0001213900-20-035943 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 04, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	AIR INDUSTRIES GROUP
Entity Central Index Key	0001009891
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,729,755
Entity File Number	001-35927
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	NV

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current Assets
Cash and Cash Equivalents	$ 1,460,000	$ 1,294,000
Accounts Receivable, Net of Allowance for Doubtful Accounts of $1,226,000 and $859,000	9,748,000	7,858,000
Inventory	32,840,000	28,646,000
Prepaid Expenses and Other Current Assets	394,000	447,000
Prepaid Taxes	6,000
Total Current Assets	44,448,000	38,245,000
Property and Equipment, Net	8,907,000	7,578,000
Operating Lease Right-Of-Use-Asset	3,625,000	3,623,000
Deferred Financing Costs, Net, Deposits and Other Assets	1,621,000	1,481,000
Goodwill	163,000	163,000
TOTAL ASSETS	58,764,000	51,090,000
Current Liabilities
Notes Payable and Finance Lease Obligations	22,234,000	15,682,000
Related Party Notes Payable		6,862,000
Accounts Payable and Accrued Expenses	11,362,000	8,105,000
Operating Lease Liabilities	694,000	697,000
Deferred Gain on Sale	38,000	38,000
Deferred Revenue	835,000	1,011,000
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary	200,000	200,000
Income Taxes Payable		27,000
Total Current Liabilities	35,363,000	32,622,000
Long Term Liabilities
Notes Payable and Finance Lease Obligations	1,121,000	3,406,000
Related Party Notes Payable	6,018,000
Operating Lease Liabilities	4,100,000	4,235,000
Deferred Gain on Sale	190,000	219,000
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary	191,000	402,000
Deferred payroll tax liability - CARES Act	429,000
TOTAL LIABILITIES	47,412,000	40,884,000
Commitments and Contingencies
Stockholders’ Equity
Preferred Stock, par value $.001 - Authorized 3,000,000 shares, 0 shares outstanding, at both September 30, 2020 and December 31, 2019.
Common Stock - Par Value $.001 - Authorized 60,000,000 Shares, 30,620,990 and 29,478,338 Shares Issued and Outstanding as of September 30, 2020 and December 31, 2019, respectively	30,000	29,000
Additional Paid-In Capital	79,582,000	77,434,000
Accumulated Deficit	(68,260,000)	(67,257,000)
TOTAL STOCKHOLDERS’ EQUITY	11,352,000	10,206,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 58,764,000	$ 51,090,000

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,226,000	$ 859,000
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	60,000,000	60,000,000
Common stock, shares issued	30,620,990	29,478,338
Common stock, shares outstanding	30,620,990	29,478,338

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net Sales	$ 13,662,000	$ 13,997,000	$ 35,603,000	$ 41,243,000
Cost of Sales	12,006,000	11,034,000	31,152,000	33,815,000
Gross Profit	1,656,000	2,963,000	4,451,000	7,428,000
Operating Expenses	1,896,000	1,808,000	6,064,000	5,842,000
Loss on abandonment of Leases				(275,000)
Income/(Loss) from Operations	(240,000)	1,155,000	(1,613,000)	1,311,000
Interest Expense - Third Parties	(234,000)	(570,000)	(789,000)	(2,050,000)
Interest Expense - Related Parties	(125,000)	(265,000)	(378,000)	(740,000)
Other Income, Net	122,000	100,000	363,000	169,000
Income (Loss) before Provision for (Benefit from) Income Taxes	(477,000)	420,000	(2,417,000)	(1,310,000)
Provision for (Benefit from) Income Taxes		22,000	(1,414,000)	22,000
Income (Loss) from Continuing Operations	(477,000)	398,000	(1,003,000)	(1,332,000)
Loss from Discontinued Operations, net of tax		(211,000)		(139,000)
Net Income (Loss)	$ (477,000)	$ 187,000	$ (1,003,000)	$ (1,471,000)
Net Income (Loss) per share - Basic
Continuing Operations	$ (0.02)	$ 0.01	$ (0.03)	$ (0.05)
Discontinued Operations		(0.01)
Net Income (Loss) per share - Diluted
Continuing Operations	(0.02)	0.01	(0.03)	(0.05)
Discontinued Operations		$ (0.01)
Weighted Average Shares Outstanding - Basic - continuing operations	30,620,990	28,909,072	30,524,874	28,774,041
Weighted Average Shares Outstanding - Diluted - continuing operations	30,620,990	35,046,015	30,524,874	28,774,041
Weighted Average Shares Outstanding - Basic and Diluted - discontinued operations	30,620,990	28,909,072	30,524,874	28,774,041

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
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
Costs related to issuance of stock		(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 Income (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
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
Balance at Sep. 30, 2019	$ 28,000	76,527,000	(65,994,000)	10,561,000
Balance, shares at Sep. 30, 2019	28,951,194
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
Issuance of Common Stock	$ 1,000	186,000		187,000
Issuance of Common Stock, shares	180,000
Stock Compensation Expense		93,000		93,000
Other Adjustments - Shares Issued
Other Adjustments - Shares Issued, shares	25,401
Share Issuance Costs		(55,000)		(55,000)
Net Income (Loss)			(735,000)	(735,000)
Balance at Jun. 30, 2019	$ 29,000	76,446,000	(66,181,000)	10,294,000
Balance, shares at Jun. 30, 2019	28,890,983
Common stock issued for directors’ fees		56,000		56,000
Common stock issued for directors’ fees, shares	57,433
Issuance of Common Stock
Issuance of Common Stock, shares	2,778
Stock Compensation Expense		25,000		25,000
Other Adjustments - Rounding	(1,000)			(1,000)
Net Income (Loss)			187,000	187,000
Balance at Sep. 30, 2019	$ 28,000	76,527,000	(65,994,000)	10,561,000
Balance, shares at Sep. 30, 2019	28,951,194
Balance at Dec. 31, 2019	$ 29,000	77,434,000	(67,257,000)	10,206,000
Balance, shares at Dec. 31, 2019	29,478,338
Common stock issued for directors’ fees		55,000		55,000
Common stock issued for directors’ fees, shares	43,771
Costs related to issuance of stock		(145,000)		(145,000)
Issuance of Common Stock	$ 1,000	983,000		984,000
Issuance of Common Stock, shares	419,597
Common Stock Issued for Convertible Notes		885,000		885,000
Common Stock Issued for Convertible Notes, shares	590,243
Stock Compensation Expense		140,000		140,000
Net Income (Loss)			1,058,000	1,058,000
Balance at Mar. 31, 2020	$ 30,000	79,352,000	(66,199,000)	13,183,000
Balance, shares at Mar. 31, 2020	30,531,949
Balance at Dec. 31, 2019	$ 29,000	77,434,000	(67,257,000)	10,206,000
Balance, shares at Dec. 31, 2019	29,478,338
Balance at Sep. 30, 2020	$ 30,000	79,582,000	(68,260,000)	11,352,000
Balance, shares at Sep. 30, 2020	30,620,990
Balance at Mar. 31, 2020	$ 30,000	79,352,000	(66,199,000)	13,183,000
Balance, shares at Mar. 31, 2020	30,531,949
Common stock issued for directors’ fees		46,000		46,000
Common stock issued for directors’ fees, shares	47,126
Stock Compensation Expense		74,000		74,000
Net Income (Loss)			(1,584,000)	(1,584,000)
Balance at Jun. 30, 2020	$ 30,000	79,472,000	(67,783,000)	11,719,000
Balance, shares at Jun. 30, 2020	30,579,075
Common stock issued for directors’ fees		58,000		58,000
Common stock issued for directors’ fees, shares	41,915
Stock Compensation Expense		52,000		52,000
Net Income (Loss)			(477,000)	(477,000)
Balance at Sep. 30, 2020	$ 30,000	$ 79,582,000	$ (68,260,000)	$ 11,352,000
Balance, shares at Sep. 30, 2020	30,620,990

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,003,000)	$ (1,471,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation of property and equipment	1,920,000	2,085,000
Non-cash employee compensation expense	266,000	351,000
Non-cash directors compensation	159,000	95,000
Non-cash other income recognized	(302,000)	(198,000)
Non-cash interest expense	90,000	60,000
Non-cash deferred payroll tax expense - CARES Act	429,000
Abandonment of lease		275,000
Amortization of Right-of-Use Asset	366,000	352,000
Deferred gain on sale of real estate	(29,000)	(29,000)
Loss on sale of equipment	16,000	42,000
Amortization of debt discount on convertible notes payable	196,000	370,000
Bad debt expense	367,000	46,000
Amortization of deferred financing costs	73,000
(Increase) Decrease in Operating Assets:
Accounts receivable	(2,257,000)	49,000
Inventory	(4,194,000)	(1,301,000)
Prepaid expenses and other current assets	53,000	(154,000)
Prepaid taxes	(6,000)	43,000
Deposits and other assets	(213,000)	(261,000)
Increase (Decrease) in Operating Liabilities:
Accounts payable and accrued expenses	1,594,000	343,000
Operating lease liabilities	(506,000)	(441,000)
Income taxes payable	(27,000)
Deferred revenue	(176,000)	14,000
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(3,184,000)	270,000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(1,471,000)	(397,000)
NET CASH USED IN INVESTING ACTIVITIES	(1,471,000)	(397,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Note payable - revolver - net - Sterling National Bank	3,340,000
Note payable - revolver - net - PNC		(597,000)
Payments of note payable - term notes - Sterling National Bank	(414,000)
Payments of note payable - term notes - PNC		(1,108,000)
SBA Loan Proceeds - SNB	2,414,000
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	(11,000)	(899,000)
Share issuance costs		(113,000)
Proceeds from notes payable issuances- related party		500,000
Proceeds from issuance of common stock	984,000
Costs related to issuance of stock	(145,000)
Payments of related party notes payable	(1,032,000)	(16,000)
Payments of notes payable - third party	(100,000)
Payments of loan payable - financed assets	(215,000)	(116,000)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	4,821,000	(1,552,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	166,000	(1,679,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,294,000	2,012,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,460,000	333,000
Supplemental cash flow information
Cash paid for interest	680,000	1,260,000
Supplemental disclosure of non-cash transactions
Right of Use Asset additions under ASC 842	642,000	4,368,000
Operating Lease Liabilities under ASC 842	642,000	5,397,000
Write-off deferred rent under ASC 842		1,165,000
Acquisition of financed asset	52,000
Acquisition of property and equipment	1,504,000
Supplemental disclosure of non-cash investing and financing activities
Common stock issued in lieu of cash for services		187,000
Common Stock issued for conversion of note payable and accrued interest	$ 885,000

Formation and Basis of Presentation

9 Months Ended

Sep. 30, 2020

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 and nine months ended September 30, 2020 and 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"), and the Sterling Engineering Corporation ("Sterling"), (together, the "Company"). The results of Eur-Pac Corporation ("EPC") and Electronic Connection Corporation ("ECC") are included in discontinued operations since operations ceased on March 31, 2019. See Note 2 for details of discontinued operations.

Principal Business Activities

The Company 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 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.

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 and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019, as filed with the Securities and Exchange Commission, from which the accompanying condensed consolidated balance sheet dated December 31, 2019 was derived.

Reclassifications

Certain account balances in 2019 have been reclassified to conform to the current period presentation.

Impact of Covid-19

On March 11, 2020, the World Health Organization announced that infections caused by the coronavirus disease of 2019 ("COVID-19") had become pandemic, and on March 13, 2020, the U.S. President announced a national emergency relating to the disease. National, state and local authorities have adopted various regulations and orders, including mandates on the number of people that may gather in one location and closing non-essential businesses. To date, the Company has been deemed an essential business and has not curtailed its operations.

The measures adopted by various governments and agencies, as well as the decision by many individuals and businesses to voluntarily shut down or self-quarantine, have and are expected to continue to have serious adverse impacts on domestic and foreign economies of uncertain severity and duration. The effectiveness of economic stabilization efforts adopted by governments is uncertain. The likely overall economic impact of the COVID-19 pandemic will be highly negative to the general economy and has been particularly negative on the commercial travel industry and commercial aerospace industries.

In accordance with the Department of Defense guidance issued in March 2020 designating the Defense Industrial Base as a critical infrastructure workforce, the Company's facilities have continued to operate in support of essential products and services required to meet national security commitments to the U.S. government and the U.S. military, however, facility closures or work slowdowns or temporary stoppages could occur. Although the Company's facilities are open, it was unable to operate at full capacity or achieve high levels of productivity particularly in the second calendar quarter of fiscal 2020 due to the implementation of enhanced safety procedures, increased employee absenteeism and intermittent closings of other businesses that supply goods or services to the Company. These impediments began to dissipate in the third calendar quarter. By September 2020 operating conditions were close to normal; however, business and operating conditions remain volatile.

Beginning in April 2020, the COVID–19 crisis resulted in a reduction to 2020 revenue and operating margins in portions of its business. This negative effect continued in May 2020 and to a lesser extent in June 2020. The decrease in revenue resulted from employee absenteeism, supplier disruption, changes in employee productivity, and related program delays or challenges. The Company and its employees, suppliers, customers and its global community continue to face tremendous challenges. While these challenges lessened in the third calendar quarter, the Company cannot predict how this dynamic situation will evolve or the impact it will have on the Company's results of operations.

The Company has implemented procedures to promote employee safety including more frequent and enhanced cleaning and adjusted schedules and work flows to support physical distancing. These actions have resulted in increased operating costs. In addition, a number of the Company's suppliers and customers have intermittently suspended or otherwise reduced their operations, and the Company is experiencing some supply chain challenges. Suppliers are also experiencing liquidity pressures and disruptions to their operations as a result of COVID-19. The challenges with our suppliers have been ameliorated during the third quarter and their operations have substantially returned to normal. During the three months ended June 30, 2020, we had large numbers of employees working remotely. As of September 30, 2020 essentially all employees have returned to work at our facilities.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law. The CARES Act provides aid to small businesses through programs administered by the Small Business Administration ("SBA"). The CARES Act includes, among other things, provisions relating to payroll tax credits and deferrals, net operating loss carryback periods, alternative minimum tax credits and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act also established a Paycheck Protection Program ("PPP"), whereby certain small businesses are eligible for a loan to fund payroll expenses, rent, and related costs.

In May 2020, AIM, NTW and Sterling (each a "Borrower") entered into government subsidized loans with Sterling National Bank ("SNB") as the lender in an aggregate principal amount of approximately $2.4 million ("SBA Loans"). Each SBA Loan is evidenced by a promissory note. At least 60% of the proceeds of each Loan must be used for payroll and payroll-related costs, in accordance with the applicable provisions of the federal statute authorizing the loan program administered by the SBA and the rules promulgated thereunder (the "Loan Program"). The Borrower has applied to SNB for forgiveness and SNB has approved and submitted the forgiveness application to the SBA for final approval in accordance with the applicable provisions of the federal statute authorizing the Loan Program. See Note 6.

The Company has elected to defer the deposit and payment of employer's portion of Social Security taxes pursuant to Section 2302 of the CARES Act. These deferred amounts must be repaid 50% on December 31, 2021 with the remaining 50% on December 31, 2022. As of September 30, 2020, the Company has deferred $429,000, which is classified as Deferred payroll tax liability – CARES Act on the accompanying Condensed Consolidated Balance Sheet.

In addition, as a result of the passage of the CARES Act, the Company received a tax refund of $1,416,000 from the filing of a net operating loss carryback claim. See Note 10.

The Company believes that based on its confirmed orders, funds generated from operations, amounts received under government subsidized loan programs and amounts available under its credit facility, it will have sufficient cash on hand to support its activities through November 1, 2021.

Subsequent Events

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

Discontinued Operations

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Note 2. DISCONTINUED OPERATIONS

As discussed in Note 1, the Company disposed of its EPC and ECC subsidiaries in March 2019. As required, the Company has retrospectively recast its condensed consolidated statements of operations for the 2019 period presented. As such, these businesses are reported as discontinued operations for the three and nine months ended September 30, 2019. The Company has not segregated the cash flows of these businesses in the condensed 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.

The following table presents the results of discontinued operations presented separately in the condensed consolidated statement of operations for the three and nine months ended September 30, 2019:

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2019			2019
	(unaudited)			(unaudited)
Net revenue	$	-		$	132,000
Cost of goods sold		-			105,000
Gross profit		-			27,000
Operating expenses:
Selling, general and administrative		100,000			155,000
Loss from operations		(100,000	)		(128,000	)
Interest expense		-			(1,000	)
Other expense		(111,000	)		(10,000	)
Loss from discontinued operations before income taxes		(211,000	)		(139,000	)

Provision for income taxes		-			-
Loss from discontinued operations, net of income tax	$	(211,000	)	$	(139,000	)

Non-cash operating amounts for discontinued operations for the three and nine months ended September 30, 2019 include depreciation and amortization of $0 and $6,000, respectively. There were no capital expenditures for discontinued operations for both the three and nine months ended September 30, 2019. There were no other significant non-cash operating amounts or investing items of the discontinued operations for the period.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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. Historically, in each period, substantially all of the inventory value has been estimated using a gross profit percentage based on annual gross profit percentages of the immediately preceding year as applied to the net sales of the current period. During the three months ended September 30, 2020, the Company determined that its gross profits by segment were below its 2019 gross profit percentages and accordingly has adjusted margins to less than those of 2019. Adjustments to reconcile the annual physical inventory to the Company's books are recorded in the fourth quarter.

Credit and Concentration Risks

There were three customers that represented 70.6% and two customers that represented 61.7% of total net sales for the three months ended September 30, 2020 and 2019, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
1		25.8		35.0
2		23.2		26.7
3		21.6		*

Customer was less than 10% of sales for the three months ended September 30, 2019.

There were three customers that represented 74.2% and 73.4% of total sales for the nine months ended September 30, 2020 and 2019, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
1		32.1		31.1
2		28.2		31.0
3		13.9		*
4		*		11.3

Customer was less than 10% of sales for the nine months ended September 30, 2020 and 2019.

There were two customers that represented 63.6% and three customers that represented 67.8% of gross accounts receivable at September 30, 2020 and December 31, 2019, respectively. This is set forth in the table below.

Customer	Percentage of Receivables
	September 30, 2020		December 31, 2019
	(Unaudited)
1		34.6		32.7
2		29.0		10.0
3		*		25.1

Customer was less than 10% of accounts receivable sales at September 30, 2020.

Cash and Cash Equivalents

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

Major Suppliers

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 or unwilling to provide parts for any reason, its business could be severely harmed.

Leases

The Company accounts for leases under ASC 842, "Leases." 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.

Earnings (Loss) per share

Basic earnings (loss) per share ("EPS") is computed by dividing the net income (loss) applicable to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

For purposes of calculating diluted earnings per common share, the numerator includes net income plus interest on convertible notes payable assumed converted as of the first day of the period. The denominator includes both the weighted-average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and warrants using the treasury stock method and convertible notes payable using the if-converted method.

The following is the calculation of net (loss) income applicable to common stockholders utilized to calculate the EPS:

	Three Months Ended					Nine Months Ended
	Sept 30, 2020			Sept 30, 2019		Sept 30, 2020			Sept 30, 2019
Continuing Operations	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Income (loss) from continuing operations	$	(477,000	)	$	398,000	$	(1,003,000	)	$	(1,332,000	)
Add: Convertible Note Interest for Potential Note Conversion		-			120,000		-			-

Income (loss) used to calculate earnings per share	$	(477,000	)	$	518,000	$	(1,003,000	)	$	(1,332,000	)

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

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Continuing Operations	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		30,620,990		28,909,072		30,524,874		28,774,041
Effect of dilutive stock options and warrants		-		131,458		-		-
Effect of dilutive convertible notes payable		-		6,005,485		-		-
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		30,620,990		35,046,015		30,524,874		28,774,041

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 and Nine Months Ended
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
Stock Options		163,000		852,000
Warrants		1,423,000		2,183,000
		1,586,000		3,035,000

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 during the periods set forth below because the effect of including these potential shares was anti-dilutive due to the net loss incurred during these periods:

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Stock Options		1,696,000		-		1,696,000		500,000
Warrants		760,000		-		760,000		-
Convertible notes payable		5,092,000		-		5,092,000		6,005,000
		7,548,000		-		7,548,000		6,505,000

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 amounted to $52,000 and $25,000 for the three months ended September 30, 2020 and 2019, respectively, and $266,000 and $351,000 for the nine months ended September 30, 2020 and 2019, respectively. Stock compensation expense for directors amounted to $58,000 and $56,000 for the three months ended September 30, 2020 and 2019, respectively and $159,000 and $187,000 for the nine months ended September 30, 2020 and 2019, respectively. Stock compensation expense for employees and directors was included in operating expenses on the accompanying Condensed Consolidated Statements of Operations.

Goodwill

Goodwill represents the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. The goodwill amount of $163,000 at September 30, 2020 and December 31, 2019 relates to the acquisition 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 COVID-19 pandemic was a triggering event for testing whether goodwill has been impaired. The Company performed a qualitative assessment and determined it is more likely than not that the fair value exceeds the carrying value of $163,000 as of September 30, 2020. The Company will continue to monitor the impacts of the COVID-19 pandemic in future quarters. Changes in the Company's forecasts or further decreases in the value of its common stock could cause book values to exceed fair values which may result in goodwill impairment charges in future periods.

Recently Issued Accounting Pronouncements

In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) ("ASU 2020-06"), which is intended to address issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance on the basis of feedback from financial statement users. ASU 2020-06 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is evaluating the effect of adopting this new accounting guidance on its financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and related disclosures.

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 condensed consolidated financial statements.

Property and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Note 4. PROPERTY AND EQUIPMENT

The components of property and equipment at September 30, 2020 and December 31, 2019 consisted of the following:

	September 30,			December 31,
	2020			2019
	(unaudited)
Land	$	300,000		$	300,000
Buildings and Improvements		1,650,000			1,650,000		31.50 years
Machinery and Equipment		14,861,000			12,251,000		5 - 8 years
Finance Lease Machinery and Equipment		6,546,000			6,495,000		5 - 8 years
Tools and Instruments		11,612,000			11,021,000		1.50 - 7 years
Automotive Equipment		148,000			177,000		5 years
Furniture and Fixtures		290,000			290,000		5 - 8 years
Leasehold Improvements		530,000			530,000		Term of Lease
Computers and Software		436,000			425,000		4 - 6 years
Total Property and Equipment		36,373,000			33,139,000
Less: Accumulated Depreciation		(27,466,000	)		(25,561,000	)
Property and Equipment, net	$	8,907,000		$	7,578,000

Depreciation expense for the three months ended September 30, 2020 and 2019 was $576,000 and $712,000, respectively. Depreciation expense for the nine months ended September 30, 2020 and 2019 was $1,920,000 and $2,085,000, 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 2020 and 2019. Accumulated depreciation on these assets was approximately $6,359,000 and $5,936,000 as of September 30, 2020 and December 31, 2019, respectively.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

Note 5. LEASES

The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. The Company leases certain machinery and equipment under finance leases and leases its offices and manufacturing facilities under operating leases. The leases have remaining lease terms of one to six years, some of which include options to extend or terminate the leases.

NTW's warehouse lease was terminated in May 2020 by its landlord under the terms of its lease agreement. Additionally, the Company entered into a new lease agreement for warehouse space in Bohemia, NY. The new lease term commenced on April 1, 2020 and expires on May 31, 2025. During the first year of the lease, the monthly rent is $10,964 and increases 3% each year thereafter. The final two months are equal installments of $1,746.

Rent expense for the three months ended September 30, 2020 and 2019 was $280,000 and $310,000, respectively. Rent expense for the nine months ended September 30, 2020 and 2019 was $892,000 and $936,000, respectively.

	September 30,
	2020
Weighted Average Remaining Lease Term - in years		5.77
Weighted Average discount rate - %		8.88	%

The aggregate undiscounted cash flows of operating lease payments for leases with remaining terms greater than one year are as follows:

	September 30, 2020
For the twelve months ended December 31,	(unaudited)
December 31, 2020 (remaining three months)	$	271,000
December 31, 2021		1,080,000
December 31, 2022		1,007,000
December 31, 2023		1,038,000
December 31, 2024		1,070,000
Thereafter		1,722,000
Total future minimum lease payments		6,188,000
Less: discount		(1,394,000	)
Total operating lease maturities		4,794,000
Less: current portion of operating lease liabilities		(694,000	)
Total long term portion of operating lease maturities	$	4,100,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations

9 Months Ended

Sep. 30, 2020

Notes and Loans Payable [Abstract]

NOTES PAYABLE, RELATED PARTY NOTES PAYABLE AND FINANCE LEASE OBLIGATIONS

Note 6. NOTES PAYABLE, RELATED PARTY NOTES PAYABLE AND FINANCE LEASE OBLIGATIONS

Notes payable and finance lease obligations at September 30, 2020 and December 31, 2019 consisted of the following:

	September 30,			December 31,
	2020			2019
	(unaudited)
Revolving credit note payable to Sterling National Bank (“SNB”)	$	15,883,000		$	12,543,000
Term loan, SNB		3,386,000			3,800,000
Finance lease obligations		12,000			22,000
Loans Payable - financed assets		220,000			385,000
Related party notes payable, net of debt discount		6,018,000			6,862,000
Convertible notes payable-third parties, net of debt discount		1,440,000			2,338,000
SBA loans		2,414,000			-
Subtotal		29,373,000			25,950,000
Less: Current portion of notes payable, related party notes payable and finance lease obligations		(22,234,000	)		(22,544,000	)
Notes payable, related party notes payable and finance lease obligations, net of current portion	$	7,139,000		$	3,406,000

Sterling National Bank (“SNB”)

On December 31, 2019, the Company entered into a new loan facility (“SNB Facility”) with Sterling National Bank, (“SNB”) expiring on December 30, 2022. The new loan facility provides for a $16,000,000 revolving loan (“SNB revolving line of credit”) and a term loan (“SNB term loan”).

Proceeds from the SNB Facility repaid the Company’s outstanding loan facility (“PNC Facility”) with PNC Bank N.A. (“PNC”).

The formula to determine the amounts of revolving advances permitted to be borrowed under the SNB revolving line of credit is based on a percentage of the Company’s eligible receivables and eligible inventory (as defined in the SNB Facility). Each day, the Company’s cash collections are swept directly by SNB to reduce the SNB revolving loan balance and the Company then borrows according to a borrowing base formula. The Company’s receivables are payable directly into a lockbox controlled by SNB (subject to the terms of the SNB Facility).

The repayment terms of the SNB term loan provide for monthly principal installments in the amount of $45,238, payable on the first business day of each month, beginning on February 1, 2020, with a final payment of any unpaid balance of principal and interest payable on December 30, 2022. In addition, for so long as the SNB term loan remains outstanding, if Excess Cash Flow (as defined) is a positive number for any fiscal year, beginning with the year ending December 31, 2020, the Company shall pay to SNB an amount equal to the lesser of (i) twenty-five percent (25%) of the Excess Cash Flow for such Fiscal Year and (ii) the outstanding principal balance of the term loan. Such payment shall be made to SNB and applied to the outstanding principal balance of the term loan, on or prior to April 15 of the Fiscal Year immediately following such Fiscal Year.

On November 6, 2020, the Company entered into the First Amendment to Loan and Security Agreement (“First Amendment”). The terms of the agreement increase the Term Loan to $5,685,000. The repayment terms of the term loan were amended to provide monthly principal installments in the amount of $67,679 beginning on December 1, 2020, with a final payment of any unpaid balance of principal and interest payable on December 30, 2022. Additionally, the date by which certain subordinated third-party notes need to be extended by was changed from September 30, 2020 to November 30, 2020. The Company has paid an amendment fee of $20,000.

The Company may voluntarily prepay balances under the SNB Facility. Any prepayment of less than all of the outstanding principal of the SNB term loan is applied to the principal of the SNB term loan.

The terms of the SNB Facility require that, among other things, the Company maintain a specified Fixed Charge Coverage Ratio of 1.25 to 1.00 at the end of each Fiscal Quarter beginning with the Fiscal Quarter ending March 31, 2020. In addition, the Company is limited in the amount of Capital Expenditures it can make. The SNB Loan Agreement required the Company by September 30, 2020, to either (i) extend the maturity date of certain subordinate convertible notes to a date more than six months after December 31, 2022 or alternatively (ii) convert these notes to common stock of the Company. As of September 30, 2020, the Company was not in compliance with all loan covenants. As a result, the full balance due under the term note was classified as a current liability in the condensed consolidated balance sheet as of September 30, 2020. In connection with the First Amendment, the bank waived all events of default identified as of and through September 30, 2020. The SNB Facility also restricts the amount of dividends the Company may pay to its stockholders. Substantially all of the Company’s assets are pledged as collateral under the SNB Facility.

The aggregate payments for the term note at September 30, 2020 are as follows:

For the twelve months ending	Amount
December 31, 2020 (remainder of the year)	$	136,000
December 31, 2021		543,000
December 31, 2022		2,759,000
SNB Term Loans payable		3,438,000
Less: debt issuance costs		(52,000	)
Total SNB Term loan payable, net of debt issuance costs		3,386,000
Less: Current portion of SNB term loan payable		3,386,000
Total long-term portion of SNB term loan payable	$	-

Under the terms of the SNB Facility, both the SNB revolving line of credit and the SNB term loan will bear an interest rate equal to 30-day LIBOR (with a 1% floor) plus 2.5%. The average interest rate charged during the period ended September 30, 2020 was 3.5%.

As of September 30, 2020, our debt to SNB in the amount of $19,269,000 consisted of the SNB revolving line of credit note in the amount of $15,883,000 and the SNB term loan in the amount of $3,386,000. As of December 31, 2019, our debt to SNB in the amount of $16,343,000 consisted of the SNB revolving line of credit note in the amount of $12,543,000 and the SNB term loan in the amount of $3,800,000.

Interest expense related to the SNB Facility amounted to approximately $147,000 for the three months ended September 30, 2020, and $420,000 for the nine months ended September 30, 2020.

PNC Bank N.A. (“PNC”)

The Company previously maintained a financing facility with PNC. Under such facility, substantially all of the Company’s assets were pledged as collateral. The PNC Facility provided for a $15,000,000 revolving line of credit (“PNC revolving line of credit”) and a term loan (“PNC term loan”).

Interest expense related to the PNC Facility amounted to approximately $391,000 for the three months ended September 30, 2019 and $954,000 for the nine months ended September 30, 2019.

On December 31, 2019, both the PNC revolving line of credit and PNC term loan were paid in full and all assets that were previously pledged as collateral were released.

Loans Payable – Financed Assets

The Company financed the 2019 acquisition of manufacturing equipment with a third-party loan. The loan obligation totaled $170,000 and $385,000 as of September 30, 2020 and December 31, 2019, respectively and bears interest at 3% per annum.

The Company has also borrowed to purchase a delivery vehicle in July 2020. The loan obligation totaled $50,000 and $0 as of September 30, 2020 and December 31, 2019, respectively. The loan bears no interest and a final payment is due and payable for all unpaid principal on July 20, 2026.

Annual maturities of these loans are as follows:

For the twelve months ending	Amount
December 31, 2020 (remainder of the year)	$	75,000
December 31, 2021		106,000
December 31, 2022		9,000
December 31, 2023		9,000
December 31, 2024		9,000
Thereafter		12,000
Loans Payable - financed assets		220,000
Less: Current portion		179,000
Long-term portion	$	41,000

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 and are subordinate to the Company’s indebtedness under the SNB Facility.

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.

On June 26, 2019, the Company was advanced $250,000 from each of Michael and Robert Taglich. These notes bear interest at a rate of 12% per annum. In connection with these notes, the Company issued 37,500 shares of stock to each of Michael and Robert Taglich. The maturity date, of these notes, was June 30, 2020, but was extended to December 31, 2020.

On October 21, 2019, the Company was advanced $1,000,000 from Michael Taglich. This advance was repaid on January 2, 2020. The interest rate on this advance was 12% per annum.

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 originally due May 31, 2019 to Michael Taglich and Robert Taglich, together with shares of common stock, in the financing described below, to evidence its obligation to repay the foregoing advances.

In May 2018, the Company issued $1,200,000 of Subordinated Notes due May 31, 2019 (the “2019 Notes”), together with a total of 214,762 shares of common stock 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 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. This additional note was paid in full on January 2, 2020.

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 SNB.

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

During the second quarter of 2019, the maturity date of the 2019 Notes was extended to June 30, 2020. The interest rate of the notes remains at 12% per annum. In connection with the extension, 180,000 shares of common stock were issued on a pro-rata basis to each of the note holders, including 150,000 shares to Michael Taglich and 15,000 shares to Robert Taglich. The shares were valued at $1.01 per share or $182,000. The costs have been recorded as a debt discount, and are being accreted over the revised term. In connection with the SNB Facility, Michael and Robert Taglich agreed to extend the maturity date of the 2019 Notes to December 31, 2020.

Private Placements of 8% Subordinated Convertible Notes

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

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

Related party advances and notes payable, net of debt discounts to Michael and Robert Taglich, and their affiliated entities, totaled $6,018,000 and $6,862,000, as of September 30, 2020 and December 31, 2019, respectively. Unamortized debt discounts related to these notes amounted to $38,000 and $226,000 as of September 30, 2020 and December 31, 2019, respectively. Interest incurred on these related party notes amounted to approximately $125,000 and $265,000 for the three months ended September 30, 2020 and 2019, respectively, and $378,000 and $740,000 for the nine months ended September 30, 2020 and 2019 respectively. Amortization of debt discount incurred on these related party notes amounted to approximately $38,000 and $76,000 for the three months ended September 30, 2020 and 2019, respectively and $189,000 and $227,000 for the nine months ended September 30, 2020 and 2019, respectively. The amortization of the debt discount is included in interest and financing costs in the Condensed Consolidated Statement of Operations.

Per the terms of the SNB Facility, the maturity date of all related party notes has been extended to July 1, 2023 and are subordinated to the SNB Facility. There are no principal payments due on these notes until such time.

Convertible Notes Payable – Third Parties

8% Notes payable to third parties totaled $1,440,000 and $2,338,000, as of September 30, 2020 and December 31, 2019, respectively. Interest incurred on the 8% Notes amounted to approximately $38,000 and $63,000 for the three months ended September 30, 2020 and 2019, respectively, and $118,000 and $319,000 for the nine months ended September 30, 2020 and 2019, respectively. Unamortized debt discounts related to these notes amounted to $0 and $7,000 as of September 30, 2020 and December 31, 2019, respectively. Amortization of debt discount on the 8% Notes amounted to approximately $0 and $3,000 for the three months ended September 30, 2020 and 2019, respectively, and $7,000 and $131,000 for the nine months ended September 30, 2020 and 2019, respectively. These costs are included in interest and financing costs in the Condensed Consolidated Statement of Operations.

All convertible notes with third parties are due on December 31, 2020 and are subordinated to the SNB Facility. There are no principal payments due on these notes until such time.

Per the terms of the SNB Facility, as amended, prior to November 30, 2020, the maturity date of each third party convertible note payable must be extended to a date that is more than six months after December, 30, 2022 or converted into common stock of the Company.

On November 3, 2020 third party holders of $1,225,000 principal of the 8% Notes with accrued interest thereon of $210,282 converted their notes into 1,063,272 shares of common stock at a per share price of $1.35.

SBA Loans

In May 2020, AIM, NTW and Sterling entered into SBA Loans with SNB as the lender in an aggregate principal amount of $2,414,000 all of which remains outstanding. Each SBA Loan is evidenced by a Note. Subject to the terms of the Note, the SBA Loan bears interest at a fixed rate of one percent (1%) per annum, with the first six months of interest deferred, has an initial term of two years, and is unsecured and guaranteed by the SBA. At least 60% of the proceeds of each Loan must be used for payroll and payroll-related costs, in accordance with the applicable provisions of the federal statute authorizing the loan program administered by the SBA and the rules promulgated thereunder (the “Loan Program”). Each Note provides for customary events of default including, among other things, cross-defaults on any other loan with SNB. Each SBA Loan may be accelerated upon the occurrence of an event of default.

The Company has elected to treat the SBA Loans as debt under FASB ASC 470. As such, the Company will derecognize the liability only when the loans are forgiven in whole or in part and the Company is legally released or repays the loans.

The Company used the $2,414,000 of loans for allowed payroll and benefits expenses and expects the majority of the loans, if not all, will be forgiven. The Company has applied to the SNB for forgiveness and SNB has approved the application and submitted it to the SBA for final approval in accordance with the applicable provisions of the federal statute authorizing the Loan Program. The SBA will, subject to any SBA review of the loan or loan application, remit the appropriate forgiveness amount to SNB, plus any interest accrued through the date of payment, not later than 90 days after the lender issues its decision to the SBA. No assurance can be given that the Company will obtain forgiveness of the loan in whole or in part. In addition, as a borrower that received over $2 million, the Company expects to be subject to an audit to review our eligibility under the Loan Program. The timing and scope of the audit remains unclear and as a result, the Company is not able to forecast when it can expect a decision on loan forgiveness. The Company does not expect the audit will impact its eligibility for forgiveness under the program.

If the loans are not ultimately forgiven, the future minimum loan payments are as follows:

For the twelve months ending	Amount
December 31, 2020 (remainder of the year)	$	133,000
December 31, 2021		1,607,000
December 31, 2022		674,000
Total SBA Loans		2,414,000
Less: Current portion of SBA Loans		1,337,000
Long-term portion of SBA Loans	$	1,077,000

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

9 Months Ended

Sep. 30, 2020

Placement invested percentage [Abstract]

NOTE 7. 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 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.

The Company recognized $91,000 and $89,000 of non-cash income for the three months ended September 30, 2020 and 2019, respectively, and $302,000 and $198,000 of non-cash income for the nine months ended September 30, 2020 and 2019, respectively, reflected in "Other income, net" on the condensed consolidated statement of operations. Additionally, the Company recorded $26,000 and $27,000 of related non-cash interest expense related to the Purchase Agreement, for the three months ended September 30, 2020 and 2019, respectively, and $90,000 and $60,000 for the nine months ended September 30, 2020 and 2019, respectively.

The table below shows the activity within the liability account for the nine months ended September 30, 2020:

Liabilities related to sale of future proceeds from disposition of subsidiaries - as of December 31, 2019	$	603,000
Non-Cash other income recognized		(302,000	)
Non-Cash interest expense recognized		90,000
Liabilities related to sale of future proceeds from disposition of subsidiary - as of September 30, 2020		391,000
Less: unamortized transaction costs		(3,000	)
Liability related to sale of future proceeds from disposition of subsidiary, net	$	388,000

Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

STOCKHOLDERS' EQUITY

Note 8. STOCKHOLDERS’ EQUITY

Common Stock – Sale of Securities

In January 2020, the Company issued and sold 419,597 shares of its common stock for gross proceeds of $984,000 pursuant to a Form S-3 filed on October 10, 2019 as updated on January 15, 2020. Costs of the sale amounted to $145,000.

The Company issued 41,915 and 57,433 shares of common stock in lieu of cash payments for director fees for the three months ended September 30, 2020 and 2019, respectively, and 132,812 and 205,263 for the nine months ended September 30, 2020 and 2019, respectively.

Contingencies

9 Months Ended

Sep. 30, 2020

Contingencies [Abstract]

CONTINGENCIES

Note 9. CONTINGENCIES

Loss Contingencies

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

On December 20, 2018, pursuant to a Stock Purchase Agreement dated as of March 21, 2018 (“SPA”), the Company completed the sale of all of the outstanding shares of its subsidiary, Welding Metallurgy, Inc. to CPI Aerostructures. On March 19, 2019, in accordance with the procedures set forth in the SPA with CPI Aerostructures, the Company received a notice from CPI claiming that the working capital deficit used to compute the purchase price was understated. The issue of the amount of the working capital deficit was submitted to BDO USA, LLP (“BDO”), acting as an expert, and it issued a report dated September 3, 2019, where it determined that the amount of the working capital deficit was approximately $4,145,870. On September 9, 2019 the Company received a demand from CPI for payment of such amount. The Company advised CPI that the determination of BDO is void because, among other things, it believes BDO exceeded the scope of its authority as set forth in the SPA. On September 27, 2019, CPI filed a notice of motion in the Supreme Court of the State of New York, County of New York, against the Company seeking, among other things, an order of specific performance requiring delivery of the funds deposited in escrow, together with the balance of the working capital deficit which it claimed, and a judgment against the Company in the amount of approximately $4,200,000 of which $2,000,000 would be satisfied by delivery of the funds in escrow. On October 7, 2019, the Company agreed to the release of $619,316 of the funds held in escrow in respect of claims related to the working capital deficit not related to the value of WMI’s inventory. As of December 31, 2018, the Company has placed a reserve against substantially all of the escrowed amount and cannot estimate the amount of loss. For, among others, the reasons stated above the Company intends to contest vigorously any claim CPI may make for payment based on the BDO Report. Outside counsel for the company has advised that at this stage in the proceedings, it cannot offer an opinion as to the probable outcome.

On October 1, 2020, the court issued an order which stated that “CPI must commence a special proceeding to obtain the relief” sought by its Motion despite the fact that the stipulation of discontinuance entered into by CPI and the Company with respect to the action to enforce the SPA commenced by CPI on July 5, 2018, provided that the court would retain jurisdiction over the case. The court stated further that a special proceeding requires pleadings consisting of, among others, a petition which complies with the requirements for a complaint in an action and an answer. Since CPI brought the action in the form of a motion and not a complaint, neither party complied with the pleading requirements which the court stated is required. Consequently, the court denied CPI’s Motion and denied the Company’s cross motion to vacate BDO’s determination and conduct discovery.

The court’s decision does not resolve the Company’s dispute with CPI. CPI’s Motion was denied for procedural issues and the court did not consider the substance of the dispute. CPI, among other options, may choose to appeal this decision or commence a new proceeding. In either event, the Company intends to contest vigorously any claim CPI may make based on the BDO report.

Contract Pharmacal Corp. commenced an action on October 2, 2018, relating to a Sublease entered into between the Company and Contract Pharmacal in May 2018 with respect to the property at 110 Plant Avenue, Hauppauge, New York. In the action Contract Pharmacal seeks damages for an amount in excess of $1,000,000 for our 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 have recently submitted a motion in opposition to its motion for summary judgement. As of September 30, 2020, it is not possible to estimate if a loss will be incurred, as such there has been no accrual.

From time to time we also may be engaged in various lawsuits and legal proceedings in the ordinary course of our business. We are 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. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder of our common stock, is an adverse party or has a material interest averse to our interest.

Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 10. INCOME TAXES

The Company recorded no federal income tax expense for the three and nine months ended September 30, 2020 and 2019 because the estimated annual effective tax rate was zero. 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 a result of the passage of the CARES Act, the Company received $1,416,000 from the filing of a net operating loss carryback claim. The Company is currently evaluating the impact of other provisions of the CARES Act on its accounting for income taxes and does not believe it has a material impact at this time.

The Company recorded no other federal income tax benefit for both of the three and nine months ended September 30, 2020 and 2019.

As of September 30, 2020, and December 31, 2019, the Company provided a full 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 11. 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 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 its corporate division as an independent segment.

For reporting purposes, EPC and ECC have been classified as discontinued operations for the three and nine months ending September 30, 2019.

The accounting policies of each of the segments are the same as those described in the Summary of Significant Accounting Policies. Intersegment transfers are recorded at the transferor's cost, and there is no intercompany profit or loss on intersegment transfers. We evaluate performance based on revenue, gross profit contribution and assets employed.

Financial information about the Company's operating segments for the three and nine months ended September 30, 2020 and 2019 are as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
COMPLEX MACHINING
Net Sales	$	12,423,000		$	12,283,000		$	31,795,000		$	36,402,000
Gross Profit		1,735,000			2,762,000			4,584,000			7,070,000
Pre Tax Income from continuing operations		912,000			2,003,000			2,072,000			4,797,000
Assets		52,963,000			45,033,000			52,963,000			45,033,000

TURBINE ENGINE COMPONENTS
Net Sales		1,239,000			1,714,000			3,808,000			4,841,000
Gross Profit (Loss)		(79,000	)		201,000			(133,000	)		358,000
Pre Tax Loss from continuing operations		(251,000	)		(11,000	)		(594,000	)		(292,000	)
Assets		3,941,000			5,122,000			3,941,000			5,122,000

CORPORATE
Net Sales		-			-			-			-
Gross Profit		-			-			-			-
Pre Tax Loss from continuing operations		(1,138,000	)		(1,572,000	)		(3,895,000	)		(5,815,000	)
Assets		1,860,000			596,000			1,860,000			596,000

CONSOLIDATED
Net Sales		13,662,000			13,997,000			35,603,000			41,243,000
Gross Profit		1,656,000			2,963,000			4,451,000			7,428,000
Pretax net income (loss) from continuing operations		(477,000	)		420,000			(2,417,000	)		(1,310,000	)
Provision for (benefit from) Income Taxes		-			22,000			(1,414,000	)		22,000
Loss from Discontinued Operations, net of taxes		-			(211,000	)		-			(139,000	)
Net Income (Loss)		(477,000	)		187,000			(1,003,000	)		(1,471,000	)
Assets	$	58,764,000		$	50,751,000		$	58,764,000		$	50,751,000

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Inventory Valuation

Inventory Valuation

Credit and Concentration Risks

Credit and Concentration Risks

Customer	Percentage of Sales
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
1		25.8		35.0
2		23.2		26.7
3		21.6		*

Customer was less than 10% of sales for the three months ended September 30, 2019.

There were three customers that represented 74.2% and 73.4% of total sales for the nine months ended September 30, 2020 and 2019, respectively. This is set forth in the table below.

Customer	Percentage of Sales
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
1		32.1		31.1
2		28.2		31.0
3		13.9		*
4		*		11.3

Customer was less than 10% of sales for the nine months ended September 30, 2020 and 2019.

Customer	Percentage of Receivables
	September 30, 2020		December 31, 2019
	(Unaudited)
1		34.6		32.7
2		29.0		10.0
3		*		25.1

Customer was less than 10% of accounts receivable sales at September 30, 2020.

Cash and Cash Equivalents

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

Major Suppliers

Leases

Leases

The Company accounts for leases under ASC 842, “Leases.” 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.

Earnings (Loss) per share

Earnings (Loss) per share

The following is the calculation of net (loss) income applicable to common stockholders utilized to calculate the EPS:

	Three Months Ended					Nine Months Ended
	Sept 30, 2020			Sept 30, 2019		Sept 30, 2020			Sept 30, 2019
Continuing Operations	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Income (loss) from continuing operations	$	(477,000	)	$	398,000	$	(1,003,000	)	$	(1,332,000	)
Add: Convertible Note Interest for Potential Note Conversion		-			120,000		-			-

Income (loss) used to calculate earnings per share	$	(477,000	)	$	518,000	$	(1,003,000	)	$	(1,332,000	)

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

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Continuing Operations	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		30,620,990		28,909,072		30,524,874		28,774,041
Effect of dilutive stock options and warrants		-		131,458		-		-
Effect of dilutive convertible notes payable		-		6,005,485		-		-
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		30,620,990		35,046,015		30,524,874		28,774,041

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 and Nine Months Ended
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
Stock Options		163,000		852,000
Warrants		1,423,000		2,183,000
		1,586,000		3,035,000

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Stock Options		1,696,000		-		1,696,000		500,000
Warrants		760,000		-		760,000		-
Convertible notes payable		5,092,000		-		5,092,000		6,005,000
		7,548,000		-		7,548,000		6,505,000

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 amounted to $52,000 and $25,000 for the three months ended September 30, 2020 and 2019, respectively, and $266,000 and $351,000 for the nine months ended September 30, 2020 and 2019, respectively. Stock compensation expense for directors amounted to $58,000 and $56,000 for the three months ended September 30, 2020 and 2019, respectively and $159,000 and $187,000 for the nine months ended September 30, 2020 and 2019, respectively. Stock compensation expense for employees and directors was included in operating expenses on the accompanying Condensed Consolidated Statements of Operations.

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 COVID-19 pandemic was a triggering event for testing whether goodwill has been impaired. The Company performed a qualitative assessment and determined it is more likely than not that the fair value exceeds the carrying value of $163,000 as of September 30, 2020. The Company will continue to monitor the impacts of the COVID-19 pandemic in future quarters. Changes in the Company’s forecasts or further decreases in the value of its common stock could cause book values to exceed fair values which may result in goodwill impairment charges in future periods.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which is intended to address issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance on the basis of feedback from financial statement users. ASU 2020-06 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is evaluating the effect of adopting this new accounting guidance on its financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and related disclosures.

- Definition

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

+ References + Details

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2020

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			Nine Months Ended
	September 30,			September 30,
	2019			2019
	(unaudited)			(unaudited)
Net revenue	$	-		$	132,000
Cost of goods sold		-			105,000
Gross profit		-			27,000
Operating expenses:
Selling, general and administrative		100,000			155,000
Loss from operations		(100,000	)		(128,000	)
Interest expense		-			(1,000	)
Other expense		(111,000	)		(10,000	)
Loss from discontinued operations before income taxes		(211,000	)		(139,000	)

Provision for income taxes		-			-
Loss from discontinued operations, net of income tax	$	(211,000	)	$	(139,000	)

- Definition

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

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+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Schedule of credit and concentration risks

Customer	Percentage of Sales
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
1		25.8		35.0
2		23.2		26.7
3		21.6		*

Customer was less than 10% of sales for the three months ended September 30, 2019.

Customer	Percentage of Sales
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
1		32.1		31.1
2		28.2		31.0
3		13.9		*
4		*		11.3

Customer was less than 10% of sales for the nine months ended September 30, 2020 and 2019.

Customer	Percentage of Receivables
	September 30, 2020		December 31, 2019
	(Unaudited)
1		34.6		32.7
2		29.0		10.0
3		*		25.1

Customer was less than 10% of accounts receivable sales at September 30, 2020.

Schedule of calculation of net income (loss) applicable to common stockholders utilized to calculate EPS

	Three Months Ended					Nine Months Ended
	Sept 30, 2020			Sept 30, 2019		Sept 30, 2020			Sept 30, 2019
Continuing Operations	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Income (loss) from continuing operations	$	(477,000	)	$	398,000	$	(1,003,000	)	$	(1,332,000	)
Add: Convertible Note Interest for Potential Note Conversion		-			120,000		-			-

Income (loss) used to calculate earnings per share	$	(477,000	)	$	518,000	$	(1,003,000	)	$	(1,332,000	)

Schedule of earnings per share for continuing operations

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Continuing Operations	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Weighted average shares outstanding used to compute basic earnings per share		30,620,990		28,909,072		30,524,874		28,774,041
Effect of dilutive stock options and warrants		-		131,458		-		-
Effect of dilutive convertible notes payable		-		6,005,485		-		-
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		30,620,990		35,046,015		30,524,874		28,774,041

Schedule of anti-dilutive securities

	Three and Nine Months Ended
	September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)
Stock Options		163,000		852,000
Warrants		1,423,000		2,183,000
		1,586,000		3,035,000

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Stock Options		1,696,000		-		1,696,000		500,000
Warrants		760,000		-		760,000		-
Convertible notes payable		5,092,000		-		5,092,000		6,005,000
		7,548,000		-		7,548,000		6,505,000

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	September 30,			December 31,
	2020			2019
	(unaudited)
Land	$	300,000		$	300,000
Buildings and Improvements		1,650,000			1,650,000		31.50 years
Machinery and Equipment		14,861,000			12,251,000		5 - 8 years
Finance Lease Machinery and Equipment		6,546,000			6,495,000		5 - 8 years
Tools and Instruments		11,612,000			11,021,000		1.50 - 7 years
Automotive Equipment		148,000			177,000		5 years
Furniture and Fixtures		290,000			290,000		5 - 8 years
Leasehold Improvements		530,000			530,000		Term of Lease
Computers and Software		436,000			425,000		4 - 6 years
Total Property and Equipment		36,373,000			33,139,000
Less: Accumulated Depreciation		(27,466,000	)		(25,561,000	)
Property and Equipment, net	$	8,907,000		$	7,578,000

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of components of lease costs, lease term and discount rate

	September 30,
	2020
Weighted Average Remaining Lease Term - in years		5.77
Weighted Average discount rate - %		8.88	%

Schedule of aggregate undiscounted cash flows of operating lease payments

	September 30, 2020
For the twelve months ended December 31,	(unaudited)
December 31, 2020 (remaining three months)	$	271,000
December 31, 2021		1,080,000
December 31, 2022		1,007,000
December 31, 2023		1,038,000
December 31, 2024		1,070,000
Thereafter		1,722,000
Total future minimum lease payments		6,188,000
Less: discount		(1,394,000	)
Total operating lease maturities		4,794,000
Less: current portion of operating lease liabilities		(694,000	)
Total long term portion of operating lease maturities	$	4,100,000

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

9 Months Ended

Sep. 30, 2020

Notes and Loans Payable [Abstract]

Schedule of notes payable, related party notes payable and finance lease obligations

	September 30,			December 31,
	2020			2019
	(unaudited)
Revolving credit note payable to Sterling National Bank ("SNB")	$	15,883,000		$	12,543,000
Term loan, SNB		3,386,000			3,800,000
Finance lease obligations		12,000			22,000
Loans Payable - financed assets		220,000			385,000
Related party notes payable, net of debt discount		6,018,000			6,862,000
Convertible notes payable-third parties, net of debt discount		1,440,000			2,338,000
SBA loans		2,414,000			-
Subtotal		29,373,000			25,950,000
Less: Current portion of notes payable, related party notes payable and finance lease obligations		(22,234,000	)		(22,544,000	)
Notes payable, related party notes payable and finance lease obligations, net of current portion	$	7,139,000		$	3,406,000

Schedule of payments for the term note

For the twelve months ending	Amount
December 31, 2020 (remainder of the year)	$	136,000
December 31, 2021		543,000
December 31, 2022		2,759,000
SNB Term Loans payable		3,438,000
Less: debt issuance costs		(52,000	)
Total SNB Term loan payable, net of debt issuance costs		3,386,000
Less: Current portion of SNB term loan payable		3,386,000
Total long-term portion of SNB term loan payable	$	-

Schedule of future minimum loans payments

For the twelve months ending	Amount
December 31, 2020 (remainder of the year)	$	75,000
December 31, 2021		106,000
December 31, 2022		9,000
December 31, 2023		9,000
December 31, 2024		9,000
Thereafter		12,000
Loans Payable - financed assets		220,000
Less: Current portion		179,000
Long-term portion	$	41,000

Schedule of SBA Loans future minimum loan payments

For the twelve months ending	Amount
December 31, 2020 (remainder of the year)	$	133,000
December 31, 2021		1,607,000
December 31, 2022		674,000
Total SBA Loans		2,414,000
Less: Current portion of SBA Loans		1,337,000
Long-term portion of SBA Loans	$	1,077,000

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

9 Months Ended

Sep. 30, 2020

Proceeds as liability amount

Schedule of activity within the liability account

Liabilities related to sale of future proceeds from disposition of subsidiaries - as of December 31, 2019	$	603,000
Non-Cash other income recognized		(302,000	)
Non-Cash interest expense recognized		90,000
Liabilities related to sale of future proceeds from disposition of subsidiary - as of September 30, 2020		391,000
Less: unamortized transaction costs		(3,000	)
Liability related to sale of future proceeds from disposition of subsidiary, net	$	388,000

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of operating segments

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
COMPLEX MACHINING
Net Sales	$	12,423,000		$	12,283,000		$	31,795,000		$	36,402,000
Gross Profit		1,735,000			2,762,000			4,584,000			7,070,000
Pre Tax Income from continuing operations		912,000			2,003,000			2,072,000			4,797,000
Assets		52,963,000			45,033,000			52,963,000			45,033,000

TURBINE ENGINE COMPONENTS
Net Sales		1,239,000			1,714,000			3,808,000			4,841,000
Gross Profit (Loss)		(79,000	)		201,000			(133,000	)		358,000
Pre Tax Loss from continuing operations		(251,000	)		(11,000	)		(594,000	)		(292,000	)
Assets		3,941,000			5,122,000			3,941,000			5,122,000

CORPORATE
Net Sales		-			-			-			-
Gross Profit		-			-			-			-
Pre Tax Loss from continuing operations		(1,138,000	)		(1,572,000	)		(3,895,000	)		(5,815,000	)
Assets		1,860,000			596,000			1,860,000			596,000

CONSOLIDATED
Net Sales		13,662,000			13,997,000			35,603,000			41,243,000
Gross Profit		1,656,000			2,963,000			4,451,000			7,428,000
Pretax net income (loss) from continuing operations		(477,000	)		420,000			(2,417,000	)		(1,310,000	)
Provision for (benefit from) Income Taxes		-			22,000			(1,414,000	)		22,000
Loss from Discontinued Operations, net of taxes		-			(211,000	)		-			(139,000	)
Net Income (Loss)		(477,000	)		187,000			(1,003,000	)		(1,471,000	)
Assets	$	58,764,000		$	50,751,000		$	58,764,000		$	50,751,000

Formation and Basis of Presentation (Details) - USD ($)	1 Months Ended	9 Months Ended
Formation and Basis of Presentation (Details) - USD ($)	May 31, 2020	Sep. 30, 2020
Formation and Basis of Presentation (Textual)
Government subsidized loans, description	AIM, NTW and Sterling (each a "Borrower") entered into government subsidized loans with Sterling National Bank ("SNB") as the lender in an aggregate principal amount of approximately $2.4 million ("SBA Loans"). Each SBA Loan is evidenced by a promissory note. At least 60% of the proceeds of each Loan must be used for payroll and payroll-related costs, in accordance with the applicable provisions of the federal statute authorizing the loan program administered by the SBA and the rules promulgated thereunder (the "Loan Program").
Net operating loss carryback		$ 1,416,000
Deferred liabilities other		$ 429,000
Deferred amounts, description		These deferred amounts must be repaid 50% on December 31, 2021 with the remaining 50% on December 31, 2022.

- Definition

Identification of the lender and information about a contractual promise to repay a short-term or long-term obligation, which includes borrowings under lines of credit, notes payable, commercial paper, bonds payable, debentures, and other contractual obligations for payment. This may include rationale for entering into the arrangement, significant terms of the arrangement, which may include amount, repayment terms, priority, collateral required, debt covenants, borrowing capacity, call features, participation rights, conversion provisions, sinking-fund requirements, voting rights, basis for conversion if convertible and remarketing provisions. The description may be provided for individual debt instruments, rational groupings of debt instruments, or by debt in total.

+ References + Details

Discontinued Operations (Details) - USD ($)	3 Months Ended	9 Months Ended
Discontinued Operations (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Net revenue		$ 132,000
Cost of goods sold		105,000
Gross profit		27,000
Operating expenses:
Selling, general and administrative	100,000	155,000
Loss from operations	(100,000)	(128,000)
Interest expense		(1,000)
Other expense	(111,000)	(10,000)
Loss from discontinued operations before income taxes	(211,000)	(139,000)
Provision for income taxes
Loss from discontinued operations, net of income tax	$ (211,000)	$ (139,000)

Discontinued Operations (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
Discontinued Operations (Details Textual) - USD ($)	Sep. 30, 2019	Sep. 30, 2019
Discontinued Operations (Textual)
Depreciation and amortization	$ 0	$ 6,000

Summary of Significant Accounting Policies (Details)

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Dec. 31, 2019

Total Sales [Member] | Customer one [Member]

Percentage of Sales

25.80%

35.00%

32.10%

31.10%

Total Sales [Member] | Customer two [Member]

Percentage of Sales

23.20%

26.70%

28.20%

31.00%

Total Sales [Member] | Customer three [Member]

Percentage of Sales

21.60%

^[1]

13.90%

^[2]

Total Sales [Member] | Customer four [Member]

Percentage of Sales

^[2]

11.30%

Accounts receivable [Member] | Customer one [Member]

Percentage of Sales

34.60%

32.70%

Accounts receivable [Member] | Customer two [Member]

Percentage of Sales

29.00%

10.00%

Accounts receivable [Member] | Customer three [Member]

Percentage of Sales

^[3]

25.10%

[1]	Customer was less than 10% of sales for the three months ended September 30, 2019.
[2]	Customer was less than 10% of sales for the nine months ended September 30, 2020 and 2019.
[3]	Customer was less than 10% of accounts receivable sales at September 30, 2020.

Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Income (loss) from continuing operations	$ (477,000)	$ 398,000	$ (1,003,000)	$ (1,332,000)
Add: Convertible Note Interest for Potential Note Conversion		120,000
Income (loss) used to calculate earnings per share	$ (477,000)	$ 518,000	$ (1,003,000)	$ (1,332,000)

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Summary of Significant Accounting Policies (Details 2) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Weighted average shares outstanding used to compute basic earnings per share	30,620,990	28,909,072	30,524,874	28,774,041
Effect of dilutive stock options and warrants		131,458
Effect of dilutive convertible notes payable		6,005,485
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share	30,620,990	35,046,015	30,524,874	28,774,041

Summary of Significant Accounting Policies (Details 3) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Securitied excluded from calculation due to exercise price in excess of average market share	1,586,000	3,035,000	1,586,000	3,035,000
Antidilutive securities excluded from computation of earnings per share, amount	7,548,000		7,548,000	6,505,000
Warrants [Member]
Securitied excluded from calculation due to exercise price in excess of average market share	1,423,000	2,183,000	1,423,000	2,183,000
Antidilutive securities excluded from computation of earnings per share, amount	760,000		760,000
Stock Options [Member]
Securitied excluded from calculation due to exercise price in excess of average market share	163,000	852,000	163,000	852,000
Antidilutive securities excluded from computation of earnings per share, amount	1,696,000		1,696,000	500,000
Convertible Notes Payable, Third Parties [Member]
Antidilutive securities excluded from computation of earnings per share, amount	5,092,000		5,092,000	6,005,000

Summary of Significant Accounting Policies (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($) Customer / Customers	Sep. 30, 2019 USD ($) Customer / Customers	Sep. 30, 2020 USD ($) Customer / Customers	Sep. 30, 2019 USD ($) Customer / Customers	Dec. 31, 2019 USD ($) Customer / Customers
Summary of Significant Accounting Policies (Textual)
Stock-based compensation	$ 52,000	$ 25,000	$ 266,000	$ 351,000
Goodwill	163,000		163,000		$ 163,000
Fair value exceeds the carrying value	163,000		163,000
Director [Member]
Summary of Significant Accounting Policies (Textual)
Stock-based compensation	$ 58,000	$ 56,000	$ 159,000	$ 187,000
Accounts receivable [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers \| Customer / Customers					3
Concentration risks			63.60%		67.80%
Credit and concentration risks, description			Customer was less than 10% of accounts receivable sales at September 30, 2020.
Total Sales [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers \| Customer / Customers	3	2	3	3
Concentration risks	70.60%	61.70%	74.20%	73.40%
Credit and concentration risks, description		Customer was less than 10% of sales for the three months ended September 30, 2019.	Customer was less than 10% of sales for the nine months ended September 30, 2020 and 2019.
NTW [Member]
Summary of Significant Accounting Policies (Textual)
Goodwill	$ 163,000		$ 163,000		$ 163,000

Property and Equipment (Details) - USD ($)	9 Months Ended
Property and Equipment (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Total Property and Equipment	$ 36,373,000	$ 33,139,000
Less: Accumulated Depreciation	(27,466,000)	(25,561,000)
Property and Equipment, net	8,907,000	7,578,000
Land [Member]
Total Property and Equipment	300,000	300,000
Buildings and Improvements [Member]
Total Property and Equipment	$ 1,650,000	1,650,000
Property and Equipment, Useful Life	31 years 6 months
Machinery and Equipment [Member]
Total Property and Equipment	$ 14,861,000	12,251,000
Machinery and Equipment [Member] \| Minimum [Member]
Property and Equipment, Useful Life	5 years
Machinery and Equipment [Member] \| Maximum [Member]
Property and Equipment, Useful Life	8 years
Finance Lease Machinery and Equipment [Member]
Total Property and Equipment	$ 6,546,000	6,495,000
Tools and Instruments [Member]
Total Property and Equipment	$ 11,612,000	11,021,000
Tools and Instruments [Member] \| Minimum [Member]
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	$ 148,000	177,000
Property and Equipment, Useful Life	5 years
Furniture and Fixtures [Member]
Total Property and Equipment	$ 290,000	290,000
Furniture and Fixtures [Member] \| Minimum [Member]
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	$ 530,000	530,000
Property and Equipment, Useful Life, description	Term of Lease
Computers and Software [Member]
Total Property and Equipment	$ 436,000	$ 425,000
Computers and Software [Member] \| Minimum [Member]
Property and Equipment, Useful Life	4 years
Computers and Software [Member] \| Maximum [Member]
Property and Equipment, Useful Life	6 years
Finance Lease Machinery and Equipment [Member] \| Minimum [Member]
Property and Equipment, Useful Life	5 years
Finance Lease Machinery and Equipment [Member] \| Maximum [Member]
Property and Equipment, Useful Life	8 years

Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment (Details Textual) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property and Equipment (Textual)
Depreciation expense	$ 576,000	$ 712,000	$ 1,920,000	$ 2,085,000
Accumulated depreciation	$ 6,359,000		$ 6,359,000		$ 5,936,000

Leases (Details)	Sep. 30, 2020
Leases [Abstract]
Weighted Average Remaining Lease Term - in years	5 years 9 months 7 days
Weighted Average discount rate - %	8.88%

Leases (Details 1) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
For the twelve months ended December 31,
Total long term portion of operating lease maturities	$ 4,100,000	$ 4,235,000
Operating lease payments [Member]
For the twelve months ended December 31,
December 31, 2020 (remaining three months)	271,000
December 31, 2021	1,080,000
December 31, 2022	1,007,000
December 31, 2023	1,038,000
December 31, 2024	1,070,000
Thereafter	1,722,000
Total future minimum lease payments	6,188,000
Less: discount	(1,394,000)
Total operating lease maturities	4,794,000
Less: current portion of operating lease liabilities	(694,000)
Total long term portion of operating lease maturities	$ 4,100,000

Leases (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Leases (Details Textual) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases (Textual)
Lease agreement, description			The Company entered into a new lease agreement for warehouse space in Bohemia, NY. The new lease term commenced on April 1, 2020 and expires on May 31, 2025. During the first year of the lease, the monthly rent is $10,964 and increases 3% each year thereafter. The final two months are equal installments of $1,746.
Rent expense	$ 280,000	$ 310,000	$ 892,000	$ 936,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details) - Notes payable and finance lease obligations [Member] - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Revolving credit note payable to Sterling National Bank ("SNB")	$ 15,883,000	$ 12,543,000
Term loan, SNB	3,386,000	3,800,000
Finance lease obligations	12,000	22,000
Loans Payable - financed assets	220,000	385,000
Related party notes payable, net of debt discount	6,018,000	6,862,000
Convertible notes payable-third parties, net of debt discount	1,440,000	2,338,000
SBA loans	2,414,000
Subtotal	29,373,000	25,950,000
Less: Current portion of notes payable, related party notes payable and finance lease obligations	(22,234,000)	(22,544,000)
Notes payable, related party notes payable and finance lease obligations, net of current portion	$ 7,139,000	$ 3,406,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details 1) - Term loans [Member]	Sep. 30, 2020 USD ($)
For the twelve months ending
December 31, 2020 (remainder of the year)	$ 136,000
December 31, 2021	543,000
December 31, 2022	2,759,000
SNB Term Loans payable	3,438,000
Less: debt issuance costs	(52,000)
Total SNB Term loan payable, net of debt issuance costs	3,386,000
Less: Current portion of SNB term loan payable	3,386,000
Total long-term portion of SNB term loan payable

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details 2) - Term loans [Member]	Sep. 30, 2020 USD ($)
For the twelve months ending
December 31, 2020 (remainder of the year)	$ 75,000
December 31, 2021	106,000
December 31, 2022	9,000
December 31, 2023	9,000
December 31, 2024	9,000
Thereafter	12,000
Loans Payable - financed assets	220,000
Less: Current portion	179,000
Long-term portion	$ 41,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details 3) - Term loans [Member]	Sep. 30, 2020 USD ($)
For the twelve months ending
December 31, 2020 (remainder of the year)	$ 133,000
December 31, 2021	1,607,000
December 31, 2022	674,000
Total SBA Loans	2,414,000
Less: Current portion of SBA Loans	1,337,000
Long-term portion of SBA Loans	$ 1,077,000

Notes Payable, Related Party Notes Payable and Finance Lease Obligations (Details Textual) - USD ($)				1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 03, 2020	Jun. 26, 2019	Jan. 15, 2019	Jan. 31, 2020	Oct. 21, 2019	May 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	May 31, 2020	Apr. 04, 2018	Mar. 29, 2018
Notes Payable and Capital Lease Obligations (Textual)
Loan and security agreement									The Company entered into the First Amendment to Loan and Security Agreement ("First Amendment"). The terms of the agreement increase the Term Loan to $5,685,000. The repayment terms of the term loan were amended to provide monthly principal installments in the amount of $67,679 beginning on December 1, 2020, with a final payment of any unpaid balance of principal and interest payable on December 30, 2022. Additionally, the date by which certain subordinated third-party notes need to be extended by was changed from September 30, 2020 to November 30, 2020. The Company has paid an amendment fee of $20,000.
Aggregate commission received									4.00%
Related party advances and notes payable, net of debt discounts							$ 6,018,000		$ 6,018,000
Issuance of common stock, shares				419,597
Proceeds from related party debt										$ 500,000
Interest rate							3.00%		3.00%		12.00%
Loan obligation							$ 50,000		$ 50,000		$ 0
Michael Taglich [Member]
Notes Payable and Capital Lease Obligations (Textual)
Advanced from related parties		$ 250,000
Issuance of common stock, shares		37,500
Notes payable percentage		12.00%
Proceeds from related party debt					$ 1,000,000
Michael Taglich [Member] \| Robert [Member]
Notes Payable and Capital Lease Obligations (Textual)
Advanced from related parties													$ 100,000	$ 1,000,000
Robert [Member]
Notes Payable and Capital Lease Obligations (Textual)
Common stock purchased, shares
Common stock purchase price, per share
Issuance of common stock, shares		37,500
Robert and Michael Taglich [Member]
Notes Payable and Capital Lease Obligations (Textual)
Loan facility, description									From November 23, 2016 through March 21, 2017, the Company received gross proceeds of $4,775,000, of which $1,950,000 were received from Robert and Michael Taglich, from the sale of an equal principal amount of its 8% Subordinated Convertible Notes (the "8% Notes"), together with warrants to purchase a total of 383,080 shares of its common stock, in private placement transactions with accredited investors (the "8% Note Offerings"). In connection with the offering of the 8% Notes, the Company issued 8% Notes in the aggregate principal amount of $382,000 to Taglich Brothers, Inc., placement agent for the 8% Note Offerings, in lieu of payment of cash compensation for sales commissions, together with warrants to purchase a total of 180,977 shares of common stock. Payment of the principal and accrued interest on the 8% Notes are junior and subordinate in right of payment to our indebtedness under the SNB Facility.
Interest-bearing, description									Interest on the 8% Notes is payable on the outstanding principal amount thereof at the annual rate of 8%, payable quarterly commencing February 28, 2017, in cash, or at the Company's option, in additional 8% Notes, provided that if accrued interest payable on $1,269,000 principal amount of the 8% Notes issued in December 2016 is paid in additional 8% Notes, interest for that quarterly interest payment shall be calculated at the rate of 12% per annum. Upon the occurrence and continuation of an event of default, interest shall accrue at the rate of 12% per annum.
Interest expense							125,000	$ 265,000	$ 378,000	740,000
Convertible notes payable							6,018,000		6,018,000		$ 6,862,000
Amortization of debt discount							38,000	76,000	189,000	227,000
Unamortized debt discounts							38,000		$ 38,000		226,000
Taglich Brothers, Inc., [Member]
Notes Payable and Capital Lease Obligations (Textual)
Related party notes payable allocated percentage, description									4% of the purchase price of the 7% Notes
Convertible Notes Payable, Third Parties [Member]
Notes Payable and Capital Lease Obligations (Textual)
Interest expense							$ 38,000	63,000	$ 118,000	319,000
Interest rate							8.00%		8.00%
Share price				$ 1.50
Convertible notes payable							$ 1,440,000		$ 1,440,000		2,338,000
Amortization of debt discount							0	3,000	7,000	$ 131,000
Convertible Notes Payable, Third Parties [Member] \| Subsequent Event [Member]
Notes Payable and Capital Lease Obligations (Textual)
Principal amount	$ 1,225,000
Sale of principle convertible note interest rate	8.00%
Debt converted	$ 210,282
Convertible debt, shares issued	1,063,272
Share price	$ 1.35
Notes payable and finance lease obligations [Member]
Notes Payable and Capital Lease Obligations (Textual)
Related party advances and notes payable, net of debt discounts							6,018,000		6,018,000		6,862,000
Unamortized debt discounts							0		0		7,000
Loan obligation							220,000		220,000		$ 385,000
SBA Loans [Member]
Notes Payable and Capital Lease Obligations (Textual)
Principal amount												$ 2,414,000
Revolving credit loan debt to SNB									2,000,000
Interest rate												1.00%
Total debt amount							2,414,000		$ 2,414,000
SNB Bank [Member]
Notes Payable and Capital Lease Obligations (Textual)
Loan facility, description									The terms of the SNB Facility require that, among other things, the Company maintain a specified Fixed Charge Coverage Ratio of 1.25 to 1.00 at the end of each Fiscal Quarter beginning with the Fiscal Quarter ending March 31, 2020.		The Company entered into a new loan facility ("SNB Facility") with Sterling National Bank, ("SNB") expiring on December 30, 2022. The new Loan Facility provides for a $16,000,000 revolving loan ("SNB revolving line of credit") and a term loan ("SNB term loan").
Interest-bearing, description									Under the terms of the SNB Facility, both the SNB revolving line of credit and the SNB term loan will bear an interest rate equal to 30-day LIBOR (with a 1% floor) plus 2.5%. The average interest rate charged during the period ended September 30, 2020 was 3.5%.		The repayment terms of the SNB term loan provide for monthly principal installments in the amount of $45,238, payable on the first business day of each month, beginning on February 1, 2020, with a final payment of any unpaid balance of principal and interest payable on December 30, 2022. In addition, for so long as the SNB term loan remains outstanding, if Excess Cash Flow (as defined) is a positive number for any fiscal year, beginning with the year ending December 31, 2020, the Company shall pay to SNB an amount equal to the lesser of (i) twenty-five percent (25%) of the Excess Cash Flow for such Fiscal Year and (ii) the outstanding principal balance of the term loan. Such payment shall be made to SNB and applied to the outstanding principal balance of the term loan, on or prior to April 15 of the Fiscal Year immediately following such Fiscal Year.
Principal amount							19,269,000		$ 19,269,000		$ 16,343,000
Revolving credit loan debt to SNB									15,883,000		12,543,000
Term loan amount									3,386,000		$ 3,800,000
Interest expense							147,000		$ 420,000
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 SNB.
Principal amount						$ 100,000
Common stock purchased, shares						18,334				15,000
Common stock purchase price, per share										$ 1.01
Common stock warrants to purchase										182,000
Common stock purchase price						$ 100,000
Aggregate principal amount						$ 1,200,000
Subordinated notes maturity date						May 31, 2019				Jun. 30, 2020
Issuance of common stock, shares						214,762				180,000
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)
Aggregate principal amount						$ 100,000
Issuance of common stock, shares						17,857
Two Thousand Nineteen [Member] \| Robert [Member]
Notes Payable and Capital Lease Obligations (Textual)
Placement invested percentage						4.00%
Aggregate principal amount						$ 1,000,000
Issuance of common stock, shares						178,571
Total purchase price						$ 1,000,000
PNC Bank [Member]
Notes Payable and Capital Lease Obligations (Textual)
Principal amount							$ 15,000,000		$ 15,000,000
Interest expense								$ 391,000		$ 954,000
2019 Notes [Member]
Notes Payable and Capital Lease Obligations (Textual)
Notes payable percentage											12.00%
Senior Subordinated Convertible Promissory 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 and are subordinate to the Company's indebtedness under the SNB Facility.
Related party notes payable allocated percentage, description			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.

Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Placement Agency Agreement [Member]
Liabilities related to sale of future proceeds from disposition of subsidiaries - beginning balance			$ 603,000
Non-Cash other income recognized			(302,000)
Non-Cash interest expense recognized	$ 26,000	$ 27,000	90,000	$ 60,000
Liabilities related to sale of future proceeds from disposition of subsidiary - ending balance	$ 391,000		391,000
Less: unamortized transaction costs			(3,000)
Liability related to sale of future proceeds from disposition of subsidiary, net			$ 388,000

Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details Textual) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 15, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Textual)
Sale of subsidiary, description				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"). To the extent the Purchasers exercise their Put Right, the remaining payments from Meyer will be retained by the Company.
Purchase price per annum				2.00%
Proceeds as liability amount			$ 800,000		$ 800,000
Net of transaction costs				$ 3,000
Non-cash other income recognized		$ 91,000	89,000	302,000	198,000
Non-cash interest expense recognized		$ 26,000	$ 27,000	$ 90,000	60,000
Purchase price received					$ 800,000

Stockholders' Equity (Details) - USD ($)		1 Months Ended	3 Months Ended				9 Months Ended
Stockholders' Equity (Details) - USD ($)	Jan. 20, 2020	Jan. 31, 2020	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stockholders' Equity (Textual)
Issuance of common stock, shares		419,597
Issuance of common stock		$ 984,000		$ 984,000		$ 187,000
Costs of sales	$ 145,000
Director [Member]
Stockholders' Equity (Textual)
Common stock issued for directors fees, shares			41,915		57,433		132,812	205,263

Contingencies (Details) - USD ($)	1 Months Ended
Contingencies (Details) - USD ($)	May 31, 2018	Oct. 07, 2019	Sep. 27, 2019	Sep. 03, 2019
Contingencies (Textual)
Damages value	$ 1,000,000
Working capital deficit			$ 4,200,000	$ 4,145,870
Satisfied to delivered escrow fund		$ 619,316	$ 2,000,000

Income Taxes (Details Textual)	Sep. 30, 2020 USD ($)
Income Taxes (Textual)
Net operating loss carryback claim	$ 1,416,000

Segment Reporting (Details) - USD ($)	3 Months Ended		9 Months Ended
Segment Reporting (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Net Sales	$ 13,662,000	$ 13,997,000	$ 35,603,000	$ 41,243,000
Gross Profit (Loss)	1,656,000	2,963,000	4,451,000	7,428,000
Pretax net income (loss) from continuing operations	(477,000)	420,000	(2,417,000)	(1,310,000)
Provision for (benefit from) Income Taxes		22,000	(1,414,000)	22,000
Loss from Discontinued Operations, net of taxes		(211,000)		(139,000)
Net Income (Loss)	(477,000)	187,000	(1,003,000)	(1,471,000)
Assets	58,764,000		58,764,000		$ 51,090,000
COMPLEX MACHINING
Net Sales	12,423,000	12,283,000	31,795,000	36,402,000
Gross Profit (Loss)	1,735,000	2,762,000	4,584,000	7,070,000
Pretax net income (loss) from continuing operations	912,000	2,003,000	2,072,000	4,797,000
Assets	52,963,000	45,033,000	52,963,000	45,033,000
TURBINE ENGINE COMPONENTS
Net Sales	1,239,000	1,714,000	3,808,000	4,841,000
Gross Profit (Loss)	(79,000)	201,000	(133,000)	358,000
Pretax net income (loss) from continuing operations	(251,000)	(11,000)	(594,000)	(292,000)
Assets	3,941,000	5,122,000	3,941,000	5,122,000
CORPORATE
Net Sales
Gross Profit (Loss)
Pretax net income (loss) from continuing operations	(1,138,000)	(1,572,000)	(3,895,000)	(5,815,000)
Assets	1,860,000	596,000	1,860,000	596,000
CONSOLIDATED
Net Sales	13,662,000	13,997,000	35,603,000	41,243,000
Gross Profit (Loss)	1,656,000	2,963,000	4,451,000	7,428,000
Pretax net income (loss) from continuing operations	(477,000)	420,000	(2,417,000)	(1,310,000)
Provision for (benefit from) Income Taxes		22,000	(1,414,000)	22,000
Loss from Discontinued Operations, net of taxes		(211,000)		(139,000)
Net Income (Loss)	(477,000)	187,000	(1,003,000)	(1,471,000)
Assets	$ 58,764,000	$ 50,751,000	$ 58,764,000	$ 50,751,000

Segment Reporting (Details Textual)	9 Months Ended
Segment Reporting (Details Textual)	Sep. 30, 2020 Segments
Segment Reporting (Textual)
Number of reportable segments	2