CPI Aerostructures (CVU) 10-K25 Aug 202019 FY Annual reportFinancial data

Company Profile

Cover

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2019	Aug. 24, 2020	Jun. 30, 2020
Cover
Entity Registrant Name	CPI AEROSTRUCTURES INC
Entity Central Index Key	0000889348
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	1-11398
Entity Incorporation, State or Country Code	NY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity's Reporting Status Current	No
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 35,234,479
Share Price			$ 3.29
Entity Common Stock, Shares Outstanding		11,876,610
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current Assets:
Cash	$ 4,052,109	$ 4,128,142
Restricted cash	1,380,684	2,000,000
Accounts receivable, net	7,029,602	8,722,571
Contract assets	15,280,807	17,588,866
Inventory	5,891,386	9,361,611
Refundable income taxes	474,904	434,903
Prepaid expenses and other current assets	721,964	1,972,630
Total Current Assets	34,831,456	44,208,723
Operating lease right-of-use assets	3,886,863
Property and equipment, net	3,282,939	2,545,192
Intangibles, net	375,000	0
Goodwill	1,784,254	0
Refundable income taxes		434,903
Other assets	179,068	249,575
Total Assets	44,339,580	47,438,393
Current Liabilities:
Accounts payable	8,199,557	9,902,481
Accrued expenses	2,372,522	1,558,160
Contract liabilities	3,561,707	5,252,579
Loss reserve	2,650,963	3,663,558
Current portion of long-term debt	2,484,619	2,434,981
Operating lease liabilities	1,709,153
Income taxes payable	1,216	113,992
Total Current Liabilities	20,979,737	22,925,751
Line of credit	26,738,685	24,038,685
Long-term operating lease liabilities	2,596,784
Long-term debt, net of current portion	1,764,614	3,876,238
Other liabilities		531,124
Total Liabilities	52,079,820	51,371,798
Shareholders' Deficit:
Common stock - $.001 par value; authorized 50,000,000 shares, 11,818,830 and 11,718,246 shares, respectively, issued and outstanding	11,819	11,718
Additional paid-in capital	71,294,629	70,651,413
Accumulated deficit	(79,046,688)	(74,596,536)
Total Shareholders' Deficit	(7,740,240)	(3,933,405)
Total Liabilities and Shareholders' Deficit	$ 44,339,580	$ 47,438,393

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	11,818,830	11,718,246
Common stock, outstanding	11,818,830	11,718,246

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue	$ 87,518,688	$ 70,366,016
Cost of sales	78,386,997	66,155,986
Gross profit	9,131,691	4,210,030
Selling, general and administrative expenses	11,562,781	9,780,027
Loss from operations	(2,431,090)	(5,569,997)
Other expense:
Other income	89,666	28,709
Interest expense	(2,104,851)	(1,989,417)
Total other expense, net	(2,015,185)	(1,960,708)
Loss before provision for income taxes	(4,446,275)	(7,530,705)
Provision for income taxes	3,877	16,048
Net loss	(4,450,152)	(7,546,753)
Other comprehensive income, net of tax
Change in unrealized loss-interest rate swap		14,800
Comprehensive loss	$ (4,450,152)	$ (7,531,953)
Loss per common share-basic (in dollars per share)	$ (0.38)	$ (0.80)
Loss per common share-diluted (in dollars per share)	$ (0.38)	$ (0.80)
Shares used in computing loss per common share:
Basic (in shares)	11,808,052	9,480,948
Diluted (in shares)	11,808,052	9,480,948

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock [Member]	Common Stock [Member]Previously Reported [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member]Previously Reported [Member]	Retained Earnings (Accumulated Deficit) [Member]	Retained Earnings (Accumulated Deficit) [Member]Previously Reported [Member]	Retained Earnings (Accumulated Deficit) [Member]Restatement Adjustment [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Other Comprehensive Loss [Member]Previously Reported [Member]	Total	Previously Reported [Member]	Restatement Adjustment [Member]
Balance at beginning at Dec. 31, 2017	$ 8,864	$ 8,864	$ 53,770,617	$ 53,770,617	$ (67,049,783)	$ 20,548,652	$ (87,598,435)	$ (14,800)	$ (14,800)	$ (13,285,102)	$ 74,313,333	$ (87,598,435)
Balance at beginning (in shares) at Dec. 31, 2017	8,864,319	8,864,319
Net loss					(7,546,753)					(7,546,753)	2,211,563	$ (9,758,316)
Change in unrealized loss from interest rate swap								$ 14,800		14,800
Common stock issued in share offering	$ 2,760		16,163,357							16,166,117
Common stock issued in share offering (in shares)	2,760,000
Common stock issued as employee compensation	$ 5		45,908							45,913
Common stock issued as employee compensation (in shares)	5,130
Stock based compensation expense	$ 89		671,531							671,620
Stock based compensation expense (in shares)	88,797
Balance at ending at Dec. 31, 2018	$ 11,718		70,651,413		(74,596,536)					$ (3,933,405)	$ 93,423,346
Balance at ending (in shares) at Dec. 31, 2018	11,718,246									11,718,246
Net loss					(4,450,152)					$ (4,450,152)
Costs related to stock offering			(119,571)							(119,571)
Common stock issued as employee compensation	$ 5		32,319							32,324
Common stock issued as employee compensation (in shares)	4,950
Stock based compensation expense	$ 96		730,468							730,564
Stock based compensation expense (in shares)	95,634
Balance at ending at Dec. 31, 2019	$ 11,819		$ 71,294,629		$ (79,046,688)					$ (7,740,240)
Balance at ending (in shares) at Dec. 31, 2019	11,818,830									11,818,830

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (4,450,152)	$ (7,546,753)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,124,063	710,197
Amortization of debt issuance cost	95,507	95,506
Cash expended in excess of rent expense	(112,048)	(70,764)
Stock-based compensation expense	730,564	671,620
Common stock issues as employee compensation	32,324	45,913
Adjustment for maturity of interest rate swap		14,800
Bad debt expense	34,098	25,758
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	1,807,802	(1,846,508)
Decrease in contract assets	2,308,059	10,454,686
Decrease in inventory	227,336	292,766
Decrease (increase) in prepaid expenses and other current assets	1,202,189	(22,255)
Decrease in refundable income taxes	394,902
Decrease in accounts payable and accrued expenses	(678,380)	(7,926,795)
(Decrease) increase in contract liabilities	(1,968,872)	2,430,922
Decrease in loss reserve	(1,012,597)	(14,396)
Decrease in other liabilities		(5,175)
(Decrease) increase in income taxes payable	(112,777)	4,665
Net cash used in operating activities	(377,982)	(2,685,813)
Cash flows from investing activities:
Purchase of property and equipment	(436,010)	(559,037)
Purchase of WMI		(5,952,000)
Net cash used in investing activities	(436,010)	(6,511,037)
Cash flows from financing activities:
Proceeds from sale of common stock		16,166,117
Payment of line of credit	(1,300,000)	(6,500,000)
Proceeds from line of credit	4,000,000	7,700,000
Payment of long-term debt	(2,436,786)	(3,314,789)
Stock offering costs paid	(119,571)
Debt issue costs	(25,000)	(157,213)
Net cash provided by financing activities	118,643	13,894,115
Net (decrease) increase in cash and restricted cash	(695,349)	4,697,265
Cash and restricted cash at beginning of year	6,128,142	1,430,877
Cash and restricted cash at end of year	5,432,793	6,128,142
Supplemental schedule noncash investing, financing activities:
Equipment acquired under capital lease	399,800	649,410
Supplemental schedule of cash flow information:
Cash paid during the year for interest	2,066,174	2,134,574
Cash paid (received) for income taxes	$ (378,652)	$ 10,947

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. Principal business activity And summary of significant Accounting policies The Company consists of CPI Aerostructures, Inc. (“CPI”) and Welding Metallurgy, Inc. (“WMI”), a wholly owned subsidiary acquired on December 20, 2018 and Compac Development Corporation (“Compac”), a wholly owned subsidiary of WMI, collectively the “Company.” CPI is a U.S. supplier of aircraft parts for fixed wing aircraft and helicopters in both the commercial and defense markets. We manufacture complex aerostructure assemblies, as well as aerosystems. Additionally, we supply parts for maintenance, repair and overhaul (“MRO”) and kitting contracts. CPI acquired WMI on December 20, 2018 (see discussion below) and the year ended December 31, 2018 operating results include the operating results of WMI from the date of acquisition. An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the “CODM”) to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. The Company has determined that it has a single operating and reportable segment. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Acquisition of WMI On December 20, 2018, pursuant to the Stock Purchase Agreement (“SPA”), dated as of March 21, 2018, with Air Industries Group (“Air Industries”), the Company purchased from Air Industries all of the outstanding shares of WMI, previously a wholly owned subsidiary of Air Industries (the “WMI Acquisition”). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the use of estimates by management. Actual results could differ from these estimates. Business Combinations The Company applied acquisition accounting for the WMI acquisition in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC Topic 805”). Acquisition accounting requires that the assets acquired and liabilities assumed be recorded at their respective estimated fair values at the date of acquisition. The excess purchase price over fair value of the net assets acquired is recorded as goodwill. In determining estimated fair values, we are required to make estimates and assumptions that affect the recorded amounts including, but not limited to, expected future cash flows, discount rates, remaining useful lives of long-lived assets, useful lives of identified intangible assets, replacement or reproduction costs of property and equipment and the amounts to be recovered in future periods from acquired net operating losses and other deferred tax assets. Our estimates in this area impact, among other items, the amount of depreciation and amortization, impairment charges in certain instances if the asset becomes impaired, and income tax expense or benefit that we report. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain. See Note 2. “Business Combinations” for a summary and status of the application of acquisition accounting. Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606"), using the modified retrospective method. In accordance with ASC 606, the Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to be entitled to in exchange for the good or service. The majority of the Company’s performance obligations are satisfied over-time as the Company (i) sells products with no alternative use to the Company and (ii) has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date. Under the over-time revenue recognition model, revenue and gross profit are recognized over the contract period as work is performed based on actual costs incurred and an estimate of costs to complete and resulting total estimated costs at completion. The corrected adoption of ASC 606 resulted in a restatement of previously issued consolidated financial statements. See Note 18. See Note 3, “Revenue”, for additional information regarding the Company's revenue recognition policy. Government Contracts The Company’s government contracts are subject to the procurement rules and regulations of the U.S. government. Many of the contract terms are dictated by these rules and regulations. Specifically, cost-based pricing is determined under the Federal Acquisition Regulation (“FAR”), which provides guidance on the types of costs that are allowable in establishing prices for goods and services under U.S. government contracts. For example, costs such as those related to charitable contributions, advertising, interest expense, and public relations are unallowable, and therefore not recoverable through sales. During and after the fulfillment of a government contract, the Company may be audited in respect to the direct and allocated indirect costs attributable thereto. These audits may result in adjustments to the Company’s contract cost, and/or revenue. When contractual terms allow, the Company invoices its customers on a progress basis. Cash The Company maintains its cash in five 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, 2019 and 2018, the Company had $4,020,203 and $4,033,781, respectively, of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly credit worthy. Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances. The Company writes off accounts when they are deemed to be uncollectible. Inventory Inventories are reported at lower of cost or net realizable value. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization of property and equipment is provided by the straight-line method over the shorter of estimated useful lives of the respective assets or the life of the lease, for leasehold improvements. Leases The Company leases a building and equipment. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The determination of the length of lease terms is affected by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The existence of significant economic incentive is the primary consideration when assessing whether the Company is reasonably certain of exercising an option in a lease. Both finance and operating lease ROU assets and liabilities are recognized at commencement date and measured as the present value of lease payments to be made over the lease term. As the interest rate implicit in the lease is not readily available for most of the Company’s leases, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The lease ROU asset recognized at commencement is adjusted for any lease payments related to initial direct costs, prepayments, and lease incentives. For operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, lease expense comprises the amortization of the ROU assets recognized on a straight-line basis generally over the shorter of the lease term or the estimated useful life of the underlying asset and interest on the lease liability. Variable lease payments not dependent on a rate or index are recognized when the event, activity, or circumstance in the lease agreement upon which those payments are contingent is probable of occurring and are presented in the same line of the consolidated balance sheet as the rent expense arising from fixed payments. The Company has lease agreements with lease and non-lease components. Non-lease components are combined with the related lease components and accounted for as lease components for all classes of underlying assets. Long-Lived Assets The Company reviews its long-lived assets and certain related intangibles for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As a result of its review, the Company does not believe that any such change has occurred. If such changes in circumstance are present, a loss is recognized to the extent the carrying value of the asset is in excess of the fair value of cash flows expected to result from the use of the asset and amounts expected to be realized upon its eventual disposition. Short-Term Debt The fair value of the Company’s short-term debt is estimated based on the current rates offered to the Company for debt of similar terms and maturities. Using this method, the fair value of the Company’s short-term debt was not significantly different than the stated value at December 31, 2019 and 2018. Fair Value At December 31, 2019 and 2018, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 30,987,918 $ 30,987,918 $ 30,349,904 $ 30,349,904 We estimated the fair value of debt using market quotes and calculations based on market rates. Loss Per Share Basic loss per common share is computed using the weighted-average number of shares outstanding. Diluted loss per common share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. There were no incremental shares that were used in the calculation of diluted loss per common share in 2019 and 2018. Since the Company is in a loss position no incremental shares were used in the calculation of diluted loss per share since these shares would be considered anti-dilutive. Income taxes Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (“ASU 2016-02"), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements and the recognition of a cumulative-effect adjustment to the opening balance of retained earnings. The FASB subsequently issued Accounting Standards Update No. 2018-10 and Accounting Standards Update No. 2018-11 in July 2018, which provide clarifications and improvements to ASU 2016-02 (collectively, the “new lease standard”). Accounting Standards Update No. 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented and continue to apply the provisions of the previous lease standard in its annual disclosures for the comparative periods. The new lease standard requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. Additional footnote disclosures related to leases will also be required. On January 1, 2019, the Company adopted the new lease standard using the optional transition method. The comparative financial information will not be restated and will continue to be reported under the previous lease standard in effect during those periods. In addition, the new lease standard provides a number of optional practical expedients in transition. The Company elected the package of practical expedients. As such, the Company will not reassess whether expired or existing contracts are or contain a lease; will not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The new lease standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company elected the practical expedient to not separate lease and non-lease components for certain classes of assets (office buildings). On January 1, 2019, the Company recognized right of use assets and lease liabilities in the range of approximately $5.3 million to $5.9 million, respectively, on its consolidated balance sheet using an estimated incremental borrowing rate of 6%.

BUSINESS COMBINATION

BUSINESS COMBINATION	12 Months Ended
BUSINESS COMBINATION	Dec. 31, 2019
Business Combinations [Abstract]
BUSINESS COMBINATION	2. BUSINESS COMBINATION As discussed in Note 1, the Company completed the WMI Acquisition on December 20, 2018. The acquisition was accounted for as a business combination in accordance with ASC Topic 805. Accordingly, the Company recorded the estimated fair value of the assets and liabilities assumed at the date of acquisition. The acquisition was considered a stock purchase for tax purposes. The purchase price for the acquisition was $7.9 million, which was subject to a post-closing working capital adjustment. $2 million dollars of the purchase price was placed in escrow at closing and was to be released after the completion of the working capital adjustment and for the indemnification contingencies. The working capital adjustment is based on the historical values of components of working capital as defined in the SPA. The Company calculated a post-closing working capital adjustment. Air Industries formally objected to the calculation. The SPA provided the parties 30 days to come to an agreement on the working capital adjustment. The Company and Air Industries could not come to an agreement within the time specified and the issues were submitted to BDO USA, LLP (“BDO”) for a binding resolution. During the course of BDO’s work, Air Industries conceded on three of the four items of contention, leaving only the inventory valuation in dispute. In its report dated September 3, 2019, BDO found in favor of the Company that there should be no changes to the Closing Working Capital Statement as prepared by the Company. The result of the conceded items and BDO determination would decrease the purchase price of the acquisition by approximately $4.1 million. On September 16, 2019, the Company received a letter from Air Industries acknowledging the conceded items and, among other things, rejecting the determination by BDO. On September 27, 2019, the Company filed a notice of motion in the Supreme Court of the State of New York, County of New York, against Air Industries seeking, among other things, an order of specific performance requiring Air Industries to comply with its obligations under the SPA and Escrow Agreement and a judgment against Air Industries in the amount of approximately $4.1 million. In October 2019, Air Industries and the Company jointly authorized the release of approximately $619,000 from escrow, which represents the value of the conceded items. The remaining escrowed amount of approximately $1,381,000 is shown as restricted cash on the consolidated balance sheet as of December 31, 2019. The additional disputed amount of approximately $2.1 million is not recorded on the Company’s balance sheet due to the uncertainty of collection. In the fourth quarter of 2019, the Company recorded adjustments to the provisional estimates of the fair value of the assets acquired and liabilities assumed from WMI based on the BDO determination. Due to new information discovered during the measurement period adjustments were made to the current period. The Company has determined the fair values of the assets and liabilities acquired and has recorded the fair value of the assets acquired as of December 20, 2018, assuming only the collection of the remaining amount escrowed. Collection of the additional $2.1 million is uncertain. The following table provides the allocation of the total purchase price of $5.9 million ($7.9 million less $2 million collected and to be collected from escrow) to the identifiable tangible and intangible assets and liabilities of WMI based on their respective fair values. The remaining useful lives represent the period over which acquired tangible and intangible assets with a finite life are being depreciated or amortized. Fair Values Estimated Useful Lives Other current assets $ 1,250,523 — Accounts receivable 1,670,931 — Inventory 4,726,110 — Property plant & equipment 901,000 5 to 7 Years Current liabilities (4,932,818 ) — Intangible 500,000 4 Years Goodwill 1,784,254 — Total $ 5,900,000 The following table presents the unaudited pro forma revenue and net income for the period presented as if the WMI Acquisition had occurred on January 1, 2018: Year Ended December 31, 2018 Restated Revenue $ 84,217,706 Net loss $ (6,567,859 ) The pro forma results presented above include the impact of eliminating parent company charges for general expenses and interest, net of tax.

REVENUE RECOGNITION

REVENUE RECOGNITION	12 Months Ended
REVENUE RECOGNITION	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	3. REVENUE RECOGNITION Contracts with Customers and Performance Obligations The majority of the Company’s revenues are from long-term contracts with the U.S. government and commercial contractors. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For the Company, the contract under ASC 606 is typically established upon execution of a purchase order either in accordance with a long-term customer contract or on a standalone basis. To determine the proper revenue recognition for our contracts, we must evaluate whether two or more contracts should be combined and accounted for as a single contract, and whether the combined or single contract should be accounted for as one performance obligation or more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or to separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a period. A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue. The Company’s performance obligations in its contracts with customers are typically the sale of each individual product contemplated in the contract or a single performance obligation representing a series of products when the contract contains multiple products that are substantially the same. The Company has elected to account for shipping performed after control over a product has transferred to a customer as fulfillment activities. When revenue is recognized in advance of incurring shipping costs, the costs related to the shipping are accrued. Shipping costs are included in costs of sales. The Company provides warranties on many of its products ; 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 , The Company also has contracts that are considered point in time. Under the point in time revenue recognition model, revenue is recognized when control of the components has transferred to the customer, in most cases this will be based on shipping terms. Contract Estimates Certain contracts contain forms of variable consideration, such as price discounts and performance penalties. The Company generally estimates variable consideration using the most likely amount based on an assessment of all available information (i.e., historical experience, current and forecasted performance) and only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty is resolved. In applying the cost-to-cost input method, the Company compares the actual costs incurred relative to the total estimated costs expected at completion to determine its progress towards satisfying its performance obligation and to calculate the corresponding amount of revenue to recognize. For any costs incurred that do not depict the Company’s performance in transferring control of goods or services to the customer, the Company excludes such costs from its input method measure of progress as the amounts are not reflected in the price of the contract. Costs that are inputs to the satisfaction of a performance obligation include labor, materials and subcontractors’ costs, other direct costs and an allocation of indirect costs. Changes to the original estimates may be required during the life of the contract. Estimates are reviewed quarterly and the effect of any change in the estimated gross margin percentage for a contract is reflected in revenue in the period the change becomes known. ASC 606 involves considerable use of estimates and judgment in determining revenues, costs and profits and in assigning the amounts to accounting periods. For instance, management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from the customer, and overhead cost rates, among other variables. The Company continually evaluates all of the factors related to the assumptions, risks and uncertainties inherent with the application of the cost-to-cost input method; however, it cannot be assured that estimates will be accurate. If estimates are not accurate, or a contract is terminated which will affect estimates at completion, the Company is required to adjust revenue in the period the change is determined. When changes are required for the estimated total revenue on a contract, these changes are recognized on a cumulative catch-up basis in the current period. A significant change in one or more estimates could affect the profitability of one or more of our performance obligations. If estimates of total costs to be incurred exceed estimates of total consideration the Company expects to receive, a provision for the remaining loss on the contract is recorded in the period in which the loss becomes evident. Capitalized Contract Acquisition Costs and Fulfillment Costs Contract acquisition costs are those incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. The Company does not typically incur contract acquisition costs or contract fulfillment costs that are subject to capitalization in accordance with the guidance in Accounting Standards Codification Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers.” Disaggregation of Revenue The following table presents the Company’s revenue disaggregated by contract type: Year Ended December 31, 2019 2018 (restated) Aerostructure $ 41,921,232 $ 35,107,506 Aerosystems 26,624,568 17,626,968 Kitting and Supply Chain Management 18,972,888 17,631,542 Total $ 87,518,688 $ 70,366,016 Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2019, the aggregate amount of transaction price allocated to the remaining performance obligations was approximately $148 million. This represents the amount of revenue the Company expects to recognize in the future on contracts with unsatisfied or partially satisfied performance obligations as of December 31, 2019. The Company estimates that it will recognize approximately 59% of this amount in fiscal year 2020 and the remainder by fiscal year 2023.

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES	12 Months Ended
CONTRACT ASSETS AND LIABILITIES	Dec. 31, 2019
Contract Assets And Liabilities
CONTRACT ASSETS AND LIABILITIES	4. CONTRACT ASSETS AND LIABILITIES Contract assets represent revenue recognized on contracts in excess of amounts invoiced to the customer and the Company’s right to consideration is conditional on something other than the passage of time. Amounts may not exceed their net realizable value. Under the typical payment terms of our government contracts, the customer retains a portion of the contract price until completion of the contract, as a measure of protection for the customer. Our government contracts therefore typically result in revenue recognized in excess of billings, which we present as contract assets. Contract assets are classified as current. The Company’s contract liabilities represent customer payments received or due from the customer in excess of revenue recognized. Contract liabilities are classified as current. Revenue recognized for the year ended December 31, 2019, that was included in the contract liabilities balance as of January 1, 2019 was $5.2 million and as of January 1, 2018 was $75,000.

RECONCILIATION OF CASH AND REST

RECONCILIATION OF CASH AND RESTRICTED CASH	12 Months Ended
RECONCILIATION OF CASH AND RESTRICTED CASH	Dec. 31, 2019
Cash and Cash Equivalents [Abstract]
RECONCILIATION OF CASH AND RESTRICTED CASH	5. RECONCILIATION OF CASH AND RESTRICTED CASH The following table provides a reconciliation of cash and restricted cash reported within the statement of cash flows that sum to the total of the same such amounts shown in the statement of cash flows: December 31, 2019 December 31, 2018 Cash $ 4,052,109 $ 4,128,142 Restricted cash 1,380,684 2,000,000 Total cash and restricted cash shown in the statement of cash flow $ 5,432,793 $ 6,128,142

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
ACCOUNTS RECEIVABLE	Dec. 31, 2019
Receivables [Abstract]
ACCOUNTS RECEIVABLE	6. ACCOUNTS RECEIVABLE Accounts receivable consists of trade receivables as follows: December 31, 2019 2018 Billed receivables $ 7,260,457 $ 8,944,596 Less: allowance for doubtful accounts (230,855 ) (222,025 ) Total accounts receivable, net $ 7,029,602 $ 8,722,571

INVENTORY

INVENTORY	12 Months Ended
INVENTORY	Dec. 31, 2019
Inventory Disclosure [Abstract]
INVENTORY	7. INVENTORY The components of inventory consisted of the following: December 31, 2019 2018 Raw materials $ 881,761 $ 2,591,872 Work in progress 1,916,209 4,015,028 Finished goods 3,093,416 2,754,711 Total inventory $ 5,891,386 $ 9,361,611

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
PROPERTY AND EQUIPMENT	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	8. PROPERTY AND EQUIPMENT December 31, 2019 2018 Estimated Machinery and equipment $ 3,829,592 $ 2,879,707 5 to 7 Computer equipment 4,179,087 3,973,406 5 Furniture and fixtures 709,350 707,726 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 2,573,874 1,994,253 Lesser of lease term or 10 years Total gross property and equipment 11,305,065 9,568,254 Less accumulated depreciation and amortization 8,022,126 7,023,062 Total property and equipment, net $ 3,282,939 $ 2,545,192 Depreciation and amortization expense for the years ended December 31, 2019 and 2018 was $999,063 and $710,197, respectively. During the years ended December 31, 2019 and 2018, the Company acquired $399,800 and $649,410, respectively, of property and equipment under capital leases.

INTANGIBLES AND GOODWILL

INTANGIBLES AND GOODWILL	12 Months Ended
INTANGIBLES AND GOODWILL	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLES AND GOODWILL	9. INTANGIBLES AND GOODWILL December 31, 2019 2018 Intangibles $ 500,000 $ 0 Less: amortization of intangibles (125,000 ) (0 ) Total Intangibles, net $ 375,000 $ 0 Goodwill $ 1,784,254 $ 0 As discussed in Note 1, the Company completed the WMI Acquisition on December 20, 2018. The acquisition was accounted for as a business combination in accordance with ASC 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, the Company recorded Goodwill of $1,784,254 as a result of adjustments to the fair value of the acquired WMI inventory. The Company’s intangible asset is comprised of the value of the customer relationships acquired as part of the WMI Acquisition. The useful life is four years representing the remaining economic life. Amortization expense for the year ended December 31, 2019 was $125,000.

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
LINE OF CREDIT	Dec. 31, 2019
Line of Credit Facility [Abstract]
LINE OF CREDIT	10. LINE OF CREDIT On March 24, 2016, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with BankUnited, N.A. as a lender and the sole arranger, administrative agent and collateral agent and Citizens Bank N.A. as a lender (the “BankUnited Facility”). The BankUnited Facility provided for a revolving credit loan commitment of $30 million (the “Revolving Loan”) and a $10 million term loan (“Term Loan”). The Revolving Loan bears interest at a rate based upon a pricing grid, as defined in the agreement. On June 25, 2019, the Company entered into a Fifth Amendment (the “Fifth Amendment”) to the Credit Agreement. Under the Fifth Amendment, the parties amended the Credit Agreement by extending the maturity date of the Company’s Revolving Loan and Term Loan to June 30, 2021 and making conforming changes to the repayment schedule of the Term Loan. Additionally, in connection with the Fifth Amendment, Citizens Bank, N.A. assigned all of its obligations under the BankUnited Facility to BNB Bank. The BankUnited Facility required us to maintain the following financial covenants: (1) maintain a debt service coverage ratio at the end of each quarter for the trailing four quarter period of no less than 1.5 to 1.0, (2) maintain a minimum net income, after taxes, of no less than $1.00, (3) maintain a maximum leverage ratio at the end of each quarter for the trailing four quarter period of no more than 3.0 to 1.0, and (4) maintain a minimum adjusted EBITDA at the end of each quarter of no less than $2 million. The errors in our consolidated financial statements for the Non-Reliance Periods and our internal control material weaknesses caused us to be in violation of each of the foregoing covenants and other non-financial covenants as of and after March 31, 2018. As of December 31, 2019, the Company was not in compliance with the covenants contained in the BankUnited Facility, as amended. BankUnited has subsequently waived these covenant violations in conjunction with execution of the Sixth Amendment, which further amends the Credit Agreement, Revolving Note and Term Note. See Note 17, “Subsequent Events” for further discussion. In addition to the covenant waivers, on August 24, 2020, we entered into a Sixth Amendment to the Credit Agreement, which further amends the Credit Agreement, Revolving Note, and Term Note. The terms of the Sixth Amendment are discussed below in Note 17, “Subsequent Events”. As of December 31, 2019, the Company had $26.7 million outstanding under the Credit Agreement bearing interest at 5.25%. See Note 17, “Subsequent Events” for further discussion. The BankUnited Facility is secured by all of the Company’s assets.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
LONG-TERM DEBT	Dec. 31, 2019
Debt Disclosure [Abstract]
LONG-TERM DEBT	11. LONG-TERM DEBT As described above, in connection with the Fifth Amendment, the Company and BankUnited agreed to extend the maturity dates of the Revolving Loan and Term Loan to June 30, 2021. Such maturity dates were further extended to May 2, 2022 in connection with the Sixth Amendment. The terms of the Sixth Amendment are discussed below in Note 17, “Subsequent Events”. The Company paid to BankUnited, N.A. commitment and agent fees in the amount of $25,000 in 2019, together with out of pocket costs, expenses, and reasonable attorney’s fees incurred by BankUnited, N.A. in connection with the Fifth Amendment. The Company has cumulatively paid approximately $488,000 of total debt issuance costs in connection with the BankUnited Facility of which approximately $71,000 is included in other assets and $15,000 is a reduction of long-term debt at December 31, 2019. The Term Loan had an initial amount of $10 million, payable in monthly installments, as defined in the Credit Agreement. As of December 31, 2019, pursuant to the Fifth Amendment, the Term Loan had a maturity date of June 31, 2021. The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2019, are as follows: Year ending December 31, 2020 $ 2,484,619 2021 1,452,149 2022 187,853 2023 109,485 2024 15,127 Total $ 4,249,233 Also included in long-term debt are financing leases and notes payable of $546,100 and $592,712 at December 31, 2019 and 2018, respectively, including a current portion of $384,619 and $334,981, respectively. The right-of-use assets under financing leases was $3,024,852 and $2,625,052 at December 31, 2019 and 2018, respectively. Accumulated depreciation of assets under financing leases was approximately $1,868,377 and $1,517,164 at December 31, 2019 and 2018, respectively.

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2019
Leases [Abstract]
LEASES	12. LEASES The Company leases a building and equipment. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets. The Company leases manufacturing and office space under an agreement classified as an operating lease. The lease agreement expires on April 30, 2022 and does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease. In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms. The Company also leases office equipment in agreements classified as operating leases. For the years ended December 31, 2019, and 2018 the Company’s operating lease expense was $1,761,374 and $1,608,701, respectively. Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: Year ending December 31, 2020 $ 1,921,015 2021 1,964,815 2022 705,889 2023 37,238 2024 8,349 Total undiscounted operating lease payments 4,637,306 Less imputed interest (331,369 ) Present value of operating lease payments $ 4,305,937 The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2019: Assets ROU Assets $ 3,886,863 Liabilities Current operating lease liabilities $ 1,709,153 Long-term operating lease liabilities 2,596,784 Total ROU liabilities $ 4,305,937 The Company’s weighted average remaining lease term for its operating leases is 2.1 years.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	13. INCOME TAXES We account for income taxes in accordance with ASC 740 (Topic 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 Topic 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 and foreign 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 2016. 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 for income taxes consists of the following: Year ended December 31, 2019 2018 Current: Federal $ — $ (2,220 ) State 3,877 18,268 Deferred: Federal — — State — — Total $ 3,877 $ 16,048 The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows: December 31, 2019 2018 Taxes computed at the federal statutory rate $ (1,012,457 ) $ (1,511,080 ) State income tax, net 3,890 14,432 Prior year true-up — 17,865 Research and development tax credit (180,813 ) (163,903 ) Change in valuation allowance 1,127,573 1,617,139 Other 10,870 171 Permanent differences 54,814 41,424 Provision for income taxes $ 3,877 $ 16,048 The components of deferred income tax assets and liabilities are as follows: Deferred Tax Assets 2019 2018 Allowance for doubtful accounts $ 50,100 $ 60,467 Credit carryforwards 1,435,543 1,254,731 Inventory reserve 423,605 — Deferred rent — 116,784 Stock options — 12,478 Restricted stock 87,976 88,410 Other 15,237 7,550 Acquisition costs 100,774 109,397 Lease liability 934,463 — Disallowed interest expense 791,785 431,319 Net operating loss carryforward 21,058,838 20,902,163 Deferred tax assets 24,898,321 22,983,299 Valuation allowance (21,213,040 ) (20,222,640 ) Deferred Tax Liabilities : Prepaid expenses 114,738 158,777 Revenue recognition 2,133,348 2,197,535 Property and equipment 593,678 404,347 Right of use asset 843,517 — Deferred tax liabilities $ 3,685,281 $ 2,760,659 Net deferred tax assets (liabilities) $ — $ — As of December 31, 2019, the Company had approximately $93,000,000 of gross net operating loss carryforwards (“NOLs”) for federal tax purposes and approximately $38,600,000 of post apportionment NOLs for state tax purposes. As a result of the Tax Cuts and Jobs Act of 2017 and the Coronavirus Aid, Relief, and Economic Security Act of 2020, NOLs arising before January 1, 2018, and NOLs arising after January 1, 2018, are subject to different rules. Our pre-2018 NOLs totaled approximately $78.8 million; these NOLs will expire in varying amounts from 2030 through 2039, if not utilized, and can offset 100% of future taxable income for regular tax purposes. Our NOLs arising in 2018, 2019 and 2020 can generally be carried back five years, carried forward indefinitely and can offset 100% of future taxable income for tax years before January 1, 2021 and up to 80% of future taxable income for tax years after December 31, 2020. Any NOLs arising on or after January 1, 2021, cannot be carried back, can generally be carried forward indefinitely and can offset up to 80% of future taxable income. The federal NOLs begin to expire in 2034; losses generated in 2018 and forward have an indefinite life. 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 equity securities we sold in October 2018 may trigger an ownership change under Section 382 which could significantly limit our ability to utilize our tax benefits. The Company will recognize a tax benefit in the consolidated financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50%) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. The provision for income taxes for the year ended December 31, 2019 was $3,877, an effective tax rate of 0.08%. In February 2019, the Company received information that the net operating loss carryback that was utilized in 2014 was under examination and could possibly be partially disallowed by the Internal Revenue Service (“IRS”). In June 2020, the Company received a letter from the IRS stating that the returns will be accepted as filed. There are no uncertain tax positions recorded for this item. This adjustment was an issue of timing of the loss and had no income tax provision effect.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	12 Months Ended
STOCK BASED COMPENSATION	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
STOCK BASED COMPENSATION	14. STOCK BASED COMPENSATION The Company accounts for compensation expense associated with stock options and RSUs based on the fair value of the options and units on the date of grant. The Company’s net loss for the years ended December 31, 2019 and 2018, includes approximately $763,000 and $718,000 of stock based compensation expense, respectively, for the grant of stock options and RSUs. In January 2019, the Company granted 75,350 RSUs to its board of directors as partial compensation for the 2019 year. In April 2019, the Company granted 6,677 RSUs to one of its board members as partial compensation for the 2019 year. In June 2019, a board member retired and 6,593 of his unvested RSUs were forfeited which were valued at approximately $47,000. In June 2019, two board members were granted an additional 2,725 RSUs as partial compensation for the 2019 year. In January 2018, the Company granted 58,578 RSUs to its board of directors as partial compensation for the 2018 year. RSUs vest quarterly on a straight-line basis over a one-year period. The Company’s net loss for the years ended December 31, 2019 and 2018 includes approximately $480,000 and $542,000, respectively, of non-cash compensation expense related to the RSU grants to the board of directors. This expense is recorded as a component of selling, general and administrative expenses. In April 2019, the Company granted 94,972 shares of common stock to various employees. In the event that any of these employees voluntarily terminates their employment prior to certain dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. In November 2019, the Company’s former Chief Financial Officer forfeited an aggregate of 38,906 shares of restricted stock upon his termination by the Company without cause, representing the performance-based portion of the restricted stock granted in 2019, 2018, 2017, and 2016. Shares of restricted stock that we grant In January 2018, the Company granted 58,578 RSUs to its board of directors as partial compensation for the 2018 year. On January 1, 2017, the Company granted 59,395 RSUs to its board of directors as partial compensation for the 2017 year. RSUs vest quarterly on a straight-line basis over a one-year period. The Company’s net income (loss) for the year ended December 31, 2018 and 2017 includes approximately $524,000 and $550,000, respectively, of noncash compensation expense related to the RSU grants to the board of directors. This expense is recorded as a component of selling, general and administrative expenses. In addition, for the year ended December 31, 2018, the Company granted 5,130 shares of common stock to various employees and approximately $10,000 of compensation expense is included in selling, general and administrative expenses and approximately $36,000 of compensation expense is included in cost of sales for this grant. In addition, for the year ended December 31, 2017, the Company granted 5,550 shares of common stock to various employees and approximately $13,300 of compensation expense is included in selling, general and administrative expenses and approximately $37,500 of compensation expense is included in cost of sales for this grant. In March 2018, the Company granted 68,764 shares of common stock to various employees. In the event that any of these employees voluntarily terminates their employment prior to certain dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. These shares will be expensed during various periods through March 2022 based upon the service and performance thresholds. For the years ended December 31, 2019 and 2018, approximately $104,000 and $88,100, respectively, of compensation expense is included in selling, general and administrative expenses and approximately $23,000 and $18,400, respectively, of compensation expense is included in cost of sales for this grant. In August 2016 and March 2017, the Company granted 98,645 and 73,060 shares of common stock, respectively, to various employees. In the event that any of these employees voluntarily terminates their employment prior to certain dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. These shares will be expensed during various periods through March 2021 based upon the service and performance thresholds. For the years ended December 31, 2019 and 2018, approximately $77,000 and $0, respectively, of compensation expense is included in selling, general and administrative expenses and approximately $17,000 and $0, respectively of compensation expense is included in cost of sales for this grant. In November 2019, 38,906 shares valued at $116,000 were forfeited as a result of the termination of employment of an officer. In December 2019, shares valued at $54,000 were forfeited because the Company failed to achieve certain performance criteria for the year ended December 31, 2019. In April 2019, 11,193, 8,299 and 8,593 of the shares granted in 2016, 2017 and 2018, respectively, were forfeited because the Company failed to achieve certain performance criteria for the year ended December 31, 2018. In addition, on April 2, 2019, these employees returned 9,806 common shares, valued at approximately $52,000, to pay the employees’ withholding taxes. On February 12, 2019, employees returned 1,221 common shares, valued at approximately $20,000, to pay the employees’ withholding taxes. In March 2018, 12,330 and 9,130 of the shares granted in 2016 and 2017, respectively, were forfeited because the Company failed to achieve certain performance criteria for the year ended December 31, 2017. In addition, on March 22, 2018, these employees returned 7,552 common shares, valued at approximately $62,000, to pay the employees’ withholding taxes. In April 2019, the Company granted 4,950 shares of common stock to various employees. For the year ended September 30, 2019, approximately $6,000 of compensation expense is included in selling, general and administrative expenses and approximately $26,000 of compensation expense is included in cost of sales for this grant. In January 2018, the Company granted 5,130 shares of common stock to various employees. For the year ended December 31, 2018, approximately $10,000 of compensation expense is included in selling, general and administrative expenses and approximately $36,000 of compensation expense is included in cost of revenue for this grant. In 2009, the Company adopted the Performance Equity Plan 2009 (the “2009 Plan”). The 2009 Plan reserved 500,000 common shares for issuance. The 2009 Plan provides for the issuance of either incentive stock options or nonqualified stock options to employees, consultants or others who provide services to the Company. The Company has 133,016 shares available for grant under the 2009 Plan. In 2016, the Company adopted the 2016 Long Term Incentive Plan (the “2016 Plan”). The 2016 Plan reserved 600,000 common shares for issuance, provided that, no more than 200,000 common shares be granted as incentive stock options. Awards may be made or granted to employees, officers, directors and consultants in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. The Company has 57,345 shares available for grant under the 2016 Plan. The Company did not grant any stock options in 2019 or 2018. A summary of the status of the Company’s stock option plans is as follows: Options Weighted Average Exercise Price Average remaining contractual term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 41,772 $ 7.58 0.29 — Exercised (35,000 ) $ 6.60 — — Forfeited (6,772 ) $ 12.67 — — Outstanding and Exercisable at December 31, 2019 — — — — During the year ended December 31, 2019, 35,000 stock options were exercised, pursuant to the provisions of the stock option plan, where the Company received no cash and 34,478 shares of its common stock in exchange for the 35,000 shares issued in the exercise. The 34,478 shares that the Company received were valued at $231,003, the fair market value of the shares on the date of exercise.

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
EMPLOYEE BENEFIT PLAN	Dec. 31, 2019
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLAN	15. EMPLOYEE BENEFIT PLAN On September 11, 1996, the Company’s board of directors instituted a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “Code”). On October 1, 1998, the Company amended and standardized its plan as required by the Code. Pursuant to the amended plan, qualified employees may contribute a percentage of their pretax eligible compensation to the Plan and the Company will match a percentage of each employee’s contribution. Additionally, the Company has a profit-sharing plan covering all eligible employees. Contributions by the Company are at the discretion of management. The amount of contributions recorded by the Company in 2019 and 2018 amounted to $560,996 and $237,568, respectively.

MAJOR CUSTOMERS

MAJOR CUSTOMERS	12 Months Ended
MAJOR CUSTOMERS	Dec. 31, 2019
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	16 MAJOR CUSTOMERS At December 31, 2019, 28%, 18%, 13% and 12% of our revenue were generated from our four largest customers. At December 31, 2018, 20%, 18%, 14% and 12% of our revenue were generated from our four largest customers. At December 31, 2019, 29%, 24% and 12% of accounts receivable were due from our three largest customers. At December 31, 2018, 18%, 16%, 14% and 14% of accounts receivable were due from our four largest customers. At December 31, 2019, 64%, 16%, 16% and 10% of our contract assets were related to our four largest customers. At December 31, 2018, 53%, 21% and 10% of our contract assets were related to our three largest customers.

SUBSEQUENT EVENTS

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

RESTATEMENT OF PREVIOUSLY ISSUE

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract]
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS	18. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS On February 14, 2020, the Company filed a Form 8-K disclosing that the Audit & Finance Committee of the Company’s Board of Directors, determined, based on the recommendation of management, that the Company’s consolidated financial statements which were included in its annual report on Form 10-K for the year ended December 31, 2018, quarterly reports on Forms 10-Q for the quarters ended March 31, 2018, June 30, 2018, and September 30, 2018 and quarterly reports on Forms 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 and related financial information should no longer be relied upon, and determined that the consolidated financial statements will be restated. The errors were uncovered as part of the preparation of the Company’s consolidated financial statements for the fiscal year ended December 31, 2019. As a result, the Company restated the 2018 consolidated financial statements, which is referred to as the “Restatement.” The Restatement corrects errors which are discussed in detail within this footnote. The errors primarily related to the timing of recognition of revenue from contracts with customers. Restatement The following is a discussion of the restatement adjustments that were made to the Company’s previously issued consolidated financial statements: (a) Revenue recognition The Company recognizes revenues and profits for contracts with customers using the cost-to-cost percentage of completion method of accounting. Historically, for long-term programs, the Company applied the cost-to-cost percentage of completion method at the program level, that is, for the entire duration of expected production activity on a particular program. The Company estimated its revenue recognition utilizing the life of the program to both measure progress and estimate profit margin. Under this approach, the Company estimated the total expected customer purchases over the life of the program, which included unexercised and non-binding customer purchase options, which resulted in the recognition of $100.9 million of misstated contract assets, contract liabilities and loss reserves. The Company has now concluded that its life of the program accounting was not an appropriate application of ASC Topic 606. Under ASC Topic 606, the performance obligation is the appropriate unit of accounting. The Company identifies performance obligations to customers once a contract is established in accordance with ASC Topic 606. For the Company, the contract under ASC Topic 606 is typically established upon execution of a purchase order either in accordance with a long-term customer agreement or on a standalone basis. The transaction price is also determined at the contract level and excludes amounts related to unexercised customer options. Similarly, the Company’s cost-to-cost input method to measure progress must consider only the costs incurred relative to the total expected costs of satisfying the performance obligations identified in the contract, exclusive of unexercised customer options. To correct these errors, the related revenue was reversed in the period in which the accounting errors took place and recognized in subsequent periods as control of the goods or services in the contract passed to the customer over time based on a cost-to-cost input method measure of progress. Additionally, certain adjustments to contract assets and contract liabilities were made to the consolidated balance sheet at the end of the period in which the accounting errors occurred. (b) Other The Company corrected other immaterial misstatements relating to previously unrecorded audit adjustments. (c) Income taxes The Company has recorded tax adjustments related to the impact of the restatement. Impact on Consolidated Statements of Operations The effect of the Restatement described above on the accompanying consolidated statements of operations for the fiscal year ended December 31, 2018 is as follows: For the Year Ended December 31, 2018 As Previously Revenue Other Income Taxes As Restated Revenue $ 83,929,270 $ (13,563,254 ) $ — $ — $ 70,366,016 Cost of sales 65,765,007 671,122 (280,143 ) — 66,155,986 Gross profit 18,164,263 (14,234,376 ) 280,143 — 4,210,030 Selling, general and administrative expenses 9,528,883 — 251,144 — 9,780,027 Income (loss) from operations 8,635,380 (14,234,376 ) 28,999 — (5,569,997 ) Other expense: Other income 28,709 — — — 28,709 Interest expense (1,989,417 ) — — — (1,989,417 ) Total other expense, net (1,960,708 ) — — — (1,960,708 ) Income (loss) before provision for income taxes 6,674,672 (14,234,376 ) 28,999 — (7,530,705 ) Provision for income taxes 4,463,109 — — (4,447,061 ) 16,048 Net income (loss) 2,211,563 (14,234,376 ) 28,999 4,447,061 (7,546,753 ) Other comprehensive income net of tax – change Change in unrealized loss-interest rate swap 14,800 14,800 Comprehensive income (loss) $ 2,226,363 $ (14,234,376 ) $ 28,999 $ 4,447,061 $ (7,531,953 ) Income (loss) per common share – basic $ 0.23 $ (0.80 ) Income (loss) per common share – diluted $ 0.23 $ (0.80 ) Shares used in computing earnings per common share: Basic 9,480,948 9,480,948 Diluted 9,489,630 9,480,948 Impact on Consolidated Statement of Comprehensive Income (Loss) The only change to the consolidated statement of comprehensive income (loss) for the fiscal year ended December 31, 2018 as a result of the Restatement is due to the change in net income (loss). Impact on Consolidated Balance Sheet The effect of the Restatement described above on the accompanying consolidated balance sheet as of December 31, 2018 is as follows: As of December 31, 2018 As Previously Revenue Other Income Taxes As Restated ASSETS Current Assets: Cash $ 4,128,142 $ — $ — $ — $ 4,128,142 Restricted cash 2,000,000 — — — 2,000,000 Accounts receivable, net 8,623,329 — 99,242 — 8,722,571 Contract assets 113,333,491 (95,744,625 ) — — 17,588,866 Inventory 9,711,997 — (350,386 ) — 9,361,611 Refundable income taxes 435,000 — — (97 ) 434,903 Prepaid expenses and other current assets 1,972,630 — — — 1,972,630 Total Current Assets 140,204,589 (95,744,625 ) (251,144 ) (97 ) 44,208,723 Property and equipment, net 2,545,192 — — — 2,545,192 Refundable income taxes 435,000 — — (97 ) 434,903 Deferred income taxes 279,318 — — (279,318 ) — Other assets 249,575 — — — 249,575 Total Assets $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 Liabilities and Shareholders' Equity (Deficit) Current Liabilities: Accounts payable $ 9,902,481 $ — $ — $ — $ 9,902,481 Accrued expenses 1,558,160 — — — 1,558,160 Contract liabilities 3,588,500 1,664,079 — — 5,252,579 Loss reserve 216,606 3,446,952 — — 3,663,558 Current portion of long-term debt 2,434,981 — — — 2,434,981 Income taxes payable 115,000 — — (1,008 ) 113,992 Total Current Liabilities 17,815,728 5,111,031 — (1,008 ) 22,925,751 Line of credit 24,038,685 — — — 24,038,685 Long-term debt, net of current portion 3,876,238 — — — 3,876,238 Deferred income taxes 4,028,553 — — (4,028,553 ) — Other liabilities 531,124 — — — 531,124 Total Liabilities 50,290,328 5,111,031 — (4,029,561 ) 51,371,798 Shareholders’ Equity (Deficit): Common stock 11,718 — — — 11,718 Additional paid-in capital 70,651,413 — — — 70,651,413 Retained earnings (accumulated deficit) 22,760,215 (100,855,656 ) (251,144 ) 3,750,049 (74,596,536 ) Total Shareholders’ Equity (Deficit) 93,423,346 (100,855,656 ) (251,144 ) 3,750,049 (3,933,405 ) Total Liabilities and Shareholders’ $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 Cumulative Effect of Prior Period Adjustments The following table presents the impact of the Restatement on the Company’s shareholders’ equity (deficit) as of January 1, 2018: Common Stock Additional Retained Accumulated Total Balance, January 1, 2018 (As previously reported) $ 8,864 $ 53,770,617 $ 20,548,652 $ (14,800 ) $ 74,313,333 Adjustments: Revenue recognition — — (86,621,280 ) — (86,621,280 ) Other — — (280,143 ) — (280,143 ) Income taxes — — (697,012 ) — (697,012 ) Cumulative restatement adjustments — — (87,598,435 ) — (87,598,435 ) Balance, January 1, 2018 (As Restated) $ 8,864 $ 53,770,617 $ (67,049,783 ) $ (14,800 ) $ (13,285,102 ) Impact on Consolidated Statement of Cash Flows The effect of the Restatement described above on the accompanying consolidated statement of cash flows for the fiscal year ended December 31, 2018 is as follows: For the Year Ended December 31, 2018 As Previously Restatement As Restated Cash flows from operating activities: Net income (loss) $ 2,211,563 $ (9,758,316 ) $ (7,546,753 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 710,197 — 710,197 Amortization of debt issuance cost 95,942 (436 ) 95,506 Deferred rent (70,764 ) — (70,764 ) Stock-based compensation expense 671,620 — 671,620 Common stock issues as employee compensation 45,913 — 45,913 Deferred income taxes 5,337,053 (5,337,053 ) — Adjustment for maturity of interest rate swap 20,600 (5,800 ) 14,800 Bad debt expense 125,000 (99,242 ) 25,758 Changes in operating assets and liabilities, net of effects of acquisition: Increase in accounts receivable (1,796,225 ) (50,283 ) (1,846,508 ) (Increase) decrease in contract assets (2,174,941 ) 12,629,627 10,454,686 (Increase) decrease in inventory (57,272 ) 350,038 292,766 (Increase) decrease in prepaid expenses and other current assets 5,702 (27,957 ) (22,255 ) Increase in refundable income taxes (870,000 ) 870,000 — Decrease in accounts payable and accrued expenses (7,696,024 ) (230,771 ) (7,926,795 ) Increase in contract liabilities 866,968 1,563,954 2,430,922 Increase (decrease) in loss reserve 44,933 (59,329 ) (14,396 ) Decrease in other liabilities (10,976 ) 5,801 (5,175 ) Increase in income taxes payable 5,673 (1,008 ) 4,665 Net cash used in operating activities (2,535,038 ) (150,775 ) (2,685,813 ) Cash flows from investing activities: Purchase of property and equipment (559,037 ) — (559,037 ) Purchase of WMI (6,050,906 ) 98,906 (5,952,000 ) Net cash used in investing activities (6,609,943 ) 98,906 (6,511,037 ) Cash flows from financing activities: Net proceeds from sale of common stock 16,166,117 — 16,166,117 Payment of line of credit (6,500,000 ) — (6,500,000 ) Proceeds from line of credit 7,700,000 — 7,700,000 Payment of long-term debt (3,314,789 ) — (3,314,789 ) Debt issuance costs (209,082 ) 51,869 (157,213 ) Net cash provided by financing activities 13,842,246 51,869 13,894,115 Net increase in cash and restricted cash 4,697,265 — 4,697,265 Cash and restricted cash at beginning of year 1,430,877 — 1,430,877 Cash and restricted cash at end of year $ 6,128,142 $ — $ 6,128,142 Supplemental schedule of noncash investing and financing activities: Equipment acquired under capital leases $ 649,410 $ — $ 649,410 Supplemental schedule of cash flow information: Cash paid during the year for interest $ 2,134,574 $ — $ 2,134,574 Cash paid for income taxes $ 10,947 $ — $ 10,947

PRINCIPAL BUSINESS ACTIVITY A_2

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Acquisition of WMI	Acquisition of WMI On December 20, 2018, pursuant to the Stock Purchase Agreement (“SPA”), dated as of March 21, 2018, with Air Industries Group (“Air Industries”), the Company purchased from Air Industries all of the outstanding shares of WMI, previously a wholly owned subsidiary of Air Industries (the “WMI Acquisition”).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the use of estimates by management. Actual results could differ from these estimates.
Business Combinations	Business Combinations The Company applied acquisition accounting for the WMI acquisition in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC Topic 805”). Acquisition accounting requires that the assets acquired and liabilities assumed be recorded at their respective estimated fair values at the date of acquisition. The excess purchase price over fair value of the net assets acquired is recorded as goodwill. In determining estimated fair values, we are required to make estimates and assumptions that affect the recorded amounts including, but not limited to, expected future cash flows, discount rates, remaining useful lives of long-lived assets, useful lives of identified intangible assets, replacement or reproduction costs of property and equipment and the amounts to be recovered in future periods from acquired net operating losses and other deferred tax assets. Our estimates in this area impact, among other items, the amount of depreciation and amortization, impairment charges in certain instances if the asset becomes impaired, and income tax expense or benefit that we report. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain. See Note 2. “Business Combinations” for a summary and status of the application of acquisition accounting.
Revenue Recognition	Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606"), using the modified retrospective method. In accordance with ASC 606, the Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to be entitled to in exchange for the good or service. The majority of the Company’s performance obligations are satisfied over-time as the Company (i) sells products with no alternative use to the Company and (ii) has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date. Under the over-time revenue recognition model, revenue and gross profit are recognized over the contract period as work is performed based on actual costs incurred and an estimate of costs to complete and resulting total estimated costs at completion. The corrected adoption of ASC 606 resulted in a restatement of previously issued consolidated financial statements. See Note 18. See Note 3, “Revenue”, for additional information regarding the Company's revenue recognition policy.
Government Contracts	Government Contracts The Company’s government contracts are subject to the procurement rules and regulations of the U.S. government. Many of the contract terms are dictated by these rules and regulations. Specifically, cost-based pricing is determined under the Federal Acquisition Regulation (“FAR”), which provides guidance on the types of costs that are allowable in establishing prices for goods and services under U.S. government contracts. For example, costs such as those related to charitable contributions, advertising, interest expense, and public relations are unallowable, and therefore not recoverable through sales. During and after the fulfillment of a government contract, the Company may be audited in respect to the direct and allocated indirect costs attributable thereto. These audits may result in adjustments to the Company’s contract cost, and/or revenue. When contractual terms allow, the Company invoices its customers on a progress basis.
Cash	Cash The Company maintains its cash in five 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, 2019 and 2018, the Company had $4,020,203 and $4,033,781, respectively, of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly credit worthy.
Accounts Receivable	Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances. The Company writes off accounts when they are deemed to be uncollectible.
Inventory	Inventory Inventories are reported at lower of cost or net realizable value.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization of property and equipment is provided by the straight-line method over the shorter of estimated useful lives of the respective assets or the life of the lease, for leasehold improvements.
Leases	Leases The Company leases a building and equipment. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The determination of the length of lease terms is affected by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The existence of significant economic incentive is the primary consideration when assessing whether the Company is reasonably certain of exercising an option in a lease. Both finance and operating lease ROU assets and liabilities are recognized at commencement date and measured as the present value of lease payments to be made over the lease term. As the interest rate implicit in the lease is not readily available for most of the Company’s leases, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The lease ROU asset recognized at commencement is adjusted for any lease payments related to initial direct costs, prepayments, and lease incentives. For operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, lease expense comprises the amortization of the ROU assets recognized on a straight-line basis generally over the shorter of the lease term or the estimated useful life of the underlying asset and interest on the lease liability. Variable lease payments not dependent on a rate or index are recognized when the event, activity, or circumstance in the lease agreement upon which those payments are contingent is probable of occurring and are presented in the same line of the consolidated balance sheet as the rent expense arising from fixed payments. The Company has lease agreements with lease and non-lease components. Non-lease components are combined with the related lease components and accounted for as lease components for all classes of underlying assets.
Long-Lived Assets	Long-Lived Assets The Company reviews its long-lived assets and certain related intangibles for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As a result of its review, the Company does not believe that any such change has occurred. If such changes in circumstance are present, a loss is recognized to the extent the carrying value of the asset is in excess of the fair value of cash flows expected to result from the use of the asset and amounts expected to be realized upon its eventual disposition.
Short-Term Debt	Short-Term Debt The fair value of the Company’s short-term debt is estimated based on the current rates offered to the Company for debt of similar terms and maturities. Using this method, the fair value of the Company’s short-term debt was not significantly different than the stated value at December 31, 2019 and 2018.
Fair Value	Fair Value At December 31, 2019 and 2018, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 30,987,918 $ 30,987,918 $ 30,349,904 $ 30,349,904 We estimated the fair value of debt using market quotes and calculations based on market rates.
Loss Per Share	Loss Per Share Basic loss per common share is computed using the weighted-average number of shares outstanding. Diluted loss per common share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. There were no incremental shares that were used in the calculation of diluted loss per common share in 2019 and 2018. Since the Company is in a loss position no incremental shares were used in the calculation of diluted loss per share since these shares would be considered anti-dilutive.
Income taxes	Income taxes Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (“ASU 2016-02"), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements and the recognition of a cumulative-effect adjustment to the opening balance of retained earnings. The FASB subsequently issued Accounting Standards Update No. 2018-10 and Accounting Standards Update No. 2018-11 in July 2018, which provide clarifications and improvements to ASU 2016-02 (collectively, the “new lease standard”). Accounting Standards Update No. 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented and continue to apply the provisions of the previous lease standard in its annual disclosures for the comparative periods. The new lease standard requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. Additional footnote disclosures related to leases will also be required. On January 1, 2019, the Company adopted the new lease standard using the optional transition method. The comparative financial information will not be restated and will continue to be reported under the previous lease standard in effect during those periods. In addition, the new lease standard provides a number of optional practical expedients in transition. The Company elected the package of practical expedients. As such, the Company will not reassess whether expired or existing contracts are or contain a lease; will not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The new lease standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company elected the practical expedient to not separate lease and non-lease components for certain classes of assets (office buildings). On January 1, 2019, the Company recognized right of use assets and lease liabilities in the range of approximately $5.3 million to $5.9 million, respectively, on its consolidated balance sheet using an estimated incremental borrowing rate of 6%.

PRINCIPAL BUSINESS ACTIVITY A_3

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule of fair values	At December 31, 2019 and 2018, the fair values of cash, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these instruments. 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Debt Line of credit and long-term debt $ 30,987,918 $ 30,987,918 $ 30,349,904 $ 30,349,904

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	12 Months Ended
BUSINESS COMBINATION (Tables)	Dec. 31, 2019
Business Combinations [Abstract]
Schedule of allocation of purchase price	The following table provides the allocation of the total purchase price of $5.9 million ($7.9 million less $2 million collected and to be collected from escrow) to the identifiable tangible and intangible assets and liabilities of WMI based on their respective fair values. The remaining useful lives represent the period over which acquired tangible and intangible assets with a finite life are being depreciated or amortized. Fair Values Estimated Useful Lives Other current assets $ 1,250,523 — Accounts receivable 1,670,931 — Inventory 4,726,110 — Property plant & equipment 901,000 5 to 7 Years Current liabilities (4,932,818 ) — Intangible 500,000 4 Years Goodwill 1,784,254 — Total $ 5,900,000
Schedule of pro forma revenue and net income	The following table presents the unaudited pro forma revenue and net income for the period presented as if the WMI Acquisition had occurred on January 1, 2018: Year Ended December 31, 2018 Restated Revenue $ 84,217,706 Net loss $ (6,567,859 )

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	12 Months Ended
REVENUE RECOGNITION (Tables)	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of revenue by contract type	The following table presents the Company’s revenue disaggregated by contract type: Year Ended December 31, 2019 2018 (restated) Aerostructure $ 41,921,232 $ 35,107,506 Aerosystems 26,624,568 17,626,968 Kitting and Supply Chain Management 18,972,888 17,631,542 Total $ 87,518,688 $ 70,366,016

RECONCILIATION OF CASH AND RE_2

RECONCILIATION OF CASH AND RESTRICTED CASH (Tables)	12 Months Ended
RECONCILIATION OF CASH AND RESTRICTED CASH (Tables)	Dec. 31, 2019
Cash and Cash Equivalents [Abstract]
Schedule of reconciliation of cash and restricted cash	The following table provides a reconciliation of cash and restricted cash reported within the statement of cash flows that sum to the total of the same such amounts shown in the statement of cash flows: December 31, 2019 December 31, 2018 Cash $ 4,052,109 $ 4,128,142 Restricted cash 1,380,684 2,000,000 Total cash and restricted cash shown in the statement of cash flow $ 5,432,793 $ 6,128,142

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
ACCOUNTS RECEIVABLE (Tables)	Dec. 31, 2019
Receivables [Abstract]
Schedule of accounts receivable	Accounts receivable consists of trade receivables as follows: December 31, 2019 2018 Billed receivables $ 7,260,457 $ 8,944,596 Less: allowance for doubtful accounts (230,855 ) (222,025 ) Total accounts receivable, net $ 7,029,602 $ 8,722,571

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
INVENTORY (Tables)	Dec. 31, 2019
Inventory Disclosure [Abstract]
Schedule of components of inventory	The components of inventory consisted of the following: December 31, 2019 2018 Raw materials $ 881,761 $ 2,591,872 Work in progress 1,916,209 4,015,028 Finished goods 3,093,416 2,754,711 Total inventory $ 5,891,386 $ 9,361,611

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	December 31, 2019 2018 Estimated Machinery and equipment $ 3,829,592 $ 2,879,707 5 to 7 Computer equipment 4,179,087 3,973,406 5 Furniture and fixtures 709,350 707,726 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 2,573,874 1,994,253 Lesser of lease term or 10 years Total gross property and equipment 11,305,065 9,568,254 Less accumulated depreciation and amortization 8,022,126 7,023,062 Total property and equipment, net $ 3,282,939 $ 2,545,192

INTANGIBLES AND GOODWILL (Table

INTANGIBLES AND GOODWILL (Tables)	12 Months Ended
INTANGIBLES AND GOODWILL (Tables)	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangibles and goodwill	December 31, 2019 2018 Intangibles $ 500,000 $ 0 Less: amortization of intangibles (125,000 ) (0 ) Total Intangibles, net $ 375,000 $ 0 Goodwill $ 1,784,254 $ 0

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
LONG-TERM DEBT (Tables)	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of maturities of long-term debt	The maturities of the long-term debt (excluding unamortized debt issuance costs) as of December 31, 2019, are as follows: Year ending December 31, 2020 $ 2,484,619 2021 1,452,149 2022 187,853 2023 109,485 2024 15,127 Total $ 4,249,233

LEASES (Tables)

LEASES (Tables)	12 Months Ended
LEASES (Tables)	Dec. 31, 2019
Leases [Abstract]
Schedule of future minimum lease payments under non-cancellable operating leases	Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: Year ending December 31, 2020 $ 1,921,015 2021 1,964,815 2022 705,889 2023 37,238 2024 8,349 Total undiscounted operating lease payments 4,637,306 Less imputed interest (331,369 ) Present value of operating lease payments $ 4,305,937
Schedule of ROU assets and operating lease liabilities	The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2019: Assets ROU Assets $ 3,886,863 Liabilities Current operating lease liabilities $ 1,709,153 Long-term operating lease liabilities 2,596,784 Total ROU liabilities $ 4,305,937

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of components of the provision for income taxes	The provision for income taxes consists of the following: Year ended December 31, 2019 2018 Current: Federal $ — $ (2,220 ) State 3,877 18,268 Deferred: Federal — — State — — Total $ 3,877 $ 16,048
Schedule of difference between the income tax provision computed at the federal statutory rate and the actual tax provision	The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows: December 31, 2019 2018 Taxes computed at the federal statutory rate $ (1,012,457 ) $ (1,511,080 ) State income tax, net 3,890 14,432 Prior year true-up — 17,865 Research and development tax credit (180,813 ) (163,903 ) Change in valuation allowance 1,127,573 1,617,139 Other 10,870 171 Permanent differences 54,814 41,424 Provision for income taxes $ 3,877 $ 16,048
Schedule of components of deferred income tax assets and liabilities	The components of deferred income tax assets and liabilities are as follows: Deferred Tax Assets 2019 2018 Allowance for doubtful accounts $ 50,100 $ 60,467 Credit carryforwards 1,435,543 1,254,731 Inventory reserve 423,605 — Deferred rent — 116,784 Stock options — 12,478 Restricted stock 87,976 88,410 Other 15,237 7,550 Acquisition costs 100,774 109,397 Lease liability 934,463 — Disallowed interest expense 791,785 431,319 Net operating loss carryforward 21,058,838 20,902,163 Deferred tax assets 24,898,321 22,983,299 Valuation allowance (21,213,040 ) (20,222,640 ) Deferred Tax Liabilities : Prepaid expenses 114,738 158,777 Revenue recognition 2,133,348 2,197,535 Property and equipment 593,678 404,347 Right of use asset 843,517 — Deferred tax liabilities $ 3,685,281 $ 2,760,659 Net deferred tax assets (liabilities) $ — $ —

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	12 Months Ended
STOCK BASED COMPENSATION (Tables)	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock options plans activity	A summary of the status of the Company’s stock option plans is as follows: Options Weighted Average Exercise Price Average remaining contractual term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 41,772 $ 7.58 0.29 — Exercised (35,000 ) $ 6.60 — — Forfeited (6,772 ) $ 12.67 — — Outstanding and Exercisable at December 31, 2019 — — — —

RESTATEMENT OF PREVIOUSLY ISS_2

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Schedule of Impact on Financial Statements	The effect of the Restatement described above on the accompanying consolidated statements of operations for the fiscal year ended December 31, 2018 is as follows: For the Year Ended December 31, 2018 As Previously Revenue Other Income Taxes As Restated Revenue $ 83,929,270 $ (13,563,254 ) $ — $ — $ 70,366,016 Cost of sales 65,765,007 671,122 (280,143 ) — 66,155,986 Gross profit 18,164,263 (14,234,376 ) 280,143 — 4,210,030 Selling, general and administrative expenses 9,528,883 — 251,144 — 9,780,027 Income (loss) from operations 8,635,380 (14,234,376 ) 28,999 — (5,569,997 ) Other expense: Other income 28,709 — — — 28,709 Interest expense (1,989,417 ) — — — (1,989,417 ) Total other expense, net (1,960,708 ) — — — (1,960,708 ) Income (loss) before provision for income taxes 6,674,672 (14,234,376 ) 28,999 — (7,530,705 ) Provision for income taxes 4,463,109 — — (4,447,061 ) 16,048 Net income (loss) 2,211,563 (14,234,376 ) 28,999 4,447,061 (7,546,753 ) Other comprehensive income net of tax – change Change in unrealized loss-interest rate swap 14,800 14,800 Comprehensive income (loss) $ 2,226,363 $ (14,234,376 ) $ 28,999 $ 4,447,061 $ (7,531,953 ) Income (loss) per common share – basic $ 0.23 $ (0.80 ) Income (loss) per common share – diluted $ 0.23 $ (0.80 ) Shares used in computing earnings per common share: Basic 9,480,948 9,480,948 Diluted 9,489,630 9,480,948 The effect of the Restatement described above on the accompanying consolidated balance sheet as of December 31, 2018 is as follows: As of December 31, 2018 As Previously Revenue Other Income Taxes As Restated ASSETS Current Assets: Cash $ 4,128,142 $ — $ — $ — $ 4,128,142 Restricted cash 2,000,000 — — — 2,000,000 Accounts receivable, net 8,623,329 — 99,242 — 8,722,571 Contract assets 113,333,491 (95,744,625 ) — — 17,588,866 Inventory 9,711,997 — (350,386 ) — 9,361,611 Refundable income taxes 435,000 — — (97 ) 434,903 Prepaid expenses and other current assets 1,972,630 — — — 1,972,630 Total Current Assets 140,204,589 (95,744,625 ) (251,144 ) (97 ) 44,208,723 Property and equipment, net 2,545,192 — — — 2,545,192 Refundable income taxes 435,000 — — (97 ) 434,903 Deferred income taxes 279,318 — — (279,318 ) — Other assets 249,575 — — — 249,575 Total Assets $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 Liabilities and Shareholders' Equity (Deficit) Current Liabilities: Accounts payable $ 9,902,481 $ — $ — $ — $ 9,902,481 Accrued expenses 1,558,160 — — — 1,558,160 Contract liabilities 3,588,500 1,664,079 — — 5,252,579 Loss reserve 216,606 3,446,952 — — 3,663,558 Current portion of long-term debt 2,434,981 — — — 2,434,981 Income taxes payable 115,000 — — (1,008 ) 113,992 Total Current Liabilities 17,815,728 5,111,031 — (1,008 ) 22,925,751 Line of credit 24,038,685 — — — 24,038,685 Long-term debt, net of current portion 3,876,238 — — — 3,876,238 Deferred income taxes 4,028,553 — — (4,028,553 ) — Other liabilities 531,124 — — — 531,124 Total Liabilities 50,290,328 5,111,031 — (4,029,561 ) 51,371,798 Shareholders’ Equity (Deficit): Common stock 11,718 — — — 11,718 Additional paid-in capital 70,651,413 — — — 70,651,413 Retained earnings (accumulated deficit) 22,760,215 (100,855,656 ) (251,144 ) 3,750,049 (74,596,536 ) Total Shareholders’ Equity (Deficit) 93,423,346 (100,855,656 ) (251,144 ) 3,750,049 (3,933,405 ) Total Liabilities and Shareholders’ $ 143,713,674 $ (95,744,625 ) $ (251,144 ) $ (279,512 ) $ 47,438,393 The following table presents the impact of the Restatement on the Company’s shareholders’ equity (deficit) as of January 1, 2018: Common Stock Additional Retained Accumulated Total Balance, January 1, 2018 (As previously reported) $ 8,864 $ 53,770,617 $ 20,548,652 $ (14,800 ) $ 74,313,333 Adjustments: Revenue recognition — — (86,621,280 ) — (86,621,280 ) Other — — (280,143 ) — (280,143 ) Income taxes — — (697,012 ) — (697,012 ) Cumulative restatement adjustments — — (87,598,435 ) — (87,598,435 ) Balance, January 1, 2018 (As Restated) $ 8,864 $ 53,770,617 $ (67,049,783 ) $ (14,800 ) $ (13,285,102 ) The effect of the Restatement described above on the accompanying consolidated statement of cash flows for the fiscal year ended December 31, 2018 is as follows: For the Year Ended December 31, 2018 As Previously Restatement As Restated Cash flows from operating activities: Net income (loss) $ 2,211,563 $ (9,758,316 ) $ (7,546,753 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 710,197 — 710,197 Amortization of debt issuance cost 95,942 (436 ) 95,506 Deferred rent (70,764 ) — (70,764 ) Stock-based compensation expense 671,620 — 671,620 Common stock issues as employee compensation 45,913 — 45,913 Deferred income taxes 5,337,053 (5,337,053 ) — Adjustment for maturity of interest rate swap 20,600 (5,800 ) 14,800 Bad debt expense 125,000 (99,242 ) 25,758 Changes in operating assets and liabilities, net of effects of acquisition: Increase in accounts receivable (1,796,225 ) (50,283 ) (1,846,508 ) (Increase) decrease in contract assets (2,174,941 ) 12,629,627 10,454,686 (Increase) decrease in inventory (57,272 ) 350,038 292,766 (Increase) decrease in prepaid expenses and other current assets 5,702 (27,957 ) (22,255 ) Increase in refundable income taxes (870,000 ) 870,000 — Decrease in accounts payable and accrued expenses (7,696,024 ) (230,771 ) (7,926,795 ) Increase in contract liabilities 866,968 1,563,954 2,430,922 Increase (decrease) in loss reserve 44,933 (59,329 ) (14,396 ) Decrease in other liabilities (10,976 ) 5,801 (5,175 ) Increase in income taxes payable 5,673 (1,008 ) 4,665 Net cash used in operating activities (2,535,038 ) (150,775 ) (2,685,813 ) Cash flows from investing activities: Purchase of property and equipment (559,037 ) — (559,037 ) Purchase of WMI (6,050,906 ) 98,906 (5,952,000 ) Net cash used in investing activities (6,609,943 ) 98,906 (6,511,037 ) Cash flows from financing activities: Net proceeds from sale of common stock 16,166,117 — 16,166,117 Payment of line of credit (6,500,000 ) — (6,500,000 ) Proceeds from line of credit 7,700,000 — 7,700,000 Payment of long-term debt (3,314,789 ) — (3,314,789 ) Debt issuance costs (209,082 ) 51,869 (157,213 ) Net cash provided by financing activities 13,842,246 51,869 13,894,115 Net increase in cash and restricted cash 4,697,265 — 4,697,265 Cash and restricted cash at beginning of year 1,430,877 — 1,430,877 Cash and restricted cash at end of year $ 6,128,142 $ — $ 6,128,142 Supplemental schedule of noncash investing and financing activities: Equipment acquired under capital leases $ 649,410 $ — $ 649,410 Supplemental schedule of cash flow information: Cash paid during the year for interest $ 2,134,574 $ — $ 2,134,574 Cash paid for income taxes $ 10,947 $ — $ 10,947

PRINCIPAL BUSINESS ACTIVITY A_4

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Carrying Amount [Member]
Line of credit and long-term debt	$ 30,987,918	$ 30,349,904
Fair Value [Member]
Line of credit and long-term debt	$ 30,987,918	$ 30,349,904

PRINCIPAL BUSINESS ACTIVITY A_5

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Dec. 31, 2019	Jan. 02, 2019	Dec. 31, 2018
Cash uninsured amount	$ 4,020,203		$ 4,033,781
Operating lease right-of-use assets	3,886,863
Operating lease right-of-use liabilities	$ 2,596,784
ASU 2016-02 [Member]
Operating lease right-of-use assets		$ 5,300,000
Operating lease right-of-use liabilities		$ 5,900,000
Incremental borrowing rate		6.00%

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) - USD ($)	12 Months Ended
BUSINESS COMBINATION (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 20, 2018
Allocation of the total purchase price of business combination:
Goodwill	$ 1,784,254	$ 0
WMI [Member]
Allocation of the total purchase price of business combination:
Other current assets	1,250,523
Accounts receivable	1,670,931
Inventory	4,726,110
Property plant & equipment	901,000
Current liabilities	(4,932,818)
Intangible	500,000
Goodwill	1,784,254		$ 1,784,254
Total	$ 5,900,000		$ 5,900,000
Intangible, Estimated useful lives	4 years
WMI [Member] \| Minimum [Member]
Allocation of the total purchase price of business combination:
Property plant & equipment, Estimated useful lives	5 years
WMI [Member] \| Maximum [Member]
Allocation of the total purchase price of business combination:
Property plant & equipment, Estimated useful lives	7 years

BUSINESS COMBINATION (Details 1

BUSINESS COMBINATION (Details 1) - WMI [Member]	12 Months Ended
BUSINESS COMBINATION (Details 1) - WMI [Member]	Dec. 31, 2018USD ($)
Pro forma Information:
Revenue	$ 84,217,706
Net loss	$ (6,567,859)

BUSINESS COMBINATION (Details N

BUSINESS COMBINATION (Details Narrative) - USD ($)	Sep. 27, 2019	Sep. 03, 2019	Dec. 20, 2018	Oct. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Restricted Cash					$ 1,380,684	$ 2,000,000
Air Industries [Member]
Judgment amount sought	$ 4,100,000
Release of escrow deposit				$ 619,000
WMI [Member]
Net purchase price			$ 5,900,000		5,900,000
Purchase price for acquisition			7,900,000
Purchase price held in escrow			$ 2,000,000
Potential decrease in acquisition purchase price		$ 4,100,000
Restricted Cash					1,381,000
Purchase price additional disputed amount					$ 2,100,000

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($)	12 Months Ended
REVENUE RECOGNITION (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Revenue by long-term contract type	$ 87,518,688	$ 70,366,016
Aerostructure [Member]
Revenue by long-term contract type	41,921,232	35,107,506
Aerosystems [Member]
Revenue by long-term contract type	26,624,568	17,626,968
Kitting and Supply Chain Management [Member]
Revenue by long-term contract type	$ 18,972,888	$ 17,631,542

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative)	Dec. 31, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 148,000,000
Performance obligation recognition percentage	59.00%
Performance obligation recognition year	2020

CONTRACT ASSETS AND LIABILITI_2

CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Contract Assets And Liabilities
Revenue recognized that was included in contract liabilities	$ 5,200,000	$ 75,000

RECONCILIATION OF CASH AND RE_3

RECONCILIATION OF CASH AND RESTRICTED CASH (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash	$ 4,052,109	$ 4,128,142
Restricted cash	1,380,684	2,000,000
Total cash and restricted cash shown in the statement of cash flow	$ 5,432,793	$ 6,128,142	$ 1,430,877

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Billed receivables	$ 7,260,457	$ 8,944,596
Less: allowance for doubtful accounts	(230,855)	(222,025)
Total accounts receivable, net	$ 7,029,602	$ 8,722,571

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 881,761	$ 2,591,872
Work in progress	1,916,209	4,015,028
Finished goods	3,093,416	2,754,711
Total inventory	$ 5,891,386	$ 9,361,611

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property and equipment, gross	$ 11,305,065	$ 9,568,254
Less accumulated depreciation and amortization	8,022,126	7,023,062
Property and equipment, net	3,282,939	2,545,192
Machinery and Equipment [Member]
Property and equipment, gross	$ 3,829,592	2,879,707
Machinery and Equipment [Member] \| Minimum [Member]
Estimated useful life	5 years
Machinery and Equipment [Member] \| Maximum [Member]
Estimated useful life	7 years
Computer Equipment [Member]
Property and equipment, gross	$ 4,179,087	3,973,406
Estimated useful life	5 years
Furniture and Fixtures [Member]
Property and equipment, gross	$ 709,350	707,726
Estimated useful life	7 years
Automobiles and Trucks [Member]
Property and equipment, gross	$ 13,162	13,162
Estimated useful life	5 years
Leasehold Improvements [Member]
Property and equipment, gross	$ 2,573,874	$ 1,994,253
Leasehold Improvements [Member] \| Maximum [Member]
Estimated useful life	10 years

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Depreciation and amortization expense	$ 1,124,063	$ 710,197
Property Plant And Equipment [Member]
Depreciation and amortization expense	710,196	999,063
Assets Held under Capital Leases [Member]
Property and equipment acquired under capital lease	$ 399,800	$ 649,410

INTANGIBLES AND GOODWILL (Detai

INTANGIBLES AND GOODWILL (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles	$ 500,000	$ 0
Less: amortization of intangibles	(125,000)	0
Total Intangibles, net	375,000	0
Goodwill	$ 1,784,254	$ 0

INTANGIBLES AND GOODWILL (Det_2

INTANGIBLES AND GOODWILL (Details Narrative) - USD ($)	12 Months Ended
INTANGIBLES AND GOODWILL (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 20, 2018
Goodwill	$ 1,784,254	$ 0
Amortization expense	125,000
WMI [Member]
Goodwill	$ 1,784,254		$ 1,784,254
Intangible asset useful life	4 years

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	Jun. 25, 2019	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Mar. 24, 2016
Net income			$ (4,450,152)	$ (7,546,753)
Revolving Credit Facility [Member] \| Bank United [Member]
Line of credit facility, maximum borrowing capacity					$ 30,000,000
Line of credit facility, maturity date	Jun. 30, 2021
Revolving Credit Facility [Member] \| Amendment - Bank United [Member]
Oustanding loans		$ 26,700,000	$ 26,700,000
Line of credit facility, interest rate at period end		5.25%	5.25%
Revolving Credit Facility [Member] \| Amendment - Bank United [Member] \| Minimum [Member]
Debt service coverage ratio		1	1
Maximum leverage ratio		1	1
Minimum adjusted EBITDA		$ 2,000,000
Net income		$ 1
Revolving Credit Facility [Member] \| Amendment - Bank United [Member] \| Maximum [Member]
Debt service coverage ratio		1.5	1.5
Maximum leverage ratio		3	3
Term loan [Member] \| Bank United [Member]
Debt instrument, face amount					$ 10,000,000
Line of credit facility, maturity date	Jun. 30, 2021

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	Dec. 31, 2019USD ($)
Twelve months ending December 31,
2020	$ 2,484,619
2021	1,452,149
2022	187,853
2023	109,485
2024	15,127
Total	$ 4,249,233

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	Jun. 25, 2019	Mar. 24, 2016	Dec. 31, 2019	Dec. 31, 2018
Payments of debt issuance costs			$ 25,000	$ 157,213
Financing leases and notes payable			546,100	592,712
Financing leases and notes payable, current			384,619	334,981
Right-of-use assets under financing leases			3,024,852	2,625,052
Accumulated depreciation of assets under financing leases			1,868,377	$ 1,517,164
Bank United [Member]
Commitment and agent fees			25,000
Revolving Credit Facility [Member] \| Bank United [Member]
Line of credit facility, maturity date	Jun. 30, 2021
Term loan [Member] \| Bank United [Member]
Line of credit facility, maturity date	Jun. 30, 2021
Payments of debt issuance costs		$ 488,000
Debt issuance costs			71,000
Debt issuance costs, reduction of long-term debt			$ 15,000
Debt instrument, face amount		$ 10,000,000

LEASES (Details)

LEASES (Details)	Dec. 31, 2019USD ($)
Year ending December 31,
2020	$ 1,921,015
2021	1,964,815
2022	705,889
2023	37,238
2024	8,349
Total undiscounted operating lease payments	4,637,306
Less imputed interest	(331,369)
Present value of operating lease payments	$ 4,305,937

LEASES (Details 1)

LEASES (Details 1)	Dec. 31, 2019USD ($)
Assets
ROU Assets	$ 3,886,863
Liabilities
Current operating lease liabilities	1,709,153
Long-term operating lease liabilities	2,596,784
Total ROU liabilities	$ 4,305,937

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
LEASES (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease expense	$ 1,761,374	$ 1,608,701
Weighted average remaining lease term operating leases	2 years 1 month 6 days

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
INCOME TAXES (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal		$ (2,220)
State	$ 3,877	18,268
Deferred:
Income Tax Expense (Benefit)	$ 3,877	$ 16,048

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Taxes computed at the federal statutory rate	$ (1,012,457)	$ (1,511,080)
State income tax, net	3,890	14,432
Prior year true-up		17,865
Research and development tax credit	(180,813)	(163,903)
Change in valuation allowance	1,127,573	1,617,139
Other	10,870	171
Permanent differences	54,814	41,424
Provision for income taxes	$ 3,877	$ 16,048

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets:
Allowance for doubtful accounts	$ 50,100	$ 60,467
Credit carryforwards	1,435,543	1,254,731
Inventory reserve	423,605
Deferred rent		116,784
Stock options		12,478
Restricted stock	87,976	88,410
Other	15,237	7,550
Acquisition costs	100,774	109,397
Lease liability	934,463
Disallowed interest expense	791,785	431,319
Net operating loss carryforward	21,058,838	20,902,163
Deferred tax assets	24,898,321	22,983,299
Valuation allowance	(21,213,040)	(20,222,640)
Deferred Tax Liabilities:
Prepaid expenses	114,738	158,777
Revenue recognition	2,133,348	2,197,535
Property and equipment	593,678	404,347
Right of use asset	843,517
Deferred tax liabilities	3,685,281	2,760,659
Net deferred tax assets (liabilities)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Provision for income taxes	$ 3,877	$ 16,048
Effective tax rate	0.08%
Federal [Member]
Net operating losses	$ 93,000,000
NOL description	As a result of the Tax Cuts and Jobs Act of 2017 and The Coronavirus Aid, Relief, and Economic Security Act of 2020, NOLs arising before January 1, 2018, and NOLs arising after January 1, 2018, are subject to different rules. Our pre-2018 NOLs totaled approximately $78.8 million; these NOLs will expire in varying amounts from 2030 through 2039, if not utilized, and can offset 100% of future taxable income for regular tax purposes. Our NOLs arising in 2018, 2019 and 2020 can generally be carried back five years, carried forward indefinitely and can offset 100% of future taxable income for tax years before January 1, 2021 and up to 80% of future taxable income for tax years after December 31, 2020. Any NOLs arising on or after January 1, 2021, cannot be carried back, can generally be carried forward indefinitely and can offset up to 80% of future taxable income. The federal NOLs begin to expire in 2034; losses generated in 2018 and forward have an indefinite life.
Federal [Member] \| Tax Year 2018, 2019 and 2020 [Member]
Offset taxable income for regular tax purpose (percent)	100.00%
Federal [Member] \| pre-2018 NOLs [Member]
Net operating losses	$ 78,800,000
Offset taxable income for regular tax purpose (percent)	100.00%
Federal [Member] \| Tax Years after 2020 [Member]
Offset taxable income for regular tax purpose (percent)	8000.00%
State [Member]
Net operating losses	$ 38,600,000
NOL description	The state NOLs begin to expire in 2034.

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - Stock Option Plans [Member]	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Options, Outstanding
Outstanding at beginning \| shares	41,772
Exercised \| shares	(35,000)
Forfeited \| shares	(6,772)
Options, Outstanding, Weighted Average Exercise Price
Outstanding at beginning \| $ / shares	$ 7.58
Exercised \| $ / shares	6.60
Forfeited \| $ / shares	$ 12.67
Options, Weighted Average Remaining Contractual Term
Outstanding	3 months 14 days

STOCK BASED COMPENSATION (Det_2

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	Apr. 02, 2019	Feb. 12, 2019	Mar. 22, 2018	Dec. 31, 2019	Nov. 30, 2019	Sep. 30, 2019	Jun. 30, 2019	Apr. 30, 2019	Apr. 29, 2019	Jan. 31, 2019	Mar. 31, 2018	Jan. 31, 2018	Mar. 31, 2017	Jan. 31, 2017	Aug. 31, 2016	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock-based compensation																	$ 763,000	$ 718,000
Stock-based compensation - RSUs																	$ 480,000	542,000
Performance Equity Plan 2009 [Member]
Number of shares authorized under plan				500,000													500,000
Number of shares available for grant				133,016													133,016
Long Term Incentive Plan [Member]
Number of shares authorized under plan				600,000													600,000
Number of shares available for grant				57,345													57,345
Maximum number of shares to be granted as incentive stock				200,000													200,000
Restricted Stock Units (RSUs) [Member]
Vesting period																	1 year
Restricted Stock Units (RSUs) [Member] \| Director [Member]
Stock-based compensation - RSUs																		524,000	$ 550,000
Restricted stock units granted							2,725	6,677		75,350		58,578		59,395
Stock awards forfeited (shares)							6,593
Stock awards forfeited							$ 47,000
Stock Awards [Member]
Stock awards forfeited				$ 54,000
Stock Awards [Member] \| Selling, General and Administrative Expenses [Member]
Stock-based compensation																	$ 77,000	0
Stock Awards [Member] \| Cost of Sales [Member]
Stock-based compensation																	17,000	0
Stock Awards [Member] \| Employees [Member]
Number of common shares granted								94,972	4,950		68,764		73,060		98,645
Number of shares returned for employee's withholding taxes (shares)	9,806	1,221	7,552
Value of shares returned for employee's withholding taxes	$ 52,000	$ 20,000	$ 62,000
Stock Awards [Member] \| Employees [Member] \| Selling, General and Administrative Expenses [Member]
Stock-based compensation						$ 6,000											191,000	88,100
Stock Awards [Member] \| Employees [Member] \| Cost of Sales [Member]
Stock-based compensation																	63,000	$ 18,400
Stock Awards [Member] \| Officer [Member]
Stock awards forfeited (shares)					38,906
Stock awards forfeited					$ 116,000
Stock Awards [Member] \| Employees [Member]
Number of common shares granted												5,130						5,130	5,550
Stock Awards [Member] \| Employees [Member] \| Selling, General and Administrative Expenses [Member]
Stock-based compensation																	104,000
Stock Awards [Member] \| Employees [Member] \| Cost of Sales [Member]
Stock-based compensation						$ 26,000											$ 23,000
Stock Awards [Member] \| Employees [Member] \| Selling, General and Administrative Expenses [Member]
Stock-based compensation																		$ 10,000	$ 13,300
Stock Awards [Member] \| Employees [Member] \| Cost of Sales [Member]
Stock-based compensation																		$ 36,000	$ 37,500
2016 Stock Awards [Member]
Stock awards forfeited (shares)								11,193			12,330
2017 Stock Awards [Member]
Stock awards forfeited (shares)								8,299								9,130
2018 Stock Awards [Member]
Stock awards forfeited (shares)								8,593
Stock Option Plans [Member]
Number of options exercised (in shares)																	35,000
Number of shares received in cashless exercise (in shares)																	34,478
Fair value of shares received for cashless exercise of stock options																	$ 231,003

EMPLOYEE BENEFIT PLAN (Details

EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($)	12 Months Ended
EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Profit-sharing plan contributions	$ 560,996	$ 237,568

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative) - N	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue [Member]
Concentration Risk [Line Items]
Number of large commercial customers			4	4
Revenue [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			28.00%	20.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			18.00%	18.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%	14.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			12.00%	12.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of large commercial customers	3	4
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	29.00%	18.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	24.00%	16.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%	14.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%
Contract Assets [Member]
Concentration Risk [Line Items]
Number of large commercial customers	4	3
Contract Assets [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	64.00%	53.00%
Contract Assets [Member] \| Customer Concentration Risk [Member] \| Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	16.00%	21.00%
Contract Assets [Member] \| Customer Concentration Risk [Member] \| Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	16.00%	10.00%
Contract Assets [Member] \| Customer Concentration Risk [Member] \| Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Aug. 24, 2020USD ($)	Sep. 27, 2019USD ($)	Jun. 25, 2019	May 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Apr. 10, 2020USD ($)	Mar. 24, 2016USD ($)
Net income						$ (4,450,152)	$ (7,546,753)
Revolving Credit Facility [Member] \| Bank United [Member]
Line of credit facility, maximum borrowing capacity									$ 30,000,000
Line of credit facility, maturity date			Jun. 30, 2021
Revolving Credit Facility [Member] \| Amendment - Bank United [Member]
Oustanding loans					$ 26,700,000	$ 26,700,000
Line of credit facility, interest rate at period end					5.25%	5.25%
Revolving Credit Facility [Member] \| Amendment - Bank United [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Variable rate spread	3.25%
Revolving Credit Facility [Member] \| Amendment - Bank United [Member] \| Prime Rate [Member]
Variable rate spread	0.25%
Revolving Credit Facility [Member] \| Amendment - Bank United [Member] \| Minimum [Member]
Minimum adjusted EBITDA					$ 2,000,000
Net income					$ 1
Revolving Credit Facility [Member] \| Amendment - Bank United [Member] \| Minimum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Variable rate spread	0.50%
Term loan [Member] \| Bank United [Member]
Principal amount									$ 10,000,000
Line of credit facility, maturity date			Jun. 30, 2021
Air Industries Working Capital Dispute [Member]
Judgment amount sought		$ 3,600,000
Subsequent Event [Member]
Amount of stop-work order				$ 3,600,000
Subsequent Event [Member] \| Sixth Amendment - Bank United [Member] \| Minimum [Member]
Minimum funded debt to EBITDA ratio	4
Minimum adjusted EBITDA	$ 2,000,000
Net income	1
Subsequent Event [Member] \| Amendment - Bank United after 9/30/20 [Member] \| Minimum [Member]
Minimum adjusted EBITDA	1,000,000
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Sixth Amendment - Bank United [Member]
Line of credit facility, maximum borrowing capacity	$ 24,000,000
Line of credit facility, maturity date	May 22, 2022
Reduction in revolving note	$ 6,000,000
Subsequent Event [Member] \| Term loan [Member] \| Sixth Amendment - Bank United [Member]
Line of credit facility, maturity date	May 22, 2022
Outstanding principal amount	$ 7,933,000
Revolving note converted into term loan	$ 6,000,000
Subsequent Event [Member] \| PPP Loan [Member]
Principal amount								$ 4,795,000
Interest rate								1.00%

RESTATEMENT OF PREVIOUSLY ISS_3

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 87,518,688	$ 70,366,016
Cost of sales	78,386,997	66,155,986
Gross profit	9,131,691	4,210,030
Selling, general and administrative expenses	11,562,781	9,780,027
Income (loss) from operations	(2,431,090)	(5,569,997)
Other expense:
Other income	89,666	28,709
Interest expense	(2,104,851)	(1,989,417)
Total other expense, net	(2,015,185)	(1,960,708)
Income (loss) before provision for income taxes	(4,446,275)	(7,530,705)
Provision for income taxes	3,877	16,048
Net income (loss)	(4,450,152)	(7,546,753)
Other comprehensive income net of tax-change
Change in unrealized loss-interest rate swap		14,800
Comprehensive income (loss)	$ (4,450,152)	$ (7,531,953)
Income (loss) per common share - basic (in dollars per share)	$ (0.38)	$ (0.80)
Income (loss) per common share - diluted (in dollars per share)	$ (0.38)	$ (0.80)
Shares used in computing earnings per common share:
Basic (in shares)	11,808,052	9,480,948
Diluted (in shares)	11,808,052	9,480,948
Previously Reported [Member]
Revenue		$ 83,929,270
Cost of sales		65,765,007
Gross profit		18,164,263
Selling, general and administrative expenses		9,528,883
Income (loss) from operations		8,635,380
Other expense:
Other income		28,709
Interest expense		(1,989,417)
Total other expense, net		(1,960,708)
Income (loss) before provision for income taxes		6,674,672
Provision for income taxes		4,463,109
Net income (loss)		2,211,563
Other comprehensive income net of tax-change
Change in unrealized loss-interest rate swap		14,800
Comprehensive income (loss)		$ 2,226,363
Income (loss) per common share - basic (in dollars per share)		$ 0.23
Income (loss) per common share - diluted (in dollars per share)		$ 0.23
Shares used in computing earnings per common share:
Basic (in shares)		9,480,948
Diluted (in shares)		9,489,630
Restatement Adjustment [Member]
Other expense:
Net income (loss)		$ (9,758,316)
Restatement Adjustment [Member] \| Revenue Recognition [Member]
Revenue		(13,563,254)
Cost of sales		671,122
Gross profit		(14,234,376)
Income (loss) from operations		(14,234,376)
Other expense:
Income (loss) before provision for income taxes		(14,234,376)
Net income (loss)		(14,234,376)
Other comprehensive income net of tax-change
Comprehensive income (loss)		(14,234,376)
Restatement Adjustment [Member] \| Other [Member]
Cost of sales		(280,143)
Gross profit		280,143
Selling, general and administrative expenses		251,144
Income (loss) from operations		28,999
Other expense:
Income (loss) before provision for income taxes		28,999
Net income (loss)		28,999
Other comprehensive income net of tax-change
Comprehensive income (loss)		28,999
Restatement Adjustment [Member] \| Income Taxes [Member]
Other expense:
Provision for income taxes		(4,447,061)
Net income (loss)		4,447,061
Other comprehensive income net of tax-change
Comprehensive income (loss)		$ 4,447,061

RESTATEMENT OF PREVIOUSLY ISS_4

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 4,052,109	$ 4,128,142
Restricted cash	1,380,684	2,000,000
Accounts receivable, net	7,029,602	8,722,571
Contract assets	15,280,807	17,588,866
Inventory	5,891,386	9,361,611
Refundable income taxes	474,904	434,903
Prepaid expenses and other current assets	721,964	1,972,630
Total Current Assets	34,831,456	44,208,723
Property and equipment, net	3,282,939	2,545,192
Refundable income taxes		434,903
Other assets	179,068	249,575
Total Assets	44,339,580	47,438,393
Current Liabilities:
Accounts payable	8,199,557	9,902,481
Accrued expenses	2,372,522	1,558,160
Contract liabilities	3,561,707	5,252,579
Loss reserve	2,650,963	3,663,558
Current portion of long-term debt	2,484,619	2,434,981
Income taxes payable	1,216	113,992
Total Current Liabilities	20,979,737	22,925,751
Line of credit		24,038,685
Long-term debt, net of current portion	1,764,614	3,876,238
Other liabilities		531,124
Total Liabilities	52,079,820	51,371,798
Shareholders' Equity (Deficit):
Common stock	11,819	11,718
Additional paid-in capital	71,294,629	70,651,413
Retained earnings (accumulated deficit)	(79,046,688)	(74,596,536)
Total Shareholders' Equity (Deficit)	(7,740,240)	(3,933,405)	$ (13,285,102)
Total Liabilities and Shareholders' Equity (Deficit)	$ 44,339,580	47,438,393
Previously Reported [Member]
Current Assets:
Cash		4,128,142
Restricted cash		2,000,000
Accounts receivable, net		8,623,329
Contract assets		113,333,491
Inventory		9,711,997
Refundable income taxes		435,000
Prepaid expenses and other current assets		1,972,630
Total Current Assets		140,204,589
Property and equipment, net		2,545,192
Refundable income taxes		435,000
Deferred income taxes		279,318
Other assets		249,575
Total Assets		143,713,674
Current Liabilities:
Accounts payable		9,902,481
Accrued expenses		1,558,160
Contract liabilities		3,588,500
Loss reserve		216,606
Current portion of long-term debt		2,434,981
Income taxes payable		115,000
Total Current Liabilities		17,815,728
Line of credit		24,038,685
Long-term debt, net of current portion		3,876,238
Deferred income taxes		4,028,553
Other liabilities		531,124
Total Liabilities		50,290,328
Shareholders' Equity (Deficit):
Common stock		11,718
Additional paid-in capital		70,651,413
Retained earnings (accumulated deficit)		22,760,215
Total Shareholders' Equity (Deficit)		93,423,346	74,313,333
Total Liabilities and Shareholders' Equity (Deficit)		143,713,674
Restatement Adjustment [Member]
Shareholders' Equity (Deficit):
Total Shareholders' Equity (Deficit)			(87,598,435)
Restatement Adjustment [Member] \| Revenue Recognition [Member]
Current Assets:
Contract assets		(95,744,625)
Total Current Assets		(95,744,625)
Total Assets		(95,744,625)
Current Liabilities:
Contract liabilities		1,664,079
Loss reserve		3,446,952
Total Current Liabilities		5,111,031
Total Liabilities		5,111,031
Shareholders' Equity (Deficit):
Retained earnings (accumulated deficit)		(100,855,656)
Total Shareholders' Equity (Deficit)		(100,855,656)	(86,621,280)
Total Liabilities and Shareholders' Equity (Deficit)		(95,744,625)
Restatement Adjustment [Member] \| Other [Member]
Current Assets:
Accounts receivable, net		99,242
Inventory		(350,386)
Total Current Assets		(251,144)
Total Assets		(251,144)
Shareholders' Equity (Deficit):
Retained earnings (accumulated deficit)		(251,144)
Total Shareholders' Equity (Deficit)		(251,144)	(280,143)
Total Liabilities and Shareholders' Equity (Deficit)		(251,144)
Restatement Adjustment [Member] \| Income Taxes [Member]
Current Assets:
Refundable income taxes		(97)
Total Current Assets		(97)
Refundable income taxes		(97)
Deferred income taxes		(279,318)
Total Assets		(279,512)
Current Liabilities:
Income taxes payable		(1,008)
Total Current Liabilities		(1,008)
Deferred income taxes		(4,028,553)
Total Liabilities		(4,029,561)
Shareholders' Equity (Deficit):
Retained earnings (accumulated deficit)		3,750,049
Total Shareholders' Equity (Deficit)		3,750,049	$ (697,012)
Total Liabilities and Shareholders' Equity (Deficit)		$ (279,512)

RESTATEMENT OF PREVIOUSLY ISS_5

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Shareholders' equity (deficit)	$ (7,740,240)	$ (3,933,405)	$ (13,285,102)
Previously Reported [Member]
Shareholders' equity (deficit)		93,423,346	74,313,333
Restatement Adjustment [Member]
Shareholders' equity (deficit)			(87,598,435)
Restatement Adjustment [Member] \| Revenue Recognition [Member]
Shareholders' equity (deficit)		(100,855,656)	(86,621,280)
Restatement Adjustment [Member] \| Other [Member]
Shareholders' equity (deficit)		(251,144)	(280,143)
Restatement Adjustment [Member] \| Income Taxes [Member]
Shareholders' equity (deficit)		3,750,049	(697,012)
Common Stock [Member]
Shareholders' equity (deficit)	11,819	11,718	8,864
Common Stock [Member] \| Previously Reported [Member]
Shareholders' equity (deficit)			8,864
Additional Paid-in Capital [Member]
Shareholders' equity (deficit)	71,294,629	70,651,413	53,770,617
Additional Paid-in Capital [Member] \| Previously Reported [Member]
Shareholders' equity (deficit)			53,770,617
Retained Earnings (Accumulated Deficit) [Member]
Shareholders' equity (deficit)	$ (79,046,688)	$ (74,596,536)	(67,049,783)
Retained Earnings (Accumulated Deficit) [Member] \| Previously Reported [Member]
Shareholders' equity (deficit)			20,548,652
Retained Earnings (Accumulated Deficit) [Member] \| Restatement Adjustment [Member]
Shareholders' equity (deficit)			(87,598,435)
Retained Earnings (Accumulated Deficit) [Member] \| Restatement Adjustment [Member] \| Revenue Recognition [Member]
Shareholders' equity (deficit)			(86,621,280)
Retained Earnings (Accumulated Deficit) [Member] \| Restatement Adjustment [Member] \| Other [Member]
Shareholders' equity (deficit)			(280,143)
Retained Earnings (Accumulated Deficit) [Member] \| Restatement Adjustment [Member] \| Income Taxes [Member]
Shareholders' equity (deficit)			(697,012)
Accumulated Other Comprehensive Loss [Member]
Shareholders' equity (deficit)			(14,800)
Accumulated Other Comprehensive Loss [Member] \| Previously Reported [Member]
Shareholders' equity (deficit)			$ (14,800)

RESTATEMENT OF PREVIOUSLY ISS_6

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (4,450,152)	$ (7,546,753)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	1,124,063	710,197
Amortization of debt issuance cost	95,507	95,506
Deferred rent	(112,048)	(70,764)
Stock-based compensation expense	730,564	671,620
Common stock issues as employee compensation	32,324	45,913
Adjustment for maturity of interest rate swap		14,800
Bad debt expense		25,758
Changes in operating assets and liabilities, net of effects of acquisition:
Increase in accounts receivable	1,807,802	(1,846,508)
(Increase) decrease in contract assets	2,308,059	10,454,686
(Increase) decrease in inventory	227,336	292,766
(Increase) decrease in prepaid expenses and other current assets	1,202,189	(22,255)
Increase in refundable income taxes	394,902
Decrease in accounts payable and accrued expenses	(678,380)	(7,926,795)
Increase in contract liabilities	(1,968,872)	2,430,922
Increase (decrease) in loss reserve	(1,012,597)	(14,396)
Decrease in other liabilities		(5,175)
Increase in income taxes payable	(112,777)	4,665
Net cash used in operating activities	(377,982)	(2,685,813)
Cash flows from investing activities:
Purchase of property and equipment	(436,010)	(559,037)
Purchase of WMI		(5,952,000)
Net cash used in investing activities	(436,010)	(6,511,037)
Cash flows from financing activities:
Net proceeds from sale of common stock		16,166,117
Payment of line of credit	(1,300,000)	(6,500,000)
Proceeds from line of credit	4,000,000	7,700,000
Payment of long-term debt	(2,436,786)	(3,314,789)
Debt issuance costs	(25,000)	(157,213)
Net cash provided by financing activities	118,643	13,894,115
Net increase in cash and restricted cash	(695,349)	4,697,265
Cash and restricted cash at beginning of year	6,128,142	1,430,877
Cash and restricted cash at end of year	5,432,793	6,128,142
Supplemental schedule of noncash investing and financing activities:
Equipment acquired under capital lease	399,800	649,410
Supplemental schedule of cash flow information:
Cash paid during the year for interest	2,066,174	2,134,574
Cash paid for income taxes		10,947
Previously Reported [Member]
Cash flows from operating activities:
Net income (loss)		2,211,563
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		710,197
Amortization of debt issuance cost		95,942
Deferred rent		(70,764)
Stock-based compensation expense		671,620
Common stock issues as employee compensation		45,913
Deferred income taxes		5,337,053
Adjustment for maturity of interest rate swap		20,600
Bad debt expense		125,000
Changes in operating assets and liabilities, net of effects of acquisition:
Increase in accounts receivable		(1,796,225)
(Increase) decrease in contract assets		(2,174,941)
(Increase) decrease in inventory		(57,272)
(Increase) decrease in prepaid expenses and other current assets		5,702
Increase in refundable income taxes		(870,000)
Decrease in accounts payable and accrued expenses		(7,696,024)
Increase in contract liabilities		866,968
Increase (decrease) in loss reserve		44,933
Decrease in other liabilities		(10,976)
Increase in income taxes payable		5,673
Net cash used in operating activities		(2,535,038)
Cash flows from investing activities:
Purchase of property and equipment		(559,037)
Purchase of WMI		(6,050,906)
Net cash used in investing activities		(6,609,943)
Cash flows from financing activities:
Net proceeds from sale of common stock		16,166,117
Payment of line of credit		(6,500,000)
Proceeds from line of credit		7,700,000
Payment of long-term debt		(3,314,789)
Debt issuance costs		(209,082)
Net cash provided by financing activities		13,842,246
Net increase in cash and restricted cash		4,697,265
Cash and restricted cash at beginning of year	$ 6,128,142	1,430,877
Cash and restricted cash at end of year		6,128,142
Supplemental schedule of noncash investing and financing activities:
Equipment acquired under capital lease		649,410
Supplemental schedule of cash flow information:
Cash paid during the year for interest		2,134,574
Cash paid for income taxes		10,947
Restatement Adjustment [Member]
Cash flows from operating activities:
Net income (loss)		(9,758,316)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of debt issuance cost		(436)
Deferred income taxes		(5,337,053)
Adjustment for maturity of interest rate swap		(5,800)
Bad debt expense		(99,242)
Changes in operating assets and liabilities, net of effects of acquisition:
Increase in accounts receivable		(50,283)
(Increase) decrease in contract assets		12,629,627
(Increase) decrease in inventory		350,038
(Increase) decrease in prepaid expenses and other current assets		(27,957)
Increase in refundable income taxes		870,000
Decrease in accounts payable and accrued expenses		(230,771)
Increase in contract liabilities		1,563,954
Increase (decrease) in loss reserve		(59,329)
Decrease in other liabilities		5,801
Increase in income taxes payable		(1,008)
Net cash used in operating activities		(150,775)
Cash flows from investing activities:
Purchase of WMI		98,906
Net cash used in investing activities		98,906
Cash flows from financing activities:
Debt issuance costs		51,869
Net cash provided by financing activities		$ 51,869

RESTATEMENT OF PREVIOUSLY ISS_7

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