the Company is a vice president of Taglich Brothers, Inc.

Taglich Brothers, Inc. has acted as placement agent for various debt and equity financing transactions and has received cash and equity compensation for their services. In addition, Michael and Robert Taglich have also invested as individuals in the Company a total of $ 8,860,000 through various debt and equity financings.

From November 23, 2016 through March 21, 2017, the Company received gross proceeds of $1,950,000 from Robert and Michael Taglich, from the sale of an equal principal amount of our 8% Subordinated Convertible Notes (the “8% Notes”). See “Private Placements of 8% Subordinated Convertible Notes” below.

In November 2017, Michael Taglich and Robert Taglich purchased 144,927 shares and 72,463 shares, respectively, of common stock, together with warrants to purchase an additional 48,000 shares and 24,000 shares, respectively, of common stock, for a purchase price of $200,000 and $100,000, respectively, in a private placement of the Company’s equity securities completed in January 2018 from which the Company received gross proceeds of $2,000,000. Taglich Brothers, Inc., which as placement agent for the sale of the shares and warrants, received a placement agent fee equal to $160,000 (8% of the amounts invested), payable at the Company’s option, in cash or additional shares of common stock and warrants having the same terms and conditions as the shares and warrants issued in the offering. See Note 7 below.

Private Placement of Subordinated Notes due May 31, 2018, together with Shares of Common Stock

On March 29, 2018 and April 4, 2018, Michael Taglich and Robert Taglich advanced $1,000,000 and $100,000, respectively, to the Company for use as working capital. The Company subsequently issued its Subordinated Notes due May 31, 2019 to Michael Taglich and Robert Taglich, together with shares of common stock, in the financing described below, to evidence its obligation to repay the foregoing advances.

In May 2018, the Company issued $1,200,000 of Subordinated Notes due May 31, 2019 (the “2019 Notes”), together with a total of 214,762 shares of common stock (the “Shares”), to Michael Taglich, Robert Taglich and another accredited investor. As part of the financing, the Company issued to Michael Taglich $1,000,000 principal amount of 2019 Notes and 178,571 shares of common stock for a purchase price of $1,000,000 and the Company issued to Robert Taglich $100,000 principal amount of 2019 Notes and 17,857 shares of common stock. The Company issued and sold a 2019 Note in the principal amount of $100,000, plus 18,334 shares of common stock, to the other accredited investor for a purchase price of $100,000. Seventy percent (70%) of the total purchase price for the 2019 Notes and Shares purchased by each investor has been allocated to the 2019 Notes with the remaining thirty percent (30%) allocated to the Shares purchased with the 2019 Notes. The number of Shares purchased by Michael Taglich and Robert Taglich was calculated based upon $1.68, the closing price of the common stock on May 20, 2018, the trading day immediately preceding the date they purchased the 2019 Notes and shares of common stock.

Interest on the 2019 Notes is payable on the outstanding principal amount thereof at the rate of one percent (1%) per month, payable monthly commencing June 30, 2018. Upon the occurrence and continuation of a failure to pay accrued interest, interest shall accrue and be payable on such amount at the rate of 1.25% per month; provided that upon the occurrence and continuation of a failure to timely pay the principal amount of the 2019 Note, interest shall accrue and be payable on such principal amount at the rate of 1.25% per month and shall no longer be payable on interest accrued but unpaid. The 2019 Notes are subordinate to the Company’s obligations to PNC.

Taglich Brothers acted as placement agent for the offering and received a commission in the aggregate amount of 4% of the amount invested which was paid in kind.

Related party advances and notes payable, net of debt discounts to Michael and Robert Taglich, and their affiliated entities, totaled $2,860,000 and $1,912,000, as of September 30, 2018 and December 31, 2017, respectively.

The gross proceeds of $1,200,000 was completed in the following closings:

Date	Gross Proceeds		Promissory Note		$		Common Stock Price		Shares
3/29/2018		1,000,000		700,000		300,000		1.68		178,571
4/4/2018		100,000		70,000		30,000		1.68		17,857
5/21/2018		100,000		70,000		30,000		1.64		18,334

Total		1,200,000		840,000		360,000				214,762

Private Placements of 8% Subordinated Convertible Notes

From November 23, 2016 through March 21, 2017, the Company received gross proceeds of $4,775,000, of which $1,950,000 were received from Robert and Michael Taglich, from the sale of an equal principal amount of our 8% Subordinated Convertible Notes (the “8% Notes”), together with warrants to purchase a total of 383,080 shares of our common stock, in private placement transactions with accredited investors (the “8% Note Offerings”). In connection with the offering of the 8% Notes, the Company issued 8% Notes in the aggregate principal amount of $382,000 to Taglich Brothers, Inc., placement agent for the 8% Note Offerings, in lieu of payment of cash compensation for sales commissions, together with warrants to purchase a total of 180,977 shares of our common stock. Payment of the principal and accrued interest on the 8% Notes are junior and subordinate in right of payment to our indebtedness under the Loan Facility.

Interest on the 2018 Notes is payable on the outstanding principal amount thereof at the annual rate of 8%, payable quarterly commencing February 28, 2017, in cash, or at our option, in additional 2018 Notes, provided that if accrued interest payable on $1,269,000 principal amount of the 2018 Notes issued in December 2016 is paid in additional 2018 Notes, interest for that quarterly interest payment shall be calculated at the rate of 12% per annum. Upon the occurrence and continuation of an event of default, interest shall accrue at the rate of 12% per annum.

During the nine months ended September 30, 2018, we issued $297,000 principal amount of 8% Notes in lieu of cash payment of accrued interest. As of September 30, 2018, we had outstanding $4,775,000 principal amount of 8% Notes, of which $2,575,000 principal amount is due on November 30, 2018 and $2,200,000 principal amount is due on February 28, 2019.

The outstanding principal amount plus accrued interest on the 8% Notes is convertible at the option of the holder into shares of common stock conversion prices ranging from $2.25 to $4.45 per share, subject to certain anti-dilution and other adjustments, including stock splits, and in the event of certain fundamental transactions such as mergers and other business combinations.

An event of default under the 8% Notes will occur (i) if the Company fails to make any payment under the 8% Notes within ten days after the date first due, or (ii) if the Company files a petition in bankruptcy or under any similar insolvency law, makes an assignment for the benefit of its creditors, or if any voluntary petition in bankruptcy or under any similar insolvency law is filed against the Company and such petition is not dismissed within sixty (60) days after the filing thereof. Upon the occurrence and continuation of an event of default, holders of a majority of the outstanding principal amount of the 8% Notes then outstanding, upon notice to the Company and the holders of the Senior Indebtedness (as defined in the 8% Notes), may demand immediate payment of the unpaid principal amount of the 8% Notes, together with accrued interest thereon and all other amounts payable under the 8% Notes, subject to the subordination provisions of the 8% Notes.

The exercise price of the warrants issued in connection with the 8% Note Offerings ranges from $3.00 to $4.53 per share, subject to certain anti-dilution and other adjustments, including stock splits, distributions in respect of the common stock and in the event of certain fundamental transactions such as mergers and other business combinations, and may be exercised on a cashless basis for a lesser number of shares depending upon prevailing market prices at the time of exercise. Of these warrants, 320,702 warrants may be exercised until November 30, 2021 and 243,307 warrants may be exercised until January 31, 2022.

Amendments to 8% Notes

In September 2018, holders of a majority of the outstanding principal amount of the 8% Notes consented to an amendment to the terms of the 8% Notes to extend the maturity date to December 31, 2020 and to provide that interest on the 8% Notes, as amended (the “Amended Notes”), shall accrue and be paid on the due date of the Amended Notes or, if earlier, upon conversion of the Amended Notes into shares of common stock. From and after September 30, 2018, interest on the unpaid principal amount of the Amended Notes shall accrue and be paid at the rate of six (6%) percent per annum, if paid in cash, or at the rate of eight (8%) percent per annum if converted into common stock.

At September 30, 2018, Michael Taglich, Robert Taglich and Taglich Brothers (collectively, the “Taglich Parties”) owned $1,300,000, $650,000 and $382,000, respectively, principal amount of 8% Notes, with accrued interest thereon from the date of issuance through September 30, 2018 of $203,613, $120,097 and $68,294, respectively. In consideration for waiving all defaults in payment of principal and accrued interest on the 8% Notes through the date of the amendment, the conversion price of the Amended Notes owned by the Taglich Parties and the other holders of the Amended Notes has been reduced to $1.50 per share, subject to the anti-dilution adjustments set forth in the Amended Notes and the 8% Notes, and the Company issued to the Taglich Parties and the other holders of the 8% Notes such number of shares of common stock calculated based upon a value of $1.39 per share, the closing market price of common stock on the NYSE American on September 28, 2018, the date immediately prior to the date the holders of a majority of the outstanding principal amount of the 8% Notes approved the amendment as is equal to the interest accrued on their 8% Notes from the date of issuance through September 30, 2018. As a result, the Company issued to Michael Taglich, Robert Taglich and Taglich Brothers 146,484 shares, 86,401 shares and 49,132 shares, respectively, of common Stock.

For soliciting noteholders in connection with the adoption of the amendments, the Company agreed to pay Taglich Brothers $95,550, representing a fee equal to 2% of the outstanding principal amount of Notes whose registered holders (other than Taglich Brothers) received shares of common stock in lieu of cash payment of accrued interest on the 8% Notes as of September 30, 2018.

Stockholders' Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

STOCKHOLDERS' EQUITY

Note 7. STOCKHOLDERS’ EQUITY

Common Stock -- Sale of Unregistered Equity Securities

On November 29, 2017, the Company entered into a Placement Agency Agreement with Taglich Brothers, Inc. as placement agent (the “Placement Agent”), pursuant to which the Placement Agent agreed to offer on behalf of the Company, on a best efforts basis, up to 1,600,000 shares of the Company’s common stock (the “Shares”) to accredited investors (the “Offering”), together with five-year warrants to purchase 24,000 shares of common stock (the “Warrants”) for each $100,000 of shares purchased, in a private placement exempt from the registration requirements of the Securities Act.

On January 9, 2018 the Company issued and sold to 35 accredited investors an aggregate of 852,000 Shares and Warrants to purchase an additional 255,600 shares of common stock, for gross proceeds of $1,065,000 pursuant to the Offering. The purchase price for the Shares and Warrants was $1.25 per Share. The Company had previously sold a total of 725,390 Shares and Warrants to purchase an additional 224,400 shares of common stock for gross proceeds of $935,000 on November 29, 2017, December 5, 2017 and December 29, 2017 pursuant to the Offering.

The Warrants have an exercise price of $1.50 per share, subject to certain anti-dilution and other adjustments, including stock splits, and in the event of certain fundamental transactions such as mergers and other business combinations, and may be exercised on a cashless basis for a lesser number of shares depending upon prevailing market prices at the time of exercise. The Warrants may be exercised until November 30, 2022.

In connection with the Offering, Taglich Brothers, Inc., a related party, which acted as placement agent for the sale of the Shares and Warrants, is entitled to a placement agent fee equal to $104,000 (8% of the amounts invested), payable at the Company’s option, in cash or additional shares of common stock and warrants having the same terms and conditions as the Shares and Warrants. Michael Taglich and Robert Taglich, directors of the Company, are principals of Taglich Brothers, Inc. The placement agent fee was $85,200 and $0 for the nine months ended September 30, 2018 and 2017, respectively.

The Offering commenced November 29, 2017 and was completed in four closings for gross proceeds of $2,000,000 as follows:

			Shares				Warrants
Date	Total Investment		# of shares		Price		# of warrants		Ex Price
11/29/2017	$	300,000		217,390	$	1.38		72,000	$	1.50
12/5/2017		400,000		320,000	$	1.25		96,000	$	1.50
12/29/2017		235,000		188,000	$	1.25		56,400	$	1.50
Subtotal - 2017		935,000		725,390				224,400
1/9/2018		1,065,000		852,000	$	1.25		255,600	$	1.50
Total Offering	$	2,000,000		1,577,390				480,000

During the nine months ended September 30, 2018, the Company issued 123,456 shares of common stock in lieu of cash payment for various services provided to the Company.

On July 19, 2018, the Company issued and sold a total of 322,000 shares of common stock for gross proceeds of $460,460, or a $1.43 per share, to four accredited investors pursuant to subscription agreements.

For acting as placement agent of the offering, Taglich Brothers, Inc. is entitled to a placement agent fee equal to $27,627 (6% of the gross proceeds of the offering), payable at the Company’s option, in cash or shares of Common Stock on the terms sold to the purchasers.

On October 1, 2018, the Company sold 800,000 shares of common stock and warrants to purchase 280,000 additional shares of common stock for gross proceeds of $1,000,000 to an accredited investor within the meaning of Rule 501(a) of Regulation D under the Securities Act (“Regulation D”), in a private offering exempt from the registration requirements of the Securities Act under Rule 506 of Regulation D and Section 4(a)(2) of the Securities Act. The Company agreed to pay Taglich Brothers $70,000 (7% of the gross proceeds of the offering) for acting as placement agent for the offering.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 8. COMMITMENTS AND CONTINGENCIES

Contingencies

On July 5, 2018, CPI filed a complaint in the Supreme Court of the State of New York, County of New York, against the Company relating to the previously announced SPA dated as of March 21, 2018 between the Company and CPI, pursuant to which the Company agreed to sell to CPI all of the shares of capital stock of WMI Group. On July 2, 2018, the Company notified CPI that it was terminating the SPA due to CPI’s failure to close on a timely basis.

The complaint alleges that the Company willfully breached its contractual obligation to provide financial information required to fulfill key conditions for closing under the SPA. CPI is seeking, among other things, an order of specific performance requiring the Company to comply with its obligations under the SPA, monetary damages, and attorneys’ fees and costs.

On July 30, 2018, the Company filed its answer and asserted counterclaims against CPI. The Company denied the allegations made by CPI in the complaint and alleged that CPI breached the Agreement and the covenant of good faith and fair dealing. The Company is seeking a declaration that the SPA has terminated, along with monetary damages, attorneys’ fees, and costs.

On July 31, 2018, CPI filed a motion for a preliminary injunction against the Company. The motion argued that the Company’s failure to provide financial data and other information necessary to close the transaction contemplated by the SPA will cause irreparable injury to CPI. CPI is seeking an order directing the Company to furnish CPI with all previously requested financial, operating, and other data and information relating to WMI Group.

The Company disputes the validity and applicability of the claims asserted by CPI and believes that it has meritorious defenses to those claims and intends to contest the action vigorously.

On October 3, 2018, the Company entered into a stipulation with CPI pursuant to which it agreed to deliver to CPI no later than November 16, 2018, audited financial statements of WMI Group. The audit of WMI Group was not completed as of that date, and is still in process as of the date of the Company’s third quarter 2018 Form 10-Q. CPI will have three weeks after receipt of the audited financial statements to close the transaction in accordance with the terms of the SPA. The stipulation contemplates that the parties will enter into an Amendment to the SPA incorporating the terms of the Stipulation into the SPA. On November 9, 2018, the Court issued an Order directing that the Company and CPI enter into an Amendment to the SPA which, among other things, confirms the parties’ obligations with respect to the delivery of the audited financial statements of WMI Group and obligation to close the transaction within 21 days thereafter.

A number of actions have been commenced against the Company by vendors, landlords and former landlords, including a third party claim as a result of an injury suffered on a portion of a leased property not occupied by the Company. As certain of these claims represent amounts included in accounts payable they are not specifically discussed herein.

Westbury Park Associates, LLC commenced an action on or about January 11, 2017 against Air Industries Group in the NYS Supreme Court, County of Suffolk, seeking the recovery of approximately $31,000 for past rent arrears, and for an unidentified sum representing all additional rent due under an alleged commercial lease through the end of its term, plus attorney’s fees. The Company believes that it has a meritorious defense, and there was no lease on the property and that its subsidiary Compac Development Corp was a hold-over tenant occupying the space on month-to-month tenancy.

An employee of the Company commenced an action against, among others, Rechler Equity B-2, LLC and Air Industries Group, in the Supreme Court State of New York, Suffolk County, seeking compensation in an undetermined amount for injuries suffered while leaving the premises occupied by Welding Metallurgy, Inc. Rechler Equity B-2, LLC, has served a Third Party Complaint in this action against Air Industries Group, Inc. and Welding Metallurgy, Inc. The action remains in the early pleading stage. The Company believes it is not liable to the employee and any amount it might have to pay would be covered by insurance.

An employee of the Company commenced an action against, among others, Sterling Engineering and Air Industries Group, in Connecticut Commission on Human Rights and Opportunities, seeking lost wages in an undetermined amount for the employee’s termination. The action remains in the early pleading stage. The Company believes it is not liable to the employee and any amount it might have to pay would be covered by insurance.

Contract Pharmacal Corp. commenced an action on October 2, 2018, relating to a Sublease entered into between the Company and Contract Pharmacal in May 2018 with respect to the property occupied by WMI at 110 Plant Avenue, Hauppauge, New York. In the action Contract Pharmacal seeks damages and an order directing that the Company make all of the space referenced in the Sublease available to Contract Pharmacal. The Company disputes the validity of the claims asserted by Contract Pharmacal and believes that it has meritorious defenses to those claims and intends to contest the action vigorously.

On October 15, 2018, a class action complaint was filed in the United States District Court for the Eastern District of New York (Michael Kishmoian vs. Air Industries et al Case No. 18cv5757) naming the Company and certain of its directors and a former director. The Complaint alleges that the proxy statement for the Company’s 2017 Annual Meeting of Stockholders contained false and misleading misstatements relating to whether brokers had discretionary authority to vote the shares of their customers in connection with the proposal to increase the number of shares the Company is authorized to issue. In the Complaint the plaintiff seeks to void the amendment and rescind any shares issued using the shares authorized by the amendment. The Company has contacted its insurers and is in the early stages of determining the merits of the claim and available defenses. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, the Company cannot estimate the reasonably possible loss or range of loss, if any, that may result from this action.

Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 9. INCOME TAXES

The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017, and permanently reduces the U.S. federal corporate rate from 35% to 21%, effective January 1, 2018.

SAB No. 118 allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law during the measurement period. As of September 30, 2018, the Company has not completed its accounting for the tax effects of the enactment of the Tax Act; however, the Company has made a reasonable estimate of the effects on its existing deferred tax balances. The Company is still analyzing the Tax Act and refining its calculations, which could potentially impact the measurement of its tax balances. The Company expects to complete its analysis within the measurement period.

The Company recorded no Federal income tax benefit for the nine months ended September 30, 2018. A tax benefit of approximately $1,075,000 would have been recorded for the nine months ended September 30, 2018, had there not been a full valuation allowance recorded against incremental deferred tax assets created during the period. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of our annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, their ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives. As of September 30, 2018 and December 31, 2017, the Company provided a valuation allowance against its net deferred tax assets since the Company believes it is more likely than not that its deferred tax assets will not be realized.

The provision for (benefit from) income taxes as of September 30, is set forth below:

	2018		2017
	(unaudited)		(unaudited)
Current
Federal	$	-	$	-
State		2,000		8,000
Prior year over accrual
Federal		-		(178,000	)
State		-		-

Total current expense (benefit)		2,000		(170,000	)
Deferred Tax Benefit		-		-
Valuation Allowance		-		-
Net Provision for (Benefit from) Income Taxes	$	2,000	$	(170,000	)

Segment Reporting

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 10. SEGMENT REPORTING

In accordance with FASB ASC 280, “Segment Reporting” (“ASC 280”), the Company discloses financial and descriptive information about its reportable operating segments. Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company follows ASC 280, which establishes standards for reporting information about operating segments in annual and interim financial statements, and requires that companies report financial and descriptive information about their reportable segments based on a management approach. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers.

The Company currently divides its operations into three operating segments: Complex Machining, which consists of AIM and NTW; Aerostructures and Electronics which consists of WMI (including WPI, MSI and Compac), Eur-Pac, and ECC; and Turbine Engine Components which consists of Sterling and AMK, for the period January 1, 2017 until it was disposed of on January 27, 2017. Along with our operating subsidiaries, we report the results of our corporate division as an independent segment.

The accounting policies of each of the segments are the same as those described in the Summary of Significant Accounting Policies. The Company evaluates performance based on revenue, gross profit contribution and assets employed. Corporate level operating costs are allocated to segments. These costs include corporate costs such as legal, audit, tax and other professional fees including those related to being a public company.

Given the pending sale of WMI Group, in the future, the Company may change its reportable operating segments.

Financial information about the Company’s operating segments for the three and nine months ended September 30, 2018 and 2017 are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

COMPLEX MACHINING
Net Sales	$	9,690,000		$	10,198,000		$	30,022,000		$	30,562,000
Gross Profit		1,433,000			1,450,000			4,925,000			5,289,000
Pre Tax Income (Loss)		530,000			(90,000	)		1,303,000			(383,000	)
Assets		43,418,000			44,362,000			43,418,000			44,362,000

AEROSTRUCTURES & ELECTRONICS
Net Sales		310,000			1,843,000			1,585,000			4,204,000
Gross (Loss) Profit		(6,000	)		174,000			86,000			488,000
Pre Tax Income Loss		(125,000	)		(602,000	)		(652,000	)		(1,750,000	)
Assets		1,320,000			2,763,000			1,320,000			2,763,000

TURBINE ENGINE COMPONENTS
Net Sales		1,043,000			1,649,000			3,593,000			5,469,000
Gross Loss		(67,000	)		(67,000	)		(60,000	)		(246,000	)
Pre Tax Loss		(246,000	)		(613,000	)		(817,000	)		(2,110,000	)
Assets		5,661,000			11,220,000			5,661,000			11,220,000

CORPORATE
Net Sales		-			-			-			-
Gross Profit		-			-			-			-
Pre Tax Loss		(1,519,000	)		(1,608,000	)		(4,417,000	)		(2,213,000	)
Assets		272,000			961,000			272,000			961,000

CONSOLIDATED
Net Sales		11,043,000			13,690,000			35,200,000			40,235,000
Gross Profit		1,360,000			1,557,000			4,951,000			5,531,000
Pre Tax Loss		(1,360,000	)		(2,913,000	)		(4,583,000	)		(6,456,000	)
Provision for (Benefit from) Income Taxes		-			29,000			2,000			(170,000	)
(Loss) Income from Discontinued Operations		(1,770,000	)		62,000			172,000			280,000
Net Loss		(3,130,000	)		(2,880,000	)		(4,413,000	)		(6,006,000	)
Assets Held for Sale		12,341,000			16,959,000			12,341,000			16,959,000
Assets	$	63,012,000		$	76,265,000		$	63,012,000		$	76,265,000

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Principal Business Activity

Principal Business Activity

Assets Held for Sale

Assets Held for Sale

Inventory Valuation

Inventory Valuation

	September 30,			December 31,
	2018			2017
	(unaudited)
Raw Materials	$	4,912,000		$	5,346,000
Work In Progress		19,787,000			19,947,000
Finished Goods		10,783,000			10,122,000
Inventory Reserve		(4,533,000	)		(4,274,000	)
Total Inventory	$	30,949,000		$	31,141,000

Credit and Concentration Risks

Credit and Concentration Risks

There were three customers that represented 67.4% and 72.1% of total net sales for the three months ended September 30, 2018 and 2017, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 2018		September 2017
	(Unaudited)		(Unaudited)
1		27.7		27.5
2		26.4		23.7
3		13.3		*
4		**		20.9

Customer was less than 10% of sales at September 30, 2017.

Customer was less than 10% of sales at September 30, 2018.

There were three customers that represented 69.1% and 68.8% of total sales for the nine months ended September 30, 2018 and 2017, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 2018		September 2017
	(Unaudited)		(Unaudited)
1		31.8		25.4
2		26.3		22.0
3		11.0		*
4		**		21.4

Customer was less than 10% of sales at September 30, 2017.

Customer was less than 10% of sales at September 30, 2018.

There were three customers that represented 67.9% and 68.7% of gross accounts receivable at September 30, 2018 and December 31, 2017, respectively. This is set forth in the table below.

Customer	Percentage of Receivables
	September 2018		December 2017
	(Unaudited)
1		37.8		41.9
2		19.9		14.6
3		10.2		*
4		**		12.2

Customer was less than 10% of gross accounts receivable at December 31, 2017.

Customer was less than 10% of gross accounts receivable at September 30, 2018.

During the year, the Company had occasionally maintained balances in its bank accounts that were in excess of the FDIC limit. The Company has not experienced any losses on these accounts.

Earnings per share

Earnings per share

The following is a reconciliation of the denominators of basic and diluted earnings per share computations:

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		26,768,914		13,463,372		26,295,703		13,463,372
Effect of dilutive stock options and warrants		36,758		-		50,216		-
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		26,805,672		13,463,372		26,345,919		13,463,372

The following securities have been excluded from the calculation as the exercise price was greater than the average market price of the common shares:

	Nine Months Ended
	September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)
Convertible Preferred Stock		-		2,631,000
Stock Options		215,000		516,000
Warrants		1,480,000		1,479,000
		1,695,000		4,626,000

	September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)
Stock Options		695,000		22,000
Warrants		480,000		-
		1,175,000		22,000

Stock-Based Compensation

Stock-Based Compensation

Goodwill

Goodwill

Goodwill is not amortized, but is tested at least annually for impairment, or if circumstances occur that more likely than not reduce the fair value of the reporting unit below its carrying amount.

The Company has determined that there has been no impairment of goodwill at September 30, 2018.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

The Company plans to adopt the New Revenue Standard on December 31, 2018 as allowed under their Emerging Growth Status designation.

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Schedule of reconciliation of the major financial lines constituting the results of operations for discontinued operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net revenue	$	4,951,000		$	3,588,000		$	11,396,000		$	10,280,000
Cost of sales		3,935,000			2,988,000			9,269,000			8,033,000
Gross profit		1,016,000			600,000			2,127,000			2,247,000
Operating expenses:
Selling, general and administrative		(298,000	)		(531,000	)		(1,033,000	)		(1,957,000	)
Loss on assets held for sale		(2,493,000	)		-			(930,000	)		-
Total Operating expenses		(2,791,000	)		(531,000	)		(1,963,000	)		(1,957,000	)
Interest income (expense) and financing costs		1,000			(12,000	)		1,000			(12,000	)
Other Income, net		4,000			5,000			7,000			2,000
Gain (loss)		-			-			-			-
Loss from discontinued operations before income taxes		(1,770,000	)		62,000			172,000			280,000
Provision for income taxes		-			-			-			-
Net income (loss) from discontinued operations	$	(1,770,000	)	$	62,000		$	172,000		$	280,000

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Schedule of inventory valuation

	September 30,			December 31,
	2018			2017
	(unaudited)
Raw Materials	$	4,912,000		$	5,346,000
Work In Progress		19,787,000			19,947,000
Finished Goods		10,783,000			10,122,000
Inventory Reserve		(4,533,000	)		(4,274,000	)
Total Inventory	$	30,949,000		$	31,141,000

Schedule of credit and concentration risks

There were three customers that represented 67.4% and 72.1% of total net sales for the three months ended September 30, 2018 and 2017, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 2018		September 2017
	(Unaudited)		(Unaudited)
1		27.7		27.5
2		26.4		23.7
3		13.3		*
4		**		20.9

Customer was less than 10% of sales at September 30, 2017.

Customer was less than 10% of sales at September 30, 2018.

There were three customers that represented 69.1% and 68.8% of total sales for the nine months ended September 30, 2018 and 2017, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 2018		September 2017
	(Unaudited)		(Unaudited)
1		31.8		25.4
2		26.3		22.0
3		11.0		*
4		**		21.4

Customer was less than 10% of sales at September 30, 2017.

Customer was less than 10% of sales at September 30, 2018.

There were three customers that represented 67.9% and 68.7% of gross accounts receivable at September 30, 2018 and December 31, 2017, respectively. This is set forth in the table below.

Customer	Percentage of Receivables
	September 2018		December 2017
	(Unaudited)
1		37.8		41.9
2		19.9		14.6
3		10.2		*
4		**		12.2

Customer was less than 10% of gross accounts receivable at December 31, 2017.

Customer was less than 10% of gross accounts receivable at September 30, 2018.

Schedule of earnings per share

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		26,768,914		13,463,372		26,295,703		13,463,372
Effect of dilutive stock options and warrants		36,758		-		50,216		-
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		26,805,672		13,463,372		26,345,919		13,463,372

Schedule of anti-dilutive securities

	Nine Months Ended
	September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)
Convertible Preferred Stock		-		2,631,000
Stock Options		215,000		516,000
Warrants		1,480,000		1,479,000
		1,695,000		4,626,000

	September 30, 2018		September 30, 2017
	(Unaudited)		(Unaudited)
Stock Options		695,000		22,000
Warrants		480,000		-
		1,175,000		22,000

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	September 30,			December 31,
	2018			2017
	(unaudited)
Land	$	300,000		$	300,000
Buildings and Improvements		1,650,000			1,650,000		31.5 years
Machinery and Equipment		11,590,000			11,554,000		5 - 8 years
Capital Lease Machinery and Equipment		6,534,000			6,534,000		5 - 8 years
Tools and Instruments		9,124,000			8,538,000		1.5 - 7 years
Automotive Equipment		172,000			172,000		5 years
Furniture and Fixtures		316,000			311,000		5 - 8 years
Leasehold Improvements		528,000			528,000		Term of Lease
Computers and Software		409,000			406,000		4 - 6 years
Total Property and Equipment		30,623,000			29,993,000
Less: Accumulated Depreciation		(21,985,000	)		(19,943,000	)
Property and Equipment, net	$	8,638,000		$	10,050,000

Assets Held for Sale and Liabilities Directly Associated (Tables)

9 Months Ended

Sep. 30, 2018

Assets Held For Sale And Liabilites Direclty Associated

Schedule of components of assets held for sale and liabilities directly associated

	September 30, 2018			December 31, 2017
Assets Held for Sale
Accounts Receivable, net of allowance for doubtful accounts	$	1,945,000		$	2,217,000
Inventory, net of reserves		9,093,000			8,065,000
Prepaid and other assets		1,479,000			485,000
Property and equipment, net of accumulated depreciation		754,000			878,000
Impairment of Assets Held for Sale		(930,000	)		(1,563,000	)

Assets Held for Sale, net	$	12,341,000		$	10,082,000

Accounts payable and accrued expenses		1,074,000			2,138,000
Deferred Revenue		2,100,000			521,000
Notes Payable & Capital lease obligations		-			11,000
Deferred rent		153,000			125,000

Liabilities directly associated to Assets Held for Sale	$	3,327,000		$	2,795,000

Schedule of components of segment data

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
	(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)
Segment Data
Aerostructures and Electronics
Net Sales	$	4,951,000		$	3,588,000	$	11,396,000	$	10,280,000
Gross Profit		1,016,000			600,000		2,127,000		2,247,000
Pre Tax (Loss) Income		(1,770,000	)		62,000		172,000		280,000
Assets		12,341,000			16,959,000		12,341,000		16,959,000

Notes Payable and Capital Lease Obligations (Tables)

9 Months Ended

Sep. 30, 2018

Notes and Loans Payable [Abstract]

Schedule of notes payable and capital lease obligations

	September 30,			December 31,
	2018			2017
	(unaudited)
Revolving credit note payable to PNC Bank N.A. (“PNC”)	$	20,070,000		$	16,455,000
Term loans, PNC		2,363,000			3,471,000
Capital lease obligations		2,115,000			3,073,000
Related party notes payable, net of debt discount		2,860,000			1,912,000
Convertible notes payable-third parties, net of debt discount		2,606,000			1,930,000
Subtotal		30,014,000			26,841,000
Less: Current portion of notes and capital obligations		(24,047,000	)		(23,393,000	)
Notes payable and capital lease obligations, net of current portion	$	5,967,000		$	3,448,000

Schedule of future minimum principal payments for term loans

For the twelve months ending	Amount
September 30, 2019	$	1,477,000
September 30, 2020		886,000

PNC Term Loans payable		2,363,000
Less: Current portion		(2,363,000	)
Long-term portion	$	-

Schedule of future minimum lease payments, including imputed interest

For the twelve months ending	Amount
September 30, 2019	$	1,297,000
September 30, 2020		813,000
September 30, 2021		84,000
September 30, 2022		34,000
Thereafter		-
Total future minimum lease payments		2,228,000
Less: imputed interest		(113,000	)
Less: current portion		(1,213,000	)
Total Long Term Portion	$	902,000

Date	Gross Proceeds		Promissory Note		$		Common Stock Price		Shares
3/29/2018		1,000,000		700,000		300,000		1.68		178,571
4/4/2018		100,000		70,000		30,000		1.68		17,857
5/21/2018		100,000		70,000		30,000		1.64		18,334

Total		1,200,000		840,000		360,000				214,762

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Schedule of stockholders' equity

			Shares				Warrants
Date	Total Investment		# of shares		Price		# of warrants		Ex Price
11/29/2017	$	300,000		217,390	$	1.38		72,000	$	1.50
12/5/2017		400,000		320,000	$	1.25		96,000	$	1.50
12/29/2017		235,000		188,000	$	1.25		56,400	$	1.50
Subtotal - 2017		935,000		725,390				224,400
1/9/2018		1,065,000		852,000	$	1.25		255,600	$	1.50
Total Offering	$	2,000,000		1,577,390				480,000

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of provision for (benefit from) income taxes

	2018		2017
	(unaudited)		(unaudited)
Current
Federal	$	-	$	-
State		2,000		8,000
Prior year over accrual
Federal		-		(178,000	)
State		-		-

Total current expense (benefit)		2,000		(170,000	)
Deferred Tax Benefit		-		-
Valuation Allowance		-		-
Net Provision for (Benefit from) Income Taxes	$	2,000	$	(170,000	)

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Schedule of operating segments

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

COMPLEX MACHINING
Net Sales	$	9,690,000		$	10,198,000		$	30,022,000		$	30,562,000
Gross Profit		1,433,000			1,450,000			4,925,000			5,289,000
Pre Tax Income (Loss)		530,000			(90,000	)		1,303,000			(383,000	)
Assets		43,418,000			44,362,000			43,418,000			44,362,000

AEROSTRUCTURES & ELECTRONICS
Net Sales		310,000			1,843,000			1,585,000			4,204,000
Gross (Loss) Profit		(6,000	)		174,000			86,000			488,000
Pre Tax Income Loss		(125,000	)		(602,000	)		(652,000	)		(1,750,000	)
Assets		1,320,000			2,763,000			1,320,000			2,763,000

TURBINE ENGINE COMPONENTS
Net Sales		1,043,000			1,649,000			3,593,000			5,469,000
Gross Loss		(67,000	)		(67,000	)		(60,000	)		(246,000	)
Pre Tax Loss		(246,000	)		(613,000	)		(817,000	)		(2,110,000	)
Assets		5,661,000			11,220,000			5,661,000			11,220,000

CORPORATE
Net Sales		-			-			-			-
Gross Profit		-			-			-			-
Pre Tax Loss		(1,519,000	)		(1,608,000	)		(4,417,000	)		(2,213,000	)
Assets		272,000			961,000			272,000			961,000

CONSOLIDATED
Net Sales		11,043,000			13,690,000			35,200,000			40,235,000
Gross Profit		1,360,000			1,557,000			4,951,000			5,531,000
Pre Tax Loss		(1,360,000	)		(2,913,000	)		(4,583,000	)		(6,456,000	)
Provision for (Benefit from) Income Taxes		-			29,000			2,000			(170,000	)
(Loss) Income from Discontinued Operations		(1,770,000	)		62,000			172,000			280,000
Net Loss		(3,130,000	)		(2,880,000	)		(4,413,000	)		(6,006,000	)
Assets Held for Sale		12,341,000			16,959,000			12,341,000			16,959,000
Assets	$	63,012,000		$	76,265,000		$	63,012,000		$	76,265,000

Formation and Basis of Presentation (Details) - USD ($)			3 Months Ended		9 Months Ended		12 Months Ended
Formation and Basis of Presentation (Details) - USD ($)	Jan. 27, 2017	Jan. 01, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Mar. 21, 2018
Formation and Basis of Presentation (Textual)
Income (loss) from operations			$ (615,000)	$ (950,000)	$ (2,287,000)	$ (2,888,000)	$ (12,758,000)
Net (losses)			(3,130,000)	$ (2,880,000)	(4,413,000)	$ (6,006,000)	$ (22,551,000)
Purchase price	$ 4,500,000
Net of a working capital adjustment	$ 163,000
Equity payments, description	Additional quarterly payments, not to exceed $ 1,500,000, equal to five percent (5%) of Net Revenues of AMK commencing April 1, 2017.
Gain on the sale of AMK					200,000
The proceeds of the sale of AMK					1,700,000
Outstanding revolving advances					1,800,000
Outstanding accounts payable					500,000
Escrow deposit			$ 2,000,000		2,000,000
Sold in excess of debt and equity securities		$ 32,500,000			$ 8,860,000
Purchase price								$ 9,000,000

Discontinued Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
Discontinued Operations (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Net revenue	$ 4,951,000	$ 3,588,000	$ 11,396,000	$ 10,280,000
Cost of sales	3,935,000	2,988,000	9,269,000	8,033,000
Gross profit	1,016,000	600,000	2,127,000	2,247,000
Operating expenses:
Selling, general and administrative	(298,000)	(531,000)	(1,033,000)	(1,957,000)
Loss on assets held for sale	(2,493,000)		(930,000)
Total Operating expenses	(2,791,000)	(531,000)	(1,963,000)	(1,957,000)
Interest income (expense) and financing costs	1,000	(12,000)	1,000	(12,000)
Other Income, net	4,000	5,000	7,000	2,000
Gain (loss)
Loss from discontinued operations before income taxes	(1,770,000)	62,000	172,000	280,000
Provision for income taxes
Net income (loss) from discontinued operations	$ (1,770,000)	$ 62,000	$ 172,000	$ 280,000

Discontinued Operations (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Discontinued Operations (Details Textual) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Discontinued Operations (Textual)
Non-cash operating amounts for discontinued operations depreciation	$ 41,000	$ 41,000	$ 124,000	$ 131,000
Capital expenditures			0	29,000
Amortization		$ 49,000		$ 159,000
Liability for loss on assets held for sale			930,000
Impact of immaterial sales	$ 310,000		$ 1,554,000

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Raw Materials	$ 4,912,000	$ 5,346,000
Work In Progress	19,787,000	19,947,000
Finished Goods	10,783,000	10,122,000
Inventory Reserve	(4,533,000)	(4,274,000)
Total Inventory	$ 30,949,000	$ 31,141,000

Summary of Significant Accounting Policies (Details 1) - Sales Revenue, Net [Member]

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Percentage of Sales

67.40%

72.10%

69.10%

68.80%

Customer one [Member]

Percentage of Sales

27.70%

27.50%

31.80%

25.40%

Customer two [Member]

Percentage of Sales

26.40%

23.70%

26.30%

22.00%

Customer three [Member]

Percentage of Sales

13.30%

^[1]

11.00%

^[1]

Customer four [Member]

Percentage of Sales

^[2]

20.90%

^[2]

21.40%

[1]	Customer was less than 10% of sales at September 30, 2017.
[2]	Customer was less than 10% of sales at September 30, 2018.

Summary of Significant Accounting Policies (Details 2) - Accounts Receivable [Member]

Sep. 30, 2018

Dec. 31, 2017

Customer one [Member]

Customer 1 percentage of receivables

37.80%

41.90%

Customer two [Member]

Customer 2 percentage of receivables

19.90%

14.60%

Customer three [Member]

Customer 3 percentage of receivables

10.20%

^[1]

Customer four [Member]

Customer 4 percentage of receivables

^[2]

12.20%

[1]	Customer was less than 10% of gross accounts receivable at December 31, 2017.
[2]	Customer was less than 10% of gross accounts receivable at September 30, 2018.

Summary of Significant Accounting Policies (Details 3) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Weighted average shares outstanding used to compute basic earnings per share	26,768,914	13,463,372	26,295,703	13,463,372
Effect of dilutive stock options and warrants	36,758		50,216
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share	26,805,672	13,463,372	26,345,919	13,463,372

Summary of Significant Accounting Policies (Details 4) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Anti-dilutive securities	1,175,000	22,000
Average market price of common shares	1,695,000	4,626,000
Stock Options [Member]
Anti-dilutive securities	695,000	22,000
Average market price of common shares	215,000	516,000
Warrant [Member]
Anti-dilutive securities	480,000
Average market price of common shares	1,480,000	1,479,000
Convertible Preferred Stock [Member]
Average market price of common shares		2,631,000

Summary of Significant Accounting Policies (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018 USD ($) Customer / Customers	Sep. 30, 2017 Customer / Customers	Sep. 30, 2018 USD ($) Customer / Customers	Sep. 30, 2017 USD ($) Customer / Customers	Dec. 31, 2017 USD ($) Customer / Customers
Summary of Significant Accounting Policies (Textual)
Stock-based compensation			$ 308,000	$ 9,000
Percentage of inventory valuation	50.00%		50.00%
Goodwill	$ 272,000		$ 272,000		$ 272,000
Loss gain on assets held for sale			(930,000)		1,563,000
ECC [Member]
Summary of Significant Accounting Policies (Textual)
Goodwill	109,000		109,000		109,000
NTW [Member]
Summary of Significant Accounting Policies (Textual)
Goodwill	$ 163,000		$ 163,000		$ 163,000
Total Sales [Member]
Summary of Significant Accounting Policies (Textual)
Concentration Risks	67.40%	72.10%	69.10%	68.80%
Number of Customers \| Customer / Customers	3	3	3	3
Accounts receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration Risks			67.90%		68.70%
Number of Customers \| Customer / Customers			3		3

Property and Equipment (Details) - USD ($)	9 Months Ended
Property and Equipment (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Total Property and Equipment	$ 30,623,000	$ 29,993,000
Less: Accumulated Depreciation	(21,985,000)	(19,943,000)
Property and Equipment, net	8,638,000	10,050,000
Leasehold Improvements [Member]
Total Property and Equipment	$ 528,000	528,000
Property Plant And Equipment Useful Life	Term of Lease
Machinery and Equipment [Member]
Total Property and Equipment	$ 11,590,000	11,554,000
Machinery and Equipment [Member] \| Minimum
Property plant and equipment useful life	5 years
Machinery and Equipment [Member] \| Maximum [Member]
Property plant and equipment useful life	8 years
Capital Lease Machinery and Equipment [Member]
Total Property and Equipment	$ 6,534,000	6,534,000
Capital Lease Machinery and Equipment [Member] \| Minimum
Property plant and equipment useful life	5 years
Capital Lease Machinery and Equipment [Member] \| Maximum [Member]
Property plant and equipment useful life	8 years
Tools and Instruments [Member]
Total Property and Equipment	$ 9,124,000	8,538,000
Tools and Instruments [Member] \| Minimum
Property plant and equipment useful life	1 year 6 months
Tools and Instruments [Member] \| Maximum [Member]
Property plant and equipment useful life	7 years
Furniture and Fixtures [Member]
Total Property and Equipment	$ 316,000	311,000
Furniture and Fixtures [Member] \| Minimum
Property plant and equipment useful life	5 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property plant and equipment useful life	8 years
Computers and Software [Member]
Total Property and Equipment	$ 409,000	406,000
Computers and Software [Member] \| Minimum
Property plant and equipment useful life	4 years
Computers and Software [Member] \| Maximum [Member]
Property plant and equipment useful life	6 years
Automotive Equipment [Member]
Total Property and Equipment	$ 172,000	172,000
Property plant and equipment useful life	5 years
Buildings and Improvements [Member]
Total Property and Equipment	$ 1,650,000	1,650,000
Property plant and equipment useful life	31 years 6 months
Land [Member]
Total Property and Equipment	$ 300,000	$ 300,000

Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment (Details Textual) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Property and Equipment (Textual)
Depreciation expense	$ 681,000	$ 575,000	$ 2,165,000	$ 2,026,000
Accumulated depreciation	$ 4,576,000		$ 4,576,000		$ 3,595,000

Assets Held for Sale and Liabilities Directly Associated (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Assets Held for Sale
Assets Held for Sale, net	$ 12,341,000	$ 10,082,000
Deferred rent	1,173,000	1,197,000
Liabilities directly associated to Assets Held for Sale	3,327,000	2,795,000
WMI [Member]
Assets Held for Sale
Accounts Receivable, net of allowance for doubtful accounts	1,945,000	2,217,000
Inventory, net of reserves	9,093,000	8,065,000
Prepaid and other assets	1,479,000	485,000
Property and equipment, net of accumulated depreciation	754,000	878,000
Impairment of Assets Held for Sale	(930,000)	(1,563,000)
Assets Held for Sale, net	12,341,000	10,082,000
Accounts payable and accrued expenses	1,074,000	2,138,000
Deferred Revenue	2,100,000	521,000
Notes Payable & Capital lease obligations		11,000
Deferred rent	153,000	125,000
Liabilities directly associated to Assets Held for Sale	$ 3,327,000	$ 2,795,000

Assets Held for Sale and Liabilities Directly Associated (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Sales	$ 11,043,000	$ 13,690,000	$ 35,200,000	$ 40,235,000
Gross Profit	1,360,000	1,557,000	4,951,000	5,531,000
Pre Tax (Loss) Income	(1,360,000)	(2,913,000)	(4,583,000)	(6,456,000)
WMI Group [Member]
Net Sales	4,951,000	3,588,000	11,396,000	10,280,000
Gross Profit	1,016,000	600,000	2,127,000	2,247,000
Pre Tax (Loss) Income	(1,770,000)	62,000	172,000	280,000
Assets	$ 12,341,000	$ 16,959,000	$ 12,341,000	$ 16,959,000

Assets Held for Sale and Liabilities Directly Associated (Details Textual)	Mar. 21, 2018 USD ($)
Assets Held For Sale And Liabilites Direclty Associated
Purchase price	$ 9,000,000
Contingent payment	$ 1,000,000

Notes Payable and Capital Lease Obligations (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Notes and Loans Payable [Abstract]
Revolving credit note payable to PNC Bank N.A. ("PNC")	$ 20,070,000	$ 16,455,000
Term loans, PNC	2,363,000	3,471,000
Capital lease obligations	2,115,000	3,073,000
Related party notes payable, net of debt discount	2,860,000	1,912,000
Convertible notes payable-third parties, net of debt discount	2,606,000	1,930,000
Subtotal	30,014,000	26,841,000
Less: Current portion of notes and capital obligations	(24,047,000)	(23,393,000)
Notes payable and capital lease obligations, net of current portion	$ 5,967,000	$ 3,448,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Notes Payable and Capital Lease Obligations (Details 1)	Sep. 30, 2018 USD ($)
For the twelve months ending
September 30, 2019	$ 1,477,000
September 30, 2020	886,000
PNC Term Loans payable	2,363,000
Less: Current portion	(2,363,000)
Long-term portion

Notes Payable and Capital Lease Obligations (Details 2)	Sep. 30, 2018 USD ($)
For the twelve months ending
September 30, 2019	$ 1,297,000
September 30, 2020	813,000
September 30, 2021	84,000
September 30, 2022	34,000
Thereafter
Total future minimum lease payments	2,228,000
Less: imputed interest	(113,000)
Less: current portion	(1,213,000)
Total Long Term Portion	$ 902,000

Notes Payable and Capital Lease Obligations (Details 3)	9 Months Ended
Notes Payable and Capital Lease Obligations (Details 3)	Sep. 30, 2018 USD ($) $ / shares shares
Gross Proceeds	$ 1,200,000
Promissory Note	840,000
Related party advances and notes payable	$ 360,000
Related party advances and notes payable, shares \| shares	214,762
4/4/2018 [Member]
Gross Proceeds	$ 100,000
Promissory Note	70,000
Related party advances and notes payable	$ 30,000
Common Stock Price \| $ / shares	$ 1.68
Related party advances and notes payable, shares \| shares	17,857
5/21/2018 [Member]
Gross Proceeds	$ 100,000
Promissory Note	70,000
Related party advances and notes payable	$ 30,000
Common Stock Price \| $ / shares	$ 1.64
Related party advances and notes payable, shares \| shares	18,334
3/29/2018 [Member]
Gross Proceeds	$ 1,000,000
Promissory Note	700,000
Related party advances and notes payable	$ 300,000
Common Stock Price \| $ / shares	$ 1.68
Related party advances and notes payable, shares \| shares	178,571

Notes Payable and Capital Lease Obligations (Details Textual) - USD ($)		1 Months Ended					4 Months Ended	9 Months Ended		12 Months Ended
	Jan. 01, 2016	May 31, 2018	May 18, 2018	Jan. 31, 2018	Nov. 30, 2017	Jun. 19, 2017	Mar. 21, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Apr. 04, 2018	Mar. 29, 2018	Feb. 28, 2017
Notes Payable and Capital Lease Obligations (Textual)
Balance due under revolving loan										$ 16,455,000
Interest expense related to credit facilities								$ 981,000	$ 1,660,000
Capital lease obligations								2,115,000		3,073,000
Debt and equity financings	$ 32,500,000							8,860,000
Initial principal amount								297,000
Outstanding amount under the revolving loan, inclusive of excess advance								$ 20,070,000		16,455,000
Loan facility, description						<p style="margin: 0pt">The Fifteenth Amendment to the Loan Facility, which waived the failure to comply with the minimum EBITDA covenant for the periods ended December 31, 2016 and March 31, 2017 and the Capital Expenditures covenant for the period ended December 31, 2016. The amendment also requires that the Company maintain at all times a Fixed Charge Coverage Ratio, tested quarterly on a consolidated basis beginning September 30, 2017, as follows: (i) 1.00 to 1.00 for the quarter ending September 30, 2017, tested based upon the prior three (3) months, (ii) 1.05 to 1.00 for the quarter ending December 31, 2017, tested based upon the prior six (6) months and (iii) 1.05 to 1.00 for the quarter ending March 31, 2018, tested based upon the prior nine months and that we maintain EBITDA of not less than $345,000 for the period ending September 30, 2017.</p>		<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">T<font style="font: 10pt Times New Roman, Times, Serif">he revolving loan and the term loan now bear interest at (a) the sum of the Alternate Base Rate plus three percent (3%) with respect to Domestic Rate Loans, and (b) the sum of the Eurodollar rate plus four and one-half percent (4.5%) with respect to Eurodollar Rate Loans. Both the revolving loan and the term loan mature on December 31, 2018 and are classified with the current portion of notes and capital lease obligations.</font></p>
Coverage ratio, description								As of September 30, 2018, we had outstanding $4,775,000 principal amount of 8% Notes, of which $2,575,000 principal amount is due on November 30, 2018 and $2,200,000 principal amount is due on February 28, 2019.
Line of credit facility payment								$ 2,244,071
Line of credit PNC's counsel fees								50,000
Revolving credit loan debt to PNC								22,433,000		19,926,000
Revolving credit loan term amount								2,363,000		3,471,000
Placement agent fee equal amount								$ 160,000
Placement invested percentage								8.00%
Related party advances and notes payable, net of debt discounts								$ 2,860,000		$ 1,912,000
Common Stock issued								$ 360,000
Related party notes payable allocated percentage, description								The number of Shares purchased by Michael Taglich and Robert Taglich was calculated based upon $1.68, the closing price of the common stock on May 20, 2018, the trading day immediately preceding the date they purchased the 2019 Notes and shares of common stock.
Notes payable percentage													8.00%
Additional investors			$ 100,000					$ 150,000
Sixteenth Amendment [Member]
Notes Payable and Capital Lease Obligations (Textual)
Term loan								2,363,000
Revolving loan								20,000,000
Fee amount								$ 125,000
Coverage ratio, description								The Sixteenth Amendment imposes minimum EBITDA (as defined in the Loan Agreement) covenants of not less than (i) $75,000 for the three-month period ending March 31, 2018, (ii) $485,000 for the six month period ending June 30, 2018, and (iii) $1,200,000 for the nine-month period ending September 30, 2018.
Subordinated Convertible Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Sale of principle convertible note interest rate							8.00%
Private Placement [Member]
Notes Payable and Capital Lease Obligations (Textual)
Received gross proceeds				$ 2,000,000
2019 Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Aggregate principal amount		$ 1,200,000
Subordinated Notes Maturity Date		May 31, 2019
Common Stock issued		$ 214,762
Related party notes payable allocated percentage, description		Seventy percent (70%) of the total purchase price for the 2019 Notes and Shares purchased by each investor has been allocated to the 2019 Notes with the remaining thirty percent (30%) allocated to the Shares purchased with the 2019 Notes.
Notes payable percentage		1.00%
Accrued interest on notes payable		1.25%
Placement agent fee		4.00%
Michael Taglich [Member]
Notes Payable and Capital Lease Obligations (Textual)
Received gross proceeds							$ 1,950,000
Common stock purchased, shares					144,927
Common stock warrants to purchase					48,000
Common stock purchase price					$ 200,000
Advanced from related parties												$ 1,000,000
Michael Taglich [Member] \| Other accredited investor [Member]
Notes Payable and Capital Lease Obligations (Textual)
Aggregate principal amount		$ 100,000
Common Stock issued		18,334
Total purchase price		100,000
Michael Taglich [Member] \| 2019 Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Aggregate principal amount		1,000,000
Common Stock issued		178,571
Total purchase price		1,000,000
Robert [Member]
Notes Payable and Capital Lease Obligations (Textual)
Received gross proceeds							1,950,000
Common stock purchased, shares					72,463
Common stock warrants to purchase					24,000
Common stock purchase price					$ 100,000
Advanced from related parties											$ 100,000
Robert [Member] \| 2019 Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Aggregate principal amount		100,000
Common Stock issued		17,857
Total purchase price		$ 1,000,000
Taglich Brothers, Inc., [Member]
Notes Payable and Capital Lease Obligations (Textual)
Initial principal amount							$ 382,000
Minimum
Notes Payable and Capital Lease Obligations (Textual)
Line of credit facility payment						$ 25,000
Capital lease obligations interest rates								4.00%		4.00%
Maximum [Member]
Notes Payable and Capital Lease Obligations (Textual)
Line of credit facility payment						$ 100,000
Capital lease obligations interest rates								14.00%		14.00%

Notes Payable and Capital Lease Obligations (Details Textual 1) - USD ($)	4 Months Ended	9 Months Ended
	Mar. 21, 2017	Sep. 30, 2018	Feb. 28, 2017
Notes Payable and Capital Lease Obligations (Textual)
Debt instrument aggregate principal value		$ 297,000
Outstanding interest, percentage			8.00%
Accrued interest payable		$ 1,269,000
Debr instrument interest rate, description		Interest for that quarterly interest payment shall be calculated at the rate of 12% per annum. Upon the occurrence and continuation of an event of default, interest shall accrue at the rate of 12% per annum.
Debt instrument principal, description		As of September 30, 2018, we had outstanding $4,775,000 principal amount of 8% Notes, of which $2,575,000 principal amount is due on November 30, 2018 and $2,200,000 principal amount is due on February 28, 2019.
Common stock conversion prices decrease		$ 2.25
Common stock conversion prices increase		$ 4.45
Warrants issued, percentage		8.00%
Warrant, description		Of these warrants, 320,702 warrants may be exercised until November 30, 2021 and 243,307 warrants may be exercised until January 31, 2022.
Minimum
Notes Payable and Capital Lease Obligations (Textual)
Offerings per share		$ 3.00
Maximum [Member]
Notes Payable and Capital Lease Obligations (Textual)
Offerings per share		$ 4.53
Taglich Brothers, Inc., [Member]
Notes Payable and Capital Lease Obligations (Textual)
Warrants to purchase common stock, shares	180,977
Debt instrument aggregate principal value	$ 382,000
Amendments to 8% Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Debt instrument principal, description		Michael Taglich, Robert Taglich and Taglich Brothers (collectively, the “Taglich Parties”) owned $1,300,000, $650,000 and $382,000, respectively, principal amount of 8% Notes, with accrued interest thereon from the date of issuance through September 30, 2018 of $203,613, $120,097 and $68,294, respectively. In consideration for waiving all defaults in payment of principal and accrued interest on the 8% Notes through the date of the amendment, the conversion price of the Amended Notes owned by the Taglich Parties and the other holders of the Amended Notes has been reduced to $1.50 per share, subject to the anti-dilution adjustments set forth in the Amended Notes and the 8% Notes, and the Company issued to the Taglich Parties and the other holders of the 8% Notes such number of shares of common stock calculated based upon a value of $1.39 per share, the closing market price of common stock on the NYSE American on September 28, 2018, the date immediately prior to the date the holders of a majority of the outstanding principal amount of the 8% Notes approved the amendment as is equal to the interest accrued on their 8% Notes from the date of issuance through September 30, 2018. As a result, the Company issued to Michael Taglich, Robert Taglich and Taglich Brothers 146,484 shares, 86,401 shares and 49,132 shares, respectively, of common Stock.
Interest on unpaid principal amount, description		From and after September 30, 2018, interest on the unpaid principal amount of the Amended Notes shall accrue and be paid at the rate of six (6%) percent per annum, if paid in cash, or at the rate of eight (8%) percent per annum if converted into common stock.
Adoption of amendments, description		The Company agreed to pay Taglich Brothers $95,550, representing a fee equal to 2% of the outstanding principal amount of Notes whose registered holders (other than Taglich Brothers) received shares of common stock in lieu of cash payment of accrued interest on the 8% Notes as of September 30, 2018.
Majority of outstanding principal amount, description		<font style="font: 10pt Times New Roman, Times, Serif">In September 2018, holders of a majority of the outstanding principal amount of the 8% Notes consented to an amendment to the terms of the 8% Notes to extend the maturity date to December 31, 2020 and to provide that interest on the 8% Notes, as amended (the “Amended Notes”), shall accrue and be paid on the due date of the Amended Notes or, if earlier, upon conversion of the Amended Notes into shares of common stock.
Private Placements of 8% Subordinated Convertible Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Proceeds from receiving of gross	$ 4,775,000
Warrants to purchase common stock, shares	383,080
Private Placements of 8% Subordinated Convertible Notes [Member] \| Robert and Michael Taglich [Member]
Notes Payable and Capital Lease Obligations (Textual)
Proceeds from receiving of gross	$ 1,950,000
Percentage of subordinated convertible notes	8.00%
Private Placement [Member]
Notes Payable and Capital Lease Obligations (Textual)
Gross proceeds amount		$ 1,200,000

Stockholders' Equity (Details)	9 Months Ended
Stockholders' Equity (Details)	Sep. 30, 2018 USD ($) $ / shares shares
Total Investment \| $	$ 2,000,000
Number of shares	1,577,390
Number of warrants	480,000
11/29/2017 [Member]
Total Investment \| $	$ 300,000
Number of shares	217,390
Price \| $ / shares	$ 1.38
Number of warrants	72,000
Ex Price \| $ / shares	$ 1.50
12/5/2017 [Member]
Total Investment \| $	$ 400,000
Number of shares	320,000
Price \| $ / shares	$ 1.25
Number of warrants	96,000
Ex Price \| $ / shares	$ 1.50
12/29/2017 [Member]
Total Investment \| $	$ 235,000
Number of shares	188,000
Price \| $ / shares	$ 1.25
Number of warrants	56,400
Ex Price \| $ / shares	$ 1.50
Subtotal - 2017 [Member]
Total Investment \| $	$ 935,000
Number of shares	725,390
Price \| $ / shares
Number of warrants	224,400
Ex Price \| $ / shares
1/9/2018
Total Investment \| $	$ 1,065,000
Number of shares	852,000
Price \| $ / shares	$ 1.25
Number of warrants	255,600
Ex Price \| $ / shares	$ 1.50

Stockholders' Equity (Details Textual)						1 Months Ended		9 Months Ended
Stockholders' Equity (Details Textual)	Oct. 01, 2018 USD ($) shares	Jan. 09, 2018 USD ($) Investors / Number $ / shares shares	Dec. 29, 2017 USD ($) shares	Dec. 05, 2017 USD ($) shares	Nov. 29, 2017 USD ($) shares	Jul. 19, 2018 USD ($) $ / shares shares	May 31, 2018 USD ($)	Sep. 30, 2018 USD ($) $ / shares shares	Sep. 30, 2017 USD ($) shares	Dec. 31, 2017 USD ($)
Stockholders' Equity (Textual)
Common stock shares offered \| shares			725,390	725,390	725,390
Purchase of common stock, shares \| shares			224,400	224,400	224,400
Gross proceeds from offering			$ 935,000	$ 935,000	$ 935,000			$ 1,885,000	$ 7,762,000
Warrants exercise price, per share \| $ / shares								$ 1.50
Warrants exercisable date								Nov. 30, 2022
Common stock issued in lieu of cash payment \| shares								123,456
Related party advances and notes payable, net of debt discounts								$ 2,860,000		$ 1,912,000
Common stock issued								$ 360,000
Description of placement agent fee								For acting as placement agent of the offering, Taglich Brothers, Inc. is entitled to a placement agent fee equal to $27,627 (6% of the gross proceeds of the offering), payable at the Company’s option, in cash or shares of Common Stock on the terms sold to the purchasers.
Subsequent Event [Member]
Stockholders' Equity (Textual)
Common stock shares offered \| shares	280,000
Gross proceeds from offering	$ 1,000,000
Total purchase price	$ 800,000
Subsequent event, Description	<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a) of Regulation D under the Securities Act (“Regulation D”), in a private offering exempt from the registration requirements of the Securities Act under Rule 506 of Regulation D and Section 4(a)(2) of the Securities Act. The Company agreed to pay Taglich Brothers $70,000 (7% of the gross proceeds of the offering) for acting as placement agent for the offering.</p>
Four accredited investors[Member]
Stockholders' Equity (Textual)
Common stock purchase price per share \| $ / shares						$ 1.43
Sale of common stock shares \| shares						322,000
Sale of common stock value						$ 460,460
Two Thousand Nineteen [Member]
Stockholders' Equity (Textual)
Aggregate principal amount							$ 1,200,000
Subordinated notes maturity date							May 31, 2019
Common stock issued							$ 214,762
Michael Taglich [Member] \| Two Thousand Nineteen [Member]
Stockholders' Equity (Textual)
Aggregate principal amount							1,000,000
Common stock issued							178,571
Total purchase price							1,000,000
Michael Taglich [Member] \| Other accredited investor [Member]
Stockholders' Equity (Textual)
Aggregate principal amount							100,000
Common stock issued							18,334
Total purchase price							100,000
Robert [Member] \| Two Thousand Nineteen [Member]
Stockholders' Equity (Textual)
Aggregate principal amount							100,000
Common stock issued							17,857
Total purchase price							$ 1,000,000
Placement Agency Agreement [Member]
Stockholders' Equity (Textual)
Common stock shares offered \| shares		852,000			1,600,000			85,200	0
Warrants term					5 years
Purchase of common stock, shares \| shares		255,600			24,000
Purchase of common stock, value					$ 100,000
Number of accredited investors issued and sold \| Investors / Number		35
Gross proceeds from offering		$ 1,065,000			$ 2,000,000
Warrants exercise price, per share \| $ / shares		$ 1.25
Shares and warrants offering, description								In connection with the Offering, Taglich Brothers, Inc., a related party, which acted as placement agent for the sale of the Shares and Warrants, is entitled to a placement agent fee equal to $104,000 (8% of the amounts invested), payable at the Company's option, in cash or additional shares of common stock and warrants having the same terms and conditions as the Shares and Warrants.

Commitments and Contingencies (Details)	Jan. 11, 2017 USD ($)
Commitments and Contingencies (Textual)
Past rent arrears received	$ 31,000

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Current
Federal
State			2,000	8,000
Prior year over accrual
Federal				(178,000)
State
Total current expense (benefit)			2,000	(170,000)
Deferred Tax Benefit
Valuation Allowance
Net Provision for (Benefit from) Income Taxes		$ 29,000	$ 2,000	$ (170,000)

Income Taxes (Details Textual) - USD ($)	1 Months Ended	9 Months Ended
Income Taxes (Details Textual) - USD ($)	Jan. 31, 2018	Sep. 30, 2018
Income Taxes (Textual)
Federal income tax benefit		$ 1,075,000
Maximum [Member]
Income Taxes (Textual)
U.S. federal corporate rate	35.00%
Minimum
Income Taxes (Textual)
U.S. federal corporate rate	21.00%

Segment Reporting (Details) - USD ($)	3 Months Ended		9 Months Ended
Segment Reporting (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Net Sales	$ 11,043,000	$ 13,690,000	$ 35,200,000	$ 40,235,000
Gross Profit (Loss)	1,360,000	1,557,000	4,951,000	5,531,000
Pre Tax Loss (Loss)	(1,360,000)	(2,913,000)	(4,583,000)	(6,456,000)
Provision for (Benefit from) Income Taxes		29,000	2,000	(170,000)
Assets	63,012,000		63,012,000		$ 60,755,000
CONSOLIDATED [Member]
Net Sales	11,043,000	13,690,000	35,200,000	40,235,000
Gross Profit (Loss)	1,360,000	1,557,000	4,951,000	5,531,000
Pre Tax Loss (Loss)	(1,360,000)	(2,913,000)	(4,583,000)	(6,456,000)
Provision for (Benefit from) Income Taxes		29,000	2,000	(170,000)
(Loss) Income from Discontinued Operations	(1,770,000)	62,000	172,000	280,000
Net Loss	(3,130,000)	(2,880,000)	(4,413,000)	(6,006,000)
Assets Held for Sale	12,341,000	16,959,000	12,341,000	16,959,000
Assets	63,012,000	76,265,000	63,012,000	76,265,000
TURBINE ENGINE COMPONENTS [Member]
Net Sales	1,043,000	1,649,000	3,593,000	5,469,000
Gross Profit (Loss)	(67,000)	(67,000)	(60,000)	(246,000)
Pre Tax Loss (Loss)	(246,000)	(613,000)	(817,000)	(2,110,000)
Assets	5,661,000	11,220,000	5,661,000	11,220,000
AEROSTRUCTURES & ELECTRONICS [Member]
Net Sales	310,000	1,843,000	1,585,000	4,204,000
Gross Profit (Loss)	(6,000)	174,000	86,000	488,000
Pre Tax Loss (Loss)	(125,000)	(602,000)	(652,000)	(1,750,000)
Assets	1,320,000	2,763,000	1,320,000	2,763,000
COMPLEX MACHINING [Member]
Net Sales	9,690,000	10,198,000	30,022,000	30,562,000
Gross Profit (Loss)	1,433,000	1,450,000	4,925,000	5,289,000
Pre Tax Loss (Loss)	530,000	(90,000)	1,303,000	(383,000)
Assets	43,418,000	44,362,000	43,418,000	44,362,000
CORPORATE [Member]
Net Sales
Gross Profit (Loss)
Pre Tax Loss (Loss)	(1,519,000)	(1,608,000)	(4,417,000)	(2,213,000)
Assets	$ 272,000	$ 961,000	$ 272,000	$ 961,000

Segment Reporting (Details Textual)	9 Months Ended
Segment Reporting (Details Textual)	Sep. 30, 2018 Segments
Segment Reporting (Textual)
Number of reportable segments	3