CPI Aerostructures (CVU) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Entity Registrant Name	CPI AEROSTRUCTURES INC
Entity Central Index Key	889,348
Trading Symbol	cvu
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		8,577,256
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash	$ 1,893,534	$ 1,504,907
Accounts receivable, net	8,728,857	6,466,814
Costs and estimated earnings in excess of billings on uncompleted contracts	96,537,127	79,054,139
Deferred income taxes	$ 2,102,000	1,708,000
Refundable income taxes		8,138,322
Prepaid expenses and other current assets	$ 909,565	828,275
Total current assets	110,171,083	97,700,457
Plant and equipment, net	2,374,757	2,755,186
Deferred income taxes	1,439,000	3,591,000
Other assets	108,080	108,080
Total Assets	114,092,920	104,154,723
Current Liabilities:
Accounts payable	14,174,354	8,928,456
Accrued expenses	1,285,357	1,061,747
Billings in excess of costs and estimated earnings on uncompleted contracts	113,115	193,650
Current portion of long-term debt	999,712	971,713
Contract loss	990,364	396,182
Line of credit	24,700,000	25,150,000
Income tax payable	182,592	6,067
Deferred income taxes	153,000	128,000
Total current liabilities	42,598,494	36,835,815
Long-term debt, net of current portion	625,034	1,289,843
Deferred income taxes	459,000	622,000
Other liabilities	624,516	593,909
Total Liabilities	44,307,044	39,341,567
Shareholders’ Equity:
Common stock - $.001 par value; authorized 50,000,000 shares, 8,564,417 and 8,500,555 shares, respectively, issued and outstanding	8,564	8,501
Additional paid-in capital	52,045,208	51,440,770
Retained earnings	17,737,914	13,373,601
Accumulated other comprehensive loss	(5,810)	(9,716)
Total Shareholders’ Equity	69,785,876	64,813,156
Total Liabilities and Shareholders’ Equity	$ 114,092,920	$ 104,154,723

Condensed Balance Sheets (Curr3

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	8,564,417	8,500,555
Common stock, shares outstanding (in shares)	8,564,417	8,500,555

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue	$ 26,790,881	$ 21,487,677	$ 68,611,766	$ 19,619,571
Cost of sales	21,194,449	17,016,373	55,564,894	53,620,290
Gross profit (loss)	5,596,432	4,471,304	13,046,872	(34,000,719)
Selling, general and administrative expenses	1,898,965	1,800,878	5,968,123	5,424,581
Income (loss) from operations	3,697,467	2,670,426	7,078,749	(39,425,300)
Interest expense	218,382	67,879	703,436	370,234
Income (loss) before provision for (benefit from) income taxes	3,479,085	2,602,547	6,375,313	(39,795,534)
Provision for (benefit from) income taxes	1,033,000	905,000	2,011,000	(12,869,000)
Net income (loss)	2,446,085	1,697,547	4,364,313	(26,926,534)
Other comprehensive income, net of tax - Change in unrealized gain- interest rate swap	1,382	5,095	3,906	9,727
Comprehensive income (loss)	$ 2,447,467	$ 1,702,642	$ 4,368,219	$ (26,916,807)
Income (loss) per common share – basic (in dollars per share)	$ 0.29	$ 0.20	$ 0.51	$ (3.18)
Income (loss) per common share – diluted (in dollars per share)	$ 0.28	$ 0.20	$ 0.51	$ (3.18)
Shares used in computing income (loss) per common share:
Basic (in shares)	8,564,417	8,483,111	8,544,475	8,459,028
Diluted (in shares)	8,625,308	8,545,889	8,613,316	8,459,028

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at January 1, 2014 (in shares) at Dec. 31, 2013	8,410,493
Balance at January 1, 2014 at Dec. 31, 2013	$ 8,410	$ 50,381,348	$ 38,582,876	$ (21,115)	$ 88,951,519
Net income (loss)			$ (26,926,534)		(26,926,534)
Change in unrealized loss from interest rate swap				$ 9,727	9,727
Common stock issued upon exercise of options (in shares)	72,618
Stock Issued During Period, Value, Stock Options Exercised	$ 73	$ 447,678			447,751
Tax benefit of stock option exercise		86,000			86,000
Stock-based compensation expense		350,824			350,824
Balance at September 30, 2014 (in shares) at Sep. 30, 2014	8,483,111
Balance at September 30, 2014 at Sep. 30, 2014	$ 8,483	51,265,850	$ 11,656,342	$ (11,388)	$ 62,919,287
Balance at January 1, 2014 (in shares) at Dec. 31, 2014	8,500,555				8,500,555
Balance at January 1, 2014 at Dec. 31, 2014	$ 8,501	$ 51,440,770	13,373,601	$ (9,716)	$ 64,813,156
Net income (loss)			$ 4,364,313		4,364,313
Change in unrealized loss from interest rate swap				$ 3,906	$ 3,906
Common stock issued upon exercise of options (in shares)	25,352				55,000
Stock Issued During Period, Value, Stock Options Exercised	$ 26	$ 79,974			$ 80,000
Tax benefit of stock option exercise		33,000			$ 33,000
Balance at September 30, 2014 (in shares) at Sep. 30, 2015	8,564,417				8,564,417
Balance at September 30, 2014 at Sep. 30, 2015	$ 8,564	52,045,208	$ 17,737,914	$ (5,810)	$ 69,785,876
Stock-based compensation expense (in shares)	38,510
Stock-based compensation expense	$ 37	$ 491,464			$ 491,501

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 4,364,313	$ (26,926,534)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	623,566	556,580
Deferred rent	$ 34,513	12,823
Loss on disposal of fixed asset		1,042
Stock-based compensation	$ 491,501	350,824
Deferred income taxes	1,624,889	(13,063,910)
Tax benefit from stock option plans	(33,000)	(86,000)
Changes in operating assets and liabilities:
Increase in accounts receivable	(2,262,043)	(4,509,770)
(Increase) decrease in costs and estimated earnings in excess of billings on uncompleted contracts	(17,482,988)	34,805,809
Increase in prepaid expenses and other assets	(81,290)	(234,739)
Increase in accounts payable and accrued expenses	5,469,508	641,470
Decrease in billings in excess of costs and estimated earnings on uncompleted contracts	(80,535)	(67,742)
Increase in accrued losses on uncompleted contracts	594,182	$ 1,528,921
Taxes refunded	8,133,433
Increase (decrease) in income taxes payable	209,525	$ (650,536)
Net cash provided by (used in) operating activities	1,605,574	(7,641,762)
Cash used in investing activities - purchase of plant and equipment	(126,953)	(514,043)
Cash flows from financing activities:
Payments on long-term debt	(752,994)	(712,992)
Proceeds from line of credit	8,200,000	8,500,000
Payments on line of credit	(8,650,000)	(1,500,000)
Proceeds from exercise of stock options	80,000	447,751
Tax benefit from stock option plans	33,000	86,000
Net cash (used in) provided by financing activities	(1,089,994)	6,820,759
Net increase (decrease) in cash	388,627	(1,335,046)
Cash at beginning of period	1,504,907	2,166,103
Cash at end of period	1,893,534	$ 831,057
Supplemental disclosures of cash flow information:
Equipment acquired under capital lease	116,184
Cash paid during the period for:
Interest	736,987	$ 708,504
Income taxes	$ 29	$ 855,000

Note 1 - Interim Financial Stat

Note 1 - Interim Financial Statements	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. INTERIM FINANCIAL STATEMENTS The condensed financial statements of CPI Aerostructures, Inc. (the “Company”) as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The condensed balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected as required by the SEC. Such adjustments are of a normal, recurring nature. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. The Company maintains its cash in two 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 September 30, 2015, the Company had approximately $2,152,000 of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly creditworthy. The Company predominantly recognizes revenue from contracts over the contractual period under the percentage-of-completion (“POC”) method of accounting. Under the POC method of accounting, sales and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at the completion of the contract. Recognized revenues that will not be billed under the terms of the contract until a later date are recorded as an asset captioned “Costs and estimated earnings in excess of billings on uncompleted contracts.” Contracts where billings to date have exceeded recognized revenues are recorded as a liability captioned “Billings in excess of costs and estimated earnings on uncompleted contracts.” Changes to the original estimates may be required during the life of the contract. Estimates are reviewed monthly and the effect of any change in the estimated gross margin percentage for a contract is reflected in cost of sales in the period the change becomes known. The use of the POC method of accounting involves considerable use of estimates in determining revenues, costs and profits and in assigning the amounts to accounting periods. As a result, there can be a significant disparity between earnings (both for accounting and tax purposes) as reported and actual cash received during any reporting period. The Company continually evaluates all of the issues related to the assumptions, risks and uncertainties inherent with the application of the POC method of accounting; however, it cannot be assured that estimates will be accurate. If estimates are not accurate or a contract is terminated, the Company is required to adjust revenue in later periods. Furthermore, even if estimates are accurate, there may be a shortfall in cash flow and the Company may need to borrow money, or seek access to other forms of liquidity, to fund its work in process or to pay taxes until the reported earnings materialize as actual cash receipts. When adjustments are required for the estimated total revenue on a contract, these changes are recognized with an inception-to-date effect in the current period. Also, when estimates of total costs to be incurred exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Because of the change in estimate on the Company’s A-10 program recognized in the quarter ended June 30, 2014, the Company incurred a net loss for the year ended December 31, 2014. The A-10 program, along with all the Company’s programs, is evaluated on an ongoing basis. If facts and circumstances change, previously recognized estimates may be adjusted in the future and such adjustments may be material. This net loss, after adjustment for carrying back tax losses to recover previously paid taxes of approximately $8,300,000, resulted in a net operating loss carry forward at September 30, 2015 of approximately $4,300,000, which will expire in 2029. The Company’s 2014 tax return, along with its claim to recover the aforementioned previously paid taxes, were filed with the IRS in April 2015. The Company received this refund in the nine month period ended September 30, 2015. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606)

Note 2 - Stock-based Compensati

Note 2 - Stock-based Compensation	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	2. stock-based compensation The Company accounts for compensation expense associated with stock options and restricted stock units (“RSUs”) based on the fair value of the options and units on the date of grant. The Company’s net income for the three and nine months ended September 30, 2015 includes approximately $76,500 and $491,500, respectively, of non-cash compensation expense related to the Company’s stock compensation grants. The Company’s net income/(loss) for the three and nine months ended September 30, 2014 includes approximately $145,200 and $350,800, respectively, of non-cash compensation expense related to the Company’s stock option grants. On January 1, 2015, the Company granted 51,349 RSUs to its board of directors as partial compensation for the 2015 year. RSUs vest straight line on a quarterly basis over a one year period. On January 1, 2014, the Company granted 36,292 stock options to its board of directors as partial compensation for the 2014 year. Options to acquire 6,772 shares were granted on July 1, 2014 to a new board member as part of the normal compensation. The non-cash compensation expense related to all of the Company’s stock-based compensation arrangements is recorded as a component of selling, general and administrative expenses. The estimated fair value of each stock option award granted was determined on the date of grant using the Black-Scholes option valuation model. The estimated fair value of each RSU granted was determined based on the fair market value of the Company’s common stock on the date of grant. The following weighted-average assumptions were used for the options granted during the nine months ended September 30, 2014: Risk-free interest rate 1.45% - 1.64% Expected volatility 83% - 102% Dividend yield 0% Expected option term (years) 5 A summary of the status of the Company’s stock option plans as of September 30, 2015 and changes during the nine months ended September 30, 2015 is as follows: Options Weighted average e xercise price Weighted average remaining contractual term (in years) Aggregate i ntrinsic value Outstanding at beginning of period 349,983 $ 10.97 Exercised (55,000 ) 8.00 Outstanding and vested at end of period 294,983 $ 11.53 1.82 $ 146,598 During the nine months ended September 30, 2015, 10,000 stock options were exercised for cash resulting in proceeds to the Company of $80,000. During the same period, 45,000 options were exercised, pursuant to provisions of the stock option plan, where the Company received no cash and 29,648 shares of its common stock in exchange for the 45,000 shares issued in the exercise. The 29,648 shares that the Company received were valued at $362,012, the fair market value of the shares on the dates of exercise. The intrinsic value of all options exercised during the nine months ended September 30, 2015 and 2014 was approximately $230,500 and $513,000, respectively. No options were exercised during the three months ended September 30, 2015 and 2014.

Note 3 - Derivative Instruments

Note 3 - Derivative Instruments and Fair Value	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	3. Derivative Instruments and Fair Value Our use of derivative instruments has been to hedge interest rates. These derivative contracts are entered into with a financial institution. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use. We record these derivative financial instruments on the condensed balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the results of operations immediately. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately. In March 2012, the Company entered into interest rate swaps with the objective of reducing our exposure to cash flow volatility arising from interest rate fluctuations associated with certain debt. The notional amount, maturity date, and currency of these contracts match those of the underlying debt. The Company has designated these interest rate swap contracts as cash flow hedges. The Company measures ineffectiveness by comparing the cumulative change in the forward contact with the cumulative change in the hedged item. No material ineffectiveness was recognized in the quarter ended September 30, 2015. As of September 30, 2015 and December 31, 2014, we had a net deferred loss associated with cash flow hedges of approximately $8,800 and $14,700, respectively, due to the interest rate swap, which has been included in Other Liabilities. As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties may fail to meet their contractual obligations. Adverse developments in the global financial and credit markets could negatively impact the creditworthiness of our counterparties and cause one or more of our counterparties to fail to perform as expected. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. To date, all counterparties have performed in accordance with their contractual obligations. Fair Value At September 30, 2015 and December 31, 2014, the fair values of cash, accounts receivable, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these instruments. September 30, 2015 Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 26,324,746 $ 26,324,746 December 31, 2014 Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 27,411,556 $ 27,411,556 We estimated the fair value of debt using market quotes and calculations based on market rates. The following table presents the fair values of those financial liabilities measured on a recurring basis as of September 30, 2015 and December 31, 2014: Fair Value Measurements September 30, 2015 Description Total Quoted Prices in Active Markets for Identical assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap, net $ 8,810 -- $ 8,810 -- Total $ 8,810 -- $ 8,810 -- Fair Value Measurements December 31, 2014 Description Total Quoted Prices in Active Markets for Identical assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap, net $ 14,716 -- $ 14,716 -- Total $ 14,716 -- $ 14,716 -- The fair value of the Company’s interest rate swaps was determined by comparing the fixed rate set at the inception of the transaction to the “replacement swap rate,” which represents the market rate for an offsetting interest rate swap with the same notional amounts and final maturity date. The market value is then determined by calculating the present value of the interest differential between the contractual swap and the replacement swap. As of September 30, 2015 and December 31, 2014, $8,810 and $14,716, respectively, was included in Other Liabilities related to the fair value of the Company’s interest rate swap, and $5,810 and $9,716, respectively, net of tax of $3,000 and $5,000, respectively, was included in Accumulated Other Comprehensive Loss.

Note 4 - Costs and Estimated Ea

Note 4 - Costs and Estimated Earnings on Uncompleted Contracts	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Long-term Contracts or Programs Disclosure [Text Block]	4 . C OSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS Costs and estimated earnings in excess of billings on uncompleted contracts consist of: September 30, 2015 U.S Government Commercial Total Costs incurred on uncompleted Contracts $ 331,229,392 $ 113,516,197 $ 444,745,589 Estimated earnings 62,389,343 47,564,640 109,953,983 Sub-total 393,618,735 161,080,837 554,699,572 Less billings to date 338,242,351 120,033,209 458,275,560 Costs and estimated earnings in excess of billings on uncompleted contracts $ 55,376,384 $ 41,047,628 $ 96,424,012 December 31, 2014 U.S. Government Commercial Total Costs incurred on uncompleted Contracts $ 299,871,583 $ 90,272,545 $ 390,144,128 Estimated earnings 56,708,610 39,773,983 96,482,593 Sub-total 356,580,193 130,046,528 486,626,721 Less billings to date 313,441,471 94,324,761 407,766,232 Costs and estimated earnings in excess of billings on uncompleted contracts $ 43,138,722 $ 35,721,767 $ 78,860,489 The above amounts are included in the accompanying balance sheets under the following captions at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 96,537,127 $ 79,054,139 Billings in excess of costs and estimated earnings on uncompleted contracts (113,115 ) (193,650 ) Totals $ 96,424,012 $ 78,860,489 U.S. Government Contracts includes contracts directly with the U.S. Government and Government subcontracts. Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the nine months ended September 30, 2015, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $333,000 from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years. During the nine months ended September 30, 2014, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $42,346,000 from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years. Although management believes it has established adequate procedures for estimating costs to uncompleted open contracts, it is possible that additional significant costs could occur on contracts prior to completion.

Note 5 - Income (Loss) per Comm

Note 5 - Income (Loss) per Common Share	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	5. income (Loss) PER COMMON SHARE Basic income (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted income per common share for the three and nine month periods ended September 30, 2015 is computed using the weighted-average number of common shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock, as well as unvested RSUs. Through December 31, 2014, part of the compensation the Company paid to its Board of Directors was in stock options. In 2015, the Company changed its Board compensation to include RSU’s and eliminated the grant of stock options. Incremental shares of 97,839 were used in the calculation of diluted income per common share in the three months ended September 30, 2015. Incremental shares of 235,649 were not used in the calculation of diluted income per common share in the three month period ended September 30, 2015, as their exercise price was in excess of the Company’s average stock price for the respective period and, accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation, as they would be anti-dilutive. Incremental shares of 142,056 were used in the calculation of diluted income per common share in the nine months ended September 30, 2015. Incremental shares of 165,766 were not used in the calculation of diluted income per common share in the nine month period ended September 30, 2015, as their exercise price was in excess of the Company’s average stock price for the respective period and, accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation, as they would be anti-dilutive. Incremental shares of 211,402 were used in the calculation of diluted income per common share in the three months ended September 30, 2014. Incremental shares of 163,581 were not used in the calculation of diluted income per common share in the three month period ended September 30, 2014, as the effect of incremental shares would be anti-dilutive. No incremental shares were used in the calculation of diluted income (loss) per common share in the nine month period ended September 30, 2014, as the effect of incremental shares would be anti-dilutive due to the loss reported.

Note 6 - Line of Credit

Note 6 - Line of Credit	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Line of Credit [Text Block]	6. Line of credit On December 5, 2012, the Company entered into an Amended and Restated Credit Agreement (“Restated Agreement”) with Sovereign Bank, now called Santander Bank, N.A. (“Santander”), as the sole arranger, administrative agent and collateral agent and Valley National Bank. The Restated Agreement provides for a revolving credit loan (“Santander Revolving Facility”) commitment of $35 million. As of September 30, 2015, the Company was in compliance with all of the financial covenants contained in the Restated Agreement, as amended. As of September 30, 2015, the Company had $24.7 million outstanding under the Restated Agreement bearing interest at 3.50%. The Santander Revolving Facility and term loan under the Restated Agreement are secured by all our assets.

Note 7 - Long-term Debt

Note 7 - Long-term Debt	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Long-term Debt [Text Block]	7. LONG-TERM DEBT On March 9, 2012, the Company obtained a $4.5 million term loan from Santander to be amortized over five years (the “Santander Term Facility”). Santander Term Facility was used to purchase tooling and equipment for new programs. Santander Term Facility bears interest at the lower of LIBOR plus 3% or Santander Bank’s prime rate, 3.5% at September 30, 2015. Additionally, the Company and Santander Bank entered into a five year interest rate swap agreement, in the notional amount of $4.5 million. Under the interest rate swap, the Company pays an amount to Santander Bank representing interest on the notional amount at a fixed rate of 4.11% and receives an amount from Santander Bank representing interest on the notional amount of a rate equal to the one-month LIBOR plus 3%. The effect of this interest rate swap will be the Company paying a fixed interest rate of 4.11% over the term of the Santander Term Facility. The maturities of long-term debt are as follows: Twelve months ending September 30, 2016 $ 999,712 2017 577,603 2018 28,869 2019 15,876 Thereafter 2,686 $ 1,624,746 In addition to the Santander Term Facility, included in long-term debt are capital leases and notes payable of $199,746, including a current portion of $99,712.

Note 8 - Major Customers

Note 8 - Major Customers	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Major Customers [Text Block]	8. MAJOR CUSTOMERS During the nine months ended September 30, 2015, the Company’s three largest commercial customers accounted for 22%, 19% and 18% of revenue, respectively. During the nine months ended September 30, 2014, the Company’s three largest commercial customers accounted for 26%, 22% and 11% of revenue, respectively. In addition, during the nine months ended September 30, 2015 and 2014, 0.84% and 1.2%, respectively, of revenue was directly from the U.S. Government. At September 30, 2015, 24%, 23%, 14% and 13% of Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts were from the Company’s four largest commercial customers. At December 31, 2014, 27%, 25%, 13% and 8% of Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts were from the Company’s four largest commercial customers. At September 30, 2015 and December 31, 2014, less than 1.0% and less than 1.1%, respectively, of Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts were directly from the U.S. Government. At September 30, 2015, 31%, 21% and 14% of our accounts receivable were from our three largest commercial customers. At December 31, 2014, 26%, 21% and 15% of accounts receivable were from our three largest commercial customers.

Note 2 - Stock-based Compensa15

Note 2 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Risk-free interest rate 1.45% - 1.64% Expected volatility 83% - 102% Dividend yield 0% Expected option term (years) 5
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Weighted average e xercise price Weighted average remaining contractual term (in years) Aggregate i ntrinsic value Outstanding at beginning of period 349,983 $ 10.97 Exercised (55,000 ) 8.00 Outstanding and vested at end of period 294,983 $ 11.53 1.82 $ 146,598

Note 3 - Derivative Instrumen16

Note 3 - Derivative Instruments and Fair Value (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Fair Value, by Balance Sheet Grouping [Table Text Block]	September 30, 2015 Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 26,324,746 $ 26,324,746 December 31, 2014 Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 27,411,556 $ 27,411,556
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	Fair Value Measurements September 30, 2015 Description Total Quoted Prices in Active Markets for Identical assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap, net $ 8,810 -- $ 8,810 -- Total $ 8,810 -- $ 8,810 -- Fair Value Measurements December 31, 2014 Description Total Quoted Prices in Active Markets for Identical assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap, net $ 14,716 -- $ 14,716 -- Total $ 14,716 -- $ 14,716 --

Note 4 - Costs and Estimated 17

Note 4 - Costs and Estimated Earnings on Uncompleted Contracts (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Unrealized Gain (Loss) on Investments [Table Text Block]	September 30, 2015 U.S Government Commercial Total Costs incurred on uncompleted Contracts $ 331,229,392 $ 113,516,197 $ 444,745,589 Estimated earnings 62,389,343 47,564,640 109,953,983 Sub-total 393,618,735 161,080,837 554,699,572 Less billings to date 338,242,351 120,033,209 458,275,560 Costs and estimated earnings in excess of billings on uncompleted contracts $ 55,376,384 $ 41,047,628 $ 96,424,012 December 31, 2014 U.S. Government Commercial Total Costs incurred on uncompleted Contracts $ 299,871,583 $ 90,272,545 $ 390,144,128 Estimated earnings 56,708,610 39,773,983 96,482,593 Sub-total 356,580,193 130,046,528 486,626,721 Less billings to date 313,441,471 94,324,761 407,766,232 Costs and estimated earnings in excess of billings on uncompleted contracts $ 43,138,722 $ 35,721,767 $ 78,860,489
Net Unbilled and Estimated Earnings [Table Text Block]	September 30, 2015 December 31, 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 96,537,127 $ 79,054,139 Billings in excess of costs and estimated earnings on uncompleted contracts (113,115 ) (193,650 ) Totals $ 96,424,012 $ 78,860,489

Note 7 - Long-term Debt (Tables

Note 7 - Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Maturities of Long-term Debt [Table Text Block]	Twelve months ending September 30, 2016 $ 999,712 2017 577,603 2018 28,869 2019 15,876 Thereafter 2,686 $ 1,624,746

Note 1 - Interim Financial St19

Note 1 - Interim Financial Statements (Details Textual)	9 Months Ended
	Sep. 30, 2015USD ($)
Number of Financial Institutions with which Cash is Maintained	2
Cash, Uninsured Amount	$ 2,152,000
Adjustment for Carrying Back Tax Losses to Recover Previously Paid Taxes	8,300,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$ 4,300,000

Note 2 - Stock-based Compensa20

Note 2 - Stock-based Compensation (Details Textual) - USD ($)	Jan. 02, 2015	Jul. 01, 2014	Jan. 02, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Director [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	51,349
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			36,292
New Board Member [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		6,772
Issue of Stock for Noncash Consideration [Member]
Proceeds from Stock Options Exercised						$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						45,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Shares Held in Cashless Exercise						29,648
Stock Issued During Period, Value, Stock Options Exercised						$ 362,012
Issuance of Stock for Cash [Member]
Proceeds from Stock Options Exercised						$ 80,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						10,000
Proceeds from Stock Options Exercised						$ 80,000	$ 447,751
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				0	0	55,000
Allocated Share-based Compensation Expense				$ 76,500	$ 145,200	$ 491,500	350,800
Stock Issued During Period, Value, Stock Options Exercised						80,000	447,751
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value						$ 230,500	$ 513,000

Note 2 - Stock-based Compensa21

Note 2 - Stock-based Compensation - Weighted-average Assumptions Used for Options Granted (Details)	9 Months Ended
	Sep. 30, 2015
Minimum [Member]
Risk-free interest rate	1.45%
Expected volatility	83.00%
Maximum [Member]
Risk-free interest rate	1.64%
Expected volatility	102.00%
Dividend yield	0.00%
Expected option term (years)	5 years

Note 2 - Stock-based Compensa22

Note 2 - Stock-based Compensation - Stock Option Activity (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares
Options (in shares)		349,983
Weighted average exercise price (in dollars per share) | $ / shares		$ 10.97
Exercised (in shares)	0	(55,000)
Weighted average exercise price, exercised (in dollars per share) | $ / shares		$ 8
Options, end of period (in shares)	294,983	294,983
Weighted average exercise price, end of period (in dollars per share) | $ / shares	$ 11.53	$ 11.53
Weighted average remaining contractual term		1 year 299 days
Aggregate intrinsic value | $	$ 146,598	$ 146,598

Note 3 - Derivative Instrumen23

Note 3 - Derivative Instruments and Fair Value (Details Textual) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Other Noncurrent Liabilities [Member] | Interest Rate Swap [Member]
Derivative Liability	$ 8,810	$ 14,716
Deferred Gain (Loss) on Derivative, Net	(8,800)	(14,700)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	5,810	9,716
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Tax Effect	$ 3,000	$ 5,000

Note 3 - Derivative Instrumen24

Note 3 - Derivative Instruments and Fair Value - Fair Values of Cash, Accounts Receivable, Accounts Payable and Accrued Expenses (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Reported Value Measurement [Member]
Short-term borrowings and long-term debt	$ 26,324,746	$ 27,411,556
Estimate of Fair Value Measurement [Member]
Short-term borrowings and long-term debt	$ 26,324,746	$ 27,411,556

Note 3 - Derivative Instrumen25

Note 3 - Derivative Instruments and Fair Value - Fair Values of Financial Liabilities Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Derivative Liability	$ 8,810	$ 14,716
Total	8,810	14,716
Derivative Liability	8,810	14,716
Total	$ 8,810	$ 14,716

Note 4 - Costs and Estimated 26

Note 4 - Costs and Estimated Earnings on Uncompleted Contracts (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Increase (Decrease) in Estimated Gross Profits on Contracts Due to Revisions	$ (333,000)	$ (42,346,000)

Note 4 - Costs and Estimated 27

Note 4 - Costs and Estimated Earnings on Uncompleted Contracts - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
US Government [Member]
Costs incurred on uncompleted Contracts	$ 331,229,392	$ 299,871,583
Estimated earnings	62,389,343	56,708,610
Sub-total	393,618,735	356,580,193
Less billings to date	338,242,351	313,441,471
Totals	55,376,384	43,138,722
Commercial [Member]
Costs incurred on uncompleted Contracts	113,516,197	90,272,545
Estimated earnings	47,564,640	39,773,983
Sub-total	161,080,837	130,046,528
Less billings to date	120,033,209	94,324,761
Totals	41,047,628	35,721,767
Costs incurred on uncompleted Contracts	444,745,589	390,144,128
Estimated earnings	109,953,983	96,482,593
Sub-total	554,699,572	486,626,721
Less billings to date	458,275,560	407,766,232
Totals	$ 96,424,012	$ 78,860,489

Note 4 - Costs and Estimated 28

Note 4 - Costs and Estimated Earnings on Uncompleted Contracts - Net Unbilled and Estimated Billings (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 96,537,127	$ 79,054,139
Billings in excess of costs and estimated earnings on uncompleted contracts	(113,115)	(193,650)
Totals	$ 96,424,012	$ 78,860,489

Note 5 - Income (Loss) per Co29

Note 5 - Income (Loss) per Common Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	97,839	211,402	142,056	0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	235,649	163,581	165,766

Note 6 - Line of Credit (Detail

Note 6 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - Restated Agreement [Member] - USD ($) $ in Millions	Sep. 30, 2015	Dec. 05, 2012
Line of Credit Facility, Maximum Borrowing Capacity		$ 35
Long-term Line of Credit	$ 24.7
Line of Credit Facility, Interest Rate at Period End	3.50%

Note 7 - Long-term Debt (Detail

Note 7 - Long-term Debt (Details Textual) - USD ($)	Mar. 09, 2012	Sep. 30, 2015
Sovereign Term Facility [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Sovereign Term Facility [Member] | Term Loan [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate		3.50%
Sovereign Term Facility [Member] | Term Loan [Member]
Debt Instrument, Face Amount	$ 4,500,000
Period Of Amortization	5 years
Sovereign Term Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Swap [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Sovereign Term Facility [Member] | Interest Rate Swap [Member]
Derivative, Remaining Maturity	5 years
Derivative Liability, Notional Amount	$ 4,500,000
Derivative, Swaption Interest Rate	4.11%
Derivative, Average Swaption Interest Rate	4.11%
Long-term Debt and Capital Lease Obligations		$ 199,746
Long-term Debt and Capital Lease Obligations, Current		$ 99,712

Note 7 - Long-term Debt - Matur

Note 7 - Long-term Debt - Maturities of Long-term Debt (Details)	Sep. 30, 2015USD ($)
2,016	$ 999,712
2,017	577,603
2,018	28,869
2,019	15,876
Thereafter	2,686
Total maturities	$ 1,624,746

Note 8 - Major Customers (Detai

Note 8 - Major Customers (Details Textual)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Customer A [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	22.00%	26.00%
Customer A [Member] | Customer Concentration Risk [Member] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member]
Concentration Risk, Percentage	24.00%		27.00%
Customer A [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	31.00%		26.00%
Customer B [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	19.00%	22.00%
Customer B [Member] | Customer Concentration Risk [Member] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member]
Concentration Risk, Percentage	23.00%		25.00%
Customer B [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	21.00%		21.00%
Customer C [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	18.00%	11.00%
Customer C [Member] | Customer Concentration Risk [Member] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member]
Concentration Risk, Percentage	14.00%		13.00%
Customer C [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	14.00%		15.00%
US Government [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	0.84%	1.20%
US Government [Member] | Customer Concentration Risk [Member] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member]
Concentration Risk, Percentage	1.00%		1.10%
Customer D [Member] | Customer Concentration Risk [Member] | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member]
Concentration Risk, Percentage	13.00%		8.00%
Number of Large Customers Contributed to Revenue of Entity	3	3
Number of Large Commercial Customers Accounted for Major Share in Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts	4		4
Number of Large Customers Included in Accounts Receivable of Entity	3		3