Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 17. 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.

Historically the Company has operated its businesses and reported its results as two separate segments with AIM and NTW comprising the Complex Machining segment (“CMS”) and SEC as the Turbine & Engine Component segment (“TEC”). Our CMS segment specializes in flight critical components including flight controls and landing gear. The TEC segment focuses on manufacturing components for jet engines. Along with its operating subsidiaries, the Company reports the results of our corporate division as an independent segment.

In recent years the Company integrated and consolidated the business of AIM and NTW into one facility on Long Island and the operations of our CMS and TEC segments have become increasingly integrated. The Company also made significant capital expenditures and all of our operations now share the same manufacturing facilities and use most, if not all, of the same sales and marketing functions. The Company made these changes to take advantage of the long-term growth opportunities we see in the A&D market. In early fiscal 2022, the Company further changed our management approach and will now make decisions about resources to be allocated and assessing performance based on one integrated business rather than two reporting segments. As such, effective with the first quarter ending March 31, 2022, the Company will present its operations as one reportable operating segment.

The accounting policies of each of the segments are the same as those described in Note 3 – Summary of Significant Accounting Policies. Intersegment transfers are recorded at the transferors’ cost, and there is no intercompany profit or loss on intersegment transfers. We evaluate performance based on revenue, gross profit contribution and assets employed.

Financial information about the Company’s reporting segments for the years ended December 31, 2021 and 2020 are as follows:

	Year Ended December 31,
	2021			2020
COMPLEX MACHINING
Net Sales	$	52,921,000		$	44,659,000
Gross Profit		9,780,000			6,493,000
Income before benefit from income taxes		7,146,000			4,965,000
Assets		49,691,000			51,368,000
TURBINE ENGINE COMPONENTS
Net Sales		6,018,000			5,438,000
Gross Profit		473,000			19,000
Loss before benefit from income taxes		(229,000	)		(31,000	)
Assets		3,275,000			3,899,000
CORPORATE
Net Sales		-			-
Gross Profit		-			-
Loss before benefit from income taxes		(5,290,000	)		(5,020,000	)
Assets		459,000			2,510,000
CONSOLIDATED
Net Sales		58,939,000			50,097,000
Gross Profit		10,253,000			6,512,000
Income (Loss) before benefit from income taxes		1,627,000			(86,000	)
Benefit from Income Taxes		-			(1,412,000	)
Loss from Discontinued Operations, net of taxes		-			(230,000	)
Net Income		1,627,000			1,096,000
Assets	$	53,425,000		$	57,777,000