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March 2019

March 2018

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	May 03, 2019
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	Mar. 31, 2019
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		28,710,983

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Assets
Cash and Cash Equivalents	$ 442,000	$ 2,012,000
Accounts Receivable, Net of Allowance for Doubtful Accounts of $524,000 and $524,000, respectively	8,241,000	6,522,000
Inventory	28,687,000	29,051,000
Prepaid Expenses and Other Current Assets	529,000	414,000
Prepaid Taxes	8,000	49,000
Total Current Assets	37,907,000	38,048,000
Property and Equipment, Net	8,226,000	8,777,000
Operating Lease Right-Of-Use-Asset	3,969,000
Deferred Financing Costs, Net, Deposits and Other Assets	1,031,000	768,000
Goodwill	163,000	163,000
TOTAL ASSETS	51,296,000	47,756,000
Current Liabilities
Notes Payable and Finance Lease Obligations - Current Portion	19,341,000	16,793,000
Notes Payable - Related Party - Current Portion	2,552,000	2,552,000
Operating Lease Liabilities - Current Portion	624,000
Accounts Payable and Accrued Expenses	8,553,000	8,723,000
Deferred Gain on Sale - Current Portion	38,000	38,000
Deferred Revenue	896,000	881,000
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary - Current Portion	200,000
Income Taxes Payable		20,000
Total Current Liabilities	32,204,000	29,007,000
Long Term Liabilities
Notes Payable and Finance Lease Obligations - Net of Current Portion	318,000	3,438,000
Notes Payable - Related Party - Net of Current Portion	2,430,000	2,283,000
Deferred Gain on Sale - Net of Current Portion	247,000	257,000
Operating Lease Liabilities - Net of Current Portion	4,772,000
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary - Net of Current Portion	521,000
Deferred Rent		1,165,000
TOTAL LIABILITIES	40,492,000	36,150,000
Commitments and Contingencies
Stockholders' Equity
Preferred Stock, par value $.001 - Authorized 3,000,000 shares, 0 shares outstanding, at both March 31, 2019 and December 31, 2018.
Common Stock - Par Value $.001 - Authorized 50,000,000 Shares, 28,685,582 and 28,392,070 Shares Issued and Outstanding as of March 31, 2019 and December 31, 2018, respectively	28,000	28,000
Additional Paid-In Capital	76,222,000	76,101,000
Accumulated Deficit	(65,446,000)	(64,523,000)
TOTAL STOCKHOLDERS' EQUITY	10,804,000	11,606,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 51,296,000	$ 47,756,000

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 524,000	$ 524,000
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	28,685,582	28,392,070
Common stock, shares outstanding	28,685,582	28,392,070

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net Sales	$ 13,878,000	$ 11,909,000
Cost of Sales	11,604,000	9,934,000
Gross Profit	2,274,000	1,975,000
Operating Expenses	2,062,000	2,474,000
Loss on abandonment of Leases	(275,000)
Loss from Operations	(63,000)	(499,000)
Interest and Financing Costs	(963,000)	(776,000)
Other Income, Net	31,000	16,000
Loss before Benefit from for Income Taxes	(995,000)	(1,259,000)
Provision for (Benefit from) Income Taxes
Loss from Continuing Operations	(995,000)	(1,259,000)
Income (Loss) from Discontinued Operations, net of tax	72,000	(209,000)
Net Loss	$ (923,000)	$ (1,468,000)
Net Income (Loss) per share – Basic
Continuing Operations	$ (0.03)	$ (0.05)
Discontinued Operations	0.00	(0.01)
Net Income (Loss) per share – Diluted
Continuing Operations	(0.03)	(0.05)
Discontinued Operations	$ 0.00	$ (0.01)
Weighted average shares outstanding-Basic	28,601,390	26,116,262
Weighted average shares outstanding-Diluted	28,601,390	26,116,262

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2017	$ 25,000	$ 71,272,000	$ (53,531,000)	$ 17,766,000
Balance, shares at Dec. 31, 2017	25,213,805
Stock Compensation Expense		83,000		83,000
Issuance of Common stock	$ 1,000	979,000		980,000
Issuance of Common stock, shares	868,080
Common stock issued for legal fees		200,000		200,000
Common stock issued for legal fees, shares	123,456
Other Adjustment – Rounding			(2,000)	(2,000)
Net Loss			(1,468,000)	(1,468,000)
Balance at Mar. 31, 2018	$ 26,000	72,534,000	(55,001,000)	17,559,000
Balance, shares at Mar. 31, 2018	26,205,341
Balance at Dec. 31, 2018	$ 28,000	76,101,000	(64,523,000)	11,606,000
Balance, shares at Dec. 31, 2018	28,392,853
Common stock issued for directors fees		131,000		131,000
Common stock issued for directors fees, shares	147,830
Share Issuance Costs		(58,000)		(58,000)
Stock Compensation Expense		233,000		233,000
Other Adjustments – Shares Issued
Other Adjustments – Shares Issued, shares	144,899
Other Adjustments – Fair Value allocation		(185,000)		(185,000)
Net Loss			(923,000)	(923,000)
Balance at Mar. 31, 2019	$ 28,000	$ 76,222,000	$ (65,446,000)	$ 10,804,000
Balance, shares at Mar. 31, 2019	28,685,582

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (923,000)	$ (1,468,000)
Adjustments to reconcile net loss to net cash provided by (used in) in operating activities
Depreciation of property and equipment	666,000	722,000
Non-cash employee compensation expense	233,000	83,000
Non-cash directors compensation	39,000
Non-cash other income recognized	(109,000)
Non-cash interest expense	33,000
Abandonment of lease	275,000
Amortization of Right-of-Use Asset	124,000
Deferred gain on sale of real estate	(10,000)	(10,000)
(Gain) loss on sale of equipment	(42,000)
Amortization of debt discount on convertible notes payable	194,000	275,000
Amortization of intangible assets		38,000
Amortization of capitalized engineering costs		145,000
Bad debt expense		270,000
Amortization of deferred financing costs		69,000
Changes in Assets and Liabilities (Increase) Decrease in Operating Assets:
Accounts receivable	(1,669,000)	(1,025,000)
Inventory	364,000	(733,000)
Prepaid expenses and other current assets	(115,000)	(103,000)
Prepaid taxes	41,000
Deposits and other assets	(263,000)	(124,000)
Increase (Decrease) in Operating Liabilities:
Accounts payable and accrued expenses	(425,000)	(97,000)
Operating lease liabilities	(136,000)
Income taxes payable	(20,000)
Deferred revenue	15,000	175,000
Deferred rent		1,000
NET CASH USED IN OPERATING ACTIVITIES	(1,728,000)	(1,782,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalized engineering costs		(164,000)
Purchase of property and equipment	(30,000)	(144,000)
Proceeds from sale of equipment	84,000
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	54,000	(308,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Note payable - revolver - net	19,000	1,489,000
Payments of note payable - term notes	(370,000)	(369,000)
Proceeds from sale of future proceeds from disposition of subsidiary	800,000
Transaction costs from sale of future proceeds from disposition of subsidiary	(3,000)
Payments of finance lease obligations	(284,000)	(310,000)
Share issuance costs	(58,000)
Proceeds from issuance of common stock		1,065,000
Proceeds from notes payable issuances- related party		1,000,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	104,000	2,875,000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,570,000)	785,000
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	2,012,000	630,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	442,000	1,415,000
Supplemental cash flow information
Cash paid during the period for interest	285,000	390,000
Cash paid during the period for income taxes		2,000
Supplemental disclosure of non-cash transactions
Right of Use Asset additions under ASC 842	4,368,000
Operating Lease Liabilities under ASC 842	5,397,000
Write-off deferred rent under ASC 842	1,165,000
Supplemental schedule of non-cash investing and financing activities
Common Stock issued in lieu of cash for services	131,000	200,000
Classification of assets held for sale		2,000
Liabilities directly associated with assets held for sale		$ 330,000

Formation and Basis of Presentation

3 Months Ended

Mar. 31, 2019

Formation and Basis of Presentation [Abstract]

FORMATION AND BASIS OF PRESENTATION

Note 1. FORMATION AND BASIS OF PRESENTATION

Organization

Air Industries Group is a Nevada corporation (“AIRI”), as of and for the three months ending March 31, 2019, the accompanying condensed consolidated financial statements presented are those of AIRI, and its wholly-owned subsidiaries; Air Industries Machining Corp. (“AIM”), Nassau Tool Works, Inc. (“NTW”), Eur-Pac Corporation (“Eur-Pac” or “EPC”), Electronic Connection Corporation (“ECC”), Air Realty Group, LLC (“Air Realty”), and The Sterling Engineering Corporation (“Sterling”), (together, the “Company”). As of and for the three months ending March 31, 2018, the accompanying condensed consolidated financial statements presented also include the Company’s former subsidies: Welding Metallurgy, Inc. (“WMI”) including its wholly owned subsidiaries Miller Stuart, Inc. (“Miller Stuart”), Woodbine Products, Inc. (“Woodbine” or “WPI”), Decimal Industries, Inc. (“Decimal”) and Compac Development Corporation (“Compac”).

Going Concern

The Company suffered losses from operations and generated negative cash flows from operations for the three months ended March 31, 2019 and the years ended December 31, 2018 and 2017. In the past several years, it has repositioned its business, hired new management and has renewed focus on achieving long-term profitability with a sharp focus on customer satisfaction.

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 three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission.

Reclassifications

Certain account balances in 2018 have been reclassified to conform to the current period presentation.

Sale of Welding Metallurgy Inc.

On December 20, 2018, the Company sold all of the outstanding shares of Welding Metallurgy, Inc. (“WMI”) including its wholly owned subsidiaries Miller Stuart, Inc. (“Miller Stuart”), Woodbine Products, Inc. (“Woodbine” or “WPI”), Decimal Industries, Inc. (“Decimal”) and Compac Development Corporation (“Compac”) to CPI Aerostructures, Inc. (“CPI”), pursuant to a Stock Purchase Agreement (“SPA”) for a purchase price of $9,000,000, reduced by an estimated working capital adjustment of ($1,093,000). The sale required an escrow deposit of $2,000,000 to cover the final 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. The amount of the working capital deficit has been contested by CPI and the discrepancy will likely be resolved through arbitration in accordance with the terms of the Stock Purchase Agreement.

Closing of EPC and ECC

As previously reported in the Company’s SEC filings, management completed its shut-down plan of EPC and closed related operations during the quarter ending March 31, 2019. In connection with this shut-down, the Company recognized a loss on abandoned assets of $386,000.

Additionally, the Company determined that goodwill for ECC in the amount of $109,000 had been impaired and is included in the loss from continuing operations.

Adoption of ASC 842

On January 1, 2019, the Company adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC 842, which requires the recognition of the right-of-use assets and related operating and finance lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements for certain leases. As permitted by ASC 842, the Company elected the adoption date of January 1, 2019, which is the date of initial application. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated, continues to be reported under ASC Topic 840, Leases, or ASC 840, which did not require the recognition of operating lease liabilities on the balance sheet, and is not comparative. Under ASC 842, all leases are required to be recorded on the balance sheet and are classified as either operating leases or finance leases. The lease classification affects the expense recognition in the income statement. Operating lease charges are recorded entirely in operating expenses. Finance lease charges are split, where amortization of the right-of-use asset is recorded in operating expenses and an implied interest component is recorded in interest expense. The expense recognition for operating leases and finance leases under ASC 842 is substantially consistent with ASC 840. As a result, there is no significant difference in the Company’s results of operations presented in the condensed consolidated statement of operations for each period presented.

The Company adopted ASC 842 using a modified retrospective approach for all leases existing at January 1, 2019. The adoption of ASC 842 had a substantial impact on the Company’s balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. The accounting of finance leases was substantially unchanged. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and the Company recorded an adjustment of $4,368,000 to operating lease right-of-use assets and the related lease liability. The lease liability is based on the present value of the remaining minimum lease payments, determined under ASC 840, discounted using the Company’s incremental borrowing rate at the effective date of January 1, 2019, using the original lease term as the tenor. As permitted under ASC 842, the Company elected several practical expedients that permits them to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability.

The impact of the adoption of ASC 842 on the balance sheet at December 31, 2018 was:

	As Reported December 31, 2018		Adoption of ASC 842 Increase (Decrease)			Balance January 1, 2019
Operating Lease Right-Of-Use-Asset	$	—	$	4,368,000		$	4,368,000
Total Assets		47,756,000		4,368,000			52,124,000
Operating Leases Liabilities – Current Portion		—		547,000			547,000
Total Current Liabilities		29,007,000		547,000			29,554,000
Operating Leases Liabilities – Net of Current Portion		—		4,986,000			4,986,000
Deferred Rent		1,165,000		(1,165,000	)		—
Total Liabilities		36,150,000		4,368,000			40,518,000
Total Liabilities and Stockholders’ Equity		47,756,000		4,368,000			52,124,000

	March 31, 2019
Weighted Average Remaining Lease Term – in years		6.97
Weighted Average discount rate - %		9.5	%

The aggregate undiscounted cashflows of operating lease payments, with remaining terms greater than one year are as follows:

	Amount
For the twelve months ended December 31,
December 31, 2019 (remaining nine months)	$	829,000
December 31, 2020		1,136,000
December 31, 2021		1,118,000
December 31, 2022		868,000
December 31, 2023		895,000
Thereafter		2,604,000
Total future minimum lease payments		7,450,000
Less: discount		(2,054,000	)
Total operating lease maturities		5,396,000
Less: current portion of operating lease liabilities		(624,000	)
Total long term portion of operating lease maturities	$	4,772,000

The Company leases substantially all of its office space, technology equipment and office equipment used to conduct its business. The Company adopted ASC 842 effective January 1, 2019. For contracts entered into on or after the effective date, at the inception of a contract it assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether its obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether it has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. Leases entered into prior to January 1, 2019, are accounted for under ASC 840 and were not reassessed.

Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Substantially all the Company’s operating leases are comprised of office space leases and substantially all its finance leases are comprised of office furniture and technology equipment.

For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease.

The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. For the Company’s real estate and other operating leases, the Company uses its incremental borrowing rate. For the Company’s finance leases, they use the rate implicit in the lease or their incremental borrowing rate if the implicit lease rate cannot be determined.

Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early.

Some of the Company’s real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and separated into lease and non-lease components based on the initial amount stated in the lease or standalone selling prices. Lease components are included in the measurement of the initial lease liability. Additional payments based on the change in an index or rate, or payments based on a change in the Company’s portion of the operating expenses, including real estate taxes and insurance, are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability.

Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on its right-of-use asset and lease liability was not material.

As part of the effort to reduce costs, certain corporate executive offices were moved to an existing 5.4 acre corporate campus in Bay Shore, New York. The Company remains liable under the lease for the office in Hauppauge, New York which is now vacant. This lease has a term which ends January 2022. The annual rent was approximately $113,000 for the lease year which began in January 2019 and increases by approximately 3% per annum each year thereafter. Accordingly, the Company recognized an impairment of $275,000 to its Operating Lease Right-of-Use-Asset.

Subsequent Events

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

Discontinued Operations

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Note 2. DISCONTINUED OPERATIONS

As discussed in Note 1, the Company sold WMI, Miller Stuart, WPI and Compac to CPI in December 2018. As such, these businesses are reported as discontinued operations for the three months ended March 31, 2018. 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 Condensed Consolidated Financial Statements refers to the Company's continuing operations.

Also discussed in Note 1, the Company disposed of its EPC and ECC subsidiaries in March 2019. As required, the Company has retrospectively recast its consolidated statements of operations for all periods presented. As such, these businesses are reported as discontinued operations for the three months ended March 31, 2019. 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 Condensed Consolidated Financial Statements refers to the Company's continuing operations.

At December 31, 2018, the Company recorded a loss on abandoned assets of $386,000 and a goodwill impairment charge for ECC in the amount of $109,000, as a result of the Companies decision to close its EPC and ECC businesses.

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 months ended March 31, 2019 and March 31, 2018:

	Three Months Ended March 31,
	2019			2018
	(unaudited)			(unaudited)
Net revenue	$	132,000		$	2,876,000
Cost of goods sold		105,000			2,456,000
Gross profit		27,000			420,000
Operating expenses:
Selling, general and administrative		96,000			627,000
Gain on impairment of assets		41,000			—
Total operating loss		(28,000	)		(207,000	)
Interest expense		(1,000	)		(1,000	)
Other income		101,000			1,000
Income (loss) from discontinued operations before income taxes		72,000			(207,000	)

Provision for income taxes		—			(2,000	)
Income (loss) from discontinued operations, net of income tax	$	72,000		$	(209,000	)

Non-cash operating amounts for discontinued operations for the three months ended March 31, 2019 include depreciation and amortization of $6,000. The Company did not incur any capital expenditures for discontinued operations for the three months ended March 31, 2019. There were no other significant non-cash operating amounts or investing items of the discontinued operations for the period.

Non-cash operating amounts for discontinued operations for the three months ended March 31, 2018 include depreciation of $49,000 and amortization of $38,000. The Company did not incur any capital expenditures for discontinued operations for the three months ended March 31, 2018. There were no other significant non-cash operating amounts or investing items of the discontinued operations for the period.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

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. Sterling Engineering manufactures components and provides services for jet engines and ground-power turbines. The Company’s customers consist mainly of publicly traded companies in the aerospace industry.

Inventory Valuation

For annual periods, the Company values inventory at the lower of cost on a first-in-first-out basis or estimated net realizable value. The Company does not take physical inventories at interim quarterly reporting periods. As such, substantially all of the inventory value at March 31, 2019 has been estimated using a gross profit percentage based on historical gross profit percentages of previous periods as applied 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 March 31, 2019 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:

	March 31,			December 31,
	2019			2018
	(unaudited)
Raw Materials	$	4,445,000		$	4,622,000
Work In Progress		18,290,000			17,530,000
Finished Goods		10,095,000			10,915,000
Inventory Reserve		(4,143,000	)		(4,016,000	)
Total Inventory	$	28,687,000		$	29,051,000

Credit and Concentration Risks

There were three customers that represented 73.8% and 73.1% of total sales for the three months ended March 31, 2019 and 2018, respectively. This is set forth in the table below.

There were two customers that represented 57.0% and 64.5% of gross accounts receivable at March 31, 2019 and December 31, 2018, respectively. This is set forth in the table below.

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
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		28,601,390		26,116,262
Effect of dilutive stock options and warrants		—		—
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		28,601,390		26,116,262

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

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Stock Options		861,000		354,000
Warrants		2,240,000		1,480,000
		3,101,000		1,834,000

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:

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Convertible Preferred Stock		—		—
Stock Options		500,000		695,000
Warrants		—		480,000
		500,000		1,175,000

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 expense for employees and directors amounted to $272,000 and $83,000 for the three months ended March 31, 2019 and 2018, respectively, and was included in operating expenses on the accompanying Condensed Consolidated Statements of Income.

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 $163,000 at March 31, 2019 and December 31, 2018 relates to the acquisitions of NTW.

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 March 31, 2019.

Recently Issued Accounting Pronouncements

In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements, which removed the requirement for an entity to disclose in the interim periods after adoption, the effect of the change on income from continuing operations, net income, any other affected financial statement line item, and any affected per share amount. For lessors, the new leasing standard requires leases to be classified as a sales-type, direct financing or operating leases. These criteria focus on the transfer of control of the underlying lease asset. This standard and related updates were effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2019-01 on January 1, 2019. See Note 1, Adoption of ASC 842, for disclosures related to this amended guidance.

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 adoption of ASU 2018-17 has no material impact on the Company’s consolidated financial statements as of and for the three months ended March 31, 2019.

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

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Note 4. PROPERTY AND EQUIPMENT

The components of property and equipment at March 31, 2019 and December 31, 2018 consisted of the following:

	March 31,			December 31,
	2019			2018
	(unaudited)
Land	$	300,000		$	300,000
Buildings and Improvements		1,708,000			1,708,000		31.5 years
Machinery and Equipment		11,538,000			11,579,000		5 - 8 years
Capital Lease Machinery and Equipment		6,495,000			6,495,000		5 - 8 years
Tools and Instruments		10,010,000			9,882,000		1.5 - 7 years
Automotive Equipment		177,000			177,000		5 years
Furniture and Fixtures		290,000			303,000		5 - 8 years
Leasehold Improvements		508,000			520,000		Term of Lease
Computers and Software		425,000			425,000		4 - 6 years
Total Property and Equipment		31,451,000			31,389,000
Less: Accumulated Depreciation		(23,225,000	)		(22,612,000	)
Property and Equipment, net	$	8,226,000		$	8,777,000

Depreciation expense for the three months ended March 31, 2019 and 2018 was approximately $660,000 and $700,000, respectively.

Assets held under financed lease obligations are depreciated over the shorter of their related lease terms or their estimated productive lives. Depreciation of assets under finance leases is included in depreciation expense for 2019 and 2018. Accumulated depreciation on these assets was approximately $5,183,000 and $4,827,000 as of March 31, 2019 and December 31, 2018, respectively.

Notes Payable, Related Party Notes Payable and Finance Lease Obligations

3 Months Ended

Mar. 31, 2019

Notes and Loans Payable [Abstract]

NOTES PAYABLE, RELATED PARTY NOTES PAYABLE AND FINANCE LEASE OBLIGATIONS

Note 5. NOTES PAYABLE, RELATED PARTY NOTES PAYABLE AND FINANCE LEASE OBLIGATIONS

Notes payable, related party notes payable and finance lease obligations consist of the following:

	March 31,			December 31,
	2019			2018
	(unaudited)
Revolving credit note payable to PNC Bank N.A. (“PNC”)	$	14,062,000		$	14,043,000
Term loan, PNC		1,202,000			1,572,000
Finance lease obligations		1,503,000			1,786,000
Related party notes payable, net of debt discount		4,982,000			4,835,000
Convertible notes payable-third parties, net of debt discount		2,892,000			2,830,000
Subtotal		24,641,000			25,066,000
Less: Current portion of notes payable, related party notes payable and finance lease obligations		(21,893,000	)		(19,345,000	)
Notes payable, related party notes payable and finance lease obligations, net of current portion	$	2,748,000		$	5,721,000

PNC Bank N.A. (“PNC”)

The Company has a Loan Facility with PNC that has been amended many times during its term. Substantially all of its assets are pledged as collateral under the Loan Facility. The Company is required to maintain a lockbox account with PNC, into which substantially all of its cash receipts are paid. The Loan Facility provides for a $15,000,000 revolving loan and a term loan with a balance of $1,202,000 at March 31, 2019 (the “Term Loan”). The repayment terms of the Term Loan provide for monthly principal installments in the amount of $123,133, payable on the first business day of each month, with a final payment of any unpaid balance of principal and interest payable on the scheduled maturity date.

The terms of the Loan Facility require, among other things, that the Company maintain a minimum EBITDA (as defined in the Loan Facility) for specified periods. In addition, the Company is limited in the amount of Capital Expenditures it can make. The Company is also limited to the amount of dividends it can pay as defined in the Loan Facility.

The Loan Facility has been amended many times during its term, most recently on May 30, 2018 (the “Sixteenth Amendment”), January 2, 2019 (the “Seventeenth Amendment”) and February 8, 2019 (the “Eighteenth Amendment”).

The Sixteenth Amendment waived 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 making capital expenditures above prescribed amounts.

Under the terms of the Seventeenth Amendment, the revolving loan and the Term Loan bear interest at a rate equal to the sum of the Alternate Base Rate (as defined in the Loan Agreement) plus four percent (4%). In addition to the amounts available as revolving loans secured by inventory and receivables pursuant to the formula set forth in the Loan Agreement, PNC has agreed to permit the revolving advances to exceed the formula amount by $1,000,000 as of December 31, 2018, provided that the Company reduce the “Out-of-Formula Loan” by $25,000 per week commencing April 1, 2019, with the unpaid balance payable in full on December 31, 2019. The indebtedness under the revolving loan and the Term Loan are classified with the current portion of notes and financing lease obligations.

Both the revolving loan, inclusive of the Out-of Formula Loan, and the Term Loan mature on December 31, 2019. As a condition to its agreement to extend the maturity of the obligations due under the Loan Agreement (the “Obligations”) to December 31, 2019, the Company is obligated to pay PNC an extension fee of (i) $250,000 on the earlier of (a) the date the Obligations are indefeasibly paid in full or (b) June 30, 2019, (ii) $125,000 on the earlier of (a) the date the Obligations are indefeasibly paid in full or (b) December 31, 2019, which amount is deemed earned in full if the Obligations have not been satisfied as of July 1, 2019, (iii) $125,000 on the earlier of (a) the date the Obligations are indefeasibly paid in full or (b) December 31, 2019, which amount is deemed earned in full if the Obligations have not been satisfied as of October 1, 2019 (iv) $500,000 on December 31, 2019, which amount is deemed earned in full if the Obligations have not been satisfied as of December 31, 2019. As a further condition to PNC’s agreement to extend the maturity of the Obligations, Michael and Robert Taglich purchased $2,000,000 principal amount of the Company’s Senior Subordinated Convertible Notes and arranged a financing giving purchasers a right to receive a pro rata portion of the AMK Revenue Stream Payments resulting in gross proceeds of $800,000, including $275,000 from Michael and Robert Taglich.

The Eighteenth Amendment requires the Company to maintain a minimum EBITDA of not less than (i) $1,500,000 for the twelve-month period ending December 31, 2018, (ii) $655,000 for the three-month period ending March 31, 2019, (iii) $1,860,000 for the six-month period ending June 30, 2019 and (iv) $3,110,000 for the nine-month period ending September 30, 2019. At March 31, 2019 and December 31, 2018 the Company was in compliance with the minimum EBITDA covenant.

As of March 31, 2019, the Company’s debt to PNC of $15,264,000 consisted of the revolving credit loan in the amount of $14,062,000 and the Term Loan in the amount of $1,202,000. The revolver balance was increased to include the Company’s negative general ledger balances of its controlled disbursement cash accounts. As of December 31, 2018, the Company’s debt to PNC of $15,615,000 consisted of the revolving credit note of $14,043,000 and the Term Loan of $1,572,000.

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.

Interest expense related to these credit facilities amounted to approximately $512,000 and $342,000 for the three months ended March 31, 2019 and 2018, respectively.

Finance Leases Payable – Equipment

The Company is committed under several financing leases for manufacturing and computer equipment. All leases have bargain purchase options exercisable at the termination of each lease. Financing lease obligations totaled $1,503,000 and $1,786,000 as of March 31, 2019 and December 31, 2018, respectively, with various interest rates ranging from approximately 4% to 14%.

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
December 31, 2019 (remainder of the year)	$	943,000
December 31, 2020		542,000
December 31, 2021		52,000
December 31, 2022		29,000
December 31, 2023		—
Thereafter		—
Present value of finance lease obligations		1,566,000
Less: imputed interest		(63,000	)
Less: current portion		(1,185,000	)
Total Long Term Portion	$	318,000

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.

On January 15, 2019, the Company issued its 7% senior subordinated convertible promissory notes due December 31, 2020, each in the principal amount of $1,000,000 (together, the “7% Notes”, to Michael Taglich and Robert Taglich, each for a purchase price of $1,000,000. The 7% Notes bear interest at the rate of 7% per annum, are convertible into shares of the Company’s common stock at a conversion price of $0.93 per share, subject to the anti-dilution adjustments set forth in the 7% Notes, are subordinate to the Company’s indebtedness under its credit facility with PNC Bank, National Association, and mature at December 31, 2020, or earlier upon an Event of Default (as defined in the 7% Notes).

In connection with the 7% Notes, the Company paid Taglich Brothers, Inc. a fee of $80,000 (4% of the purchase price of the 7% Notes), paid in the form of a promissory note having terms similar to the 7% Notes.

Private Placement of Subordinated Notes due May 31, 2019, 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 (the “2019 Notes”) to Michael Taglich and Robert Taglich, to evidence its obligation to repay the foregoing advances, together with shares of common stock.

In May 2018, the Company issued $1,200,000 of Subordinated Notes due May 31, 2019, 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, Inc. 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.

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

Date	Gross Proceeds		Promissory Note		$		Common Stock Price		Shares Issued
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

Related party advances and notes payable, net of debt discounts to Michael and Robert Taglich, and their affiliated entities, totaled $4,982,000 and $4,835,000, as of March 31, 2019 and December 31, 2018, respectively. Interest incurred on these related party notes amounted to approximately $130,000 and $63,000 for the three months ended March 31, 2019 and 2018, respectively, and is included in interest and financing costs in the statement of operations.

Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary

3 Months Ended

Mar. 31, 2019

NOTE 6. LIABILITY RELATED TO THE SALE OF FUTURE PROCEEDS FROM DISPOSITION OF SUBSIDIARY

In connection with the sale of the Company’s wholly-owned subsidiary, AMK Welding, Inc. (“AMK”) to Meyer Tool, Inc., (“Meyer”) in 2017, Meyer was obligated to pay the Company within 30 days after the end of each calendar quarter, commencing April 1, 2017, an amount equal to five (5%) percent of the net sales of AMK for that quarter until the aggregate payments made to the Company (the “Meyer Agreement”) equals $1,500,000 (the “Maximum Amount”).

As of December 31, 2018, the Company received an aggregate of $363,000 under the Meyer Agreement.

In order to increase liquidity, on January 15, 2019, the Company entered into a “Purchase Agreement” with 15 accredited investors (the “Purchasers”), including Michael and Robert Taglich, pursuant to which the Company assigned to the Purchasers all of their rights, title and interest to the remaining $1,137,000 of the $1,500,000 in payments due from Meyer for the sale of AMK (the “Remaining Amount”) for an immediate payment of $800,000, including $100,000 from each of Michael and Robert Taglich, and $75,000 for the benefit of the children of Michael Taglich. The timing of the payments is based upon the net sales of AMK. If the Purchasers have not received the entire Remaining Amount by March 31, 2023, they have the right to demand payment of their pro rata portion of the unpaid Remaining Amount from the Company (“Put Right”). To the extent the Purchasers exercise their Put Right, the remaining payments from Meyer will be retained by the Company.

The Purchasers have agreed to pay Taglich Brothers a fee equal to 2% per annum of the purchase price paid by such Purchasers, payable quarterly, to be deducted from the payments of the Remaining Amount, for acting as paying agent in connection with the payments from Meyer.

Although the Company sold all of its rights to retain the Remaining Amount, as a result of its obligation to the Purchasers, the Company is required to account for the Remaining Amount or portion thereof as income when earned. The Company recorded the $800,000 in proceeds as a liability on its condensed consolidated balance sheet, net of transaction costs of $3,000. Transaction costs will be amortized to interest expense over the estimated life of the Purchase Agreement.

As payments are remitted to the Purchasers, the balance of the recorded liability will be effectively repaid over the life of the Purchase Agreement. To determine the amortization of the recorded liability, the Company is required to estimate the total amount of future payment to be received by the Purchasers. The Company estimates that the entire Remaining Amount will be received, and accordingly, the Remaining Amount less the $800,000 purchase price received (the “Discount”) will be amortized into the liability balance and recorded as interest expense. The Discount will be amortized through the earliest date that the purchasers can exercise their Put Right, using the straight line method (which is not materially different than the effective interest method) over the estimated life of the Purchase Agreement with the Purchasers. Periodically the Company will assess the estimated payments to be made to the Purchasers related to the Meyer Agreement, and to the extent the amount or timing of the payments is materially different from their original estimates, the Company will prospectively adjust the amortization of the liability. The amount or timing of the payments from Meyer are not within the Company’s control. Since the inception of the Purchase Agreement, the Company estimates the effective annual interest rate over the life of the agreement to be approximately 18%.

The liability is classified between the current and non-current portion of liability related to sale of future proceeds from disposition of subsidiary based on the estimated recognition of the payments to be received by the purchasers in the next 12 months from the financial statements reporting date.

During the three months ended March 31, 2019, the Company recognized $109,000 of non-cash income reflected in “other income, net” on the consolidated statement of operations and recorded $33,000 of related non-cash interest expense related to the Purchase Agreement.

The table below shows the activity within the liability account for the three months ended March 31, 2019:

Liabilities related to sale of future proceeds from disposition of subsidiaries – beginning balance	$	—
Cash received from sale of future proceeds from disposition of subsidiary		800,000
Non-Cash other income recognized		(109,000	)
Non-Cash interest expense recognized		33,000
Liabilities related to sale of future proceeds from disposition of subsidiary – ending balance		724,000
Less: unamortized transaction costs		(3,000	)
Liability related to sale of future proceeds from disposition of subsidiary, net	$	721,000

Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

STOCKHOLDERS' EQUITY

Note 7. STOCKHOLDERS' EQUITY

Common Stock – Sale of Unregistered Securities

On November 29, 2017, Air Industries Group (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.

	Total		Shares				Warrants
Date	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

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 completed from November 2017 through January 2018, 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 $0 and $85,200 for the three months ended March 31, 2019 and 2018, respectively.

The Company issued 147,830 and 123,456 shares of common stock in lieu of cash payment for various services provided to the Company, for the three months ended March 31, 2019 and 2018, respectively.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 8. COMMITMENTS AND CONTINGENCIES

Loss Contingencies

A number of actions have been commenced against us 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 us. 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, as 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 l in May 2018 with respect to the property we at 110 Plant Avenue, Hauppauge, New York. In the action Contract Pharmacal seeks damages for an amount in excess of $1,000,000 for the Company's failure to make the entire premises available by the Sublease commencement date. The Company disputes the validity of the claims asserted by Contract Pharmacal and believes it has meritorious defenses to those claims and recently submitted a motion in opposition to its motion for summary judgement.

On October 15, 2018, a complaint was filed by a stockholder of the Company 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 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 (the "2017 Charter Amendment"). In the Complaint the plaintiff seeks to void the amendment and rescind any shares issued using the shares authorized by the amendment. The Company's Board of Directors has adopted an amendment to further increase the number of shares of Common Stock they are authorized to issue (the "2019 Charter Amendment"), subject to stockholder approval at the Company's 2019 Annual Meeting of Stockholders, which is scheduled for June 25, 2019. Counsel to the Company's insurance carrier has advised counsel to the plaintiff of the proposed amendment. The Company believes that approval of the 2019 Charter Amendment will remove any issues concerning its ability to issue shares of Common Stock, or the validity of shares issued in excess of the 25,000,000 authorized pursuant to the adoption of the 2017 Charter Amendment and that any amount the Company may pay to resolve this action will not be material.

From time to time the Company also may be engaged in various lawsuits and legal proceedings in the ordinary course of the Company's business. The Company is currently not aware of any legal proceedings the ultimate outcome of which, in our judgment based on information currently available, would have a material adverse effect on our business, financial condition or operating results. The Company, however, have had claims brought against them by a number of vendors due to their liquidity constraints. There are no proceedings in which any of their directors, officers or affiliates, or any registered or beneficial stockholder of the Company's common stock, is an adverse party or has a material interest adverse to the Company's interest.

Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 9. INCOME TAXES

The Company recorded no Federal income tax benefit for the three months ended March 31, 2019. A tax benefit of approximately $340,000 and $407,000 would have been recorded for the three months ended March 31, 2019 and 2018, respectively, had there not been a full valuation allowance recorded against incremental deferred tax assets created during those periods. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company’s annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives. As of March 31, 2019 and December 31, 2018, 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 March 31, is set forth below:

	2019			2018
	(unaudited)			(unaudited)
Current
Federal	$	—		$	—
State		—			—
Prior Year Under accrual
Federal		—			—
State		—			—

Total Current Expense		—			—
Deferred Tax Benefit		(340,000	)		(407,000	)
Valuation Allowance		340,000			407,000
Net Provision for (Benefit from) Income Taxes	$	—		$	—

Segment Reporting

3 Months Ended

Mar. 31, 2019

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 two operating segments: Complex Machining which consists of AIM and NTW and Turbine Engine Components which consists of Sterling. Along with the Company’s operating subsidiaries, the Company reports the results of their corporate division as an independent segment.

In March 2018, the Company announced its intent to divest WMI Group and related operations which divestiture was completed in December 2018 enabling us to focus on complex, machined products for aircraft landing gear, flight critical / flight safety equipment and jet turbine applications. Although WMI Group and the related operations had been classified as a discontinued operation, the Company continued to operate these businesses until the sale closed on December 20, 2018. In November 2018, the Company’s EPC subsidiary received a notice of debarment from bidding on or fulfilling future government contracts. The existing contracts that had already been awarded have been completed and the operations of the entity were closed on March 31, 2019. For reporting purposes WMI Group and EPC have been classified as discontinued operations for the three months ending March 31, 2019 and 2018.

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.

Financial information about the Company’s reporting segments for the three months ended March 31, 2019 and 2018 are as follows:

	Three Months Ended March 31,
	2019			2018
	(unaudited)			(unaudited)
COMPLEX MACHINING
Net Sales	$	12,418,000		$	10,627,000
Gross Profit		2,213,000			2,023,000
Pre Tax Income from continuing operations		1,443,000			116,000
Assets		45,554,000			45,014,000

TURBINE ENGINE COMPONENTS
Net Sales		1,460,000			1,282,000
Gross Profit (Loss)		61,000			(48,000	)
Pre Tax Loss from continuing operations		(170,000	)		(457,000	)
Assets		5,235,000			6,009,000

CORPORATE
Net Sales		—			—
Gross Profit		—			—
Pre Tax Loss from continuing operations		(2,268,000	)		(918,000	)
Assets		507,000			1,171,000

CONSOLIDATED
Net Sales		13,878,000			11,909,000
Gross Profit		2,274,000			1,975,000
Pre Tax Loss from continuing operations		(995,000	)		(1,259,000	)
Provision for (Benefit from) Income Taxes		—			—
Income (Loss) from Discontinued Operations, net of income tax		72,000			(209,000	)
Assets Held for Sale		—			10,412,000
Net Loss		(923,000	)		(1,468,000	)
Assets	$	51,296,000		$	62,606,000

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Principal Business Activity

Principal Business Activity

Inventory Valuation

Inventory Valuation

For annual periods, the Company values inventory at the lower of cost on a first-in-first-out basis or estimated net realizable value. The Company does not take physical inventories at interim quarterly reporting periods. As such, substantially all of the inventory value at March 31, 2019 has been estimated using a gross profit percentage based on historical gross profit percentages of previous periods as applied 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 March 31, 2019 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:

	March 31,			December 31,
	2019			2018
	(unaudited)
Raw Materials	$	4,445,000		$	4,622,000
Work In Progress		18,290,000			17,530,000
Finished Goods		10,095,000			10,915,000
Inventory Reserve		(4,143,000	)		(4,016,000	)
Total Inventory	$	28,687,000		$	29,051,000

Credit and Concentration Risks

Credit and Concentration Risks

There were three customers that represented 73.8% and 73.1% of total sales for the three months ended March 31, 2019 and 2018, respectively. This is set forth in the table below.

There were two customers that represented 57.0% and 64.5% of gross accounts receivable at March 31, 2019 and December 31, 2018, respectively. This is set forth in the table below.

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
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		28,601,390		26,116,262
Effect of dilutive stock options and warrants		—		—
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		28,601,390		26,116,262

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

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Stock Options		861,000		354,000
Warrants		2,240,000		1,480,000
		3,101,000		1,834,000

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Convertible Preferred Stock		—		—
Stock Options		500,000		695,000
Warrants		—		480,000
		500,000		1,175,000

Stock-Based Compensation

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 expense for employees and directors amounted to $272,000 and $83,000 for the three months ended March 31, 2019 and 2018, respectively, and was included in operating expenses on the accompanying Condensed Consolidated Statements of Income.

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 March 31, 2019.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

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 adoption of ASU 2018-17 has no material impact on the Company's consolidated financial statements as of and for the three months ended March 31, 2019.

Formation and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2019

Formation and Basis of Presentation [Abstract]

Schedule of impact of the adoption of ASC 842 on the balance sheet

	As Reported December 31, 2018		Adoption of ASC 842 Increase (Decrease)			Balance January 1, 2019
Operating Lease Right-Of-Use-Asset	$	—	$	4,368,000		$	4,368,000
Total Assets		47,756,000		4,368,000			52,124,000
Operating Leases Liabilities – Current Portion		—		547,000			547,000
Total Current Liabilities		29,007,000		547,000			29,554,000
Operating Leases Liabilities – Net of Current Portion		—		4,986,000			4,986,000
Deferred Rent		1,165,000		(1,165,000	)		—
Total Liabilities		36,150,000		4,368,000			40,518,000
Total Liabilities and Stockholders’ Equity		47,756,000		4,368,000			52,124,000

Components of lease costs, lease term and discount rate

	March 31, 2019
Weighted Average Remaining Lease Term – in years		6.97
Weighted Average discount rate - %		9.5	%

Maturities of lease liabilities

	Amount
For the twelve months ended December 31,
December 31, 2019 (remaining nine months)	$	829,000
December 31, 2020		1,136,000
December 31, 2021		1,118,000
December 31, 2022		868,000
December 31, 2023		895,000
Thereafter		2,604,000
Total future minimum lease payments		7,450,000
Less: discount		(2,054,000	)
Total operating lease maturities		5,396,000
Less: current portion of operating lease liabilities		(624,000	)
Total long term portion of operating lease maturities	$	4,772,000

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31,
	2019			2018
	(unaudited)			(unaudited)
Net revenue	$	132,000		$	2,876,000
Cost of goods sold		105,000			2,456,000
Gross profit		27,000			420,000
Operating expenses:
Selling, general and administrative		96,000			627,000
Gain on impairment of assets		41,000			—
Total operating loss		(28,000	)		(207,000	)
Interest expense		(1,000	)		(1,000	)
Other income		101,000			1,000
Income (loss) from discontinued operations before income taxes		72,000			(207,000	)

Provision for income taxes		—			(2,000	)
Income (loss) from discontinued operations, net of income tax	$	72,000		$	(209,000	)

- 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.

+ References

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+ Details

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of inventory valuation

	March 31,			December 31,
	2019			2018
	(unaudited)
Raw Materials	$	4,445,000		$	4,622,000
Work In Progress		18,290,000			17,530,000
Finished Goods		10,095,000			10,915,000
Inventory Reserve		(4,143,000	)		(4,016,000	)
Total Inventory	$	28,687,000		$	29,051,000

Schedule of credit and concentration risks

Customer	Percentage of Sales
	March 2019	March 2018
	(Unaudited)	(Unaudited)
1	31.4	34.5
2	28.8	28.6
3	13.6	10.0

Customer	Percentage of Receivables
	March 2019		December 2018
	(Unaudited)
1		35.5		38.3
2		21.5		26.2

Schedule of earnings per share

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		28,601,390		26,116,262
Effect of dilutive stock options and warrants		—		—
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		28,601,390		26,116,262

Schedule of anti-dilutive securities

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Stock Options		861,000		354,000
Warrants		2,240,000		1,480,000
		3,101,000		1,834,000

	Three Months Ended
	March 31, 2019		March 31, 2018
	(Unaudited)		(Unaudited)
Convertible Preferred Stock		—		—
Stock Options		500,000		695,000
Warrants		—		480,000
		500,000		1,175,000

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31,			December 31,
	2019			2018
	(unaudited)
Land	$	300,000		$	300,000
Buildings and Improvements		1,708,000			1,708,000		31.5 years
Machinery and Equipment		11,538,000			11,579,000		5 - 8 years
Capital Lease Machinery and Equipment		6,495,000			6,495,000		5 - 8 years
Tools and Instruments		10,010,000			9,882,000		1.5 - 7 years
Automotive Equipment		177,000			177,000		5 years
Furniture and Fixtures		290,000			303,000		5 - 8 years
Leasehold Improvements		508,000			520,000		Term of Lease
Computers and Software		425,000			425,000		4 - 6 years
Total Property and Equipment		31,451,000			31,389,000
Less: Accumulated Depreciation		(23,225,000	)		(22,612,000	)
Property and Equipment, net	$	8,226,000		$	8,777,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Tables)

3 Months Ended

Mar. 31, 2019

Notes and Loans Payable [Abstract]

Schedule of notes payable and capital lease obligations

	March 31,			December 31,
	2019			2018
	(unaudited)
Revolving credit note payable to PNC Bank N.A. (“PNC”)	$	14,062,000		$	14,043,000
Term loan, PNC		1,202,000			1,572,000
Finance lease obligations		1,503,000			1,786,000
Related party notes payable, net of debt discount		4,982,000			4,835,000
Convertible notes payable-third parties, net of debt discount		2,892,000			2,830,000
Subtotal		24,641,000			25,066,000
Less: Current portion of notes payable, related party notes payable and finance lease obligations		(21,893,000	)		(19,345,000	)
Notes payable, related party notes payable and finance lease obligations, net of current portion	$	2,748,000		$	5,721,000

Schedule of future minimum lease payments, including imputed interest

For the twelve months ending	Amount
December 31, 2019 (remainder of the year)	$	943,000
December 31, 2020		542,000
December 31, 2021		52,000
December 31, 2022		29,000
December 31, 2023		—
Thereafter		—
Present value of finance lease obligations		1,566,000
Less: imputed interest		(63,000	)
Less: current portion		(1,185,000	)
Total Long Term Portion	$	318,000

Date	Gross Proceeds		Promissory Note		$		Common Stock Price		Shares Issued
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

Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of activity within the liability account

Liabilities related to sale of future proceeds from disposition of subsidiaries – beginning balance	$	—
Cash received from sale of future proceeds from disposition of subsidiary		800,000
Non-Cash other income recognized		(109,000	)
Non-Cash interest expense recognized		33,000
Liabilities related to sale of future proceeds from disposition of subsidiary – ending balance		724,000
Less: unamortized transaction costs		(3,000	)
Liability related to sale of future proceeds from disposition of subsidiary, net	$	721,000

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of stockholders' equity

	Total		Shares				Warrants
Date	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)

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of provision for (benefit from) income taxes

	2019			2018
	(unaudited)			(unaudited)
Current
Federal	$	—		$	—
State		—			—
Prior Year Under accrual
Federal		—			—
State		—			—

Total Current Expense		—			—
Deferred Tax Benefit		(340,000	)		(407,000	)
Valuation Allowance		340,000			407,000
Net Provision for (Benefit from) Income Taxes	$	—		$	—

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Schedule of operating segments

	Three Months Ended March 31,
	2019			2018
	(unaudited)			(unaudited)
COMPLEX MACHINING
Net Sales	$	12,418,000		$	10,627,000
Gross Profit		2,213,000			2,023,000
Pre Tax Income from continuing operations		1,443,000			116,000
Assets		45,554,000			45,014,000

TURBINE ENGINE COMPONENTS
Net Sales		1,460,000			1,282,000
Gross Profit (Loss)		61,000			(48,000	)
Pre Tax Loss from continuing operations		(170,000	)		(457,000	)
Assets		5,235,000			6,009,000

CORPORATE
Net Sales		—			—
Gross Profit		—			—
Pre Tax Loss from continuing operations		(2,268,000	)		(918,000	)
Assets		507,000			1,171,000

CONSOLIDATED
Net Sales		13,878,000			11,909,000
Gross Profit		2,274,000			1,975,000
Pre Tax Loss from continuing operations		(995,000	)		(1,259,000	)
Provision for (Benefit from) Income Taxes		—			—
Income (Loss) from Discontinued Operations, net of income tax		72,000			(209,000	)
Assets Held for Sale		—			10,412,000
Net Loss		(923,000	)		(1,468,000	)
Assets	$	51,296,000		$	62,606,000

Formation and Basis of Presentation (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Operating Lease Right-Of-Use-Asset
Total Assets	$ 51,296,000	47,756,000
Operating Leases Liabilities – Current Portion	624,000
Total Current Liabilities	32,204,000	29,007,000
Operating Leases Liabilities – Net of Current Portion	4,772,000
Deferred Rent		1,165,000
Total Liabilities	40,492,000	36,150,000
Total Liabilities and Stockholders’ Equity	$ 51,296,000	47,756,000
Balance January 1, 2019 [Member]
Operating Lease Right-Of-Use-Asset		4,368,000
Total Assets		52,124,000
Operating Leases Liabilities – Current Portion		547,000
Total Current Liabilities		34,554,000
Operating Leases Liabilities – Net of Current Portion		4,986,000
Deferred Rent
Total Liabilities		40,518,000
Total Liabilities and Stockholders’ Equity		52,124,000
Adoption of ASC 842 Increase (Decrease) [Member]
Operating Lease Right-Of-Use-Asset		4,368,000
Total Assets		4,368,000
Operating Leases Liabilities – Current Portion		547,000
Total Current Liabilities		547,000
Operating Leases Liabilities – Net of Current Portion		4,986,000
Deferred Rent		(1,165,000)
Total Liabilities		4,368,000
Total Liabilities and Stockholders’ Equity		$ 4,368,000

Formation and Basis of Presentation (Details 1)	Mar. 31, 2019
Formation And Basis Of Presentation
Weighted Average Remaining Lease Term – in years	6 years 11 months 19 days
Weighted Average discount rate - %	9.50%

Formation and Basis of Presentation (Details 2) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
For the twelve months ended December 31,
December 31, 2019 (remaining nine months)	$ 829,000
December 31, 2020	1,136,000
December 31, 2021	1,118,000
December 31, 2022	868,000
December 31, 2022	895,000
Thereafter	2,604,000
Total future minimum lease payments	7,450,000
Less: discount	(2,054,000)
Total operating lease maturities	5,396,000
Less: current portion of operating lease liabilities	(624,000)
Total long term portion of operating lease maturities	$ 4,772,000

Formation and Basis of Presentation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 20, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Formation and Basis of Presentation (Textual)
Net (losses)		$ (923,000)	$ (1,468,000)
Purchase price	$ 9,000,000
Net of a working capital adjustment	(1,093,000)
Escrow deposit	$ 2,000,000
Operating lease, description		As part of the effort to reduce costs, certain corporate executive offices were moved to an existing 5.4 acre corporate campus in Bay Shore, New York. The Company remains liable under the lease for the office in Hauppauge, New York which is now vacant. This lease has a term which ends January 2022. The annual rent was approximately $113,000 for the lease year which began in January 2019 and increases by approximately 3% per annum each year thereafter. Accordingly, the Company recognized an impairment of $275,000 to its Operating Lease Right-of-Use-Asset.
EPC [Member]
Formation and Basis of Presentation (Textual)
Net (losses)				$ (10,992,000)
Loss on abandoned assets				386,000
ECC [Member]
Formation and Basis of Presentation (Textual)
Goodwill				$ 109,000

Discontinued Operations (Details) - USD ($)	3 Months Ended
Discontinued Operations (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Net revenue	$ 132,000	$ 2,876,000
Cost of sales	105,000	2,456,000
Gross profit	27,000	420,000
Operating expenses:
Selling, general and administrative	96,000	627,000
Loss on assets held for sale	41,000
Total Operating expenses	(28,000)	(207,000)
Interest income (expense) and financing costs	(1,000)	(1,000)
Other income	101,000	(1,000)
Gain (loss)	72,000	(207,000)
Provision for income taxes		(2,000)
Income (loss) from discontinued operations, net of income tax	$ 72,000	$ (209,000)

Discontinued Operations (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
Discontinued Operations (Details Textual) - USD ($)	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Discontinued Operations (Textual)
Non-cash operating amounts for discontinued operations depreciation	$ 6,000	$ 49,000
Amortization		$ 38,000
EPC [Member]
Discontinued Operations (Textual)
Loss on abandoned assets			$ 386,000
ECC [Member]
Discontinued Operations (Textual)
Goodwill			$ 109,000

Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Raw Materials	$ 4,445,000	$ 4,622,000
Work In Progress	18,290,000	17,530,000
Finished Goods	10,095,000	10,915,000
Inventory Reserve	(4,143,000)	(4,016,000)
Total Inventory	$ 28,687,000	$ 29,051,000

Summary of Significant Accounting Policies (Details 1)	3 Months Ended
Summary of Significant Accounting Policies (Details 1)	Mar. 31, 2019	Mar. 31, 2018
Sales [Member]
Percentage of Sales	73.80%	73.10%
Sales [Member] \| Customer 1 [Member]
Percentage of Sales	31.40%	34.50%
Sales [Member] \| Customer 2 [Member]
Percentage of Sales	28.80%	28.60%
Sales [Member] \| Customer 3 [Member]
Percentage of Sales	13.60%	10.00%
Receivables [Member]
Percentage of Sales	57.00%	64.50%
Receivables [Member] \| Customer 1 [Member]
Percentage of Sales	35.50%	38.30%
Receivables [Member] \| Customer 2 [Member]
Percentage of Sales	21.50%	26.20%

Summary of Significant Accounting Policies (Details 2) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Weighted average shares outstanding used to compute basic earnings per share	28,601,390	26,116,262
Effect of dilutive stock options and warrants
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share	28,601,390	26,116,262

Summary of Significant Accounting Policies (Details 3) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Average market price of common shares	3,101,000	1,834,000
Average market price of common shares including potential shares was anti-dilutive	500,000	1,175,000
Warrants [Member]
Average market price of common shares	2,240,000	1,480,000
Average market price of common shares including potential shares was anti-dilutive		480,000
Stock Options [Member]
Average market price of common shares	861,000	354,000
Average market price of common shares including potential shares was anti-dilutive	500,000	695,000
Convertible Preferred Stock [Member]
Average market price of common shares including potential shares was anti-dilutive

Summary of Significant Accounting Policies (Details Textual)	3 Months Ended
	Mar. 31, 2019 USD ($) Customer / Customers	Mar. 31, 2018 USD ($) Customer / Customers	Dec. 31, 2018 USD ($)
Summary of Significant Accounting Policies (Textual)
Stock-based compensation	$ 272,000	$ 83,000
Goodwill	163,000		$ 163,000
NTW
Summary of Significant Accounting Policies (Textual)
Goodwill	$ 163,000		$ 163,000
Sales [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers \| Customer / Customers	3	3
Concentration risks	73.80%	73.10%
Receivables [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers \| Customer / Customers	2	2
Concentration risks	57.00%	64.50%

Property and Equipment (Details) - USD ($)	3 Months Ended
Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total Property and Equipment	$ 31,451,000	$ 31,389,000
Less: Accumulated Depreciation	23,225,000	(22,612,000)
Property and Equipment, net	8,226,000	8,777,000
Land [Member]
Total Property and Equipment	300,000	300,000
Buildings and Improvements [Member]
Total Property and Equipment	$ 1,708,000	1,708,000
Property and Equipment, Useful Life	31 years 6 months
Machinery and Equipment [Member]
Total Property and Equipment	$ 11,538,000	11,579,000
Machinery and Equipment [Member] \| Minimum
Property and Equipment, Useful Life	5 years
Machinery and Equipment [Member] \| Maximum [Member]
Property and Equipment, Useful Life	8 years
Capital Lease Machinery and Equipment [Member]
Total Property and Equipment	$ 6,495,000	6,495,000
Capital Lease Machinery and Equipment [Member] \| Minimum
Property and Equipment, Useful Life	5 years
Capital Lease Machinery and Equipment [Member] \| Maximum [Member]
Property and Equipment, Useful Life	8 years
Tools and Instruments [Member]
Total Property and Equipment	$ 10,010,000	9,882,000
Tools and Instruments [Member] \| Minimum
Property and Equipment, Useful Life	1 year 6 months
Tools and Instruments [Member] \| Maximum [Member]
Property and Equipment, Useful Life	7 years
Automotive Equipment [Member]
Total Property and Equipment	$ 177,000	172,000
Property and Equipment, Useful Life	5 years
Furniture and Fixtures [Member]
Total Property and Equipment	$ 290,000	303,000
Furniture and Fixtures [Member] \| Minimum
Property and Equipment, Useful Life	5 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property and Equipment, Useful Life	8 years
Leasehold Improvements [Member]
Total Property and Equipment	$ 508,000	520,000
Property and Equipment, Useful Life, description	Term of Lease
Computers and Software [Member]
Total Property and Equipment	$ 425,000	$ 425,000
Computers and Software [Member] \| Minimum
Property and Equipment, Useful Life	4 years
Computers and Software [Member] \| Maximum [Member]
Property and Equipment, Useful Life	6 years

Property and Equipment (Details Textual) - USD ($)	3 Months Ended
Property and Equipment (Details Textual) - USD ($)	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Property and Equipment (Textual)
Depreciation expense	$ 666,000	$ 722,000
Accumulated depreciation	$ 5,183,000		$ 4,827,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Notes and Loans Payable [Abstract]
Term loan, PNC	$ 1,202,000	$ 1,572,000
Finance lease obligations	1,503,000	1,786,000
Convertible notes payable-third parties, net of debt discount	2,892,000	2,830,000
Subtotal	24,641,000	25,066,000
Less: Current portion of notes payable, related party notes payable and finance lease obligations	(21,893,000)	(19,345,000)
Notes payable, related party notes payable and finance lease obligations, net of current portion	$ 2,748,000	$ 5,721,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details 1)	Mar. 31, 2019 USD ($)
For the twelve months ending
December 31, 2019 (remainder of the year)	$ 943,000
December 31, 2020	542,000
December 31, 2021	52,000
December 31, 2022	29,000
December 31, 2023
Thereafter
Present value of finance lease obligations	1,566,000
Less: imputed interest	(63,000)
Less: current portion	(1,185,000)
Total Long Term Portion	$ 318,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Gross Proceeds	$ 1,200,000
Promissory Note	840,000
Related party advances and notes payable		$ 980,000
4/4/2018 [Member]
Gross Proceeds	100,000
Promissory Note	70,000
Related party advances and notes payable	$ 30,000
Common Stock Price	$ 1.68
Shares issued	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	$ 1.64
Shares issued	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	$ 1.68
Shares issued	178,571

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Apr. 04, 2018	Mar. 29, 2018
Notes Payable and Capital Lease Obligations (Textual)
Interest expense related to credit facilities		$ 130,000	$ 63,000
Issuance of common stock			980,000
Notes payable percentage		18.00%
Financing lease obligations		$ 1,503,000		$ 1,786,000
Robert and Michael Taglich [Member] \| Subordinated Convertible Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Loan facility, description		The Company issued its 7% senior subordinated convertible promissory notes due December 31, 2020, each in the principal amount of $1,000,000 (together, the “7% Notes”, to Michael Taglich and Robert Taglich, each for a purchase price of $1,000,000. The 7% Notes bear interest at the rate of 7% per annum, are convertible into shares of the Company’s common stock at a conversion price of $0.93 per share, subject to the anti-dilution adjustments set forth in the 7% Notes, are subordinate to the Company’s indebtedness under its credit facility with PNC Bank, National Association, and mature at December 31, 2020, or earlier upon an Event of Default (as defined in the 7% Notes).
Taglich Brothers, Inc., [Member]
Notes Payable and Capital Lease Obligations (Textual)
Fee amount		$ 80,000
Related party notes payable allocated percentage, description		4% of the purchase price of the 7% Notes
Michael Taglich [Member]
Notes Payable and Capital Lease Obligations (Textual)
Advanced from related parties						$ 1,000,000
Related party advances and notes payable, net of debt discounts		$ 4,982,000
Robert [Member]
Notes Payable and Capital Lease Obligations (Textual)
Advanced from related parties					$ 100,000
Related party advances and notes payable, net of debt discounts				4,835,000
PNC Bank [Member]
Notes Payable and Capital Lease Obligations (Textual)
Initial principal amount		15,264,000		15,615,000
Term loan		1,202,000		14,043,000
Revolving loan		$ 14,062,000		$ 1,572,000
Loan facility, description		The Loan Facility provides for a $15,000,000 revolving loan and a term loan with a balance of $1,202,000 at March 31, 2019 (the “Term Loan”). The repayment terms of the Term Loan provide for monthly principal installments in the amount of $123,133, payable on the first business day of each month, with a final payment of any unpaid balance of principal and interest payable on the scheduled maturity date.
Interest expense		$ 512,000	$ 342,000
PNC Bank [Member] \| Loan Agreement [Member]
Notes Payable and Capital Lease Obligations (Textual)
Loan facility, description		The Company is obligated to pay PNC an extension fee of (i) $250,000 on the earlier of (a) the date the Obligations are indefeasibly paid in full or (b) June 30, 2019, (ii) $125,000 on the earlier of (a) the date the Obligations are indefeasibly paid in full or (b) December 31, 2019, which amount is deemed earned in full if the Obligations have not been satisfied as of July 1, 2019, (iii) $125,000 on the earlier of (a) the date the Obligations are indefeasibly paid in full or (b) December 31, 2019, which amount is deemed earned in full if the Obligations have not been satisfied as of October 1, 2019 (iv) $500,000 on December 31, 2019, which amount is deemed earned in full if the Obligations have not been satisfied as of December 31, 2019. As a further condition to PNC’s agreement to extend the maturity of the Obligations, Michael and Robert Taglich purchased $2,000,000 principal amount of the Company’s Senior Subordinated Convertible Notes and arranged a financing giving purchasers a right to receive a pro rata portion of the AMK Revenue Stream Payments resulting in gross proceeds of $800,000, including $275,000 from Michael and Robert Taglich.
PNC Bank [Member] \| Sixteenth Amendment [Member]
Notes Payable and Capital Lease Obligations (Textual)
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. 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 making capital expenditures above prescribed amounts.
PNC Bank [Member] \| Seventeenth Amendment [Member]
Notes Payable and Capital Lease Obligations (Textual)
Coverage ratio, description		Under the terms of the Seventeenth Amendment, the revolving loan and the Term Loan bear interest at a rate equal to the sum of the Alternate Base Rate (as defined in the Loan Agreement) plus four percent (4%). In addition to the amounts available as revolving loans secured by inventory and receivables pursuant to the formula set forth in the Loan Agreement, PNC has agreed to permit the revolving advances to exceed the formula amount by $1,000,000 as of December 31, 2018, provided that the Company reduce the “Out-of-Formula Loan” by $25,000 per week commencing April 1, 2019, with the unpaid balance payable in full on December 31, 2019. The indebtedness under the revolving loan and the Term Loan are classified with the current portion of notes and financing lease obligations.
PNC Bank [Member] \| Eighteenth Amendment [Member]
Notes Payable and Capital Lease Obligations (Textual)
Loan facility, description		(i) $1,500,000 for the twelve-month period ending December 31, 2018, (ii) $655,000 for the three-month period ending March 31, 2019, (iii) $1,860,000 for the six-month period ending June 30, 2019 and (iv) $3,110,000 for the nine-month period ending September 30, 2019. At March 31, 2019 and December 31, 2018 the Company was in compliance with the minimum EBITDA covenant.
Two Thousand Nineteen [Member]
Notes Payable and Capital Lease Obligations (Textual)
Interest-bearing, description	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.
Aggregate principal amount	$ 1,200,000
Subordinated Notes Maturity Date	May 31, 2019
Issuance of common stock	$ 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. 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.
Accrued interest on notes payable	1.25%
Placement agent fee	4.00%
Two Thousand Nineteen [Member] \| Michael Taglich [Member]
Notes Payable and Capital Lease Obligations (Textual)
Issuance of common stock	$ 17,857
Total purchase price	1,000,000
Two Thousand Nineteen [Member] \| Robert [Member]
Notes Payable and Capital Lease Obligations (Textual)
Issuance of common stock	178,571
Total purchase price	$ 1,000,000
Minimum
Notes Payable and Capital Lease Obligations (Textual)
Finance lease obligations interest rates		4.00%
Maximum [Member]
Notes Payable and Capital Lease Obligations (Textual)
Finance lease obligations interest rates		14.00%

Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Liability Related To Sale Of Future Proceeds From Disposition Of Subsidiary Details Abstract
Liabilities related to sale of future proceeds from disposition of subsidiaries – beginning balance
Cash received from sale of future proceeds from disposition of subsidiary	800,000
Non-Cash other income recognized	(109,000)
Non-Cash interest expense recognized	33,000
Liabilities related to sale of future proceeds from disposition of subsidiary – ending balance	724,000
Less: unamortized transaction costs	(3,000)
Liability related to sale of future proceeds from disposition of subsidiary, net	$ 721,000

Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details Textual) - USD ($)		3 Months Ended		12 Months Ended
	Jan. 15, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Textual)
Sale of subsidiary, description		AMK Welding, Inc. ("AMK") to Meyer Tool, Inc., ("Meyer") in 2017, Meyer was obligated to pay the Company within 30 days after the end of each calendar quarter, commencing April 1, 2017, an amount equal to five (5%) percent of the net sales of AMK for that quarter until the aggregate payments made to the Company (the "Meyer Agreement") equals$1,500,000 (the "Maximum Amount").
Aggregate of amount received				$ 363,000
Purchase agreement, description	The Company entered into a ?Purchase Agreement? with 15 accredited investors (the ?Purchasers?), including Michael and Robert Taglich, pursuant to which the Company assigned to the Purchasers all of their rights, title and interest to the remaining $1,137,000 of the $1,500,000 in payments due from Meyer for the sale of AMK (the ?Remaining Amount?) for an immediate payment of $800,000, including $100,000 from each of Michael and Robert Taglich, and $75,000 for the benefit of the children of Michael Taglich. The timing of the payments is based upon the net sales of AMK. If the Purchasers have not received the entire Remaining Amount by March 31, 2023, they have the right to demand payment of their pro rata portion of the unpaid Remaining Amount from the Company (?Put Right?).
Purchase price per annum		2.00%
Proceeds as liability amount		$ 800,000
Net of transaction costs		$ (3,000)
Annual interest rate percentage		18.00%
Non-cash other income recognized		$ (109,000)
Non-cash interest expense recognized		$ 33,000

Stockholders' Equity (Details)	3 Months Ended
Stockholders' Equity (Details)	Mar. 31, 2019 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
2017
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	3 Months Ended
Stockholders' Equity (Details Textual)	Jan. 09, 2018 USD ($) Investors / Number $ / shares shares	Dec. 29, 2017 USD ($) shares	Dec. 05, 2017 USD ($) shares	Nov. 29, 2017 USD ($) shares	May 31, 2018 USD ($)	Mar. 31, 2019 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) shares	Dec. 31, 2018 USD ($)
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			$ 1,065,000
Warrants exercise price, per share \| $ / shares						$ 1.50
Warrants exercisable date						Nov. 30, 2022
Common stock issued in lieu of cash payment \| shares						147,830	123,456
Common stock issued							$ 980,000
Placement Agency Agreement [Member]
Stockholders' Equity (Textual)
Common stock shares offered \| shares	852,000			1,600,000		0	85,200
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
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.
Michael Taglich [Member]
Stockholders' Equity (Textual)
Related party advances and notes payable, net of debt discounts						$ 4,982,000
Robert [Member]
Stockholders' Equity (Textual)
Related party advances and notes payable, net of debt discounts								$ 4,835,000
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
Two Thousand Nineteen [Member] \| Michael Taglich [Member]
Stockholders' Equity (Textual)
Common stock issued					17,857
Total purchase price					1,000,000
Two Thousand Nineteen [Member] \| Robert [Member]
Stockholders' Equity (Textual)
Common stock issued					178,571
Total purchase price					$ 1,000,000

Commitments and Contingencies (Details) - USD ($)			1 Months Ended
Commitments and Contingencies (Details) - USD ($)	Oct. 15, 2018	Jan. 11, 2017	Oct. 31, 2018
Commitments and Contingencies (Textual)
Past rent arrears received		$ 31,000
Pharmacal seeks damages for amount in excess			$ 1,000,000
Validity of shares issued in excess	$ 25,000,000

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Current
Federal
State
Prior Year Under accrual
Federal
State
Total Current Expense
Deferred Tax Benefit	(340,000)	(407,000)
Valuation Allowance	340,000	407,000
Net Provision for (Benefit from) Income Taxes

Income Taxes (Details Textual) - USD ($)	3 Months Ended
Income Taxes (Details Textual) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Income Taxes (Textual)
Federal income tax benefit	$ 340,000	$ 407,000

Segment Reporting (Details) - USD ($)	3 Months Ended
Segment Reporting (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Net Sales	$ 13,878,000	$ 11,909,000
Gross Profit (Loss)	2,274,000	1,975,000
Pre Tax Loss from continuing operations	(995,000)	(1,259,000)
Provision for (Benefit from) Income Taxes
Net Loss	(923,000)	(1,468,000)
Assets	51,296,000		$ 47,756,000
COMPLEX MACHINING
Net Sales	12,418,000	10,627,000
Gross Profit (Loss)	2,213,000	2,023,000
Pre Tax Loss from continuing operations	1,443,000	116,000
Assets	45,554,000	45,014,000
TURBINE ENGINE COMPONENTS
Net Sales	1,460,000	1,282,000
Gross Profit (Loss)	61,000	(48,000)
Pre Tax Loss from continuing operations	(170,000)	(457,000)
Assets	5,235,000	6,009,000
CORPORATE
Net Sales
Gross Profit (Loss)
Pre Tax Loss from continuing operations	(2,268,000)	(918,000)
Assets	507,000	1,171,000
CONSOLIDATED
Net Sales	13,878,000
Gross Profit (Loss)	2,274,000
Pre Tax Loss from continuing operations	(995,000)
Provision for (Benefit from) Income Taxes
Income (Loss) from Discontinued Operations, net of income tax	72,000
Assets Held for Sale
Net Loss	(923,000)
Assets	$ 51,296,000
CONSOLIDATED
Net Sales		11,909,000
Gross Profit (Loss)		1,975,000
Pre Tax Loss from continuing operations		(1,259,000)
Provision for (Benefit from) Income Taxes
Income (Loss) from Discontinued Operations, net of income tax		(209,000)
Assets Held for Sale		10,412,000
Net Loss		(1,468,000)
Assets		$ 62,606,000

Segment Reporting (Details Textual)	3 Months Ended
Segment Reporting (Details Textual)	Mar. 31, 2019 Segments
Segment Reporting (Textual)
Number of reportable segments	2

Label	Element	Value
Convertible Preferred Stock [Member]
Preferred stock, par value	us-gaap_PreferredStockParOrStatedValuePerShare	$ 0.001
Preferred stock, par value	us-gaap_PreferredStockParOrStatedValuePerShare	$ 0.001
Preferred stock, shares authorized	us-gaap_PreferredStockSharesAuthorized	0
Preferred stock, shares authorized	us-gaap_PreferredStockSharesAuthorized	0
Preferred stock, shares outstanding	us-gaap_PreferredStockSharesOutstanding	0
Preferred stock, shares outstanding	us-gaap_PreferredStockSharesOutstanding	0