Segment Reporting

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 10. SEGMENT REPORTING

In accordance with FASB ASC 280, "Segment Reporting" ("ASC 280"), the Company discloses financial and descriptive information about its reportable operating segments. Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company follows ASC 280, which establishes standards for reporting information about operating segments in annual and interim financial statements, and requires that companies report financial and descriptive information about their reportable segments based on a management approach. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers.

The Company currently divides its operations into two operating segments: Complex Machining which consists of AIM and NTW and Turbine Engine Components which consists of Sterling. Along with the Company's operating subsidiaries, the Company reports the results of their its corporate division as an independent segment.

In March 2018, the Company announced its intent to divest WMI Group and related operations which divestiture was completed in December 2018 enabling us to focus on complex, machined products for aircraft landing gear, flight critical / flight safety equipment and jet turbine applications. Although WMI Group and the related operations had been classified as a discontinued operation, the Company continued to operate these businesses until the sale closed on December 20, 2018. In November 2018, the Company's EPC subsidiary received a notice of debarment from bidding on or fulfilling future government contracts. The existing contracts that had already been awarded have been completed and the operations of the entity were closed on March 31, 2019. For reporting purposes, WMI Group and EPC and ECC have been classified as discontinued operations for the three and six months ending June 30, 2019 and 2018.

The accounting policies of each of the segments are the same as those described in the Summary of Significant Accounting Policies. The Company evaluates performance based on revenue, gross profit contribution and assets employed. Corporate level operating costs are allocated to segments. These costs include corporate costs such as legal, audit, tax and other professional fees including those related to being a public company.

Financial information about the Company's operating segments for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
COMPLEX MACHINING
Net Sales	$	11,701,000		$	9,705,000		$	24,119,000		$	20,332,000
Gross Profit		2,095,000			1,469,000			4,308,000			3,492,000
Income from continuing operations		1,351,000			657,000			2,794,000			773,000
Assets		47,176,000			44,077,000			47,176,000			44,077,000
TURBINE ENGINE COMPONENTS
Net Sales		1,667,000			1,268,000			3,127,000			2,550,000
Gross Profit		96,000			55,000			157,000			7,000
Loss from continuing operations		(111,000	)		(115,000	)		(281,000	)		(572,000	)
Assets		5,575,000			5,761,000			5,575,000			5,761,000
CORPORATE
Net Sales		—			—			—			—
Gross Profit		—			—			—			—
Loss from continuing operations		(1,975,000	)		(1,980,000	)		(4,243,000	)		(2,898,000	)
Assets		568,000			288,000			568,000			288,000
CONSOLIDATED
Net Sales		13,368,000			10,973,000			27,246,000			22,882,000
Gross Profit		2,191,000			1,524,000			4,465,000			3,499,000
Net Loss from continuing operations		(735,000	)		(1,438,000	)		(1,730,000	)		(2,697,000	)
Income from Discontinued Operations, net of income tax		—			1,623,000			72,000			1,414,000
Net (Loss) Income		(735,000	)		185,000			(1,658,000	)		(1,283,000	)
Assets	$	53,319,000		$	50,126,000		$	53,319,000		$	50,126,000