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Segment Reporting
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING

Note 10. SEGMENT REPORTING

 

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

  

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

 

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

 

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

 

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

 

   For the Three Months   For the Six Months 
   Ended June 30,   Ended June 30, 
   2021   2020   2021   2020 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
COMPLEX MACHINING                
Net Sales  $13,783,000   $7,308,000   $25,949,000   $19,372,000 
Gross Profit   2,325,000    681,000    3,944,000    2,849,000 
Income (Loss) before benefit from income taxes   1,573,000    (10,000)   2,553,000    1,160,000 
Assets   51,956,000    48,490,000    51,956,000    48,490,000 
                     
TURBINE ENGINE COMPONENTS                    
Net Sales   1,670,000    1,186,000    3,216,000    2,569,000 
Gross Profit (Loss)   278,000    (67,000)   456,000    (54,000)
Income (Loss) before benefit from income taxes   114,000    (217,000)   99,000    (343,000)
Assets   3,471,000    4,430,000    3,471,000    4,430,000 
                     
CORPORATE                    
Net Sales   
-
    
-
    
-
    
-
 
Gross Profit   
-
    
-
    
-
    
-
 
Loss before benefit from income taxes   (1,448,000)   (1,357,000)   (2,565,000)   (2,757,000)
Assets   823,000    1,808,000    823,000    1,808,000 
                     
CONSOLIDATED                    
Net Sales   15,453,000    8,494,000    29,165,000    21,941,000 
Gross Profit   2,603,000    614,000    4,400,000    2,795,000 
Income (Loss) before benefit from income taxes   239,000    (1,584,000)   87,000    (1,940,000)
Benefit from Income Taxes   
-
    
-
    
-
    (1,414,000)
Net Income (loss)   239,000    (1,584,000)   87,000    (526,000)
Assets  $56,250,000   $54,728,000   $56,250,000   $54,728,000