Air Industries (AIRI) 10-Q 13 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 11, 2014
Document And Entity Information	'	'
Entity Registrant Name	'AIR INDUSTRIES GROUP	'
Entity Central Index Key	'0001009891	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-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	'	7,096,242
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and Cash Equivalents	$1,169,000	$561,000
Accounts Receivable, Net of Allowance for Doubtful Accounts of $889,000 and $783,000	9,474,000	8,584,000
Inventory	29,268,000	26,222,000
Deferred Tax Asset	1,220,000	1,051,000
Prepaid Expenses and Other Current Assets	465,000	510,000
Total Current Assets	41,596,000	36,928,000
Property and Equipment, net	6,095,000	6,523,000
Capitalized Engineering Costs - net of Accumulated Amortization of $4,093,000 and $3,879,000	666,000	752,000
Deferred Financing Costs, net, deposit and other assets	630,000	605,000
Intangible Assets, net	4,144,000	4,726,000
Deferred Tax Asset	762,000	185,000
Goodwill	4,514,000	453,000
TOTAL ASSETS	58,407,000	50,172,000
Current Liabilities	'	'
Notes Payable and Capitalized Lease Obligations - Current Portion	11,840,000	14,969,000
Accounts Payable and Accrued Expenses	7,780,000	6,855,000
Lease Impairment - Current	64,000	71,000
Deferred Gain on Sale - Current Portion	38,000	38,000
Customer Deposit	174,000	251,000
Dividends Payable	1,064,000	717,000
Income Taxes Payable	1,770,000	1,496,000
Total Current Liabilities	22,730,000	24,397,000
Long - Term Liabilities	'	'
Notes Payable and Capitalized Lease Obligation - Net of Current Portion	3,388,000	2,527,000
Lease Impairment - Net of Current Portion	25,000	56,000
Deferred Gain on Sale - Net of Current Portion	428,000	447,000
Deferred Rent	1,170,000	1,132,000
TOTAL LIABILITIES	27,741,000	28,559,000
Stockholders' Equity	'	'
Preferred Stock Par Value $.001-Authorized 1,000,000 shares at June 30, 2014 and December 31, 2013, respectively, none issued and outstanding at June 30, 2014 and December 31, 2013, respectively	'	'
Common Stock - Par Value $.001- Authorized 25,000,000 shares at June 30, 2014 and December 31, 2013, respectively, 7,096,242 and 5,862,346 Shares Issued and Outstanding as of June 30, 2014 and December 31, 2013, respectively	7,000	6,000
Additional Paid-In Capital	44,894,000	36,799,000
Accumulated Deficit	-14,235,000	-15,192,000
TOTAL STOCKHOLDERS' EQUITY	30,666,000	21,613,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$58,407,000	$50,172,000

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
ASSETS	'	'
Allowance for Doubtful Accounts	$889,000	$783,000
Accumulated Amortization	$4,093,000	$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	7,096,242	5,862,346
Common Stock Outstanding	7,096,242	5,862,346

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Net Sales	$13,360,000	$14,639,000	$28,813,000	$28,965,000
Cost of Sales	10,007,000	11,009,000	21,415,000	21,687,000
Gross Profit	3,353,000	3,630,000	7,398,000	7,278,000
Operating Expenses	3,096,000	2,552,000	5,912,000	5,021,000
Income from Operations	257,000	1,078,000	1,486,000	2,257,000
Interest and financing costs	-304,000	-393,000	-607,000	-775,000
Other (expense) income, net	-62,000	-29,000	-63,000	-58,000
(Loss) Income before (benefit from) provision for income taxes	-109,000	656,000	816,000	1,424,000
(Benefit from) provision for income taxes	-725,000	430,000	-141,000	919,000
Net Income	$616,000	$226,000	$957,000	$505,000
Income per share - basic	$0.10	$0.04	$0.16	$0.09
Income per share - diluted	$0.09	$0.04	$0.15	$0.09
Weighted average shares outstanding - basic	6,276,481	5,711,093	6,071,163	5,711,093
Weighted average shares outstanding - diluted	6,597,804	5,789,157	6,370,588	5,799,374

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net Income	$957,000	$505,000
Adjustments to Reconcile Net Income to Net Cash (used in) provided by Operating Activities	'	'
Depreciation of property and equipment	1,168,000	801,000
Amortization of intangible assets	582,000	582,000
Amortization of capitalized engineering costs	214,000	203,000
Bad debt expense	189,000	91,000
Non-cash compensation expense	15,000	6,000
Amortization of deferred financing costs	23,000	30,000
Gain on sale of real estate	-19,000	-19,000
Deferred Income Taxes	-746,000	'
(Increase) Decrease in Operating Assets:	'	'
Accounts Receivable	-789,000	2,530,000
Inventory	-2,920,000	-1,508,000
Prepaid Expenses and Other Current Assets	72,000	189,000
Deposits	-1,000	117,000
Other Assets	-23,000	10,000
Increase (Decrease) in Operating Liabilities:	'	'
Accounts payable and accrued expenses	659,000	334,000
Deferred Rent	38,000	38,000
Income Taxes payable	274,000	952,000
Customer Deposits	-77,000	'
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	-384,000	4,861,000
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Cash paid for acquisitions	-4,190,000	'
Capitalized engineering costs	-128,000	-214,000
Purchase of property and equipment	-302,000	-46,000
NET CASH USED IN INVESTING ACTIVITIES	-4,620,000	-260,000
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from Registered Offering	9,530,000	'
Costs to raise capital	-968,000	'
Notes payable - Sellers	-339,000	-317,000
Capital lease obligations	-172,000	-374,000
Note payable - Revolver	-1,422,000	-2,132,000
Proceeds from note payable - Term Loan	1,328,000	'
Payments of note payable - Term Loan	-664,000	-900,000
Cash paid for deferred financing costs	-25,000	-10,000
Payments related to Lease Impairment	-38,000	-45,000
Dividends Paid	-1,618,000	-358,000
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	5,612,000	-4,136,000
NET INCREASE IN CASH AND CASH EQUIVALENTS	608,000	465,000
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	561,000	490,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,169,000	955,000
Supplemental cash flow information	'	'
Cash paid during the period for interest	539,000	333,000
Cash paid during the period for income taxes	344,000	'
Supplemental schedule of non-cash investing and financing activities	'	'
Dividends payable	1,064,000	358,000
Conversion of Junior Subordinated Notes	1,000,000	'
Purchase of stock of Woodbine Products	'	'
Fair Value of Tangible Assets acquired	472,000	'
Goodwill	2,402,000	'
Liabilities assumed	-19,000	'
Common Stock issued	-290,000	'
Cash paid for acquisition	2,565,000	'
Purchase of stock of Eur-Pac Corporation	'	'
Fair Value of Tangible Assets acquired	409,000	'
Goodwill	1,659,000	'
Liabilities assumed	-170,000	'
Due to Seller of Eur-Pac	-78,000	'
Common Stock	-195,000	'
Cash paid for acquisition	$1,625,000	'

FORMATION_AND_BASIS_OF_PRESENT

FORMATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 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, Woodbine Products, Inc. (“Woodbine”), a wholly-owned subsidiary of WMI, Eur-Pac Corporation (“Eur-Pac”) 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 2014
Business Combinations [Abstract]	'
Note 2. ACQUISITION	'
	On April 1, 2014, the Company, through its wholly-owned subsidiary Welding, acquired all of the common stock of Woodbine for $2.4 million and 30,000 shares of the common stock of AIRI.  The common stock was valued at $9.68 per share, which was the closing share price on April 1, 2014. Additionally, a working capital adjustment in the amount of $165,000 was paid to the former stockholders of Woodbine during June of 2014.  The Company financed the acquisition of Woodbine by increasing its borrowings on its existing revolving loan and term loan facilities (see Note 7).
	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 was accounted for under FASB ASC 805, “Business Combinations” (“ASC 805”).  The purchase price allocation is set forth below.
	Fair Value of Tangible Assets acquired	$	472,000
	Goodwill		2,402,000
	Liabilities assumed		(19,000	)
	Total	$	2,855,000
	On June 1, 2014, the Company acquired all of the common stock of Eur-Pac for $1.6 million and 20,000 shares of the common stock of AIRI.  The common stock was valued at $9.78 per share, which was the closing share price on that date. Additionally, a working capital adjustment has been calculated in the amount of $78,000 and will be paid in August 2014.  This amount is reflected in the Company’s Condensed Consolidated Balance Sheet under the caption Accounts Payable and Accrued Expenses.  The Company financed the acquisition of Eur-Pac with the proceeds of its Registered Direct Offering (see Note 8).
	Eur-Pac specializes in military packaging and supplies. Eur-Pac’s primary business is “kitting” of supplies for all branches of the United States Defense Department including ordnance parts, hose assemblies, hydraulic, mechanical and electrical assemblies.
	The acquisition of Eur-Pac was accounted for under ASC 805.  The purchase price allocation is set forth below.
	Fair Value of Tangible Assets acquired	$	409,000
	Goodwill		1,659,000
	Liabilities assumed		(170,000	)
	Total	$	1,898,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2014
Summary Of Significant Accounting Policies	'
Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Principal Business Activities
	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.  Eur-Pac, as discussed above, specializes in military packaging and supplies.
	Inventory Valuation
	Inventory at June 30, 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 three customers that represented 58.3% and 59.0% of total sales for the three months ended June 30, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014	2013
			(Unaudited)	(Unaudited)
	1		29.3	30.2
	2		18.4	17.1
	3		10.6	**
	4		*	11.7
	* Customer was less than 10% of sales for the quarter ended June 30, 2014
	** Customer was less than 10% of sales for the quarter ended June 30, 2013
	There were three customers that represented 55.9% and 59.2% of total sales for the six months ended June 30, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014	2013
			(Unaudited)	(Unaudited)
	1		30.8	28
	2		12.8	17.7
	3		12.3	**
	4		*	13.5
	* Customer was less than 10% of sales for the six months ended June 30, 2014
	** Customer was less than 10% of sales for the six months ended June 30, 2013
	There were three customers that represented 47.8% and 42.9% of gross accounts receivable at June 30, 2014 and December 31, 2013, respectively. This is set forth in the table below.
			June	December
			2014	2013
			(Unaudited)
	1		19.4	22.8
	2		16.2	20.1
	3		12.2	*
	* Customer was less than 10% of receivables at December 31, 2013
	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:
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Weighted average shares outstanding used to compute basic earning per share		6,276,481		5,711,093		6,071,163		5,711,093
	Effect of dilutive stock options and warrants		321,323		78,064		299,425		88,281
	Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		6,597,804		5,789,157		6,370,588		5,799,374
	The following securities have been excluded from the calculation as their effect would be anti-dilutive:
		Three and Six Months Ended
		June 30,		June 30,
		2014		2013
		(Unaudited)		(Unaudited)
	Stock Options		17,048		12,548
	Warrants		46,800		118,835
			63,848		131,383
	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 $12,000 and $6,000 for the three months ended June 30, 2014 and 2013, respectively, and $15,000 and $6,000 for the six months ended June 30, 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 $4,514,000 relates to the acquisition of WMI ($291,000), NTW acquisition ($162,000), Woodbine ($2,402,000) and Eur-Pac ($1,659,000). 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 June 30, 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.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”).  The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in ASC 605, “Revenue Recognition” and most industry-specific guidance and creates ASC 606, “Revenue from Contracts with Customers.”
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
ASU 2014-09 is effective for public entities for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  The Company is currently evaluating the effects of the adoption of ASU 2014-09 on its consolidated financial statements.
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU No. 2014-12”).  ASU No. 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. An entity should recognize compensation cost in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. ASU 2014-12 becomes effective for interim and annual periods beginning on or after December 15, 2015. Early adoption is permitted.  The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial statements.
The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.
Subsequent Events
Management has evaluated subsequent events through the date of this filing.

ACCOUNTS_RECEIVABLE

ACCOUNTS RECEIVABLE	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 4. ACCOUNTS RECEIVABLE	'
	Note 4. ACCOUNTS RECEIVABLE
	The components of accounts receivable are detailed as follows:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Accounts Receivable Gross	$	10,449,000		$	9,367,000
	Allowance for Doubtful Accounts		(975,000	)		(783,000	)
	Accounts Receivable Net	$	9,474,000		$	8,584,000

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2014
Property And Equipment	'
Note 5. PROPERTY AND EQUIPMENT	'
	Note 5. PROPERTY AND EQUIPMENT
	The components of property and equipment at June 30, 2014 and December 31, 2013 consisted of the following:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Machinery and Equipment	$	6,507,000		$	6,251,000		5 - 8 years
	Capital Lease Machinery and Equipment		5,261,000			5,261,000		5 - 8 years
	Tools and Instruments		5,408,000			5,009,000		1.5 - 7 years
	Automotive Equipment		96,000			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		368,000			357,000		4-6 years
	Total Property and Equipment		18,543,000			17,840,000
	Less: Accumulated Depreciation		(12,448,000	)		(11,317,000	)
	Property and Equipment, net	$	6,095,000		$	6,523,000
	Depreciation expense for the three months ended June 30, 2014 and 2013 was approximately $616,000 and $398,000, respectively.  Depreciation expense for the six months ended June 30, 2014 and 2013 was approximately $1,168,000 and $801,000, respectively.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2014
Intangible Assets	'
Note 6. INTANGIBLE ASSETS	'
	Note 6. INTANGIBLE ASSETS
	The components of intangible assets consisted of the following:
		June 30,			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		(3,166,000	)		(2,584,000	)
	Intangible Assets, net	$	4,144,000		$	4,726,000
	Amortization expense for the three months ended June 30, 2014 and 2013 was approximately $291,000 and $291,000, respectively.  Amortization expense for the six months ended June 30, 2014 and 2013 was approximately $582,000 and $582,000, respectively.

NOTES_PAYABLE_AND_CAPITAL_LEAS

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS	6 Months Ended
	Jun. 30, 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:
			June 30,			December 31,
			2014			2013
			(Unaudited)
	Revolving credit note payable to PNC Bank N.A. ("PNC")		$	10,608,000		$	12,029,000
	Term loan, PNC			2,613,000			1,948,000
	Capital lease obligations			1,615,000			1,787,000
	Notes payable to sellers of WMI			392,000			732,000
	Junior subordinated notes			-			1,000,000
	Subtotal			15,228,000			17,496,000
	Less:  Current portion of notes and capital obligations			(11,840,000	)		(14,969,000	)
	Notes payable and capital lease obligations, net of current portion		$	3,388,000		$	2,527,000
	PNC Bank N.A. ("PNC")
	The Company has a loan facility with PNC (the “Loan Facility”) secured by substantially all of its assets.
	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.
	On June 9, 2014, the Loan Facility was further amended. These amendments added Eur-Pac as a borrower on the Loan Facility and increased the maximum borrowings to $25,613,000 less repayments of the Term Loan made on or after the closing date. The maximum borrowings consist of the following:
		(i)	a $23,000,000 revolving loan (includes inventory sub-limit of $15,000,000) and
		(ii)	a $2,613,000 term loan.
	Under the terms of the Loan Facility the revolving credit note 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 to Eurodollar Rate Loans.   The revolving credit note had an interest rate of 4.0 % per annum at both June 30, 2014 and December 31, 2013, and an outstanding balance of $10,608,000 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 prior to the amendment discussed below, the maturity date of the term loan was the first business day (as defined) of January 2015. The term loan bore 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 was 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.
	On April 1, 2014, the Company borrowed an additional $1,328,000.  The repayment of the Term Loan was 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. 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.  At June 30, 2014 and December 31, 2013, the balance due under the term loan was $2,613,000 and $1,948,000, respectively.
	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 June 30, 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 June 30, 2014 the future minimum principal payments for the term loan as amended are as follows:
	For the twelve months ending		Amount
	30-Jun-15		$	382,000
	30-Jun-16			382,000
	30-Jun-17			1,849,000
	PNC Term Loan Payable			2,613,000
	Less: Current portion			(382,000	)
	Long-term portion		$	2,231,000
	Interest expense related to the Loan Facilities amounted to approximately $225,000 and $272,000 for the three months ended June 30, 2014 and 2013, respectively, and $411,000 and $540,000 for the six months ended June 30, 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 $1,615,000 and $1,787,000 as of June 30, 2014 and December 31, 2013, respectively, with various interest rates ranging from 7.0% to 9.5%.
	As of June 30, 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
	30-Jun-15		$	576,000
	30-Jun-16			576,000
	30-Jun-17			368,000
	30-Jun-18			237,000
	30-Jun-19			64,000
	Thereafter			5,000
	Total future minimum lease payments			1,826,000
	Less: imputed interest			(211,000	)
	Less: current portion			(458,000	)
	Total Long Term Portion		$	1,157,000
	Notes Payable – Sellers of WMI
	As of June 30, 2014 and December 31, 2013, the balance owed to the sellers of WMI is $392,000 and $732,000, respectively.
			June 30,			December 31,
			2014			2013
			(Unaudited)
	Former Welding Stockholders		$	392,000		$	732,000
	Less:  Current Portion			(392,000	)		(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 June 30, 2014 and December 31, 2013, the balance owed under the note was $392,000 and $732,000, respectively.
	As of June 30, 2014, the future minimum payments for the note payable to the former stockholders of WMI are as follows:
	For the twelve months ended		Amount
30-Jun-15		$	392,000
Former WMI Stockholders Notes Payable		$	392,000
Less:  Current Portion		$	(392,000	)
Total long-term portion		$	-
Interest expense related to notes payable to the former stockholders of WMI was $9,000 and $31,000 for the three months ended June 30, 2014 and 2013, respectively, and $21,000 and $44,000 for the six months ended June 30, 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.
On June 3, 2014, in conjunction with our Registered Direct Offering (see Note 8), the holders of our remaining Junior Subordinated Notes converted their notes to Common Stock at a price of $9.00 per share.  On the same date, the Company paid the remaining accrued interest of $1,000 that was due to the holders.
The balance owed on the Junior Subordinated Notes at June 30, 2014 was $0 and at December 31, 2013 amounted to $1,000,000.  Interest expense on the Junior Subordinated Notes amounted to $31,000 and $30,000 for the three months ended June 30, 2014 and 2013, respectively and $61,000 and $60,000 for the six months ended June 30, 2014 and 2013, respectively.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2014
Stockholders' Equity	'
Note 8. STOCKHOLDERS' EQUITY	'
	Common Stock Issuances
	During the six months ended June 30, 2014, the Company issued 4,439 shares of its common stock pursuant to the cashless exercise of Warrants and 5,177 share of its common stock pursuant to the cashless exercise of Stock Options.
	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.
	On June 3, 2014, in connection with its Registered Direct Offering (“the Offering”), the Company issued 1,170,000 shares of its common stock.  These securities were offered pursuant to the Company’s effective “shelf” registration statement on Form S-3 (File NO. 333-191748), which was declared effective by the Securities and Exchange Commission on December 11, 2013.  Taglich Brothers acted as the exclusive placement agent for the offering (see Note 10). The gross proceeds of the offering were $10,530,000 comprised of $9,530,000 in cash and $1,000,000 in the conversion of our Junior Subordinated Notes (see Note 7).  The Company paid to Taglich Brothers a commission of approximately $842,000 and warrants to purchase up to 46,800 shares of common stock at a price per share of $11.25. Additionally, the Company paid legal fees on behalf of Taglich Brothers in the amount of $75,000 and paid a qualified independent underwriter approximately $50,000 for its services.  The Company netted cash of approximately $8,562,000 from the Offering.  A portion of these funds were used to finance the acquisition of Eur-Pac Corporation (see Note 1).
	On June 4, 2014, in connection with the acquisition of Eur-Pac, the Company issued 20,000 share of its common stock to the former stockholders of Eur-Pac.
	Dividends
	On June 19, 2014, the Board of Directors approved and the Company announced a quarterly dividend of $0.15 per common share paid on July 10, 2014 to all shareholders of record as of the close of business on June 30, 2014.  The approximate amount of the dividend was $1,064,000.
	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 $885,000.
	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.
	Warrants
	As discussed above, the Company issued Taglich Brothers warrants to purchase up to 46,800 shares of Common Stock at a per share price of $11.25.  The warrants are exercisable for cash or on a cashless basis commencing on June 2, 2015 and expiring on June 2, 2019.
	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.”

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2014
Income Taxes	'
Note 9. INCOME TAXES	'
	Note 9. INCOME TAXES
	The provision for income taxes as at June 30, are set forth below:
		2014			2013
		(Unaudited)			(Unaudited)
	Current
	Federal	$	871,000		$	707,000
	State		14,000			212,000
	Prior year (over) under accruals
	Federal		10,000			-
	State		(290,000	)		-
	Total Current Expense		605,000			919,000
	Deferred Tax Benefit		(746,000	)		-
	Net (Benefit) Expense for Income Taxes	$	(141,000	)	$	919,000
	The components of net deferred tax assets as of June 30, 2014 and December 31, 2013 are set forth below:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Deferred tax assets:
	Current:
	Bad debts		390,000			313,000
	Inventory - 263A adjustment		821,000			729,000
	Account payable, accrued expenses and reserves		9,000			9,000
	Total current deferred tax assets	$	1,220,000		$	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		507,000			521,000
	Capitalized engineering costs		526,000			503,000
	Deferred rent		468,000			453,000
	Amortization - NTW Transaction		530,000			475,000
	Lease Impairment		36,000			51,000
	Deferred gain on sale of real estate		186,000			194,000
	Total non-current deferred tax assets before valuation allowance		3,345,000			3,289,000
	Valuation allowance		(1,092,000	)		(1,092,000	)
	Total non-current deferred tax assets after valuation allowance		2,253,000			2,197,000
	Deferred tax liabilities:
	Property and equipment		(1,007,000	)		(1,497,000	)
	Goodwill - NTW Transaction		(9,000	)		(7,000	)
	Amortization - Welding Transaction		(475,000	)		(508,000	)
	Total Deferred Tax Liability		(1,491,000	)		(2,012,000	)
	Net non-current deferred tax asseta	$	762,000		$	185,000
	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 net deferred tax assets is more likely than not to be realized.  The valuation allowance at both June 30, 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.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
Note 10. RELATED PARTY TRANSACTIONS	'
	The Company’s chairman of the board and a second director are principals of Taglich Brothers.  As discussed above, Taglich Brothers acted as the exclusive placement agent for the Offering.

SEGMENT_REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 11. 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 four 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 and the results of Woodbine are included within the WMI segment beginning on April 1, 2014, the date it was acquired.  Eur-Pac’s primary business is “kitting” of supplies for all branches of the United States Defense Department including ordnance parts, hose assemblies, hydraulic, mechanical and electrical assemblies. The results of Eur-Pac are included from its date of acquisition. 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.  There was no corporate allocation made to Eur-Pac during 2014.
	Financial information about the Company's operating segments for the three months ended June 30, 2014 and 2013 are as follows:
	Three Months Ended June 30,
		2014			2013
		(Unaudited)			(Unaudited)
	AIM
	Net Sales	$	7,135,000		$	8,188,000
	Gross Profit		1,285,000			1,599,000
	Pre Tax Income		157,000			594,000
	Assets		22,243,000			23,645,000
	WMI
	Net Sales		3,763,000			3,307,000
	Gross Profit		1,108,000			894,000
	Pre Tax (Loss) Income		(202,000	)		7,000
	Assets		18,375,000			9,477,000
	NTW
	Net Sales		2,185,000			3,144,000
	Gross Profit		819,000			1,137,000
	Pre Tax (Loss) Income		(73,000	)		228,000
	Assets		11,597,000			13,247,000
	Eur-Pac
	Net Sales		277,000			-
	Gross Profit		141,000			-
	Pre Tax Income		91,000			-
	Assets		2,252,000			-
	Corporate
	Net Sales		-			-
	Gross Profit		-			-
	Pre Tax Loss		(82,000	)		(173,000
	Assets		17,254,000			11,074,000
	Consolidated
	Net Sales		13,360,000			14,639,000
	Gross Profit		3,353,000			3,630,000
	Pre Tax (Loss) Income		(109,000	)		656,000
	(Benefit from) Provision for Taxes		(725,000	)		430,000
	Net Income		616,000			226,000
	Elimination of Assets		(13,314,000	)		(6,596,000
	Assets		58,407,000			50,847,000
	Financial information about the Company's operating segments for the six months ended June 30, 2014 and 2013 are as follows:
	Six Months Ended June 30,
		2014			2013
		(Unaudited)			(Unaudited)
	AIM
	Net Sales	$	14,266,000		$	15,666,000
	Gross Profit		2,571,000			3,059,000
	Pre Tax Income		485,000			1,088,000
	Assets		22,243,000			23,645,000
	WMI
	Net Sales		7,076,000			6,446,000
	Gross Profit		1,945,000			1,743,000
	Pre Tax Loss		(533,000	)		(5,000	)
	Assets		18,375,000			9,477,000
	NTW
	Net Sales		7,194,000			6,853,000
	Gross Profit		2,741,000			2,476,000
	Pre Tax Income		946,000			721,000
	Assets		11,597,000			13,247,000
	Eur-Pac
	Net Sales		277,000			-
	Gross Profit		141,000			-
Pre Tax Income		91,000			-
Assets		2,252,000			-
Corporate
Net Sales		-			-
Gross Profit		-			-
Pre Tax Loss		(173,000	)		(380,000	)
Assets		17,254,000			11,074,000
Consolidated
Net Sales		28,813,000			28,965,000
Gross Profit		7,398,000			7,278,000
Pre Tax Income		816,000			1,424,000
(Benefit from) Provision for Taxes		(141,000	)		919,000
Net Income		957,000			505,000
Elimination of Assets		(13,314,000	)		(6,596,000	)
Assets		58,407,000			50,847,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2014
Summary Of Significant Accounting Policies Policies	'
Principal Business Activity	'
	Principal Business Activities
	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.  Eur-Pac, as discussed above, specializes in military packaging and supplies.
Inventory Valuation	'
	Inventory Valuation
	Inventory at June 30, 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 three customers that represented 58.3% and 59.0% of total sales for the three months ended June 30, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014	2013
			(Unaudited)	(Unaudited)
	1		29.3	30.2
	2		18.4	17.1
	3		10.6	**
	4		*	11.7
	* Customer was less than 10% of sales for the quarter ended June 30, 2014
	** Customer was less than 10% of sales for the quarter ended June 30, 2013
	There were three customers that represented 55.9% and 59.2% of total sales for the six months ended June 30, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014	2013
			(Unaudited)	(Unaudited)
	1		30.8	28
	2		12.8	17.7
	3		12.3	**
	4		*	13.5
	* Customer was less than 10% of sales for the six months ended June 30, 2014
	** Customer was less than 10% of sales for the six months ended June 30, 2013
	There were three customers that represented 47.8% and 42.9% of gross accounts receivable at June 30, 2014 and December 31, 2013, respectively. This is set forth in the table below.
			June	December
			2014	2013
			(Unaudited)	(Unaudited)
	1		19.4	22.8
	2		16.2	20.1
	3		12.2	*
	* Customer was less than 10% of receivables at December 31, 2013
	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	'
	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:
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Weighted average shares outstanding used to compute basic earning per share		6,276,481		5,711,093		6,071,163		5,711,093
	Effect of dilutive stock options and warrants		321,323		78,064		299,425		88,281
	Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		6,597,804		5,789,157		6,370,588		5,799,374
	The following securities have been excluded from the calculation as their effect would be anti-dilutive:
		Three and Six Months Ended
		June 30,		June 30,
		2014		2013
		(Unaudited)		(Unaudited)
	Stock Options		17,048		12,548
	Warrants		46,800		118,835
			63,848		131,383
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 $12,000 and $6,000 for the three months ended June 30, 2014 and 2013, respectively, and $15,000 and $6,000 for the six months ended June 30, 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 $4,514,000 relates to the acquisition of WMI ($291,000), NTW acquisition ($162,000), Woodbine ($2,402,000) and Eur-Pac ($1,659,000). 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 June 30, 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.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”).  The amendments in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in ASC 605, “Revenue Recognition” and most industry-specific guidance and creates ASC 606, “Revenue from Contracts with Customers.”
	The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:
	Step 1: Identify the contract(s) with a customer.
	Step 2: Identify the performance obligations in the contract.
	Step 3: Determine the transaction price.
	Step 4: Allocate the transaction price to the performance obligations in the contract.
	Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
	ASU 2014-09 is effective for nonpublic entities for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018.  A nonpublic entity may elect to apply ASU 2014-09 earlier as defined in the ASU.  The Company is currently evaluating the effects of the adoption of ASU 2014-09 on its financial statements.
	In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU No. 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. An entity should recognize compensation cost in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. ASU 2014-12 becomes effective for interim and annual periods beginning on or after December 15, 2015. Adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial statements.
	The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.
Subsequent Events	'
	Subsequent Events
	Management has evaluated subsequent events through the date of this filing.

ACQUISITION_Tables

ACQUISITION (Tables)	6 Months Ended
	Jun. 30, 2014
Woodbine	'
Purchase price allocation	'
	The acquisition of Woodbine was accounted for under FASB ASC 805, “Business Combinations” (“ASC 805”).  The purchase price allocation is set forth below.
	Fair Value of Tangible Assets acquired	$	472,000
	Goodwill		2,402,000
	Liabilities assumed		(19,000	)
	Total	$	2,855,000
Eur-Pac	'
Purchase price allocation	'
	The acquisition of Eur-Pac was accounted for under ASC 805.  The purchase price allocation is set forth below.
	Fair Value of Tangible Assets acquired	$	409,000
	Goodwill		1,659,000
	Liabilities assumed		(170,000	)
	Total	$	1,898,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2014
Summary Of Significant Accounting Policies Tables	'
Credit and Concentration Risks	'
	There were three customers that represented 58.3% and 59.0% of total sales for the three months ended June 30, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014	2013
			(Unaudited)	(Unaudited)
	1		29.3	30.2
	2		18.4	17.1
	3		10.6	**
	4		*	11.7
	* Customer was less than 10% of sales for the quarter ended June 30, 2014
	** Customer was less than 10% of sales for the quarter ended June 30, 2013
	There were three customers that represented 55.9% and 59.2% of total sales for the six months ended June 30, 2014 and 2013, respectively. This is set forth in the table below.
	Customer		Percentage of Sales
			2014	2013
			(Unaudited)	(Unaudited)
	1		30.8	28
	2		12.8	17.7
	3		12.3	**
	4		*	13.5
	* Customer was less than 10% of sales for the six months ended June 30, 2014
	** Customer was less than 10% of sales for the six months ended June 30, 2013
	There were three customers that represented 47.8% and 42.9% of gross accounts receivable at June 30, 2014 and December 31, 2013, respectively. This is set forth in the table below.
			June	December
			2014	2013
			(Unaudited)
	1		19.4	22.8
	2		16.2	20.1
	3		12.2	*
	* Customer was less than 10% of receivables at December 31, 2013
Earnings per share	'
	The following is a reconciliation of the denominators of basic and diluted earnings per share computations:
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Weighted average shares outstanding used to compute basic earning per share		6,276,481		5,711,093		6,071,163		5,711,093
	Effect of dilutive stock options and warrants		321,323		78,064		299,425		88,281
	Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share		6,597,804		5,789,157		6,370,588		5,799,374
	The following securities have been excluded from the calculation as their effect would be anti-dilutive:
		Three and Six Months Ended
		June 30,		June 30,
		2014		2013
		(Unaudited)		(Unaudited)
	Stock Options		17,048		12,548
	Warrants		46,800		118,835
			63,848		131,383

ACCOUNTS_RECEIVABLE_Tables

ACCOUNTS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Components of accounts receivable	'
	The components of accounts receivable are detailed as follows:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Accounts Receivable Gross	$	10,449,000		$	9,367,000
	Allowance for Doubtful Accounts		(975,000	)		(783,000	)
	Accounts Receivable Net	$	9,474,000		$	8,584,000

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2014
Property And Equipment Tables	'
Property and equipment	'
	The components of property and equipment at June 30, 2014 and December 31, 2013 consisted of the following:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Machinery and Equipment	$	6,507,000		$	6,251,000		5 - 8 years
	Capital Lease Machinery and Equipment		5,261,000			5,261,000		5 - 8 years
	Tools and Instruments		5,408,000			5,009,000		1.5 - 7 years
	Automotive Equipment		96,000			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		368,000			357,000		4-6 years
	Total Property and Equipment		18,543,000			17,840,000
	Less: Accumulated Depreciation		(12,448,000	)		(11,317,000	)
	Property and Equipment, net	$	6,095,000		$	6,523,000

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2014
Intangible Assets Tables	'
Intangible assets	'
	The components of intangible assets consisted of the following:
		June 30,			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		(3,166,000	)		(2,584,000	)
	Intangible Assets, net	$	4,144,000		$	4,726,000

NOTES_PAYABLE_AND_CAPITAL_LEAS1

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2014
Notes Payable And Capital Lease Obligations Tables	'
Notes payable and capital lease obligations	'
	Notes payable and capital lease obligations consist of the following:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Revolving credit note payable to PNC Bank N.A. ("PNC")	$	10,608,000		$	12,029,000
	Term loan, PNC		2,613,000			1,948,000
	Capital lease obligations		1,615,000			1,787,000
	Notes payable to sellers of WMI		392,000			732,000
	Junior subordinated notes		-			1,000,000
	Subtotal		15,228,000			17,496,000
	Less:  Current portion of notes and capital obligations		(11,840,000	)		(14,969,000	)
	Notes payable and capital lease obligations, net of current portion	$	3,388,000		$	2,527,000
Future minimum principal payments for term loan	'
	As of June 30, 2014 the future minimum principal payments for the term loan as amended are as follows:
	For the twelve months ending	Amount
	30-Jun-15	$	382,000
	30-Jun-16		382,000
	30-Jun-17		1,849,000
	PNC Term Loan Payable		2,613,000
	Less: Current portion		(382,000	)
	Long-term portion	$	2,231,000
Future minimum lease payments, including imputed interest	'
	As of June 30, 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
	30-Jun-15	$	576,000
	30-Jun-16		576,000
	30-Jun-17		368,000
	30-Jun-18		237,000
	30-Jun-19		64,000
	Thereafter		5,000
	Total future minimum lease payments		1,826,000
	Less: imputed interest		(211,000	)
	Less: current portion		(458,000	)
	Total Long Term Portion	$	1,157,000
Notes Payable - Sellers	'
	As of June 30, 2014 and December 31, 2013, the balance owed to the sellers of WMI is $392,000 and $732,000, respectively.
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Former Welding Stockholders	$	392,000		$	732,000
	Less:  Current Portion		(392,000	)		(691,000	)
	Total long-term portion	$	-		$	41,000
Future minimum payments for the note payable to the former stockholders of Welding	'
	As of June 30, 2014, the future minimum payments for the note payable to the former stockholders of WMI are as follows:
	For the twelve months ended	Amount
	30-Jun-15	$	392,000
	Former WMI Stockholders Notes Payable	$	392,000
	Less:  Current Portion	$	(392,000	)
	Total long-term portion	$	-

INCOME_TAXES_Tables

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2014
Series B Convertible Preferred Stock par Value	'
Provision for income	'
	The provision for income taxes as at June 30, are set forth below:
		2014			2013
		(Unaudited)			(Unaudited)
	Current
	Federal	$	871,000		$	707,000
	State		14,000			212,000
	Prior year (over) under accruals
	Federal		10,000			-
	State		(290,000	)		-
	Total Current Expense		605,000			919,000
	Deferred Tax Benefit		(746,000	)		-
	Net (Benefit) Expense for Income Taxes	$	(141,000	)	$	919,000
Deferred tax assets	'
	The components of net deferred tax assets as of June 30, 2014 and December 31, 2013 are set forth below:
		June 30,			December 31,
		2014			2013
		(Unaudited)
	Deferred tax assets:
	Current:
	Bad debts		390,000			313,000
	Inventory - 263A adjustment		821,000			729,000
	Account payable, accrued expenses and reserves		9,000			9,000
	Total current deferred tax assets	$	1,220,000		$	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		507,000			521,000
	Capitalized engineering costs		526,000			503,000
	Deferred rent		468,000			453,000
	Amortization - NTW Transaction		530,000			475,000
	Lease Impairment		36,000			51,000
	Deferred gain on sale of real estate		186,000			194,000
	Total non-current deferred tax assets before valuation allowance		3,345,000			3,289,000
	Valuation allowance		(1,092,000	)		(1,092,000	)
	Total non-current deferred tax assets after valuation allowance		2,253,000			2,197,000
	Deferred tax liabilities:
	Property and equipment		(1,007,000	)		(1,497,000	)
	Goodwill - NTW Transaction		(9,000	)		(7,000	)
	Amortization - Welding Transaction		(475,000	)		(508,000	)
	Total Deferred Tax Liability		(1,491,000	)		(2,012,000	)
	Net non-current deferred tax asseta	$	762,000		$	185,000

SEGMENT_REPORTING_Tables

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting Tables	'
Operating segments	'
	Financial information about the Company's operating segments for the three months ended June 30, 2014 and 2013 are as follows:
	Three Months Ended June 30,
		2014			2013
		(Unaudited)			(Unaudited)
	AIM
	Net Sales	$	7,135,000		$	8,188,000
	Gross Profit		1,285,000			1,599,000
	Pre Tax Income		157,000			594,000
	Assets		22,243,000			23,645,000
	WMI
	Net Sales		3,763,000			3,307,000
	Gross Profit		1,108,000			894,000
	Pre Tax (Loss) Income		(202,000	)		7,000
	Assets		18,375,000			9,477,000
	NTW
	Net Sales		2,185,000			3,144,000
	Gross Profit		819,000			1,137,000
	Pre Tax (Loss) Income		(73,000	)		228,000
	Assets		11,597,000			13,247,000
	Eur-Pac
	Net Sales		277,000			-
	Gross Profit		141,000			-
	Pre Tax Income		91,000			-
	Assets		2,252,000			-
	Corporate
	Net Sales		-			-
	Gross Profit		-			-
	Pre Tax Loss		(82,000	)		(173,000	)
	Assets		17,254,000			11,074,000
	Consolidated
	Net Sales		13,360,000			14,639,000
	Gross Profit		3,353,000			3,630,000
	Pre Tax (Loss) Income		(109,000	)		656,000
	(Benefit from) Provision for Taxes		(725,000	)		430,000
	Net Income		616,000			226,000
	Elimination of Assets		(13,314,000	)		(6,596,000	)
	Assets		58,407,000			50,847,000
	Financial information about the Company's operating segments for the six months ended June 30, 2014 and 2013 are as follows:
	Six Months Ended June 30,
		2014			2013
		(Unaudited)			(Unaudited)
	AIM
	Net Sales	$	14,266,000		$	15,666,000
	Gross Profit		2,571,000			3,059,000
	Pre Tax Income		485,000			1,088,000
	Assets		22,243,000			23,645,000
	WMI
	Net Sales		7,076,000			6,446,000
	Gross Profit		1,945,000			1,743,000
	Pre Tax Loss		(533,000	)		(5,000	)
	Assets		18,375,000			9,477,000
	NTW
	Net Sales		7,194,000			6,853,000
	Gross Profit		2,741,000			2,476,000
	Pre Tax Income		946,000			721,000
	Assets		11,597,000			13,247,000
	Eur-Pac
	Net Sales		277,000			-
	Gross Profit		141,000			-
	Pre Tax Income		91,000			-
	Assets		2,252,000			-
	Corporate
	Net Sales		-			-
Gross Profit		-			-
Pre Tax Loss		(173,000	)		(380,000	)
Assets		17,254,000			11,074,000
Consolidated
Net Sales		28,813,000			28,965,000
Gross Profit		7,398,000			7,278,000
Pre Tax Income		816,000			1,424,000
(Benefit from) Provision for Taxes		(141,000	)		919,000
Net Income		957,000			505,000
Elimination of Assets		(13,314,000	)		(6,596,000	)
Assets		58,407,000			50,847,000

ACQUISITION_Details

ACQUISITION (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Woodbine	'
Fair Value of Tangible Assets acquired	$472,000
Goodwill	2,402,000
Liabilities assumed	-19,000
Total	2,855,000
Eur-Pac	'
Fair Value of Tangible Assets acquired	409,000
Goodwill	1,659,000
Liabilities assumed	-170,000
Total	$1,898,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Unaudited)	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Summary Of Significant Accounting Policies Details	'		'		'		'
Customer 1	29.30%		30.20%		30.80%		28.00%
Customer 2	18.40%		17.10%		12.80%		17.70%
Customer 3	10.60%		'	[1]	12.30%		'	[2]
Customer 4	'	[3]	11.70%		'	[4]	1350.00%
[1]	Customer was less than 10% of sales for the quarters ended June 30, 2013
[2]	Customer was less than 10% of sales for the six months ended June 30, 2013
[3]	Customer was less than 10% of sales for the quarter ended June 30, 2014
[4]	Customer was less than 10% of sales for the six months ended June 30, 2014

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Jun. 30, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies Details 1	'	'
Customer 1	19.40%	'	[1]
Customer 2	16.20%	22.80%
Customer 3	12.20%	20.10%
[1]	Customer was less than 10% of Gross Accounts Receivable at December 31, 2013

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (Unaudited)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Summary Of Significant Accounting Policies Details 2	'	'	'	'
Weighted average shares outstanding used to compute basic earning per share	6,276,481	5,711,093	6,071,163	5,711,093
Effect of dilutive stock options and warrants	321,323	78,064	299,425	88,281
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share	6,597,804	5,789,157	6,370,588	5,799,374

SUMMARY_OF_SIGNIFICANT_ACCOUNT6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (Unaudited)	Jun. 30, 2014	Jun. 30, 2013
Summary Of Significant Accounting Policies Details 3	'	'
Stock Options	17,048	12,548
Warrants	46,800	118,835
Anti dilutive Securities	63,848	131,383

SUMMARY_OF_SIGNIFICANT_ACCOUNT7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
	Number	Number
Summary Of Significant Accounting Policies Details Narrative	'	'	'	'	'
Customer Sales	'	'	58.30%	59.00%	'
Customers gross accounts receivables	47.80%	'	47.80%	'	42.90%
Number of Customers represented percentage of total sales	3	3	'	'	'
Customers represented percentage of gross accounts receivable	3	'	'	'	'
Stock-based compensation	$12,000	$6,000	$15,000	$6,000	'
Impairment of goodwill	$0	'	$0	'	$0

ACCOUNTS_RECEIVABLE_Details

ACCOUNTS RECEIVABLE (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Receivables [Abstract]	'	'
Accounts Receivable Gross	$10,449,000	$9,367,000
Allowance for Doubtful Accounts	-975,000	-783,000
Accounts Receivable Net	$9,474,000	$8,584,000

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Total Property and Equipment	$18,543,000	$17,840,000
Less: Accumulated Depreciation	-12,448,000	-11,317,000
Property and Equipment, net	6,095,000	6,523,000
Machinery and Equipment	'	'
Total Property and Equipment	6,507,000	6,251,000
Machinery and Equipment | Minimum	'	'
Property Plant And Equipment Useful Life	'5 years	'
Machinery and Equipment | Maximum [Member]	'	'
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 [Member]	'	'
Property Plant And Equipment Useful Life	'8 years	'
Tools and Instruments	'	'
Total Property and Equipment	5,408,000	5,009,000
Tools and Instruments | Minimum	'	'
Property Plant And Equipment Useful Life	'1 year 6 months	'
Tools and Instruments | Maximum [Member]	'	'
Property Plant And Equipment Useful Life	'7 years	'
Automotive Equipment	'	'
Total Property and Equipment	96,000	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 [Member]	'	'
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	$368,000	$357,000
Computers and Software | Minimum	'	'
Property Plant And Equipment Useful Life	'4 years	'
Computers and Software | Maximum [Member]	'	'
Property Plant And Equipment Useful Life	'6 years	'

PROPERTY_AND_EQUIPMENT_Details1

PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Property, Plant and Equipment [Abstract]	'	'	'	'
Depreciation expense	$616,000	$398,000	$1,168,000	$801,000

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014
			Customer Relationships [Member]	Customer Relationships [Member]	Trade Names [Member]	Technical Know How [Member]	Non Compete [Member]	Professional Certifications [Member]	Professional Certifications [Member]
			Maximum [Member]	Minimum				Maximum [Member]	Minimum
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	-3,166,000	-2,584,000	'	'	'	'	'	'	'
Intangible Assets, net	$4,144,000	$4,726,000	'	'	'	'	'	'	'
Intangible Assets Useful Life	'	'	'14 years	'5 years	'20 years	'10 years	'5 years	'2 years	'4 months

INTANGIBLE_ASSETS_Details_Narr

INTANGIBLE ASSETS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Notes to Financial Statements	'	'	'	'
Amortization of the intangibles	$291,000	$291,000	$582,000	$582,000

NOTES_PAYABLE_AND_CAPITAL_LEAS2

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Notes Payable And Capital Lease Obligations Details	'	'
Revolving credit notes payable to PNC Bank N.A. ("PNC")	$10,608,000	$12,029,000
Term loan, PNC	2,613,000	1,948,000
Capital lease obligations	1,615,000	1,787,000
Notes payable to sellers of WMI	392,000	732,000
Junior subordinated notes	'	1,000,000
Subtotal	15,228,000	17,496,000
Less: Current portion of notes and capital obligations	-11,840,000	-14,969,000
Notes payable and capital lease obligations, net of current portion	$3,388,000	$2,527,000

NOTES_PAYABLE_AND_CAPITAL_LEAS3

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 1) (USD $)	Jun. 30, 2014
Notes Payable And Capital Lease Obligations Details 1	'
30-Jun-15	$382,000
30-Jun-16	382,000
30-Jun-17	1,849,000
PNC Term Loan Payable	2,613,000
Less: Current portion	-382,000
Long-term portion	$2,231,000

NOTES_PAYABLE_AND_CAPITAL_LEAS4

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 2) (USD $)	Jun. 30, 2014
Notes Payable And Capital Lease Obligations Details 2	'
30-Jun-15	$576,000
30-Jun-16	576,000
30-Jun-17	368,000
30-Jun-18	237,000
30-Jun-19	64,000
Thereafter	5,000
Total future minimum lease payments	1,826,000
Less: Imputed interest	-211,000
Less: Current portion	-458,000
Total Long-Term Portion	$1,157,000

NOTES_PAYABLE_AND_CAPITAL_LEAS5

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 3) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Notes Payable And Capital Lease Obligations Details 3	'	'
Former Welding Stockholders	$392,000	$732,000
Less: Current Portion	-392,000	-691,000
Total Long-term portion	'	$41,000

NOTES_PAYABLE_AND_CAPITAL_LEAS6

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details 4) (USD $)	Jun. 30, 2014
Future minimum payments for the note payable to the former stockholders of Welding:	'
Former Welding Stockholders	$392,000
Less: Current Portion	-392,000
Total long-term portion	'

NOTES_PAYABLE_AND_CAPITAL_LEAS7

NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Notes to Financial Statements	'	'	'	'	'
Revolving loan interest rate	4.00%	'	4.00%	'	4.00%
Balance due under term loan	$10,608,000	'	$10,608,000	'	$12,029,000
Balance due under the term loan	2,613,000	'	2,613,000	'	1,948,000
Interest expense related to credit facilities	225,000	272,000	411,000	540,000	'
Capital lease obligations	1,615,000	'	1,615,000	'	1,787,000
Interest rate minimum	'	'	7.00%	'	'
Interest rate maximum	'	'	9.50%	'	'
Balance owed under note	392,000	'	392,000	'	732,000
Interest expense related to notes payable	9,000	31,000	21,000	44,000	'
Balance owed amounted to	0	'	0	'	1,000,000
Interest expense amounted to	$31,000	$30,000	$61,000	$60,000	'

STOCKHOLDERS_EQUITY_Details_Na

STOCKHOLDERS' EQUITY (Details Narrative)	6 Months Ended
	Jun. 30, 2014
Warrant [Member]	'
Common stock shares issued	4,439
Stock Options [Member]	'
Common stock shares issued	5,177

INCOME_TAXES_Details_Unaudited

INCOME TAXES (Details) (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Current	'	'
Federal	$871,000	$707,000
State	14,000	212,000
Federal	10,000	'
State	-290,000	'
Total Current Expense	605,000	919,000
Deferred Tax Benefit	-746,000	'
Net (Benefit) Expense for Income Taxes	($141,000)	$919,000

INCOME_TAXES_Details_1

INCOME TAXES (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current:	'	'
Bad debts	$390,000	$313,000
Inventory - 263A adjustment	821,000	729,000
Account payable, accrued expenses and reserves	9,000	9,000
Total current deferred tax assets	1,220,000	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	507,000	521,000
Capitalized engineering costs	526,000	503,000
Deferred rent	468,000	453,000
Amortization - NTW Transaction	530,000	475,000
Lease Impairment	36,000	51,000
Deferred gain on sale of real estate	186,000	194,000
Total non-current deferred tax assets before valuation allowance	3,345,000	3,289,000
Valuation allowance	-1,092,000	-1,092,000
Total non-current deferred tax assets after valuation allowance	2,253,000	2,197,000
Deferred tax liabilities:	'	'
Property and equipment	-1,007,000	-1,497,000
Goodwill - NTW Transaction	-9,000	-7,000
Amortization - Welding Transaction	-475,000	-508,000
Total Deferred Tax Liability	-1,491,000	-2,012,000
Net non-current deferred tax assets	$762,000	$185,000

INCOME_TAXES_Details_Narrative

INCOME TAXES (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 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		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Gross Profit	$3,353,000	$3,630,000	$7,398,000	$7,278,000	'
(Benefit from) Provision for Taxes	-725,000	430,000	-141,000	919,000	'
Assets	58,407,000	'	58,407,000	'	50,172,000
AIM	'	'	'	'	'
Net Sales	7,135,000	8,188,000	14,266,000	15,666,000	'
Gross Profit	1,285,000	1,599,000	2,571,000	3,059,000	'
Pre Tax (Loss) Income	157,000	594,000	485,000	1,088,000	'
Assets	22,243,000	23,645,000	22,243,000	23,645,000	'
WMI	'	'	'	'	'
Net Sales	3,763,000	3,307,000	7,076,000	6,446,000	'
Gross Profit	1,108,000	894,000	1,945,000	1,743,000	'
Pre Tax (Loss) Income	-202,000	7,000	-533,000	-5,000	'
Assets	18,375,000	9,477,000	18,375,000	9,477,000	'
NTW	'	'	'	'	'
Net Sales	2,185,000	3,144,000	7,194,000	6,853,000	'
Gross Profit	819,000	1,137,000	2,741,000	2,476,000	'
Pre Tax (Loss) Income	-73,000	228,000	946,000	721,000	'
Assets	11,597,000	13,247,000	11,597,000	13,247,000	'
Eur-Pac	'	'	'	'	'
Net Sales	277,000	'	277,000	'	'
Gross Profit	141,000	'	141,000	'	'
Pre Tax (Loss) Income	91,000	'	91,000	'	'
Assets	2,252,000	'	2,252,000	'	'
Corporate	'	'	'	'	'
Net Sales	'	'	'	'	'
Gross Profit	'	'	'	'	'
Pre Tax (Loss) Income	-82,000	-173,000	-173,000	-380,000	'
Assets	17,254,000	11,074,000	17,254,000	11,074,000	'
Consolidated	'	'	'	'	'
Net Sales	13,360,000	14,639,000	28,813,000	28,965,000	'
Gross Profit	3,353,000	3,630,000	7,398,000	7,278,000	'
Pre Tax (Loss) Income	-109,000	656,000	816,000	1,424,000	'
(Benefit from) Provision for Taxes	-725,000	430,000	-141,000	919,000	'
Net Income	616,000	226,000	957,000	505,000	'
Elimination of Assets	-13,314,000	-6,596,000	-13,314,000	-6,596,000	'
Assets	$58,407,000	$50,847,000	$58,407,000	$50,847,000	'