Segment Reporting

9 Months Ended

Sep. 30, 2021

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 its operating subsidiaries, the Company reports the results of its corporate division as an independent segment.

The accounting policies of each of the segments are the same as those described in the Summary of Significant Accounting Policies. Intersegment transfers are recorded at the transferor’s cost, and there is no intercompany profit or loss on intersegment transfers. Management evaluates performance based on revenue, gross profit contribution and assets employed.

Financial information about the Company’s reporting segments for the three and nine months ended September 30, 2021 and 2020 are as follows:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2021			2020			2021			2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
COMPLEX MACHINING
Net Sales	$	13,043,000		$	12,423,000		$	38,992,000		$	31,795,000
Gross Profit		2,022,000			1,735,000			5,966,000			4,584,000
Income before benefit from income taxes		1,420,000			912,000			3,973,000			2,072,000
Assets		49,275,000			52,963,000			49,275,000			52,963,000
TURBINE ENGINE COMPONENTS
Net Sales		1,311,000			1,239,000			4,527,000			3,808,000
Gross (loss) Profit		(8,000	)		(79,000	)		448,000			(133,000	)
Loss before benefit from income taxes		(119,000	)		(251,000	)		(20,000	)		(594,000	)
Assets		3,443,000			3,941,000			3,443,000			3,941,000
CORPORATE
Net Sales		-			-			-			-
Gross Profit		-			-			-			-
Loss before benefit from income taxes		(1,367,000	)		(1,138,000	)		(3,932,000	)		(3,895,000	)
Assets		803,000			1,860,000			803,000			1,860,000
CONSOLIDATED
Net Sales		14,354,000			13,662,000			43,519,000			35,603,000
Gross Profit		2,014,000			1,656,000			6,414,000			4,451,000
(Loss) Income before benefit from income taxes		(66,000	)		(477,000	)		21,000			(2,417,000	)
Benefit from Income Taxes		-			-			-			(1,414,000	)
Net (Loss) Income		(66,000	)		(477,000	)		21,000			(1,003,000	)
Assets	$	53,521,000		$	58,764,000		$	53,521,000		$	58,764,000