CPI Aerostructures (CVU) 10-K 14 Apr 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Apr. 12, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
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			$ 18,845,469
Entity Common Stock, Shares Outstanding		12,566,784
Share Price			$ 1.69
Auditor Name	RSM US LLP
Auditor Location	New York, New York
Auditor Firm ID	49

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current Assets:
Cash	$ 3,847,225	$ 6,308,866
Accounts receivable, net	4,857,772	4,967,714
Insurance recovery receivable	3,600,000	2,850,000
Contract assets	27,384,540	24,459,339
Inventory	2,493,069	4,028,925
Refundable income taxes	40,000	40,000
Prepaid expenses and other current assets	975,830	625,075
Total Current Assets	43,198,436	43,279,919
Operating lease right-of-use assets	6,526,627	7,796,768
Property and equipment, net	1,124,556	1,646,863
Deferred tax asset	6,574,463
Intangibles, net		125,000
Goodwill	1,784,254	1,784,254
Other assets	238,744	372,741
Total Assets	59,447,080	55,005,545
Current Liabilities:
Accounts payable	8,029,996	10,429,018
Accrued expenses	7,344,590	6,102,587
Litigation settlement obligation	3,600,000	3,003,259
Contract liabilities	6,001,726	5,122,766
Loss reserve	576,549	1,495,714
Current portion of line of credit	1,200,000
Current portion of long-term debt	1,719,766	3,365,181
Operating lease liabilities	1,817,811	1,580,453
Income taxes payable	11,396	5,165
Total Current Liabilities	30,301,834	31,104,143
Line of credit, net of current portion	19,800,000	21,250,000
Long-term operating lease liabilities	5,077,235	6,445,728
Long-term debt, net of current portion	70,981	1,540,747
Total Liabilities	55,250,050	60,340,618
Shareholders’ Equity (Deficit):
Common stock - $.001 par value; authorized 50,000,000 shares, 12,506,795 and 12,335,683 shares, respectively, issued and outstanding	12,507	12,336
Additional paid-in capital	73,189,449	72,833,742
Accumulated deficit	(69,004,926)	(78,181,151)
Total Shareholders’ Equity (Deficit)	4,197,030	(5,335,073)
Total Liabilities and Shareholders’ Equity (Deficit)	$ 59,447,080	$ 55,005,545

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
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	12,506,795	12,335,683
Common stock, outstanding	12,506,795	12,335,683

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue	$ 83,335,764	$ 103,369,544
Cost of sales	67,031,502	88,364,452
Gross profit	16,304,262	15,005,092
Selling, general and administrative expenses	11,410,067	11,823,921
Income from operations	4,894,195	3,181,171
Other income (expense):
Other income		4,795,000
Interest expense	(2,271,101)	(1,141,189)
Total other income (expense), net	(2,271,101)	3,653,811
Income before provision for income taxes	2,623,094	6,834,982
Provision for (benefit from) income taxes	(6,553,131)	14,609
Net income	$ 9,176,225	$ 6,820,373
Shares used in computing income per common share:
Total shares	12,389,890	12,193,826
Unrestricted Shares [Member]
Income per common share:
Income per common share	$ 0.74	$ 0.56
Shares used in computing income per common share:
Total shares	12,286,781	11,960,134
Restricted Shares [Member]
Income per common share:
Income per common share	$ 0.74	$ 0.56
Shares used in computing income per common share:
Total shares	103,109	233,692

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, 2020	$ 11,951	$ 72,005,841	$ (85,001,524)	$ (12,983,732)
Beginning balance (in shares) at Dec. 31, 2020	11,951,271
Net income			6,820,373	6,820,373
Common stock forfeited	$ (42)			(42)
Common stock forfeited (in shares)	(41,199)
Stock-based compensation expense	$ 427	827,901		828,328
Stock-based compensation expense (in shares)	425,611
Ending balance, value at Dec. 31, 2021	$ 12,336	72,833,742	(78,181,151)	$ (5,335,073)
Ending balance (in shares) at Dec. 31, 2021	12,335,683			12,335,683
Net income			9,176,225	$ 9,176,225
Common stock forfeited	$ (221)			(221)
Common stock forfeited (in shares)	(220,721)
Stock-based compensation expense	$ 392	355,707		356,099
Stock-based compensation expense (in shares)	391,833
Ending balance, value at Dec. 31, 2022	$ 12,507	$ 73,189,449	$ (69,004,926)	$ 4,197,030
Ending balance (in shares) at Dec. 31, 2022	12,506,795			12,506,795

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 9,176,225	$ 6,820,373
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	688,096	1,029,067
Amortization of debt issuance costs	133,997	49,642
Cash expended below (in excess of) rent expense	139,006	(51,925)
Stock-based compensation expense	355,878	828,286
Change in deferred tax asset	(6,574,463)
Bad debt expense	72,099	127,413
Forgiveness of PPP loan		(4,795,000)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	37,843	(132,221)
Increase in insurance recovery receivable	(750,000)	(2,850,000)
Increase in contract assets	(2,925,201)	(4,729,701)
Decrease in inventory	1,535,856	2,357,363
Increase in prepaid expenses and other current assets	(350,755)	(321,422)
Decrease in accounts payable and accrued expenses	(1,157,019)	(1,499,000)
Increase in litigation settlement obligation	596,741	3,003,259
Increase in contract liabilities	878,960	3,472,217
Decrease in loss reserve	(919,165)	(513,533)
Increase in income taxes payable	6,231	4,217
Net cash provided by operating activities	944,329	2,799,035
Cash flows from investing activities:
Purchase of property and equipment	(40,789)	(29,188)
Net cash used in investing activities	(40,789)	(29,188)
Cash flows from financing activities:
Proceeds from line of credit		511,315
Principal payments on long-term debt	(3,365,181)	(3,005,833)
Net cash used in financing activities	(3,365,181)	(2,494,518)
Net increase (decrease) in cash	(2,461,641)	275,329
Cash at beginning of year	6,308,866	6,033,537
Cash at end of year	3,847,225	6,308,866
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	1,792,858	1,139,532
Cash paid for (received from) income taxes	$ 25,291	$ 10,392

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
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”), Welding Metallurgy, Inc. (“WMI”) and Compac Development Corporation, 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. CPI manufactures complex aerostructure assemblies, as well as aerosystems. Additionally, CPI supplies 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 for purposes of making operating decisions and assessing financial performance. The Company has determined that it has a single operating and reportable segment. Certain balances have been reclassified to conform to presentation requirements, including consistent presentation of the components of inventory (Note 5). Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates by management. Actual results could differ from these estimates. Revenue Recognition The Company follows 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 of costs to complete and resulting total estimated costs at completion. See Note 2, “Revenue Recognition”, 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 four 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, 2022 and 2021, the Company had $ 3,763,608 6,195,672 Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances, net of reserves. The Company calculates and maintains its accounts receivable reserves based on customer account agings as well as identification of any anticipated collectability issues by account, if applicable. The Company writes off accounts when they are deemed to be uncollectible. Inventory Inventories, which consist of raw materials, work in progress and finished goods, are reported at lower of cost or net realizable value using weighted average actual cost. Property and Equipment Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed utilizing the straight-line method over the estimated useful life of the asset. Leasehold improvements depreciation is computed over the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Leases The Company leases a building and various equipment. Under ASC 842, Leases (“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. 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. The ROU asset is amortized 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. Finance leases are treated as the purchase of an asset on a financing basis. At December 31, 2022, the Company has right of use assets and lease liabilities of $ 6,526,627 6,895,046 7,796,768 8,026,181 Goodwill Goodwill represents the excess of purchase price of an acquisition over the fair value of net assets acquired. Goodwill is not amortized but instead is assessed for impairment annually and when events and circumstances warrant an evaluation. The Company evaluates its goodwill on an annual basis during its fourth fiscal quarter. The Company has determined that it has a single operating and reportable segment, and assesses during its evaluation whether it believes it is more likely than not that the fair value of this reporting unit is greater than or less than its carrying amount by comparing the fair value of this reporting unit with its carrying value. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount by which the carrying value exceeds the fair value is recognized as an impairment loss. The Company performed its annual impairment assessment of goodwill as of December 31, 2022 and concluded that goodwill was not impaired. 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 by comparing the estimated undiscounted cash flows expected to result from the use of the asset and the estimated amounts expected to be realized upon the asset’s eventual disposition with the carrying value of the asset. If the carrying amount of the asset exceeds the aforementioned estimated expected undiscounted cash flows and estimated expected disposition proceeds, the Company measures the amount of the impairment to record by comparing the carrying amount of the asset with its estimated fair value. As of December 31, 2022, the Company determined that long-lived assets were not impaired. 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 equal to the stated value at December 31, 2022 and 2021. Fair Value At December 31, 2022 and 2021, the fair values of the Company’s current assets and current liabilities approximated their carrying values because of the short-term nature of these instruments. 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 22,790,747 $ 22,790,747 $ 26,155,928 $ 26,155,928 We estimated the fair value of debt using market quotes and calculations based on market rates. Income per share The Company complies with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share” and uses the two-class method in the calculation of earnings per share. Net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. During the twelve months ended December 31, 2022 and 2021, respectively, and as of December 31, 2022 and December 31, 2021, respectively, the Company had restricted shares of common stock that were considered participating securities and unrestricted shares of common stock outstanding. Earnings and losses are shared pro rata. For the years ended December 31, 2022 and 2021, respectively, our income per common share was calculated as follows: Year ended December 31, 2022 Year ended December 31, 2021 Net income $ 9,176,225 $ 6,820,373 Income per common share-unrestricted shares $ 0.74 $ 0.56 Income per common share-restricted shares $ 0.74 $ 0.56 Shares used in computing income per common share: Unrestricted shares 12,286,781 11,960,134 Restricted shares 103,109 233,692 Total shares 12,389,890 12,193,826 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 recognizes the effect of an income tax position only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 establishes accounting for stock-based awards exchanged for employee and nonemployees. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award on the grant date, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). Restricted stock awards are granted at the discretion of the Company’s board of directors. These awards are restricted as to the transfer of ownership and generally vest over the requisite service period. The Company recognizes forfeitures at the time the forfeiture occurs. Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), which require that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increase or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. On November 15, 2019, the FASB delayed the effective date for smaller reporting companies. The amendments in this update are now effective for fiscal years beginning after December 15, 2022 and interim periods within those annual periods. Early adoption for fiscal years beginning after December 15, 2018 is permitted. Management has evaluated the effect of this update on the Company’s consolidated financial statements and currently believes it will not have a material impact. Liquidity At December 31, 2022, our cash balance was $ 3,847,225 6,308,866 2,461,641 4,857,772 4,967,714 12,896,602 12,175,776 It is management’s estimation that there will likely not be any individual conditions or combination of events that will occur in the coming year which would cause the Company to be unable to meet its obligations or otherwise continue as a going concern. However, there can be no assurance that such plans will accomplish their intended goals.

REVENUE RECOGNITION

REVENUE RECOGNITION	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	2. REVENUE RECOGNITION 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. This is known as the over time revenue recognition. 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 as a percentage of total estimated costs at completion of the contract. 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. Contracts with Customers and Performance Obligations The majority of the Company’s revenues are from long-term contracts with the U.S. government and commercial contractors. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For the Company, the contract under ASC 606 is typically established upon execution of a purchase order either in accordance with a long-term customer contract or on a standalone basis. To determine the proper revenue recognition for our contracts, we must evaluate whether two or more contracts should be combined and accounted for as a single contract, and whether the combined or single contract should be accounted for as one performance obligation or more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or to separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a period. A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue. The Company’s performance obligations in its contracts with customers are typically the sale of each individual product contemplated in the contract or a single performance obligation representing a series of products when the contract contains multiple products that are substantially the same. The Company has elected to account for shipping performed after control over a product has transferred to a customer as fulfillment activities. When revenue is recognized in advance of incurring shipping costs, the costs related to the shipping are accrued. Shipping costs are included in costs of sales. The Company provides warranties on many of its products; however, since customers cannot purchase such warranties separately and they do not provide services beyond standard assurances, warranties are not separate performance obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation based on its estimated standalone selling price. When standalone selling prices are not available, the transaction price is allocated using an expected cost plus margin approach as pricing for such contracts is typically negotiated on the basis of cost. The contracts with the U.S. government typically are subject to the FAR, which provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. The pricing for commercial contractors are based on the specific negotiations with each customer and any taxes imposed by governmental authorities are excluded from revenue. The transaction price is primarily comprised of fixed consideration as the customer typically pays a fixed fee for each product sold. The Company does not adjust the amount of revenue to be recognized under a customer contract for the effects of the time value of money when the timing difference between receipt of payment and transferring the good or service is less than one year. The majority of the Company’s performance obligations are satisfied over time as the Company (i) sells products with no alternative use to the Company and (ii) has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date. The Company uses the cost-to-cost input method to measure progress for its performance obligations because it best depicts the transfer of control to the customer which occurs as the Company incurs costs on its contracts. The Company generally utilizes the portfolio approach to estimate the amount of revenue to recognize for its contracts and groups contracts together that have similar characteristics. 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. 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 total estimated costs expected at completion 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 and revenue recognition method: Year Ended Year Ended Aerostructure $ 36,972,117 $ 35,312,287 Aerosystems 30,795,874 31,259,852 Kitting and Supply Chain Management 15,567,773 36,797,405 Total $ 83,335,764 $ 103,369,544 Year Ended Year Ended Revenue recognized using over time revenue recognition model $ 75,911,241 $ 93,833,181 Revenue recognized using point in time revenue recognition model 7,424,523 9,536,363 Total $ 83,335,764 $ 103,369,544 Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2022, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $ 122.1

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	12 Months Ended
	Dec. 31, 2022
Contract Assets And Liabilities
CONTRACT ASSETS AND LIABILITIES	3. 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 assets. 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 liabilities. Schedule of contract assets and liabilities December 31, 2022 December 31, December 31, 2020 Contract assets $ 27,384,540 $ 24,459,339 $ 19,729,638 Contract liabilities 6,001,726 5,122,766 1,650,549 Net Contract assets $ 21,382,814 $ 19,336,573 $ 18,079,089 Revenue recognized for the year ended December 31, 2022, that was included in the contract liabilities balances as of January 1, 2022 was $ 3.6 1.6

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
ACCOUNTS RECEIVABLE	4. ACCOUNTS RECEIVABLE Accounts receivable consists of trade receivables as follows: December 31, 2022 December 31, December 31 2020 Billed receivables $ 5,139,757 $ 5,177,601 $ 5,226,468 Less: allowance for doubtful accounts (281,985 ) (209,887 ) (263,562 ) Total accounts receivable, net $ 4,857,772 $ 4,967,714 $ 4,962,906

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORY	5. INVENTORY The components of inventory consist of the following: December 31, 2022 2021 Raw materials $ 1,892,157 $ 2,033,216 Work in progress 685,438 1,413,672 Finished goods (Includes completed components) 3,038,859 3,568,192 Gross inventory $ 5,616,454 $ 7,015,080 Inventory reserves (3,123,386 ) (2,986,155 ) Inventory, net $ 2,493,069 $ 4,028,925

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	6. PROPERTY AND EQUIPMENT The components of property and equipment consist of the following: December 31, Estimated 2022 2021 Useful Life (years) Machinery and equipment $ 3,978,662 $ 3,978,662 5 7 Computer equipment 4,191,040 4,191,040 5 Furniture and fixtures 709,350 709,350 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 2,629,615 2,588,826 Lesser of lease term or 10 Total gross property and equipment 11,521,829 11,481,040 Less accumulated depreciation and amortization (10,397,273 ) (9,834,177 ) Total property and equipment, net $ 1,124,556 $ 1,646,863 Depreciation expense for the years ended December 31, 2022 and 2021 was $ 563,096 904,067 During the years ended December 31, 2022 and 2021, the Company did not acquire any property and equipment under finance leases. The assets acquired under finance leases as of December 31, 2022 and 2021, are as follows: December 31, 2022 2021 Machinery and equipment $ 1,114,044 $ 1,114,044 Computer equipment 527,188 527,188 Leasehold improvements 399,800 399,800 Total assets acquired under finance leases 2,041,032 2,041,032 Less accumulated depreciation and amortization (1,698,476 ) (1,439,073 ) Total assets acquired under finance leases, net $ 342,556 $ 601,959

INTANGIBLES AND GOODWILL

INTANGIBLES AND GOODWILL	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLES AND GOODWILL	7. INTANGIBLES AND GOODWILL The components of intangibles and goodwill consist of the following: December 31, 2022 2021 Gross Intangibles $ 500,000 $ 500,000 Less: amortization of intangibles (500,000 ) (375,000 ) Intangibles, net $ — $ 125,000 Goodwill $ 1,784,254 $ 1,784,254 The Company acquired WMI on December 20, 2018. The acquisition was accounted for as a business combination in accordance with ASC Topic 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 of WMI on December 30, 2018, the Company recorded Goodwill of $ 1,784,254 Also, as a result of the acquisition, the Company recorded an intangible asset of $ 500,000 four years 125,000

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
LINE OF CREDIT	8. LINE OF CREDIT On March 24, 2016, the Company entered into an Amended and Restated Credit Agreement with the lenders named therein and BankUnited, N.A. (“BankUnited”) as Sole Arranger, Agent and a Lender, dated as of March 24, 2016 (as amended, the “Credit Agreement” or the “BankUnited Facility”). The BankUnited Facility originally provided for a revolving credit loan commitment of $ 30 10 On May 11, 2021, the Company entered into a Waiver and Seventh Amendment (“Seventh” Amendment”) to the Credit Agreement. Under the Seventh Amendment, the parties amended the Credit Agreement by (a) extending the maturity date of the Revolving Loan and the Term Loan to July 31, 2022 On October 28, 2021, the Company entered into a Waiver and Eighth Amendment (the “Eighth Amendment”) to the Credit Agreement. Under the Eighth Amendment, the parties amended the Credit Agreement by (a) extending the maturity date of the Revolving Loan and the Term Loan to December 31, 2022 24 21 3 750,000 250,000 200,000 250,000 On April 12, 2022 the Company entered into a Consent, Waiver and Ninth Amendment (the “Ninth Amendment”) to the Credit Agreement. Under the Ninth Amendment, the parties amended the Credit Agreement by (a) extending the maturity date of the Revolving Loan and the Term Loan to September 30, 2023 750,000 250,000 200,000 2.5 5 6 7 8 On August 19, 2022, we entered into a Consent, Waiver and Tenth Amendment (the “Tenth Amendment”) to the Credit Agreement. Under the Tenth Amendment, the parties amended the Credit Agreement by (a) increasing the maximum leverage ratio applicable for the fiscal quarter ending September 30, 2022 to 5.0 566,025 367,045 795,997 On November 10, 2022, the Company entered into an Eleventh Amendment to the Credit Agreement (the “Eleventh Amendment”). Under the Eleventh Amendment, the parties amended the Credit Agreement by (a) extending the maturity date of the Revolving Loan and the Term Loan to November 30, 2023 200,000 250,000 3.5 On March 23, 2023, the Company entered into a Twelfth Amendment to the Credit Agreement (the “Twelfth Amendment”). Under the Twelfth Amendment, the parties amended the Credit Agreement by : (a) extending the maturity date of the Company’s existing revolving line of credit and its existing term loan to November 30, 2024 20,520,000 19,800,000 19,080,000 18,360,000 17,640,000 250,000 116,667 133,333 The Credit Agreement, as amended, requires us to maintain the following financial covenants (subject to the exclusions provided for in the previous paragraph): (a) minimum debt service coverage ratio of no less than 1.5 0.95 1.5 7.30 6.30 5.0 4.0 1.00 1 As of December 31, 2022 and December 31, 2021, the Company had $ 21,000,000 21,250,000 1,200,000 19,800,000 The BankUnited Facility is secured by all of the Company’s assets.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
DEBT	9. DEBT As described above, in connection with the Twelfth Amendment, the Company and BankUnited agreed to amend the Credit Agreement by: (a) extending the maturity date of the Company’s existing revolving line of credit and its existing term loan to November 30, 2024 20,520,000 19,800,000 19,080,000 18,360,000 17,640,000 250,000 116,667 133,333 As described above, in connection with the Eleventh Amendment, the Company and BankUnited agreed to amend the Credit Agreement by (a) extending the maturity date of the Revolving Loan and the Term Loan to November 30, 2023 200,000 250,000 3.5 As described above, in connection with the Tenth Amendment, the Company and BankUnited agreed to amend the Credit Agreement by (a) amending the maximum leverage ratio applicable for the fiscal quarter ending on September 30, 2022, and (b) consenting to and waiving certain covenant non-compliance under the Credit Agreement. Under the Tenth Amendment, there are no changes to interest rates or repayment schedule and the terms pertaining to interest rates and repayment schedule remain the same as described below as per the Ninth Amendment. The Tenth Amendment had no effect on the interest rates on the Revolving Term Loan or Term Loan. As described above, in connection with the Ninth Amendment, the Company and BankUnited agreed to extend the maturity dates of the Revolving Loan and Term Loan to September 30, 2023 750,000 250,000 750,000 200,000 2.5 5 6 7 8 In 2022, as consideration for the lenders entering into the Ninth Amendment, the Company paid a $ 62,833 250,000 908,000 131,000 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. All amounts have been classified as current or long term in accordance with the Note terms. On July 13, 2021, the Company received notification through Dime that the PPP Loan and accrued interest thereon were fully forgiven by the SBA and that the forgiveness payment date was July 1, 2021. The forgiveness of the PPP Loan was recognized as other income during the year ended December 31, 2021. The SBA reserves the right to audit any PPP Loan, for eligibility and other criteria, regardless of size. These audits may occur after forgiveness has been granted. In accordance with the CARES Act, all borrowers are required to maintain their PPP loan documentation for six years after the PPP Loan was forgiven and to provide that documentation to the SBA upon request. The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2022, are as follows: Year ending December 31, 2023 $ 1,719,766 2024 44,498 2025 26,483 Total $ 1,790,747 Included in the long-term debt are financing leases and notes payable totaling $ 207,414 422,595 136,433 215,181 The BankUnited Facility is secured by all of the Company’s assets and both the Revolving Loan and Term Loan bear interest at the Prime Rate + 3.50 7.50 11.00 At December 31, 2022 and 2021, the Term Loan had an aggregate principal balance due of $ 1,583,333 4,483,333

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases
LEASES	10. LEASES The Company leases manufacturing and office space under an agreement classified as an operating lease. On November 10, 2021, the Company executed the second amendment to the lease agreement for its manufacturing and office space, which extends the lease agreement’s expiration date to April 30, 2026. The lease agreement 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, 2022 and 2021, the Company’s operating lease expense was $ 2,101,596 1,873,455 Future minimum lease payments under non-cancellable operating leases as of December 31, 2022 were as follows: Year ending December 31, 2023 $ 2,140,254 2024 2,222,280 2025 2,276,850 2026 843,772 2027 116,724 Total undiscounted operating lease payments 7,599,880 Less imputed interest (704,834 ) Present value of operating lease payments $ 6,895,046 The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2022 and 2021: 2022 2021 Assets ROU assets, net $ 6,526,627 $ 7,796,768 Liabilities Current operating lease liabilities $ 1,817,811 $ 1,580,453 Long-term operating lease liabilities 5,077,235 6,445,728 Total lease liabilities $ 6,895,046 $ 8,026,181 The amortization expense of these assets under operating leases was $ 1,738,989 1,717,365 The Company’s weighted average remaining lease term for its operating leases is 3.4 5.3

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	11. 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 2018. 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, 2022 2021 Current: Federal $ — $ 1,210 State 21,332 13,399 Deferred: Federal (6,428,448) — State (146,015) — Total $ (6,553,131) $ 14,609 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, 2022 2021 Taxes computed at the federal statutory rate $ 550,850 $ 1,435,346 State income tax, net (98,499 ) 10,585 Research and development tax credit (190,656 ) (198,507 ) Change in valuation allowance (6,616,952 ) (247,094 ) PPP loan forgiveness — (1,006,950 ) Other 51,696 (22,879 ) Accrued loss reserve adjustment (253,738 ) — Permanent differences 4,168 44,108 Provision(benefit) for income taxes $ (6,553,131 ) $ 14,609 The components of deferred income tax assets and liabilities are as follows: Deferred Tax Assets: 2022 2021 Allowance for doubtful accounts $ 60,100 $ 45,794 Capitalized R&D 864,969 — Credit carryforwards 2,193,146 2,005,909 Inventory reserve 1,130,788 1,137,436 Accrued payroll 267,819 88,118 Loss contracts reserve 46,205 185,329 Restricted stock 160,989 191,076 Other 20,659 20,244 Acquisition costs 77,762 86,841 Lease liability 1,469,551 1,751,168 Accrued legal 159,849 33,438 Disallowed interest expense 1,268,226 801,385 Net operating loss carryforward 19,493,530 20,140,818 Deferred tax assets 27,213,593 26,487,556 Valuation allowance (14,916,923 ) (22,235,611 ) Deferred Tax Liabilities: Prepaid expenses 207,980 136,381 Revenue recognition 3,966,404 2,144,797 Property and equipment 156,794 269,653 ROU asset 1,391,029 1,701,114 Deferred tax liabilities $ 5,722,207 $ 4,251,945 Net deferred tax assets $ 6,574,463 $ — As of December 31, 2022, the Company had approximately $ 88.3 million 25 15.9 million 80 100 As a result of the Tax Cuts and Jobs Act of 2017 and the Coronavirus Aid, Relief, and Economic Security Act of 2020, federal NOLs arising before January 1, 2018, and NOLs arising after January 1, 2018, are subject to different rules. Our pre-2018 NOLs totaled approximately $ 78.9 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. The Company has completed a Section 382 analysis for the year ended December 31, 2022, and believes that no ownership change occurred during the relevant lookback period that would limit our ability to use our NOLs. 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. Assessing the realizability of deferred tax assets requires the determination of whether it is more likely than not that some portion or all the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carryback and tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years, as a significant piece of negative evidence to overcome. As of December 31, 2022, the Company achieved three years of cumulative book income, along with projections of profitability, for which management determined that there is sufficient positive evidence to conclude that it is more likely than not that a portion of the deferred tax assets will be realized. As such, $ 6.5 14.9 The income tax (benefit) for the year ended December 31, 2022 was $ (6,553,131) (249.8%)

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	12. STOCK-BASED COMPENSATION Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: 2022 2021 Cost of sales $ 36,794 $ 51,447 Selling, general and administrative 319,084 776,839 Total stock-based compensation expense $ 355,878 $ 828,286 The Company grants restricted stock units (“RSUs”) to its board of directors as partial compensation. These RSUs vest quarterly on a straight-line basis over a one-year period. The Company grants shares of common stock (“Restricted Stock Awards”) to select employees. In the event that the employee’s employment is voluntarily terminated prior to certain vesting dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. The following table summarizes activity related to outstanding RSUs and Restricted Stock Awards for the year ended December 31, 2022: Restricted Stock Awards Weighted Average Grant Date Fair Value of Restricted Stock Awards RSUs Weighted Average Grant Date Fair Value of RSUs Non-vested – January 1, 2022 285,968 $ 4.57 — $ — Granted 202,719 $ 1.78 190,114 $ 2.21 Vested (37,268 ) $ 3.95 (190,114 ) $ 2.21 Forfeited (212,235 ) $ 4.55 — $ — Non-vested – December 31, 2022 239,184 $ 2.32 — $ — As of December 31, 2022, unamortized stock-based compensation costs related to restricted share arrangements was $ 213,244

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLAN	13. 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 during the years ended December 31, 2022 and 2021 amounted to $ 343,077 381,066

MAJOR CUSTOMERS

MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2022
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	14. MAJOR CUSTOMERS For the year ended December 31, 2022, 35 17 12 10 32 19 12 10 At December 31, 2022, 38 21 17 13 30 23 18 At December 31, 2022, 27 20 16 16 34 16 12

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	15. LEGAL PROCEEDINGS Class Action Lawsuit A consolidated class action lawsuit (captioned Rodriguez v. CPI Aerostructures, Inc., et al. On May 20, 2021, the parties reached a settlement in the amount of $ 3,600,000 Shareholder Derivative Action Four shareholder derivative actions, each based on substantially the same facts as those alleged in the class action discussed above, have been filed against current members of our board of directors and certain of our current and former officers. The first action (captioned Moulton v. McCrosson, et.al. The second action (captioned Woodyard v. McCrosson, et al. The third action (captioned Berger v. McCrosson, et al. On March 19, 2021, the parties to the Moulton and Berger In re CPI Aerostructures Stockholder Derivative Litigation The fourth action (captioned Wurst v. Bazaar, et al. On June 13, 2022, the plaintiffs in the consolidated federal action informed the court that the Company and all defendants had reached an agreement in principle with all plaintiffs to settle the shareholder derivative lawsuits described above. On June 16, 2022, the plaintiffs in the consolidated federal action filed an unopposed motion for preliminary approval of the settlement. On July 22, 2022, the Court referred the motion to the magistrate judge. The magistrate judge held a conference on September 9, 2022 in the consolidated federal action. On February 14, 2023, the magistrate judge recommended that the Court grant the motion in its entirety. On March 6, 2023, the court granted preliminary approval of the proposed settlement. The proposed settlement is subject to final approval by the court. In addition to requiring final approval by the court, the proposed settlement is subject to certain conditions, including the filing with the SEC of the stipulation of settlement agreed to by the Company and plaintiff (the “Stipulation of Settlement”), and sending notice to potential class members. The terms of the proposed settlement are set forth in the Stipulation of Settlement. Should the proposed settlement receive final approval from the Court, it will result in the dismissal of the shareholder derivative lawsuits. As part of the proposed settlement, the Company has agreed to undertake (or confirm that it has undertaken already) certain corporate governance reforms. In addition, the Company and/or its insurer have agreed to pay a total of $ 585,000 Litigation Settlement Obligation and Insurance Recovery Receivable Pertaining to the Class Action Lawsuit and Shareholder Derivative Action The attorneys’ fees for both the Class Action Lawsuit and the Shareholder Derivative Action will be covered and paid by our directors’ and officers’ insurance carrier, after satisfaction of our $ 750,000 750,000 750,000 3,600,000 3,600,000

PRINCIPAL BUSINESS ACTIVITY A_2

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates by management. Actual results could differ from these estimates.
Revenue Recognition	Revenue Recognition The Company follows 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 of costs to complete and resulting total estimated costs at completion. See Note 2, “Revenue Recognition”, 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 four 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, 2022 and 2021, the Company had $ 3,763,608 6,195,672
Accounts Receivable	Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances, net of reserves. The Company calculates and maintains its accounts receivable reserves based on customer account agings as well as identification of any anticipated collectability issues by account, if applicable. The Company writes off accounts when they are deemed to be uncollectible.
Inventory	Inventory Inventories, which consist of raw materials, work in progress and finished goods, 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 carried at cost, net of accumulated depreciation. Depreciation is computed utilizing the straight-line method over the estimated useful life of the asset. Leasehold improvements depreciation is computed over the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred.
Leases	Leases The Company leases a building and various equipment. Under ASC 842, Leases (“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. 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. The ROU asset is amortized 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. Finance leases are treated as the purchase of an asset on a financing basis. At December 31, 2022, the Company has right of use assets and lease liabilities of $ 6,526,627 6,895,046 7,796,768 8,026,181
Goodwill	Goodwill Goodwill represents the excess of purchase price of an acquisition over the fair value of net assets acquired. Goodwill is not amortized but instead is assessed for impairment annually and when events and circumstances warrant an evaluation. The Company evaluates its goodwill on an annual basis during its fourth fiscal quarter. The Company has determined that it has a single operating and reportable segment, and assesses during its evaluation whether it believes it is more likely than not that the fair value of this reporting unit is greater than or less than its carrying amount by comparing the fair value of this reporting unit with its carrying value. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount by which the carrying value exceeds the fair value is recognized as an impairment loss. The Company performed its annual impairment assessment of goodwill as of December 31, 2022 and concluded that goodwill was not impaired.
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 by comparing the estimated undiscounted cash flows expected to result from the use of the asset and the estimated amounts expected to be realized upon the asset’s eventual disposition with the carrying value of the asset. If the carrying amount of the asset exceeds the aforementioned estimated expected undiscounted cash flows and estimated expected disposition proceeds, the Company measures the amount of the impairment to record by comparing the carrying amount of the asset with its estimated fair value. As of December 31, 2022, the Company determined that long-lived assets were not impaired.
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 equal to the stated value at December 31, 2022 and 2021.
Fair Value	Fair Value At December 31, 2022 and 2021, the fair values of the Company’s current assets and current liabilities approximated their carrying values because of the short-term nature of these instruments. 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 22,790,747 $ 22,790,747 $ 26,155,928 $ 26,155,928 We estimated the fair value of debt using market quotes and calculations based on market rates.
Income per share	Income per share The Company complies with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share” and uses the two-class method in the calculation of earnings per share. Net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. During the twelve months ended December 31, 2022 and 2021, respectively, and as of December 31, 2022 and December 31, 2021, respectively, the Company had restricted shares of common stock that were considered participating securities and unrestricted shares of common stock outstanding. Earnings and losses are shared pro rata. For the years ended December 31, 2022 and 2021, respectively, our income per common share was calculated as follows: Year ended December 31, 2022 Year ended December 31, 2021 Net income $ 9,176,225 $ 6,820,373 Income per common share-unrestricted shares $ 0.74 $ 0.56 Income per common share-restricted shares $ 0.74 $ 0.56 Shares used in computing income per common share: Unrestricted shares 12,286,781 11,960,134 Restricted shares 103,109 233,692 Total shares 12,389,890 12,193,826
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 recognizes the effect of an income tax position only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 establishes accounting for stock-based awards exchanged for employee and nonemployees. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award on the grant date, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity grant). Restricted stock awards are granted at the discretion of the Company’s board of directors. These awards are restricted as to the transfer of ownership and generally vest over the requisite service period. The Company recognizes forfeitures at the time the forfeiture occurs.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), which require that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increase or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. On November 15, 2019, the FASB delayed the effective date for smaller reporting companies. The amendments in this update are now effective for fiscal years beginning after December 15, 2022 and interim periods within those annual periods. Early adoption for fiscal years beginning after December 15, 2018 is permitted. Management has evaluated the effect of this update on the Company’s consolidated financial statements and currently believes it will not have a material impact.
Liquidity	Liquidity At December 31, 2022, our cash balance was $ 3,847,225 6,308,866 2,461,641 4,857,772 4,967,714 12,896,602 12,175,776 It is management’s estimation that there will likely not be any individual conditions or combination of events that will occur in the coming year which would cause the Company to be unable to meet its obligations or otherwise continue as a going concern. However, there can be no assurance that such plans will accomplish their intended goals.

PRINCIPAL BUSINESS ACTIVITY A_3

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
At December 31, 2022 and 2021, the fair values of the Company’s current assets and current liabilities approximated their carrying values because of the short-term nature of these instruments.	At December 31, 2022 and 2021, the fair values of the Company’s current assets and current liabilities approximated their carrying values because of the short-term nature of these instruments. 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 22,790,747 $ 22,790,747 $ 26,155,928 $ 26,155,928
For the years ended December 31, 2022 and 2021, respectively, our income per common share was calculated as follows:	For the years ended December 31, 2022 and 2021, respectively, our income per common share was calculated as follows: Year ended December 31, 2022 Year ended December 31, 2021 Net income $ 9,176,225 $ 6,820,373 Income per common share-unrestricted shares $ 0.74 $ 0.56 Income per common share-restricted shares $ 0.74 $ 0.56 Shares used in computing income per common share: Unrestricted shares 12,286,781 11,960,134 Restricted shares 103,109 233,692 Total shares 12,389,890 12,193,826

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
The following table presents the Company’s revenue disaggregated by contract type and revenue recognition method:	The following table presents the Company’s revenue disaggregated by contract type and revenue recognition method: Year Ended Year Ended Aerostructure $ 36,972,117 $ 35,312,287 Aerosystems 30,795,874 31,259,852 Kitting and Supply Chain Management 15,567,773 36,797,405 Total $ 83,335,764 $ 103,369,544 Year Ended Year Ended Revenue recognized using over time revenue recognition model $ 75,911,241 $ 93,833,181 Revenue recognized using point in time revenue recognition model 7,424,523 9,536,363 Total $ 83,335,764 $ 103,369,544

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Contract Assets And Liabilities
Schedule of contract assets and liabilities	Schedule of contract assets and liabilities December 31, 2022 December 31, December 31, 2020 Contract assets $ 27,384,540 $ 24,459,339 $ 19,729,638 Contract liabilities 6,001,726 5,122,766 1,650,549 Net Contract assets $ 21,382,814 $ 19,336,573 $ 18,079,089

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable consists of trade receivables as follows:	Accounts receivable consists of trade receivables as follows: December 31, 2022 December 31, December 31 2020 Billed receivables $ 5,139,757 $ 5,177,601 $ 5,226,468 Less: allowance for doubtful accounts (281,985 ) (209,887 ) (263,562 ) Total accounts receivable, net $ 4,857,772 $ 4,967,714 $ 4,962,906

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
The components of inventory consist of the following:	The components of inventory consist of the following: December 31, 2022 2021 Raw materials $ 1,892,157 $ 2,033,216 Work in progress 685,438 1,413,672 Finished goods (Includes completed components) 3,038,859 3,568,192 Gross inventory $ 5,616,454 $ 7,015,080 Inventory reserves (3,123,386 ) (2,986,155 ) Inventory, net $ 2,493,069 $ 4,028,925

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
The components of property and equipment consist of the following:	The components of property and equipment consist of the following: December 31, Estimated 2022 2021 Useful Life (years) Machinery and equipment $ 3,978,662 $ 3,978,662 5 7 Computer equipment 4,191,040 4,191,040 5 Furniture and fixtures 709,350 709,350 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 2,629,615 2,588,826 Lesser of lease term or 10 Total gross property and equipment 11,521,829 11,481,040 Less accumulated depreciation and amortization (10,397,273 ) (9,834,177 ) Total property and equipment, net $ 1,124,556 $ 1,646,863
The assets acquired under finance leases as of December 31, 2022 and 2021, are as follows:	During the years ended December 31, 2022 and 2021, the Company did not acquire any property and equipment under finance leases. The assets acquired under finance leases as of December 31, 2022 and 2021, are as follows: December 31, 2022 2021 Machinery and equipment $ 1,114,044 $ 1,114,044 Computer equipment 527,188 527,188 Leasehold improvements 399,800 399,800 Total assets acquired under finance leases 2,041,032 2,041,032 Less accumulated depreciation and amortization (1,698,476 ) (1,439,073 ) Total assets acquired under finance leases, net $ 342,556 $ 601,959

INTANGIBLES AND GOODWILL (Table

INTANGIBLES AND GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
The components of intangibles and goodwill consist of the following:	The components of intangibles and goodwill consist of the following: December 31, 2022 2021 Gross Intangibles $ 500,000 $ 500,000 Less: amortization of intangibles (500,000 ) (375,000 ) Intangibles, net $ — $ 125,000 Goodwill $ 1,784,254 $ 1,784,254

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2022, are as follows:	The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2022, are as follows: Year ending December 31, 2023 $ 1,719,766 2024 44,498 2025 26,483 Total $ 1,790,747

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases
Future minimum lease payments under non-cancellable operating leases as of December 31, 2022 were as follows:	Future minimum lease payments under non-cancellable operating leases as of December 31, 2022 were as follows: Year ending December 31, 2023 $ 2,140,254 2024 2,222,280 2025 2,276,850 2026 843,772 2027 116,724 Total undiscounted operating lease payments 7,599,880 Less imputed interest (704,834 ) Present value of operating lease payments $ 6,895,046
The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2022 and 2021:	The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2022 and 2021: 2022 2021 Assets ROU assets, net $ 6,526,627 $ 7,796,768 Liabilities Current operating lease liabilities $ 1,817,811 $ 1,580,453 Long-term operating lease liabilities 5,077,235 6,445,728 Total lease liabilities $ 6,895,046 $ 8,026,181

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
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, 2022 2021 Current: Federal $ — $ 1,210 State 21,332 13,399 Deferred: Federal (6,428,448) — State (146,015) — Total $ (6,553,131) $ 14,609
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, 2022 2021 Taxes computed at the federal statutory rate $ 550,850 $ 1,435,346 State income tax, net (98,499 ) 10,585 Research and development tax credit (190,656 ) (198,507 ) Change in valuation allowance (6,616,952 ) (247,094 ) PPP loan forgiveness — (1,006,950 ) Other 51,696 (22,879 ) Accrued loss reserve adjustment (253,738 ) — Permanent differences 4,168 44,108 Provision(benefit) for income taxes $ (6,553,131 ) $ 14,609
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: 2022 2021 Allowance for doubtful accounts $ 60,100 $ 45,794 Capitalized R&D 864,969 — Credit carryforwards 2,193,146 2,005,909 Inventory reserve 1,130,788 1,137,436 Accrued payroll 267,819 88,118 Loss contracts reserve 46,205 185,329 Restricted stock 160,989 191,076 Other 20,659 20,244 Acquisition costs 77,762 86,841 Lease liability 1,469,551 1,751,168 Accrued legal 159,849 33,438 Disallowed interest expense 1,268,226 801,385 Net operating loss carryforward 19,493,530 20,140,818 Deferred tax assets 27,213,593 26,487,556 Valuation allowance (14,916,923 ) (22,235,611 ) Deferred Tax Liabilities: Prepaid expenses 207,980 136,381 Revenue recognition 3,966,404 2,144,797 Property and equipment 156,794 269,653 ROU asset 1,391,029 1,701,114 Deferred tax liabilities $ 5,722,207 $ 4,251,945 Net deferred tax assets $ 6,574,463 $ —

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows:	Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: 2022 2021 Cost of sales $ 36,794 $ 51,447 Selling, general and administrative 319,084 776,839 Total stock-based compensation expense $ 355,878 $ 828,286
The following table summarizes activity related to outstanding RSUs and Restricted Stock Awards for the year ended December 31, 2022:	The following table summarizes activity related to outstanding RSUs and Restricted Stock Awards for the year ended December 31, 2022: Restricted Stock Awards Weighted Average Grant Date Fair Value of Restricted Stock Awards RSUs Weighted Average Grant Date Fair Value of RSUs Non-vested – January 1, 2022 285,968 $ 4.57 — $ — Granted 202,719 $ 1.78 190,114 $ 2.21 Vested (37,268 ) $ 3.95 (190,114 ) $ 2.21 Forfeited (212,235 ) $ 4.55 — $ — Non-vested – December 31, 2022 239,184 $ 2.32 — $ —

At December 31, 2022 and 2021,

At December 31, 2022 and 2021, the fair values of the Company’s current assets and current liabilities approximated their carrying values because of the short-term nature of these instruments. (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Line of credit and long-term debt	$ 22,790,747	$ 26,155,928
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Line of credit and long-term debt	$ 22,790,747	$ 26,155,928

For the years ended December 31

For the years ended December 31, 2022 and 2021, respectively, our income per common share was calculated as follows: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net income	$ 9,176,225	$ 6,820,373
Shares used in computing income per common share:
Total shares	12,389,890	12,193,826
Unrestricted Shares [Member]
Income per common share	$ 0.74	$ 0.56
Shares used in computing income per common share:
Total shares	12,286,781	11,960,134
Restricted Shares [Member]
Income per common share	$ 0.74	$ 0.56
Shares used in computing income per common share:
Total shares	103,109	233,692

PRINCIPAL BUSINESS ACTIVITY A_4

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash uninsured amount	$ 3,763,608	$ 6,195,672
Operating lease right-of-use assets	6,526,627	7,796,768
Operating lease liabilities	6,895,046	8,026,181
Cash	3,847,225	6,308,866
Decrease in cash	2,461,641	(275,329)
Accounts receivable, net	4,857,772	4,967,714	$ 4,962,906
Working capital	$ 12,896,602	$ 12,175,776

The following table presents th

The following table presents the Company’s revenue disaggregated by contract type and revenue recognition method: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 83,335,764	$ 103,369,544
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	75,911,241	93,833,181
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,424,523	9,536,363
Aerostructure [Member]
Disaggregation of Revenue [Line Items]
Revenue	36,972,117	35,312,287
Aerosystems [Member]
Disaggregation of Revenue [Line Items]
Revenue	30,795,874	31,259,852
Kitting and Supply Chain Management [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 15,567,773	$ 36,797,405

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) $ in Millions	Dec. 31, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 122.1

Schedule of contract assets and

Schedule of contract assets and liabilities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Contract Assets And Liabilities
Contract assets	$ 27,384,540	$ 24,459,339	$ 19,729,638
Contract liabilities	6,001,726	5,122,766	1,650,549
Net Contract assets	$ 21,382,814	$ 19,336,573	$ 18,079,089

CONTRACT ASSETS AND LIABILITI_3

CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Contract Assets And Liabilities
Revenue recognized that was included in contract liabilities	$ 3.6	$ 1.6

Accounts receivable consists of

Accounts receivable consists of trade receivables as follows: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Billed receivables	$ 5,139,757	$ 5,177,601	$ 5,226,468
Less: allowance for doubtful accounts	(281,985)	(209,887)	(263,562)
Total accounts receivable, net	$ 4,857,772	$ 4,967,714	$ 4,962,906

The components of inventory con

The components of inventory consist of the following: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 1,892,157	$ 2,033,216
Work in progress	685,438	1,413,672
Finished goods (Includes completed components)	3,038,859	3,568,192
Gross inventory	5,616,454	7,015,080
Inventory reserves	(3,123,386)	(2,986,155)
Inventory, net	$ 2,493,069	$ 4,028,925

The components of property and

The components of property and equipment consist of the following: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 11,521,829	$ 11,481,040
Less accumulated depreciation and amortization	(10,397,273)	(9,834,177)
Property and equipment, net	1,124,556	1,646,863
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,978,662	3,978,662
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, Plant and Equipment, Gross	$ 4,191,040	4,191,040
Estimated useful life	5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 709,350	709,350
Estimated useful life	7 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 13,162	13,162
Estimated useful life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,629,615	$ 2,588,826
Estimated useful life	10 years

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation expenses	$ 563,096	$ 904,067

The assets acquired under finan

The assets acquired under finance leases as of December 31, 2022 and 2021, are as follows: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total assets acquired under finance leases	$ 2,041,032	$ 2,041,032
Less accumulated depreciation and amortization	(1,698,476)	(1,439,073)
Total assets acquired under finance leases, net	342,556	601,959
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total assets acquired under finance leases	1,114,044	1,114,044
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total assets acquired under finance leases	527,188	527,188
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total assets acquired under finance leases	$ 399,800	$ 399,800

The components of intangibles a

The components of intangibles and goodwill consist of the following: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Gross Intangibles	$ 500,000	$ 500,000
Less: amortization of intangibles	(500,000)	(375,000)
Intangibles, net		125,000
Goodwill	$ 1,784,254	$ 1,784,254

INTANGIBLES AND GOODWILL (Detai

INTANGIBLES AND GOODWILL (Details Narrative) - USD ($)		12 Months Ended
	Dec. 30, 2018	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 1,784,254	$ 1,784,254
Amortization of Intangible Assets		$ 125,000	$ 125,000
Welding Metallurgy Inc [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 1,784,254
Intangible Assets, Current	$ 500,000
Intangible asset useful life	4 years

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative)							12 Months Ended
	Mar. 23, 2023 USD ($)	Nov. 10, 2022 USD ($)	Aug. 19, 2022 USD ($)	Apr. 12, 2022 USD ($)	Oct. 28, 2021 USD ($)	May 11, 2021	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 26, 2021 USD ($)	Mar. 24, 2016 USD ($)
Debt Instrument [Line Items]
Current portion of line of credit							$ 1,200,000
Line of credit, net of current portion							$ 19,800,000	21,250,000
Bank United [Member]
Debt Instrument [Line Items]
Maximum leverage ratio, period 1							7.30
Maximum leverage ratio, period 2							6.30
Maximum leverage ratio, period 3							5
Maximum leverage ratio, period 4							4
Bank United [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Minimum debt service coverage ratio future periods							1.5
Bank United [Member] | Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Minimum debt service coverage ratio future periods							0.95
Bank United [Member] | Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Minimum debt service coverage ratio future periods							1.5
Bank United [Member] | Minimum [Member]
Debt Instrument [Line Items]
Net income required under agreement							$ 1
Minimum adjusted EBITDA							1,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity										$ 30,000,000
Revolving Credit Facility [Member] | Bank United [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 21,000,000				$ 24,000,000
Liquidity covenant eliminated					3,000,000
Line of credit oustanding							21,000,000	$ 21,250,000
Current portion of line of credit							1,200,000
Line of credit, net of current portion							$ 19,800,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Amendment fee	$ 250,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period One [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	20,520,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Two [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	19,800,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Three [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	19,080,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Four [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	18,360,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Five [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	17,640,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | First Installment [Member]
Debt Instrument [Line Items]
Amendment fee	116,667
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Second Installment [Member]
Debt Instrument [Line Items]
Amendment fee	$ 133,333
Term loan [Member]
Debt Instrument [Line Items]
Debt instrument, face amount										$ 10,000,000
Term loan [Member] | Bank United [Member]
Debt Instrument [Line Items]
Repayment of principal under agreement		$ 200,000		$ 750,000	750,000
Repayment of principal installment under agreement		$ 250,000		250,000	250,000
Debt instrument, periodic payment, principal				$ 200,000	200,000
Amendment fee					$ 250,000
Debt Instrument, Basis Spread on Variable Rate		3.50%
Term loan [Member] | Bank United [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate				2.50%
Term loan [Member] | Bank United [Member] | Prime Rate One [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate				5%
Term loan [Member] | Bank United [Member] | Prime Rate Period Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate				6%
Term loan [Member] | Bank United [Member] | Prime Rate Period Three [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate				7%
Term loan [Member] | Bank United [Member] | Prime Rate Period Four [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate				8%
Revolving Loan and Term Loan [Member] | Bank United [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Date		Nov. 30, 2023		Sep. 30, 2023	Dec. 31, 2022	Jul. 31, 2022
Losses Incurred Under Agreement			$ 566,025
Reserve Under Agreement			367,045
Expenses Under Agreement			$ 795,997
Revolving Loan and Term Loan [Member] | Bank United [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Date	Nov. 30, 2024
Revolving Loan and Term Loan [Member] | Bank United [Member] | Maximum [Member]
Debt Instrument [Line Items]
Maximum leverage ratio			5
Revolving Loan and Term Loan [Member] | Bank United [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate							3.50%

The maturities of the long-term

The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2022, are as follows: (Details)	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 1,719,766
2024	44,498
2025	26,483
Total	$ 1,790,747

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)							12 Months Ended
	Mar. 23, 2023	Nov. 10, 2022	Apr. 12, 2022	Oct. 28, 2021	May 11, 2021	Apr. 10, 2020	Dec. 31, 2022	Dec. 31, 2021	Oct. 26, 2021	Mar. 24, 2016
Line of Credit Facility [Line Items]
Financing leases and notes payable							$ 207,414	$ 422,595
Financing leases and notes payable current							$ 136,433	215,181
Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate							7.50%
Bank United [Member]
Line of Credit Facility [Line Items]
Commitment and agent fees							$ 62,833	250,000
Payments of debt issuance costs							908,000
Debt issuance costs included in other assets							$ 131,000
BNB Bank [Member] | PPP Loan [Member]
Line of Credit Facility [Line Items]
Debt instrument, face amount						$ 4,795,000
Debt instrument, interest rate						1%
Debt instrument, term						2 years
Revolving Loan and Term Loan [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date		Nov. 30, 2023	Sep. 30, 2023	Dec. 31, 2022	Jul. 31, 2022
Interest rate							11%
Revolving Loan and Term Loan [Member] | Bank United [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Prime rate Plus							3.50%
Revolving Loan and Term Loan [Member] | Bank United [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Nov. 30, 2024
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity										$ 30,000,000
Revolving Credit Facility [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 21,000,000					$ 24,000,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Amendment fee	$ 250,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period One [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	20,520,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Two [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	19,800,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Three [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	19,080,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Four [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	18,360,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Period Five [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	17,640,000
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | First Installment [Member]
Line of Credit Facility [Line Items]
Amendment fee	116,667
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | Second Installment [Member]
Line of Credit Facility [Line Items]
Amendment fee	$ 133,333
Term loan [Member]
Line of Credit Facility [Line Items]
Debt instrument, face amount										$ 10,000,000
Aggregate principal balance							$ 1,583,333	$ 4,483,333
Term loan [Member] | Bank United [Member]
Line of Credit Facility [Line Items]
Amendment fee				250,000
Repayment of principal under agreement		$ 200,000	$ 750,000	750,000
Repayment of principal installment under agreement		$ 250,000	250,000	250,000
Prime rate Plus		3.50%
Debt Instrument, Periodic Payment, Principal			$ 200,000	$ 200,000
Term loan [Member] | Bank United [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Prime rate Plus			2.50%
Term loan [Member] | Bank United [Member] | Prime Rate One [Member]
Line of Credit Facility [Line Items]
Prime rate Plus			5%
Term loan [Member] | Bank United [Member] | Prime Rate Period Two [Member]
Line of Credit Facility [Line Items]
Prime rate Plus			6%
Term loan [Member] | Bank United [Member] | Prime Rate Period Three [Member]
Line of Credit Facility [Line Items]
Prime rate Plus			7%
Term loan [Member] | Bank United [Member] | Prime Rate Period Four [Member]
Line of Credit Facility [Line Items]
Prime rate Plus			8%

Future minimum lease payments u

Future minimum lease payments under non-cancellable operating leases as of December 31, 2022 were as follows: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Leases
2023	$ 2,140,254
2024	2,222,280
2025	2,276,850
2026	843,772
2027	116,724
Total undiscounted operating lease payments	7,599,880
Less imputed interest	(704,834)
Present value of operating lease payments	$ 6,895,046	$ 8,026,181

The following table sets forth

The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2022 and 2021: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Assets
ROU assets, net	$ 6,526,627	$ 7,796,768
Liabilities
Current operating lease liabilities	1,817,811	1,580,453
Long-term operating lease liabilities	5,077,235	6,445,728
Total lease liabilities	$ 6,895,046	$ 8,026,181

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases
Operating lease expense	$ 2,101,596	$ 1,873,455
Amortization of operating lease assets	$ 1,738,989	$ 1,717,365
Weighted average remaining lease term operating leases	3 years 4 months 24 days
Weighted average discount rate for its operating leases	5.30%

The provision (benefit) for inc

The provision (benefit) for income taxes consists of the following: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal		$ 1,210
State	21,332	13,399
Deferred:
Federal	(6,428,448)
State	(146,015)
Total	$ (6,553,131)	$ 14,609

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, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Taxes computed at the federal statutory rate	$ 550,850	$ 1,435,346
State income tax, net	(98,499)	10,585
Research and development tax credit	(190,656)	(198,507)
Change in valuation allowance	(6,616,952)	(247,094)
PPP loan forgiveness		(1,006,950)
Other	51,696	(22,879)
Accrued loss reserve adjustment	(253,738)
Permanent differences	4,168	44,108
Provision(benefit) for income taxes	$ (6,553,131)	$ 14,609

The components of deferred inco

The components of deferred income tax assets and liabilities are as follows: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Deferred Tax Assets:
Allowance for doubtful accounts	$ 60,100	$ 45,794
Capitalized R&D	864,969
Credit carryforwards	2,193,146	2,005,909
Inventory reserve	1,130,788	1,137,436
Accrued payroll	267,819	88,118
Loss contracts reserve	46,205	185,329
Restricted stock	160,989	191,076
Other	20,659	20,244
Acquisition costs	77,762	86,841
Lease liability	1,469,551	1,751,168
Accrued legal	159,849	33,438
Disallowed interest expense	1,268,226	801,385
Net operating loss carryforward	19,493,530	20,140,818
Deferred tax assets	27,213,593	26,487,556
Valuation allowance	(14,916,923)	(22,235,611)
Deferred Tax Liabilities:
Prepaid expenses	207,980	136,381
Revenue recognition	3,966,404	2,144,797
Property and equipment	156,794	269,653
ROU asset	1,391,029	1,701,114
Deferred tax liabilities	5,722,207	4,251,945
Net deferred tax assets	$ 6,574,463

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Valuation allowance released	$ 6,500,000
Valuation allowance balance	14,916,923	$ 22,235,611
Income tax benefit	$ (6,553,131)	$ 14,609
Effective tax benefit rate	(249.80%)
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 88,300,000
Internal Revenue Service (IRS) [Member] | Tax Year 2018 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 15,900,000
Offset taxable income for regular tax purpose (percent)	80%
Internal Revenue Service (IRS) [Member] | Tax Year 2017 [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 78,900,000
Offset taxable income for regular tax purpose (percent)	100%
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 25,000,000
NOL description	The state NOLs begin to expire in 2034.
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
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, federal NOLs arising before January 1, 2018, and NOLs arising after January 1, 2018, are subject to different rules. Our pre-2018 NOLs totaled approximately $78.9 million; these NOLs will expire in varying amounts from 2034 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 taxable income for tax years before January 1, 2021 and up to 80% of 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.

Stock-based compensation expens

Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 355,878	$ 828,286
Cost of Sales [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	36,794	51,447
Selling, General and Administrative Expenses [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 319,084	$ 776,839

The following table summarizes

The following table summarizes activity related to outstanding RSUs and Restricted Stock Awards for the year ended December 31, 2022: (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non vested January 1, 2022 | shares	285,968
Non vested January 1, 2022 | $ / shares	$ 4.57
Granted | shares	202,719
Granted | $ / shares	$ 1.78
Vested | shares	(37,268)
Vested | $ / shares	$ 3.95
Forfeited | shares	(212,235)
Forfeited | $ / shares	$ 4.55
Non vested December 31, 2022 | shares	239,184
Non vested December 31, 2022 | $ / shares	$ 2.32
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non vested January 1, 2022 | shares
Non vested January 1, 2022 | $ / shares
Granted | shares	190,114
Granted | $ / shares	$ 2.21
Vested | shares	(190,114)
Vested | $ / shares	$ 2.21
Forfeited | shares
Forfeited | $ / shares
Non vested December 31, 2022 | shares
Non vested December 31, 2022 | $ / shares

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative)	Dec. 31, 2022 USD ($)
Share-Based Payment Arrangement [Abstract]
Unamortized stock-based compensation costs	$ 213,244

EMPLOYEE BENEFIT PLAN (Details

EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 343,077	$ 381,066

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	35%	32%
Revenue Benchmark [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	17%	19%
Revenue Benchmark [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12%	12%
Revenue Benchmark [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10%	10%
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	38%	30%
Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	21%	23%
Accounts Receivable [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	17%	18%
Accounts Receivable [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	13%
Contract Assets [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	27%	34%
Contract Assets [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	20%	16%
Contract Assets [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	16%	12%
Contract Assets [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	16%

LEGAL PROCEEDINGS (Details Narr

LEGAL PROCEEDINGS (Details Narrative) - USD ($)			12 Months Ended
	Mar. 06, 2023	May 20, 2021	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Settlement amount		$ 3,600,000
Covered settlement amount			$ 750,000
Directors and officers insurance retention amount			750,000
Litigation settlement obligation			3,600,000	$ 3,003,259
Insurance recovery receivable			$ 3,600,000	$ 2,850,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Legal Fees	$ 585,000