CPI Aerostructures (CVU) 10-K 15 Apr 21 2020 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2020	Apr. 15, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	1-11398
Entity Registrant Name	CPI AEROSTRUCTURES INC
Entity Central Index Key	0000889348
Entity Tax Identification Number	11-2520310
Entity Incorporation, State or Country Code	NY
Entity Address, Address Line One	91 Heartland Blvd.
Entity Address, City or Town	Edgewood
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11717
City Area Code	631
Local Phone Number	586-5200
Title of 12(b) Security	Common Stock, $.001 par value
Trading Symbol	CVU
Security Exchange Name	NYSEAMER
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 35,301,795
Entity Common Stock, Shares Outstanding		12,132,606
Share Price			$ 3.76

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 6,033,537	$ 4,052,109
Restricted cash		1,380,684
Accounts receivable, net	4,962,906	7,029,602
Contract assets	19,729,638	15,280,807
Inventory	9,567,921	5,891,386
Refundable income taxes	40,000	474,904
Prepaid expenses and other current assets	534,857	721,964
Total Current Assets	40,868,859	34,831,456
Operating lease right-of-use assets	4,075,048	3,886,863
Property and equipment, net	2,521,742	3,282,939
Intangibles, net	250,000	375,000
Goodwill	1,784,254	1,784,254
Other assets	191,179	179,068
Total Assets	49,691,082	44,339,580
Current Liabilities:
Accounts payable	12,092,684	8,199,557
Accrued expenses	5,693,518	2,372,522
Contract liabilities	1,650,549	3,561,707
Loss reserve	800,971	2,650,963
Current portion of long-term debt	6,501,666	2,484,619
Operating lease liabilities	1,819,237	1,709,153
Income taxes payable	862	1,216
Total Current Liabilities	28,559,487	20,979,737
Line of credit	20,738,685	26,738,685
Long-term operating lease liabilities	2,537,149	2,596,784
Long-term debt, net of current portion	6,205,095	1,764,614
Total Liabilities	58,040,416	52,079,820
Shareholders’ Deficit :
Common stock - $.001 par value; authorized 50,000,000 shares, 11,951,271 and 11,818,830 shares, respectively, issued and outstanding	11,951	11,819
Additional paid-in capital	72,005,841	71,294,629
Accumulated deficit	(80,367,126)	(79,046,688)
Total Shareholders’ Deficit	(8,349,334)	(7,740,240)
Total Liabilities and Shareholders’ Deficit	$ 49,691,082	$ 44,339,580

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	11,951,271	11,818,830
Common stock, outstanding	11,951,271	11,818,830

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 87,584,690	$ 87,518,688
Cost of sales	75,490,503	78,386,997
Gross profit	12,094,187	9,131,691
Selling, general and administrative expenses	12,046,170	11,562,781
Profit/(Loss) from operations	48,017	(2,431,090)
Other expense:
Other income		89,666
Interest expense	(1,421,955)	(2,104,851)
Total other expense, net	(1,421,955)	(2,015,185)
Loss before provision for income taxes	(1,373,938)	(4,446,275)
Provision for/ (benefit from) income taxes	(53,500)	3,877
Net loss	$ (1,320,438)	$ (4,450,152)
Loss per common share-basic	$ (0.11)	$ (0.38)
Loss per common share-diluted	$ (0.11)	$ (0.38)
Shares used in computing loss per common share:
Basic	11,884,307	11,808,052
Diluted	11,884,307	11,808,052

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2018	$ 11,718	$ 70,651,413	$ 74,596,536	$ (3,933,405)
Beginning balance (in shares) at Dec. 31, 2018	11,718,246
Net loss			(4,450,152)	(4,450,152)
Costs related to stock offering		(119,571)		(119,571)
Common stock issued as employee compensation	$ 5	32,319		32,324
Common stock issued as employee compensation (in shares)	4,950
Stock based compensation expense	$ 96	730,468		730,564
Stock based compensation expense (in shares)	95,634
Ending balance, value at Dec. 31, 2019	$ 11,819	71,294,629	(79,046,688)	$ (7,740,240)
Ending balance (in shares) at Dec. 31, 2019	11,818,830			11,818,830
Net loss			(1,320,438)	$ (1,320,438)
Stock based compensation expense	$ 132	711,212		711,344
Stock based compensation expense (in shares)	132,441
Ending balance, value at Dec. 31, 2020	$ 11,951	$ 72,005,841	$ (80,367,126)	$ (8,349,334)
Ending balance (in shares) at Dec. 31, 2020	11,951,271			11,951,271

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (1,320,438)	$ (4,450,152)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,032,986	1,124,063
Amortization of debt issuance costs	95,429	95,507
Cash expended in excess of rent expense	(137,737)	(112,048)
Stock-based compensation expense	711,344	730,564
Common stock issued as employee compensation		32,324
Bad debt expense	(23,395)	34,098
Changes in operating assets and liabilities:
Decrease in accounts receivable	2,090,091	1,807,802
(Increase) decrease in contract assets	(4,448,831)	2,308,059
(Increase) decrease in inventory	(3,676,535)	227,336
Decrease in prepaid expenses and other current assets	187,107	1,202,189
Decrease in refundable income taxes	434,904	394,902
Increase (decrease) in accounts payable and accrued expenses	7,214,124	(678,380)
(Decrease) in contract liabilities	(1,911,158)	(1,968,872)
(Decrease) in loss reserve	(1,849,992)	(1,012,597)
(Decrease) in income taxes payable	(354)	(112,777)
Net cash used in operating activities	(1,602,455)	(377,982)
Cash flows from investing activities:
Purchase of property and equipment	(146,788)	(436,010)
Net cash used in investing activities	(146,788)	(436,010)
Cash flows from financing activities:
Payment of line of credit		(1,300,000)
Proceeds from line of credit		4,000,000
Proceeds from PPP loan	4,795,000
Payment of long-term debt	(2,337,473)	(2,436,786)
Stock offering costs paid		(119,571)
Debt issuance costs	(107,540)	(25,000)
Net cash provided by financing activities	2,349,987	118,643
Net (decrease) increase in cash and restricted cash	600,744	(695,349)
Cash and restricted cash at beginning of year	5,432,793	6,128,142
Cash and restricted cash at end of year	6,033,537	5,432,793
Supplemental schedule of noncash investing, financing activities:
Equipment acquired under capital lease	134,900	399,800
Supplemental schedule of cash flow information:
Cash paid during the year for interest	1,490,152	2,066,174
Cash paid (received) for income taxes	$ (488,052)	$ (378,652)

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.” CPI is a U.S. supplier of aircraft parts for fixed wing aircraft and helicopters in both the commercial and defense markets. We manufacture complex aerostructure assemblies, as well as aerosystems. Additionally, we supply parts for maintenance, repair and overhaul (“MRO”) and kitting contracts. 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 accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the use of estimates by management. Actual results could differ from these estimates. Business Combinations The Company applied acquisition accounting for the WMI acquisition in accordance with Accounting Standards Codification 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. Revenue Recognition 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 right 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 total estimated costs at completion. In 2020, the Company corrected its application of ASC 606, which resulted in a restatement of its previously issued consolidated financial statements for 2018 and the first three quarters of 2019. See Note 3, “Revenue”, for additional information regarding the Company's revenue recognition policy. Government Contracts The Company’s government contracts are subject to the procurement rules and regulations of the U.S. government. Many of the contract terms are dictated by these rules and regulations. Specifically, cost-based pricing is determined under the Federal Acquisition Regulation (“FAR”), which provides guidance on the types of costs that are allowable in establishing prices for goods and services under U.S. government contracts. For example, costs such as those related to charitable contributions, advertising, interest expense, and public relations are unallowable, and therefore not recoverable through sales. During and after the fulfillment of a government contract, the Company may be audited in respect to the direct and allocated indirect costs attributable thereto. These audits may result in adjustments to the Company’s contract cost, and/or revenue. When contractual terms allow, the Company invoices its customers on a progress basis. Cash The Company maintains its cash in six financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed these limits. As of December 31, 2020 and 2019, the Company had $ 6,024,418 4,020,203 Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances. The Company writes off accounts when they are deemed to be uncollectible. Inventory Inventories are reported at lower of cost or net realizable value using weighted average actual cost. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization of property and equipment is provided by the straight-line method over the shorter of estimated useful lives of the respective assets or the life of the lease, for leasehold improvements. 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 finance lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset during the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The determination of the length of lease terms is affected by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The existence of significant economic incentive is the primary consideration when assessing whether the Company is reasonably certain of exercising an option in a lease. Both finance and operating lease ROU assets and liabilities are recognized at commencement date and measured as the present value of lease payments to be made over the lease term. As the interest rate implicit in the lease is not readily available for most of the Company's leases, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The lease ROU asset recognized at commencement is adjusted for any lease payments related to initial direct costs, prepayments, and lease incentives. For operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, lease expense comprises the amortization of the ROU assets recognized on a straight-line basis generally over the shorter of the lease term or the estimated useful life of the underlying asset and interest on the lease liability. Variable lease payments not dependent on a rate or index are recognized when the event, activity, or circumstance in the lease agreement upon which those payments are contingent is probable of occurring and are presented in the same line of the consolidated balance sheet as the rent expense arising from fixed payments. The Company has lease agreements with lease and non-lease components. Non-lease components are combined with the related lease components and accounted for as lease components for all classes of underlying assets. On January 1, 2019, the Company recognized right of use assets and lease liabilities in the range of approximately $ 5.3 million 5.9 million 6% 4.1 million 4.4 million Long-Lived Assets The Company reviews its long-lived assets and certain related intangibles for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As a result of its review, the Company does not believe that any such change has occurred. If such changes in circumstance are present, a loss is recognized to the extent the carrying value of the asset is in excess of the fair value of cash flows expected to result from the use of the asset and amounts expected to be realized upon its eventual disposition. Short-Term Debt The fair value of the Company’s short-term debt is estimated based on the current rates offered to the Company for debt of similar terms and maturities. Using this method, the fair value of the Company’s short-term debt was not significantly different than the stated value at December 31, 2020 and 2019. Fair Value At December 31, 2020 and 2019, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. 2020 2019 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 33,445,446 $ 33,445,446 $ 30,987,918 $ 30,987,918 We estimated the fair value of debt using market quotes and calculations based on market rates. Loss Per Share Basic loss per common share is computed using the weighted-average number of shares outstanding. Diluted loss per common share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. There were no incremental shares that were used in the calculation of diluted loss per common share in 2020 and 2019. Since the Company is in a loss position no incremental shares were used in the calculation of diluted loss per share since these shares would be considered anti-dilutive. Income taxes Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU-2017-04). ASU 2017-04 is intended to simplify how all entities assess goodwill for impairment. This is accomplished by removing the requirement to determine the fair value of individual assets and liabilities in order to calculate a reporting unit’s “implied” goodwill. The goodwill impairment test consists of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. However, the ASU 2017-04 eliminates the requirement to perform a qualitative assessment for any reporting unit with zero or negative carrying amount. The Company adopted ASU-2017-4 for the year ended December 31, 2020. COVID-19 The outbreak of the COVID-19 coronavirus was declared a pandemic by the World Health Organization during our first quarter of 2020. During the latter part of our first quarter and subsequent to our quarter end, the COVID-19 pandemic grew, causing non-essential businesses to shut down and many people to observe the shelter-in-place directive from our state government. Our business and operations and the industries in which we operate have been impacted by public and private sector policies and initiatives in the U.S. to address the transmission of COVID-19, such as the imposition of travel restrictions and the adoption of remote work. The COVID-19 pandemic has contributed to a general slowdown in the global economy, has adversely impacted the businesses of certain of our customers and suppliers, and, if it continues for an extended period of time, it could adversely impact our results of operations and financial condition. In response to the COVID-19 impact on our business, we have been and continue to actively mitigate costs and adjust production schedules. We have also been taking actions to preserve capital and protect the long-term needs of our businesses, including negotiating progress payments with our customers and reducing discretionary spending. Liquidity At December 31, 2020, our cash balance was $ 6,033,537 4,052,109 1,981,428 4,962,906 7,029,602 12,309,372 13,851,719 On August 24, 2020, the Company entered into a Sixth Amendment (the "Sixth Amendment") to the BankUnited March 24, 2016 Credit Agreement. Under the Sixth Amendment, the parties amended the Credit Agreement by extending the maturity date of the Company's Revolving Loan and Term Loan to May 2, 2022 6.0 million 6.0 million 1.5 1.25 1.00 4.0 20.7 million 26.7 million Our working capital requirements can vary significantly, depending in part on the timing of new program awards and the payment terms with our customers and suppliers. We continue to work to obtain better payment terms with our customers, including accelerated progress payment arrangements, as well as exploring alternative funding sources. The Company currently has a shareholders' deficit and has experienced continuing losses from operations and negative cash flows from operations year to date that collectively represent significant risks to the Company to continue to operate as a going concern. To address these matters, the Company has a) negotiated a revised credit facility with BankUnited effective August 24, 2020, b) has in the fourth quarter exited an unprofitable program to avoid continuing cash losses c) obtained and is seeking additional progress payment and advance payment customer contract funding provisions, d) initiated new procedures to reduce investments in inventory and contract assets, e) remained focused on its military segment which has proven to be less susceptible to COVID-19 related impacts and f) maintained a strong (approximately $ 170 million 98

BUSINESS COMBINATION

BUSINESS COMBINATION	12 Months Ended
	Dec. 31, 2020
Business Combinations [Abstract]
BUSINESS COMBINATION	2. BUSINESS COMBINATION In December 2018, the Company completed the acquisition of WMI from Air Industries for a purchase price of $ 7.9 million 2 million 4.1 million 619,000 1,381,000 2.1 million The Company and Air Industries entered into a settlement agreement (“Settlement Agreement”) dated as of December 23, 2020, to resolve the post-closing working capital adjustment dispute in exchange for the release to the Company of the $ 1,381,000 2.1 million

REVENUE RECOGNITION

REVENUE RECOGNITION	12 Months Ended
	Dec. 31, 2020
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 Federal Acquisition Regulation (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. Contract gross profit margins are calculated using the estimated costs for either the individual contract or the portfolio as applicable. 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 when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, are recognized prospectively when the remaining goods or services are distinct and on a cumulative catch-up basis when the remaining goods or services are not distinct. 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. 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 table presents the Company’s revenue disaggregated by contract type: Year Ended Year Ended December 31, 2020 December 31, 2019 Aerostructure $ 34,248,296 $ 41,921,232 Aerosystems 14,787,309 26,624,568 Kitting and Supply Chain Management 38,549,085 18,972,888 Total $ 87,584,690 $ 87,518,688 Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2020, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $ 170 million 54 28

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	12 Months Ended
	Dec. 31, 2020
Contract Assets And Liabilities
CONTRACT ASSETS AND LIABILITIES	4. CONTRACT ASSETS AND 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 for the year ended December 31, 2020, that was included in the contract liabilities balance as of January 1, 2020 was $ 3.6 million 5.2 million

RECONCILIATION OF CASH AND REST

RECONCILIATION OF CASH AND RESTRICTED CASH	12 Months Ended
	Dec. 31, 2020
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 statement of cash flows: December 31, 2020 December 31, 2019 Cash $ 6,033,537 $ 4,052,109 Restricted cash — 1,380,684 Total cash and restricted cash shown in the statement of cash flow $ 6,033,537 $ 5,432,793

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2020
Receivables [Abstract]
ACCOUNTS RECEIVABLE	6. ACCOUNTS RECEIVABLE Accounts receivable consists of trade receivables as follows: December 31, 2020 2019 Billed receivables $ 5,226,468 $ 7,260,457 Less: allowance for doubtful accounts (263,562 ) (230,855 ) Total accounts receivable, net $ 4,962,906 $ 7,029,602

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
INVENTORY	7. INVENTORY The components of inventory consisted of the following: December 31, 2020 2019 Raw materials $ 2,128,213 $ 881,761 Work in progress 3,512,572 1,916,209 Finished goods (Includes completed components) 3,927,136 3,093,416 Total inventory $ 9,567,921 $ 5,891,386

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	8. PROPERTY AND EQUIPMENT December 31, Estimated 2020 2019 Useful Life (years) Machinery and equipment $ 3,964,491 $ 3,829,592 5 7 Computer equipment 4,179,087 4,179,087 5 Furniture and fixtures 709,350 709,350 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 2,585,762 2,573,874 Lesser of lease term or 10 Total gross property and equipment 11,451,852 11,305,065 Less accumulated depreciation and amortization (8,930,110 ) (8,022,126 ) Total property and equipment, net $ 2,521,742 $ 3,282,939 Depreciation and amortization expense for the years ended December 31, 2020 and 2019 was $ 907,986 999,063 During the years ended December 31, 2020 and 2019, the Company acquired $ 134,900 399,800

INTANGIBLES AND GOODWILL

INTANGIBLES AND GOODWILL	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLES AND GOODWILL	9. INTANGIBLES AND GOODWILL Schedule of intangibles and goodwill December 31, 2020 2019 Intangibles $ 500,000 $ 500,000 Less: amortization of intangibles (250,000 ) (125,000 ) Total intangibles, net $ 250,000 $ 375,000 Goodwill $ 1,784,254 $ 1,784,254 As discussed in Note 1, the Company completed the WMI Acquisition on December 20, 2018. The acquisition was accounted for as a business combination in accordance with ASC 805. Accordingly, the Company recorded the fair value of the assets and liabilities assumed at the date of acquisition. As a result of the acquisition, the Company recorded Goodwill of $ 1,784,254 four years Amortization expense for the year ended December 31, 2020 and December 31, 2019 was $ 125,000 125,000

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
LINE OF CREDIT	10. LINE OF CREDIT On March 24, 2016, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with BankUnited, N.A. and the sole arranger, administrative agent and collateral agent and Citizens Bank N.A. as a lender (the “BankUnited Facility”). The BankUnited Facility provided for a revolving credit loan commitment of $ 30 million 10 million On August 24, 2020, the Company entered into a Sixth Amendment (the “Sixth Amendment”) to the Credit Agreement. Under the Sixth Amendment, the parties amended the Credit Agreement by extending the maturity date of the Company’s Revolving Loan and Term Loan to May 2, 2022 6 million 24 million 7,933,000 The BankUnited Facility, as amended by the Sixth Amendment, requires us to maintain the following financial covenants: (1) maintain a Fixed Cost (Debt Service) coverage ratio of no less than 1.5 1.25 1.00 4.0 1 million 3 million As of December 31, 2020 and December 31,2019, the Company had $ 20.7 million 26.7 million The BankUnited Facility is secured by all of the Company’s assets.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
LONG-TERM DEBT	11. LONG-TERM DEBT As described above, in connection with the Sixth Amendment, the Company and BankUnited agreed to extend the maturity dates of the Revolving Loan and Term Loan to May 2, 2022 6 million 24 million 6 million 7,933,000 The Company paid to BankUnited, commitment and agent fees in the amount of $ 107,540 25,000 596,000 84,000 On April 10, 2020, we entered into the Paycheck Protection Program (PPP) Loan, with BNB Bank (now part of Dime Community Bank) as the Lender, in an aggregate principal amount of $ 4,795,000 1 two years On November 2, 2020 the Company applied to the Lender for full forgiveness of the PPP Loan as calculated in accordance with the terms of the CARES Act, as modified by the Paycheck Protection Flexibility Act. We were notified by our lender that our application was accepted and forwarded to the SBA, from whom, we are currently awaiting a response. To date the lender has not requested payment of any interest or principal. All amounts are classified as current or long term in accordance with the Note terms. The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2020, are as follows: Year ending December 31, 2021 $ 6,501,666 2022 5,997,681 2023 136,433 2024 44,498 2025 26,483 Total $ 12,706,761 Included in the long-term debt are financing leases and notes payable of $ 678,428 546,100 255,833 384,619

LEASES

LEASES	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
LEASES	12. 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, 2023 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 years ended December 31, 2020, and 2019 the Company’s operating lease expense was $ 1,625,539 1,761,374 Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows: Year ending December 31, 2021 $ 1,964,815 2022 1,946,746 2023 657,667 2024 8,349 2025 — Total undiscounted operating lease payments 4,577,577 Less imputed interest (221,191 ) Present value of operating lease payments $ 4,356,386 The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2020 and 2019: 2020 2019 Assets ROU Assets $ 4,075,048 $ 3,886,863 Liabilities Current operating lease liabilities $ 1,819,237 $ 1,709,153 Long-term operating lease liabilities 2,537,149 2,596,784 Total ROU liabilities $ 4,356,386 $ 4,305,937 The right-of-use assets under financing leases was $ 4,075,048 3,024,852 517,091 1,868,377 The Company’s weighted average remaining lease term for its operating leases is 2.3

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	13. INCOME TAXES We account for income taxes in accordance with ASC 740 Income Taxes. ASC 740 is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected tax consequences or events that have been recognized in our consolidated financial statements or tax returns. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in the consolidated financial statements. The interpretation prescribes a recognition threshold and measurement attribute for the consolidated financial statements recognition and measurement of a tax position taken, or expected to be taken, in a tax return. The Company files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. The 2014 tax return was under audit by the IRS and the Company has received notification that the returns will be accepted as filed. The Company generally is no longer subject to U.S. or state examinations by tax authorities for taxable years prior to 2017. However, net operating losses utilized from prior years in subsequent years’ tax returns are subject to examination until three years after the filing of subsequent years’ tax returns. The statute of limitations expiration in foreign jurisdictions for corporate tax returns generally ranges between two and five years depending on the jurisdiction. The provision (benefit) for income taxes consists of the following: Year ended December 31, 2020 2019 Current: Federal $ (57,788 ) $ — State 4,288 3,877 Deferred: Federal — — State — — Total $ (53,500 ) $ 3,877 The difference between the income tax provision computed at the federal statutory rate and the actual tax provision (benefit) is accounted for as follows: December 31, 2020 2019 Taxes computed at the federal statutory rate $ (288,527 ) $ (1,012,457 ) State income tax, net 3,387 3,890 Research and development tax credit (210,374 ) (180,813 ) Change in valuation allowance 393,599 1,127,573 Other 59,242 10,870 Refund from IRS audit (57,788 ) — Permanent differences 46,961 54,814 Provision (benefit) for income taxes $ (53,500 ) $ 3,877 The components of deferred income tax assets and liabilities are as follows: Deferred Tax Assets: 2020 2019 Allowance for doubtful accounts $ 56,884 $ 50,100 Credit carryforwards 1,758,809 1,435,543 Inventory reserve 307,456 423,605 Restricted stock 189,072 87,976 Other 18,654 15,237 Acquisition costs 93,063 100,774 Lease liability 940,230 934,463 Disallowed interest expense 891,345 791,785 Net operating loss carryforward 20,886,666 21,058,838 Deferred tax assets 25,142,179 24,898,321 Valuation allowance (21,608,803 ) (21,213,040 ) Deferred Tax Liabilities: Prepaid expenses 115,437 114,738 Revenue recognition 2,086,045 2,133,348 Property and equipment 452,384 593,678 Right of use asset 879,510 843,517 Deferred tax liabilities $ 3,533,376 $ 3,685,281 Net deferred tax assets (liabilities) $ — $ — As of December 31, 2020, the Company had approximately $ 92.1 million 38.4 million As a result of the Tax Cuts and Jobs Act of 2017 and the Coronavirus Aid, Relief, and Economic Security Act of 2020, NOLs arising before January 1, 2018, and NOLs arising after January 1, 2018, are subject to different rules. Our pre-2018 NOLs totaled approximately $ 78.8 million 100% 100% 80% 80 The state NOLs begin to expire in 2034. Our ability to fully recognize the benefits from our NOLs is dependent upon our ability to generate sufficient income prior to their expiration. In addition, our NOL carryforwards may be limited if we experience an ownership change as defined by Section 382 of the Internal Revenue Code (“Section 382”). In general, an ownership change under Section 382 occurs if 5% shareholders increase their collective ownership of the aggregate amount of our outstanding shares by more than 50 percentage points over a relevant lookback period. For the year ended December 31, 2020 we have determined that no ownership change occurred during the relevant lookback period that would limit our ability to use our NOLs, however the sale of additional equity securities in the future may trigger an ownership change under IRC Section 382 which could significantly limit our ability to utilize our tax benefits. The Company will recognize a tax benefit in the consolidated financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50%) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. The provision for income tax benefit for the year ended December 31, 2020 was ($53,500) 3.09% On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was enacted and signed into law, and GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment date. The CARES Act, among other things, includes changes to the tax provisions that benefits business entities and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act, including, permitting net operating losses, or NOLs, carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CARES Act provides other reliefs and stimulus measures. We have evaluated the impact of the CARES Act, and do not expect that any provision of the CARES Act would result in a material cash benefit to us or have a material impact on our financial statements or internal controls over financial reporting.

STOCK BASED COMPENSATION NEEDS

STOCK BASED COMPENSATION NEEDS UPDATE	12 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
STOCK BASED COMPENSATION NEEDS UPDATE	14. STOCK BASED COMPENSATION NEEDS UPDATE The Company accounts for stock-based compensation based on the fair value of the stock or stock-based instrument on the date of grant. The Company’s net loss for the years ended December 31, 2020 and 2019, includes approximately $ 711,000 763,000 In January 2020, the Company granted 73,551 2,617 5,758 75,353 6,677 6,596 2,725 532,000 498,000 In February 2020, a former CFO forfeited 10,000 84,383 9,346 66,242 In April 2019, the Company granted 94,972 29,306 9,806 38,906 10,000 The Company’s net loss for the years ended December 31, 2020 and 2019 includes approximately $ 179,000 265,000 57,000 79,000 122,000 186,000 During the year ended December 31, 2019, 35,000 34,478 35,000 In 2009, the Company adopted the Performance Equity Plan 2009 (the “2009 Plan”). The 2009 Plan reserved 500,000 46,230 In 2016, the Company adopted the 2016 Long Term Incentive Plan (the “2016 Plan”). The 2016 Plan reserved 600,000 800,000 797,993

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2020
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLAN	15. EMPLOYEE BENEFIT PLAN On September 11, 1996, the Company’s board of directors instituted a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “Code”). On October 1, 1998, the Company amended and standardized its plan as required by the Code. Pursuant to the amended plan, qualified employees may contribute a percentage of their pretax eligible compensation to the Plan and the Company will match a percentage of each employee’s contribution. Additionally, the Company has a profit-sharing plan covering all eligible employees. Contributions by the Company are at the discretion of management. The amount of contributions recorded by the Company in 2020 and 2019 amounted to $ 288,553 412,990

MAJOR CUSTOMERS

MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2020
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	16. MAJOR CUSTOMERS For the year ended December 31, 2020, 35% 11% 11% 9% four 28% 18 13 12% four At December 31, 2020, 29% 24% 15% 13% four 29% 24% 13% 12% four At December 31, 2020, 39% 20% 12% 9% four 50% 12% 11% 7% four

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	17. LEGAL PROCEEDINGS Class Action Lawsuit As previously disclosed, a consolidated class action lawsuit has been filed against the Company, Douglas McCrosson, the Company’s Chief Executive Officer, Vincent Palazzolo, the Company’s former Chief Financial Officer, and the two underwriters of the Company’s October 16, 2018 offering of common stock, Canaccord Genuity LLC and B. Riley FBR. The Amended Complaint in the action asserts claims on behalf of two plaintiff classes, (i) purchasers of the Company’s common stock issued pursuant to and/or traceable to the Company’s offering conducted on or about October 16, 2018; and (ii) purchasers of the Company’s common stock between March 22, 2018 through February 14, 2020. The Amended Complaint alleges that the defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act by negligently permitting false and misleading statements to be included in the registration statement and prospectus supplements issued in connection with its October 16, 2018 securities offering. The Amended Complaint also alleges 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 between March 22, 2018 through February 14, 2020. Plaintiffs seek unspecified compensatory damages, including interest; rescission or a rescissory measure of damages; unspecified equitable or injunctive relief; and costs and expenses, inclu Shareholder Derivative Actions Two shareholder derivative actions have been filed against current members of our board of directors and certain of our current and former officers. The first action was filed in the United States District Court for the Eastern District of New York, and 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, unjust enrichment, and contribution, 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 second action was filed in the Supreme Court of the State of New York (Suffolk County), purports to assert derivative claims against the individual defendants for breach of fiduciary duty and unjust enrichment, 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, along with declaratory, equitable, injunctive and monetary relief, as well as attorneys’ fees and other costs. Both derivative actions are based substantially on the same facts alleged in the class action compla On November 10, a third shareholder derivative action was filed against current and former 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 on the shareholder’s inspection of certain corporate books and records, purports to assert derivative claims against the individual defendants for breach of fiduciary duty and unjust enrichment, and seeks to implement reforms to the Company’s corporate governance and internal procedures and to recover on behalf of the Company an unspecified am While the outcome of any litigation is inherently uncertain and the class action and derivative lawsuits 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. SEC Investigation As previously disclosed, on May 22, 2020, the Company received a subpoena from the Securities and Exchange Commission (the “Commission”) Division of Enforcement (the “Division”) 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. By letter dated March 12, 2021 and received on March 16, 2021, the Division Staff notified the Company that the Division has concluded its investigation and, based on the information the Division has as of such date, it does not intend to recommend an enforcement action by the Commission against the Company. The Division’s notice was provided under the guidelines described in the final paragraph of Securities Act Release No. 5310 which states in part that the notice “must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff’s investigation.”

PRINCIPAL BUSINESS ACTIVITY A_2

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the use of estimates by management. Actual results could differ from these estimates.
Business Combinations	Business Combinations The Company applied acquisition accounting for the WMI acquisition in accordance with Accounting Standards Codification 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.
Revenue Recognition	Revenue Recognition 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 right 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 total estimated costs at completion. In 2020, the Company corrected its application of ASC 606, which resulted in a restatement of its previously issued consolidated financial statements for 2018 and the first three quarters of 2019. See Note 3, “Revenue”, for additional information regarding the Company's revenue recognition policy.
Government Contracts	Government Contracts The Company’s government contracts are subject to the procurement rules and regulations of the U.S. government. Many of the contract terms are dictated by these rules and regulations. Specifically, cost-based pricing is determined under the Federal Acquisition Regulation (“FAR”), which provides guidance on the types of costs that are allowable in establishing prices for goods and services under U.S. government contracts. For example, costs such as those related to charitable contributions, advertising, interest expense, and public relations are unallowable, and therefore not recoverable through sales. During and after the fulfillment of a government contract, the Company may be audited in respect to the direct and allocated indirect costs attributable thereto. These audits may result in adjustments to the Company’s contract cost, and/or revenue. When contractual terms allow, the Company invoices its customers on a progress basis.
Cash	Cash The Company maintains its cash in six financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed these limits. As of December 31, 2020 and 2019, the Company had $ 6,024,418 4,020,203
Accounts Receivable	Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances. The Company writes off accounts when they are deemed to be uncollectible.
Inventory	Inventory Inventories are reported at lower of cost or net realizable value using weighted average actual cost.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization of property and equipment is provided by the straight-line method over the shorter of estimated useful lives of the respective assets or the life of the lease, for leasehold improvements.
Leases	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 finance lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset during the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The determination of the length of lease terms is affected by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The existence of significant economic incentive is the primary consideration when assessing whether the Company is reasonably certain of exercising an option in a lease. Both finance and operating lease ROU assets and liabilities are recognized at commencement date and measured as the present value of lease payments to be made over the lease term. As the interest rate implicit in the lease is not readily available for most of the Company's leases, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The lease ROU asset recognized at commencement is adjusted for any lease payments related to initial direct costs, prepayments, and lease incentives. For operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, lease expense comprises the amortization of the ROU assets recognized on a straight-line basis generally over the shorter of the lease term or the estimated useful life of the underlying asset and interest on the lease liability. Variable lease payments not dependent on a rate or index are recognized when the event, activity, or circumstance in the lease agreement upon which those payments are contingent is probable of occurring and are presented in the same line of the consolidated balance sheet as the rent expense arising from fixed payments. The Company has lease agreements with lease and non-lease components. Non-lease components are combined with the related lease components and accounted for as lease components for all classes of underlying assets. On January 1, 2019, the Company recognized right of use assets and lease liabilities in the range of approximately $ 5.3 million 5.9 million 6% 4.1 million 4.4 million
Long-Lived Assets	Long-Lived Assets The Company reviews its long-lived assets and certain related intangibles for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As a result of its review, the Company does not believe that any such change has occurred. If such changes in circumstance are present, a loss is recognized to the extent the carrying value of the asset is in excess of the fair value of cash flows expected to result from the use of the asset and amounts expected to be realized upon its eventual disposition.
Short-Term Debt	Short-Term Debt The fair value of the Company’s short-term debt is estimated based on the current rates offered to the Company for debt of similar terms and maturities. Using this method, the fair value of the Company’s short-term debt was not significantly different than the stated value at December 31, 2020 and 2019.
Fair Value	Fair Value At December 31, 2020 and 2019, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. 2020 2019 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 33,445,446 $ 33,445,446 $ 30,987,918 $ 30,987,918 We estimated the fair value of debt using market quotes and calculations based on market rates.
Loss Per Share	Loss Per Share Basic loss per common share is computed using the weighted-average number of shares outstanding. Diluted loss per common share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. There were no incremental shares that were used in the calculation of diluted loss per common share in 2020 and 2019. Since the Company is in a loss position no incremental shares were used in the calculation of diluted loss per share since these shares would be considered anti-dilutive.
Income taxes	Income taxes Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU-2017-04). ASU 2017-04 is intended to simplify how all entities assess goodwill for impairment. This is accomplished by removing the requirement to determine the fair value of individual assets and liabilities in order to calculate a reporting unit’s “implied” goodwill. The goodwill impairment test consists of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. However, the ASU 2017-04 eliminates the requirement to perform a qualitative assessment for any reporting unit with zero or negative carrying amount. The Company adopted ASU-2017-4 for the year ended December 31, 2020.
COVID-19	COVID-19 The outbreak of the COVID-19 coronavirus was declared a pandemic by the World Health Organization during our first quarter of 2020. During the latter part of our first quarter and subsequent to our quarter end, the COVID-19 pandemic grew, causing non-essential businesses to shut down and many people to observe the shelter-in-place directive from our state government. Our business and operations and the industries in which we operate have been impacted by public and private sector policies and initiatives in the U.S. to address the transmission of COVID-19, such as the imposition of travel restrictions and the adoption of remote work. The COVID-19 pandemic has contributed to a general slowdown in the global economy, has adversely impacted the businesses of certain of our customers and suppliers, and, if it continues for an extended period of time, it could adversely impact our results of operations and financial condition. In response to the COVID-19 impact on our business, we have been and continue to actively mitigate costs and adjust production schedules. We have also been taking actions to preserve capital and protect the long-term needs of our businesses, including negotiating progress payments with our customers and reducing discretionary spending.
Liquidity	Liquidity At December 31, 2020, our cash balance was $ 6,033,537 4,052,109 1,981,428 4,962,906 7,029,602 12,309,372 13,851,719 On August 24, 2020, the Company entered into a Sixth Amendment (the "Sixth Amendment") to the BankUnited March 24, 2016 Credit Agreement. Under the Sixth Amendment, the parties amended the Credit Agreement by extending the maturity date of the Company's Revolving Loan and Term Loan to May 2, 2022 6.0 million 6.0 million 1.5 1.25 1.00 4.0 20.7 million 26.7 million Our working capital requirements can vary significantly, depending in part on the timing of new program awards and the payment terms with our customers and suppliers. We continue to work to obtain better payment terms with our customers, including accelerated progress payment arrangements, as well as exploring alternative funding sources. The Company currently has a shareholders' deficit and has experienced continuing losses from operations and negative cash flows from operations year to date that collectively represent significant risks to the Company to continue to operate as a going concern. To address these matters, the Company has a) negotiated a revised credit facility with BankUnited effective August 24, 2020, b) has in the fourth quarter exited an unprofitable program to avoid continuing cash losses c) obtained and is seeking additional progress payment and advance payment customer contract funding provisions, d) initiated new procedures to reduce investments in inventory and contract assets, e) remained focused on its military segment which has proven to be less susceptible to COVID-19 related impacts and f) maintained a strong (approximately $ 170 million 98

PRINCIPAL BUSINESS ACTIVITY A_3

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
At December 31, 2020 and 2019, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments.	At December 31, 2020 and 2019, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. 2020 2019 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 33,445,446 $ 33,445,446 $ 30,987,918 $ 30,987,918

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	12 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
The following table presents the Company’s revenue disaggregated by contract type:	The following table presents the Company’s revenue disaggregated by contract type: Year Ended Year Ended December 31, 2020 December 31, 2019 Aerostructure $ 34,248,296 $ 41,921,232 Aerosystems 14,787,309 26,624,568 Kitting and Supply Chain Management 38,549,085 18,972,888 Total $ 87,584,690 $ 87,518,688

RECONCILIATION OF CASH AND RE_2

RECONCILIATION OF CASH AND RESTRICTED CASH (Tables)	12 Months Ended
	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
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 statement of cash flows:	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 statement of cash flows: December 31, 2020 December 31, 2019 Cash $ 6,033,537 $ 4,052,109 Restricted cash — 1,380,684 Total cash and restricted cash shown in the statement of cash flow $ 6,033,537 $ 5,432,793

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2020
Receivables [Abstract]
Accounts receivable consists of trade receivables as follows:	Accounts receivable consists of trade receivables as follows: December 31, 2020 2019 Billed receivables $ 5,226,468 $ 7,260,457 Less: allowance for doubtful accounts (263,562 ) (230,855 ) Total accounts receivable, net $ 4,962,906 $ 7,029,602

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
The components of inventory consisted of the following:	The components of inventory consisted of the following: December 31, 2020 2019 Raw materials $ 2,128,213 $ 881,761 Work in progress 3,512,572 1,916,209 Finished goods (Includes completed components) 3,927,136 3,093,416 Total inventory $ 9,567,921 $ 5,891,386

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	December 31, Estimated 2020 2019 Useful Life (years) Machinery and equipment $ 3,964,491 $ 3,829,592 5 7 Computer equipment 4,179,087 4,179,087 5 Furniture and fixtures 709,350 709,350 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 2,585,762 2,573,874 Lesser of lease term or 10 Total gross property and equipment 11,451,852 11,305,065 Less accumulated depreciation and amortization (8,930,110 ) (8,022,126 ) Total property and equipment, net $ 2,521,742 $ 3,282,939

INTANGIBLES AND GOODWILL (Table

INTANGIBLES AND GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangibles and goodwill	Schedule of intangibles and goodwill December 31, 2020 2019 Intangibles $ 500,000 $ 500,000 Less: amortization of intangibles (250,000 ) (125,000 ) Total intangibles, net $ 250,000 $ 375,000 Goodwill $ 1,784,254 $ 1,784,254

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2020, are as follows:	The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2020, are as follows: Year ending December 31, 2021 $ 6,501,666 2022 5,997,681 2023 136,433 2024 44,498 2025 26,483 Total $ 12,706,761

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:	Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows: Year ending December 31, 2021 $ 1,964,815 2022 1,946,746 2023 657,667 2024 8,349 2025 — Total undiscounted operating lease payments 4,577,577 Less imputed interest (221,191 ) Present value of operating lease payments $ 4,356,386
The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2020 and 2019:	The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2020 and 2019: 2020 2019 Assets ROU Assets $ 4,075,048 $ 3,886,863 Liabilities Current operating lease liabilities $ 1,819,237 $ 1,709,153 Long-term operating lease liabilities 2,537,149 2,596,784 Total ROU liabilities $ 4,356,386 $ 4,305,937

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
The provision (benefit) for income taxes consists of the following:	The provision (benefit) for income taxes consists of the following: Year ended December 31, 2020 2019 Current: Federal $ (57,788 ) $ — State 4,288 3,877 Deferred: Federal — — State — — Total $ (53,500 ) $ 3,877
The difference between the income tax provision computed at the federal statutory rate and the actual tax provision (benefit) is accounted for as follows:	The difference between the income tax provision computed at the federal statutory rate and the actual tax provision (benefit) is accounted for as follows: December 31, 2020 2019 Taxes computed at the federal statutory rate $ (288,527 ) $ (1,012,457 ) State income tax, net 3,387 3,890 Research and development tax credit (210,374 ) (180,813 ) Change in valuation allowance 393,599 1,127,573 Other 59,242 10,870 Refund from IRS audit (57,788 ) — Permanent differences 46,961 54,814 Provision (benefit) for income taxes $ (53,500 ) $ 3,877
The components of deferred income tax assets and liabilities are as follows:	The components of deferred income tax assets and liabilities are as follows: Deferred Tax Assets: 2020 2019 Allowance for doubtful accounts $ 56,884 $ 50,100 Credit carryforwards 1,758,809 1,435,543 Inventory reserve 307,456 423,605 Restricted stock 189,072 87,976 Other 18,654 15,237 Acquisition costs 93,063 100,774 Lease liability 940,230 934,463 Disallowed interest expense 891,345 791,785 Net operating loss carryforward 20,886,666 21,058,838 Deferred tax assets 25,142,179 24,898,321 Valuation allowance (21,608,803 ) (21,213,040 ) Deferred Tax Liabilities: Prepaid expenses 115,437 114,738 Revenue recognition 2,086,045 2,133,348 Property and equipment 452,384 593,678 Right of use asset 879,510 843,517 Deferred tax liabilities $ 3,533,376 $ 3,685,281 Net deferred tax assets (liabilities) $ — $ —

At December 31, 2020 and 2019,

At December 31, 2020 and 2019, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Line of credit and long-term debt	$ 33,445,446	$ 30,987,918
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Line of credit and long-term debt	$ 33,445,446	$ 30,987,918

PRINCIPAL BUSINESS ACTIVITY A_4

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Dec. 31, 2020USD ($)	Aug. 24, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jan. 01, 2019USD ($)
Property, Plant and Equipment [Line Items]
Cash uninsured amount	$ 6,024,418		$ 6,024,418	$ 4,020,203
Right of use asset	4,075,048		4,075,048	3,886,863	$ 5,300,000
Right of use lease liabilities	4,356,386		4,356,386	4,305,937	$ 5,900,000
Incremental borrowing rate					6.00%
Cash	6,033,537		6,033,537	4,052,109
Cash, Period Increase (Decrease)			1,981,428
Accounts Receivable, after Allowance for Credit Loss, Current	4,962,906		4,962,906	7,029,602
Working capital	12,309,372		12,309,372	13,851,719
Net Income (Loss) Attributable to Parent			(1,320,438)	(4,450,152)
Contract with Customer, Liability	$ 170,000,000		$ 170,000,000
Customer Concentration Risk [Member]
Property, Plant and Equipment [Line Items]
Concentration Risk, Percentage			98.00%
Bank United [Member]
Property, Plant and Equipment [Line Items]
Minimum Fixed Cost Coverage Ratio	1.5		1.5
Minimum Fixed Cost Coverage Ratio Future Periods	1.25		1.25
Minimum funded debt to EBITDA ratio	4		4
Bank United [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Minimum Fixed Cost Coverage Ratio		1.5
Minimum Fixed Cost Coverage Ratio Future Periods		1.25
Net Income (Loss) Attributable to Parent	$ 1	$ 1
Bank United [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Minimum funded debt to EBITDA ratio	4		4
Term loan [Member] | Bank United [Member]
Property, Plant and Equipment [Line Items]
Line of Credit Facility, Expiration Date		May 2, 2022
Revolving note converted into term loan		$ 6,000,000
Revolving Credit Facility [Member] | Bank United [Member]
Property, Plant and Equipment [Line Items]
Line of Credit Facility, Expiration Date		May 2, 2022
Reduction in revolving note		$ 6,000,000
Oustanding loans	$ 20,700,000		$ 20,700,000	$ 26,700,000

BUSINESS COMBINATION (Details N

BUSINESS COMBINATION (Details Narrative) - USD ($)	Dec. 28, 2020	Sep. 27, 2019	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Restricted cash					$ 1,380,684
Air Industries [Member]
Business Acquisition [Line Items]
Judgment amount sought		$ 4,100,000
Release of escrow deposit		$ 619,000
Welding Metallurgy Inc [Member]
Business Acquisition [Line Items]
Purchase price for acquisition			$ 7,900,000
Purchase price held in escrow			$ 2,000,000
Release of escrow deposit	$ 1,381,000
Restricted cash				1,381,000
Purchase price additional disputed amount				$ 2,100,000

The following table presents th

The following table presents the Company’s revenue disaggregated by contract type: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue by long-term contract type	$ 87,584,690	$ 87,518,688
Aerostructures [Member]
Disaggregation of Revenue [Line Items]
Revenue by long-term contract type	34,248,296	41,921,232
Aerosystems [Member]
Disaggregation of Revenue [Line Items]
Revenue by long-term contract type	14,787,309	26,624,568
Kitting and Supply Chain Management [Member]
Disaggregation of Revenue [Line Items]
Revenue by long-term contract type	$ 38,549,085	$ 18,972,888

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) $ in Millions	Dec. 31, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 170
Fiscal Year 2021 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation recognition percentage	54.00%
Fiscal Year 2022 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation recognition percentage	28.00%

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Contract Assets And Liabilities
Revenue recognized that was included in contract liabilities	$ 3.6	$ 5.2

The following table provides a

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 statement of cash flows: (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Abstract]
Cash	$ 6,033,537	$ 4,052,109
Restricted cash		1,380,684
Total cash and restricted cash shown in the statement of cash flow	$ 6,033,537	$ 5,432,793	$ 6,128,142

Accounts receivable consists of

Accounts receivable consists of trade receivables as follows: (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Billed receivables	$ 5,226,468	$ 7,260,457
Less: allowance for doubtful accounts	(263,562)	(230,855)
Total accounts receivable, net	$ 4,962,906	$ 7,029,602

The components of inventory con

The components of inventory consisted of the following: (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 2,128,213	$ 881,761
Work in progress	3,512,572	1,916,209
Finished goods (Includes completed components)	3,927,136	3,093,416
Total inventory	$ 9,567,921	$ 5,891,386

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 11,451,852	$ 11,305,065
Less accumulated depreciation and amortization	(8,930,110)	(8,022,126)
Property and equipment, net	2,521,742	3,282,939
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,964,491	3,829,592
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,179,087	4,179,087
Estimated useful life	5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 709,350	709,350
Estimated useful life	7 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 13,162	13,162
Estimated useful life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,585,762	$ 2,573,874
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 1,032,986	$ 1,124,063
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions	134,900	399,800
Property, Plant and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 907,986	$ 999,063

Schedule of intangibles and goo

Schedule of intangibles and goodwill (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles	$ 500,000	$ 500,000
Less: amortization of intangibles	(250,000)	(125,000)
Total intangibles, net	250,000	375,000
Goodwill	$ 1,784,254	$ 1,784,254

INTANGIBLES AND GOODWILL (Detai

INTANGIBLES AND GOODWILL (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 1,784,254	$ 1,784,254
Amortization of Intangible Assets	125,000	$ 125,000
Welding Metallurgy Inc [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 1,784,254
Intangible asset useful life	4 years

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative)	Dec. 31, 2020USD ($)	Aug. 24, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 24, 2016USD ($)
Line of Credit Facility [Line Items]
Net income			$ (1,320,438)	$ (4,450,152)
Bank United [Member]
Line of Credit Facility [Line Items]
Minimum Fixed Cost coverage ratio	1.5		1.5
Minimum Fixed Cost coverage ratio, future periods	1.25		1.25
Minimum funded debt to EBITDA ratio	4		4
Minimum adjusted EBITDA	$ 1,000,000
Liquidity covenant	3,000,000
Bank United [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Minimum Fixed Cost coverage ratio		1.5
Minimum Fixed Cost coverage ratio, future periods		1.25
Net income	1	$ 1
Revolving Credit Facility [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 24,000,000			$ 30,000,000
Line of credit facility, maturity date		May 2, 2022
Reduction in revolving note		$ 6,000,000
Oustanding loans	$ 20,700,000		$ 20,700,000	$ 26,700,000
Term loan [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Debt instrument, face amount					$ 10,000,000
Line of credit facility, maturity date		May 2, 2022
Outstanding principal amount		$ 7,933,000

The maturities of the long-term

The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2020, are as follows: (Details)	Dec. 31, 2020USD ($)
Debt Disclosure [Abstract]
2021	$ 6,501,666
2022	5,997,681
2023	136,433
2024	44,498
2025	26,483
Total	$ 12,706,761

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	Aug. 24, 2020	Apr. 10, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Mar. 24, 2016
Line of Credit Facility [Line Items]
Payments of debt issuance costs			$ 107,540	$ 25,000
Long-term Debt and Lease Obligation			678,428	546,100	$ 678,428
Long-term Debt and Lease Obligation, Current			255,833	384,619	255,833
Bank United [Member]
Line of Credit Facility [Line Items]
Commitment and agent fees			107,540	$ 25,000
Payments of debt issuance costs					596,000
Debt issuance costs included in other assets			$ 84,000		$ 84,000
BNB Bank [Member] | PPP Loan [Member]
Line of Credit Facility [Line Items]
Debt instrument, face amount		$ 4,795,000
Debt instrument, interest rate		1.00%
Debt instrument, term		2 years
Revolving Credit Facility [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maturity date	May 2, 2022
Reduction in revolving note	$ 6,000,000
Line of credit facility, maximum borrowing capacity	$ 24,000,000					$ 30,000,000
Term loan [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maturity date	May 2, 2022
Revolving note converted into term loan	$ 6,000,000
Outstanding principal amount	$ 7,933,000
Debt instrument, face amount						$ 10,000,000

Future minimum lease payments u

Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows: (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
2021	$ 1,964,815
2022	1,946,746
2023	657,667
2024	8,349
2025
Total undiscounted operating lease payments	4,577,577
Less imputed interest	(221,191)
Present value of operating lease payments	$ 4,356,386	$ 4,305,937	$ 5,900,000

The following table sets forth

The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2020 and 2019: (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Assets
ROU Assets	$ 4,075,048	$ 3,886,863	$ 5,300,000
Liabilities
Current operating lease liabilities	1,819,237	1,709,153
Long-term operating lease liabilities	2,537,149	2,596,784
Total ROU liabilities	$ 4,356,386	$ 4,305,937	$ 5,900,000

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease expense	$ 1,625,539	$ 1,761,374
Financing lease, right-of-use asset	4,075,048	3,024,852
Accumulated depreciation of assets under financing leases	$ 517,091	$ 1,868,377
Operating Lease, Weighted Average Remaining Lease Term	2 years 3 months 18 days

The provision (benefit) for inc

The provision (benefit) for income taxes consists of the following: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ (57,788)
State	4,288	3,877
Deferred:
Federal
State
Provision for income taxes	$ (53,500)	$ 3,877

The difference between the inco

The difference between the income tax provision computed at the federal statutory rate and the actual tax provision (benefit) is accounted for as follows: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Taxes computed at the federal statutory rate	$ (288,527)	$ (1,012,457)
State income tax, net	3,387	3,890
Research and development tax credit	(210,374)	(180,813)
Change in valuation allowance	393,599	1,127,573
Other	59,242	10,870
Refund from IRS audit	(57,788)
Permanent differences	46,961	54,814
Provision for income taxes	$ (53,500)	$ 3,877

The components of deferred inco

The components of deferred income tax assets and liabilities are as follows: (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets:
Allowance for doubtful accounts	$ 56,884	$ 50,100
Credit carryforwards	1,758,809	1,435,543
Inventory reserve	307,456	423,605
Restricted stock	189,072	87,976
Other	18,654	15,237
Acquisition costs	93,063	100,774
Lease liability	940,230	934,463
Disallowed interest expense	891,345	791,785
Net operating loss carryforward	20,886,666	21,058,838
Deferred tax assets	25,142,179	24,898,321
Valuation allowance	(21,608,803)	(21,213,040)
Deferred Tax Liabilities:
Prepaid expenses	115,437	114,738
Revenue recognition	2,086,045	2,133,348
Property and equipment	452,384	593,678
Right of use asset	879,510	843,517
Deferred tax liabilities	3,533,376	3,685,281
Net deferred tax assets (liabilities)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Provision for income taxes	$ (53,500)	$ 3,877
Effective tax rate	3.09%
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 92,100,000
NOL description	As a result of the Tax Cuts and Jobs Act of 2017 and the Coronavirus Aid, Relief, and Economic Security Act of 2020, NOLs arising before January 1, 2018, and NOLs arising after January 1, 2018, are subject to different rules. Our pre-2018 NOLs totaled approximately $78.8 million; these NOLs will expire in varying amounts from 2030 through 2039, if not utilized, and can offset 100% of future taxable income for regular tax purposes. Our NOLs arising in 2018, 2019 and 2020 can generally be carried back five years, carried forward indefinitely and can offset 100% of future taxable income for tax years before January 1, 2021 and up to 80% of future taxable income for tax years after December 31, 2020. Any NOLs arising on or after January 1, 2021, cannot be carried back, can generally be carried forward indefinitely and can offset up to 80% of future taxable income. The federal NOLs begin to expire in 2034; losses generated in 2018 and forward have an indefinite life.
Internal Revenue Service (IRS) [Member] | Tax Year 2017 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 78,800,000
Offset taxable income for regular tax purpose (percent)	100.00%
Internal Revenue Service (IRS) [Member] | Tax Year 2018 [Member]
Operating Loss Carryforwards [Line Items]
Offset taxable income for regular tax purpose (percent)	100.00%
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Offset taxable income for regular tax purpose (percent)	80.00%
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 38,400,000
NOL description	The state NOLs begin to expire in 2034.

STOCK BASED COMPENSATION NEED_2

STOCK BASED COMPENSATION NEEDS UPDATE (Details Narrative) - USD ($)	1 Months Ended									12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	Feb. 28, 2020	Jan. 31, 2020	Dec. 31, 2019	Nov. 30, 2019	Jun. 30, 2019	Apr. 30, 2019	Jan. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash compensation expense										$ 711,344	$ 730,564
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period											35,000
Stock exchanged for options exercised											34,478
Performance Equity Plan 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized										500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant										46,230
Long Term Incentive Plan 2016 [Member}
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized										600,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant										797,993
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized										800,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation										$ 711,000	$ 763,000
Grants in period	5,758	2,617		73,551	10,000		2,725	6,677	75,353
Forfeitures in period		66,242	10,000				6,596
Non-cash compensation expense										532,000	498,000
Restricted Stock Units (RSUs) [Member] | Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash compensation expense										57,000	79,000
Restricted Stock Units (RSUs) [Member] | Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash compensation expense										122,000	186,000
Restricted Stock Units (RSUs) [Member] | Employees and Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period		84,383
Non-cash compensation expense										$ 179,000	$ 265,000
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period		9,346
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period								94,972
Forfeitures in period						38,906					29,306
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation											9,806

EMPLOYEE BENEFIT PLAN (Details

EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 288,553	$ 412,990

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative) - Number	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			98.00%
Revenue Benchmark [Member]
Concentration Risk [Line Items]
Number of large commercial customers			4	4
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			35.00%	28.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			11.00%	18.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			11.00%	13.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			9.00%	12.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of large commercial customers	4	4
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	29.00%	29.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	24.00%	24.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	15.00%	13.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	13.00%	12.00%
Contract Assets [Member]
Concentration Risk [Line Items]
Number of large commercial customers	4	4
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	39.00%	50.00%
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	20.00%	12.00%
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12.00%	11.00%
Contract Assets [Member] | Customer Concentration Risk [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	9.00%	7.00%