Air Industries (AIRI) 10-Q 8 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	1-May-14
Document And Entity Information	'	'
Entity Registrant Name	'AIR INDUSTRIES GROUP	'
Entity Central Index Key	'0001009891	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,903,245
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS	'	'
Cash and Cash Equivalents	$687,000	$561,000
Accounts Receivable, Net of Allowance for Doubtful Accounts of $889,000 and $783,000	12,909,000	8,584,000
Inventory	26,816,000	26,222,000
Deferred Tax Asset	1,114,000	1,051,000
Prepaid Expenses and Other Current Assets	422,000	510,000
Total Current Assets	41,948,000	36,928,000
Property and Equipment, net	6,158,000	6,523,000
Capitalized Engineering Costs - net of Accumulated Amortization of $3,993,000 and $3,879,000	692,000	752,000
Deferred Financing Costs, net, deposit and other assets	638,000	605,000
Intangible Assets, net	4,435,000	4,726,000
Deferred Tax Asset	230,000	185,000
Goodwill	453,000	453,000
TOTAL ASSETS	54,554,000	50,172,000
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Notes Payable and Capitalized Lease Obligations - Current Portion	17,735,000	14,969,000
Accounts Payable and Accrued Expenses	7,560,000	6,855,000
Lease Impairment - Current	68,000	71,000
Deferred Gain on Sale - Current Portion	38,000	38,000
Customer Deposit	254,000	251,000
Dividends Payable	880,000	717,000
Income Taxes Payable	2,112,000	1,496,000
Total Current Liabilities	28,647,000	24,397,000
Notes Payable and Capitalized Lease Obligation - Net of Current Portion	3,219,000	2,527,000
Lease Impairment - Net of Current Portion	40,000	56,000
Deferred Gain on Sale - Net of Current Portion	437,000	447,000
Deferred Rent	1,151,000	1,132,000
TOTAL LIABILITIES	33,494,000	28,559,000
Stockholders' Equity	'	'
Preferred Stock Par Value $.001-Authorized 1,000,000 shares at March 31, 2014 and December 31, 2013, respectively, none issued and outstanding at March 31, 2014 and December 31, 2013, respectively	'	'
Common Stock - Par Value $.001- Authorized 25,000,000 shares at March 31, 2014 and December 31, 2013, respectively, 5,863,788 and 5,862,346 Shares Issued and Outstanding as of March 31, 2014 and December 31, 2013, respectively	6,000	6,000
Additional Paid-In Capital	35,905,000	36,799,000
Accumulated Deficit	-14,851,000	-15,192,000
TOTAL STOCKHOLDERS' EQUITY	21,060,000	21,613,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$54,554,000	$50,172,000

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS	'	'
Allowance for Doubtful Accounts	$889,000	$783,000
Accumulated Amortization	$3,993,000	$3,879,000
Stockholders Equity	'	'
Preferred Stock par value	$0.00	$0.00
Preferred Stock Authorized	1,000,000	1,000,000
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Common Stock par value	$0.00	$0.00
Common Stock Authorized	25,000,000	25,000,000
Common Stock Issued	5,863,788	5,862,346
Common Stock Outstanding	5,863,788	5,862,346

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements Of Income	'	'
Net Sales	$15,453,000	$14,325,000
Cost of Sales	11,408,000	10,678,000
Gross Profit	4,045,000	3,647,000
Operating Expenses	2,816,000	2,469,000
Income from Operations	1,229,000	1,178,000
Interest and financing costs	-303,000	-385,000
Other (expense) income, net	-1,000	-25,000
Income before provision for income taxes	925,000	768,000
Provision for income taxes	584,000	489,000
Net Income	$341,000	$279,000
Income per share - basic	$0.06	$0.05
Income per share - diluted	$0.06	$0.05
Weighted average shares outstanding - basic	5,863,564	5,711,093
Weighted average shares outstanding - diluted	6,125,909	5,809,572

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net Income	$341,000	$279,000
Adjustments to Reconcile Net Income to Net Cash (used in) provided by Operating Activities	'	'
Depreciation of property and equipment	552,000	403,000
Amortization of intangible assets	291,000	291,000
Amortization of capitalized engineering costs	114,000	101,000
Bad debt expense	93,000	27,000
Non-cash compensation expense	3,000	'
Amortization of deferred financing costs	18,000	15,000
Gain on sale of real estate	-10,000	-10,000
Deferred Income Taxes	-108,000	'
(Increase) Decrease in Operating Assets:	'	'
Accounts Receivable	-4,418,000	2,095,000
Inventory	-594,000	-725,000
Prepaid Expenses and Other Current Assets	89,000	126,000
Deposits	-1,000	130,000
Other Assets	-51,000	-100,000
Increase (Decrease) in Operating Liabilities:	'	'
Accounts payable and accrued expenses	705,000	213,000
Deferred Rent	19,000	19,000
Income Taxes payable	616,000	493,000
Customer Deposits	3,000	'
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	-2,338,000	3,357,000
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Capitalized engineering costs	-54,000	-107,000
Purchase of property and equipment	-187,000	-45,000
NET CASH USED IN INVESTING ACTIVITIES	-241,000	-152,000
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Notes payable - Sellers	-168,000	-157,000
Capital lease obligations	-108,000	-185,000
Notes payable - Revolver	4,183,000	-1,914,000
Payments of notes payable - Term Loan	-450,000	-450,000
Payments related to Lease Impairment	-19,000	-23,000
Dividends Paid	-733,000	'
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	2,705,000	-2,729,000
NET INCREASE IN CASH AND CASH EQUIVALENTS	126,000	476,000
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	561,000	490,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	687,000	966,000
Supplemental cash flow information	'	'
Cash paid during the year for interest	251,000	381,000
Cash paid during the period for income taxes	86,000	'
Supplemental schedule of non-cash investing and financing activities	'	'
Dividends payable	$880,000	$358,000

FORMATION_AND_BASIS_OF_PRESENT

FORMATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
Formation And Basis Of Presentation	'
Note 1. FORMATION AND BASIS OF PRESENTATION	'
	Note 1. FORMATION AND BASIS OF PRESENTATION
	Organization
	On August 30, 2013, Air Industries Group, Inc. (“Air Industries Delaware”) changed its state of incorporation from Delaware to Nevada as a result of a merger with and into its wholly-owned subsidiary, Air Industries Group, a Nevada corporation (“Air Industries Nevada” or “AIRI”) and the surviving entity, pursuant to an Agreement and Plan of Merger. The reincorporation was approved by the stockholders of Air Industries Delaware at its 2013 Annual Meeting of Stockholders. Air Industries Nevada is deemed to be the successor.
	The accompanying condensed consolidated financial statements presented are those of AIRI, and its wholly-owned subsidiaries; Air Industries Machining Corporation (“AIM”), Welding Metallurgy, Inc. ("WMI" or “Welding”), Miller Stuart, Inc. (“Miller Stuart”), a wholly-owned subsidiary of WMI and Nassau Tool Works, Inc. (“NTW”) (together, the “Company”).
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission.

ACQUISITION

ACQUISITION	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
Note 2. ACQUISITION	'
	Note 2. ACQUISITION
	On April 1, 2014, the Company acquired, through its wholly-owned subsidiary Welding, all of the common stock of Woodbine Products, Inc. (“Woodbine”) for $2.4 million and 30,000 shares of the common stock of AIRI, valued at $9.68 per share, which was the closing share price on April 1, 2014. Additionally, a working capital adjustment is to be calculated within 60 days of closing and is payable to the appropriate party within 10 days of such calculation. Woodbine is a long established manufacturer of aerospace components whose customers include major aircraft component suppliers. Woodbine specializes in welded and brazed chassis structures housing electronics in aircraft. Woodbine’s products and customers are very complementary to those of Decimal Industries, Inc., which was acquired in July 2013.
	The acquisition of Woodbine will be accounted for under FASB ASC 805, “Business Combinations.” The purchase price allocation has not yet been completed.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Policies	'
Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Principal Business Activity
	The Company through AIM is primarily engaged in manufacturing aircraft structural parts, and assemblies for prime defense contractors in the aerospace industry in the United States. Welding is a specialty welding and products provider whose significant customers include the world's largest aircraft manufacturers, subcontractors, and original equipment manufacturers. NTW is a manufacturer of aerospace components, principally landing gear for F-16 and F-18 fighter aircraft. The Company's customers consist mainly of publicly- traded companies in the aerospace industry.
	Inventory Valuation
	Inventory at March 31, 2014 and 2013 was computed based on a “gross profit” method.
	The Company valued inventory at December 31, 2013 at the lower of cost on a first-in-first-out basis or market.
	Credit and Concentration Risks
	There were two customers that represented 54.5% and three customers that represented 59.3% of total sales for the three months ended March 31, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014		2013
			(Unaudited)		(Unaudited)
	1		32.3		25.8
	2		22.2		**
	3		*		18.3
	4		*		15.2
	* Customer was less than 10% of sales for the
	quarter ended March 31, 2014
	** Customer was less than 10% of sales for the
	quarter ended March 31, 2013
	There were two customers that represented 42.9% of gross accounts receivable at both March 31, 2014 and December 31, 2013. This is set forth in the table below.
	Customer		Percentage of Receivables
			March		December
			2014		2013
			(Unaudited)
	1		25.1		**
	2		17.8		22.8
	3		*		20.1
	* Customer was less than 10% of Gross Accounts Receivable at
	31-Mar-14
	** Customer was less than 10% of Gross Accounts Receivable at
	31-Dec-13
	The Company has occasionally maintained balances in its bank accounts that were in excess of the FDIC limit. The Company has not experienced any losses on these accounts.
	AIM has several sole-source suppliers of various parts that are used in one or more of its products. If any of these sole source suppliers were to go out of business or be unable to provide it parts for any reason, AIM would be required to develop new suppliers or to re-engineer its products, or both, which could delay shipment of products and have a material adverse effect on its operating results.
	Earnings per share
	Basic earnings per share is computed by dividing the net income applicable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Potentially dilutive shares, using the treasury stock method, are included in the diluted per-share calculation for all periods when the effect of their inclusion is dilutive.
	The following is a reconciliation of the denominators of basic and diluted earnings per share computations:
		March 31,	March 31,
		2014	2013
		(Unaudited)	(Unaudited)
	Weighted average shares outstanding used to compute	5,863,564	5,711,093
	basic earning per share
	Effect of dilutive stock options and warrants	262,345	98,479
	Weighted average shares outstanding and dilutive	6,125,909	5,809,572
	securities used to compute dilutive earnings per share
	The following securities have been excluded from the calculation as their effect would be anti-dilutive:
			March 31,	March 31,
			2014	2013
			(Unaudited)	(Unaudited)
	Stock Options		17,048	12,548
	Warrants		-	250
			17,048	12,798
	Stock-Based Compensation
	The Company accounts for stock-based compensation in accordance with FASB ASC 718, "Compensation – Stock Compensation." Under the fair value recognition provision of the ASC, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options and warrants granted using the Black-Scholes-Merton option pricing model. Stock-based compensation amounted to $3,000 and $0 for the three months ending March 31, 2014 and 2013, respectively, and was included in operating expenses on the accompanying Condensed Consolidated Statement of Income.
	Goodwill
	Goodwill represents the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. The goodwill amount of $453,000 relates to the acquisition of WMI ($291,000) and NTW acquisition ($162,000). Goodwill is not amortized, but is tested at least annually for impairment, or if circumstances occur that more likely than not will reduce the fair value of the reporting unit below its carrying amount.
	The Company has determined that there has been no impairment of goodwill at March 31, 2014 and December 31, 2013.
	Recently Issued Accounting Pronouncements
	Effective January 1, 2014, the Company adopted Accounting Standards Update No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). ASU 2013-11 is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This guidance is effective prospectively for the Company for annual and interim periods beginning January 1, 2014. The adoption of ASU 2013-11 did not have a material effect on the Company's financial position, results of operations or cash flows.
	In January 2014, the FASB issued Accounting Standards Update No. 2014-02, "Intangibles – Goodwill and Other (Topic 350): Accounting for Goodwill (a consensus of the Private Company Council)" (ASU 2014-02). ASU 2014-02 allows an accounting alternative for the subsequent measurement of goodwill. An entity within the scope of the amendment that elects the accounting alternative in ASU 2014-02 should amortize goodwill on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. As the Company is a public company, this standard does not apply.
	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 financial statements.
	Subsequent Events
	Management has evaluated subsequent events through the date of this filing.

ACCOUNTS_RECEIVABLE

ACCOUNTS RECEIVABLE	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
Note 4. ACCOUNTS RECEIVABLE	'
	Note 4. ACCOUNTS RECEIVABLE
	The components of accounts receivable are detailed as follows:
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Accounts Receivable Gross	$ 13,798,000	$ 9,367,000
	Allowance for Doubtful Accounts	(889,000)	(783,000)
	Accounts Receivable Net	$ 12,909,000	$ 8,584,000

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2014
Property And Equipment	'
Note 5. PROPERTY AND EQUIPMENT	'
	Note 5. PROPERTY AND EQUIPMENT
	The components of property and equipment at March 31, 2014 and December 31, 2013 consisted of the following:
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Machinery and Equipment	$     6,360,000	$     6,251,000	5 - 8 years
	Capital Lease Machinery and Equipment	5,261,000	5,261,000	5 - 8 years
	Tools and Instruments	5,083,000	5,009,000	1.5 - 7 years
	Automotive Equipment	59,000	59,000	5 years
	Furniture and Fixtures	257,000	257,000	5 - 8 years
	Leasehold Improvements	646,000	646,000	Term of Lease
	Computers and Software	361,000	357,000	4-6 years
	Total Property and Equipment	18,027,000	17,840,000
	Less: Accumulated Depreciation	(11,869,000)	(11,317,000)
	Property and Equipment, net	$     6,158,000	$     6,523,000
	Depreciation expense for the three months ended March 31, 2014 and 2013 was approximately $552,000 and $403,000, respectively.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2014
Intangible Assets	'
Note 6. INTANGIBLE ASSETS	'
	Note 6. INTANGIBLE ASSETS
	The components of intangible assets consisted of the following:
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Customer Relationships	$   5,815,000	$   5,815,000	5 to 14 years
	Trade Names	770,000	770,000	20 years
	Technical Know-how	660,000	660,000	10 years
	Non-Compete	50,000	50,000	5 years
	Professional Certifications	15,000	15,000	.25 to 2 years
	Total Intangible Assets	7,310,000	7,310,000
	Less: Accumulated Amortization	(2,875,000)	(2,584,000)
	Intangible Assets, net	$   4,435,000	$   4,726,000
	Amortization expense for the three months ended March 31, 2014 and 2013 was approximately $291,000 and $291,000, respectively.

NOTES_PAYABLE_AND_CAPITAL_LEAS

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS	3 Months Ended
	Mar. 31, 2014
Notes Payable And Capital Lease Obligations	'
Note 7. NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS	'
	Note 7. NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS
	Notes payable and capital lease obligations consist of the following:
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Revolving credit note payable to PNC Bank N.A. (“PNC”)	$   16,213,000	$   12,029,000
	Term loan, PNC	1,498,000	1,948,000
	Capital lease obligations	1,680,000	1,787,000
	Notes payable to sellers of WMI	563,000	732,000
	Junior subordinated notes	1,000,000	1,000,000
	Subtotal	20,954,000	17,496,000
	Less: Current portion of notes and capital obligations	(17,735,000)	(14,969,000)
	Notes payable and capital lease obligations, net of current portion	$     3,219,000	$     2,527,000
	PNC Bank N.A. ("PNC")
	The Company has a credit facility with PNC (the "Loan Facility") secured by substantially all of its assets. The Loan Facility has been amended many times during its term. The Loan Facility provided for maximum borrowings of $22,000,000 consisting of the following:
		(i)	a $20,000,000 revolving loan (includes inventory sub-limit of $12,500,000) and
		(ii)	a $1,948,000 term loan.
	On April 1, 2014, the Loan Facility was amended and the Company paid a loan amendment fee of $15,000. These amendments added Woodbine as a borrower on the Loan Facility and increased the maximum borrowings to $22,676,000 less repayments of the Term Loan made on or after the closing date. The maximum borrowings consist of the following:
		(i)	a $20,000,000 revolving loan (includes inventory sub-limit of $12,500,000) and
		(ii)	a $2,676,000 term loan.
	Under the terms of the Loan Facility the revolving credit note now bears interest at (a) the sum of the Alternate Base Rate plus three quarters of one percent (0.75%) with respect to Domestic Rate Loans and (b) the sum of the Eurodollar Rate plus two and one half of one percent (2.50%) with respect of Eurodollar Rate Loans. Prior to the amendment the revolving credit note bore interest at (a) the sum of the Alternate Base Rate plus three quarters of one percent (0.75%) with respect to Domestic Rate Loans and (b) the sum of the Eurodollar rate plus two and three quarters of one percent (2.75%) with respect to Eurodollar Rate Loans. The revolving credit note had an interest rate of 4.0 % per annum at both March 31, 2014 and December 31, 2013, and an outstanding balance of $16,213,000 and $12,029,000, respectively. The maturity date of the revolving credit note is November 30, 2016.
	Each day, the Company's cash collections are swept directly by the bank to reduce the revolving loan and the Company then borrows according to a borrowing base. As such, the Company generally has no cash on hand. Because the revolving loan contains a subjective acceleration clause which could permit PNC to require repayment prior to maturity, the loans are classified with the current portion of notes and capital lease obligations.
	Under the terms of the Loan Facility, the maturity date of the term loan was the first business day (as defined) of January 2015. The term loan bears interest equal to (a) the sum of the Alternate Base Rate plus one and three quarters of one percent (1.75%) with respect to Domestic Rate Loans or (b) the sum of the Eurodollar Rate plus three percent (3.00%) with respect to Eurodollar Rate Loans. Repayment under the term loan consisted of 19 consecutive monthly principal installments, the first 18 of which were $150,000 commencing on the first business day of July 2013, with the 19th and final payment of any unpaid balance of principal and interest payable on the first business day of January 2015. Additionally, upon a request from PNC no later than the last day of any applicable fiscal quarter, there is a prepayment equal to 50% of Excess Cash Flow (as defined) for each fiscal quarter commencing with the fiscal quarter ended June 30, 2013 (formerly September 30, 2012), payable upon the delivery of the financial statements for such fiscal period to PNC, but no later than 45 days after the end of the fiscal quarter. PNC did not make such a request for the quarter ended March 31, 2014, At March 31, 2014 and December 31, 2013, the balance due under the term loan was $1,498,000 and $1,948,000, respectively.
	On April 1, 2014, the Company borrowed an additional $1,328,000. The repayment of the Term Loan was also amended on that date to thirty-two consecutive monthly principal installments, the first thirty-one of which shall be in the amount of $31,859 commencing on the first business day of May 2014, and continuing on the first business day of each month thereafter, with a thirty-second and final payment of any unpaid balance of principal and interest on the last business day of November 2016.
	To the extent that the Company disposes of collateral used to secure the Loan Facility, other than inventory, the Company must promptly repay the draws on the credit facility in an amount equal to the net proceeds of such sale.
	The terms of the Loan Facility require that, among other things, the Company maintain a specified Fixed Charge Coverage Ratio. In addition, the Company is limited in the amount of Capital Expenditures it can make. The Company is also limited to the amount of Dividends it can pay its shareholders as defined in the Loan Facility. As of both March 31, 2014 and December 31, 2013, the Company was in compliance with all terms of the Loan Facility.
	The Company's receivables are payable directly into a lockbox controlled by PNC (subject to the terms of the Loan Facility). PNC may use some elements of subjective business judgment in determining whether a material adverse change has occurred in the Company's condition, results of operations, assets, business, properties or prospects allowing it to demand repayment of the Loan Facility.
	As of March 31, 2014 the future minimum principal payments for the term loan as amended are as follows:
	For the twelve months ending	Amount
	31-Mar-15	$    501,000
	31-Mar-16	382,000
	31-Mar-17	615,000
	PNC Term Loan Payable	1,498,000
	Less: Current portion	(501,000)
	Long-term portion	$    997,000
	Interest expense related to the Loan Facilities amounted to approximately $186,000 and $268,000 for the three months ended March 31, 2014 and 2013, respectively.
	Capital Leases Payable – Equipment
	The Company is committed under several capital leases for manufacturing and computer equipment. All leases have bargain purchase options exercisable at the termination of each lease. Capital lease obligations totaled $1,680,000 and $1,787,000 as of March 31, 2014 and December 31, 2013, respectively, with various interest rates ranging from 7.0% to 9.5%.
	As of March 31, 2014, the aggregate future minimum lease payments, including imputed interest, with remaining terms of greater than one year are as follows:
	For the twelve months ending	Amount
	31-Mar-15	$      570,000
	31-Mar-16	570,000
	31-Mar-17	414,000
	31-Mar-18	268,000
	31-Mar-19	101,000
	Total future minimum lease payments	1,923,000
	Less: Imputed Interest	(243,000)
	Less: Current Portion	(458,000)
	Total Long-Term Portion	$   1,222,000
	Notes Payable – Sellers of WMI
	As of March 31, 2014 and December 31, 2013, the balance owed to the sellers of WMI is:
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Former Welding Stockholders	$     563,000	$    732,000
	Less: Current Portion	(563,000)	(691,000)
	Total Long-Term Portion	$                 -	$      41,000
	In connection with the acquisition of WMI on August 24, 2007, the Company incurred a note payable (“Note”) to the former stockholders of WMI. The obligation under the Note is subordinate to the Company’s indebtedness to PNC.
	The Note and payment terms have been adjusted and/or amended several times. On October 1, 2010, the Company entered into a letter agreement with the former stockholders of WMI making the new balance of the note $2,397,967. Payments on the note began on October 1, 2010. It was further agreed that payments would be made according to the following schedule: equal monthly installments of $40,000 on the first business day of each month until December 31, 2011, followed by equal monthly installments of $60,000 on the first business day of each month commencing on January 1, 2012 and continuing until the entire principal amount of the obligation is paid in full, which is estimated to be in January 2015. Interest shall accrue at the rate of 7% per annum, and each payment will first apply to interest and then to principal. At March 31, 2014 and December 31, 2013, the balance owed under the note was $563,000 and $732,000, respectively.
	As of March 31, 2014, the future minimum payments for the note payable to the former stockholders of WMI are as follows:
	For the twelve months ending	Amount
	31-Mar-15	$    563,000
	Former WMI Stockholders Notes Payable	563,000
Less: Current portion	(563,000)
Long-term portion	$               -
Interest expense related to notes payable to the former stockholders of WMI was $12,000 and $23,000 for the three months ended March 31, 2014 and 2013, respectively.
Junior Subordinated Notes
In 2008 and 2009, the Company sold in a series of private placements to accredited investors $5,990,000 of principal amount in Junior Subordinated Notes. The notes bear interest at the rate of 1% per month (or 12% per annum).
In connection with the offering of the Company's Junior Subordinated Notes, the Company issued to Taglich Brothers, Inc. ("Taglich Brothers"), as placement agent, a Junior Subordinated Note in the principal amount of $510,000. The terms of the note issued to Taglich Brothers are identical to the notes. In connection with the amounts raised in 2009, the Company issued to Taglich Brothers a Junior Subordinated Note on the same terms as the Junior Subordinated Notes referred to above for commission of $44,500.
In conjunction with the Private Placement of our common stock to raise money for the NTW Acquisition, the Company solicited the holders of our Junior Subordinated Notes to convert their notes to Common Stock at a price of $6.00 per share. On June 29, 2012, the Company issued 867,461 shares of its Common Stock in exchange for approximately $5,204,000 of its Junior Subordinated Notes. On July 26, 2012, the Company repaid $115,000 of our Junior Subordinated Notes along with the accrued interest thereon of approximately $1,000.
The due dates of the remaining Junior Subordinated Notes were extended from November 18, 2013 to mature on November 30, 2016 and are subordinated to the Company's obligations to PNC.
The balance owed on the Junior Subordinated Notes at March 31, 2014 and December 31, 2013 amounted to $1,000,000.
Interest expense on the Junior Subordinated Notes amounted to $30,000 and $30,000 for the three months ended March 31, 2014 and 2013, respectively.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity	'
Note 8. STOCKHOLDERS' EQUITY	'
	Note 8. STOCKHOLDERS' EQUITY
	Common Stock Issuances
	During the three months ended March 31, 2014, the Company issued 1,442 shares of its common stock pursuant to the cashless exercise of Warrants.
	On October 28, 2013, the Company sold 133,000 shares of its common stock for $7.50 a share for gross proceeds of $997,500. The Company reserves the right to pay Taglich Brothers a placement agent fee in connection with the sale in an amount not to exceed $20,000.
	The Purchase and Sale Agreement contained a provision such that if at any time prior to April 30, 2014, the Company, in a transaction in which it receives gross proceeds in excess of $1,000,000, issues or otherwise sells or distributes shares of its preferred stock, common stock or options, warrants, rights or other securities to purchase or convertible into shares of its preferred stock or common stock, hereinafter, the “New Securities,” (other than compensatory options to purchase no more than 500,000 shares issued to the directors, employees or regularly engaged consultants of the Company) at its option, the buyer may elect to return all, but not less than all, of the shares to the Company and subscribe for the New Securities to be sold or distributed by the Company. In such event, the buyer shall receive the number of New Securities as is equal to the result obtained by dividing the Aggregate Purchase Price by the price per share at which the New Securities are being sold by the Company. No additional shares were issued as a result of these provisions.
	On April 1, 2014, in connection with the acquisition of Woodbine, the Company issued 30,000 shares of its common stock to the former stockholders of Woodbine.
	Dividends
	On March 26, 2014, the Board of Directors approved and the Company announced a quarterly dividend of $0.15 per common share paid on April 22, 2014 to all shareholders of record as of the close of business on April 15, 2014. The approximate amount of the dividend was $880,000.
	Stock Options
	On June 3, 2013, the Board of Directors adopted the Company’s 2013 Equity Incentive Plan (“2013 Plan”). The 2013 plan is virtually identical to and is intended to replace, the Company’s 2010 Equity Incentive Plan. The proposal to approve the 2013 Plan was approved by the affirmative vote of the Company’s stockholders on July 29, 2013.
	Derivative Liability
	In connection with the issuances of equity instruments or debt, the Company may issue options or warrants to purchase common stock. In certain circumstances, these options or warrants may be classified as liabilities, rather than as equity. In addition, the equity instrument or debt may contain embedded derivative instruments, such as conversion options or listing requirements, which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative liability instrument. The Company accounts for derivative liability instruments under the provisions of FASB ASC 815, “Derivatives and Hedging.”
	Down Round Feature
	As discussed above, the Company issued shares of common stock under a Common Stock Purchase Agreement which contained a “down round” feature. Based on an evaluation as discussed in ASC No. 815-5, “Embedded Derivatives” and ASC No. 815-40-15, “Contracts in Entity’s Own Equity - Scope and Scope Exceptions,” the Company determined that the down round feature in the common stock issued was not considered indexed to its own stock because neither the occurrence of a sale of equity securities by the issuer at market nor the issuance of another equity contract with a lower strike price is an input to the fair value of a fixed-for-fixed option or forward on equity shares. As such, the down round feature should be bifurcated from the common stock and accounted for as a derivative liability.
	The Company did not value the derivative liability at October 25, 2013, the date of consummation of the Stock Purchase Agreement. One of the key determinants of the Company’s decision to not value the derivative liability was the high likelihood that a future financing would not occur that would trigger the down round feature. Whether a future equity financing would occur would be determined by the cash needs of the Company and management’s willingness to trigger the down round feature. As of September 30, 2013, the Company was operating profitably and had generated net cash through operations for the trailing nine months of $3,556,000. Further, at such time the Company was not anticipating any material acquisitions or significant capital expenditures that would require the Company to seek additional cash financing. Moreover, although the Company might seek additional capital to complete a new acquisition, it was only likely to seek to complete an acquisition if it was accretive to earnings. If triggering the down round feature would render an acquisition dilutive rather than accretive, it was unlikely that the acquisition would be made until after the down round feature expired.
	Under generally accepted accounting principles, the Company is required to mark-to-market the derivative liability at the end of each reporting period. The Company did not value the derivative liability at March 31, 2014. At such date, the Company determined that it would not issue equity financing prior to April 30, 2014, the expiration date of the down round feature. No additional shares were issued as a result of these provisions.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2014
Income Taxes	'
Note 10. INCOME TAXES	'
	Note 9. INCOME TAXES
	The provision for income taxes as at March 31, are set forth below:
		2014	2013
		(Unaudited)	(Unaudited)
	Current
	Federal	$    536,000	$  376,000
	State	156,000	113,000
	Total Expense	692,000	489,000
	Deferred Tax Benefit	(108,000)	-
	Net Expense for Income Taxes	$    584,000	$  489,000
	The components of net deferred tax assets as of March 31, 2014 and December 31 2013 are set forth below:
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Deferred tax assets:
	Current:
	Bad debts	$         356,000	$        313,000
	Inventory - 263A adjustment	749,000	729,000
	Account payable, accrued expenses and reserves	9,000	9,000
	Total current deferred tax	$     1,114,000	$     1,051,000
	Non- Current
	Capital loss carry forwards	$     1,088,000	$     1,088,000
	Section 1231 loss carry forward	4,000	4,000
	Stock based compensation - options and restricted stock	523,000	521,000
	Capitalized engineering costs	424,000	503,000
	Deferred rent	460,000	453,000
	Amortization - NTW Transaction	472,000	475,000
	Lease Impairment	43,000	51,000
	Deferred gain on sale of real estate	190,000	194,000
	Total deferred tax assets before valuation allowance	3,204,000	3,289,000
	Valuation allowance	-1,092,000	-1,092,000
	Total deferred tax assets after valuation allowance	2,112,000	2,197,000
	Deferred tax liabilities:
	Property and equipment	-1,382,000	-1,497,000
	Goodwill - NTW Transaction	-8,000	-7,000
	Amortization - Welding Transaction	-492,000	-508,000
	Total Deferred Tax Liability	-1,882,000	-2,012,000
	Net deferred tax asset	$     1,344,000	$     1,236,000
	During the year ended December 31, 2013, the Company determined that it no longer needed to provide a valuation allowance on the net deferred tax assets except for the capital loss and section 1231 loss carryforwards. This was based upon the fact that management believes that the realizability of the net deferred tax assets is more likely than not to be realized. The valuation allowance at both March 31, 2014 and December 31, 2013 was $1,092,000.
	The Company has a capital loss carry forward from the sale of Sigma Metals, Inc., the Company’s former subsidiary, of $2,719,000, which will expire in fiscal 2015.

SEGMENT_REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
Note 10. SEGMENT REPORTING	'
	Note 10. SEGMENT REPORTING
	In accordance with FASB ASC 280, “Segment Reporting”, 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 is operating in three segments. AIM manufactures components and subassemblies for the defense and aerospace industry. NTW is a manufacturer of aerospace components, principally landing gear for F-16 and F-18 fighter aircraft. WMI provides specialty welding services and metal fabrications to the defense and commercial aerospace industry. While each of these segments service the same industries and a similar customer base, we evaluate the performance of each segment separately in deciding how to allocate resources and in accessing profitability.
	Beginning on January 1, 2013, the Company began to allocate all of the corporate selling and general and administrative costs of AIRI to each of its three subsidiaries. For both 2014 and 2013, these are allocated 50% to AIM and 25% to each of WMI and NTW.
	Financial information about the Company's operating segments for the three months ended March 31, 2014 and 2013 are as follows:
	Three Months Ended March 31,
			2014	2013
			(Unaudited)	(Unaudited)
	AIM
		Net Sales	$     7,131,000	$     7,478,000
		Gross Profit	1,285,000	1,460,000
		Pre Tax Income	328,000	493,000
		Assets	21,635,000	23,871,000
	WMI
		Net Sales	3,313,000	3,139,000
		Gross Profit	838,000	849,000
		Pre Tax Loss	-331,000	-11,000
		Assets	12,547,000	9,796,000
	NTW
		Net Sales	5,009,000	3,708,000
		Gross Profit	1,922,000	1,338,000
		Pre Tax Income	1,020,000	493,000
		Assets	14,337,000	13,563,000
	Corporate
		Net Sales	-	-
		Gross Profit	-	-
		Pre Tax Loss	-92,000	-207,000
		Assets	8,156,000	12,256,000
	Consolidated
		Net Sales	15,453,000	14,325,000
		Gross Profit	4,045,000	3,647,000
		Pre Tax Income	925,000	768,000
		Provision for Taxes	584,000	489,000
		Net Income	341,000	279,000
		Elimination of Assets	-2,121,000	-8,064,000
		Assets	54,554,000	51,422,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Policies Policies	'
Principal Business Activity	'
	Principal Business Activity
	The Company through AIM is primarily engaged in manufacturing aircraft structural parts, and assemblies for prime defense contractors in the aerospace industry in the United States. Welding is a specialty welding and products provider whose significant customers include the world's largest aircraft manufacturers, subcontractors, and original equipment manufacturers. NTW is a manufacturer of aerospace components, principally landing gear for F-16 and F-18 fighter aircraft. The Company's customers consist mainly of publicly- traded companies in the aerospace industry.
Inventory Valuation	'
	Inventory Valuation
	Inventory at March 31, 2014 and 2013 was computed based on a “gross profit” method.
	The Company valued inventory at December 31, 2013 at the lower of cost on a first-in-first-out basis or market.
Credit and Concentration Risks	'
	Credit and Concentration Risks
	There were two customers that represented 54.5% and three customers that represented 59.3% of total sales for the three months ended March 31, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014		2013
			(Unaudited)		(Unaudited)
	1		32.3		25.8
	2		22.2		**
	3		*		18.3
	4		*		15.2
	* Customer was less than 10% of sales for the
	quarter ended March 31, 2014
	** Customer was less than 10% of sales for the
	quarter ended March 31, 2013
	There were two customers that represented 42.9% of gross accounts receivable at both March 31, 2014 and December 31, 2013. This is set forth in the table below.
	Customer		Percentage of Receivables
			March		December
			2014		2013
			(Unaudited)
	1		25.1		**
	2		17.8		22.8
	3		*		20.1
	* Customer was less than 10% of Gross Accounts Receivable at
	31-Mar-14
	** Customer was less than 10% of Gross Accounts Receivable at
	31-Dec-13
	The Company has occasionally maintained balances in its bank accounts that were in excess of the FDIC limit. The Company has not experienced any losses on these accounts.
	AIM has several sole-source suppliers of various parts that are used in one or more of its products. If any of these sole source suppliers were to go out of business or be unable to provide it parts for any reason, AIM would be required to develop new suppliers or to re-engineer its products, or both, which could delay shipment of products and have a material adverse effect on its operating results.
Earnings per share	'
	Basic earnings per share is computed by dividing the net income applicable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Potentially dilutive shares, using the treasury stock method, are included in the diluted per-share calculation for all periods when the effect of their inclusion is dilutive.
	The following is a reconciliation of the denominators of basic and diluted earnings per share computations:
		March 31,	March 31,
		2014	2013
		(Unaudited)	(Unaudited)
	Weighted average shares outstanding used to compute	5,863,564	5,711,093
	basic earning per share
	Effect of dilutive stock options and warrants	262,345	98,479
	Weighted average shares outstanding and dilutive	6,125,909	5,809,572
	securities used to compute dilutive earnings per share
	The following securities have been excluded from the calculation as their effect would be anti-dilutive:
			March 31,	March 31,
			2014	2013
			(Unaudited)	(Unaudited)
	Stock Options		17,048	12,548
	Warrants		-	250
			17,048	12,798
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 amounted to $3,000 and $0 for the three months ending March 31, 2014 and 2013, respectively, and was included in operating expenses on the accompanying Condensed Consolidated Statement of Income.
Goodwill	'
	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 $453,000 relates to the acquisition of WMI ($291,000) and NTW acquisition ($162,000). Goodwill is not amortized, but is tested at least annually for impairment, or if circumstances occur that more likely than not will reduce the fair value of the reporting unit below its carrying amount.
	The Company has determined that there has been no impairment of goodwill at March 31, 2014 and December 31, 2013.
Recently Issued Accounting Pronouncements	'
	Recently Issued Accounting Pronouncements
	Effective January 1, 2014, the Company adopted Accounting Standards Update No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). ASU 2013-11 is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This guidance is effective prospectively for the Company for annual and interim periods beginning January 1, 2014. The adoption of ASU 2013-11 did not have a material effect on the Company's financial position, results of operations or cash flows.
	In January 2014, the FASB issued Accounting Standards Update No. 2014-02, "Intangibles – Goodwill and Other (Topic 350): Accounting for Goodwill (a consensus of the Private Company Council)" (ASU 2014-02). ASU 2014-02 allows an accounting alternative for the subsequent measurement of goodwill. An entity within the scope of the amendment that elects the accounting alternative in ASU 2014-02 should amortize goodwill on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. As the Company is a public company, this standard does not apply.
	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 financial statements.
Subsequent Events	'
	Subsequent Events
	Management has evaluated subsequent events through the date of this filing.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Policies Tables	'
Credit and Concentration Risks	'
	Customer		Percentage of Sales
			2014		2013
			(Unaudited)		(Unaudited)
	1		32.3		25.8
	2		22.2		**
	3		*		18.3
	4		*		15.2
	* Customer was less than 10% of sales for the
	quarter ended March 31, 2014
	** Customer was less than 10% of sales for the
	quarter ended March 31, 2013
	There were two customers that represented 42.9% of gross accounts receivable at both March 31, 2014 and December 31, 2013. This is set forth in the table below.
	Customer		Percentage of Receivables
			March		December
			2014		2013
			(Unaudited)
	1		25.1		**
	2		17.8		22.8
	3		*		20.1
	* Customer was less than 10% of Gross Accounts Receivable at
	31-Mar-14
	** Customer was less than 10% of Gross Accounts Receivable at
	31-Dec-13
Earnings per share	'
		March 31,	March 31,
		2014	2013
		(Unaudited)	(Unaudited)
	Weighted average shares outstanding used to compute	5,863,564	5,711,093
	basic earning per share
	Effect of dilutive stock options and warrants	262,345	98,479
	Weighted average shares outstanding and dilutive	6,125,909	5,809,572
	securities used to compute dilutive earnings per share
Anti-dilutive Securities	'
			March 31,	March 31,
			2014	2013
			(Unaudited)	(Unaudited)
	Stock Options		17,048	12,548
	Warrants		-	250
			17,048	12,798

ACCOUNTS_RECEIVABLE_Tables

ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
Components of accounts receivable	'
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Accounts Receivable Gross	$ 13,798,000	$ 9,367,000
	Allowance for Doubtful Accounts	(889,000)	(783,000)
	Accounts Receivable Net	$ 12,909,000	$ 8,584,000

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2014
Property And Equipment Tables	'
Property and equipment	'
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Machinery and Equipment	$     6,360,000	$     6,251,000	5 - 8 years
	Capital Lease Machinery and Equipment	5,261,000	5,261,000	5 - 8 years
	Tools and Instruments	5,083,000	5,009,000	1.5 - 7 years
	Automotive Equipment	59,000	59,000	5 years
	Furniture and Fixtures	257,000	257,000	5 - 8 years
	Leasehold Improvements	646,000	646,000	Term of Lease
	Computers and Software	361,000	357,000	4-6 years
	Total Property and Equipment	18,027,000	17,840,000
	Less: Accumulated Depreciation	(11,869,000)	(11,317,000)
	Property and Equipment, net	$     6,158,000	$     6,523,000

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2014
Intangible Assets Tables	'
Intangible assets	'
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Customer Relationships	$   5,815,000	$   5,815,000	5 to 14 years
	Trade Names	770,000	770,000	20 years
	Technical Know-how	660,000	660,000	10 years
	Non-Compete	50,000	50,000	5 years
	Professional Certifications	15,000	15,000	.25 to 2 years
	Total Intangible Assets	7,310,000	7,310,000
	Less: Accumulated Amortization	(2,875,000)	(2,584,000)
	Intangible Assets, net	$   4,435,000	$   4,726,000

NOTES_PAYABLE_AND_CAPITAL_LEAS1

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2014
Notes Payable And Capital Lease Obligations Tables	'
Notes payable and capital lease obligations	'
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Revolving credit note payable to PNC Bank N.A. (“PNC”)	$   16,213,000	$   12,029,000
	Term loan, PNC	1,498,000	1,948,000
	Capital lease obligations	1,680,000	1,787,000
	Notes payable to sellers of WMI	563,000	732,000
	Junior subordinated notes	1,000,000	1,000,000
	Subtotal	20,954,000	17,496,000
	Less: Current portion of notes and capital obligations	(17,735,000)	(14,969,000)
	Notes payable and capital lease obligations, net of current portion	$     3,219,000	$     2,527,000
Future minimum principal payments for term loan	'
	For the twelve months ending	Amount
	31-Mar-15	$    501,000
	31-Mar-16	382,000
	31-Mar-17	615,000
	PNC Term Loan Payable	1,498,000
	Less: Current portion	(501,000)
	Long-term portion	$    997,000
Future minimum lease payments, including imputed interest	'
	For the twelve months ending	Amount
	31-Mar-15	$      570,000
	31-Mar-16	570,000
	31-Mar-17	414,000
	31-Mar-18	268,000
	31-Mar-19	101,000
	Total future minimum lease payments	1,923,000
	Less: Imputed Interest	(243,000)
	Less: Current Portion	(458,000)
	Total Long-Term Portion	$   1,222,000
Notes Payable - Sellers	'
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Former Welding Stockholders	$     563,000	$    732,000
	Less: Current Portion	(563,000)	(691,000)
	Total Long-Term Portion	$                 -	$      41,000
Future minimum payments for the note payable to the former stockholders of Welding	'
	For the twelve months ending	Amount
	31-Mar-15	$    563,000
	Former WMI Stockholders Notes Payable	563,000
	Less: Current portion	(563,000)
	Long-term portion	$               -

INCOME_TAXES_Tables

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2014
Series B Convertible Preferred Stock par Value	'
Provision for income	'
		2014	2013
		(Unaudited)	(Unaudited)
	Current
	Federal	$    536,000	$  376,000
	State	156,000	113,000
	Total Expense	692,000	489,000
	Deferred Tax Benefit	(108,000)	-
	Net Expense for Income Taxes	$    584,000	$  489,000
Deferred tax assets	'
		March 31,	December 31,
		2014	2013
		(Unaudited)
	Deferred tax assets:
	Current:
	Bad debts	$         356,000	$       313,000
	Inventory - 263A adjustment	749,000	729,000
	Account payable, accrued expenses and reserves	9,000	9,000
	Total current deferred tax	$     1,114,000	$     1,051,000
	Non- Current
	Capital loss carry forwards	$     1,088,000	$     1,088,000
	Section 1231 loss carry forward	4,000	4,000
	Stock based compensation - options and restricted stock	523,000	521,000
	Capitalized engineering costs	424,000	503,000
	Deferred rent	460,000	453,000
	Amortization - NTW Transaction	472,000	475,000
	Lease Impairment	43,000	51,000
	Deferred gain on sale of real estate	190,000	194,000
	Total deferred tax assets before valuation allowance	3,204,000	3,289,000
	Valuation allowance	-1,092,000	-1,092,000
	Total deferred tax assets after valuation allowance	2,112,000	2,197,000
	Deferred tax liabilities:
	Property and equipment	-1,382,000	-1,497,000
	Goodwill - NTW Transaction	-8,000	-7,000
	Amortization - Welding Transaction	-492,000	-508,000
	Total Deferred Tax Liability	-1,882,000	-2,012,000
	Net deferred tax asset	$     1,344,000	$     1,236,000

SEGMENT_REPORTING_Tables

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting Tables	'
Operating segments	'
	Three Months Ended March 31,
			2014	2013
			(Unaudited)	(Unaudited)
	AIM
		Net Sales	$     7,131,000	$     7,478,000
		Gross Profit	1,285,000	1,460,000
		Pre Tax Income	328,000	493,000
		Assets	21,635,000	23,871,000
	WMI
		Net Sales	3,313,000	3,139,000
		Gross Profit	838,000	849,000
		Pre Tax Loss	-331,000	-11,000
		Assets	12,547,000	9,796,000
	NTW
		Net Sales	5,009,000	3,708,000
		Gross Profit	1,922,000	1,338,000
		Pre Tax Income	1,020,000	493,000
		Assets	14,337,000	13,563,000
	Corporate
		Net Sales	-	-
		Gross Profit	-	-
		Pre Tax Loss	-92,000	-207,000
		Assets	8,156,000	12,256,000
	Consolidated
		Net Sales	15,453,000	14,325,000
		Gross Profit	4,045,000	3,647,000
		Pre Tax Income	925,000	768,000
		Provision for Taxes	584,000	489,000
		Net Income	341,000	279,000
		Elimination of Assets	-2,121,000	-8,064,000
		Assets	54,554,000	51,422,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Unaudited)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Summary Of Significant Accounting Policies Details	'		'
Customer 1	32.30%		25.80%
Customer 2	22.20%		'	[1]
Customer 3	'	[2]	18.30%
Customer 4	'	[2]	15.20%
[1]	Customer was less than 10% of sales for the quarter ended March 31, 2013
[2]	Customer was less than 10% of sales for the quarter ended March 31, 2014

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Mar. 31, 2014		Dec. 31, 2013
Summary Of Significant Accounting Policies Details 1	'		'
Customer 1	25.10%		'	[1]
Customer 2	17.80%		22.80%
Customer 3	'	[2]	20.10%
[1]	Customer was less than 10% of Gross Accounts Receivable at March 31, 2013
[2]	Customer was less than 10% of Gross Accounts Receivable at March 31, 2014

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (Unaudited)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Summary Of Significant Accounting Policies Details 2	'	'
Weighted average shares outstanding used to compute basic earning per share	5,863,564	5,711,093
Effect of dilutive stock options and warrants	262,345	98,479
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share	6,125,909	5,809,572

SUMMARY_OF_SIGNIFICANT_ACCOUNT6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (Unaudited)	Mar. 31, 2014	Mar. 31, 2013
Summary Of Significant Accounting Policies Details 3	'	'
Stock Options	17,048	12,548
Warrants	'	250
Anti dilutive Securities	17,048	12,798

SUMMARY_OF_SIGNIFICANT_ACCOUNT7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Summary Of Significant Accounting Policies Details Narrative	'	'	'
Customer Sales	54.50%	59.30%	'
Customers gross accounts receivables	42.90%	'	42.90%
Number of Customers represented percentage of total sales	2	3	'
Customers represented percentage of gross accounts receivable	2	2	'
Stock-based compensation	$3,000	$0	'
Impairment of goodwill	$0	'	$0

ACCOUNTS_RECEIVABLE_Details

ACCOUNTS RECEIVABLE (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Receivables [Abstract]	'	'
Accounts Receivable Gross	$13,798,000	$9,367,000
Allowance for Doubtful Accounts	-889,000	-783,000
Accounts Receivable Net	$12,909,000	$8,584,000

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Total Property and Equipment	$18,027,000	$17,840,000
Less: Accumulated Depreciation	-11,869,000	-11,317,000
Property and Equipment, net	6,158,000	6,523,000
Machinery and Equipment	'	'
Total Property and Equipment	6,360,000	6,251,000
Machinery and Equipment | Minimum	'	'
Property Plant And Equipment Useful Life	'5 years	'
Machinery and Equipment | Maximum	'	'
Property Plant And Equipment Useful Life	'8 years	'
Capital Lease Machinery and Equipment	'	'
Total Property and Equipment	5,261,000	5,261,000
Capital Lease Machinery and Equipment | Minimum	'	'
Property Plant And Equipment Useful Life	'5 years	'
Capital Lease Machinery and Equipment | Maximum	'	'
Property Plant And Equipment Useful Life	'8 years	'
Tools and Instruments	'	'
Total Property and Equipment	5,083,000	5,009,000
Tools and Instruments | Minimum	'	'
Property Plant And Equipment Useful Life	'1 year 6 months	'
Tools and Instruments | Maximum	'	'
Property Plant And Equipment Useful Life	'7 years	'
Automotive Equipment	'	'
Total Property and Equipment	59,000	59,000
Property Plant And Equipment Useful Life	'5 years	'
Furniture and Fixtures	'	'
Total Property and Equipment	257,000	257,000
Furniture and Fixtures | Minimum	'	'
Property Plant And Equipment Useful Life	'5 years	'
Furniture and Fixtures | Maximum	'	'
Property Plant And Equipment Useful Life	'8 years	'
Leasehold Improvements	'	'
Total Property and Equipment	646,000	646,000
Computers and Software	'	'
Total Property and Equipment	$361,000	$357,000
Computers and Software | Minimum	'	'
Property Plant And Equipment Useful Life	'4 years	'
Computers and Software | Maximum	'	'
Property Plant And Equipment Useful Life	'6 years	'

PROPERTY_AND_EQUIPMENT_Details1

PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Property, Plant and Equipment [Abstract]	'	'
Depreciation expense	$552,000	$403,000

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Intangible Assets Details	'	'
Customer Relationships	$5,815,000	$5,815,000
Trade Names	770,000	770,000
Technical Know-how	660,000	660,000
Non-Compete	50,000	50,000
Professional Certifications	15,000	15,000
Total Intangible Assets	7,310,000	7,310,000
Less: Accumulated Amortization	-2,875,000	-2,584,000
Intangible Assets, net	$4,435,000	$4,726,000

INTANGIBLE_ASSETS_Details_Narr

INTANGIBLE ASSETS (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Notes to Financial Statements	'	'
Amortization of the intangibles	$291,000	$291,000

NOTES_PAYABLE_AND_CAPITAL_LEAS2

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Notes Payable And Capital Lease Obligations Details	'	'
Revolving credit notes payable to PNC Bank N.A. ("PNC")	$16,213,000	$12,029,000
Term loan, PNC	1,498,000	1,948,000
Capital lease obligations	1,680,000	1,787,000
Notes payable to sellers of WMI	563,000	732,000
Junior subordinated notes	1,000,000	1,000,000
Subtotal	20,954,000	17,496,000
Less: Current portion of notes and capital obligations	-17,735,000	-14,969,000
Notes payable and capital lease obligations, net of current portion	$3,219,000	$2,527,000

NOTES_PAYABLE_AND_CAPITAL_LEAS3

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 1) (USD $)	Mar. 31, 2014
Notes Payable And Capital Lease Obligations Details 1	'
31-Mar-15	$501,000
31-Mar-16	382,000
31-Mar-17	615,000
PNC Term Loan Payable	1,498,000
Less: Current portion	-501,000
Long-term portion	$997,000

NOTES_PAYABLE_AND_CAPITAL_LEAS4

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 2) (USD $)	Mar. 31, 2014
Notes Payable And Capital Lease Obligations Details 2	'
31-Mar-15	$570,000
31-Mar-16	570,000
31-Mar-17	414,000
31-Mar-18	268,000
31-Mar-19	101,000
Total future minimum lease payments	1,923,000
Less: Imputed Interest	-243,000
Less: Current Portion	-458,000
Total Long-Term Portion	$1,222,000

NOTES_PAYABLE_AND_CAPITAL_LEAS5

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 3) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Notes Payable And Capital Lease Obligations Details 3	'	'
Former Welding Stockholders	$563,000	$732,000
Less: Current Portion	-563,000	-691,000
Total Long-Term Portion	'	$41,000

NOTES_PAYABLE_AND_CAPITAL_LEAS6

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 4) (USD $)	Mar. 31, 2014
Future minimum payments for the note payable to the former stockholders of Welding:	'
31-Mar-15	$563,000
Former WMI Stockholders Notes Payable	563,000
Less: Current portion	-563,000
Long-term portion	'

NOTES_PAYABLE_AND_CAPITAL_LEAS7

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Notes to Financial Statements	'	'	'
Revolving loan interest rate	4.00%	'	4.00%
Balance due under term loan	$1,498,000	'	$1,948,000
Interest expense related to credit facilities	186,000	268,000	'
Capital lease obligations	1,680,000	'	1,787,000
Interest rate minimum	7.00%	'	'
Interest rate maximum	9.50%	'	'
Balance owed under note	563,000	'	732,000
Interest expense related to notes payable	12,000	23,000	'
Balance owed amounted to	1,000,000	'	1,000,000
Interest expense amounted to	$30,000	$30,000	'

STOCKHOLDERS_EQUITY_Details_Na

STOCKHOLDERS' EQUITY (Details Narrative)	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity	'
Common stock shares issued	1,442

INCOME_TAXES_Details_Unaudited

INCOME TAXES (Details) (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Current	'	'
Federal	$536,000	$376,000
State	156,000	113,000
Total Expense	692,000	489,000
Deferred Tax Benefit	-108,000	'
Net Expense for Income Taxes	$584,000	$489,000

INCOME_TAXES_Details_1

INCOME TAXES (Details 1) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current:	'	'
Bad debts	$356,000	$313,000
Inventory - 263A adjustment	749,000	729,000
Account payable, accrued expenses and reserves	9,000	9,000
Total current deferred tax	1,114,000	1,051,000
Non- Current:	'	'
Capital loss carry forwards	1,088,000	1,088,000
Section 1231 loss carryover	4,000	4,000
Stock based compensation - options and restricted stock	523,000	521,000
Capitalized engineering costs	424,000	503,000
Deferred rent	460,000	453,000
Amortization - NTW Transaction	472,000	475,000
Lease Impairment	43,000	51,000
Deferred gain on sale of real estate	190,000	194,000
Total deferred tax assets before valuation allowance	3,204,000	3,289,000
Valuation allowance	-1,092,000	-1,092,000
Total deferred tax assets after valuation allowance	2,112,000	2,197,000
Deferred tax liabilities:	'	'
Property and equipment	-1,382,000	-1,497,000
Goodwill - NTW Transaction	-8,000	-7,000
Amortization - Welding Transaction	-492,000	-508,000
Total Deferred Tax Liability	-1,882,000	-2,012,000
Net deferred tax asset	$1,344,000	$1,236,000

INCOME_TAXES_Details_Narrative

INCOME TAXES (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014
			Capital Loss Carry forward
Valuation allowance	$1,092,000	$1,092,000	'
Capital loss carry forward	'	'	$2,719,000
Capital loss carry forward expiry year	'	'	'2015

SEGMENT_REPORTING_Details_Unau

SEGMENT REPORTING (Details) (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Gross Profit	$4,045,000	$3,647,000	'
Provision for Taxes	584,000	489,000	'
Assets	54,554,000	'	50,172,000
AIM	'	'	'
Net Sales	7,131,000	7,478,000	'
Gross Profit	1,285,000	1,460,000	'
Pre Tax Income	328,000	493,000	'
Assets	21,635,000	23,871,000	'
WMI	'	'	'
Net Sales	3,313,000	3,139,000	'
Gross Profit	838,000	849,000	'
Pre Tax Income	-331,000	-11,000	'
Assets	12,547,000	9,796,000	'
NTW	'	'	'
Net Sales	5,009,000	3,708,000	'
Gross Profit	1,922,000	1,338,000	'
Pre Tax Income	1,020,000	493,000	'
Assets	14,337,000	13,563,000	'
Corporate	'	'	'
Net Sales	'	'	'
Gross Profit	'	'	'
Pre Tax Income	-92,000	-207,000	'
Assets	8,156,000	12,256,000	'
Consolidated	'	'	'
Net Sales	15,453,000	14,325,000	'
Gross Profit	4,045,000	3,647,000	'
Pre Tax Income	925,000	768,000	'
Provision for Taxes	584,000	489,000	'
Net Income	341,000	279,000	'
Elimination of Assets	-2,121,000	-8,064,000	'
Assets	$54,554,000	$51,422,000	'