10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from Not Applicable to Not Applicable

Commission file number: 000-000147

CRAWFORD UNITED CORPORATION 

(Exact name of registrant as specified in its charter)

Ohio	34-0288470
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10514 Dupont Avenue, Suite 200, Cleveland, Ohio	44108
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number (216) 243-2614

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act: None.

As of July 21, 2021, 2,677,058 Class A Common Shares and 731,848 Class B Common Shares were outstanding.

1

PART I

ITEM 1. FINANCIAL STATEMENTS

CRAWFORD UNITED CORPORATION

CONSOLIDATED BALANCE SHEET

	(Unaudited)
	June 30, 2021		December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,437,566	$	6,194,276
Accounts receivable less allowance for doubtful accounts		17,769,648		12,021,692
Contract assets		2,112,091		3,735,557
Inventories-less allowance for obsolete inventory		14,581,588		11,030,960
Investments		1,479,259		1,534,400
Prepaid expenses and other current assets		1,153,091		657,496
Total Current Assets		40,533,243		35,174,381
Property, plant and equipment, net		15,361,850		11,290,783
Operating right of use asset, net		8,284,495		8,856,820
OTHER ASSETS:
Goodwill		14,183,954		11,505,852
Intangibles, net of accumulated amortization		9,294,360		7,558,309
Other non-current assets		97,617		106,638
Total Non-Current Other Assets		23,575,931		19,170,799
Total Assets	$	87,755,519	$	74,492,783

See accompanying notes to consolidated financial statements

2

CRAWFORD UNITED CORPORATION

CONSOLIDATED BALANCE SHEET

	(Unaudited)
	June 30, 2021			December 31, 2020
LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES:
Notes payable – current		2,925,607			2,782,479
Bank debt – current		1,333,333			1,333,333
Leases payable – current		1,149,104			1,136,300
Accounts payable		12,009,800			9,230,032
Unearned revenue		1,496,361			820,002
Contingent liability - current		750,000			-
Accrued expenses		2,133,889			2,242,924
Total Current Liabilities		21,798,094			17,545,070
LONG-TERM LIABILITIES:
Notes payable – long-term		5,754,221			5,455,717
Bank debt – long-term		16,305,142			12,174,428
PPP loans		-			1,453,837
Leases payable – long-term		7,367,122			7,901,357
Deferred income taxes		2,429,828			2,429,828
Contingent liability – long-term		750,000			-
Total Long-Term Liabilities		32,606,313			29,415,167
STOCKHOLDERS' EQUITY
Class A common shares - 10,000,000 shares authorized, 2,718,787 issued at June 30, 2021 and 2,595,087 issued at December 31, 2020		5,365,581			3,896,705
Class B common shares - 2,500,000 shares authorized, 914,283 shares issued at June 30, 2021 and 954,283 at December 31, 2020		1,465,522			1,465,522
Contributed capital		1,741,901			1,741,901
Treasury shares		(1,979,085	)		(1,938,052	)
Class A common shares – 41,729 shares held at June 30, 2021 and 39,467 shares held at December 31, 2020
Class B common shares – 182,435 shares held at June 30, 2021 and December 31, 2020
Retained earnings		26,757,193			22,366,470
Total Stockholders' Equity		33,351,112			27,532,546
Total Liabilities and Stockholders' Equity	$	87,755,519		$	74,492,783

See accompanying notes to consolidated financial statements

3

CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021			2020
Total Sales	$	26,449,885	$	18,576,588	$	50,443,889		$	43,858,162
Cost of Sales		20,669,595		15,077,549		38,660,678			34,150,980
Gross Profit		5,780,290		3,499,039		11,783,211			9,707,182
Operating Expenses:
Selling, general and administrative expenses		3,660,493		2,968,519		7,337,954			6,038,513
Operating Income		2,119,797		530,520		4,445,257			3,668,669
Other (Income) and Expenses:
Interest charges		238,696		235,289		457,314			532,710
Other (income) expense, net		286,644		(12,394		(1,275,473	)		58,967
Total Other (Income) and Expenses		525,340		222,895		(818,159	)		591,677
Income before Provision for Income Taxes		1,594,457		307,625		5,263,416			3,076,992
Provision for Income Taxes		347,152		78,788		872,694			772,585
Net Income	$	1,247,305	$	228,837	$	4,390,722		$	2,304,407
Net Income Per Common Share - Basic	$	0.37	$	0.07	$	1.29		$	0.70
Net Income Per Common Share - Diluted	$	0.37	$	0.07	$	1.29		$	0.69
Weighted Average Shares of Common Stock Outstanding
Basic		3,408,906		3,317,665		3,400,917			3,314,573
Diluted		3,409,800		3,319,264		3,401,805			3,316,217

See accompanying notes to consolidated financial statements

4

CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Three Months Ended June 30, 2021 and 2020

	COMMON SHARES - NO PAR VALUE
	CLASS A		CLASS B		CONTRIBUTED CAPITAL		TREASURY SHARES			RETAINED EARNINGS		TOTAL
Balance at March 31, 2021	$	5,285,333	$	1,465,522	$	1,741,901	$	(1,979,085	)	$	25,509,887	$	32,023,559
Share-based compensation expense		14,333		-		-		-			-		14,333
Stock awards		65,915		-		-		-			-		65,915
Net Income		-		-		-		-			1,247,305		1,247,305
Balance at June 30, 2021	$	5,365,581	$	1,465,522	$	1,741,901	$	(1,979,085	)	$	26,757,193	$	33,351,112

	COMMON SHARES ISSUED					TREASURY SHARES				COMMON SHARES OUTSTANDING
	CLASS A		CLASS B			CLASS A		CLASS B		CLASS A		CLASS B
Balance at March 31, 2021		2,678,787		954,283			41,729		182,435		2,637,058		771,848
Share conversion		40,000		(40,000	)		-		-		40,000		(40,000	)
Balance at June 30, 2021		2,718,787		914,283			41,729		182,435		2,677,058		731,848

	COMMON SHARES - NO PAR VALUE
	CLASS A		CLASS B		CONTRIBUTED CAPITAL		TREASURY SHARES			RETAINED EARNINGS		TOTAL
Balance at March 31, 2020	$	3,636,272	$	1,465,522	$	1,741,901	$	(1,905,780	)	$	18,602,653	$	23,540,568
Share-based compensation expense		19,292		-		-		-			-		19,292
Stock awards		211,050		-		-		-			-		211,050
Repurchase of shares		-		-		-		(29,032	)		-		(29,032	)
Net Income		-		-		-		-			228,837		228,837
Balance at June 30, 2020	$	3,866,614	$	1,465,522	$	1,741,901	$	(1,934,812	)	$	18,831,490	$	23,970,715

	COMMON SHARES ISSUED				TREASURY SHARES				COMMON SHARES OUTSTANDING
	CLASS A		CLASS B		CLASS A		CLASS B		CLASS A			CLASS B
Balance at March 31, 2020		2,576,837		954,283		37,208		182,435		2,539,629			771,848
Stock awards		15,000		-		-		-		15,000			-
Repurchase of shares		-		-		1,727		-		(1,727	)		-
Balance at June 30, 2020		2,591,837		954,283		38,935		182,435		2,552,902			771,848

5

CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Six Months Ended June 30, 2021 and 2020

	COMMON SHARES - NO PAR VALUE
	CLASS A		CLASS B		CONTRIBUTED CAPITAL		TREASURY SHARES			RETAINED EARNINGS		TOTAL
Balance at December 31, 2020	$	3,896,705	$	1,465,522	$	1,741,901	$	(1,938,052	)	$	22,366,470	$	27,532,546
Share-based compensation expense		30,000		-		-		-			-		30,000
Stock awards		379,876		-		-		-			-		379,876
Issuance for acquisition		1,059,000											1,059,000
Repurchase of shares		-		-		-		(41,033	)		-		(41,033	)
Net Income		-		-		-		-			4,390,722		4,390,722
Balance at June 30, 2021	$	5,365,581	$	1,465,522	$	1,741,901	$	(1,979,085	)	$	26,757,193	$	33,351,112

	COMMON SHARES ISSUED					TREASURY SHARES				COMMON SHARES OUTSTANDING
	CLASS A		CLASS B			CLASS A		CLASS B		CLASS A			CLASS B
Balance at December 31, 2020		2,595,087		954,283			39,467		182,435		2,555,620			771,848
Stock awards		23,700		-			-		-		23,700			-
Acquisition		60,000		-					-		60,000			-
Stock conversion		40,000		(40,000	)		-		-		40,000			(40,000	)
Repurchase of shares		-		-			2,262		-		(2,262	)		-
Balance at June 30, 2021		2,718,787		914,283			41,729		182,435		2,677,058			731,848

	COMMON SHARES - NO PAR VALUE
	CLASS A		CLASS B		CONTRIBUTED CAPITAL		TREASURY SHARES			RETAINED EARNINGS		TOTAL
Balance at December 31, 2019	$	3,599,806	$	1,465,522	$	1,741,901	$	(1,905,780	)	$	16,527,083	$	21,428,532
Share-based compensation expense		55,758		-		-		-			-		55,758
Stock awards		211,050		-		-		-			-		211,050
Repurchase of shares		-		-		-		(29,032	)		-		(29,032	)
Net Income		-		-		-		-			2,304,407		2,304,407
Balance at June 30, 2020	$	3,866,614	$	1,465,522	$	1,741,901	$	(1,934,812	)	$	18,831,490	$	23,970,715

	COMMON SHARES ISSUED				TREASURY SHARES				COMMON SHARES OUTSTANDING
	CLASS A		CLASS B		CLASS A		CLASS B		CLASS A			CLASS B
Balance at December 31, 2019		2,576,837		954,283		37,208		182,435		2,539,629			771,848
Stock awards		15,000		-		-		-		15,000			-
Repurchase of shares		-		-		1,727		-		(1,727	)		-
Balance at June 30, 2020		2,591,837		954,283		38,935		182,435		2,552,902			771,848

6

CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited)

	Six Months Ended June 30,
	2021			2020
Cash Flows from Operating Activities
Net Income	$	4,390,722		$	2,304,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,518,494			1,237,997
Unrealized gain on investments in equity securities		(67,928	)		-
Forgiveness of PPP loan		(1,453,837	)		-
Non-cash share-based compensation expense		409,876			266,808
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable		(3,186,784	)		2,250,667
Decrease (Increase) in inventory		(1,781,567	)		(460,092	)
Decrease (Increase) in contract assets		1,623,466			(2,305,374	)
Decrease (Increase) in prepaid expenses & other assets		(205,280	)		57,510
Increase (Decrease) in accounts payable		1,462,832			2,427,507
Increase (Decrease) in accrued expenses		(533,593	)		1,281,168
Increase (Decrease) in unearned revenue		676,359			(1,276,516	)
Total adjustments		(1,537,962	)		3,479,675
Net Cash Provided by Operating Activities	$	2,852,760		$	5,784,082
Cash Flows from Investing Activities
Cash paid for acquisition		(7,089,381	)		(9,400,000	)
Sale of equity securities		123,069			-
Capital expenditures		(1,418,663	)		(193,059	)
Net Cash (Used in) Investing Activities	$	(8,384,975	)	$	(9,593,059	)
Cash Flows from Financing Activities
Payments on notes		(1,287,456	)		(808,850	)
Borrowings on notes		-			1,453,837
Payments on bank debt		(3,630,634	)		(3,427,080	)
Borrowings on bank debt		7,734,627			11,315,041
Share repurchase		(41,033	)		(29,032	)
Net Cash Provided by Financing Activities	$	2,775,504		$	8,503,916
Net Increase (decrease) in cash and cash equivalents		(2,756,710	)		4,694,939
Cash and cash equivalents at beginning of period		6,194,276			2,232,499
Cash and cash equivalents at end of period	$	3,437,566		$	6,927,438
Supplemental disclosures of cash flow information
Interest paid	$	362,353		$	477,332
Supplemental disclosures of noncash financing activity
Forgiveness of PPP loan	$	1,453,837		$	-
Supplemental disclosures of noncash investing activity
Issuance of Class A common shares in business acquisitions	$	1,059,000		$	-

See accompanying notes to consolidated financial statements

7

CRAWFORD UNITED CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
June 30, 2021

1.  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the “Company”). Significant intercompany transactions and balances have been eliminated in the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ended December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 

During the six-month period ended June 30, 2021, there have been no changes to our significant accounting policies.

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

New Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for smaller reporting companies beginning after December 15, 2022. 

Fair Value of Financial Instruments

Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

Fair Value Measurements

As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

* Level 1: Quoted market prices in active markets for identical assets or liabilities.

* Level 2: Inputs to the valuation methodology include: * Quoted prices for similar assets or liabilities in active markets;

* Quoted prices for identical assets or similar assets or liabilities in inactive markets;

* Inputs other than quoted prices that are observable for the asset or liability;

* Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

* Level 3: Unobservable inputs that are not corroborated by market data.

8

 

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.

3.  ACCOUNTS RECEIVABLE 

The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. The reserve for doubtful accounts was $17,759 and $19,973 at June 30, 2021 and December 31, 2020, respectively.

4.  INVENTORY

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value and consists of:

	June 30, 2021		December 31, 2020
Raw materials and component parts	$	3,994,065	$	3,897,133
Work-in-process		4,445,012		3,449,252
Finished products		6,523,181		3,999,920
Total inventory	$	14,962,258	$	11,346,305
Less: inventory reserves		380,670		315,345
Net inventory	$	14,581,588	$	11,030,960

5. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

For the identified reporting units, a Step 1 impairment test was performed as of December 31, 2020 using an income approach based on management’s determination of the prospective financial information, with consideration given to the existing uncertainty in the global economy and aerospace and defense industry, particularly the commercial sector. The results of this test indicated the fair value exceeded carrying value for all reporting units tested. As a result of the impairment testing performed as of December 31, 2020, no indefinite-lived intangible assets or goodwill was determined to be impaired. Management updated their assessment during the second quarter of fiscal 2021 and validated the assumptions used in the analyses performed as of December 31, 2020 and determined that the resulting conclusions remained appropriate as of June 30, 2021.

Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is not amortized but is reviewed on an annual basis for impairment. Amortization of intangibles is being amortized on a straight-line basis over period ranging from one year to 15 years. Intangible assets are as follows:

	June 30, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,738,640		2,271,691
Intangible assets, net	$	9,294,360	$	7,558,309

Amortization of intangibles assets was: $261,025 and $179,340 for the three months ended June 30, 2021 and 2020, respectively, and $466,949 and $358,682 for the six months ended June 30, 2021 and 2020, respectively. 

9

 

6.  PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows:

	June 30, 2021		December 31, 2020
Land	$	228,872	$	228,872
Buildings and improvements		2,740,383		2,061,887
Machinery & equipment		20,537,353		14,329,462
Total property, plant & equipment		23,506,608		16,620,221
Less: accumulated depreciation		8,144,758		5,329,438
Property plant & equipment, net	$	15,361,850	$	11,290,783

Depreciation expense was $661,628 and $425,769 for the three months ended June 30, 2021 and 2020, respectively, and $1,170,565 and $860,453 for the six months ended June 30, 2021 and 2020, respectively.

7.  INVESTMENTS IN EQUITY SECURITIES

Investments in equity securities are summarized in the table below:

	June 30, 2021		December 31, 2020
Fair value of equity securities	$	1,479,259	$	1,534,400
Cost basis		826,224		949,293
Unrealized gain (loss) on equity securities	$	653,035	$	585,107

Unrealized gains were $67,928 in the first six months of 2021 compared to $0 in the same period of last year. Unrealized losses were $0 in the first six months of 2021 compared to $0 in the same period of last year. Realized gains were $152,748 in the first six months of 2021 compared to $0 in the same period of last year. Realized losses were $0 in the first six months of 2021 compared to $0 in the same period of last year.

Investments by fair value level in the hierarchy as of June 30, 2021 and December 31, 2020 are as follows:

	Quoted Market Prices in Attractive Markets (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Unobservable Inputs that are not Corroborated by Market Data (Level 3)		Total Carrying Value in the Balance Sheet
Common stock as of June 30, 2021	$	1,479,259	$	-	$	-	$	1,479,259
Common stock as of December 31, 2020	$	1,534,400	$	-	$	-	$	1,534,400

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8.  BANK DEBT 

The Company entered into a Credit Agreement on June 1, 2017 with JPMorgan Chase Bank, N.A. as lender, which was amended in connection with funding the acquisition of CAD Enterprises, Inc. (“CAD”) on July 5, 2018 and further amended on September 30, 2019, December 30, 2019 and March 2, 2021 (as amended, the “Credit Agreement”). The March 2, 2021 amendment increased the maximum borrowing amount under the revolving credit facility from $20,000,000 to $30,000,000. As amended, the Credit Agreement is comprised of a revolving facility in the amount of $30,000,000 and a term A loan in the amount of $6,000,000. Outstanding borrowings on the term A loan are payable in consecutive monthly installments, which currently amount to $111,111 per month.

The revolving facility under the Credit Agreement includes a $3 million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) (0.25%) for Prime Rate loans and (ii) 1.75% for LIBOR loans. The maturity date of the revolving facility is June 1, 2024. Interest for borrowings under the term A loan accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) 0.25% for Prime Rate loans and (ii) 2.25% for LIBOR loans. The maturity date of the term A loan is December 1, 2022. The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of 0.25% per annum payable quarterly. The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.

Bank debt balances consist of the following:

	June 30, 2021		December 31, 2020
Term debt	$	2,111,111	$	2,777,778
Revolving debt		15,687,371		10,825,797
Total Bank debt		17,798,482		13,603,575
Less: current portion		1,333,333		1,333,333
Non-current bank debt		16,465,149		12,270,242
Less: unamortized debt costs		160,007		95,814
Net non-current bank debt	$	16,305,142	$	12,174,428

The Company had $14.3 million and $9.2 million available to borrow on the revolving credit facility at June 30, 2021 and December 31, 2020, respectively.   

9.     NOTES PAYABLE

Notes Payable – Related Party

The Company had two separate outstanding promissory notes with First Francis Company Inc. (“First Francis”), which were originally issued in July 2016 in connection with the acquisition of Federal Hose Manufacturing (“Federal Hose”) and which were amended in July 2018 in connection with acquisition of CAD. The first promissory note was issued with original principal in the amount of $2,000,000, and the second was issued with original principal in the amount of $2,768,662. The promissory notes each had an interest rate of 6.25% per annum, which was increased from 4.0% per annum as part of the July 2018 amendments to the Credit Agreement.

In connection with the Komtek Forge acquisition, on January 15, 2021, the Company refinanced the outstanding First Francis promissory notes in the aggregate amount of $2,077,384, including accrued interest payable through the refinance date and combined this amount with an existing First Francis promissory note carried by Komtek Forge in the amount of $1,702,400 into one note for a combined $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021. The interest rate on the refinanced loan remained at 6.25% per annum. First Francis is owned by Edward Crawford and Matthew Crawford, both of whom serve on the Board of Directors of the Company.

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Notes Payable – Seller Note

Effective July 1, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of CAD.  Upon the closing of the transaction, the CAD shares were transferred and assigned to the Company in consideration of the payment by the Company of an aggregate purchase price of $21 million, $12 million of which was payable in cash at closing, with the remainder paid in the form of a subordinated promissory note issued by the Company in favor of a Seller (the “Seller Note”), which is subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Share Purchase Agreement entered into in connection with the acquisition (the “Share Purchase Agreement”).   The Seller Note bears interest at a rate of four percent (4%) per annum and is payable in full no later than June 30, 2023 (the “Maturity Date”).  The Maturity Date, with respect to any then-outstanding portion of the original principal amount which is subject to an indemnification claim by the Company (asserted in accordance with the terms of the Share Purchase Agreement) pending as of the date thereof, will be automatically extended until such time as any claim relating to such disputed amount is no longer pending, pursuant to the terms of the Seller Note and subject to additional conditions set forth therein and in the Share Purchase Agreement. The Company is not permitted to prepay any amounts due and owing under the Seller Note.  Payment of the Seller Note is secured by a second-priority security interest in the assets of CAD.   Interest accrued on the original principal amount is due and payable in arrears on the first day of each calendar quarter up to and including June 30, 2023.  The Company is required to make quarterly principal payments, the amount of which is calculated based on a four (4) year amortization schedule, on the last day of each calendar quarter up to and including the Maturity Date. The holders of the Seller Note and the Company agreed to defer the quarterly principal payment due June 30, 2020 until June 30, 2023; quarterly interest was paid on the Seller Note.

Paycheck Protection Program Notes

The Company applied for and was approved for a loan in the amount of $3,679,383 (the “PPP Loan”) on April 10, 2020 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). On May 5, 2020, the Company instructed JPMorgan to repay in full the Promissory Note pursuant to the Paycheck Protection Program under the CARES Act. On June 4, 2020, Federal Hose and CAD each entered into unsecured loans with First Federal Savings and Loan Association of Lakewood, pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), in the amounts of $253,071 and $1,200,766, respectively (the “PPP Loans”). The Company received notice of forgiveness from First Federal Savings and Loan Association of Lakewood of 100% of the CAD and Federal Hose PPP loans on January 22, 2021 and January 29, 2021 respectively.

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Notes payable consists of the following: 

	June 30, 2021		December 31, 2020
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.	$	-	$	1,108,829
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.		-		941,867
In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021.		3,617,328		-
In connection with the CARES Act, Federal Hose entered into a promissory note on June 4, 2020 for a $253,071 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 29, 2021.		-		253,071
In connection with the CARES Act, CAD entered into a promissory note on June 4, 2020 for a $1,200,766 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 22, 2021.		-		1,200,766
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the Loudermilks, payable in quarterly installments beginning September 30, 2018.		5,062,500		6,187,500
Total notes payable		8,679,828		9,692,033
Less current portion		2,925,607		2,782,479
Notes payable – non-current portion	$	5,754,221	$	6,909,554

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10. LEASES

The Company has operating and finance leases for facilities, vehicles and equipment. These leases have remaining terms of 2 years to 15 years, some of which include options to extend the leases for up to 10 years.

Supplemental balance sheet information related to leases:

	June 30, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets, net	$	8,284,495		$	8,856,820
Other current liabilities		1,149,104			1,136,300
Operating lease liabilities		7,367,122			7,901,357
Total operating lease liabilities	$	8,516,226		$	9,037,657
Weighted Average Remaining Lease Term
Operating Leases (in years)		9.7			9.0
Weighted Average Discount Rate
Operating Leases		5.0	%		5.0	%

11. EARNINGS PER COMMON SHARE 

The following table sets forth the computation of basic and diluted earnings per share.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Earnings Per Share - Basic
Net Income	$	1,247,305	$	228,837	$	4,390,722	$	2,304,407
Weighted average shares of common stock outstanding - Basic		3,408,906		3,317,665		3,400,917		3,314,573
Earnings Per Share - Basic	$	0.37	$	0.07	$	1.29	$	0.70
Earnings Per Share - Diluted
Weighted average shares of common stock outstanding - Basic		3,408,906		3,317,665		3,400,917		3,314,573
Warrants, Options and Convertible Notes		894		1,599		888		1,644
Weighted average shares of common stock -Diluted		3,409,800		3,319,264		3,401,805		3,316,217
Earnings Per Share - Diluted	$	0.37	$	0.07	$	1.29	$	0.69

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12. ACQUISITIONS

Effective January 15, 2021, the Company completed the acquisition of all of the issued and outstanding membership interests of KT Acquisition LLC (dba Komtek Forge, “Komtek”), a Massachusetts limited liability company and supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics. alternative energy, petrochemical, and defense industries, pursuant to a Membership Interest Purchase Agreement entered into as of January 15, 2021. The Company acquired Komtek in consideration of the payment by the Company of an aggregate purchase price of $3.6 million, subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Membership Interest Purchase Agreement, which was comprised of cash, the issuance of 60,000 Class A common shares of the Company and the assumption of approximately $1,702,000 of specified liabilities of the seller.

Cash	$	75,701
Accounts Receivable		1,502,713
Inventory		1,595,859
Fixed Assets		434,197
Prepaid and Other Assets		280,258
Goodwill		832,306
Total Assets Acquired	$	4,721,034
Accounts Payable	$	843,817
Accrued Expense		223,909
Assumed debt		1,753,757
Total Liabilities Assumed	$	2,821,483
Equity Issuance	$	1,059,000
Net Assets Acquired	$	840,551
Acquisition transaction costs incurred were:	$	145,900

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Effective March 1, 2021, MTA Acquisition Company, LLC, a Delaware limited liability company (“MTA”) and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the membership interests of Global-Tek-Manufacturing LLC, a Puerto Rico limited liability company and specialist in machining parts from wrought, rounds, castings or extrusions and providing in house anodizing and other finishing and assembly operations and substantially all of the assets of Machining Technology L.L.C., a Colorado limited liability company with CNC machining capability, pursuant to a Membership Interest and Asset Purchase Agreement entered into March 2, 2021 and effective as of March 1, 2021. The stock and assets were transferred and assigned to MTA in exchange for approximately $4.9 million in cash and the repayment of remaining outstanding indebtedness and transaction costs totaling approximately $1.6 million, subject to customary post-closing adjustments. The Purchase Agreement also includes a post-closing “earnout” that provides for up to an aggregate of $1.5 million in additional consideration to the certain sellers (up to $750,000 per year) if specified performance targets are met in the two years following closing. If earned, the additional consideration is payable in cash or, at the election of each such seller, in Company common shares up to a maximum aggregate amount of 61,475 shares.

Accounts Receivable	$	1,058,459
Inventory		173,202
Fixed Assets		3,426,091
Prepaid and Other Assets		1,036
Intangibles Assets		2,203,000
Goodwill		1,813,598
Total Assets Acquired	$	8,675,386
Accounts Payable	$	473,119
Accrued Payroll and Other Expense		202,780
Contingent Liability		1,500,000
Total Liabilities Assumed	$	2,175,899
Net Assets Acquired	$	6,499,487
Acquisition transaction costs incurred were:	$	189,736

13. SEGMENT AND RELATED INFORMATION  

As of January 1, 2021, the Company elected to report operations for two business segments: (1) Commercial Air Handling Equipment, and (2) Industrial and Transportation Products. The decision to change from three to two reportable business segments was the result of a board-level discussion and was deemed appropriate given the size of the Company. The Company's management evaluates segment performance based primarily on operating income. Certain corporate costs are allocated to the segments and interest expense directly related to financing the acquisition of a business is allocated to that segment, respectively.  Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses.

Commercial Air Handling:
The Commercial Air Handling segment was added June 1, 2017, when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of 50 years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

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Industrial and Transportation Products: 

The Industrial and Transportation Products segment was added July 1, 2016, when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on July 1, 2018. CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions.  Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels.  CAD’s quality certifications include ISO 9001:2015/AS9100D, as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on January 2, 2020. MPI specialized in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective April 19, 2019, the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on January 15, 2021. Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology L.L.C. (Machining Technologies), in Longmont, Colorado on March 2, 2021. Global-Tek and Machining Technologies specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets.

Corporate and Other: 

Corporate costs not allocated to the two primary business segments are aggregated here.

Information by industry segment is set forth below: 

	Three Months Ended June 30, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	9,972,545	$	16,477,340	$	-		$	26,449,885
Gross Profit		2,030,038		3,750,252		-			5,780,290
Operating Income		845,092		1,342,966		(68,261	)		2,119,797
Pretax Income		845,092		1,121,507		(372,142	)		1,594,457
Net Income		633,818		893,184		(279,697	)		1,247,305

	Three Months Ended June 30, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products			Corporate and Other			Consolidated
Sales	$	11,848,816	$	6,727,772		$	-		$	18,576,588
Gross Profit		2,893,541		605,498			-			3,499,039
Operating Income		1,565,482		(872,867	)		(162,095	)		530,520
Pretax Income		1,565,482		(1,154,315	)		(103,542	)		307,625
Net Income		1,174,113		(870,177	)		(75,099	)		228,837

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	Six Months Ended June 30, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	18,737,644	$	31,706,245	$	-		$	50,443,889
Gross Profit		4,260,858		7,522,353		-			11,783,211
Operating Income		1,890,721		3,094,411		(539,875	)		4,445,257
Pretax Income		1,890,721		2,693,643		679,052			5,263,416
Net Income		1,418,040		2,099,368		873,314			4,390,722

	Six Months Ended June 30, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products			Corporate and Other			Consolidated
Sales	$	23,302,590	$	20,555,572		$	-		$	43,858,162
Gross Profit		5,941,342		3,765,841			-			9,707,182
Operating Income		3,185,251		541,737			(58,319	)		3,668,669
Pretax Income		3,160,286		(33,088	)		(50,206	)		3,076,992
Net Income		2,370,215		(30,679	)		(35,129	)		2,304,407

(1) Segment information for the three and six month periods ended June 30, 2021 has been restated to reflect the change in reportable segments.  

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14. UNCERTAINTIES

The coronavirus (COVID-19) pandemic had a material adverse effect on the Company’s reported results for the three month and six month periods ended June 30, 2021. The Company will continue to actively monitor the impact of the coronavirus pandemic, which is expected to negatively impact the Company’s business and results of operations for the remainder of fiscal year 2021 and possibly beyond. The extent to which the Company’s business and operations will be impacted by the pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak; new and growing outbreaks of COVID-19 or new strains of COVID-19; actions by government authorities to contain COVID-19 or treat its impact, such as reimposed public health restrictions; efforts to combat COVID-19, such as vaccine development and distribution, among other things.

15. SUBSEQUENT EVENTS

The Company purchased the operating assets of Emergency Hydraulics LLC in Ocala, Florida on July 1, 2021 for an aggregate purchase price of approximately $0.3 million. The acquired business provides hydraulic hoses, air tank assemblies and related products to manufacturers of firefighting trucks and other emergency vehicles. The acquired business is strategically important to the Company’s growing industrial hose platform and will expand its offerings and diversify its customer base in this important market segment. The acquisition is expected to add approximately $2 million in annualized revenue to Crawford United and be immediately accretive to earnings

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RESULTS OF OPERATIONS.

The following discussion is intended to assist in the understanding of the Company's financial position at June 30, 2021 and December 31, 2020, results of operations for the three month and six month periods ended June 30, 2021 and 2020, and cash flows for the three month and six month periods ended June 30, 2021 and 2020, and should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The coronavirus (COVID-19) pandemic had a material adverse effect on the Company’s reported results for the three month and six month periods ended June 30, 2021. The Company will continue to actively monitor the impact of the COVID-19 pandemic, which is expected to negatively impact the Company’s business and results of operations for the remainder of fiscal year 2021 and possibly beyond, depending upon the pace at which pandemic-related restrictions are lifted, commercial activity resumes and the economy recovers. Many of our customers are considered “essential” and have remained operational during the pandemic, although in some cases in a limited capacity. This, together with the overall economic downturn that has resulted from the pandemic, slowed demand in the first and second quarters of 2021. Nearly all of the Company’s facilities have remained operational. While there are some restrictions to the supply of materials and products and those restrictions may continue or expand, our supply chain has remained largely intact. The extent to which the Company’s business and operations will continue to be impacted by the pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the pandemic; new and growing outbreaks of COVID-19 or new strains of COVID-19; actions by government authorities to contain COVID-19 or treat its impact, such as reimposed public health restrictions; and efforts to combat COVID-19, such as vaccine distribution, among other things.

Items Affecting the Comparability of our Financial Results

The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC “Komtek”), in Worcester, Massachusetts on January 15, 2021.

The Company purchased all of the membership interests of Global-Tek Manufacturing LLC (“Global-Tek”) in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology L.L.C. (“Machining Technology”), in Longmont, Colorado on March 2, 2021.

Accordingly, in light of the timing of these transactions, the Company’s results for the three month and six month periods ended on June 30, 2021 include the added results of operations of Komtek, Global-Tek and Machining Technology in the Industrial and Transportation Products segment. Conversely, our results for the three month and six month periods ended June 30, 2020 do not include the results of operations of Komtek, Global-Tek and Machining Technology in the Industrial and Transportation Products segment.

Results of Operations – Three Months Ended June 30, 2021 and 2020

Sales for the quarter ended June 30, 2021 (“current quarter”) increased to $26.4 million, an increase of approximately $7.9 million or 42.4% from sales of $18.6 million during the same quarter of the prior year. This increase in sales was primarily attributable to a recovery in demand as COVID-19 pandemic-related restrictions loosened and commercial activity increased, in addition to the acquisitions of Komtek, Global-Tek and Machining Technology.

Cost of sales for the current quarter was $20.7 million compared to $15.1 million, an increase of $5.6 million or 37.1% from the same quarter of the prior year.  Gross profit was $5.8 million in the current quarter compared to $3.5 million, an increase of $2.3 million from the same quarter of the prior year.  The increase in cost of sales and gross profit was attributable to a recovery in demand as the COVID-19 pandemic eased, in addition to the acquisitions of Komtek, Global-Tek and Machining Technology.

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Selling, general and administrative expenses (SG&A) in the current quarter were $3.7 million, or 13.9% of sales, compared to $3.0 million, or 16.0% of sales in the second quarter of last year. Selling, general and administrative expenses increased as a percentage of sales due primarily to an additional $0.6 million of expense as a result of the acquisitions of Komtek, Global-Tek and Machining Technology.

Interest charges in the current quarter were approximately $0.2 million compared to $0.2 million in the same quarter of the prior year. Average total debt (including notes) and average interest rates for the current quarter were $27.7 million and 2.9% compared to $25.7 million and 3.4% in the same period of last year.

Other expense, net was $0.3 million in the current quarter compared to $0.1 million of other income, net in the same quarter of the prior year.  The increase in other expense, net is primarily driven by a loss of $0.2 million related to investments in marketable securities and $0.1 million of transaction costs as a result of the acquisitions of Komtek, Global-Tek and Machining Technology.

Income tax expense in the current quarter was $0.3 million compared to $0.1 million in the same quarter of the prior year. Tax expense is lower than the Company’s historical expected effective tax rate of 25% primarily because the expected tax rate for Global-Tek in Puerto Rico is lower than 25%.

Net income in the current quarter was $1.2 million or $0.37 per diluted share as compared to the net income of $0.2 million or $0.07 per diluted share for the same quarter of the prior year.  

Results of Operations – Six Months Ended June 30, 2021 and 2020

Sales for the six months ended June 30, 2021 (“current year to date”) were $50.4 million, an increase of approximately $6.6 million or 15.0% from sales of $43.9 million during the same period of the prior year. This increase in sales was primarily attributable to a recovery in demand as COVID-19 pandemic-related restrictions loosened and commercial activity increased, in addition to the acquisitions of Komtek, Global-Tek and Machining Technology.

Cost of sales for the current year to date was $38.7 million compared to $34.2 million in the same period of prior year, an increase of $4.5 million or 13.2%.  Gross profit was $11.8 million in the current year to date compared to $9.7 million in the same period of prior year, an increase of $2.1 million.  The increase in cost of sales and gross profit was attributable to a recovery in demand as the COVID-19 pandemic eased, in addition to the acquisitions of Komtek, Global-Tek and Machining Technology.

Selling, general and administrative expenses (SG&A) in the current year to date were $7.3 million, or 14.6% of sales, compared to $6.0 million, or 13.8% of sales, in the same period of the prior year. Selling, general and administrative expenses increased by $1.3 million due primarily to an additional $1.0 million of expense as a result of the acquisitions of Komtek, Global-Tek and Machining Technology.

Interest charges in the current year to date were approximately $0.5 million compared to $0.5 million in the same period of the prior year. Average total debt (including notes) and average interest rates for the current year to date were $26.9 million and 3.0%, compared to $26.2 million and 3.5% in the same period of the prior year.

Other income, net was $1.3 million in the current year to date compared to $0.1 million of other expense, net in the same period of the prior year.  The increase in other income is primarily driven by the forgiveness in full during the first quarter of 2021 of the $1.5 million in aggregate Payroll Protection Loans (“PPP Loans”) accepted by two of the Company’s subsidiaries, in accordance with the terms of the CARES Act. The forgiveness of the PPP loans is treated as income.

Income tax expense in the current year to date was $0.9 million compared to $0.8 million in the same period of the prior year. Tax expense is lower than the Company’s historical expected effective tax rate of 25% primarily because the expected tax rate for Global-Tek in Puerto Rico is lower than 25%.

Net income in the current year to date was $4.4 million or $1.29 per diluted share as compared to the net income of $2.3 million or $0.69 per diluted share for the same period of the prior year.  

Liquidity and Capital Resources

As described further in Note 11 to the Company’s consolidated financial statements, effective January 15, 2021, the Company completed the Komtek acquisition for a purchase price of $3.6 million, which included the assumption of $1.7 million of debt and the issuance of $1.1 million of Class A common shares.

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As described further in Note 11 to the Company’s consolidated financial statements, effective March 1, 2021, the Company completed the Global-Tek and Machining Technology acquisition for a purchase price of $8.0 million, subject to certain post-closing adjustments based on working capital and the achievement of future performance milestones.

The Company’s credit agreement, dated as of June 1, 2017, by and between the Company and JPMorgan Chase Bank, N.A. as lender (as amended, the “Credit Agreement”), provides for a revolving credit facility. On March 2, 2021, the Company amended its Credit Agreement to increase availability under the revolving credit facility to $30.0 million from $20.0 million. The amendment to the loan agreement provided additional flexibility to fund acquisitions, working capital and other strategic initiatives. 

Total current assets at June 30, 2021 increased to $40.5 million from $35.2 million at December 31, 2020, an increase of $5.3 million. The increase in current assets is comprised of the following: an increase of accounts receivable of $5.7 million; an increase in inventory of $3.6 million; an increase in prepaid expenses of $0.5 million; partially offset by a decrease in cash of $2.8 million; a decrease in contract assets of $1.6 million; and a decrease in investments of $0.1 million. The increases in inventory and accounts receivable were driven primarily by the recent acquisitions of Komtek, Global-Tek and Machining Technology. The Company is carrying lower cash balances due to funding the recent acquisitions of Komtek, Global-Tek and Machining Technology.

Total current liabilities at June 30, 2021 increased to $21.8 million from $17.5 million at December 31, 2020, an increase of $4.3 million.  The increase in current liabilities is comprised of the following: an increase accounts payable of $2.8 million; an increase in accrued expenses of $0.8 million; an increase in unearned revenue of $0.7 million; and an increase in contingent liabilities of $0.8 million.

Cash provided by operating activities for the six months ended June 30, 2021 was approximately $2.9 million, compared to cash provided by operating activities of $5.8 million in the same period a year ago. Cash provided by operating activities for the six month period is comprised of the following: net income of $4.4 million; cash provided by adjustments for non-cash items of $0.4 million; and cash used in working capital adjustments of $1.9 million. The primary drivers of decreased working capital during the current quarter were the increase in accounts receivable of $3.2 million and the increase of inventories of $1.8 million partially offset by the decrease in contract assets of $1.6 million and an increase in accounts payable of $1.5 million.

Cash used in investing activities for the six months ended June 30, 2021 was $8.4 million, compared to cash used in investing activities of $9.6 million in the same period a year ago. Cash used in investing activities was for the acquisitions of Komtek, Global-Tek and Machining Technology in the Industrial and Transportation Products segment and capital expenditures in the normal course of business.

22

Cash provided by financing activities was approximately $2.8 million for the six months ended June 30, 2021, compared to cash provided by financing activities of $8.5 million in the same period a year ago. Cash provided by financing activities for the current quarter was primarily related to: $7.7 million borrowings on bank debt related to the acquisitions of Komtek, Global-Tek and Machining Technology; offset by cash used for $3.6 million in payments on bank debt and $1.3 million in payments on notes.

The Company is actively managing its business to maintain cash flow and liquidity. We believe that cash and availability on our revolving credit facility to be sufficient to fund working capital needs and service principal and interest payments due related to the bank debt and notes payable. The Company had $14.3 million available to borrow on the revolving credit facility at June 30, 2021. Notwithstanding the Company's expectations, if the Company's operating results decrease as the result of pressures on the business due to, for example, the impact of the COVID-19 pandemic, currency fluctuations, regulatory issues, or the Company's failure to execute its business plans, the Company may require additional financing, or may be unable to comply with its obligations under the credit facility, and its lenders could demand repayment of any amounts outstanding under the Company’s credit facility. As the company cannot predict the duration or scope of the COVID-19 pandemic and its impact on the Company’s customers and suppliers, the negative financial impact to the Company’s results cannot be reasonably estimated, but could be material. In addition, see Note 7 of the notes to the consolidated financial statements.

Off-Balance Sheet Arrangements

From time to time, the Company enters into performance and payment bonds in the ordinary course of business. These bonds are secured by certain assets of the Company by the surety until the Company’s completion of the requirements of the commercial air handling contract. At June 30, 2021, the Company did not have any active surety bonds for which performance and payment had not been satisfied. The Company has no other off-balance sheet arrangements (as defined in Regulation S-K Item 303 paragraph (a)(4)(ii)) that have or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

The Company’s critical accounting policies are as presented in Notes to Consolidated Financial Statements and Management’s Discuss and Analysis of Financial Condition and Results of Operations in our Annual Report Form 10-K for the year ended December 31, 2020.

23

Forward-Looking Statements

The foregoing discussion includes forward-looking statements relating to the business of the Company. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements, or other statements made by the Company, are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) the Company's ability to effectively integrate acquisitions, including the acquisitions of Komtek, Global-Tek and Machining Technology, and manage the larger operations of the combined businesses

(b) the duration and scope of the COVID-19 pandemic, the resumption of operations by the Company’s customers, loosening of public health restrictions, or an reimposed restrictions or tightening of public health restrictions which could impact the demand for the Company’s products; (c) the Company’s inability to obtain needed products, components or raw materials from its suppliers; (d) actions that governments, businesses and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; (e) the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; (f) the pace of recovery when the COVID-19 pandemic subsides; (g) the Company's ability to effectively integrate acquisitions, and manage the larger operations of the combined businesses, (h) the Company's dependence upon a limited number of customers and the aerospace industry, (i) the highly competitive industry in which the Company operates, which includes several competitors with greater financial resources and larger sales organizations, (j) the Company's ability to capitalize on market opportunities in certain sectors, (k) the Company's ability to obtain cost effective financing and (l) the Company's ability to satisfy obligations under its financing arrangements, and the other risks described in “Item 1A. Risk Factors” in this Annual Report on Form 10-K and the Company’s subsequent filings with the SEC. 

ITEM 3. MARKET RISK

This item is not applicable to the Company as a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

As of June 30, 2021, an evaluation was performed, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer along with the Company's Vice President, Finance and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based upon that evaluation, the Company's management, including the Chief Executive Officer along with the Company's Chief Financial Officer, concluded that the Company's disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended ("Exchange Act") were effective as of June 30, 2021 to ensure that information required to be disclosed by the Company in reports that it files and submits under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms, and (2) is accumulated and communicated to the Company's management, including its principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. There were no changes in the Company's internal controls over financial reporting during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.

The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles. The Company's internal control over financial reporting includes policies and procedures that (1) pertain to maintaining records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the Company's receipts and expenditures are being made only in accordance with authorization of the Company's management and directors, and (3) provide reasonable assurance regarding prevention or the timely detection of unauthorized acquisition, use or disposal of the company's assets that could have a material effect on the financial statements.

24

Management, including the Company's Chief Executive Officer along with the Company's Vice President, Finance and Chief Financial Officer, does not expect that the Company's internal controls will prevent or detect all errors and all fraud. An internal control system no matter how well designed and operated can provide only reasonable, not absolute, assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, collusion of two or more people, or by management override of the control. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS. 

None.

ITEM 1A. RISK FACTORS. 

There have been no material changes from the risk factors disclosed in Part 1, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2020.

ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3 DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

25

ITEM 6. EXHIBITS

31.1	Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation
101.DEF*	Inline XBRL Extension Definition
101.LAB*	Inline XBRL Taxonomy Extension Labels
101.PRE*	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

*XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

26

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned as of the 10th day of August 2021, thereunto duly authorized.

SIGNATURE:	TITLE
/s/ Brian E. Powers	President and Chief Executive Officer
Brian E. Powers	(Principal Executive Officer)
/s/ John P. Daly	Vice President and Chief Financial Officer
John P. Daly	(Principal Accounting and Financial Officer)

27

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Brian E. Powers, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Crawford United Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:

/s/ Brian E. Powers

Brian E. Powers

President and Chief Executive Officer

August 10, 2021

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, John P. Daly, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Crawford United Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:

/s/ John P, Daly

John P. Daly

Vice President and Chief Financial Officer

August 10, 2021

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Crawford United Corporation (the "Company") on Form 10-Q for the period ending June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Brian Powers, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Brian E. Powers

Brian E. Powers

President and Chief Executive Officer

August 10, 2021

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Crawford United Corporation (the "Company") on Form 10-Q for the period ending June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John P. Daly, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John P. Daly

John P. Daly

Chief Financial Officer

August 10, 2021

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 21, 2021
Document Information [Line Items]
Entity Central Index Key	0000047307
Entity Registrant Name	CRAWFORD UNITED Corp
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	000-000147
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-0288470
Entity Address, Address Line One	10514 Dupont Avenue, Suite 200
Entity Address, City or Town	Cleveland
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44108
City Area Code	216
Local Phone Number	243-2614
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		731,848
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,677,058

XML

Consolidated Balance Sheet (Current Period Unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 3,437,566	$ 6,194,276
Accounts receivable less allowance for doubtful accounts	17,769,648	12,021,692
Contract assets	2,112,091	3,735,557
Inventories-less allowance for obsolete inventory	14,581,588	11,030,960
Investments	1,479,259	1,534,400
Prepaid expenses and other current assets	1,153,091	657,496
Total Current Assets	40,533,243	35,174,381
Property, plant and equipment, net	15,361,850	11,290,783
Operating right of use asset, net	8,284,495	8,856,820
OTHER ASSETS:
Goodwill	14,183,954	11,505,852
Intangibles, net of accumulated amortization	9,294,360	7,558,309
Other non-current assets	97,617	106,638
Total Non-Current Other Assets	23,575,931	19,170,799
Total Assets	87,755,519	74,492,783
LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES:
Notes payable – current	2,925,607	2,782,479
Bank debt – current	1,333,333	1,333,333
Leases payable – current	1,149,104	1,136,300
Accounts payable	12,009,800	9,230,032
Unearned revenue	1,496,361	820,002
Contingent liability - current	750,000	0
Accrued expenses	2,133,889	2,242,924
Total Current Liabilities	21,798,094	17,545,070
LONG-TERM LIABILITIES:
Notes payable – long-term	5,754,221	5,455,717
Bank debt – long-term	16,305,142	12,174,428
Leases payable – long-term	7,367,122	7,901,357
Deferred income taxes	2,429,828	2,429,828
Contingent liability – long-term	750,000	0
Total Long-Term Liabilities	32,606,313	29,415,167
STOCKHOLDERS' EQUITY
Contributed capital	1,741,901	1,741,901
Treasury shares	(1,979,085)	(1,938,052)
Retained earnings	26,757,193	22,366,470
Total Stockholders' Equity	33,351,112	27,532,546
Total Liabilities and Stockholders' Equity	87,755,519	74,492,783
Common Class A [Member]
STOCKHOLDERS' EQUITY
Common stock	5,365,581	3,896,705
Common Class B [Member]
STOCKHOLDERS' EQUITY
Common stock	1,465,522	1,465,522
Paycheck Protection Program CARES Act [Member]
LONG-TERM LIABILITIES:
Notes payable – long-term	$ 0	$ 1,453,837

XML

Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - shares	Jun. 30, 2021	Dec. 31, 2020
Common Class A [Member]
Class of common stock, shares authorized (in shares)	10,000,000	10,000,000
Class of common stock, shares issued (in shares)	2,718,787	2,595,087
Treasury shares, issued (in shares)	41,729	39,467
Common Class B [Member]
Class of common stock, shares authorized (in shares)	2,500,000	2,500,000
Class of common stock, shares issued (in shares)	914,283	954,283
Treasury shares, issued (in shares)	182,435	182,435

XML

Consolidated Statement of Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total sales	$ 26,449,885	$ 18,576,588	$ 50,443,889	$ 43,858,162
Cost of Sales	20,669,595	15,077,549	38,660,678	34,150,980
Gross Profit	5,780,290	3,499,039	11,783,211	9,707,182
Operating Expenses:
Selling, general and administrative expenses	3,660,493	2,968,519	7,337,954	6,038,513
Operating Income	2,119,797	530,520	4,445,257	3,668,669
Other (Income) and Expenses:
Interest charges	238,696	235,289	457,314	532,710
Other (income) expense, net	286,644	(12,394)	(1,275,473)	58,967
Total Other (Income) and Expenses	525,340	222,895	(818,159)	591,677
Income before Provision for Income Taxes	1,594,457	307,625	5,263,416	3,076,992
Provision for Income Taxes	347,152	78,788	872,694	772,585
Net Income	$ 1,247,305	$ 228,837	$ 4,390,722	$ 2,304,407
Net Income Per Common Share - Basic (in dollars per share)	$ 0.37	$ 0.07	$ 1.29	$ 0.70
Net Income Per Common Share - Diluted (in dollars per share)	$ 0.37	$ 0.07	$ 1.29	$ 0.69
Weighted Average Shares of Common Stock Outstanding
Basic (in shares)	3,408,906	3,317,665	3,400,917	3,314,573
Diluted (in shares)	3,409,800	3,319,264	3,401,805	3,316,217

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock Including Additional Paid in Capital [Member] Common Class A [Member]	Common Stock Including Additional Paid in Capital [Member] Common Class B [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member] Common Class A [Member]	Treasury Stock [Member] Common Class B [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Common Stock Outstanding [Member] Common Class A [Member]	Common Stock Outstanding [Member] Common Class B [Member]	Total
Balance at Dec. 31, 2019	$ 3,599,806	$ 1,465,522	$ 1,741,901			$ (1,905,780)	$ 16,527,083			$ 21,428,532
Share-based compensation expense	55,758	0	0			0	0			55,758
Stock awards	211,050	0	0			0	0			211,050
Net Income	$ 0	$ 0	0			0	2,304,407			2,304,407
Balance (in shares) at Dec. 31, 2019	2,576,837	954,283		37,208	182,435			2,539,629	771,848
Repurchase of shares	$ 0	$ 0	0			(29,032)	0			(29,032)
Stock awards (in shares)	15,000	0		0	0			15,000	0
Repurchase of shares (in shares)	0	0		1,727	0			(1,727)	0
Stock awards	$ 211,050	$ 0	0			0	0			211,050
Net Income	0	0	0			0	2,304,407			2,304,407
Repurchase of shares	0	0	0			(29,032)	0			(29,032)
Balance at Jun. 30, 2020	$ 3,866,614	$ 1,465,522	1,741,901			(1,934,812)	18,831,490			23,970,715
Balance (in shares) at Jun. 30, 2020	2,591,837	954,283		38,935	182,435			2,552,902	771,848
Balance at Mar. 31, 2020	$ 3,636,272	$ 1,465,522	1,741,901			(1,905,780)	18,602,653			23,540,568
Share-based compensation expense	19,292	0	0			0	0			19,292
Stock awards	211,050	0	0			0	0			211,050
Net Income	$ 0	$ 0	0			0	228,837			228,837
Balance (in shares) at Mar. 31, 2020	2,576,837	954,283		37,208	182,435			2,539,629	771,848
Repurchase of shares	$ 0	$ 0	0			(29,032)	0			(29,032)
Stock awards (in shares)	15,000	0		0	0			15,000	0
Repurchase of shares (in shares)	0	0		1,727	0			(1,727)	0
Stock awards	$ 211,050	$ 0	0			0	0			211,050
Net Income	0	0	0			0	228,837			228,837
Repurchase of shares	0	0	0			(29,032)	0			(29,032)
Balance at Jun. 30, 2020	$ 3,866,614	$ 1,465,522	1,741,901			(1,934,812)	18,831,490			23,970,715
Balance (in shares) at Jun. 30, 2020	2,591,837	954,283		38,935	182,435			2,552,902	771,848
Balance at Dec. 31, 2020	$ 3,896,705	$ 1,465,522	1,741,901			(1,938,052)	22,366,470			27,532,546
Share-based compensation expense	30,000	0	0			0	0			30,000
Stock awards	379,876	0	0			0	0			379,876
Net Income	$ 0	$ 0	0			0	4,390,722			4,390,722
Balance (in shares) at Dec. 31, 2020	2,595,087	954,283		39,467	182,435			2,555,620	771,848
Share conversion, shares issued (in shares)	40,000
Share conversion, shares converted (in shares)		(40,000)
Share conversion (in shares)				0	0			40,000	(40,000)
Repurchase of shares	$ 0	$ 0	0			(41,033)	0			(41,033)
Stock awards (in shares)	23,700	0		0	0			23,700	0
Repurchase of shares (in shares)	0	0		2,262	0			(2,262)	0
Stock awards	$ 379,876	$ 0	0			0	0			379,876
Issuance for acquisition	1,059,000									1,059,000
Net Income	$ 0	$ 0	0			0	4,390,722			4,390,722
Acquisition (in shares)	60,000	0			0			60,000	0
Stock conversion, shares issued (in shares)	40,000
Stock conversion, shares converted (in shares)		(40,000)
Stock conversion (in shares)				0	0			40,000	(40,000)
Repurchase of shares	$ 0	$ 0	0			(41,033)	0			(41,033)
Balance at Jun. 30, 2021	$ 5,365,581	$ 1,465,522	1,741,901			(1,979,085)	26,757,193			33,351,112
Balance (in shares) at Jun. 30, 2021	2,718,787	914,283		41,729	182,435			2,677,058	731,848
Balance at Mar. 31, 2021	$ 5,285,333	$ 1,465,522	1,741,901			(1,979,085)	25,509,887			32,023,559
Share-based compensation expense	14,333	0	0			0	0			14,333
Stock awards	65,915	0	0			0	0			65,915
Net Income	$ 0	$ 0	0			0	1,247,305			1,247,305
Balance (in shares) at Mar. 31, 2021	2,678,787	954,283		41,729	182,435			2,637,058	771,848
Share conversion, shares issued (in shares)	40,000
Share conversion, shares converted (in shares)		(40,000)
Share conversion (in shares)				0	0			40,000	(40,000)
Stock awards	$ 65,915	$ 0	0			0	0			65,915
Net Income	$ 0	$ 0	0			0	1,247,305			1,247,305
Stock conversion, shares issued (in shares)	40,000
Stock conversion, shares converted (in shares)		(40,000)
Stock conversion (in shares)				0	0			40,000	(40,000)
Balance at Jun. 30, 2021	$ 5,365,581	$ 1,465,522	$ 1,741,901			$ (1,979,085)	$ 26,757,193			$ 33,351,112
Balance (in shares) at Jun. 30, 2021	2,718,787	914,283		41,729	182,435			2,677,058	731,848

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Consolidated Statement of Cash Flow (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net Income	$ 4,390,722	$ 2,304,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,518,494	1,237,997
Unrealized gain on investments in equity securities	(67,928)	0
Forgiveness of PPP loan	(1,453,837)	0
Non-cash share-based compensation expense	409,876	266,808
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable	(3,186,784)	2,250,667
Decrease (Increase) in inventory	(1,781,567)	(460,092)
Decrease (Increase) in contract assets	1,623,466	(2,305,374)
Decrease (Increase) in prepaid expenses & other assets	(205,280)	57,510
Increase (Decrease) in accounts payable	1,462,832	2,427,507
Increase (Decrease) in accrued expenses	(533,593)	1,281,168
Increase (Decrease) in unearned revenue	676,359	(1,276,516)
Total adjustments	(1,537,962)	3,479,675
Net Cash Provided by Operating Activities	2,852,760	5,784,082
Cash Flows from Investing Activities
Cash paid for acquisition	(7,089,381)	(9,400,000)
Sale of equity securities	123,069	0
Capital expenditures	(1,418,663)	(193,059)
Net Cash (Used in) Investing Activities	(8,384,975)	(9,593,059)
Cash Flows from Financing Activities
Payments on notes	(1,287,456)	(808,850)
Borrowings on notes	0	1,453,837
Payments on bank debt	(3,630,634)	(3,427,080)
Borrowings on bank debt	7,734,627	11,315,041
Share repurchase	(41,033)	(29,032)
Net Cash Provided by Financing Activities	2,775,504	8,503,916
Net Increase (decrease) in cash and cash equivalents	(2,756,710)	4,694,939
Cash and cash equivalents at beginning of period	6,194,276	2,232,499
Cash and cash equivalents at end of period	3,437,566	6,927,438
Supplemental disclosures of cash flow information
Interest paid	362,353	477,332
Supplemental disclosures of noncash financing activity
Issuance of Class A common shares in business acquisitions	1,059,000	0
Paycheck Protection Program CARES Act [Member]
Supplemental disclosures of noncash financing activity
Forgiveness of PPP loan	$ 1,453,837	$ 0

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Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Basis of Accounting [Text Block]

1.  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the “Company”). Significant intercompany transactions and balances have been eliminated in the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ended December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 

During the six-month period ended June 30, 2021, there have been no changes to our significant accounting policies.

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Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

New Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for smaller reporting companies beginning after December 15, 2022. 

Fair Value of Financial Instruments

Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

Fair Value Measurements

As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

* Level 1: Quoted market prices in active markets for identical assets or liabilities.

* Level 2: Inputs to the valuation methodology include: * Quoted prices for similar assets or liabilities in active markets;

* Quoted prices for identical assets or similar assets or liabilities in inactive markets;

* Inputs other than quoted prices that are observable for the asset or liability;

* Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

* Level 3: Unobservable inputs that are not corroborated by market data.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.

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Note 3 - Accounts Receivable

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3.  ACCOUNTS RECEIVABLE 

The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. The reserve for doubtful accounts was $17,759 and $19,973 at June 30, 2021 and December 31, 2020, respectively.

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Note 4 - Inventory

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

4.  INVENTORY

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value and consists of:

	June 30, 2021		December 31, 2020
Raw materials and component parts	$	3,994,065	$	3,897,133
Work-in-process		4,445,012		3,449,252
Finished products		6,523,181		3,999,920
Total inventory	$	14,962,258	$	11,346,305
Less: inventory reserves		380,670		315,345
Net inventory	$	14,581,588	$	11,030,960

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Note 5 - Goodwill and Other Intangible Assets, Net

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

5. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

For the identified reporting units, a Step 1 impairment test was performed as of December 31, 2020 using an income approach based on management’s determination of the prospective financial information, with consideration given to the existing uncertainty in the global economy and aerospace and defense industry, particularly the commercial sector. The results of this test indicated the fair value exceeded carrying value for all reporting units tested. As a result of the impairment testing performed as of December 31, 2020, no indefinite-lived intangible assets or goodwill was determined to be impaired. Management updated their assessment during the second quarter of fiscal 2021 and validated the assumptions used in the analyses performed as of December 31, 2020 and determined that the resulting conclusions remained appropriate as of June 30, 2021.

Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is not amortized but is reviewed on an annual basis for impairment. Amortization of intangibles is being amortized on a straight-line basis over period ranging from one year to 15 years. Intangible assets are as follows:

	June 30, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,738,640		2,271,691
Intangible assets, net	$	9,294,360	$	7,558,309

Amortization of intangibles assets was: $261,025 and $179,340 for the three months ended June 30, 2021 and 2020, respectively, and $466,949 and $358,682 for the six months ended June 30, 2021 and 2020, respectively. 

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Note 6 - Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6.  PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows:

	June 30, 2021		December 31, 2020
Land	$	228,872	$	228,872
Buildings and improvements		2,740,383		2,061,887
Machinery & equipment		20,537,353		14,329,462
Total property, plant & equipment		23,506,608		16,620,221
Less: accumulated depreciation		8,144,758		5,329,438
Property plant & equipment, net	$	15,361,850	$	11,290,783

Depreciation expense was $661,628 and $425,769 for the three months ended June 30, 2021 and 2020, respectively, and $1,170,565 and $860,453 for the six months ended June 30, 2021 and 2020, respectively.

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Note 7 - Investments in Equity Securities

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

7.  INVESTMENTS IN EQUITY SECURITIES

Investments in equity securities are summarized in the table below:

	June 30, 2021		December 31, 2020
Fair value of equity securities	$	1,479,259	$	1,534,400
Cost basis		826,224		949,293
Unrealized gain (loss) on equity securities	$	653,035	$	585,107

Unrealized gains were $67,928 in the first six months of 2021 compared to $0 in the same period of last year. Unrealized losses were $0 in the first six months of 2021 compared to $0 in the same period of last year. Realized gains were $152,748 in the first six months of 2021 compared to $0 in the same period of last year. Realized losses were $0 in the first six months of 2021 compared to $0 in the same period of last year.

Investments by fair value level in the hierarchy as of June 30, 2021 and December 31, 2020 are as follows:

	Quoted Market Prices in Attractive Markets (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Unobservable Inputs that are not Corroborated by Market Data (Level 3)		Total Carrying Value in the Balance Sheet
Common stock as of June 30, 2021	$	1,479,259	$	-	$	-	$	1,479,259
Common stock as of December 31, 2020	$	1,534,400	$	-	$	-	$	1,534,400

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Note 8 - Bank Debt

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

8.  BANK DEBT 

The Company entered into a Credit Agreement on June 1, 2017 with JPMorgan Chase Bank, N.A. as lender, which was amended in connection with funding the acquisition of CAD Enterprises, Inc. (“CAD”) on July 5, 2018 and further amended on September 30, 2019, December 30, 2019 and March 2, 2021 (as amended, the “Credit Agreement”). The March 2, 2021 amendment increased the maximum borrowing amount under the revolving credit facility from $20,000,000 to $30,000,000. As amended, the Credit Agreement is comprised of a revolving facility in the amount of $30,000,000 and a term A loan in the amount of $6,000,000. Outstanding borrowings on the term A loan are payable in consecutive monthly installments, which currently amount to $111,111 per month.

The revolving facility under the Credit Agreement includes a $3 million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) (0.25%) for Prime Rate loans and (ii) 1.75% for LIBOR loans. The maturity date of the revolving facility is June 1, 2024. Interest for borrowings under the term A loan accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) 0.25% for Prime Rate loans and (ii) 2.25% for LIBOR loans. The maturity date of the term A loan is December 1, 2022. The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of 0.25% per annum payable quarterly. The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.

Bank debt balances consist of the following:

	June 30, 2021		December 31, 2020
Term debt	$	2,111,111	$	2,777,778
Revolving debt		15,687,371		10,825,797
Total Bank debt		17,798,482		13,603,575
Less: current portion		1,333,333		1,333,333
Non-current bank debt		16,465,149		12,270,242
Less: unamortized debt costs		160,007		95,814
Net non-current bank debt	$	16,305,142	$	12,174,428

The Company had $14.3 million and $9.2 million available to borrow on the revolving credit facility at June 30, 2021 and December 31, 2020, respectively.   

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Note 9 - Notes Payable

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

9.     NOTES PAYABLE

Notes Payable – Related Party

The Company had two separate outstanding promissory notes with First Francis Company Inc. (“First Francis”), which were originally issued in July 2016 in connection with the acquisition of Federal Hose Manufacturing (“Federal Hose”) and which were amended in July 2018 in connection with acquisition of CAD. The first promissory note was issued with original principal in the amount of $2,000,000, and the second was issued with original principal in the amount of $2,768,662. The promissory notes each had an interest rate of 6.25% per annum, which was increased from 4.0% per annum as part of the July 2018 amendments to the Credit Agreement.

In connection with the Komtek Forge acquisition, on January 15, 2021, the Company refinanced the outstanding First Francis promissory notes in the aggregate amount of $2,077,384, including accrued interest payable through the refinance date and combined this amount with an existing First Francis promissory note carried by Komtek Forge in the amount of $1,702,400 into one note for a combined $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021. The interest rate on the refinanced loan remained at 6.25% per annum. First Francis is owned by Edward Crawford and Matthew Crawford, both of whom serve on the Board of Directors of the Company.

Notes Payable – Seller Note

Effective July 1, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of CAD.  Upon the closing of the transaction, the CAD shares were transferred and assigned to the Company in consideration of the payment by the Company of an aggregate purchase price of $21 million, $12 million of which was payable in cash at closing, with the remainder paid in the form of a subordinated promissory note issued by the Company in favor of a Seller (the “Seller Note”), which is subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Share Purchase Agreement entered into in connection with the acquisition (the “Share Purchase Agreement”).   The Seller Note bears interest at a rate of four percent (4%) per annum and is payable in full no later than June 30, 2023 (the “Maturity Date”).  The Maturity Date, with respect to any then-outstanding portion of the original principal amount which is subject to an indemnification claim by the Company (asserted in accordance with the terms of the Share Purchase Agreement) pending as of the date thereof, will be automatically extended until such time as any claim relating to such disputed amount is no longer pending, pursuant to the terms of the Seller Note and subject to additional conditions set forth therein and in the Share Purchase Agreement. The Company is not permitted to prepay any amounts due and owing under the Seller Note.  Payment of the Seller Note is secured by a second-priority security interest in the assets of CAD.   Interest accrued on the original principal amount is due and payable in arrears on the first day of each calendar quarter up to and including June 30, 2023.  The Company is required to make quarterly principal payments, the amount of which is calculated based on a four (4) year amortization schedule, on the last day of each calendar quarter up to and including the Maturity Date. The holders of the Seller Note and the Company agreed to defer the quarterly principal payment due June 30, 2020 until June 30, 2023; quarterly interest was paid on the Seller Note.

Paycheck Protection Program Notes

The Company applied for and was approved for a loan in the amount of $3,679,383 (the “PPP Loan”) on April 10, 2020 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). On May 5, 2020, the Company instructed JPMorgan to repay in full the Promissory Note pursuant to the Paycheck Protection Program under the CARES Act. On June 4, 2020, Federal Hose and CAD each entered into unsecured loans with First Federal Savings and Loan Association of Lakewood, pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), in the amounts of $253,071 and $1,200,766, respectively (the “PPP Loans”). The Company received notice of forgiveness from First Federal Savings and Loan Association of Lakewood of 100% of the CAD and Federal Hose PPP loans on January 22, 2021 and January 29, 2021 respectively.

Notes payable consists of the following: 

	June 30, 2021		December 31, 2020
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.	$	-	$	1,108,829
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.		-		941,867
In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021.		3,617,328		-
In connection with the CARES Act, Federal Hose entered into a promissory note on June 4, 2020 for a $253,071 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 29, 2021.		-		253,071
In connection with the CARES Act, CAD entered into a promissory note on June 4, 2020 for a $1,200,766 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 22, 2021.		-		1,200,766
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the Loudermilks, payable in quarterly installments beginning September 30, 2018.		5,062,500		6,187,500
Total notes payable		8,679,828		9,692,033
Less current portion		2,925,607		2,782,479
Notes payable – non-current portion	$	5,754,221	$	6,909,554

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Note 10 - Leases

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

10. LEASES

The Company has operating and finance leases for facilities, vehicles and equipment. These leases have remaining terms of 2 years to 15 years, some of which include options to extend the leases for up to 10 years.

Supplemental balance sheet information related to leases:

	June 30, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets, net	$	8,284,495		$	8,856,820
Other current liabilities		1,149,104			1,136,300
Operating lease liabilities		7,367,122			7,901,357
Total operating lease liabilities	$	8,516,226		$	9,037,657
Weighted Average Remaining Lease Term
Operating Leases (in years)		9.7			9.0
Weighted Average Discount Rate
Operating Leases		5.0	%		5.0	%

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Note 11 - Earnings Per Common Share

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

11. EARNINGS PER COMMON SHARE 

The following table sets forth the computation of basic and diluted earnings per share.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Earnings Per Share - Basic
Net Income	$	1,247,305	$	228,837	$	4,390,722	$	2,304,407
Weighted average shares of common stock outstanding - Basic		3,408,906		3,317,665		3,400,917		3,314,573
Earnings Per Share - Basic	$	0.37	$	0.07	$	1.29	$	0.70
Earnings Per Share - Diluted
Weighted average shares of common stock outstanding - Basic		3,408,906		3,317,665		3,400,917		3,314,573
Warrants, Options and Convertible Notes		894		1,599		888		1,644
Weighted average shares of common stock -Diluted		3,409,800		3,319,264		3,401,805		3,316,217
Earnings Per Share - Diluted	$	0.37	$	0.07	$	1.29	$	0.69

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Note 12 - Acquisitions

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

12. ACQUISITIONS

Effective January 15, 2021, the Company completed the acquisition of all of the issued and outstanding membership interests of KT Acquisition LLC (dba Komtek Forge, “Komtek”), a Massachusetts limited liability company and supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics. alternative energy, petrochemical, and defense industries, pursuant to a Membership Interest Purchase Agreement entered into as of January 15, 2021. The Company acquired Komtek in consideration of the payment by the Company of an aggregate purchase price of $3.6 million, subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Membership Interest Purchase Agreement, which was comprised of cash, the issuance of 60,000 Class A common shares of the Company and the assumption of approximately $1,702,000 of specified liabilities of the seller.

Cash	$	75,701
Accounts Receivable		1,502,713
Inventory		1,595,859
Fixed Assets		434,197
Prepaid and Other Assets		280,258
Goodwill		832,306
Total Assets Acquired	$	4,721,034
Accounts Payable	$	843,817
Accrued Expense		223,909
Assumed debt		1,753,757
Total Liabilities Assumed	$	2,821,483
Equity Issuance	$	1,059,000
Net Assets Acquired	$	840,551
Acquisition transaction costs incurred were:	$	145,900

Effective March 1, 2021, MTA Acquisition Company, LLC, a Delaware limited liability company (“MTA”) and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the membership interests of Global-Tek-Manufacturing LLC, a Puerto Rico limited liability company and specialist in machining parts from wrought, rounds, castings or extrusions and providing in house anodizing and other finishing and assembly operations and substantially all of the assets of Machining Technology L.L.C., a Colorado limited liability company with CNC machining capability, pursuant to a Membership Interest and Asset Purchase Agreement entered into March 2, 2021 and effective as of March 1, 2021. The stock and assets were transferred and assigned to MTA in exchange for approximately $4.9 million in cash and the repayment of remaining outstanding indebtedness and transaction costs totaling approximately $1.6 million, subject to customary post-closing adjustments. The Purchase Agreement also includes a post-closing “earnout” that provides for up to an aggregate of $1.5 million in additional consideration to the certain sellers (up to $750,000 per year) if specified performance targets are met in the two years following closing. If earned, the additional consideration is payable in cash or, at the election of each such seller, in Company common shares up to a maximum aggregate amount of 61,475 shares.

Accounts Receivable	$	1,058,459
Inventory		173,202
Fixed Assets		3,426,091
Prepaid and Other Assets		1,036
Intangibles Assets		2,203,000
Goodwill		1,813,598
Total Assets Acquired	$	8,675,386
Accounts Payable	$	473,119
Accrued Payroll and Other Expense		202,780
Contingent Liability		1,500,000
Total Liabilities Assumed	$	2,175,899
Net Assets Acquired	$	6,499,487
Acquisition transaction costs incurred were:	$	189,736

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Note 13 - Segment and Related Information

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13. SEGMENT AND RELATED INFORMATION  

As of January 1, 2021, the Company elected to report operations for two business segments: (1) Commercial Air Handling Equipment, and (2) Industrial and Transportation Products. The decision to change from three to two reportable business segments was the result of a board-level discussion and was deemed appropriate given the size of the Company. The Company's management evaluates segment performance based primarily on operating income. Certain corporate costs are allocated to the segments and interest expense directly related to financing the acquisition of a business is allocated to that segment, respectively.  Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses.

Commercial Air Handling:
The Commercial Air Handling segment was added June 1, 2017, when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of 50 years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

Industrial and Transportation Products: 

The Industrial and Transportation Products segment was added July 1, 2016, when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on July 1, 2018. CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions.  Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels.  CAD’s quality certifications include ISO 9001:2015/AS9100D, as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on January 2, 2020. MPI specialized in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective April 19, 2019, the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on January 15, 2021. Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology L.L.C. (Machining Technologies), in Longmont, Colorado on March 2, 2021. Global-Tek and Machining Technologies specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets.

Corporate and Other: 

Corporate costs not allocated to the two primary business segments are aggregated here.

Information by industry segment is set forth below: 

	Three Months Ended June 30, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	9,972,545	$	16,477,340	$	-		$	26,449,885
Gross Profit		2,030,038		3,750,252		-			5,780,290
Operating Income		845,092		1,342,966		(68,261	)		2,119,797
Pretax Income		845,092		1,121,507		(372,142	)		1,594,457
Net Income		633,818		893,184		(279,697	)		1,247,305

	Three Months Ended June 30, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products			Corporate and Other			Consolidated
Sales	$	11,848,816	$	6,727,772		$	-		$	18,576,588
Gross Profit		2,893,541		605,498			-			3,499,039
Operating Income		1,565,482		(872,867	)		(162,095	)		530,520
Pretax Income		1,565,482		(1,154,315	)		(103,542	)		307,625
Net Income		1,174,113		(870,177	)		(75,099	)		228,837

	Six Months Ended June 30, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	18,737,644	$	31,706,245	$	-		$	50,443,889
Gross Profit		4,260,858		7,522,353		-			11,783,211
Operating Income		1,890,721		3,094,411		(539,875	)		4,445,257
Pretax Income		1,890,721		2,693,643		679,052			5,263,416
Net Income		1,418,040		2,099,368		873,314			4,390,722

	Six Months Ended June 30, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products			Corporate and Other			Consolidated
Sales	$	23,302,590	$	20,555,572		$	-		$	43,858,162
Gross Profit		5,941,342		3,765,841			-			9,707,182
Operating Income		3,185,251		541,737			(58,319	)		3,668,669
Pretax Income		3,160,286		(33,088	)		(50,206	)		3,076,992
Net Income		2,370,215		(30,679	)		(35,129	)		2,304,407

(1) Segment information for the three and six month periods ended June 30, 2021 has been restated to reflect the change in reportable segments.  

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Note 14 - Uncertainties

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Effect of Covid19 Pandemic [Text Block]

14. UNCERTAINTIES

The coronavirus (COVID-19) pandemic had a material adverse effect on the Company’s reported results for the three month and six month periods ended June 30, 2021. The Company will continue to actively monitor the impact of the coronavirus pandemic, which is expected to negatively impact the Company’s business and results of operations for the remainder of fiscal year 2021 and possibly beyond. The extent to which the Company’s business and operations will be impacted by the pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak; new and growing outbreaks of COVID-19 or new strains of COVID-19; actions by government authorities to contain COVID-19 or treat its impact, such as reimposed public health restrictions; efforts to combat COVID-19, such as vaccine development and distribution, among other things.

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Note 15 - Subsequent Events

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Subsequent Events [Text Block]

15. SUBSEQUENT EVENTS

The Company purchased the operating assets of Emergency Hydraulics LLC in Ocala, Florida on July 1, 2021 for an aggregate purchase price of approximately $0.3 million. The acquired business provides hydraulic hoses, air tank assemblies and related products to manufacturers of firefighting trucks and other emergency vehicles. The acquired business is strategically important to the Company’s growing industrial hose platform and will expand its offerings and diversify its customer base in this important market segment. The acquisition is expected to add approximately $2 million in annualized revenue to Crawford United and be immediately accretive to earnings

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for smaller reporting companies beginning after December 15, 2022. 

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

Fair Value Measurements

As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

* Level 1: Quoted market prices in active markets for identical assets or liabilities.

* Level 2: Inputs to the valuation methodology include: * Quoted prices for similar assets or liabilities in active markets;

* Quoted prices for identical assets or similar assets or liabilities in inactive markets;

* Inputs other than quoted prices that are observable for the asset or liability;

* Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

* Level 3: Unobservable inputs that are not corroborated by market data.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.

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Note 4 - Inventory (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2021		December 31, 2020
Raw materials and component parts	$	3,994,065	$	3,897,133
Work-in-process		4,445,012		3,449,252
Finished products		6,523,181		3,999,920
Total inventory	$	14,962,258	$	11,346,305
Less: inventory reserves		380,670		315,345
Net inventory	$	14,581,588	$	11,030,960

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Note 5 - Goodwill and Other Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	June 30, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,738,640		2,271,691
Intangible assets, net	$	9,294,360	$	7,558,309

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Note 6 - Property, Plant and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Property, Plant and Equipment [Table Text Block]

	June 30, 2021		December 31, 2020
Land	$	228,872	$	228,872
Buildings and improvements		2,740,383		2,061,887
Machinery & equipment		20,537,353		14,329,462
Total property, plant & equipment		23,506,608		16,620,221
Less: accumulated depreciation		8,144,758		5,329,438
Property plant & equipment, net	$	15,361,850	$	11,290,783

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Note 7 - Investments in Equity Securities (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block]

	June 30, 2021		December 31, 2020
Fair value of equity securities	$	1,479,259	$	1,534,400
Cost basis		826,224		949,293
Unrealized gain (loss) on equity securities	$	653,035	$	585,107

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

	Quoted Market Prices in Attractive Markets (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Unobservable Inputs that are not Corroborated by Market Data (Level 3)		Total Carrying Value in the Balance Sheet
Common stock as of June 30, 2021	$	1,479,259	$	-	$	-	$	1,479,259
Common stock as of December 31, 2020	$	1,534,400	$	-	$	-	$	1,534,400

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Note 8 - Bank Debt (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Debt [Table Text Block]

	June 30, 2021		December 31, 2020
Term debt	$	2,111,111	$	2,777,778
Revolving debt		15,687,371		10,825,797
Total Bank debt		17,798,482		13,603,575
Less: current portion		1,333,333		1,333,333
Non-current bank debt		16,465,149		12,270,242
Less: unamortized debt costs		160,007		95,814
Net non-current bank debt	$	16,305,142	$	12,174,428

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Note 9 - Notes Payable (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	June 30, 2021		December 31, 2020
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.	$	-	$	1,108,829
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.		-		941,867
In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021.		3,617,328		-
In connection with the CARES Act, Federal Hose entered into a promissory note on June 4, 2020 for a $253,071 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 29, 2021.		-		253,071
In connection with the CARES Act, CAD entered into a promissory note on June 4, 2020 for a $1,200,766 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 22, 2021.		-		1,200,766
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the Loudermilks, payable in quarterly installments beginning September 30, 2018.		5,062,500		6,187,500
Total notes payable		8,679,828		9,692,033
Less current portion		2,925,607		2,782,479
Notes payable – non-current portion	$	5,754,221	$	6,909,554

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Note 10 - Leases (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block]

	June 30, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets, net	$	8,284,495		$	8,856,820
Other current liabilities		1,149,104			1,136,300
Operating lease liabilities		7,367,122			7,901,357
Total operating lease liabilities	$	8,516,226		$	9,037,657
Weighted Average Remaining Lease Term
Operating Leases (in years)		9.7			9.0
Weighted Average Discount Rate
Operating Leases		5.0	%		5.0	%

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Note 11 - Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Earnings Per Share - Basic
Net Income	$	1,247,305	$	228,837	$	4,390,722	$	2,304,407
Weighted average shares of common stock outstanding - Basic		3,408,906		3,317,665		3,400,917		3,314,573
Earnings Per Share - Basic	$	0.37	$	0.07	$	1.29	$	0.70
Earnings Per Share - Diluted
Weighted average shares of common stock outstanding - Basic		3,408,906		3,317,665		3,400,917		3,314,573
Warrants, Options and Convertible Notes		894		1,599		888		1,644
Weighted average shares of common stock -Diluted		3,409,800		3,319,264		3,401,805		3,316,217
Earnings Per Share - Diluted	$	0.37	$	0.07	$	1.29	$	0.69

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Note 12 - Acquisitions (Tables)

6 Months Ended

Jun. 30, 2021

Acquisition of Global Tek Manufacturing LLC [Member]

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Accounts Receivable	$	1,058,459
Inventory		173,202
Fixed Assets		3,426,091
Prepaid and Other Assets		1,036
Intangibles Assets		2,203,000
Goodwill		1,813,598
Total Assets Acquired	$	8,675,386
Accounts Payable	$	473,119
Accrued Payroll and Other Expense		202,780
Contingent Liability		1,500,000
Total Liabilities Assumed	$	2,175,899
Net Assets Acquired	$	6,499,487
Acquisition transaction costs incurred were:	$	189,736

Komtek Forge Acquisition [Member]

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Cash	$	75,701
Accounts Receivable		1,502,713
Inventory		1,595,859
Fixed Assets		434,197
Prepaid and Other Assets		280,258
Goodwill		832,306
Total Assets Acquired	$	4,721,034
Accounts Payable	$	843,817
Accrued Expense		223,909
Assumed debt		1,753,757
Total Liabilities Assumed	$	2,821,483
Equity Issuance	$	1,059,000
Net Assets Acquired	$	840,551
Acquisition transaction costs incurred were:	$	145,900

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Note 13 - Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended June 30, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	9,972,545	$	16,477,340	$	-		$	26,449,885
Gross Profit		2,030,038		3,750,252		-			5,780,290
Operating Income		845,092		1,342,966		(68,261	)		2,119,797
Pretax Income		845,092		1,121,507		(372,142	)		1,594,457
Net Income		633,818		893,184		(279,697	)		1,247,305

	Three Months Ended June 30, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products			Corporate and Other			Consolidated
Sales	$	11,848,816	$	6,727,772		$	-		$	18,576,588
Gross Profit		2,893,541		605,498			-			3,499,039
Operating Income		1,565,482		(872,867	)		(162,095	)		530,520
Pretax Income		1,565,482		(1,154,315	)		(103,542	)		307,625
Net Income		1,174,113		(870,177	)		(75,099	)		228,837

	Six Months Ended June 30, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	18,737,644	$	31,706,245	$	-		$	50,443,889
Gross Profit		4,260,858		7,522,353		-			11,783,211
Operating Income		1,890,721		3,094,411		(539,875	)		4,445,257
Pretax Income		1,890,721		2,693,643		679,052			5,263,416
Net Income		1,418,040		2,099,368		873,314			4,390,722

	Six Months Ended June 30, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products			Corporate and Other			Consolidated
Sales	$	23,302,590	$	20,555,572		$	-		$	43,858,162
Gross Profit		5,941,342		3,765,841			-			9,707,182
Operating Income		3,185,251		541,737			(58,319	)		3,668,669
Pretax Income		3,160,286		(33,088	)		(50,206	)		3,076,992
Net Income		2,370,215		(30,679	)		(35,129	)		2,304,407

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Note 3 - Accounts Receivable (Details Textual) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 17,759	$ 19,973

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Note 4 - Inventory - Inventory (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Raw materials and component parts	$ 3,994,065	$ 3,897,133
Work-in-process	4,445,012	3,449,252
Finished products	6,523,181	3,999,920
Total inventory	14,962,258	11,346,305
Less: inventory reserves	380,670	315,345
Net inventory	$ 14,581,588	$ 11,030,960

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Note 5 - Goodwill and Other Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Intangible Asset Impairment, Total			$ 0
Amortization of Intangible Assets, Total	$ 261,025	$ 179,340	$ 466,949	$ 358,682
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)			1 year
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)			15 years

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Note 5 - Goodwill and Other Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Other intangibles, gross	$ 12,033,000	$ 9,830,000
Less: accumulated amortization	2,738,640	2,271,691
Intangible assets, net	9,294,360	7,558,309
Customer-Related Intangible Assets [Member]
Other intangibles, gross	8,741,000	7,700,000
Noncompete Agreements [Member]
Other intangibles, gross	200,000	200,000
Trademarks [Member]
Other intangibles, gross	$ 3,092,000	$ 1,930,000

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Note 6 - Property, Plant and Equipment, Net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Depreciation, Total	$ 661,628	$ 425,769	$ 1,170,565	$ 860,453

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Note 6 - Property, Plant and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Property Plant and Equipment, Gross	$ 23,506,608	$ 16,620,221
Less: accumulated depreciation	8,144,758	5,329,438
Property plant & equipment, net	15,361,850	11,290,783
Land [Member]
Property Plant and Equipment, Gross	228,872	228,872
Building and Building Improvements [Member]
Property Plant and Equipment, Gross	2,740,383	2,061,887
Machinery and Equipment [Member]
Property Plant and Equipment, Gross	$ 20,537,353	$ 14,329,462

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Note 7 - Investments in Equity Securities (Details Textual) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Equity Securities, FV-NI, Unrealized Gain		$ 67,928	$ 0
Equity Securities, FV-NI, Unrealized Loss		0	0
Equity Securities, FV-NI, Realized Gain		$ 152,748	0
Equity Securities, FV-NI, Realized Loss	$ 0		$ 0

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Note 7 - Investments in Equity Securities - Schedule of Investments in Equity Securities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Fair value of equity securities	$ 1,479,259	$ 1,534,400
Cost basis	826,224	949,293
Unrealized gain (loss) on equity securities	$ 653,035	$ 585,107

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Note 7 - Investments in Equity Securities - Schedule of Fair Value of Investments (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Balance	$ 1,479,259	$ 1,534,400
Reported Value Measurement [Member]
Balance	1,479,259	1,534,400
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Balance	1,479,259	1,534,400
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Balance	0	0
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Balance	$ 0	$ 0

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Note 8 - Bank Debt (Details Textual) - USD ($)		6 Months Ended
	Jul. 05, 2018	Jun. 30, 2021	Mar. 02, 2021	Dec. 31, 2020	Dec. 30, 2019	Sep. 30, 2019
Line of Credit Facility, Maximum Borrowing Capacity		$ 14,300,000		$ 9,200,000
J P Morgan Chase Bank [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Commitment Fee Percentage	0.25%
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%
J P Morgan Chase Bank [Member] | Term Debt [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 30,000,000		$ 30,000,000	$ 20,000,000
Long-term Debt, Total			$ 6,000,000
Debt Instrument, Periodic Payment, Total		$ 111,111
J P Morgan Chase Bank [Member] | Term Debt [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
J P Morgan Chase Bank [Member] | Term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%

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Note 8 - Bank Debt - Summary of Loan Balances (Details) - Bank Debt [Member] - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Total Bank Debt	$ 17,798,482	$ 13,603,575
Less: current portion	1,333,333	1,333,333
Non-current bank debt	16,465,149	12,270,242
Less: unamortized debt costs	160,007	95,814
Net non-current bank debt	16,305,142	12,174,428
Term Debt [Member]
Total Bank Debt	2,111,111	2,777,778
Line of Credit [Member]
Total Bank Debt	$ 15,687,371	$ 10,825,797

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Note 9 - Notes Payable (Details Textual) - USD ($)			6 Months Ended
	Jul. 05, 2018	Jul. 01, 2018	Jun. 30, 2021	Jun. 30, 2020	Jan. 15, 2021	Jan. 14, 2021	Dec. 31, 2020	Jun. 04, 2020	Apr. 10, 2020	Jul. 01, 2016
Payments to Acquire Businesses, Gross			$ 7,089,381	$ 9,400,000
CAD Enterprises, Inc. [Member]
Business Combination, Consideration Transferred, Total		$ 21,000,000
Payments to Acquire Businesses, Gross		$ 12,000,000
Notes Payable [Member]
Notes Payable, Total			8,679,828				$ 9,692,033
Seller Note [Member] | CAD Enterprises, Inc. [Member]
Debt Instrument, Interest Rate, Stated Percentage		4.00%
Seller Note [Member] | Notes Payable [Member]
Debt Instrument, Face Amount			9,000,000				9,000,000
Notes Payable, Total			5,062,500				6,187,500
Paycheck Protection Program CARES Act [Member] | Notes Payable [Member]
Debt Instrument, Face Amount									$ 3,679,383
Paycheck Protection Program CARES Act [Member] | Notes Payable [Member] | Federal Hose [Member]
Debt Instrument, Face Amount							253,071	$ 253,071
Notes Payable, Total			0				253,071
Paycheck Protection Program CARES Act [Member] | Notes Payable [Member] | CAD Enterprises, Inc. [Member]
Debt Instrument, Face Amount							1,200,766	$ 1,200,766
Notes Payable, Total			0				1,200,766
First Francis [Member] | Related Party Notes, One [Member] | Notes Payable [Member]
Debt Instrument, Face Amount							2,000,000			$ 2,000,000
Notes Payable, Total			0				1,108,829
First Francis [Member] | Related Party Notes, Two [Member] | Notes Payable [Member]
Debt Instrument, Face Amount							2,768,662			$ 2,768,662
Notes Payable, Total			0				941,867
First Francis [Member] | Related Party Notes [Member] | Notes Payable [Member]
Debt Instrument, Interest Rate, Stated Percentage	6.25%
Line of Credit Facility, Interest Rate During Period	4.00%
Notes Payable, Total						$ 2,077,384
First Francis [Member] | Related Party Notes [Member] | Notes Payable [Member] | Komtek Forge [Member]
Notes Payable, Total						$ 1,702,400
First Francis [Member] | Related Party Notes Three [Member] | Notes Payable [Member]
Debt Instrument, Face Amount			3,779,784
Debt Instrument, Interest Rate, Stated Percentage					6.25%
Notes Payable, Total			$ 3,617,328		$ 3,779,784		$ 0

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Note 9 - Notes Payable - Notes Payable (Details) - USD ($)	Jun. 30, 2021	Jan. 15, 2021	Dec. 31, 2020
Less current portion	$ 2,925,607		$ 2,782,479
Notes payable – non-current portion	5,754,221		5,455,717
Paycheck Protection Program CARES Act [Member]
Notes payable – non-current portion	0		1,453,837
Notes Payable [Member]
Notes payable	8,679,828		9,692,033
Less current portion	2,925,607		2,782,479
Notes payable – non-current portion	5,754,221		6,909,554
Notes Payable [Member] | Paycheck Protection Program CARES Act [Member] | Federal Hose [Member]
Notes payable	0		253,071
Notes Payable [Member] | Paycheck Protection Program CARES Act [Member] | CAD Enterprises, Inc. [Member]
Notes payable	0		1,200,766
Notes Payable [Member] | Seller Note [Member]
Notes payable	5,062,500		6,187,500
Notes Payable [Member] | First Francis [Member] | Related Party Notes, One [Member]
Notes payable	0		1,108,829
Notes Payable [Member] | First Francis [Member] | Related Party Notes, Two [Member]
Notes payable	0		941,867
Notes Payable [Member] | First Francis [Member] | Related Party Notes Three [Member]
Notes payable	$ 3,617,328	$ 3,779,784	$ 0

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Note 9 - Notes Payable - Notes Payable (Details) (Parentheticals) - Notes Payable [Member] - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Jun. 04, 2020	Apr. 10, 2020	Jul. 01, 2016
Paycheck Protection Program CARES Act [Member]
Notes payable, face value				$ 3,679,383
Paycheck Protection Program CARES Act [Member] | Federal Hose [Member]
Notes payable, face value		$ 253,071	$ 253,071
Paycheck Protection Program CARES Act [Member] | CAD Enterprises, Inc. [Member]
Notes payable, face value		1,200,766	$ 1,200,766
Seller Note [Member]
Notes payable, face value	$ 9,000,000	9,000,000
First Francis [Member] | Related Party Notes, One [Member]
Notes payable, face value		2,000,000			$ 2,000,000
First Francis [Member] | Related Party Notes, Two [Member]
Notes payable, face value		$ 2,768,662			$ 2,768,662
First Francis [Member] | Related Party Notes Three [Member]
Notes payable, face value	$ 3,779,784

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Note 10 - Leases (Details Textual)	6 Months Ended
	Jun. 30, 2021
Lessee, Operating and Finance Lease, Renewal Term (Year)	10 years
Minimum [Member]
Operating and Finance Lease, Remaining Term (Year)	2 years
Maximum [Member]
Operating and Finance Lease, Remaining Term (Year)	15 years

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Note 10 - Leases - Lease Assets and Liabilities (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Operating lease right-of-use assets, net	$ 8,284,495	$ 8,856,820
Operating Leases (in years) (Year)	9 years 8 months 12 days	9 years
Operating Leases	5.00%	5.00%
Other Current Liabilities [Member]
Other current liabilities	$ 1,149,104	$ 1,136,300
Operating Lease Liabilities [Member]
Operating lease liabilities	7,367,122	7,901,357
Other Current Liabilities and Operating Lease Liabilities [Member]
Total operating lease liabilities	$ 8,516,226	$ 9,037,657

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Note 11 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Income	$ 1,247,305	$ 228,837	$ 4,390,722	$ 2,304,407
Weighted average shares of common stock outstanding - Basic (in shares)	3,408,906	3,317,665	3,400,917	3,314,573
Earnings Per Share - Basic (in dollars per share)	$ 0.37	$ 0.07	$ 1.29	$ 0.70
Warrants, Options and Convertible Notes (in shares)	894	1,599	888	1,644
Weighted average shares of common stock -Diluted (in shares)	3,409,800	3,319,264	3,401,805	3,316,217
Earnings Per Share - Diluted (in dollars per share)	$ 0.37	$ 0.07	$ 1.29	$ 0.69

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Note 12 - Acquisitions (Details Textual) - USD ($)			6 Months Ended
	Mar. 01, 2021	Jan. 15, 2021	Jun. 30, 2021	Jun. 30, 2020
Payments to Acquire Businesses, Gross			$ 7,089,381	$ 9,400,000
Komtek Forge Acquisition [Member]
Business Combination, Consideration Transferred, Total		$ 3,600,000
Business Combination, Consideration Transferred, Liabilities Incurred		$ 1,702,000
Komtek Forge Acquisition [Member] | Common Class A [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)		60,000
Acquisition of Global Tek Manufacturing LLC [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	61,475
Business Combination, Consideration Transferred, Liabilities Incurred	$ 1,600,000
Payments to Acquire Businesses, Gross	4,900,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	1,500,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Annual Value, High	$ 750,000

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Note 12 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Komtek Forge (Details) - USD ($)	Jan. 15, 2021	Jun. 30, 2021	Dec. 31, 2020
Goodwill		$ 14,183,954	$ 11,505,852
Komtek Forge Acquisition [Member]
Cash	$ 75,701
Accounts Receivable	1,502,713
Inventory	1,595,859
Fixed Assets	434,197
Prepaid and Other Assets	280,258
Goodwill	832,306
Total Assets Acquired	4,721,034
Accounts Payable	843,817
Accrued Expense	223,909
Assumed debt	1,753,757
Total Liabilities Assumed	2,821,483
Equity Issuance	1,059,000
Net Assets Acquired	840,551
Acquisition transaction costs incurred were:	$ 145,900

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Note 12 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Global-Tek-Manufacturity, LLC (Details) - USD ($)	Mar. 01, 2021	Jun. 30, 2021	Dec. 31, 2020
Goodwill		$ 14,183,954	$ 11,505,852
Acquisition of Global Tek Manufacturing LLC [Member]
Accounts Receivable	$ 1,058,459
Inventory	173,202
Fixed Assets	3,426,091
Prepaid and Other Assets	1,036
Intangibles Assets	2,203,000
Goodwill	1,813,598
Total Assets Acquired	8,675,386
Accounts Payable	473,119
Accrued Payroll and Other Expense	202,780
Contingent Liability	1,500,000
Total Liabilities Assumed	2,175,899
Net Assets Acquired	6,499,487
Acquisition transaction costs incurred were:	$ 189,736

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Note 13 - Segment and Related Information (Details Textual)	Jan. 01, 2021
Number of Reportable Segments	2

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Note 13 - Segment and Related Information - Information by Industry Segment (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020		Jun. 30, 2021	Jun. 30, 2020
Sales	$ 26,449,885	$ 18,576,588		$ 50,443,889	$ 43,858,162
Gross Profit	5,780,290	3,499,039		11,783,211	9,707,182
Operating Income	2,119,797	530,520		4,445,257	3,668,669
Pretax Income	1,594,457	307,625		5,263,416	3,076,992
Net Income	1,247,305	228,837		4,390,722	2,304,407
Commercial Air Handling [Member]
Sales	9,972,545	11,848,816	[1]	18,737,644	23,302,590
Gross Profit	2,030,038	2,893,541	[1]	4,260,858	5,941,342
Operating Income	845,092	1,565,482	[1]	1,890,721	3,185,251
Pretax Income	845,092	1,565,482	[1]	1,890,721	3,160,286
Net Income	633,818	1,174,113	[1]	1,418,040	2,370,215
Aerospace [Member]
Sales	16,477,340	6,727,772	[1]	31,706,245	20,555,572
Gross Profit	3,750,252	605,498	[1]	7,522,353	3,765,841
Operating Income	1,342,966	(872,867)	[1]	3,094,411	541,737
Pretax Income	1,121,507	(1,154,315)	[1]	2,693,643	(33,088)
Net Income	893,184	(870,177)	[1]	2,099,368	(30,679)
Industrial Hose [Member]
Sales	0	0	[1]	0	0
Gross Profit	0	0	[1]	0	0
Operating Income	(68,261)	(162,095)	[1]	(539,875)	(58,319)
Pretax Income	(372,142)	(103,542)	[1]	679,052	(50,206)
Net Income	(279,697)	(75,099)	[1]	873,314	(35,129)
Corporate and Other [Member]
Sales	26,449,885	18,576,588	[1]	50,443,889	43,858,162
Gross Profit	5,780,290	3,499,039	[1]	11,783,211	9,707,182
Operating Income	2,119,797	530,520	[1]	4,445,257	3,668,669
Pretax Income	1,594,457	307,625	[1]	5,263,416	3,076,992
Net Income	$ 1,247,305	$ 228,837	[1]	$ 4,390,722	$ 2,304,407

[1] March 31, 2020 segment information has been restated to reflect the change in reportable segments.

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Note 15 - Subsequent Events (Details Textual) - Subsequent Event [Member] - Emergency Hydraulics LLC [Member] $ in Millions	Jul. 01, 2021 USD ($)
Business Combination, Consideration Transferred, Total	$ 0.3
Business Acquisitions, Expected Annualized Revenue	$ 2.0