CPI Aerostructures (CVU) 10-Q/A 25 Aug 20 2019 Q3 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Aug. 24, 2020
Document And Entity Information
Entity Registrant Name	CPI AEROSTRUCTURES INC
Entity Central Index Key	0000889348
Document Type	10-Q/A
Entity File Number	1-11398
Document Period End Date	Sep. 30, 2019
Entity Incorporation, State or Country Code	NY
Amendment Flag	true
Amendment Description	This Amendment No. 1 to our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 (this "Quarterly Report on Form 10-Q/A") is being filed to amend and restate certain items presented in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019, which was initially filed with the Securities and Exchange Commission (the "SEC") on November 8, 2019 (the "Original Form 10-Q").
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	No
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,876,610
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current Assets:
Cash	$ 468,536	$ 4,128,142
Restricted cash	2,000,000	2,000,000
Accounts receivable, net of allowance for doubtful accounts of $275,000 as of September 30, 2019 and $222,025 as of December 31, 2018	10,284,768	8,722,571
Contract assets	14,487,015	17,588,866
Inventory	10,126,509	9,361,611
Refundable income taxes	623,538	434,903
Prepaid expenses and other current assets	966,522	1,972,630
Total current assets	38,956,888	44,208,723
Operating lease right-of-use assets	4,259,868
Property and equipment, net	3,137,194	2,545,192
Refundable income taxes	434,903	434,903
Other assets	207,096	249,575
Total assets	46,995,949	47,438,393
Current Liabilities:
Accounts payable	10,892,353	9,902,481
Accrued expenses	1,641,137	1,558,160
Contract liabilities	1,561,543	5,252,579
Loss reserve	2,895,045	3,663,558
Current portion of long-term debt	2,499,012	2,434,981
Operating lease liabilities	1,673,244
Income tax payable	119,776	113,992
Total current liabilities	21,282,110	22,925,751
Line of credit	26,738,685	24,038,685
Long-term operating lease liabilities	3,033,710
Long-term debt, net of current portion	2,371,797	3,876,238
Other liabilities		531,124
Total liabilities	53,426,302	51,371,798
Shareholders' Deficit:
Common stock - $.001 par value; authorized 50,000,000 shares, 11,839,065 and 11,718,246 shares, respectively, issued and outstanding	11,839	11,718
Additional paid-in capital	71,225,278	70,651,413
Accumulated deficit	(77,667,470)	(74,596,536)
Total Shareholders' Deficit	(6,430,353)	(3,933,405)
Total Liabilities and Shareholders' Deficit	$ 46,995,949	$ 47,438,393

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 275,000	$ 222,025
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	11,839,065	11,718,246

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 22,689,762	$ 15,842,610	$ 64,779,858	$ 48,008,240
Cost of sales	20,757,649	15,267,308	58,120,687	45,285,885
Gross profit	1,932,113	575,302	6,659,171	2,722,355
Selling, general and administrative expenses	2,806,498	2,524,127	8,259,945	7,131,726
Loss from operations	(874,385)	(1,948,825)	(1,600,774)	(4,409,371)
Interest expense	378,195	574,765	1,464,376	1,438,862
Loss before provision for income taxes	(1,252,580)	(2,523,590)	(3,065,150)	(5,848,233)
Provision for income taxes	2,471	736	5,784	3,106
Net loss	(1,255,051)	(2,524,326)	(3,070,934)	(5,851,339)
Other comprehensive income net of tax - Change in unrealized loss on interest rate swap		20,600		14,800
Comprehensive loss	$ (1,255,051)	$ (2,503,726)	$ (3,070,934)	$ (5,836,539)
Loss per common share - basic (in dollars per share)	$ (0.11)	$ (0.28)	$ (0.26)	$ (0.66)
Loss per common share - diluted (in dollars per share)	$ (0.11)	$ (0.28)	$ (0.26)	$ (0.66)
Shares used in computing income per common share:
Basic (in shares)	11,838,862	8,952,979	11,796,580	8,926,734
Diluted (in shares)	11,838,862	8,952,979	11,796,580	8,926,734

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($)	Common Stock	Common StockAs Previously Reported [Member]	Additional Paid-in Capital	Additional Paid-in CapitalAs Previously Reported [Member]	Retained Earnings (Accumulated Deficit) [Member]	Retained Earnings (Accumulated Deficit) [Member]As Previously Reported [Member]	Retained Earnings (Accumulated Deficit) [Member]Restatement Adjustments [Member]	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive LossAs Previously Reported [Member]	Total	As Previously Reported [Member]	Restatement Adjustments [Member]
Balance, beginning at Dec. 31, 2017	$ 8,864	$ 8,864	$ 53,770,617	$ 53,770,617	$ (67,049,783)	$ 20,548,652	$ (87,598,435)	$ (14,800)	$ (14,800)	$ (13,285,102)	$ 74,313,333	$ (87,598,435)
Balance, beginning (in shares) at Dec. 31, 2017	8,864,319	8,864,319
Net loss					(1,442,907)					(1,442,907)
Change in unrealized loss from interest rate swap								(5,800)		(5,800)
Common stock issued as employee compensation	$ 5		(48,006)							(48,001)
Common stock issued as employee compensation (in shares)	5,130
Stock based compensation expense	$ 55		303,885							303,940
Stock based compensation expense (in shares)	54,396
Balance, ending at Mar. 31, 2018	$ 8,924		54,026,496		(68,492,690)			(20,600)		(14,477,870)
Balance, ending (in shares) at Mar. 31, 2018	8,923,845
Balance, beginning at Dec. 31, 2017	$ 8,864	$ 8,864	53,770,617	53,770,617	(67,049,783)	20,548,652	(87,598,435)	(14,800)	$ (14,800)	(13,285,102)	74,313,333	(87,598,435)
Balance, beginning (in shares) at Dec. 31, 2017	8,864,319	8,864,319
Net loss										(5,851,339)	3,099,886	(8,951,225)
Balance, ending at Sep. 30, 2018	$ 8,953		54,352,611		(72,901,122)					(18,539,558)
Balance, ending (in shares) at Sep. 30, 2018	8,953,137
Balance, beginning at Mar. 31, 2018	$ 8,924		54,026,496		(68,492,690)			(20,600)		(14,477,870)
Balance, beginning (in shares) at Mar. 31, 2018	8,923,845
Net loss					(1,884,106)					(1,884,106)	1,257,225
Change in unrealized loss from interest rate swap								$ 20,600		20,600
Common stock issued as employee compensation			93,914							93,914
Stock based compensation expense	$ 14		155,762							155,776
Stock based compensation expense (in shares)	14,646
Balance, ending at Jun. 30, 2018	$ 8,938		54,276,172		(70,376,796)					(16,091,686)
Balance, ending (in shares) at Jun. 30, 2018	8,938,491
Net loss					(2,524,326)					(2,524,326)	585,896
Stock based compensation expense	$ 15		76,439							76,454
Stock based compensation expense (in shares)	14,646
Balance, ending at Sep. 30, 2018	$ 8,953		54,352,611		(72,901,122)					(18,539,558)
Balance, ending (in shares) at Sep. 30, 2018	8,953,137
Balance, beginning at Dec. 31, 2018	$ 11,718	$ 11,718	70,651,413	70,651,413	(74,596,536)	22,760,215	(97,356,751)			(3,933,405)	93,423,346	(97,356,751)
Balance, beginning (in shares) at Dec. 31, 2018	11,718,246	11,718,246
Net loss					(934,716)					(934,716)
Costs related to stock offering			(64,371)							(64,371)
Common stock issued upon exercise of options (in shares)	521
Stock based compensation expense	$ 18		330,769							330,787
Stock based compensation expense (in shares)	17,619
Balance, ending at Mar. 31, 2019	$ 11,736		70,917,811		(75,531,252)					(4,601,705)
Balance, ending (in shares) at Mar. 31, 2019	11,736,386
Balance, beginning at Dec. 31, 2018	$ 11,718	$ 11,718	70,651,413	$ 70,651,413	(74,596,536)	$ 22,760,215	$ (97,356,751)			(3,933,405)	93,423,346	(97,356,751)
Balance, beginning (in shares) at Dec. 31, 2018	11,718,246	11,718,246
Net loss										(3,070,934)	6,035,968	$ (9,106,902)
Balance, ending at Sep. 30, 2019	$ 11,839		71,225,278		(77,667,470)					(6,430,353)	100,165,509
Balance, ending (in shares) at Sep. 30, 2019	11,839,065
Balance, beginning at Mar. 31, 2019	$ 11,736		70,917,811		(75,531,252)					(4,601,705)
Balance, beginning (in shares) at Mar. 31, 2019	11,736,386
Net loss					(881,167)					(881,167)	2,710,457
Common stock issued as employee compensation	$ 5		32,319							32,324
Common stock issued as employee compensation (in shares)	4,950
Costs related to stock offering			(55,200)							(55,200)
Stock based compensation expense	$ 79		209,488							209,567
Stock based compensation expense (in shares)	79,054
Balance, ending at Jun. 30, 2019	$ 11,820		71,104,418		(76,412,419)					(5,296,181)	98,245,508
Balance, ending (in shares) at Jun. 30, 2019	11,820,390
Net loss					(1,255,051)					(1,255,051)	1,666,913
Stock based compensation expense	$ 19		120,860							120,879
Stock based compensation expense (in shares)	18,675
Balance, ending at Sep. 30, 2019	$ 11,839		$ 71,225,278		$ (77,667,470)					$ (6,430,353)	$ 100,165,509
Balance, ending (in shares) at Sep. 30, 2019	11,839,065

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (3,070,934)	$ (5,851,339)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	729,319	521,255
Amortization of debt issuance cost	67,479	58,990
Cash expended in excess of expenses rent expense	(84,036)	(53,073)
Stock-based compensation	661,231	536,170
Common stock issued as employee compensation	32,324	45,913
Adjustment for maturity of interest rate swap		14,800
Bad debt expense	99,242	275,000
Changes in operating assets and liabilities:
Increase in accounts receivable	(1,661,439)	(1,259,365)
Decrease in contract assets	3,101,851	7,845,591
Increase in inventory	(764,898)	(95,268)
Increase in refundable income taxes	(188,635)
Decrease in prepaid expenses and other assets	797,622	177,625
Increase (decrease) in accounts payable and accrued expenses	1,072,849	(5,688,265)
Increase (decrease) in contract liabilities	(4,069,161)	170,585
Increase (decrease) in loss reserve	(768,514)	256,858
Decrease in other liabilities		(5,175)
Increase in income taxes payable	5,784	279
Net cash used in operating activities	(4,039,916)	(3,049,419)
Cash flows from investing activities:
Purchase of property and equipment	(334,909)	(521,499)
Net cash used in investing activities	(334,909)	(521,499)
Cash flows from financing activities:
Payments on long-term debt	(1,840,210)	(1,522,283)
Proceeds from line of credit	3,000,000	6,200,000
Payments on line of credit	(300,000)	(1,500,000)
Stock offering costs paid	(119,571)
Debt issue costs paid	(25,000)	(209,082)
Net cash provided by financing activities	715,219	2,968,635
Net decrease in cash and restricted cash	(3,659,606)	(602,283)
Cash and restricted cash at beginning of period	6,128,142	1,430,877
Cash and restricted cash at end of period	2,468,536	828,594
Cash paid during the period for:
Interest	1,406,581	1,601,144
Income taxes	103,927
Noncash investing and financing activities:
Equipment acquired under financing lease	$ 399,800	$ 649,158

INTERIM FINANCIAL STATEMENTS

INTERIM FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTERIM FINANCIAL STATEMENTS	1. INTERIM FINANCIAL STATEMENTS The Company consists of CPI Aerostructures, Inc. (“CPI”) and Welding Metallurgy, Inc. (“WMI”), a wholly owned subsidiary acquired on December 20, 2018 and Compac Development Corporation (“Compac”), a wholly owned subsidiary of WMI, collectively the “Company.” The acquisition of WMI and Compac is referred to throughout this document as the “WMI Acquisition”. An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the “CODM”) to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. The Company has determined that it has a single operating and reportable segment. The consolidated financial statements of the Company as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations. The consolidated balance sheet as of December 31, 2018 has been derived from audited consolidated financial statements, as restated (see Note 15 and our Annual Report on Form 10-K for the year ended December 31, 2019 for more information on the effect of the restatement) but does not include all of the information and notes required by U.S. GAAP. The Company believes that the disclosures are adequate to make the information presented not misleading. All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected. Such adjustments are of a normal, recurring nature. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which we expect to file subsequent to the filing of this Quarterly Report on Form 10-Q/A. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. The Company maintains its cash in five financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed insurance limits. As of September 30, 2019, the Company had $595,906 of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly creditworthy. The Company applied acquisition accounting for the WMI Acquisition in accordance with Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations” (“ASC 805”). Acquisition accounting requires that the assets acquired and liabilities assumed be recorded at their respective estimated fair values at the date of acquisition. The excess purchase price over fair value of the net assets acquired is recorded as goodwill. In determining estimated fair values, we are required to make estimates and assumptions that affect the recorded amounts including, but not limited to, expected future cash flows, discount rates, remaining useful lives of long-lived assets, useful lives of identified intangible assets, replacement or reproduction costs of property and equipment and the amounts to be recovered in future periods from acquired net operating losses and other deferred tax assets. Our estimates in this area impact, among other items, the amount of depreciation and amortization, impairment charges in certain instances if the asset becomes impaired, and income tax expense or benefit that we report. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain. See Note 2. “Business Combinations” for a summary and status of the application of acquisition accounting. Effective January 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606"), using the modified retrospective method. In accordance with ASC 606, the Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to be entitled to in exchange for the good or service. The majority of the Company’s performance obligations are satisfied over time as the Company (i) sells products with no alternative use to the Company and (ii) has an enforceable rig ht to recover costs incurred plus a reasonable profit margin for work completed to date. Under the over time revenue recognition model, revenue and gross profit are recognized over the contract period as work is performed based on actual costs incurred and an estimate of costs to complete and resulting total estimated costs at completion. The Company also has contracts that are considered point in time. Under the point in time revenue recognition model, revenue is recognized when control of the components has transferred to the customer, in most cases this will be based on shipping terms. The corrected adoption of ASC 606 resulted in a restatement of previously issued consolidated financial statements, see Note 15. See Note 3, “Revenue”, for additional information regarding the Company’s revenue recognition policy. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements and the recognition of a cumulative-effect adjustment to the opening balance of retained earnings. The FASB subsequently issued Accounting Standards Update No. 2018-10 and Accounting Standards Update No. 2018-11 in July 2018, which provide clarifications and improvements to ASU 2016-02 (collectively, the “new lease standard”). Accounting Standards Update No. 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented and continue to apply the provisions of the previous lease standard in its annual disclosures for the comparative periods. The new lease standard requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. Additional footnote disclosures related to leases will also be required. On January 1, 2019, the Company adopted the new lease standard using the optional transition method. The comparative financial information will not be restated and will continue to be reported under the previous lease standard in effect during those periods. In addition, the new lease standard provides a number of optional practical expedients in transition. The Company elected the package of practical expedients. As such, the Company will not reassess whether expired or existing contracts are or contain a lease; will not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The new lease standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company elected the practical expedient to not separate lease and non-lease components for certain classes of assets (office buildings). On January 1, 2019, the Company recognized ROU assets and lease liabilities of approximately $5.3 million and $5.9 million, respectively, on its consolidated balance sheet using an estimated incremental borrowing rate of 6%.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
BUSINESS COMBINATIONS	2. Business Combinations As discussed in Note 1, the Company acquired WMI and Compac from Air Industries Group (“Air Industries”) on December 20, 2018. The WMI Acquisition was accounted for as a business combination in accordance with ASC 805. Accordingly, the Company is required to determine and record the estimated fair value of the assets acquired, including any potential intangible assets, and liabilities assumed at the date of acquisition. The acquisition was considered a stock purchase for tax purposes. The purchase price for the acquisition was $7.9 million, which was subject to a post-closing working capital adjustment. $2 million dollars of the purchase price was placed in escrow at closing and may be released after the completion of the working capital adjustment and for the indemnification contingencies. The escrowed amount is shown as restricted cash on the consolidated balance sheet as of September 30, 2019. The working capital adjustment is based on the historical values of components of working capital as defined in the Stock Purchase Agreement (“SPA”). We calculated a post-closing working capital adjustment. Air Industries formally objected to our calculation. The SPA provided the parties 30 days to come to an agreement on the working capital adjustment. The Company and Air Industries could not come to an agreement within the time specified and the issues were submitted to BDO USA, LLP (“BDO”) for a binding resolution. During the course of BDO’s work, Air conceded on three of the four items of contention, leaving only the inventory valuation in dispute. In its report dated September 3, 2019, BDO found in favor of the Company and that there should be no changes to the closing working capital statement as prepared by the Company. The result of the conceded items and BDO determination would decrease the purchase price of the acquisition by approximately $4.1 million. On September 16, 2019, the Company received a letter from Air acknowledging the conceded items and, among other things, rejecting the determination by BDO. On September 27, 2019, the Company filed a notice of motion in the Supreme Court of the State of New York, County of New York, against Air Industries seeking, among other things, an order of specific performance requiring Air to comply with its obligations under the SPA and Escrow Agreement and a judgment against Air in the amount of approximately $4.1 million. As of September 30, 2019, the Company was in the process of determining the fair values of the assets and liabilities acquired and has recorded provisional estimates as of the acquisition date. As the Company completes this process and additional information becomes known concerning the acquired assets and assumed liabilities, management will make adjustments to the fair value of the amounts provisionally recorded in the opening balance sheet of WMI during the measurement period, which is no longer than a one-year period following the acquisition date. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. If the final aggregate fair value of the net assets acquired is less than the final purchase price paid, then the Company may be required to record goodwill. Conversely, if the final aggregate fair value of the net assets acquired is in excess of the final purchase price paid, then the Company may potentially conclude that the purchase of WMI was a “bargain purchase.” As stated above, as of September 30, 2019, the Company determined the following provisional estimates of the fair value of the assets acquired and liabilities assumed from WMI: Provisional Fair Values Other current assets $ 1,049,000 Accounts receivable 1,522,000 Inventory 7,969,000 Property and equipment, net 586,000 Current liabilities (5,174,000 ) Total $ 5,952,000 Please see Note 14, “Subsequent Events” for additional discussion and final fair value of assets and liabilities assumed from WMI and the working capital dispute between CPI and Air Industries. The following table presents the unaudited pro forma revenue and net income for the period presented as if the WMI Acquisition had occurred on January 1, 2018, based on the provisional estimates of the fair value of the net assets acquired: Three months ended Nine months ended September 30, 2018 Revenue $ 20,794,052 $ 59,404,526 Net loss $ (1,840,990 ) $ (5,189,733 )

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	3. REVENUE RECOGNITION Contracts with Customers and Performance Obligations The majority of the Company’s revenues are from long-term contracts with the U.S. government and commercial contractors. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For the Company, the contract under ASC 606 is typically established upon execution of a purchase order either in accordance with a long-term customer contract or on a standalone basis. To determine the proper revenue recognition for our contracts, we must evaluate whether two or more contracts should be combined and accounted for as a single contract, and whether the combined or single contract should be accounted for as one performance obligation or more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or to separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a period. A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue. The Company’s performance obligations in its contracts with customers are typically the sale of each individual product contemplated in the contract or a single performance obligation representing a series of products when the contract contains multiple products that are substantially the same. The Company has elected to account for shipping performed after control over a product has transferred to a customer as fulfillment activities. When revenue is recognized in advance of incurring shipping costs, the costs related to the shipping are accrued. Shipping costs are included in costs of sales. The Company provides warranties on many of its products; however, since customers cannot purchase such warranties separately and they do not provide services beyond standard assurances, warranties are not separate performance obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation based on its estimated standalone selling price. When standalone selling prices are not available, the transaction price is allocated using an expected cost plus margin approach as pricing for such contracts is typically negotiated on the basis of cost. The contracts with the U.S. government typically are subject to the FAR which provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. The pricing for commercial contractors are based on the specific negotiations with each customer and any taxes imposed by governmental authorities are excluded from revenue. The transaction price is primarily comprised of fixed consideration as the customer typically pays a fixed fee for each product sold. The Company does not adjust the amount of revenue to be recognized under a customer contract for the effects of the time value of money when the timing difference between receipt of payment and transferring the good or service is less than one year. The majority of the Company’s performance obligations are satisfied over time as the Company (i) sells products with no alternative use to the Company and (ii) has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date. The Company uses the cost-to-cost input method to measure progress for its performance obligations because it best depicts the transfer of control to the customer which occurs as the Company incurs costs on its contracts. The Company generally utilizes the portfolio approach to estimate the amount of revenue to recognize for its contracts and groups contracts together that have similar characteristics. Significant judgment is used to determine which contracts are grouped together to form a portfolio. The portfolio approach is utilized only when the result of the accounting is not expected to be materially different than if applied to individual contracts. The Company’s contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist Contract Estimates Certain contracts contain forms of variable consideration, such as price discounts and performance penalties. The Company generally estimates variable consideration using the most likely amount based on an assessment of all available information (i.e., historical experience, current and forecasted performance) and only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty is resolved. In applying the cost-to-cost input method, the Company compares the actual costs incurred relative to the total estimated costs expected at completion to determine its progress towards satisfying its performance obligation and to calculate the corresponding amount of revenue to recognize. For any costs incurred that do not depict the Company’s performance in transferring control of goods or services to the customer, the Company excludes such costs from its input method measure of progress as the amounts are not reflected in the price of the contract. Costs that are inputs to the satisfaction of a performance obligation include labor, materials and subcontractors’ costs, other direct costs and an allocation of indirect costs. Changes to the original estimates may be required during the life of the contract. Estimates are reviewed quarterly and the effect of any change in the estimated gross margin percentage for a contract is reflected in revenue in the period the change becomes known. ASC 606 involves considerable use of estimates and judgment in determining revenues, costs and profits and in assigning the amounts to accounting periods. For instance, management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from the customer, and overhead cost rates, among other variables. The Company continually evaluates all of the factors related to the assumptions, risks and uncertainties inherent with the application of the cost-to-cost input method; however, it cannot be assured that estimates will be accurate. If estimates are not accurate, or a contract is terminated which will affect estimates at completion, the Company is required to adjust revenue in the period the change is determined. When changes are required for the estimated total revenue on a contract, these changes are recognized on a cumulative catch-up basis in the current period. A significant change in one or more estimates could affect the profitability of one or more of our performance obligations. If estimates of total costs to be incurred exceed estimates of total consideration the Company expects to receive, a provision for the remaining loss on the contract is recorded in the period in which the loss becomes evident. Capitalized Contract Acquisition Costs and Fulfillment Costs Contract acquisition costs are those incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. The Company does not typically incur contract acquisition costs or contract fulfillment costs that are subject to capitalization in accordance with the guidance in Accounting Standards Codification Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers.” Disaggregation of Revenue The following tables present the Company’s revenue disaggregated by contract type: Three months ended Nine months ended 2019 2018 2019 2018 Aerostructures $ 9,351,578 $ 8,026,046 $ 30,121,858 $ 25,210,894 Aerosystems 7,721,955 3,905,924 22,267,233 9,593,274 Kitting and Supply Chain Management 5,616,229 3,910,640 12,390,767 13,204,072 $ 22,689,762 $ 15,842,610 $ 64,779,858 $ 48,008,240 Transaction Price Allocated to Remaining Performance Obligations As of September 30, 2019, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $153 million. This represents the amount of revenue the Company expects to recognize in the future on contracts with unsatisfied or partially satisfied performance obligations as of September 30, 2019. The Company estimates that it will recognize approximately 18% of this amount in fiscal year 2019 and the remainder by fiscal year 2021.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
LEASES	4. lEases The Company leases a building and equipment. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets. The Company leases manufacturing and office space under an agreement classified as an operating lease. The lease agreement expires on April 30, 2022 and does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease. In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms. The Company also leases office equipment in agreements classified as operating leases. For the three and nine months ended September 30, 2019, the Company’s operating lease expense was $439,825 and $1,319,764, respectively. Future minimum lease payments under non-cancellable operating leases as of September 30, 2019 were as follows: Twelve months ending September 30, 2020 $ 1,910,384 2021 1,953,865 2022 1,175,727 2023 55,322 2024 11,631 Total undiscounted operating lease payments 5,106,929 Less imputed interest (399,975 ) Present value of operating lease payments $ 4,706,954 The following table sets forth the ROU assets and operating lease liabilities as of September 30, 2019: Assets ROU Assets $ 4,259,868 Liabilities Current operating lease liabilities $ 1,673,244 Long-term operating lease liabilities 3,033,710 Total ROU liabilities $ 4,706,954 The Company’s weighted average remaining lease term for its operating leases is 2.3 years.

RECONCILIATION OF CASH AND REST

RECONCILIATION OF CASH AND RESTRICTED CASH	9 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents [Abstract]
RECONCILIATION OF CASH AND RESTRICTED CASH	5 . reconciliation of cash and restricted cash The following table provides a reconciliation of cash and restricted cash reported within the statement of cash flows that sum to the total of the same such amounts shown in the consolidated statement of cash flows: September 30, 2019 September 30, 2018 Cash $ 468,536 $ 828,594 Restricted cash 2,000,000 — Total cash and restricted cash shown in the consolidated statement of cash flow $ 2,468,536 $ 828,594

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORY	6. inventory The components of inventory consisted of the following: September 30, 2019 (restated) December 31, 2018 Raw materials $ 1,843,621 $ 2,591,872 Work in progress 6,308,759 4,015,028 Finished goods 1,974,129 2,754,711 Total $ 10,126,509 $ 9,361,611

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
STOCK BASED COMPENSATION	7. stock-based compensation The Company accounts for stock-based compensation based on the fair value of the stock or stock-based instrument on the date of grant. In January 2019, the Company granted 75,350 restricted stock units (“RSUs”) to its board of directors as partial compensation for the 2019 year. In January 2018, the Company granted 58,578 RSUs to its board of directors as partial compensation for the 2018 year. RSUs vest quarterly on a straight-line basis over a one-year period. The Company’s net loss for the nine months ended September 30, 2019 and 2018 includes approximately $409,000 and $491,500, respectively, of non-cash compensation expense related to the RSU grants to the board of directors. This expense is recorded as a component of selling, general and administrative expenses. In June 2019, a board member retired and 7,326 of his unvested RSUs were forfeited which were valued at approximately $47,000. In addition, in April 2019, the Company granted 6,677 RSUs to one of its board members as partial compensation for the 2019 year. RSUs vest quarterly on a straight-line basis over a one-year period. The Company’s net loss for the nine months ended September 30, 2019 includes approximately $29,000 of non-cash compensation expense related to the RSU grants to the board member. I as partial compensation for the 2019 year The Company’s net loss for the nine months ended September 30, 2019 includes approximately $15,000 of non-cash compensation expense related to the RSU grants to the board of directors. In April 2019, the Company granted 4,950 shares of common stock to various employees. For the nine months ended September 30, 2019, approximately $6,000 of compensation expense is included in selling, general and administrative expenses and approximately $26,000 of compensation expense is included in cost of sales for this grant. In January 2018, the Company granted 5,130 shares of common stock to various employees. For the nine months ended September 30, 2018, approximately $10,000 of compensation expense is included in selling, general and administrative expenses and approximately $36,000 of compensation expense is included in cost of sales for this grant. In March 2018, the Company granted 68,764 shares of common stock to various employees. In the event that any of these employees voluntarily terminates their employment prior to certain dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. These shares will be expensed during various periods through March 2022 based upon the service and performance thresholds. For the nine months ended September 30, 2019, approximately $197,000 of compensation expense is included in selling, general and administrative expenses and approximately $38,000 of compensation expense is included in cost of sales for this grant. In April 2019, the Company granted 94,972 shares of common stock to various employees. In the event that any of these employees voluntarily terminates their employment prior to certain dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. These shares will be expensed during various periods through March 2023 based upon the service and performance thresholds. For the nine months ended September 30, 2019, approximately $137,000 of compensation expense is included in selling, general and administrative expenses and approximately $42,000 of compensation expense is included in cost of sales for this grant. On February 12, 2019, these employees returned 1,221 common shares, valued at approximately $7,893, to pay the employees’ withholding taxes. In April 2019, 11,193, 8,299 and 8,593 of the shares granted in 2016, 2017 and 2018, respectively, were forfeited because the Company failed to achieve certain performance criteria for the year ended December 31, 2018. In addition, on April 2, 2019, these employees returned 9,806 common shares, valued at approximately $64,000, to pay the employees’ withholding taxes. In March 2018, 12,330 and 9,130 of the shares granted in 2016 and 2017, respectively, were forfeited because the Company failed to achieve certain performance criteria for the year ended December 31, 2017. In addition, on March 22, 2018, these employees returned 7,552 common shares, valued at approximately $62,000, to pay the employees’ withholding taxes. A summary of the status of the Company’s stock option plans as of September 30, 2019 and changes during the nine months ended September 30, 2019 is as follows: Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of period 41,772 $ 7.58 Exercised during the period 35,000 $ 6.60 Forfeited during the period 6,772 Outstanding and exercisable at end of period — $ 0.00 0.0 $ 0 During the nine months ended September 30, 2019, 35,000 stock options were exercised, pursuant to the provisions of the stock option plan, where the Company received no cash and 34,478 shares of its common stock in exchange for the 35,000 shares issued in the exercise. The 34,478 shares that the Company received were valued at $231,003, the fair market value of the shares on the date of exercise. During the nine months ended September 30, 2018, no stock options were granted or exercised.

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE	8. Fair Value Fair Value At September 30, 2019 and December 31, 2018, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. September 30, 2019 (restated) Carrying Amount Fair Value Debt Line of credit and long-term debt $ 31,609,494 $ 31,609,494 December 31, 2018 (restated) Carrying Amount Fair Value Debt Line of credit and long-term debt $ 30,349,904 $ 30,349,904 We estimated the fair value of debt using market quotes and calculations based on market rates.

CONTRACT ASSETS AND CONTRACT LI

CONTRACT ASSETS AND CONTRACT LIABILITIES	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
CONTRACT ASSETS AND CONTRACT LIABILITIES	9. Contract assets and contract liabilities Contract assets represent revenue recognized on contracts in excess of amounts invoiced to the customer and the Company’s right to consideration is conditional on something other than the passage of time. Amounts may not exceed their net realizable value. Under the typical payment terms of our government contracts, the customer retains a portion of the contract price until completion of the contract, as a measure of protection for the customer. Our government contracts therefore typically result in revenue recognized in excess of billings, which we present as contract assets. Contract assets are classified as current. The Company’s contract liabilities represent customer payments received or due from the customer in excess of revenue recognized. Contract liabilities are classified as current. Revenue recognized year to date at September 30, 2019 and September 30, 2018, that was included in the contract liabilities balance as of January 1, 2019 was $5.2 million and as of January 1, 2018 was $75,000.

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
LOSS PER COMMON SHARE	10. LOSS PER COMMON SHARE Basic loss per common share is computed using the weighted average number of common shares outstanding. Diluted loss per common share for the three and nine months ended September 30, 2019 and 2018 is computed using the weighted-average number of common shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock, as well as unvested RSUs. Incremental shares of 18,672 were not used in the calculation of diluted income per common share in the three and nine months ended September 30, 2019, as the Company is at a loss position and these shares would be considered anti-dilutive. Incremental shares of 49,641 were not used in the calculation of diluted loss per common share in the three and nine months ended September 30, 2018, as the Company is at a loss position and these shares would be considered anti-dilutive. Incremental shares of 43,064 were not used in the calculation of diluted loss per common share in the three and nine months ended September 30, 2018, as their exercise price was in excess of the Company’s average stock price for the respective period and, accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation, as they would be anti-dilutive.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
DEBT	11. Debt On March 24, 2016, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with BankUnited, N.A. as a lender and the sole arranger, administrative agent and collateral agent and Citizens Bank N.A. (the “BankUnited Facility”). The BankUnited Facility provided for a revolving credit loan commitment of $30 million (the “Revolving Loan”) and a $10 million term loan (“Term Loan”). The Revolving Loan bears interest at a rate based upon a pricing grid, as defined in the agreement. On June 25, 2019, the Company entered into a Fifth Amendment (the “Fifth Amendment”) to the Credit Agreement. Under the Fifth Amendment, the parties amended the Credit Agreement by extending the maturity date of the Company’s Revolving Loan and Term Loan to June 30, 2021 and making conforming changes to the repayment schedule of the Term Loan. Additionally, in connection with the Fifth Amendment, Citizens Bank, N.A. assigned all of its obligations under the BankUnited Facility to BNB Bank. The BankUnited Facility required us to maintain the following financial covenants: (1) maintain a debt service coverage ratio at the end of each quarter for the trailing four quarter period of no less than 1.5 to 1.0, (2) maintain a minimum net income, after taxes, of no less than $1.00, (3) maintain a maximum leverage ratio at the end of each quarter for the trailing four quarter period of no more than 3.0 to 1.0, and (4) maintain a minimum adjusted EBITDA at the end of each quarter of no less than $2 million. The errors in our consolidated financial statements for the Non-Reliance Periods and our internal control material weaknesses caused us to be in violation of each of the foregoing covenants and other non-financial covenants as of and after March 31, 2018. As of September 30, 2019, the Company was not in compliance with the covenants contained in the BankUnited Facility, as amended. BankUnited has subsequently waived these covenant violations in conjunction with execution of the Sixth Amendment, which further amends the Credit Agreement, Revolving Note and Term Note. In addition to the covenant waivers, on August 24, 2020, we entered into a Sixth Amendment to the Credit Agreement, which further amends the Credit Agreement, Revolving Note, and Term Note. The terms of the Sixth Amendment are discussed below in Note 14, “Subsequent Events”. As of September 30, 2019, the Company had $26.7 million outstanding under the Credit Agreement bearing interest at 5.25%. See Note 14, “Subsequent Events” for further discussion. The BankUnited Facility is secured by all of the Company’s assets. As described above, in connection with the Fifth Amendment, the Company The Company has cumulatively paid approximately $488,000 of total debt issuance costs in connection with the BankUnited Facility, of which approximately $99,000 is included in other assets and $22,000 is a reduction of long-term debt at September 30, 2019. The Term Loan had an initial amount of $10 million, payable in monthly installments, as defined in the Credit Agreement. As of December 31, 2019, pursuant to the Fifth Amendment, the Term Loan had a maturity date of June 31, 2021. The maturities of long-term debt (excluding unamortized debt issuance costs) are as follows Twelve months ending September 30, 2020 $ 2,499,012 2021 2,008,385 2022 193,626 2023 132,220 Thereafter 37,566 Total $ 4,870,809 As of September 30, 2019, the Company was not in compliance with the financial covenants contained in the BankUnited Facility, as amended. BankUnited has subsequently waived these covenant violations in conjunction with execution of the Sixth Amendment, which further amends the Credit Agreement, Revolving Note and Term Note, extended the maturity dates of the Revolving Loan and Term Loan, converted $6 million of the principal outstanding under the Revolving Loan into principal outstanding under the Term Loan and made a corresponding reduction to the availability under the Revolving Loan by $6 million, and amended certain covenants and other provisions of the BankUnited Facility. See Note 14, “Subsequent Events”. In addition to the Term Loan, included in long-term debt are financing leases and notes payable of $1,034,706, including a current portion of $399,012.

MAJOR CUSTOMERS

MAJOR CUSTOMERS	9 Months Ended
	Sep. 30, 2019
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	12. MAJOR CUSTOMERS During the nine months ended September 30, 2019, the Company’s four largest customers accounted for 28% 15%, 13% and 13% of revenue. During the nine months ended September 30, 2018, the Company’s five largest customers accounted for 21%, 15%, 13%, 12% and 11% of revenue. At September 30, 2019, 48% and 16% of contract assets were from the Company’s two largest customers. At December 31, 2018, 53%, 21% and 10% of contract assets were from the Company’s three largest customers. At September 30, 2019, 39% and 12% of our accounts receivable were from our two largest customers. At December 31, 2018, 18%, 16%, 14% and 14% of accounts receivable were from our four largest customers.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	13. Income taxes In February 2019, the Company received information that the net operating loss carryback that was generated in 2014 and carried back to 2012-13 was under examination and could possibly be disallowed by the IRS. As of June 2020, the Company has received notification that the returns will be accepted as filed.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS Restatement Liquidity On August 24, 2020, we entered into a Sixth Amendment and Waiver (“Sixth Amendment”) to our Credit Agreement with BankUnited. In connection with the Sixth Amendment, we also amended the Amended and Restated Revolving Credit Note, dated as of March 24, 2016, which represents an aggregate principal revolving loan commitment amount of $30 million (“Revolving Note”) and the Amended and Restated Term Note, dated as of March 24, 2016, with an original principal amount of $10 million (“Term Note”). Under the Sixth Amendment, and the related amendments to the Revolving Note and Term Note, an aggregate of $6 million of the outstanding balance under the Revolving Note was converted into and added to the outstanding balance on the Term Note. The availability under the Revolving Note was permanently reduced by $6 million, to $24 million, and the outstanding principal amount on the Term Note was increased to approximately $7,933,000. Additionally, under the Sixth Amendment, the parties amended the Credit Agreement by (i) extending the maturity date of the Revolving Note and Term Note to May 2, 2022, and making conforming changes to the payment schedule on the Term Note, (ii) amending the fixed charge coverage ratio covenant by requiring the ratio to be quarterly for September 30, 2020 and December 31, 2020 and then determined on a trailing twelve-month basis beginning on March 31, 2021, (iii) waiving the leverage covenant noncompliance for each quarter ended during the period from March 31, 2018 through December 31, 2019. The leverage covenant will not be tested for the four quarters from March 31, 2020 through December 31, 2020. Then, beginning with the quarter ending March 31, 2021, the funded debt to EBITDA ratio shall be 4.0:1.0, tested on a trailing four quarter basis, (iv) reducing the minimum quarterly EBITDA covenant from $2 million to $1 million beginning on September 30, 2020, (v) maintaining a minimum net income, after taxes, of no less than $1.00 and (vi) replacing the interest pricing grid for the Revolving Note with an interest rate for Eurodollar loans of LIBOR plus 3.25% with a floor of 50 basis points or an interest rate for base rate loans equal to BankUnited’s prime rate plus 0.25%. Additionally, on April 10, 2020, the Company entered into a loan with BNB Bank as the lender (“Lender”) in an aggregate principal amount of $4,795,000 (“PPP Loan”) pursuant to the Paycheck Protection Program, part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The PPP Loan is evidenced by a promissory note (“Note”). Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1%) per annum, with the first six months of interest deferred, has an initial term of two years, and is unsecured and guaranteed by the Small Business Administration. The Company may apply to the Lender for forgiveness of the PPP Loan, with the amount which may be forgiven equal to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the 24-week period beginning on April 10, 2020, calculated in accordance with the terms of the CARES Act, as modified by the Paycheck Protection Flexibility Act. The Note provides for customary events of default including, among other things, cross-defaults on any other loan with the Lender. The PPP Loan may be accelerated upon the occurrence of an event of default. COVID-19 There are many uncertainties regarding the COVID-19 pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its employees, customers, suppliers, and liquidity. On March 20, 2020, the Company was notified that it was considered part of the Defense Industrial Base Essential Critical Infrastructure Workforce, and as such has remained open during the COVID-19 pandemic. However, the COVID-19 pandemic has affected our operations, as described elsewhere in this Quarterly Report on Form 10-Q/A, and the extent to which COVID-19 may affect our operations in future periods will depend on future developments, which are highly uncertain, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or address its impact, among others. The Company is unable to predict the impact that COVID-19 will have on its financial position and operating results. NYSE American Filing Delinquency On April 17, 2020, we received a notice from NYSE Regulation, Inc. stating that, because we failed to file restated financial statements for the Non-Reliance Periods on or before April 14, 2020, we were not in compliance with the NYSE American exchange’s continued listing standards under the timely filing criteria included in Section 1007 of the Company Guide. In accordance with Section 1007 of the Company Guide, we have six months from April 15, 2020, or until October 15, 2020, to file restated financial statements for the Non-Reliance Periods. The Annual Report on Form 10-K, which we will file immediately after the filing of this Quarterly Report on Form 10-Q/A, along with this Quarterly Report on Form 10-Q/A and the Quarterly Reports on Forms 10-Q/A for the quarters ended March 31, 2019 and June 30, 2019, together constitutes such filing and, accordingly, as of the date of this filing we expect to regain compliance with the NYSE American exchange’s continued listing standards. G650 Order Stop-Work and Status On April 29, 2020, the Company received a letter from Triumph Group stating that due to the COVID-19 pandemic, it had received a significant schedule change from its customer, Gulfstream Aerospace, and requested CPI Aero immediately stop work on the contract we have to produce certain fixed leading edge assemblies on the wing of the G650 business jet. In May 2020, Triumph Group cancelled nearly all open orders with the Company, decreasing our G650 leading edge backlog by $3.6 million. On May 27, 2020, Triumph Group announced it had reached an agreement in principle to sell the G650 wing program to Gulfstream Aerospace. On June 12, 2020, the Company received a joint communication from Gulfstream Aerospace and Triumph Group that stated Gulfstream’s intention at the conclusion of the transaction is to continue to purchase G650 wing components from the Company and that they would provide further details to the Company in the coming weeks. The Company is unable to predict when the transaction between Gulfstream and Triumph Group will close or when Gulfstream will begin purchasing G650 wing components from us, if at all. Business Combinations The purchase price for the acquisition was $7.9 million, which was subject to a post-closing working capital adjustment. $2 million dollars of the purchase price was placed in escrow at closing and was to be released after the completion of the working capital adjustment and for the indemnification contingencies. The working capital adjustment is based on the historical values of components of working capital as defined in the SPA. The Company calculated a post-closing working capital adjustment. Air Industries formally objected to the calculation. The SPA provided the parties 30 days to come to an agreement on the working capital adjustment. The Company and Air Industries could not come to an agreement within the time specified and the issues were submitted to BDO for a binding resolution. During the course of BDO’s work, Air Industries conceded on three of the four items of contention, leaving only the inventory valuation in dispute. In its report dated September 3, 2019, BDO found in favor of the Company and that there should be no changes to the Closing Working Capital Statement as prepared by the Company. The result of the conceded items and BDO determination would decrease the purchase price of the acquisition by approximate $4.1 million. On September 16, 2019, the Company received a letter from Air Industries acknowledging the conceded items and, among other things, rejecting the determination by BDO. On September 27, 2019, the Company filed a notice of motion in the Supreme Court of the State of New York, County of New York, against Air Industries seeking, among other things, an order of specific performance requiring Air Industries to comply with its obligations under the SPA and Escrow Agreement and a judgment against Air Industries in the amount of approximately $4.1 million . The parties argued the motion before the court on February 5, 2020. The court’s decision is pending. In October 2019, Air Industries and the Company jointly authorized the release of approximately $619,000 from escrow, which represents the value of the conceded items. The remaining escrowed amount of $1,381,000 is shown as restricted cash on the consolidated balance sheet as of December 31, 2019. The additional disputed amount of approximately $2.1 million is not on the Company’s consolidated balance sheet due to the uncertainty of collection. In the fourth quarter of 2019, the Company recorded adjustments to the provisional estimates of the fair value of the assets acquired and liabilities assumed from WMI related to the BDO determination. Due to new information discovered during the measurement period, adjustments were made to the current period. The Company has determining the fair values of the assets and liabilities acquired and has recorded the fair value of the assets acquired as of December 31 2019, assuming only the collection of the remaining amount escrowed. Collection of the additional $2.2 million is uncertain. Legal Proceedings Working Capital Dispute On September 27, 2019, the Company filed a notice of motion in the Supreme Court of the State of New York, County of New York against Air Industries in connection with a working capital dispute. The Company is seeking, among other things, (i) an order of specific performance requiring Air Industries to comply with its obligations under the Stock Purchase Agreement entered into between the Company and Air Industries on March 21, 2018 and the Escrow Agreement entered into between the Company and Air Industries on December 20, 2018, and (ii) a judgment against Air Industries in the amount of approximately $3.6 million. The parties argued the motion before the court on February 5, 2020. The court’s decision is pending. Class Action Lawsuit On February 24, 2020, Mark A. Rodriguez, a purported stockholder, filed a putative class action lawsuit against the Company, Douglas McCrosson, the Company’s Chief Executive Officer, and Vincent Palazzolo, the Company’s former Chief Financial Officer, in the United States District Court for the Eastern District of New York, arising out of the errors in and restatements of our financial statements. On February 25, 2020, Russell Garret, a purported stockholder, filed a second putative class action lawsuit against the Company and Messrs. McCrosson and Palazzolo, in the United States District Court for the Eastern District of New York, arising out of the same alleged facts. Each plaintiff seeks to represent a class of stockholders who purchased or otherwise acquired the Company’s common stock from May 15, 2018 to February 14, 2020 (“Class Period”). The complaints are almost identical. Both complaints generally allege that the defendants violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated by the SEC by making false and misleading statements in the Company’s periodic reports filed during the Class Period and seek unspecified damages. On May 5, 2020, the court consolidated these two lawsuits. The court also appointed a lead plaintiff and approved plaintiff's selection of lead counsel. On May 20, 2020, the court ordered plaintiff to file a consolidated amended complaint within 30 days of the Company’s issuance of its restated financials. Shareholder Derivative Action On May 7, 2020, a shareholder derivative action was filed against current members of our board of directors and certain of our current and former officers in the United States District Court for the Eastern District of New York. The complaint, which is based substantially on the facts alleged in the class action complaints summarized above, purports to assert derivative claims against the individual defendants for violations of Section 10(b) and 21(d) of the Exchange Act and breach of fiduciary duty, and seeks to recover on behalf of the Company for any liability the Company might incur as a result of the individual defendants’ alleged misconduct. The complaint also seeks declaratory, equitable, injunctive and monetary relief, and attorneys’ fees and other costs. On June 16, 2020, the court ordered plaintiff to file a consolidated amended complaint within 60 days of the Company’s issuance of its restated financials. While the outcome of any litigation is inherently uncertain and the class action and derivative claims are each still at an early stage, the Company and its officers and directors intend to vigorously defend against the claims and believe the claims are without merit. Books and Records Action On June 5, 2020, a lawsuit to compel inspection of books and records was filed against the Company in the Supreme Court of New York State, Suffolk County, captioned Berger v. CPI Aerostructures, Inc. The complaint, which is based substantially on the facts alleged in the class action complaints summarized above, seeks to compel the inspection of corporate books and records pursuant to New York common law. The complaint also seeks attorneys’ fees and other costs. The Company’s deadline to answer, move or otherwise respond to the complaint is August 31, 2020. SEC Investigation On May 22, 2020, the Company received a letter (the “SEC Letter”) from the SEC Division of Enforcement (the “Division”) indicating that the Division staff is conducting an investigation involving the Company. The SEC Letter states that the investigation is a non-public, fact finding inquiry where the Division staff is trying to determine whether there have been any violations of federal securities laws. As part of this investigation, the Division issued a subpoena to the Company seeking documents and information relating, among other things, to previously-disclosed errors in and restatement of, the Company’s financial statements, the Company’s October 16, 2018 equity offering and the recent separation of the Company’s former Chief Financial Officers. The SEC Letter states that the investigation and the subpoena do not mean that the Division staff has concluded that the Company or anyone else have violated the federal securities laws and that the investigation does not mean that the Division staff has a negative opinion of any person, entity or security. We intend to fully cooperate with the Division staff. We cannot predict the length, scope, or results of the investigation or the impact, if any, of the investigation on our results of operations.

RESTATEMENT OF PREVIOUSLY ISSUE

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS	15. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS On February 14, 2020, the Company filed a Form 8-K disclosing that the Audit & Finance Committee of the Company’s Board of Directors determined, based on the recommendation of management, that the Company’s consolidated financial statements which were included in its annual report on Form 10-K for the year ended December 31, 2018, quarterly reports on Forms 10-Q for the quarters ended March 31, 2018, June 30, 2018, and September 30, 2018 and quarterly reports on Forms 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 and related financial information should no longer be relied upon, and determined that the consolidated financial statements will be restated. The errors were uncovered as part of the preparation of the Company’s consolidated financial statements for the fiscal year ended December 31, 2019. As a result, the Company restated the 2018 consolidated financial statements, which is referred to as the “Restatement.” The Restatement corrects errors which are discussed in detail within this footnote. The errors primarily related to the timing of recognition of revenue from contracts with customers. Restatement The following is a discussion of the restatement adjustments that were made to the Company’s previously issued September 30, 2019 and September 30, 2018 consolidated financial statements. (a) Revenue recognition The Company recognizes revenues and profits for contracts with customers using the cost-to-cost percentage of completion method of accounting. Historically, for long-term programs, the Company applied the cost-to-cost percentage of completion method at the program level, that is, for the entire duration of expected production activity on a particular program. The Company estimated its revenue recognition utilizing the life of the program to both measure progress and estimate profit margin. Under this approach, the Company estimated the total expected customer purchases over the life of the program, which included unexercised and non-binding customer purchase options, which resulted in the recognition of $109.6 million and $100.9 million of misstated contract assets, contract liabilities and loss reserves for the nine months ended September 30, 2019 and year ended December 31, 2018, respectively. The Company has now concluded that its life of the program accounting was not an appropriate application of ASC Topic 606. Under ASC Topic 606, the performance obligation is the appropriate unit of accounting. The Company identifies performance obligations to customers once a contract is established in accordance with ASC Topic 606. For the Company, the contract under ASC Topic 606 is typically established upon execution of a purchase order either in accordance with a long-term customer agreement or on a standalone basis. The transaction price is also determined at the contract level and excludes amounts related to unexercised customer options. Similarly, the Company’s cost-to-cost input method to measure progress must consider only the costs incurred relative to the total expected costs of satisfying the performance obligations identified in the contract, exclusive of unexercised customer options. To correct these errors, the related revenue was reversed in the period in which the accounting errors took place and recognized in subsequent periods as control of the goods or services in the contract passed to the customer over time based on a cost-to-cost input method measure of progress. Additionally, certain adjustments to contract assets and contract liabilities were made to the consolidated balance sheet at the end of the period in which the accounting errors occurred. (b) Other The Company corrected other immaterial misstatements relating to prior passed audit adjustments. (c) Income taxes The Company has recorded tax adjustments related to the impact of the Restatement. Impact on Consolidated Statements of Operations The effect of the Restatement described above on the accompanying consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 As Previously Revenue Other Income As Restated Revenue $ 25,711,153 $ (3,021,391 ) $ — $ — $ 22,689,762 Cost of sales 20,748,065 (85,882 ) 95,466 — 20,757,649 Gross profit 4,963,088 (2,935,509 ) (95,466 ) — 1,932,113 Selling, general and administrative expenses 2,594,980 — 211,518 — 2,806,498 Loss from operations 2,368,108 (2,935,509 ) (306,984 ) — (874,385 ) Interest expense 378,195 — — — 378,195 Loss before provision for income taxes 1,989,913 (2,935,509 ) (306,984 ) — (1,252,580 ) Provision for (benefit from) income taxes 323,000 — — (320,529 ) 2,471 Net income (loss) $ 1,666,913 $ (2,935,509 ) $ (306,984 ) $ 320,529 $ (1,255,051 ) Income (loss) per common share – basic $ 0.14 $ (0.11 ) Income (loss) per common share – diluted $ 0.14 $ (0.11 ) Shares used in computing earnings per common share: Basic 11,838,862 11,838,862 Diluted 11,857,534 11,838,862 Nine Months Ended September 30, 2019 As Previously Revenue Other Income As Restated Revenue $ 74,452,935 $ (9,673,077 ) $ — $ — $ 64,779,858 Cost of sales 59,117,855 (924,331 ) (72,837 ) — 58,120,687 Gross profit 15,335,080 (8,748,746 ) 72,837 — 6,659,171 Selling, general and administrative expenses 8,110,736 — 149,209 — 8,259,945 Income (loss) from operations 7,224,344 (8,748,746 ) (76,372 ) — (1,600,774 ) Interest expense 1,464,376 — — — 1,464,376 Income (loss) before provision for (benefit from) income taxes 5,759,968 (8,748,746 ) (76,372 ) — (3,065,150 ) Provision for (benefit from) income taxes (276,000 ) — — 281,784 5,784 Net income (loss) $ 6,035,968 $ (8,748,746 ) $ (76,372 ) $ (281,784 ) $ (3,070,934 ) Income (loss) per common share – basic $ 0.51 $ (0.26 ) Income (loss) per common share – diluted $ 0.51 $ (0.26 ) Shares used in computing earnings per common share: Basic 11,796,580 11,796,580 Diluted 11,815,252 11,796,580 Three Months Ended September 30, 2018 As Previously Revenue Other Income As Restated Revenue $ 19,017,301 $ (3,174,691 ) $ — $ — $ 15,842,610 Cost of sales 15,146,080 121,228 — — 15,267,308 Gross profit 3,871,221 (3,295,919 ) — — 575,302 Selling, general and administrative expenses 2,584,560 — (60,433 ) — 2,524,127 Income (loss) from operations 1,286,661 (3,295,919 ) 60,433 — (1,948,825 ) Interest expense 574,765 — — — 574,765 Income (loss) before provision for income taxes 711,896 (3,295,919 ) 60,433 — (2,523,590 ) Provision for income taxes 126,000 — — (125,264 ) 736 Net income (loss) 585,896 (3,295,919 ) 60,433 125,264 (2,524,326 ) Other comprehensive income (loss) net of tax – Change in unrealized loss-on interest rate swap 20,600 — — — 20,600 Comprehensive income (loss) $ 606,496 $ (3,295,919 ) $ 60,433 $ 125,264 $ (2,503,726 ) Income (loss) per common share – basic $ 0.07 $ (0.28 ) Income (loss) per common share – diluted $ 0.07 $ (0.28 ) Shares used in computing earnings per common share: Basic 8,952,979 8,952,979 Diluted 8,977,075 8,952,979 Nine Months Ended September 30, 2018 As Previously Revenue Other Income As Restated Revenue $ 57,470,163 $ (9,461,923 ) $ — $ — $ 48,008,240 Cost of sales 44,964,256 601,772 (280,143 ) — 45,285,885 Gross profit 12,505,907 (10,063,695 ) 280,143 — 2,722,355 Selling, general and administrative expenses 7,192,159 — (60,433 ) — 7,131,726 Income (loss) from operations 5,313,748 (10,063,695 ) 340,576 — (4,409,371 ) Interest expense 1,438,862 — — — 1,438,862 Income (loss) before provision for income taxes 3,874,886 (10,063,695 ) 340,576 — (5,848,233 ) Provision for income taxes 775,000 — — (771,894 ) 3,106 Net income (loss) 3,099,886 (10,063,695 ) 340,576 771,894 (5,851,339 ) Other comprehensive income (loss) net of tax – Change in unrealized loss-on interest rate swap 14,800 — — — 14,800 Comprehensive income $ 3,114,686 $ (10,063,695 ) $ 340,576 $ 771,894 $ (5,836,539 ) Income per common share – basic $ 0.35 $ (0.66 ) Income per common share – diluted $ 0.35 $ (0.66 ) Shares used in computing earnings per common share: Basic 8,926,734 8,926,734 Diluted 8,951,640 8,926,734 Impact on Consolidated Balance Sheets The effect of the Restatement described above on the accompanying consolidated balance sheets as of September 30, 2019 and December 31, 2018 is as follows: As of September 30, 2019 As Revenue Other Income Taxes As Restated ASSETS Current Assets: Cash $ 468,536 $ — $ — $ — $ 468,536 Restricted cash 2,000,000 — — — 2,000,000 Accounts receivable, net 10,284,768 — — — 10,284,768 Contract assets 121,458,084 (106,971,069 ) — — 14,487,015 Inventory 10,404,058 — (277,549 ) — 10,126,509 Refundable income taxes 435,000 — (435,000 ) 623,538 623,538 Prepaid expenses and other current assets 966,522 — — — 966,522 Total Current Assets 146,016,968 (106,971,069 ) (712,549 ) 623,538 38,956,888 Operating lease right-of-use assets 4,259,868 — — — 4,259,868 Property and equipment, net 3,137,194 — — — 3,137,194 Refundable income taxes — — — 434,903 434,903 Deferred income taxes — — 435,000 (435,000 ) — Other assets 207,096 — — — 207,096 Total Assets $ 153,621,126 $ (106,971,069 ) $ (277,549 ) $ 623,441 $ 46,995,949 Liabilities and Shareholders’ Equity (Deficit) Current Liabilities: Accounts payable $ 10,892,353 $ — $ — $ — $ 10,892,353 Accrued expenses 1,458,961 — 182,176 — 1,641,137 Contract liabilities 1,606,649 (45,106 ) — — 1,561,543 Loss reserve 216,606 2,678,439 — — 2,895,045 Current portion of long-term debt 2,499,012 — — — 2,499,012 Operating lease liabilities 1,673,244 — — — 1,673,244 Income taxes payable — — — 119,776 119,776 Total Current Liabilities 18,346,825 2,633,333 182,176 119,776 21,282,110 Line of credit 26,738,685 — — — 26,738,685 Long-term operating lease liabilities 3,033,710 — — — 3,033,710 Long-term debt, net of current portion 2,371,797 — — — 2,371,797 Deferred income taxes 2,964,600 — — (2,964,600 ) — Total Liabilities 53,455,617 2,633,333 182,176 (2,844,824 ) 53,426,302 Shareholders’ Equity (Deficit): Common stock 11,839 — — — 11,839 Additional paid-in capital 71,357,487 — (132,209 ) — 71,225,278 Accumulated deficit 28,796,183 (109,604,402 ) (327,516 ) 3,468,265 (77,667,470 ) Retained Earnings (accumulated deficit) 100,165,509 (109,604,402 ) (459,725 ) 3,468,265 (6,430,353 ) Total Shareholders’ Equity (Deficit) 100,165,509 (109,604,402 ) (459,725 ) 3,468,265 (6,430,353 ) Total Liabilities and Shareholders’ Equity (Deficit) $ 153,621,126 $ (106,971,069 ) $ (277,549 ) $ 623,441 $ 46,995,949 As of December 31, 2018 As Revenue Other Income Taxes As Restated ASSETS Current Assets: Cash $ 4,128,142 $ — $ — $ — $ 4,128,142 Restricted cash 2,000,000 — — — 2,000,000 Accounts receivable, net 8,623,329 — 99,242 — 8,722,571 Contract assets 113,333,491 (95,744,625 ) — — 17,588,866 Inventory 9,711,997 — (350,386 ) — 9,361,611 Refundable income taxes 435,000 — — (97 ) 434,903 Prepaid expenses and other current a assets 1,972,630 — — — 1,972,630 Total Current Assets 140,204,589 (95,744,625 ) (251,144 ) (97 ) 44,208,723 Property and equipment, net 2,545,192 — — — 2,545,192 Refundable income taxes 435,000 — — (97 ) 434,903 Deferred income taxes 279,318 — — (279,318 ) — Other assets 249,575 — — — 249,575 Total Assets $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 Liabilities and Shareholders' Equity (Deficit) Current Liabilities: Accounts payable $ 9,902,481 $ — $ — $ — $ 9,902,481 Accrued expenses 1,558,160 — — — 1,558,160 Contract liabilities 3,588,500 1,664,079 — — 5,252,579 Loss reserve 216,606 3,446,952 — — 3,663,558 Current portion of long-term debt 2,434,981 — — — 2,434,981 Income taxes payable 115,000 — — (1,008 ) 113,992 Total Current Liabilities 17,815,728 5,111,031 — (1,008 ) 22,925,751 Line of credit 24,038,685 — — — 24,038,685 Long-term debt, net of current portion 3,876,238 — — — 3,876,238 Deferred income taxes 4,028,553 — — (4,028,553 ) — Other liabilities 531,124 — — — 531,124 Total Liabilities 50,290,328 5,111,031 — (4,029,561 ) 51,371,798 Shareholders' Equity(Deficit): Common stock 11,718 — — — 11,718 Additional paid-in capital 70,651,413 — — — 70,651,413 Retained earnings (accumulated deficit) 22,760,215 (100,855,656 ) (251,144 ) 3,750,049 (74,596,536 ) Total Shareholders’ Equity (Deficit) 93,423,346 (100,855,656 ) (251,144 ) 3,750,049 (3,933,405 ) Total Liabilities and Shareholders' Equity (Deficit) $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 Cumulative Effect of Prior Period Adjustments The following table presents the impact of the Restatement on the Company’s shareholders’ equity (deficit) as of January 1, 2018: Common Additional Retained Accumulated Total Balance, January 1, 2018 (As previously reported) $ 8,864 $ 53,770,617 $ 20,548,652 $ (14,800 ) $ 74,313,333 Adjustments: Revenue recognition — — (86,621,280 ) — (86,621,280 ) Other — — (280,143 ) — (280,143 ) Income taxes — — (697,012 ) — (697,012 ) Cumulative restatement adjustments — — (87,598,435 ) — (87,598,435 ) Balance, January 1, 2018 (As Restated) $ 8,864 $ 53,770,617 $ (67,049,783 ) $ (14,800 ) $ (13,285,102 ) Impact on Consolidated Statement of Cash Flows The effect of the Restatement described above on the accompanying consolidated statement of cash flows for the nine months ended September 30, 2019 and 2018 is as follows: Nine Months Ended September 30, 2019 As Previously Reported Restatement Adjustments As Restated Cash flows from operating activities: Net income (loss) $ 6,035,968 $ (9,106,902 ) $ (3,070,934 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 729,319 — 729,319 Amortization of debt issuance cost 67,479 — 67,479 Cash expended in excess of expenses rent expense (84,036 ) — (84,036 ) Bad debt expense 99,242 99,242 Stock-based compensation 793,440 (132,209 ) 661,231 Common stock issued as employee compensation 32,324 — 32,324 Deferred income taxes (784,635 ) 784,635 — Changes in operating assets and liabilities: Increase in accounts receivable (1,661,439 ) — (1,661,439 ) (Increase) decrease in contract assets (8,124,593 ) 11,226,444 3,101,851 Increase in inventory (692,061 ) (72,837 ) (764,898 ) (Increase) decrease in refundable income taxes 435,000 (623,635 ) (188,635 ) Decrease in prepaid expenses and other current assets 797,622 — 797,622 Increase in accounts payable and accrued expenses 890,672 182,177 1,072,849 Decrease in contract liabilities (2,359,976 ) (1,709,185 ) (4,069,161 ) Decrease in loss reserve — (768,514 ) (768,514 ) Increase (decrease) in income taxes payable (115,000 ) 120,784 5,784 Net cash used in operating activities (4,039,916 ) — (4,039,916 ) Cash flows from investing activities: Purchase of property and equipment (334,909 ) — (334,909 ) Net cash used in investing activities (334,909 ) — (334,909 ) Cash flows from financing activities: Payments of long-term debt (1,840,210 ) — (1,840,210 ) Proceeds from line of credit 3,000,000 — 3,000,000 Payments of line of credit (300,000 ) — (300,000 ) Stock offering costs paid (119,571 ) — (119,571 ) Debt issuance costs (25,000 ) — (25,000 ) Net cash provided by financing activities 715,219 — 715,219 Net decrease in cash and restricted cash (3,659,606 ) — (3,659,606 ) Cash and restricted cash at beginning of period 6,128,142 — 6,128,142 Cash and restricted cash at end of period $ 2,468,536 $ — $ 2,468,536 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 1,406,581 $ — $ 1,406,581 Cash paid during the period for income taxes $ 103,927 $ — $ 103,927 Supplemental schedule of noncash investing and financing activities: Equipment acquired under financing lease $ 399,800 $ — $ 399,800 Nine Months Ended September 30, 2018 As Previously Reported Restatement Adjustments As Restated Cash flows from operating activities: Net income (loss) $ 3,099,886 $ (8,951,225 ) $ (5,851,339 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 521,255 — 521,255 Amortization of debt issuance cost 58,990 — 58,990 Cash expended in excess of expenses rent expense (53,073 ) — (53,073 ) Stock-based compensation 536,170 — 536,170 Common stock issued as employee compensation 45,913 — 45,913 Adjustment for maturity of interest rate swap 20,600 (5,800 ) 14,800 Bad debt expense 125,000 150,000 275,000 Deferred income taxes 881,500 (881,500 ) — Changes in operating assets and liabilities: Increase in accounts receivable (1,109,365 ) (150,000 ) (1,259,365 ) (Increase) decrease in contract assets (2,009,154 ) 9,854,745 7,845,591 Increase in inventory (95,268 ) — (95,268 ) Decrease in prepaid expenses and other current assets 177,625 — 177,625 Decrease in accounts payable and accrued expenses (5,347,688 ) (340,577 ) (5,688,265 ) Increase in contract liabilities 173,560 (2,975 ) 170,585 Increase in loss reserve 44,933 211,925 256,858 Decrease in other liabilities (10,976 ) 5,801 (5,175 ) Increase (decrease) in income taxes payable (109,327 ) 109,606 279 Net cash used in operating activities (3,049,419 ) — (3,049,419 ) Cash flows from investing activities: Purchase of property and equipment (521,499 ) — (521,499 ) Net cash used in investing activities (521,499 ) — (521,499 ) Cash flows from financing activities: Payments of long-term debt (1,522,283 ) — (1,522,283 ) Proceeds from line of credit 6,200,000 — 6,200,000 Payments of line of credit (1,500,000 ) — (1,500,000 ) Debt issuance costs (209,082 ) — (209,082 ) Net cash provided by financing activities 2,968,635 — 2,968,635 Net decrease in cash (602,283 ) — (602,283 ) Cash at beginning of period 1,430,877 — 1,430,877 Cash at end of period $ 828,594 $ — $ 828,594 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 1,601,144 $ — $ 1,601,144 Supplemental schedule of noncash investing and financing activities: Equipment acquired under financing lease $ 649,158 $ — $ 649,158

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Schedule of provisional estimates of the fair value of the assets acquired and liabilities assumed from WMI	As stated above, as of September 30, 2019, the Company determined the following provisional estimates of the fair value of the assets acquired and liabilities assumed from WMI: Provisional Fair Values Other current assets $ 1,049,000 Accounts receivable 1,522,000 Inventory 7,969,000 Property and equipment, net 586,000 Current liabilities (5,174,000 ) Total $ 5,952,000
Schedule of pro forma revenue and net income for acquisition	The following table presents the unaudited pro forma revenue and net income for the period presented as if the WMI Acquisition had occurred on January 1, 2018, based on the provisional estimates of the fair value of the net assets acquired: Three months ended Nine months ended September 30, 2018 Revenue $ 20,794,052 $ 59,404,526 Net loss $ (1,840,990 ) $ (5,189,733 )

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Schedule of revenue by contract type	The following tables present the Company’s revenue disaggregated by contract type: Three months ended Nine months ended 2019 2018 2019 2018 Aerostructures $ 9,351,578 $ 8,026,046 $ 30,121,858 $ 25,210,894 Aerosystems 7,721,955 3,905,924 22,267,233 9,593,274 Kitting and Supply Chain Management 5,616,229 3,910,640 12,390,767 13,204,072 $ 22,689,762 $ 15,842,610 $ 64,779,858 $ 48,008,240

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of aggregate minimum lease payments under non-cancellable operating leases	Future minimum lease payments under non-cancellable operating leases as of September 30, 2019 were as follows: Twelve months ending September 30, 2020 $ 1,910,384 2021 1,953,865 2022 1,175,727 2023 55,322 2024 11,631 Total undiscounted operating lease payments 5,106,929 Less imputed interest (399,975 ) Present value of operating lease payments $ 4,706,954
Schedule of ROU assets and operating lease liabilities	The following table sets forth the ROU assets and operating lease liabilities as of September 30, 2019: Assets ROU Assets $ 4,259,868 Liabilities Current operating lease liabilities $ 1,673,244 Long-term operating lease liabilities 3,033,710 Total ROU liabilities $ 4,706,954

RECONCILIATION OF CASH AND RE_2

RECONCILIATION OF CASH AND RESTRICTED CASH (Tables)	9 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents [Abstract]
Schedule of reconciliation of cash and restricted cash	The following table provides a reconciliation of cash and restricted cash reported within the statement of cash flows that sum to the total of the same such amounts shown in the consolidated statement of cash flows: September 30, 2019 September 30, 2018 Cash $ 468,536 $ 828,594 Restricted cash 2,000,000 — Total cash and restricted cash shown in the consolidated statement of cash flow $ 2,468,536 $ 828,594

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of components of inventory	The components of inventory consisted of the following: September 30, 2019 (restated) December 31, 2018 Raw materials $ 1,843,621 $ 2,591,872 Work in progress 6,308,759 4,015,028 Finished goods 1,974,129 2,754,711 Total $ 10,126,509 $ 9,361,611

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock options plans activity	A summary of the status of the Company’s stock option plans as of September 30, 2019 and changes during the nine months ended September 30, 2019 is as follows: Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of period 41,772 $ 7.58 Exercised during the period 35,000 $ 6.60 Forfeited during the period 6,772 Outstanding and exercisable at end of period — $ 0.00 0.0 $ 0

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of fair values	At September 30, 2019 and December 31, 2018, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. September 30, 2019 (restated) Carrying Amount Fair Value Debt Line of credit and long-term debt $ 31,609,494 $ 31,609,494 December 31, 2018 (restated) Carrying Amount Fair Value Debt Line of credit and long-term debt $ 30,349,904 $ 30,349,904

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of maturities of long-term debt	The maturities of long-term debt (excluding unamortized debt issuance costs) are as follows Twelve months ending September 30, 2020 $ 2,499,012 2021 2,008,385 2022 193,626 2023 132,220 Thereafter 37,566 Total $ 4,870,809

RESTATEMENT OF PREVIOUSLY ISS_2

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
Schedule of Impact on Financial Statements	The effect of the Restatement described above on the accompanying consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 As Previously Revenue Other Income As Restated Revenue $ 25,711,153 $ (3,021,391 ) $ — $ — $ 22,689,762 Cost of sales 20,748,065 (85,882 ) 95,466 — 20,757,649 Gross profit 4,963,088 (2,935,509 ) (95,466 ) — 1,932,113 Selling, general and administrative expenses 2,594,980 — 211,518 — 2,806,498 Loss from operations 2,368,108 (2,935,509 ) (306,984 ) — (874,385 ) Interest expense 378,195 — — — 378,195 Loss before provision for income taxes 1,989,913 (2,935,509 ) (306,984 ) — (1,252,580 ) Provision for (benefit from) income taxes 323,000 — — (320,529 ) 2,471 Net income (loss) $ 1,666,913 $ (2,935,509 ) $ (306,984 ) $ 320,529 $ (1,255,051 ) Income (loss) per common share – basic $ 0.14 $ (0.11 ) Income (loss) per common share – diluted $ 0.14 $ (0.11 ) Shares used in computing earnings per common share: Basic 11,838,862 11,838,862 Diluted 11,857,534 11,838,862 Nine Months Ended September 30, 2019 As Previously Revenue Other Income As Restated Revenue $ 74,452,935 $ (9,673,077 ) $ — $ — $ 64,779,858 Cost of sales 59,117,855 (924,331 ) (72,837 ) — 58,120,687 Gross profit 15,335,080 (8,748,746 ) 72,837 — 6,659,171 Selling, general and administrative expenses 8,110,736 — 149,209 — 8,259,945 Income (loss) from operations 7,224,344 (8,748,746 ) (76,372 ) — (1,600,774 ) Interest expense 1,464,376 — — — 1,464,376 Income (loss) before provision for (benefit from) income taxes 5,759,968 (8,748,746 ) (76,372 ) — (3,065,150 ) Provision for (benefit from) income taxes (276,000 ) — — 281,784 5,784 Net income (loss) $ 6,035,968 $ (8,748,746 ) $ (76,372 ) $ (281,784 ) $ (3,070,934 ) Income (loss) per common share – basic $ 0.51 $ (0.26 ) Income (loss) per common share – diluted $ 0.51 $ (0.26 ) Shares used in computing earnings per common share: Basic 11,796,580 11,796,580 Diluted 11,815,252 11,796,580 Three Months Ended September 30, 2018 As Previously Revenue Other Income As Restated Revenue $ 19,017,301 $ (3,174,691 ) $ — $ — $ 15,842,610 Cost of sales 15,146,080 121,228 — — 15,267,308 Gross profit 3,871,221 (3,295,919 ) — — 575,302 Selling, general and administrative expenses 2,584,560 — (60,433 ) — 2,524,127 Income (loss) from operations 1,286,661 (3,295,919 ) 60,433 — (1,948,825 ) Interest expense 574,765 — — — 574,765 Income (loss) before provision for income taxes 711,896 (3,295,919 ) 60,433 — (2,523,590 ) Provision for income taxes 126,000 — — (125,264 ) 736 Net income (loss) 585,896 (3,295,919 ) 60,433 125,264 (2,524,326 ) Other comprehensive income (loss) net of tax – Change in unrealized loss-on interest rate swap 20,600 — — — 20,600 Comprehensive income (loss) $ 606,496 $ (3,295,919 ) $ 60,433 $ 125,264 $ (2,503,726 ) Income (loss) per common share – basic $ 0.07 $ (0.28 ) Income (loss) per common share – diluted $ 0.07 $ (0.28 ) Shares used in computing earnings per common share: Basic 8,952,979 8,952,979 Diluted 8,977,075 8,952,979 Nine Months Ended September 30, 2018 As Previously Revenue Other Income As Restated Revenue $ 57,470,163 $ (9,461,923 ) $ — $ — $ 48,008,240 Cost of sales 44,964,256 601,772 (280,143 ) — 45,285,885 Gross profit 12,505,907 (10,063,695 ) 280,143 — 2,722,355 Selling, general and administrative expenses 7,192,159 — (60,433 ) — 7,131,726 Income (loss) from operations 5,313,748 (10,063,695 ) 340,576 — (4,409,371 ) Interest expense 1,438,862 — — — 1,438,862 Income (loss) before provision for income taxes 3,874,886 (10,063,695 ) 340,576 — (5,848,233 ) Provision for income taxes 775,000 — — (771,894 ) 3,106 Net income (loss) 3,099,886 (10,063,695 ) 340,576 771,894 (5,851,339 ) Other comprehensive income (loss) net of tax – Change in unrealized loss-on interest rate swap 14,800 — — — 14,800 Comprehensive income $ 3,114,686 $ (10,063,695 ) $ 340,576 $ 771,894 $ (5,836,539 ) Income per common share – basic $ 0.35 $ (0.66 ) Income per common share – diluted $ 0.35 $ (0.66 ) Shares used in computing earnings per common share: Basic 8,926,734 8,926,734 Diluted 8,951,640 8,926,734 The effect of the Restatement described above on the accompanying consolidated balance sheets as of September 30, 2019 and December 31, 2018 is as follows: As of September 30, 2019 As Revenue Other Income Taxes As Restated ASSETS Current Assets: Cash $ 468,536 $ — $ — $ — $ 468,536 Restricted cash 2,000,000 — — — 2,000,000 Accounts receivable, net 10,284,768 — — — 10,284,768 Contract assets 121,458,084 (106,971,069 ) — — 14,487,015 Inventory 10,404,058 — (277,549 ) — 10,126,509 Refundable income taxes 435,000 — (435,000 ) 623,538 623,538 Prepaid expenses and other current assets 966,522 — — — 966,522 Total Current Assets 146,016,968 (106,971,069 ) (712,549 ) 623,538 38,956,888 Operating lease right-of-use assets 4,259,868 — — — 4,259,868 Property and equipment, net 3,137,194 — — — 3,137,194 Refundable income taxes — — — 434,903 434,903 Deferred income taxes — — 435,000 (435,000 ) — Other assets 207,096 — — — 207,096 Total Assets $ 153,621,126 $ (106,971,069 ) $ (277,549 ) $ 623,441 $ 46,995,949 Liabilities and Shareholders’ Equity (Deficit) Current Liabilities: Accounts payable $ 10,892,353 $ — $ — $ — $ 10,892,353 Accrued expenses 1,458,961 — 182,176 — 1,641,137 Contract liabilities 1,606,649 (45,106 ) — — 1,561,543 Loss reserve 216,606 2,678,439 — — 2,895,045 Current portion of long-term debt 2,499,012 — — — 2,499,012 Operating lease liabilities 1,673,244 — — — 1,673,244 Income taxes payable — — — 119,776 119,776 Total Current Liabilities 18,346,825 2,633,333 182,176 119,776 21,282,110 Line of credit 26,738,685 — — — 26,738,685 Long-term operating lease liabilities 3,033,710 — — — 3,033,710 Long-term debt, net of current portion 2,371,797 — — — 2,371,797 Deferred income taxes 2,964,600 — — (2,964,600 ) — Total Liabilities 53,455,617 2,633,333 182,176 (2,844,824 ) 53,426,302 Shareholders’ Equity (Deficit): Common stock 11,839 — — — 11,839 Additional paid-in capital 71,357,487 — (132,209 ) — 71,225,278 Accumulated deficit 28,796,183 (109,604,402 ) (327,516 ) 3,468,265 (77,667,470 ) Retained Earnings (accumulated deficit) 100,165,509 (109,604,402 ) (459,725 ) 3,468,265 (6,430,353 ) Total Shareholders’ Equity (Deficit) 100,165,509 (109,604,402 ) (459,725 ) 3,468,265 (6,430,353 ) Total Liabilities and Shareholders’ Equity (Deficit) $ 153,621,126 $ (106,971,069 ) $ (277,549 ) $ 623,441 $ 46,995,949 As of December 31, 2018 As Revenue Other Income Taxes As Restated ASSETS Current Assets: Cash $ 4,128,142 $ — $ — $ — $ 4,128,142 Restricted cash 2,000,000 — — — 2,000,000 Accounts receivable, net 8,623,329 — 99,242 — 8,722,571 Contract assets 113,333,491 (95,744,625 ) — — 17,588,866 Inventory 9,711,997 — (350,386 ) — 9,361,611 Refundable income taxes 435,000 — — (97 ) 434,903 Prepaid expenses and other current a assets 1,972,630 — — — 1,972,630 Total Current Assets 140,204,589 (95,744,625 ) (251,144 ) (97 ) 44,208,723 Property and equipment, net 2,545,192 — — — 2,545,192 Refundable income taxes 435,000 — — (97 ) 434,903 Deferred income taxes 279,318 — — (279,318 ) — Other assets 249,575 — — — 249,575 Total Assets $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 Liabilities and Shareholders' Equity (Deficit) Current Liabilities: Accounts payable $ 9,902,481 $ — $ — $ — $ 9,902,481 Accrued expenses 1,558,160 — — — 1,558,160 Contract liabilities 3,588,500 1,664,079 — — 5,252,579 Loss reserve 216,606 3,446,952 — — 3,663,558 Current portion of long-term debt 2,434,981 — — — 2,434,981 Income taxes payable 115,000 — — (1,008 ) 113,992 Total Current Liabilities 17,815,728 5,111,031 — (1,008 ) 22,925,751 Line of credit 24,038,685 — — — 24,038,685 Long-term debt, net of current portion 3,876,238 — — — 3,876,238 Deferred income taxes 4,028,553 — — (4,028,553 ) — Other liabilities 531,124 — — — 531,124 Total Liabilities 50,290,328 5,111,031 — (4,029,561 ) 51,371,798 Shareholders' Equity(Deficit): Common stock 11,718 — — — 11,718 Additional paid-in capital 70,651,413 — — — 70,651,413 Retained earnings (accumulated deficit) 22,760,215 (100,855,656 ) (251,144 ) 3,750,049 (74,596,536 ) Total Shareholders’ Equity (Deficit) 93,423,346 (100,855,656 ) (251,144 ) 3,750,049 (3,933,405 ) Total Liabilities and Shareholders' Equity (Deficit) $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 The following table presents the impact of the Restatement on the Company’s shareholders’ equity (deficit) as of January 1, 2018: Common Additional Retained Accumulated Total Balance, January 1, 2018 (As previously reported) $ 8,864 $ 53,770,617 $ 20,548,652 $ (14,800 ) $ 74,313,333 Adjustments: Revenue recognition — — (86,621,280 ) — (86,621,280 ) Other — — (280,143 ) — (280,143 ) Income taxes — — (697,012 ) — (697,012 ) Cumulative restatement adjustments — — (87,598,435 ) — (87,598,435 ) Balance, January 1, 2018 (As Restated) $ 8,864 $ 53,770,617 $ (67,049,783 ) $ (14,800 ) $ (13,285,102 ) The effect of the Restatement described above on the accompanying consolidated statement of cash flows for the nine months ended September 30, 2019 and 2018 is as follows: Nine Months Ended September 30, 2019 As Previously Reported Restatement Adjustments As Restated Cash flows from operating activities: Net income (loss) $ 6,035,968 $ (9,106,902 ) $ (3,070,934 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 729,319 — 729,319 Amortization of debt issuance cost 67,479 — 67,479 Cash expended in excess of expenses rent expense (84,036 ) — (84,036 ) Bad debt expense 99,242 99,242 Stock-based compensation 793,440 (132,209 ) 661,231 Common stock issued as employee compensation 32,324 — 32,324 Deferred income taxes (784,635 ) 784,635 — Changes in operating assets and liabilities: Increase in accounts receivable (1,661,439 ) — (1,661,439 ) (Increase) decrease in contract assets (8,124,593 ) 11,226,444 3,101,851 Increase in inventory (692,061 ) (72,837 ) (764,898 ) (Increase) decrease in refundable income taxes 435,000 (623,635 ) (188,635 ) Decrease in prepaid expenses and other current assets 797,622 — 797,622 Increase in accounts payable and accrued expenses 890,672 182,177 1,072,849 Decrease in contract liabilities (2,359,976 ) (1,709,185 ) (4,069,161 ) Decrease in loss reserve — (768,514 ) (768,514 ) Increase (decrease) in income taxes payable (115,000 ) 120,784 5,784 Net cash used in operating activities (4,039,916 ) — (4,039,916 ) Cash flows from investing activities: Purchase of property and equipment (334,909 ) — (334,909 ) Net cash used in investing activities (334,909 ) — (334,909 ) Cash flows from financing activities: Payments of long-term debt (1,840,210 ) — (1,840,210 ) Proceeds from line of credit 3,000,000 — 3,000,000 Payments of line of credit (300,000 ) — (300,000 ) Stock offering costs paid (119,571 ) — (119,571 ) Debt issuance costs (25,000 ) — (25,000 ) Net cash provided by financing activities 715,219 — 715,219 Net decrease in cash and restricted cash (3,659,606 ) — (3,659,606 ) Cash and restricted cash at beginning of period 6,128,142 — 6,128,142 Cash and restricted cash at end of period $ 2,468,536 $ — $ 2,468,536 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 1,406,581 $ — $ 1,406,581 Cash paid during the period for income taxes $ 103,927 $ — $ 103,927 Supplemental schedule of noncash investing and financing activities: Equipment acquired under financing lease $ 399,800 $ — $ 399,800 Nine Months Ended September 30, 2018 As Previously Reported Restatement Adjustments As Restated Cash flows from operating activities: Net income (loss) $ 3,099,886 $ (8,951,225 ) $ (5,851,339 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 521,255 — 521,255 Amortization of debt issuance cost 58,990 — 58,990 Cash expended in excess of expenses rent expense (53,073 ) — (53,073 ) Stock-based compensation 536,170 — 536,170 Common stock issued as employee compensation 45,913 — 45,913 Adjustment for maturity of interest rate swap 20,600 (5,800 ) 14,800 Bad debt expense 125,000 150,000 275,000 Deferred income taxes 881,500 (881,500 ) — Changes in operating assets and liabilities: Increase in accounts receivable (1,109,365 ) (150,000 ) (1,259,365 ) (Increase) decrease in contract assets (2,009,154 ) 9,854,745 7,845,591 Increase in inventory (95,268 ) — (95,268 ) Decrease in prepaid expenses and other current assets 177,625 — 177,625 Decrease in accounts payable and accrued expenses (5,347,688 ) (340,577 ) (5,688,265 ) Increase in contract liabilities 173,560 (2,975 ) 170,585 Increase in loss reserve 44,933 211,925 256,858 Decrease in other liabilities (10,976 ) 5,801 (5,175 ) Increase (decrease) in income taxes payable (109,327 ) 109,606 279 Net cash used in operating activities (3,049,419 ) — (3,049,419 ) Cash flows from investing activities: Purchase of property and equipment (521,499 ) — (521,499 ) Net cash used in investing activities (521,499 ) — (521,499 ) Cash flows from financing activities: Payments of long-term debt (1,522,283 ) — (1,522,283 ) Proceeds from line of credit 6,200,000 — 6,200,000 Payments of line of credit (1,500,000 ) — (1,500,000 ) Debt issuance costs (209,082 ) — (209,082 ) Net cash provided by financing activities 2,968,635 — 2,968,635 Net decrease in cash (602,283 ) — (602,283 ) Cash at beginning of period 1,430,877 — 1,430,877 Cash at end of period $ 828,594 $ — $ 828,594 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 1,601,144 $ — $ 1,601,144 Supplemental schedule of noncash investing and financing activities: Equipment acquired under financing lease $ 649,158 $ — $ 649,158

INTERIM FINANCIAL STATEMENTS (D

INTERIM FINANCIAL STATEMENTS (Details Narrative) - USD ($)	Sep. 30, 2019	Jan. 02, 2019
Cash uninsured amount	$ 595,906
Operating lease right-of-use assets	4,259,868
Operating lease right-of-use liabilities	$ 3,033,710
ASU 2016-02 [Member]
Operating lease right-of-use assets		$ 5,300,000
Operating lease right-of-use liabilities		$ 5,800,000
Incremental borrowing rate		6.00%

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - WMI [Member]	Sep. 30, 2019USD ($)
Allocation of the total purchase price of business combination:
Other current assets	$ 1,049,000
Accounts receivable	1,522,000
Inventory	7,969,000
Property and equipment, net	586,000
Current liabilities	(5,174,000)
Total	$ 5,952,000

BUSINESS COMBINATIONS (Details

BUSINESS COMBINATIONS (Details 1) - WMI [Member] - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Pro forma Information:
Revenue	$ 20,794,052	$ 59,404,526
Net loss	$ (1,840,990)	$ (5,189,733)

BUSINESS COMBINATIONS (Detail_2

BUSINESS COMBINATIONS (Details Narrative) - USD ($)	Sep. 27, 2019	Sep. 03, 2019	Dec. 20, 2018	Sep. 30, 2019	Jun. 30, 2019
Air [Member]
Judgment amount sought	$ 4,100,000
WMI [Member]
Allocation of total purchase price			$ 7,900,000
Purchase price held in escrow				$ 2,000,000	$ 2,000,000
Potential decrease in acquisition purchase price		$ 4,100,000

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue by long-term contract type	$ 22,689,762	$ 15,842,610	$ 64,779,858	$ 48,008,240
Aerostructures [Member]
Revenue by long-term contract type	9,351,578	8,026,046	30,121,858	25,210,894
Aerosystems [Member]
Revenue by long-term contract type	7,721,955	3,905,924	22,267,233	9,593,274
Kitting and Supply Chain Management [Member]
Revenue by long-term contract type	$ 5,616,229	$ 3,910,640	$ 12,390,767	$ 13,204,072

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative)	Sep. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 153,000,000
Performance obligation recognition percentage	18.00%
Performance obligation recognition year	2019

LEASES (Details)

LEASES (Details)	Sep. 30, 2019USD ($)
Twelve months ending September 30,
2020	$ 1,910,384
2021	1,953,865
2022	1,175,727
2023	55,322
2024	11,631
Total undiscounted operating lease payments	5,106,929
Less imputed interest	(399,975)
Present value of operating lease payments	$ 4,706,954

LEASES (Details 1)

LEASES (Details 1)	Sep. 30, 2019USD ($)
Assets
ROU Assets	$ 4,259,868
Liabilities
Current operating lease liabilities	1,673,244
Long-term operating lease liabilities	3,033,710
Total ROU liabilities	$ 4,706,954

LEASES (Details Narrative)

LEASES (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Leases [Abstract]
Lease expiration date		Apr. 30, 2022
Rent expense, net	$ 439,825	$ 1,319,764
Weighted average remaining lease term operating leases	2 years 3 months 19 days	2 years 3 months 19 days

RECONCILIATION OF CASH AND RE_3

RECONCILIATION OF CASH AND RESTRICTED CASH (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash	$ 468,536	$ 4,128,142	$ 828,594
Restricted cash	2,000,000	2,000,000
Total cash and restricted cash shown in the consolidated statement of cash flow	$ 2,468,536	$ 6,128,142	$ 828,594	$ 1,430,877

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 1,843,621	$ 2,591,872
Work in progress	6,308,759	4,015,028
Finished goods	1,974,129	2,754,711
Inventory	$ 10,126,509	$ 9,361,611

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - Stock Option Plans [Member]	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Options, Outstanding
Outstanding at beginning | shares	41,772
Exercised | shares	35,000
Forfeited/Expired | shares	6,772
Options, Outstanding, Weighted Average Exercise Price
Outstanding at beginning | $ / shares	$ 7.58
Exercised | $ / shares	6.60
Vested at end | $ / shares	$ 0
Options, Weighted Average Remaining Contractual Term
Vested at end	0 years
Options, Aggregate Intrinsic Value
Vested at end | $	$ 0

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	Apr. 02, 2019	Feb. 12, 2019	Mar. 22, 2018	Jun. 30, 2019	Apr. 30, 2019	Jan. 31, 2019	Mar. 31, 2018	Jan. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member]
Restricted stock units granted				2,725	6,677	75,350		58,578
Vesting period					1 year	1 year		1 year
Stock awards forfeited (shares)				7,326
Stock forfeited				$ 47,000
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | April 2019 Awards [Member]
Stock-based compensation									$ 29,000
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | June 2019 Awards [Member]
Stock-based compensation									15,000
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | Selling, General and Administrative Expenses [Member]
Stock-based compensation									409,000	$ 491,500
Stock Awards [Member] | Employees [Member]
Number of common shares granted							68,764	5,130
Number of shares returned for employee's withholding taxes (shares)	9,806	1,221	7,552
Value of shares returned for employee's withholding taxes	$ 64,000	$ 7,893	$ 62,000
Stock Awards [Member] | Employees [Member] | Tranche One [Member]
Number of common shares granted					4,950
Stock Awards [Member] | Employees [Member] | Tranche Two [Member]
Number of common shares granted					94,972
Stock Awards [Member] | Awards in 2016 [Member] | Employees [Member]
Stock awards forfeited (shares)					11,193		12,330
Stock Awards [Member] | Awards in 2017 [Member] | Employees [Member]
Stock awards forfeited (shares)					8,299		9,130
Stock Awards [Member] | Awards in 2018 [Member] | Employees [Member]
Stock awards forfeited (shares)					8,593
Stock Awards [Member] | Selling, General and Administrative Expenses [Member] | April 2019 Awards [Member] | Employees [Member] | Tranche One [Member]
Stock-based compensation									6,000
Stock Awards [Member] | Selling, General and Administrative Expenses [Member] | April 2019 Awards [Member] | Employees [Member] | Tranche Two [Member]
Stock-based compensation									137,000
Stock Awards [Member] | Selling, General and Administrative Expenses [Member] | January 2018 Awards [Member] | Employees [Member]
Stock-based compensation										10,000
Stock Awards [Member] | Selling, General and Administrative Expenses [Member] | March 2018 Awards [Member] | Employees [Member]
Stock-based compensation									197,000
Stock Awards [Member] | Cost of Sales [Member] | April 2019 Awards [Member] | Employees [Member] | Tranche One [Member]
Stock-based compensation									26,000
Stock Awards [Member] | Cost of Sales [Member] | April 2019 Awards [Member] | Employees [Member] | Tranche Two [Member]
Stock-based compensation									42,000
Stock Awards [Member] | Cost of Sales [Member] | January 2018 Awards [Member] | Employees [Member]
Stock-based compensation										$ 36,000
Stock Awards [Member] | Cost of Sales [Member] | March 2018 Awards [Member] | Employees [Member]
Stock-based compensation									$ 38,000
Stock Option Plans [Member]
Stock options exercised									35,000
Fair value of shares on exercise date									$ 231,003
Shares received in exercise of options for exchange (shares)									34,478

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount [Member]
Line of credit and long-term debt	$ 31,609,494	$ 30,349,904
Fair Value [Member]
Line of credit and long-term debt	$ 31,609,494	$ 30,349,904

CONTRACT ASSETS AND CONTRACT _2

CONTRACT ASSETS AND CONTRACT LIABILITIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included in contract liabilities	$ 5,200,000	$ 75,000

LOSS PER COMMON SHARE (Details

LOSS PER COMMON SHARE (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock Compensation [Member]
Antidilutive securities excluded from computation of earnings per share (shares)	18,672	49,641	18,672	49,641
Stock Option Plans [Member]
Antidilutive securities excluded from computation of earnings per share (shares)		43,064		43,064

DEBT (Details)

DEBT (Details)	Sep. 30, 2019USD ($)
Twelve months ending September 30,
2020	$ 2,499,012
2021	2,008,385
2022	193,626
2023	132,220
Thereafter	37,566
Total	$ 4,870,809

DEBT (Details Narrative)

DEBT (Details Narrative)	Aug. 24, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 25, 2019	Mar. 24, 2016USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)
Payments of debt issuance costs											$ 25,000	$ 209,082
Debt issuance costs					$ 99,000						99,000
Debt issuance costs, reduction of long-term debt					22,000						22,000
Capital leases and notes payable					1,034,706						1,034,706
Capital leases and notes payable, current					399,012						399,012
Oustanding loans					26,738,685						26,738,685
Net income					(1,255,051)	$ (881,167)	$ (934,716)	$ (2,524,326)	$ (1,884,106)	$ (1,442,907)	(3,070,934)	$ (5,851,339)
Bank United [Member]
Payments of debt issuance costs				$ 488,000
Sixth Amendment - Bank United [Member] | Minimum [Member] | Subsequent Event [Member]
Minimum adjusted EBITDA	$ 2,000,000
Revolving Credit Facility [Member] | Bank United [Member]
Line of credit facility, maximum borrowing capacity				30,000,000
Line of credit facility, maturity date			Jun. 30, 2021
Oustanding loans
Line of credit facility, interest rate at period end					5.25%						5.25%
Revolving Credit Facility [Member] | Amendment - Bank United [Member] | Minimum [Member]
Debt service coverage ratio		1				1
Maximum leverage ratio		1				1
Minimum adjusted EBITDA		$ 2,000,000
Net income		$ 1
Revolving Credit Facility [Member] | Amendment - Bank United [Member] | Maximum [Member]
Debt service coverage ratio		1.5				1.5
Maximum leverage ratio		3				3
Revolving Credit Facility [Member] | Sixth Amendment - Bank United [Member] | Subsequent Event [Member]
Line of credit facility, maximum borrowing capacity	$ 24,000,000
Line of credit facility, maturity date	May 2, 2022
Reduction in revolving note	$ 6,000,000
Term loan [Member] | Bank United [Member]
Debt instrument, face amount				$ 10,000,000
Line of credit facility, maturity date			Jun. 30, 2021
Term loan [Member] | Sixth Amendment - Bank United [Member] | Subsequent Event [Member]
Line of credit facility, maturity date	May 2, 2022
Revolving note converted into term loan	$ 6,000,000

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative) - Number	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue [Member]
Concentration Risk [Line Items]
Number of large commercial customers			4	5
Revenue [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			28.00%	21.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			15.00%	15.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%	13.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%	12.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer Five [Member]
Concentration Risk [Line Items]
Concentration risk, percentage				11.00%
Contract Assets [Member]
Concentration Risk [Line Items]
Number of large commercial customers	2	3
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	48.00%	53.00%
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	16.00%	21.00%
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of large commercial customers	2	4
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	39.00%	18.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%	16.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)

Aug. 24, 2020USD ($)

Sep. 27, 2019USD ($)

Sep. 03, 2019USD ($)

Jun. 30, 2019USD ($)

Jun. 25, 2019

Dec. 20, 2018USD ($)

May 31, 2020USD ($)

Oct. 31, 2019USD ($)

Apr. 10, 2020USD ($)

Dec. 31, 2019USD ($)

Sep. 30, 2019USD ($)

Dec. 31, 2018USD ($)

Mar. 24, 2016USD ($)

Restricted cash

$ 2,000,000

$ 2,000,000

Term loan [Member] | Bank United [Member]

Principal amount

$ 10,000,000

Line of credit facility, maturity date

Jun. 30, 2021

Revolving Credit Facility [Member] | Amendment - Bank United [Member] | London Interbank Offered Rate (LIBOR) [Member]

Variable rate spread

3.25%

Revolving Credit Facility [Member] | Amendment - Bank United [Member] | Prime Rate [Member]

Variable rate spread

0.25%

Revolving Credit Facility [Member] | Amendment - Bank United [Member] | Minimum [Member]

Minimum adjusted EBITDA

$ 2,000,000

Revolving Credit Facility [Member] | Amendment - Bank United [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]

Variable rate spread

0.50%

Revolving Credit Facility [Member] | Bank United [Member]

Line of credit facility, maximum borrowing capacity

$ 30,000,000

Line of credit facility, maturity date

Jun. 30, 2021

Air [Member]

Judgment amount sought

$ 4,100,000

WMI [Member]

Allocation of total purchase price

$ 7,900,000

Purchase price held in escrow

$ 2,000,000

$ 2,000,000

Potential decrease in acquisition purchase price

$ 4,100,000

Subsequent Event [Member]

Amount of stop-work order

$ 3,600,000

Judgment amount sought

$ 3,600,000

Subsequent Event [Member] | Sixth Amendment - Bank United [Member] | Minimum [Member]

Minimum funded debt to EBITDA ratio

4

Minimum adjusted EBITDA

$ 2,000,000

Subsequent Event [Member] | Amendment - Bank United after 9/30/20 [Member] | Minimum [Member]

Minimum adjusted EBITDA

$ 1,000,000

Subsequent Event [Member] | Term loan [Member] | Sixth Amendment - Bank United [Member]

Line of credit facility, maturity date

May 2, 2022

Outstanding principal amount

$ 7,933,000

Revolving note converted into term loan

6,000,000

Subsequent Event [Member] | Revolving Credit Facility [Member] | Sixth Amendment - Bank United [Member]

Line of credit facility, maximum borrowing capacity

$ 24,000,000

Line of credit facility, maturity date

May 2, 2022

Reduction in revolving note

$ 6,000,000

Subsequent Event [Member] | WMI [Member]

Release of escrow deposit

$ 619,000

Restricted cash

$ 1,381,000

Purchase price additional disputed amount

$ 2,100,000

Subsequent Event [Member] | PPP Loan [Member]

Principal amount

$ 4,795,000

Interest rate

1.00%

RESTATEMENT OF PREVIOUSLY ISS_3

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue	$ 22,689,762			$ 15,842,610			$ 64,779,858	$ 48,008,240
Cost of sales	20,757,649			15,267,308			58,120,687	45,285,885
Gross profit	1,932,113			575,302			6,659,171	2,722,355
Selling, general and administrative expenses	2,806,498			2,524,127			8,259,945	7,131,726
Income (loss) from operations	(874,385)			(1,948,825)			(1,600,774)	(4,409,371)
Interest expense	378,195			574,765			1,464,376	1,438,862
Income (loss) before provision for (benefit from) income taxes	(1,252,580)			(2,523,590)			(3,065,150)	(5,848,233)
Provision for (benefit from) income taxes	2,471			736			5,784	3,106
Net income (loss)	(1,255,051)	$ (881,167)	$ (934,716)	(2,524,326)	$ (1,884,106)	$ (1,442,907)	(3,070,934)	(5,851,339)
Other comprehensive inccome (loss) net of tax - Change in unrealized loss on interest rate swap				20,600				14,800
Comprehensive income (loss)	$ (1,255,051)			$ (2,503,726)			$ (3,070,934)	$ (5,836,539)
Income (loss) per common share - basic (in dollars per share)	$ (0.11)			$ (0.28)			$ (0.26)	$ (0.66)
Income (loss) per common share - diluted (in dollars per share)	$ (0.11)			$ (0.28)			$ (0.26)	$ (0.66)
Shares used in computing earnings per common share:
Basic (in shares)	11,838,862			8,952,979			11,796,580	8,926,734
Diluted (in shares)	11,838,862			8,952,979			11,796,580	8,926,734
As Previously Reported [Member]
Revenue	$ 25,711,153			$ 19,017,301			$ 74,452,935	$ 57,470,163
Cost of sales	20,748,065			15,146,080			59,117,855	44,964,256
Gross profit	4,963,088			3,871,221			15,335,080	12,505,907
Selling, general and administrative expenses	2,594,980			2,584,560			8,110,736	7,192,159
Income (loss) from operations	2,368,108			1,286,661			7,224,344	5,313,748
Interest expense	378,195			574,765			1,464,376	1,438,862
Income (loss) before provision for (benefit from) income taxes	1,989,913			711,896			5,759,968	3,874,886
Provision for (benefit from) income taxes	323,000			126,000			(276,000)	775,000
Net income (loss)	$ 1,666,913	$ 2,710,457		585,896	$ 1,257,225		$ 6,035,968	3,099,886
Other comprehensive inccome (loss) net of tax - Change in unrealized loss on interest rate swap				20,600				14,800
Comprehensive income (loss)				$ 606,496				$ 3,114,686
Income (loss) per common share - basic (in dollars per share)	$ 0.14			$ 0.07			$ 0.51	$ 0.35
Income (loss) per common share - diluted (in dollars per share)	$ 0.14			$ 0.07			$ 0.51	$ 0.35
Shares used in computing earnings per common share:
Basic (in shares)	11,838,862			8,952,979			11,796,580	8,926,734
Diluted (in shares)	11,857,534			8,977,075			11,815,252	8,951,640
Restatement Adjustments [Member]
Net income (loss)							$ (9,106,902)	$ (8,951,225)
Restatement Adjustments [Member] | Revenue Recognition [Member]
Revenue	$ (3,021,391)			$ (3,174,691)			(9,673,077)	(9,461,923)
Cost of sales	(85,882)			121,228			(924,331)	601,772
Gross profit	(2,935,509)			(3,295,919)			(8,748,746)	(10,063,695)
Income (loss) from operations	(2,935,509)			(3,295,919)			(8,748,746)	(10,063,695)
Income (loss) before provision for (benefit from) income taxes	(2,935,509)			(3,295,919)			(8,748,746)	(10,063,695)
Net income (loss)	(2,935,509)			(3,295,919)			(8,748,746)	(10,063,695)
Comprehensive income (loss)				(3,295,919)				(10,063,695)
Restatement Adjustments [Member] | Other [Member]
Cost of sales	95,466						(72,837)	(280,143)
Gross profit	(95,466)						72,837	280,143
Selling, general and administrative expenses	211,518			(60,433)			149,209	(60,433)
Income (loss) from operations	(306,984)			60,433			(76,372)	340,576
Income (loss) before provision for (benefit from) income taxes	(306,984)			60,433			(76,372)	340,576
Net income (loss)	(306,984)			60,433			(76,372)	340,576
Comprehensive income (loss)				60,433				340,576
Restatement Adjustments [Member] | Income Taxes [Member]
Provision for (benefit from) income taxes	(320,529)			(125,264)			281,784	(771,894)
Net income (loss)	$ 320,529			125,264			$ (281,784)	771,894
Comprehensive income (loss)				$ 125,264				$ 771,894

RESTATEMENT OF PREVIOUSLY ISS_4

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 1) - USD ($)	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 468,536			$ 4,128,142	$ 828,594
Restricted cash	2,000,000			2,000,000
Accounts receivable, net	10,284,768			8,722,571
Contract assets	14,487,015			17,588,866
Inventory	10,126,509			9,361,611
Refundable income taxes	623,538			434,903
Prepaid expenses and other current assets	966,522			1,972,630
Total Current Assets	38,956,888			44,208,723
Operating lease right-of-use assets	4,259,868
Property and equipment, net	3,137,194			2,545,192
Refundable income taxes	434,903			434,903
Other assets	207,096			249,575
Total Assets	46,995,949			47,438,393
Current Liabilities:
Accounts payable	10,892,353			9,902,481
Accrued expenses	1,641,137			1,558,160
Contract liabilities	1,561,543			5,252,579
Loss reserve	2,895,045			3,663,558
Current portion of long-term debt	2,499,012			2,434,981
Operating lease liabilities	1,673,244
Income taxes payable	119,776			113,992
Total current liabilities	21,282,110			22,925,751
Line of credit	26,738,685			24,038,685
Long-term operating lease liabilities	3,033,710
Long-term debt, net of current portion	2,371,797			3,876,238
Other liabilities				531,124
Total Liabilities	53,426,302			51,371,798
Shareholders' Equity (Deficit):
Common stock	11,839			11,718
Additional paid-in capital	71,225,278			70,651,413
Retained earnings (accumulated deficit)	(77,667,470)			(74,596,536)
Total Shareholders' Equity (Deficit)	(6,430,353)	$ (5,296,181)	$ (4,601,705)	(3,933,405)	$ (18,539,558)	$ (16,091,686)	$ (14,477,870)	$ (13,285,102)
Total Liabilities and Shareholders' Equity (Deficit)	46,995,949			47,438,393
As Previously Reported [Member]
Current Assets:
Cash	468,536			4,128,142
Restricted cash	2,000,000			2,000,000
Accounts receivable, net	10,284,768			8,623,329
Contract assets	121,458,084			113,333,491
Inventory	10,404,058			9,711,997
Refundable income taxes	435,000			435,000
Prepaid expenses and other current assets	966,522			1,972,630
Total Current Assets	146,016,968			140,204,589
Operating lease right-of-use assets	4,259,868
Property and equipment, net	3,137,194			2,545,192
Refundable income taxes				435,000
Deferred income taxes				279,318
Other assets	207,096			249,575
Total Assets	153,621,126			143,713,674
Current Liabilities:
Accounts payable	10,892,353			9,902,481
Accrued expenses	1,458,961			1,558,160
Contract liabilities	1,606,649			3,588,500
Loss reserve	216,606			216,606
Current portion of long-term debt	2,499,012			2,434,981
Operating lease liabilities	1,673,244
Income taxes payable				115,000
Total current liabilities	18,346,825			17,815,728
Line of credit	26,738,685			24,038,685
Long-term operating lease liabilities	3,033,710
Long-term debt, net of current portion	2,371,797			3,876,238
Deferred income taxes	2,964,600			4,028,553
Other liabilities				531,124
Total Liabilities	53,455,617			50,290,328
Shareholders' Equity (Deficit):
Common stock	11,839			11,718
Additional paid-in capital	71,357,487			70,651,413
Retained earnings (accumulated deficit)	28,796,183			22,760,215
Total Shareholders' Equity (Deficit)	100,165,509	$ 98,245,508		93,423,346				74,313,333
Total Liabilities and Shareholders' Equity (Deficit)	153,621,126			143,713,674
Restatement Adjustments [Member]
Shareholders' Equity (Deficit):
Total Shareholders' Equity (Deficit)				(97,356,751)				(87,598,435)
Restatement Adjustments [Member] | Revenue Recognition [Member]
Current Assets:
Contract assets	(106,971,069)			(95,744,625)
Total Current Assets	(106,971,069)			(95,744,625)
Total Assets	(106,971,069)			(95,744,625)
Current Liabilities:
Contract liabilities	(45,106)			1,664,079
Loss reserve	2,678,439			3,446,952
Total current liabilities	2,633,333			5,111,031
Total Liabilities	2,633,333			5,111,031
Shareholders' Equity (Deficit):
Retained earnings (accumulated deficit)	(109,604,402)			(100,855,656)
Total Shareholders' Equity (Deficit)	(109,604,402)			(100,855,656)				(86,621,280)
Total Liabilities and Shareholders' Equity (Deficit)	(106,971,069)			(95,744,625)
Restatement Adjustments [Member] | Other [Member]
Current Assets:
Accounts receivable, net				99,242
Inventory	(277,549)			(350,386)
Refundable income taxes	(435,000)
Total Current Assets	(712,549)			(251,144)
Deferred income taxes	435,000
Total Assets	(277,549)			(251,144)
Current Liabilities:
Accrued expenses	182,176
Total current liabilities	182,176
Total Liabilities	182,176
Shareholders' Equity (Deficit):
Additional paid-in capital	(132,209)
Retained earnings (accumulated deficit)	(327,516)			(251,144)
Total Shareholders' Equity (Deficit)	(459,725)			(251,144)				(280,143)
Total Liabilities and Shareholders' Equity (Deficit)	(277,549)			(251,144)
Restatement Adjustments [Member] | Income Taxes [Member]
Current Assets:
Refundable income taxes	623,538			(97)
Total Current Assets	623,538			(97)
Refundable income taxes	434,903			(97)
Deferred income taxes	(435,000)			(279,318)
Total Assets	623,441			(279,512)
Current Liabilities:
Income taxes payable	119,776			(1,008)
Total current liabilities	119,776			(1,008)
Deferred income taxes	(2,964,600)			(4,028,553)
Total Liabilities	(2,844,824)			(4,029,561)
Shareholders' Equity (Deficit):
Retained earnings (accumulated deficit)	3,468,265			3,750,049
Total Shareholders' Equity (Deficit)	3,468,265			3,750,049				$ (697,012)
Total Liabilities and Shareholders' Equity (Deficit)	$ 623,441			$ (279,512)

RESTATEMENT OF PREVIOUSLY ISS_5

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 2) - USD ($)	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Shareholders' equity (deficit)	$ (6,430,353)	$ (5,296,181)	$ (4,601,705)	$ (3,933,405)	$ (18,539,558)	$ (16,091,686)	$ (14,477,870)	$ (13,285,102)
As Previously Reported [Member]
Shareholders' equity (deficit)	100,165,509	98,245,508		93,423,346				74,313,333
Restatement Adjustments [Member]
Shareholders' equity (deficit)				(97,356,751)				(87,598,435)
Restatement Adjustments [Member] | Revenue Recognition [Member]
Shareholders' equity (deficit)	(109,604,402)			(100,855,656)				(86,621,280)
Restatement Adjustments [Member] | Other [Member]
Shareholders' equity (deficit)	(459,725)			(251,144)				(280,143)
Restatement Adjustments [Member] | Income Taxes [Member]
Shareholders' equity (deficit)	3,468,265			3,750,049				(697,012)
Common Stock [Member]
Shareholders' equity (deficit)	11,839	11,820	11,736	11,718	8,953	8,938	8,924	8,864
Common Stock [Member] | As Previously Reported [Member]
Shareholders' equity (deficit)				11,718				8,864
Additional Paid-in Capital [Member]
Shareholders' equity (deficit)	71,225,278	71,104,418	70,917,811	70,651,413	54,352,611	54,276,172	54,026,496	53,770,617
Additional Paid-in Capital [Member] | As Previously Reported [Member]
Shareholders' equity (deficit)				70,651,413				53,770,617
Retained Earnings (Accumulated Deficit) [Member]
Shareholders' equity (deficit)	$ (77,667,470)	$ (76,412,419)	$ (75,531,252)	(74,596,536)	$ (72,901,122)	$ (70,376,796)	(68,492,690)	(67,049,783)
Retained Earnings (Accumulated Deficit) [Member] | As Previously Reported [Member]
Shareholders' equity (deficit)				22,760,215				20,548,652
Retained Earnings (Accumulated Deficit) [Member] | Restatement Adjustments [Member]
Shareholders' equity (deficit)				$ (97,356,751)				(87,598,435)
Retained Earnings (Accumulated Deficit) [Member] | Restatement Adjustments [Member] | Revenue Recognition [Member]
Shareholders' equity (deficit)								(86,621,280)
Retained Earnings (Accumulated Deficit) [Member] | Restatement Adjustments [Member] | Other [Member]
Shareholders' equity (deficit)								(280,143)
Retained Earnings (Accumulated Deficit) [Member] | Restatement Adjustments [Member] | Income Taxes [Member]
Shareholders' equity (deficit)								(697,012)
Accumulated Other Comprehensive Loss [Member]
Shareholders' equity (deficit)							$ (20,600)	(14,800)
Accumulated Other Comprehensive Loss [Member] | As Previously Reported [Member]
Shareholders' equity (deficit)								$ (14,800)

RESTATEMENT OF PREVIOUSLY ISS_6

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 3) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ (1,255,051)	$ (881,167)	$ (934,716)	$ (2,524,326)	$ (1,884,106)	$ (1,442,907)	$ (3,070,934)	$ (5,851,339)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization							729,319	521,255
Amortization of debt issuance cost							67,479	58,990
Cash expended in excess of expenses rent expense							(84,036)	(53,073)
Stock-based compensation							661,231	536,170
Common stock issued as employee compensation							32,324	45,913
Adjustment for maturity of interest rate swap								14,800
Bad debt expense							99,242	275,000
Changes in operating assets and liabilities:
Increase in accounts receivable							(1,661,439)	(1,259,365)
(Increase) decrease in contract assets							3,101,851	7,845,591
Increase in inventory							(764,898)	(95,268)
(Increase) decrease in refundable income taxes							(188,635)
Decrease in prepaid expenses and other current assets							797,622	177,625
Increase (decrease) in accounts payable and accrued expenses							1,072,849	(5,688,265)
Increase (decrease) in contract liabilities							(4,069,161)	170,585
Increase (decrease) in loss reserve							(768,514)	256,858
Decrease in other liabilities								(5,175)
Increase (decrease) in income taxes payable							5,784	279
Net cash used in operating activities							(4,039,916)	(3,049,419)
Cash flows from investing activities:
Purchase of property and equipment							(334,909)	(521,499)
Net cash used in investing activities							(334,909)	(521,499)
Cash flows from financing activities:
Payments of long-term debt							(1,840,210)	(1,522,283)
Proceeds from line of credit							3,000,000	6,200,000
Payments of line of credit							(300,000)	(1,500,000)
Stock offering costs paid							(119,571)
Debt issuance costs							(25,000)	(209,082)
Net cash provided by financing activities							715,219	2,968,635
Net decrease in cash and restricted cash							(3,659,606)	(602,283)
Cash and restricted cash at beginning of period			6,128,142			1,430,877	6,128,142	1,430,877
Cash and restricted cash at end of period	2,468,536			828,594			2,468,536	828,594
Supplemental disclosures of cash flow information:
Cash paid during the period for interest							1,406,581	1,601,144
Cash paid during the period for income taxes							103,927
Supplemental schedule of noncash investing and financing activities:
Equipment acquired under financing lease							399,800	649,158
As Previously Reported [Member]
Cash flows from operating activities:
Net income (loss)	1,666,913	$ 2,710,457		585,896	$ 1,257,225		6,035,968	3,099,886
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization							729,319	521,255
Amortization of debt issuance cost							67,479	58,990
Cash expended in excess of expenses rent expense							(84,036)	(53,073)
Stock-based compensation							793,440	536,170
Common stock issued as employee compensation							32,324	45,913
Adjustment for maturity of interest rate swap								20,600
Bad debt expense								125,000
Deferred income taxes							(784,635)	881,500
Changes in operating assets and liabilities:
Increase in accounts receivable							(1,661,439)	(1,109,365)
(Increase) decrease in contract assets							(8,124,593)	(2,009,154)
Increase in inventory							(692,061)	(95,268)
(Increase) decrease in refundable income taxes							435,000
Decrease in prepaid expenses and other current assets							797,622	177,625
Increase (decrease) in accounts payable and accrued expenses							890,672	(5,347,688)
Increase (decrease) in contract liabilities							(2,359,976)	173,560
Increase (decrease) in loss reserve								44,933
Decrease in other liabilities								(10,976)
Increase (decrease) in income taxes payable							(115,000)	(109,327)
Net cash used in operating activities							(4,039,916)	(3,049,419)
Cash flows from investing activities:
Purchase of property and equipment							(334,909)	(521,499)
Net cash used in investing activities							(334,909)	(521,499)
Cash flows from financing activities:
Payments of long-term debt							(1,840,210)	(1,522,283)
Proceeds from line of credit							3,000,000	6,200,000
Payments of line of credit							(300,000)	(1,500,000)
Stock offering costs paid							(119,571)
Debt issuance costs							(25,000)	(209,082)
Net cash provided by financing activities							715,219	2,968,635
Net decrease in cash and restricted cash							(3,659,606)	(602,283)
Cash and restricted cash at beginning of period			$ 6,128,142			$ 1,430,877	6,128,142	1,430,877
Cash and restricted cash at end of period	$ 2,468,536			$ 828,594			2,468,536	828,594
Supplemental disclosures of cash flow information:
Cash paid during the period for interest							1,406,581	1,601,144
Cash paid during the period for income taxes							103,927
Supplemental schedule of noncash investing and financing activities:
Equipment acquired under financing lease							399,800	649,158
Restatement Adjustments [Member]
Cash flows from operating activities:
Net income (loss)							(9,106,902)	(8,951,225)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation							(132,209)
Adjustment for maturity of interest rate swap								(5,800)
Bad debt expense							99,242	150,000
Deferred income taxes							784,635	(881,500)
Changes in operating assets and liabilities:
Increase in accounts receivable								(150,000)
(Increase) decrease in contract assets							11,226,444	9,854,745
Increase in inventory							(72,837)
(Increase) decrease in refundable income taxes							(623,635)
Increase (decrease) in accounts payable and accrued expenses							182,177	(340,577)
Increase (decrease) in contract liabilities							(1,709,185)	(2,975)
Increase (decrease) in loss reserve							(768,514)	211,925
Decrease in other liabilities								5,801
Increase (decrease) in income taxes payable							$ 120,784	$ 109,606

RESTATEMENT OF PREVIOUSLY ISS_7

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Recognition of misstated contract assets, contract liabilities and loss reserves	$ 109,600,000	$ 100,900,000