CURRENT REPORT FOR ISSUERS SUBJECT TO THE 1934 ACT REPORTING REQUIREMENTS  FORM 10-KSB  SECURITIES AND EXCHANGE
COMMISSION Washington, DC 20549   Annual Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act  For the
Fiscal Year Ended December 31, 2007  Precision Aerospace Components, Inc. (Exact name of Registrant as specified in its charter)  Delaware

000-30185

20-4763096(State or Other Jurisdiction
of  Incorporation)

(Commission
File Number)

(IRS Employer
Identification
No.)   2200 Arthur
Kill Road   Staten Island, NY

10309-1202(Address of Principal Executive
Offices)

(Zip Code)   (718) 356-1500 (Registrants telephone number, including area code)   (Former
address)  Securities registered
pursuant to Section 12(b) of the Act:  NONE Securities registered
pursuant to Section 12(g) of the Act:  Common Stock  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 Act of 1934 during the past 12 months and
(2) has been  subject to such filing  requirement  for the past
90days Yes [ XX ]   No [
 ].  Indicate by a check
mark whether the company is a shell company (as defined by Rule 12b-2 of the
Exchange Act:  Yes [    ]   No [ XX ].  Aggregate market
value of the voting stock held by non-affiliates of the Registrant as of
December 31, 2007:  $176,694  Shares of common
stock outstanding at March 25, 2008:  33,324,691      TABLE OF CONTENTS   PagePART I
3INTRODUCTORY NOTE
3ITEM 1. DESCRIPTION OF BUSINESS
3ITEM 2.  DESCRIPTION OF PROPERTY
11ITEM 3. LEGAL PROCEEDINGS
12ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS
12PART II
13ITEM 5. MARKET FOR PRECISION AEROSPACE COMPONENTS,
INC.S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
13ITEM 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION
14ITEM 7.  FINANCIAL STATEMENTS
17ITEM 8A. CONTROLS AND PROCEDURES
17ITEM 8B. OTHER INFORMATION
18PART III
19ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS
AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
ACT
19ITEM 10. EXECUTIVE COMPENSATION
21ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
23ITEM 12. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE
24ITEM 13. EXHIBITS
24ITEM 14. PRINCIPAL ACCOUNTANT FEES AND
SERVICES
24SIGNATURES
25
    2 
   PART I   INTRODUCTORY NOTE  FORWARD-LOOKING STATEMENTS  This Form 10-KSB contains "forward-looking statements" relating
to Precision Aerospace Components, Inc. (the "Company") which represent the
Company's current expectations or beliefs including, but not limited to,
statements concerning the Company's operations, performance, financial condition
and growth.  For this purpose, any statements contained in this Form 10-KSB
that are not statements of historical fact are forward-looking statements.
 Without limiting the generality of the foregoing, words such as "may",
"anticipate", "intend", "could", "estimate", or "continue" or the negative or
other comparable terminology are intended to identify forward-looking
statements.  These statements by their nature involve substantial risks and
uncertainties, such as credit losses, dependence on management and key
personnel, variability of quarterly results, and the ability of the Company to
continue its growth strategy and the Companys competition, certain of which are
beyond the Company's control.  Should one or more of these risks or
uncertainties materialize or should the underlying assumptions prove incorrect,
or any of the other risks herein occur, actual outcomes and results could differ
materially from those indicated in the forward-looking statements.  Any forward-looking statement speaks only
as of the date on which such statement is made, and the Company undertakes no
obligation to update any forward-looking statement or statements to reflect
events or circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events.  New factors emerge from
time to time and it is not possible for management to predict all of such
factors, nor can it assess the impact of each such factor on the business or the
extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking statements.    ITEM 1. DESCRIPTION OF BUSINESS  DESCRIPTION OF PRECISION AEROSPACE
COMPONENTS BUSINESS  Organizational History  Precision Aerospace Components (Precision
Aerospace or the Company) was previously known as Jordan 1 Holdings Company
(Jordan 1) and was incorporated in Delaware on December 28, 2005.  Jordan
1 is the successor to Gasel Transportation Lines, Inc. ("Gasel"), an Ohio
corporation that was organized under the laws of the State of Ohio on January
27, 1988.  Gasel was a trucking company that filed for
bankruptcy in the Southern District of Ohio, Eastern Division, in May 2003.
 On December 12, 2005, a final plan of reorganization was approved by the
court and the bankruptcy proceeding was dismissed.  On December 30, 2005, Gasel entered into a
private sale of stock under a Stock Purchase Agreement with Venture Fund I,
Inc., a Nevada corporation owned and controlled by accredited investor Ruth
Shepley (Shepley), of Houston, Texas.  Under the terms of the Stock
Purchase Agreement, Shepley purchased 29,000,000 shares of restricted common
stock for a purchase price of $100,000.  Subsequent to December 30, 2005, Jordan 1
did not engage in any business activity until July 20, 2006 when it entered into
an exchange agreement (the Exchange Agreement) pursuant to which the Company
acquired all of the equity of Delaware Fastener Acquisition Corp., a Delaware
corporation (DFAC), pursuant to an exchange agreement with the stockholders of
DFAC.  Contemporaneously, DFAC acquired the assets, subject to certain
liabilities, of Freundlich Supply Company, Inc. (Freundlich Supply) pursuant
to an asset purchase agreement (the Asset Purchase Agreement) dated May 24,
2006 among DFAC,   3  Freundlich
Supply, and Michael Freundlich.  The purchase of the assets was financed by
the proceeds from the sale by the Company of its securities pursuant to a
securities purchase agreement (the Securities Purchase Agreement).  As a
result of the Exchange Agreement, DFAC became a wholly-owned subsidiary of the
Company.  Upon completion of the foregoing transactions, the Company
changed its name to Precision Aerospace Components, Inc. and DFAC changed its
name to Freundlich Supply Company, Inc. (Freundlich).  The Companys present sole operating
subsidiary and sole source of revenues is Freundlich.  Overview of Business  Freundlich and through it the Company is a
stocking distributor of aerospace quality, internally-threaded fasteners.
 The organization from which the operating assets were acquired, Freundlich
Supply, was founded in 1938 and had been operating in its present business line
since 1940.  The Company distributes high-quality,
domestically-manufactured nut products that are used primarily for aerospace and
military applications and for industrial/commercial applications that require a
high level of certified and assured quality.  The Companys products are
manufactured, by others, to exacting specifications and are made from raw
materials that provide the strength and reliability required for aerospace
applications.  Freundlich is a niche player in the North
American aerospace fastener industry.  Freundlich currently focuses on
aero-space and nuclear quality nut products, serving as an authorized stocking
distributor for seven of the premier nut manufacturers in the United States.  Freundlich is a one-stop source for
standard, self-locking, semi-special and special nuts manufactured to several
military, aerospace and equivalent specifications.  Freundlich maintains a
large inventory of more than 7,000 SKUs comprised of more than 35 million parts
of premium quality, brand name nut products. Management believes that
Freundlichs demonstrated ability to immediately fulfill a high percentage (over
45 percent) of customer orders from stock-on-hand gives Freundlich a distinct
competitive advantage in the marketplace.  Freundlich sells its products
pursuant to written purchase orders it receives from its customers.  All
products are shipped via common carrier.  Industry Overview  The fastener distribution industry is
highly fragmented.  No one company holds a dominant position.  This is
primarily caused by the varied uses of fasteners and the size of the industry.
 Freundlich competes with the numerous fastener distributors which serve as
authorized stocking distributors for the seven nut manufacturers in the
Freundlich supplier base.  Freundlich believes that the depth of its 7,000
SKU inventory represents a competitive advantage.  As a stocking
distributor, Freundlich has employed a business model of maintaining levels of
inventory on hand or on order with its suppliers that can satisfy its customers
projected needs.  While this business model has allowed Freundlich to
mitigate the supply shortage suffered by the industry, the extremely long supply
times are creating challenges and creating shortages at Freundlich.
 Regulatory requirements which require manufacturer certifications create a
barrier to new supplier entry into the aerospace fastener manufacturing business
beyond the usual investment and patent barriers faced by new entrants to other
industries.  Certain domestic manufacturing capacity was eliminated during
a post-9/11 downturn in the aerospace industry.  The industry began a
turnaround in 2004, driven by increased levels of defense spending and increased
commercial demand caused by new orders received by Boeing Company and others.
 The continuing increased demand has exceeded the manufacturing capacity of
qualified manufacturers.  Through this year, manufacturing lead times have
continued to increase.  Inventory  As a stocking distributor, Freundlich
attempts to maintain levels of inventory on hand or on order to satisfy its
customers projected needs.  Freundlich has approximately 7,000 different
types of nuts in its inventory, comprised of more than 35 million parts of
premium quality, brand name nut products.  Freundlichs primary suppliers
include the following:   4   SPS Technologies Greer Stop Nut Republic Fastener Mfg. Corp MacLean-ESNA Alcoa Fastening Systems Bristol Industries Inc. Abbott-Interfast Corporation  Customers  In 2006, Freundlich Supply sold
approximately 42% of its products to the United States Department of Defense.
 All of these products were sold for maintenance, repair and operations
functions, were shipped to various government installations across the United
States and were sold for many different government programs.  For 2007,
sales to the United States Department of Defense represented approximately 37%
of total sales.  Freundlichs commercial customers include
original equipment manufacturers, repair facilities and other distributors.
 Other than the sales to the United States Department of Defense, no one
customer represented more than 10 percent of total sales in 2006 or 2007.  Competition  The fastener distribution industry is
highly fragmented.  No one company holds a dominant position.  This is
primarily caused by the varied uses of fasteners and the size of the industry.
 The Company competes with the numerous fastener distributors which serve
as authorized stocking distributors for the seven nut manufacturers in the
Company's supplier base. The Company believes that the depth of its 7,000 SKU
inventory represents a competitive advantage.  Few barriers to entry exist for fastener
distributors generally.  However, the business model employed by Freundlich
promotes competitive differences favoring Freundlich and collectively not
generally seen in the industry.  Freundlichs quality
system is certified to AS9100:2004 and ISO 9001:2000 quality measures.
 Since quality is an important measure of aerospace suppliers, Freundlich
strives to maintain its quality system to the highest standards in the
industry.  As an authorized
stocking distributor for the premier domestic manufacturers, Freundlich is able
to maintain relationships with customers not generally available to the
industry.  Most manufacturers are not expanding their network of authorized
distributors.  As a certified
government supplier, i.e. because it is listed on the Qualified
Supplier/Manufacturer List, Freundlich does not have to compete with companies
not so listed.  Government Regulation  Freundlich is approved as a qualified
supplier by the United States Department of Defense, and, as such, can provide
certain critical parts that other suppliers not so approved cannot supply.  The Fastener Quality Act (FQA) and its
implementing regulations issued by the United States Department of Commerce
require certain distributors of fasteners to, among other things, maintain lot
traceability for all of its products sold.  This requires that companies
like Freundlich keep their books and records such that they can trace the origin
of each item sold to the manufacturer from which the item was purchased.
 The FQA imposes additional requirements on the manufacturers of subject
parts and on the users.  Because of the demands of the industry, its
customers, and its own quality systems, Freundlich maintains strict lot
traceability for each item in inventory, and has done so for many years.    5 
 Employees  Freundlich has 16 employees, all of whom
are full time employees. We believe our employee relations are very good.   RISK FACTORS  An investment in our securities involves a
high degree of risk. We are subject to various risks that may materially harm
our business, financial condition and results of operations.  An investor
should carefully consider the risks and uncertainties described below and the
other information in this filing before deciding to purchase our securities.
 If any of these risks or uncertainties actually occurs, our business,
financial condition or operating results could be materially harmed. In that
case, the trading price of our common stock could decline.  You should only
purchase our securities if you can afford to suffer the loss of your entire
investment.  RISKS RELATED TO OUR BUSINESS  Fluctuations in our operating results
and announcements and developments concerning our business affect our stock
price.  Our quarterly operating results, the number
of stockholders desiring to sell their shares, changes in general economic
conditions and the financial markets, the execution of new contracts and the
completion of existing agreements and other developments affecting us, could
cause the market price of our common stock to fluctuate substantially.  As a result of the acquisition, our
expenses have increased significantly.  As a result of the acquisition, our ongoing
expenses have increased significantly, these include ongoing public company
expenses, such as increased legal and accounting, administrative (including
directors and insurance) expenses and the requirement that we register the
shares of common stock issued underlying the convertible note, preferred stock
and warrants issued to Barron Partners LP, as well as expenses incurred in
complying with the internal controls requirements of the Sarbanes-Oxley Act, and
obligations incurred in connection with the acquisition.  Our failure to
generate sufficient revenue and gross profit could result in reduced profits or
losses as a result of the additional expenses and our failure to be able to meet
our payment obligations could result in default under our obligations.  We may not be able to obtain necessary
additional capital which could adversely impact our operations.  Unless the Company can increase its
investment in inventory and meet operational expenses with the existing sources
of funds we have available, we may need access to additional financing to grow
our sales.  Such additional financing, whether from external sources or
related parties, may not be available if needed or on favorable terms.  Our
inability to obtain adequate financing will adversely affect the Companys pace
of business operations or could create liquidity and cash flow problems.
 This could be materially harmful to our business and may result in a lower
stock price.  Our officers and directors are involved
in other businesses which may cause them to devote less time to our
business.  Our officers' and directors' involvement
with other businesses may cause them to allocate their time and services between
us and other entities.  Consequently, they may give priority to other
matters over our needs which may materially cause us to lose their services
temporarily which could affect our operations and profitability.     6 
 We could fail
to attract or retain key personnel, which could be detrimental to our operations  Our success largely depends on the efforts
and abilities of key executives, employees and consultants.  The loss of
the services of a key executive, employee or consultant could materially harm
our business because of the cost and time necessary to replace and train a
replacement.  Such a loss would also divert management attention away from
operational issues.  To the extent that we are smaller than our competitors
and have fewer resources, we may not be able to attract the sufficient number
and quality of staff.  We may not be able to grow through
acquisitions.  In addition to our planned growth through
the development of our business, an important part of our growth strategy is to
expand our business and to acquire other businesses in related industries.
 Such acquisitions may be made with cash or our securities or a combination
of cash and securities.  If our stock price is less than the exercise price
of the outstanding warrants, it is not likely that that warrants will be
exercised at their present exercise price.  To the extent that we require
cash, we may have to borrow the funds or sell equity securities.  Any
issuance of equity as a portion of the purchase price or any sale of equity, to
the extent that we are able to sell equity, to raise funds to enable us to pay
the purchase price would result in dilution to our stockholders.  We have
no commitments from any financing source and we may not be able to raise any
cash necessary to complete an acquisition.  If we fail to make any
acquisitions, our future growth may be limited.  As of the date of this
report, we do not have any agreement as to any acquisition. Further, any
acquisition may be subject to government regulations.  If we make any acquisitions, they may
disrupt or have a negative impact on our business.  If we make acquisitions, we could have
difficulty integrating the acquired companies personnel and operations with our
own.  In addition, the key personnel of the acquired business may not be
willing to work for us.  We cannot predict the affect expansion may have on
our core business.  Regardless of whether we are successful in making an
acquisition, the negotiations could disrupt our ongoing business, distract our
management and employees and increase our expenses.  In addition to the
risks described above, acquisitions are accompanied by a number of inherent
risks, including, without limitation, the following:  the difficulty of
integrating acquired products, services or operations; the potential
disruption of the ongoing businesses and distraction of our management and the
management of acquired companies; the difficulty of
incorporating acquired rights or products into our existing business; difficulties in
disposing of the excess or idle facilities of an acquired company or business
and expenses in maintaining such facilities; difficulties in
maintaining uniform standards, controls, procedures and policies; the potential
impairment of relationships with employees and customers as a result of any
integration of new management personnel; the potential inability
or failure to achieve additional sales and enhance our customer base through
cross-marketing of the products to new and existing customers; the effect of any
government regulations which relate to the business acquired; and potential unknown
liabilities associated with acquired businesses or product lines, or the need to
spend significant amounts to retool, reposition or modify the marketing or sales
of acquired products or the defense of any litigation, whether of not
successful, resulting from actions of the acquired company prior to our
acquisition.  Our business could be severely impaired if
and to the extent that we are unable to succeed in addressing any of these risks
or other problems encountered in connection with these acquisitions, many of
which cannot be presently identified.  These risks and problems could
disrupt our ongoing business, distract our management and employees, increase
our expenses and adversely affect our results of operations.    7 
 We may be
required to pay liquidated damages if our board does not consist of a majority
of independent directors.  Our Securities Purchase Agreement with
Barron Partners LP and Richard Henri Kreger requires us to (i) appoint such
number of independent directors that would result in a majority of our directors
being independent directors, (ii) have an audit committee that is composed
solely of independent directors and (iii) have a compensation committee that is
composed of a majority of independent directors.  Our failure to maintain
these requirements would results in our payment of liquidated damages that are
payable in cash or by the issuance of additional shares of series A preferred
stock at the election of the investors.  We are dependent on a few major
industries.  We are dependent on the aerospace and
defense industries for a majority of our revenue and, as a result, our business
will be negatively impacted by any decline in those industries.  We face risks relating to government
contracts.  There are inherent risks in contracting
with the U.S. government, including risks that are peculiar to the defense
industry, which could have a material adverse effect on our business, prospects,
financial condition and operating results, including changes in the department
of defenses procurement policies and requirements.  RISKS RELATING TO OUR CURRENT FINANCING
ARRANGEMENT  There are a large number of shares
underlying our convertible note, series A and B convertible preferred stock and
our warrants that may be available for future sale and the sale of these shares
may depress the market price of our common stock.  The Company entered into a Securities
Purchase Agreement with Barron Partners LP and Richard Henri Kreger (the
Investors) pursuant to which the Investors purchased and still hold: (a) the
Companys convertible promissory note in the principal amount of $1,000,000. The
note, upon full conversion, is convertible into 5,747,126 shares of the
Companys common stock (the conversion price is $0.174 per share); (b) 5,274,152
shares of the Companys series A convertible preferred stock (the series A
preferred stock) which, are convertible into 27,320,107 shares of the Companys
common stock; (c) warrants to purchase 10,541,000 shares of the Companys common
stock at $0.203 per share; and (d) 10,541,000 shares of the Companys common
stock at $0.347 per share.  All of these numbers refer to shares in
existence after the 150:1 reverse split described below.  Additionally, all 2,811,000 shares of the
Companys series B convertible preferred stock convert into 5,622,000 shares of
the Companys common shares upon the 150:1 reverse split described below.  The Securities Purchase Agreement provides
that the Company will have filed a restated certificate of incorporation that
will (i) change the authorized capital stock to 10,000,000 shares of preferred
stock and 90,000,000 shares of common stock and (ii) effect a one-for-150
reverse split of the common stock.  The number of Total Shares, upon full
conversion of all Investor securities which could be converted to common stock
of the Company without giving effect to the reverse split, would be
8,999,009,550 shares.  The Company presently has an authorized common stock
limit of 100,000,000 shares.  As a result, the Investors will not have the
ability to convert the note or series A preferred stock or exercise the warrants
in full unless the reverse split is effected.  The Investors have agreed to
extend that the date of the reverse split to May 1, 2008.  If the reverse
split is not effective on or prior to May 1, 2008, the Company is required to
pay the investors liquidated damages in an amount equal to 5% of the investment
made by the investors, which would be $287,500.  The conversion price of the note and the
conversion rate of the series A preferred stock are subject to adjustment in
certain instances, including the issuance by the Company of stock at a price
which is less than the conversion price.  Each of these refers to shares
after the 150:1 reverse split.    8 
  The sale of these shares may adversely
affect the market price of our common stock.  The terms of our Securities Purchase
Agreement may restrict our ability to obtain necessary financing and could
impede us from using our securities as consideration in contracts related to our
operations.  Under the Securities Purchase Agreement, we
are restricted, during the three year period commencing on the date of the
agreement or such earlier time as the investors have sold certain of their
securities, (i) from issuing or selling any of our common stock either (A) at a
conversion, exercise or exchange rate or other price that is based upon and or
varies with the trading prices of or quotations for the shares of Common Stock
at any time after the initial issuance of such debt or equity securities, or (B)
with a conversion, exercise or exchange price that is subject to being reset at
some future date after the initial issuance of such debt or equity security or
upon the occurrence of specified or content events directly or indirectly
related to the business of the Company or the market for the Common stock, or
(ii) in a transaction in which the Company issues or sells any securities in a
capital raising transaction or series of related transactions which grants to an
investor the right to receive additional shares based upon future transactions
of the Company on terms which are more favorable to the Investors than the terms
initially provided to the investor in its initial securities purchase agreement
with the Company.  In addition, the Company is restricted from issuing
Preferred Stock and Convertible Debt. Further, each investor through the
Securities Purchase Agreement has a right of first refusal in subsequent private
placements of securities on a pro rata basis to the investors holdings in the
total post financing total fully diluted shares of the Company.  These
restrictions could impede us from using our securities as consideration in
contracts related to our operations, including, but not limited to, common stock
issued to consultants and vendors and obtaining additional financing.  This
may force us to use our limited cash to pay third parties as opposed to issue
our securities and may also lead to certain parties deciding to not enter into
contracts with us to provide us with necessary financing.  If we have
difficulty in entering into contracts related to our operations or obtaining
additional financing, we may be forced to curtail our business operations.  RISKS RELATING TO OUR COMMON
STOCK  Once re-listed, if we fail to remain
current on our reporting requirements, we could be removed from the OTC Bulletin
Board which would limit the ability of broker-dealers to sell our securities and
the ability of stockholder to sell their securities in the secondary market.  Companies trading on the OTC Bulletin
Board, such as us, must be reporting issuers under Section 12 of the Securities
Exchange Act of 1934, as amended, and must be current in their reports under
Section 13, in order to maintain price quotation privileges on the OTC Bulletin
Board.  If we fail to remain current on our reporting requirements, we
could be removed from the OTC Bulletin Board.  As a result, the market
liquidity for our securities could be severely adversely affected by limiting
the ability of broker-dealers to sell our securities and the ability of
stockholders to sell their securities in the secondary market.  Our common stock may be affected by
limited trading volume and the price of our shares may fluctuate significantly,
which cumulatively may affect shareholders' ability to sell shares of our common
stock  There has been a limited public market for
our common stock.  A more active trading market for our common stock may
not develop.  An absence of an active trading market could adversely affect
our shareholders' ability to sell our common stock in short time periods, or
possibly at all.  Our common stock has experienced, and is likely to
experience in the future, significant price and volume fluctuations, which could
adversely affect the market price of our common stock without regard to our
operating performance.  In addition, we believe that factors such as
quarterly fluctuations in our financial results and changes in the overall
economy or the condition of the financial markets could cause the price of our
common stock to fluctuate substantially.  These factors may negatively
impact shareholders' ability to sell shares of the Company's common stock.    9  Our common
stock may be affected by sales of short sellers, which may affect shareholders'
ability to sell shares of our common stock  As stated above, our common stock has
experienced, and is likely to experience in the future, significant price and
volume fluctuations.  These fluctuations could cause short sellers to enter
the market from time to time in the belief that the Company will have poor
results in the future.  The market for our stock may not be stable or
appreciate over time and the sale of our common stock may negatively impact
shareholders' ability to sell shares of the Company's common stock.  Because we may be subject to the penny
stock rules, our investors may have difficulty in selling their shares of our
common stock.  Penny Stock are shares of  stock:  With a price of less
than $5.00 per share;  That are not traded on
a "recognized" national exchange;  Whose prices are not
quoted on the NASDAQ automated quotation system (NASDAQ listed stock must still
have a price of not less than $5.00 per share); or  Of issuers with net
tangible assets less than $2.0 million (if the issuer has been in continuous
operation for at least three years) or $10.0 million (if in continuous operation
for less than three years), or with average revenues of less than $6.0 million
for the last three years.  Our Common Stock is presently deemed to be
Penny Stock.  If our stock price continues to be less
than $5.00 per share, our stock may be subject to the SECs penny stock rules,
(Rule 3a51-1 promulgated under the Securities Exchange Act of 1934) which impose
additional sales practice requirements and restrictions on broker-dealers that
sell our stock to persons other than established customers and institutional
accredited investors.  These requirements may reduce the potential market
for our common stock by reducing the number of potential investors.  This
may make it more difficult for investors in our common stock to sell shares to
third parties or to otherwise dispose of them.  This could cause our stock
price to decline.  Broker-dealers dealing in penny stocks are
required to provide potential investors with a document disclosing the risks of
penny stocks.  Moreover, broker-dealers are required to determine whether
an investment in a penny stock is a suitable investment for a prospective
investor.  According to the SEC, the market for penny
stocks has suffered in recent years from patterns of fraud and abuse. Such
patterns include:  Control of the market
for the security by one or a few broker-dealers that are often related to the
promoter or issuer;  Manipulation of prices
through prearranged matching of purchases and sales and false and misleading
press releases;  Boiler room practices
involving high pressure sales tactics and unrealistic price projections by
inexperienced sales persons;  Excessive and
undisclosed bid-ask differentials and markups by selling broker-dealers; and  The wholesale dumping
of the same securities by promoters and broker-dealers after prices have been
manipulated to a desired level, along with the inevitable collapse of those
prices with consequent investor losses.   10   This may make it more difficult for
investors to sell their shares due to suitability requirements.  The protection provided by the federal
securities laws relating to forward looking statements does not presently apply
to us since our shares are Penny Stock shares.  Although the federal securities law provide
a safe harbor for forward-looking statements made by a public company that files
reports under the federal securities laws, this safe harbor is not available to
issuers of penny stocks.  As a result, as long as our shares continue to be
a Penny Stock, we will not have the benefit of this safe harbor protection in
the event of any proceeding based upon a claim that the material provided by us
contained a material misstatement of fact or was misleading in any material
respect because of our failure to include any statements necessary to make the
statements not misleading.  Failure to achieve and maintain
effective internal controls in accordance with Section 404 of the Sarbanes-Oxley
Act could have a material adverse effect on our business and operating results
and stockholders could lose confidence in our financial reporting.  Effective internal controls are necessary
for us to provide reliable financial reports and effectively prevent fraud.
 If we cannot provide reliable financial reports or prevent fraud, our
operating results could be harmed.  Section 404 of the Sarbanes-Oxley Act
requires increased control over financial reporting requirements, including
documentation and testing of our internal control procedures in order to satisfy
its requirements,annual management assessments of the effectiveness of
such internal controls and a report by our independent certified public
accounting firm addressing these assessments.  This section may become
fully applicable to us in the future.  Failure to achieve and maintain an
effective internal control environment, regardless of whether we are required to
maintain such controls could also cause investors to lose confidence in our
reported financial information, which could have a material adverse effect on
our stock price.  The Chairman of our board of directors
will own a controlling interest in our voting stock following the completion of
a proposed 1-for-150 reverse split.  The chairman of our board of directors,
Alexander Kreger, will own approximately 53% of our outstanding common stock
immediately following the completion of our proposed 1-for-150 reverse split.
 As a result, Mr. Kreger will have the ability to control substantially all
matters submitted to our stockholders for approval, including:  election of our board of
directors; removal of any of our
directors; amendment of our
certificate of incorporation or bylaws; and adoption of measures
that could delay or prevent a change in control or impede a merger, takeover or
other business combination involving us.   ITEM 2.  DESCRIPTION OF PROPERTY  Our principal executive office and the
offices and distribution center of Freundlich is located at 2200 Arthur Kill
Road, Staten Island, New York 10309.  This was the prior location of the
operations of the acquired assets of Freundlich.  The space is subleased,
pursuant to a triple net lease, by the Company through July 2008.  The
space is leased for approximately $12,000 per month. We have an option to extend
our lease for this space.  The approximately 18,000 square foot building is
constructed from brick and cinder block and is maintained in excellent
condition.  The space is sufficient for our present and anticipated
needs.    11 
    ITEM 3.  LEGAL PROCEEDINGS  Dismissal of March 23, 2007 Complaint
Against the Company  On January 8, 2008, after the period of
this report, the Company was notified of the dismissal of the complaint (the
Complaint), without prejudice, by the United States District Court for the
Eastern District of Pennsylvania, which had been filed against the Company, its
directors and a major investor, by Robert Moyer, its former president and chief
executive officer, on March 23, 2007.  The Complaint alleged breach of
employment contract, violation of the New York Payment of Wages Law, wrongful
discharge, unjust enrichment and civil conspiracy, all arising out of Moyers
discharge.    ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS  None    12  PART
II   ITEM 5. MARKET FOR PRECISION AEROSPACE COMPONENTS,
INC.'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS  The Company's common stock currently trades
on the OTC:BB under the trading symbol "PAOS.OB".  The following table sets forth the highest
and lowest bid prices for the common stock for each calendar quarter and
subsequent interim period since January 1, 2006 as reported on the web site Big
Charts.  It represents inter-dealer quotations, without retail markup,
markdown or commission and may not be reflective of actual transactions.   PRICES
-------------------------
HIGH
               LOW

2006
First Quarter
                                         $0.14
             $0.03
Second Quarter
                                    $0.06
             $0.01
Third Quarter
                                       $0.11
             $0.00
Fourth Quarter
                                     $0.05            $0.011

2007
First Quarter
                                       
$0.03              $0.007
Second Quarter
                                   $0.09              $0.023
Third Quarter
                                      
$0.05               
$0.03
Fourth
Quarter                                    $0.035             
$0.008  The Company presently is authorized to
issue 100,000,000 shares of common stock with a $0.001 par value. As of February
29, 2008, there were 78 holders of record of the Company's common stock and
33,324,691 shares issued and outstanding.  The Company is authorized to issue
10,000,000 shares of preferred stock with a $0.001 par value. As of February 29,
2008, there were 2 holders of record and 5,274,152 shares of series A
convertible preferred stock outstanding, each of which is convertible into 5.18
shares of the Companys common stock and there were 5 holders of record and
2,811,000 shares of series B convertible preferred stock outstanding each of
which is convertible into 2 shares of the Companys common stock (each after the
150:1 reverse split of the Companys common stock).  Dividends  Precision Aerospace has not declared or
paid cash dividends on its common stock since its inception and does not
anticipate paying such dividends in the foreseeable future.  The payment of
dividends may be made at the discretion of the Board and will depend upon, among
other factors, the Company's operations, its capital requirements, and its
overall financial condition.    13 
   ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION  General  The following discussion and analysis
should be read in conjunction with the Consolidated Financial Statements, and
the Notes thereto included herein.  The information contained below
includes statements of the Company's or management's beliefs, expectations,
hopes, goals and plans that, if not historical, are forward-looking statements
subject to certain risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking statements.
 For a discussion on forward-looking statements, see the information set
forth in the Introductory Note to this Annual Report under the caption "Forward
Looking Statements" which information is incorporated herein by reference.  Analysis of Financial Condition and Results of
Operations  The Company's operations are presently
carried out through its Freundlich subsidiary.  A description of
Freundlich's operations and marketplace is contained in section 1 of this
report.  During the fiscal year 2007 was a year of
stabilization for the Company, with the installation of new management.
 The results of this should begin to be apparent in 2008.  During 2007
the Company restored and strengthened its financial base.  Its Freundlich
subsidiary secured a $1 Million line of credit.  By the end of the year it
was able to solicit an expanded $3 Million line of credit.  Subsequent to
the period of this report, Freundlich has entered into this new and expanded
line of credit, based on qualifying receivables and inventory, secured by the
assets of Freundlich and guaranteed by the Company.  This added financial
resource will enable the Company to actively pursue activities and opportunities
to enhance the Freundlich business  including communications capabilities, an
improved web presence and enhanced order capabilities - as well as expanding
operations consistent with the Company's growth vision.  During fiscal year 2006, the Company had
invested in additional equipment and inventory to better enable Freundlich to
meet the needs of its customers.  New computer equipment as well as a new
integrated management control, inventory control, sales and shipping management
program enhance our overall operations.  The new, automated, packaging
machine enables Freundlich to more rapidly fulfill orders placed by its
customers.  The machine also provides Freundlich the ability to process
additional orders utilizing its present shipping strengths.  With these
important investments in place, the Company does not presently anticipate any
material additional capital expenditures on plant and equipment for existing
operations during 2008.  Specific year to year income statement
comparisons between 2006 and 2007 for the Company are generally not meaningful,
since the Company was inactive and had no revenues prior to its July acquisition
of the Freundlich assets and during the second half of 2006, the Companys prior
management improvidently pursued an acquisition opportunity that did not come
about, but was costly to the Company.  A loss and associated expenses of
approximately $213,000 was recognized in connection with this activity.
 Additionally, in 2006, the Company incurred extraordinary costs in
connection with its operations following the acquisition of Freundlich.
 These additional professional fees and General and Administrative
expenses, in excess of what the Company anticipates for normal operations,
exceeded $50,000.  The effect of these expenses is magnified in view of the
fact that the Company revenues and income only reflect the six months of
operation of Freundlich from its acquisition in July.  The progress the Company made can be seen
from the change and improvement in the Companys balance sheet position between
2007 and 2006.  The Company plans to build on this improvement in 2008.  The Companys overall liability exposure
was reduced by nearly $500,000 (from $3,369,425 in 2006 to $2,873,976 in 2007)
while our overall assets grew by over $275,000 (from $7,318,333 in 2006 to
$7,593,989 in 2007)  an overall improvement in stockholders equity of nearly
$775,000. from our annual sales of nearly $9,000,000.  When looking at our
retained deficit it must be remembered that the Company restarted from
non-operating status in July 2006 with a balance sheet which consisted of
virtually no assets,    14 
 but an
accumulated deficit of $2,997,934 which could not be used to offset future
taxes.  The Companys improved financial situation
and standing with our suppliers can be seen from the more than $725,000
reduction in our year end accounts payable (from $1,251,878 in 2006 to $525,407
in 2007).  This was partially funded by our line of credit which was
started during 2007 and which had a balance of $387,466 at year end.  During the 2007, year the Company paid down
its subordinated debt by $300,000 so that there was $450,000 outstanding at the
year end.  The Company did defer making a portion of
its 2007 income tax payments to 2008.  The Company did pay the safe
harbor portion of the taxes necessary to avoid any penalty assessment in
connection with its deferred payment.  The Company has now made this
approximately $500,000 deferred 2007 tax payment.  The Comany made an additional investment in
our inventory of more than $375,000 (from $3,509,183 in 2006 to $3,885,332 in
2007).  This is necessary not only to meet customer demand, but also to
replenish stocks at new, higher prices.  This required investment, which is
made with after tax dollars, diverts our scarce cash resources from other uses
which could expand our business.  It is one example of the insidious way
that higher taxes adversely affect businesses.  The Company has considered
alternatives that could reduce the tax burden, but has determined that at the
present time there is not an acceptable alternative.  For example, the
Company is concerned that relocating Freundlich from the New York City area
(where it bears among the highest tax rates in the country) would deprive it of
its long standing and excellent staff.  The Company will explore possible
actions to reduce the overall impact of the taxes on its operations without
harming those operations.  The costs of materials in the fastener industry,
and the lead-times for delivery, both continue to increase.  This has
required more astute management of inventory ordering-even if the face of
extreme uncertainty regarding actual deliveries.  Additionally, it
continues to result in the need to make additional inventory investment.  It is important to fully recognize the
value of the Freundlich inventory.  Not only does Freundlichs inventory
enable Freundlich to meet customer demand and obtain orders, but a portion of
the inventory is carried on the Companys balance sheet at a value well below
the replacement cost were it to be reordered today.  As Freundlich replaces
its lower cost inventory with new higher-priced inventory, it will have to make
this investment.  Freundlich has the strategic benefit over a potential new
entrant of having a lower cost of goods versus the seller of newly purchased
items.  The replacement cost of Freundlichs inventory is difficult to
ascertain exactly, since the cost of each particular item is generally
increasing and the unit cost usually decreases as the quantity purchased
increases.  The rise in prices which occurred in 2007 and the use of the
older inventory is substantially responsible for the rather exceptional 37%
Gross Profit Margin achieved by the Company on its slightly greater than $9
million dollars in sales.  It should be expected that, when the price
increases in the Freundlich inventory reduce in rate, this percentage will also
return to somewhat lower levels.  During the first quarter of 2007,
Freundlich was awarded a significant portion of a Defense Department contract;
its competitors received awards of significantly lesser amounts of the contract.
 Freundlich has been fulfilling and anticipates that it can continue to
fully satisfy the requirements of this contract without any additional financing
and that sales under the contract will continue to contribute to its revenues
and profits.  In December 2007, Freundlich retained the
services of Robert Serabin, a fastener industry veteran and experienced senior
executive with a sales, marketing and engineering background, to be its General
Manager.  The Company believes it can expand its business with its present
staff until acquisitions warrant additional personnel.  However, it is
possible that one or two additional staff members will be retained to augment
the growth and operation of Freundlich.  Presently, many Company level
activities are either outsourced or handled at the Freundlich level.  The opportunities presently under
consideration by the Company, in addition to the expansion of the Freundlich
operations, are the acquisition of horizontal, vertical and complementary
operations.  No    15 
 specific
acquisition opportunities or ventures are being actively pursued at this time.
 However, the Company is now in a position to actively evaluate and pursue
acquisition and joint venture opportunities.  In connection with these
opportunities, the Company will also pursue the arrangement of adequate
financing to carry out its plans.  In view of the size of the operations of
the Company's sole operating subsidiary, and the costs involved in pursuing and
consummating an acquisition, the Company will have to be selective and may have
to obtain additional anticipatory financing.  Horizontal acquisitions would effectively
improve the Company's overall volume which, in turn, would enable the Company to
take advantage of economies of scale as they pertain to inventory management and
certain administrative practices.  Vertical or synergistic acquisitions
could enhance the capability of the Company to satisfy potential customer
desires to deal with multi-product companies or to deal with companies that have
expanded service offerings not presently provided by Freundlich.  Additionally, acquisition of skills and
product lines which are complementary to the Freundlich offering could mutually
enhance the sales of each.  The present cash flow from the activities
of Freundlich and the line of credit is sufficient to meet the Companys cash
requirements, subject to the foregoing discussion regarding expansion.  Off balance sheet arrangements  None  Subsequent Events  Dismissal of March 23, 2007 Complaint
against the Company  On January 8, 2008, after the period of
this report, the Company was notified of the dismissal of the complaint (the
Complaint), without prejudice, by the United States District Court for the
Eastern District of Pennsylvania, which had been filed against the Company, its
directors and a major investor, by Robert Moyer, its former president and chief
executive officer, on March 23, 2007.  The Complaint alleged breach of
employment contract, violation of the New York Payment of Wages Law, wrongful
discharge, unjust enrichment and civil conspiracy, all arising out of Moyers
discharge.  The Companys common stock has been
re-listed on the OTC Bulletin Board  As of February 26, 2008 the companys
common stock was re-listed on the OTC Bulletin Board, this removes the adverse
impact the delisting of the securities had on the market liquidity for our
securities.  The Company entered into an Employment
Agreement with its President and Option Compensation  The Company, in its 8-K filed on March 3,
2008, reported that it had approved an employment and compensation agreement
with Andrew S. Prince, its President and CEO, which will run through September
1, 2008.  The same 8-K approved the option compensation to be received by
non-executive members of the Companys Board of Directors  Freundlich has entered into a new Three
Million Dollar line of credit guaranteed by the Company  On March 6, 2008, the Company guaranteed
the performance of Freundlich in connection with the agreement, entered into on
the same date, between Freundlich and Israel Discount Bank of New York (the
Agreement).  The Agreement, which has a maturity date of January 31,
2009, establishes a revolving funding facility which will allow Freundlich to
receive up to three (3) million dollars.  The funds will be made available
to Freundlich in accordance with an advance formula which allows for the payment
of up to Seventy-five (75) per-cent of eligible accounts and fifty (50) per-cent
of eligible inventory, up to a   16  maximum
inventory advance amount of two million five hundred thousand dollars
($2,500,000).  Eligible accounts are those domestic accounts not
outstanding for more than one hundred twenty (120) days and eligible inventory
is inventory as determined by the bank, presently that which has had sales
within the preceding sixty (60) months.  The daily rate on the outstanding
balance will be, at the Companys option, the prime rate plus one (1) per cent
or LIBOR plus three and three quarters (3.75) per cent.  The balance is
secured by a first lien position on all of Freundlichs assets.  The
Agreement replaced the Companys existing facility with Greater Bay Business
Funding.    ITEM 7.  FINANCIAL STATEMENTS  The consolidated financial statements of
Precision Aerospace required by Item 310(a) of Regulation S-B are attached to
this report. Reference is made to Item 13 below for an index to the financial
statements.  Of particular importance are the notes to
those financial statements.  Critical Accounting Policies and Estimates  Our consolidated financial statements are
prepared in accordance with accounting principles generally accepted in the
United States of America (GAAP).  These accounting principles require us
to make certain estimates, judgments and assumptions.  We believe that the
estimates, judgments and assumptions upon which we rely are reasonably based
upon information available to us at the time that these estimates, judgments and
assumptions are made.  These estimates, judgments and assumptions can
affect the reported amounts of assets and liabilities as of the date of the
financial statements, as well as the reported amounts of revenue and expenses
during the periods presented.  To the extent there are material differences
between these estimates, judgments and assumptions and actual results, our
financial statements will be affected.  In many cases, the accounting treatment of
a particular transaction is specifically dictated by GAAP and does not require
management's judgment in its application.  There are also areas in which
management's judgment in selecting among available alternatives would not
produce a materially different result.  Our senior management has reviewed
these critical accounting policies and related disclosures. See Notes to
Condensed Consolidated Financial Statements, which contain additional
information regarding our accounting policies and other disclosures required by
GAAP.   ITEM 8A. CONTROLS AND PROCEDURES  (A) Evaluation of Disclosure Controls and
Procedures  The Company carried out an evaluation,
under the supervision and with the participation of the Company's Principal
Executive Officer /Principal Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures.
 The Company's disclosure controls and procedures are designed to provide a
reasonable level of assurance of achieving the Company's disclosure control
objectives.  The Company's Principal Executive Officer/ Principal Financial
Officer has concluded that the Company's disclosure controls and procedures are
effective at this reasonable assurance level as of the period covered.  In
addition, the Company reviewed its internal controls and there have been no
changes in its internal controls during the Company's last fiscal quarter or in
other factors that have materially affected, or are reasonably likely to
materially affect, those controls subsequent to the date of their last
evaluation or from the end of the reporting period to the date of this Form
10-KSB.  Due to the size of the Company, and as a result of the
implementation of the integrated financial reporting system discussed in (b)
below, items of note are appropriately brought to the attention of the Companys
CEO for appropriate disclosure.  (B) Changes In Internal Controls Over
Financial Reporting  In connection with the evaluation of the
Company's internal controls conducted at the end of February 2008, the Company's
Principal Executive Officer/Principal Financial Officer has determined that
there are no changes to the Company's internal controls over financial reporting
that have materially adversely    17 
 affected, or are
reasonably likely to materially adversely affect, the Company's internal
controls over financial reporting.  The term "disclosure controls and
procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities
Exchange Act of 1934, as amended the ("Exchange Act").  This term refers to
the controls and procedures of a company that are designed to ensure that the
information required to be disclosed by a company in the reports that it files
under the Exchange Act is recorded, processed, summarized, and reported within
the required time periods.  The Company concludes that our disclosure
controls and procedures are effective at ensuring that required information will
be disclosed on a timely basis in our reports filed under the Exchange Act.   ITEM 8B. OTHER INFORMATION  There is no information required to have
been disclosed in a report on Form 8-K during the fourth quarter of the year
covered by this Form 10-KSB, but not reported.     18 
 PART
III    ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT  Set forth below is certain information
concerning each of the directors and executive officers of the Company as of
February 29, 2008:  Name

Age

Position

With Company
SinceAlexander Kreger

64

Director and Chairman of the Board

2006Andrew S. Prince

64

President and CEO, Principal Financial
Officer and Director

2006, Officer since 2007Robert Adler

73

Director

2006Chris Phillips

35

Secretary and Director

2006David Walters

45

Director

2006   The Company's directors are elected at the
annual meeting of stockholders and hold office until their successors are
elected.  The Company's officers are appointed by the Board of Directors
and serve at the pleasure of the Board and are subject to employment agreements,
if any, approved and ratified by the Board.  Alexander Kreger  Mr. Kreger has served as the President of
Kreger Truck Renting Company, Inc. since 1999. Mr. Kreger has a BS in accounting
and finance from the Wharton School, University of Pennsylvania.  Mr. Kreger is a member of the Companys
Audit and Compensation Committees.  Andrew S. Prince  Mr. Prince is presently President and Chief
Executive Officer of the Company.  Mr. Prince is, and for the last five
years has been, a principal of Prince Strategic Group LC, a strategic advisory
and merchant-banking group.  Prince Strategic Groups focus is strategic
planning, acquisition/disposition advice, financial restructuring and providing
crisis and interim CEO, COO management.  Mr. Prince assists large and small
organizations to develop and implement their business strategies and refine
their operations.  He has extensive experience in corporate financing,
strategic relationship and acquisition transactions, including their financial
and strategic analysis, structuring and negotiations, strategic planning and
management development activities as well as background in all facets of
operations in both small and large organizations.  From June 1, 2004-June
1, 2006, Mr. Prince was a director of CDKnet.com (OTCBB: CDKN).  Mr. Prince
is a graduate of the United States Naval Academy, Harvard Law School and Harvard
Business School.  Mr. Prince is a member of the Companys
Compensation Committee.  Robert I. Adler  From 2000 to 2002, Mr. Adler was Managing
Director for ING Furman Selz Asset Management. From 1991 to 2000, he was Vice
President, Senior Investment Officer for BHF Securities Corp. He is currently a
member of the Board of Directors of China Medicine Company, a distributor of
pharmaceutical products, including traditional Chinese herbal medicine, and
SinoEnergy Holding Co., a manufacturer of stainless steel vessels for liquid and
compressed natural gas.  Mr. Adler is Chairman of the Companys
Audit Committee.   19  Chris
Phillips  Since February 2008, Chris Phillips has
been a portfolio manager for a hedge fund. Previously from October 2004 until
January 2008, Chris served as the President and CEO of Apogee Financial
Investments, Inc., a merchant bank, who owns 100% of Midtown Partners & Co.,
LLC, a FINRA licensed broker-dealer.  Since July 2000 and up until January
2008, he acted as the managing member of TotalCFO, LLC which provides
consulting and CFO services to a number of public and private companies and high
net worth individuals.  From November 2007 through January 2008 Chris
served as the CEO and Chief Accounting Officer of OmniReliant Holdings, Inc.
(OTCBB: ORHI)Presently, he is also a Board Member of OmniReliant Holdings,
Inc. (OTCBB: ORHI). Mr. Phillips holds a Bachelors of Science Degree in
Accounting and Finance and a Masters of Accountancy with a concentration in Tax
from the University of Florida.  Mr. Phillips is a Florida licensed
Certified Public Accountant.  David Walters  David Walters co-founded Monarch Bay
Associates, LLC, a FINRA member broker dealer, in 2006. Prior to Monarch Bay
Associates, Mr. Walters was a principal with Monarch Bay Capital Group, LLC, a
firm that provided advisory services and capital for emerging growth companies.
 From 1992 through 2000 he was Executive Vice President and Managing
Director in charge of Capital Markets for Roth Capital (formerly Cruttenden
Roth) where he was instrumental in building the companys revenues from $7
million to $65 million.  As an equity partner, he managed the capital
markets group and led over 100 public and private financings, raising over $2
billion in growth capital.  Additionally, Mr. Walters oversaw a research
department that covered over 100 public companies, and was responsible for the
syndication, distribution and after-market trading of the public offerings.
 Prior to Cruttenden Roth, he was Vice President for both Drexel Burnham
Lambert and Donaldson Lufkin and Jenrette in Los Angeles, and he ran a private
equity investment fund.  Mr. Walters is Chairman of the Board of Directors
of the publicly traded companies: Remote Dynamics, Inc. (OCTBB: REDI), Monarch
Staffing, Inc. (OCTBB: MSTF.OB), and the non-publicly traded companies Bounce
Mobile Systems, Inc. and Systems Evolution, Inc., STI Group, Inc. and a director
of Lathian Systems, Inc.  Mr. Walters earned a B.S. in Bioengineering from
the University of California, San Diego.  Mr. Walters is Chairman of the Companys
Compensation Committee .and a member of the Companys Audit Committee.  Code of Ethics and Committee Charters  Drafts of a Code of Ethics and committee charters for the
Audit and Compensation committees have been prepared and are under review by the
Board of Directors but have not been formally adopted.  Code of Ethics  The Code of Ethics will apply to the Companys directors,
officers and employees.  It is under review by the Board of Directors.
 It will be available on the Companys website.  Audit Committee  The Audit Committee makes such examinations
as are necessary to monitor the corporate financial reporting and the external
audits of the Company, to provide to the Board of Directors (the Board) the
results of its examinations and recommendations derived therefrom, to outline to
the Board improvements made, or to be made, in internal control, to nominate
independent auditors and to provide to the Board such additional information and
materials as it may deem necessary to make the Board aware of significant
financial matters that require Board attention.  Compensation Committee     20 
 The compensation
committee is authorized to review and make recommendations to the Board
regarding all forms of compensation to be provided to the executive officers and
directors of the Company, including stock compensation and bonus compensation to
all employees.  Officers of the Company serving on the Compensation
committee do not participate in discussions regarding their own
compensation.  Nominating Committee  The Company does not have a Nominating Committee and the
full Board acts in such capacity.  Compliance with Section 16(a) of the
Exchange Act  Section 16(a) of the Securities Exchange
Act of 1934 requires that the Companys directors and executive officers and
persons who beneficially own more than ten percent (10%) of a registered class
of its equity securities, file with the SEC reports of ownership and changes in
ownership of its common stock and other equity securities.  Executive
officers, directors, and greater than ten percent (10%) beneficial owners are
required by SEC regulation to furnish the Company with copies of all Section
16(a) reports that they file.  Based solely upon a review of the copies of
such reports furnished to us or written representations that no other reports
were required, the Company believes that, during 2007, all filing requirements
applicable to its executive officers, directors and greater than ten percent
(10%) beneficial owners were met.   ITEM 10.  EXECUTIVE COMPENSATION  The following table sets forth information
concerning all cash and non-cash compensation awarded to, earned by or paid to
the Companys principal executive officer, and all of the other executive
officers with annual compensation exceeding $100,000, who served during the
fiscal year ended December 31, 2007, for services in all capacities to the
Company:  SUMMARY COMPENSATION TABLE  Name & Principal Position

Year

Salary
($)

Bonus
($)

Stock Awards
($)

Option Awards(1)
($)

Non-Equity Incentive Plan
Compensation
($)

Nonqualified Deferred Compensation
Earnings
($)

All Other Compensation
($)

Total
($)Robert Moyer President, CEO and Director (1)


2007

$
8,654


0


0

$



0


0

$
0
(2)
$
8,654Andrew Prince President, CEO and Director


2007

$
142,769


0


0

$
0


0


0

$
0
(2)
$
142,769  (1) Robert Moyer ceased serving in his
positions as President and CEO on January 18, 2007 and was replaced by Andrew
Prince.  (2) Messrs. Moyer (until his departure) and
Prince (upon replacing Mr. Moyer) served as directors of the Company, but
without compensation for their director services.  Mr. Prince had, until
the time he replaced Mr. Moyer, served as a paid director of the Company.    21  Compensation of
Directors  The following table sets forth information
with respect to directors compensation for the fiscal year ended December 31,
2007:  DIRECTOR COMPENSATION  Name

Fees Earned or Paid in Cash
($)

Stock Awards ($)

Option Awards ($)

Non-Equity Incentive Plan Compensation
($)

Nonqualified Deferred Compensation
Earnings

All Other Compensation
($)

Total
($)Robert Adler

$
9,000
















$
9,000Alex Kreger

$
7,000
















$
7,000Chris Phillips

$
3,000
















$
3,000Andrew Prince

$
4,500
















$
4,500David Walters

$
10,000
















$
10,000  Non-employee Directors of the Company are
paid $2,500 per meeting for board meeting attendance in person and $1,500 per
meeting for board meeting attendance by phone and $1,500 per meeting for each
committee meeting.  To conserve cash, certain directors payments were not
made when earned in 2007.    22 
   ITEM 11.  SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.  The following table sets forth certain
information with respect to the beneficial ownership of the Common Stock of the
Company as of February 25, 2008, for: (i) each person who is known by the
Company to beneficially own more than 5 percent of the Companys Common Stock,
(ii) each of the Companys directors, (iii) each of the Companys Named
Executive Officers, and (iv) all directors and executive officers as a group. As
of February 25, 2008, the Company had 33,324,691 shares of Common Stock
outstanding.  Name and Address
of Beneficial Owner (1)

Shares Beneficially
Owned

Percentage of Shares Beneficially
Owned

Percentage of Total Voting
Power

PositionRichard Kreger
245 Park Av
New York, NY 10167


69,111,309
(2)

69.1
%

69.1
%Alex Kreger


13,692,000


13.7
%

13.7
%

Executive Chairman
& DirectorBGRS
12333 Fairy Hill Road
Rydal, PA 19046


3,150,000


3.2
%

3.2
%Aimee Brooks
12 Graham Terrace
Montclair, NJ 07042


1,722,000


1.7


1.7Robert Adler


0


0


0


DirectorChris Phillips


0


0


0


Director SecretaryAndrew Prince


0


0


0


Director President and CEODavid Walters











DirectorDirectors and Executive Officers as a Group
(5 persons)


13,692,000


13.7
%

13.7
%   (1)
Except where otherwise indicated, the
address of the beneficial owner is deemed to be the same address as the
Company.  (2)
Includes all shares of Common Stock, up to the
maximum presently authorized shares of Company common stock issuable, upon
conversion of either convertible preferred series A stock or Series A or
Series B warrants held by Mr. Richard Kreger.  Were sufficient shares
of Company common stock available, and all warrants and conversion of
preferred series A possible, a total of 592, 486,771 shares could be held
by Mr. Kreger.  Securities Authorized for Issuance Under Equity
Compensation Plans  The Company has no presently active
plan.   23    ITEM 12. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE  On July 20, 2006, the Company entered into
an exchange agreement (the Exchange Agreement) pursuant to which the Company
acquired all of the equity of Delaware Fastener Acquisition Corp., a Delaware
corporation (DFAC), pursuant to an exchange agreement with the stockholders of
DFAC.  The stockholders of DFAC included our chairman, Alex Kreger, his son
Richard Kreger and daughter, Aimee Brooks (the Related Parties).
 Contemporaneously, DFAC acquired the assets, subject to certain
liabilities, of Freundlich Supply Company, Inc. (Freundlich Supply) pursuant
to an asset purchase agreement (the Asset Purchase Agreement) dated May 24,
2006 among DFAC, Freundlich Supply and Michael Freundlich.  The purchase of
the assets was financed by the proceeds from the sale by the Company of its
securities pursuant to a securities purchase agreement (the Securities Purchase
Agreement).  The overall transaction involved an investment of $5,750,000
(five million seven hundred fifty thousand dollars) and the Related Parties
obtained an eventual approximate 16% interest in the Company (assuming full
conversion of the convertible preferred series A and B shares and the
convertible note and no adjustment to the conversion prices).  As a result
of the Exchange Agreement, DFAC became a wholly-owned subsidiary of the Company.
 Upon completion of the foregoing transactions, the Company changed its
name to Precision Aerospace Components, Inc. and DFAC changed its name to
Freundlich Supply Company, Inc.  In connection with the transactions
described above, Midtown Partners, with whom Mr. Richard Kreger is a vice
president, an investor in the Securities Purchase Agreement, and the son of the
Companys Chairman, Alex Kreger, obtained 250,000 of the Companys series B
Convertible Preferred shares.  These shares were received from the shares
paid by the Company to DFAC.  Midtown Partners & Co., LLC is a
registered broker  dealer.   ITEM 13. EXHIBITS  Listed in the Exhibit Index on page 26 hereof.   ITEM 14. PRINCIPAL ACCOUNTANT FEES AND
SERVICES  Audit Fees  The aggregate fees billed or to be billed
for professional services rendered by our independent registered public
accounting firms for the audit of our annual financial statements, review of
financial statements included in our quarterly reports and other fees that are
normally provided by the accounting firms in connection with statutory and
regulatory filings or engagements for the fiscal years ended December 31, 2007
and 2006 were: $66,975 for 2007 and $76,586 for 2006,.  Audit Related Fees  The aggregate fees billed or to be billed
for audit related services by the Companys independent registered public
accounting firms that are reasonably related to the performance of the audit or
review of our financial statements, other than those previously reported in this
Item 14, for the fiscal years ended December 31, 2007 and 2006 were $-0- in 2007
and $-0-in 2006.  Tax Fees  The aggregate fees billed for professional
services rendered by the Companys independent registered public accounting
firms for tax compliance, tax advice and tax planning for the fiscal year ended
December 31, 2007 and 2006 were $5,000 in 2007 and $-0-in 2006.   24   All Other Fees  The aggregate fees billed for products and
services provided the Companys independent registered public accounting firms
for the fiscal years ended December 31, 2007 and 2006 were $-0- in 2007 and
$-0-in 2006.  Audit Committee  Our Audit Committee implemented
pre-approval policies and procedures for our engagement of the independent
auditors for both audit and permissible non-audit services.  Under these
policies and procedures, all services provided by the independent auditors must
be approved by the Audit Committee  or Board of Directors prior to the
commencement of the services, subject to certain de-minimus non-audit service
(as described in Rule 2-01(c)(7)(C) of Regulation S-X) that do not have to be
pre-approved as long as management promptly notifies the Audit Committee of such
service and the Audit Committee or Board of Directors approves it prior to the
service being completed.  All of the services provided by our independent
auditors have been approved in accordance with our pre-approval policies and
procedures.   SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange
Act, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.  PRECISION AEROSPACE COMPONENTS,
INC.Date: March 26, 2008
By
/s/ Andrew S. PrinceAndrew S. Prince
President and Chief Executive
Officer  In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.  Signature

Title

Date/s/ Andrew S. Prince

President, Chief Executive Officer and
Director

March 26, 2008Andrew S. Prince

(Principal Executive Officer and Principal
Financial Officer)/s/ Alexander Kreger

Chairman of the Board of Directors

March 26, 2008Alexander Kreger/s/ Robert Adler

Director

March 26, 2008Robert Adler/s/ Chris Philips

Director

March 26, 2008Chris Philips/s/ David Walters

Director

March 26, 2008David Walters   25   Exhibits:         EXHIBIT
NO.3.1

Certificate of Incorporation

Incorporated by reference to Exhibit 3.1 to the
Companys Report on Form 8-K as filed with the United states Securities
and Exchange Commission on July 27, 20063.2

By-laws

Incorporated by reference to Exhibit 3.2 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 20063.3

Series A Preferred Stock Certificate of
Designation

Incorporated by reference to Exhibit 3.3 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 20063.4

Series B Preferred Stock Certificate of
Designation

Incorporated by reference to Exhibit 3.4 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 200610.1

Asset Purchase Agreement by and among Delaware
Fastener Acquisition Corporation, Michael Freundlich and Freundlich Supply
Company, Inc.

Incorporated by reference to Exhibit 10.1 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 200610.2

Securities Purchase Agreement by and among Jordan 1
Holdings Company, Barron Partners LP and Certain Equity Investors

Incorporated by reference to Exhibit 10.2 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 200610.3

Registration Rights Agreement

Incorporated by reference to Exhibit 10.3 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 200610.4

Convertible Note

Incorporated by reference to Exhibit 10.4 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 200610.5

Form of Series A Warrant

Incorporated by reference to Exhibit 10.5 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 200610.6

Form of Series B Warrant

Incorporated by reference to Exhibit 10.2 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on July 27, 2006  10.7

Contract of Sale and Security Agreement between
Freundlich Supply Company, Inc. and Greater Bay Business Funding

Incorporated by reference to Exhibit 10.1 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on March 19, 200710.8

Amendment to Contract of Sale and Security
Agreement between Freundlich Supply Company, Inc. and Greater Bay Business
Funding.

Incorporated by reference to Exhibit 10.2 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on March 19, 200710.9

Guaranty between Greater Bay Business Funding and
Freundlich Supply Company, Inc. and Precision Aerospace Components, Inc.

Incorporated by reference to Exhibit 10.3 to the
Companys Report on Form 8-K as filed with the United States Securities
and Exchange Commission on March 19, 200710.10

Loan and Security Agreement as of March 6, 2008, by
and among Freundlich Supply Company, Inc. (borrower) Precision Aerospace
Components, Inc. (guarantor) and Israel Discount Bank of New York (lender)

Provided herewith23.1

Consent of Bagell, Josephs, Levine & Company,
L.L.C.

Provided herewith  31.1

Certification of Principal Executive
Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934, the Act.

Provided herewith31.2

Certification of Principal Financial
Officer pursuant to Rule 13a-14(a) of
 the Act.

Provided herewith32.1

Certifications of Principal Executive
Officer and Principal Financial Officer
pursuant to 18  U.S.C. Section
 1350.

Provided herewith      26     PRECISION AEROSPACE COMPONENTS, INC. (FORMERLY JORDAN 1 HOLDINGS COMPANY) CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2007 AND 2006     PRECISION AEROSPACE COMPONENTS, INC. (FORMERLY JORDAN 1 HOLDINGS COMPANY) CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2007 AND 2006   CONSOLIDATED
FINANCIAL STATEMENTS: Pages   Report
of Independent Registered Public Accounting Firm  4  Consolidated
Balance Sheet as of December 31, 2007 5  Consolidated
Statements of Income for the Years Ended December
31, 2007 and 2006 6  Consolidated
Statement of Stockholders Equity for the Years Ended
December 31, 2007 and 2006 7   Consolidated
Statement of Temporary Equity for the Years Ended
December 31, 2007 and 2006 8  Consolidated
Statement of Cash Flows for the Years Ended
December 31, 2007 and 2006 9  Notes
to Consolidated Financial Statements 10
 21      BAGELL, JOSEPHS, LEVINE & COMPANY, L.L.C. Certified
Public Accountants  406 Lippincott
Drive, Ste. J Marlton, NJ
08053-4168 (856) 346-2828   Fax (856)
396-0022     REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   Board of Directors and Stockholders Precision Aerospace Components, Inc. 2200 Arthur Kill Rd. Staten Island, NY 10309   We have audited the accompanying
consolidated balance sheet of Precision Aerospace Components, Inc. (the
Company) as of December 31, 2007, and the related consolidated statements of
income, stockholders equity and cash flows for each of the years in the
two-year period ended December 31, 2007.  The Companys management is
responsible for these financial statements.  Our responsibility is to
express an opinion on these financial statements based on our audits.  We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States).
 Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  The company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting.  Our
audit included consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the
companys internal control over financial reporting.  Accordingly, we
express no such opinion.  An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for
our opinion.  In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the
financial position of Precision Aerospace Components, Inc. as of December 31,
2007 and 2006, and the results of its operations and its cash flows for each of
the years in the two-year period ended December 31, 2007 in conformity with
accounting principles generally accepted in the United States of America.   /s/ BAGELL, JOSEPHS, LEVINE
& COMPANY, L.L.C. Bagell, Josephs, Levine &
Company, L.L.C. Marlton, NJ 08053  March 24, 2008  4     PRECISION AEROSPACE COMPONENTS, INC.(FORMERLY JORDAN 1 HOLDINGS COMPANY)CONSOLIDATED BALANCE SHEETDECEMBER 31, 2007ASSETSCURRENT
ASSETSCash and cash
equivalents
$
154,709Accounts
receivable, net

837,552Inventory,
net

3,885,3324,877,593PROPERTY AND
EQUIPMENT - Net

260,582OTHER
ASSETSDeposits

12,700Goodwill

2,443,1142,455,814TOTAL
ASSETS
$
7,593,989LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITYCURRENT
LIABILITIESAccounts
payable and accrued expenses
$
606,627Subordinated
note payable-current portion

300,000Line of
credit

387,466Income taxes
payable

429,8831,723,976LONG -TERM
LIABILITIESSubordinated
note payable-long term portion

150,000Convertible
note payable

1,000,000TOTAL
LIABILITIES

2,873,976   TEMPORARY
EQUITYPreferred Stock
A $.001 par value; 7,100,000 shares authorized5,274,152
shares issued and outstanding

5,274Preferred Stock
B $.001 par value; 2,900,000 shares authorized2,811,000
shares issued and outstanding

2,811Additional
paid-in capital -warrants

843,272851,357STOCKHOLDERS'
EQUITYPreferred Stock
A $.001 par value; 7,100,000 shares authorized5,274,152
shares issued and outstanding

-Preferred Stock
B $.001 par value; 2,900,000 shares authorized2,811,000
shares issued and outstanding

-Common stock,
$.001 par value; 100,000,000 shares authorized33,324,691
shares issued and outstanding

33,325Additional
paid-in capital

5,808,675Retained
earnings (deficit)

(1,973,344)TOTAL
STOCKHOLDERS'  EQUITY

3,868,656TOTAL
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
$
7,593,989    The accompanying notes are an integral part of these
financial statements.    5     PRECISION AEROSPACE COMPONENTS, INC.(FORMERLY JORDAN 1 HOLDINGS COMPANY)CONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2007 AND
20062007


2006REVENUE

$
8,961,990

$
4,951,927COSTS OF
GOODS SOLD


5,627,081


3,156,837GROSS
PROFIT


3,334,909


1,795,090OPERATING
EXPENSESGeneral
and administrative expenses


1,581,604


1,255,197Professional
fees


218,143


131,845Depreciation


78,711


23,770Total
Expenses


1,878,458


1,410,812INCOME
BEFORE OTHER INCOME (EXPENSE)


1,456,451


384,278OTHER INCOME
(EXPENSE)Expiration of
warrants


50,000


-Interest
income


899


2,934Interest
expense


(250,686)


(52,361)Loss on
abandonment-deposit


(30,000)


-(229,787)


(49,427)INCOME
BEFORE PROVISION FOR INCOME TAXES


1,226,664


334,851Provision for
income taxes


455,559


101,366NET INCOME
APPLICABLE TO COMMON SHARES

$
771,105

$
233,485NET INCOME
PER BASIC SHARES

$
0.02

$
0.01  NET INCOME
PER DILUTED SHARES

$
0.00

$
0.00WEIGHTED
AVERAGE NUMBER OF BASIC COMMONSHARES
OUTSTANDING


33,324,691


36,265,493WEIGHTED
AVERAGE NUMBER OF FULLY DILUTEDCOMMON
SHARES OUTSTANDING


8,999,309,761


6,913,003,091   The accompanying notes are an integral part of these
financial statements.    6    PRECISION AEROSPACE COMPONENTS, INC.(FORMERLY JORDAN 1 HOLDINGS COMPANY)CONSOLIDATED STATEMENT OF STOCKHOLDERS'
EQUITYFOR THE YEARS ENDED DECEMBER 31, 2007 AND
2006AdditionalPreferred Stock-Series A

Preferred Stock-Series B

Common Stock

paid-in

Accumulated

TreasuryShares

Amount

Shares

Amount

Shares

Amount

Capital

(Deficit)

Stock

TotalBalance, January 1, 2006

-

$
            -

-

$
            -

39,677,966

$
          39,678

$
        2,906,589

(2,977,934)

$   (17,833)

$
        (49,500)Stock conversion

-

-

2,611,000

2,611

(8,000,000)

(8,000)

5,389

-

-

-Treasury Stock

-

-

-

-

15,025

15

(17,848)

-

17,833

-Issuance of preferred stock

5,277,778

5,278

200,000

200

-

-

3,759,445

-

-

3,764,923Conversion of preferred stock to common
stock

(3,626)

(4)

-

-

1,631,700

1,632

(1,628)

-

-

-Transfer to Temporary Equity

(5,274,152)

(5,274)

(2,811,000)

(2,811)

-

-

(843,272)

-

-

(851,357)Net Income

-

-

-

-

-

-

-

233,485

-

233,485Balance, December 31, 2006

-

-

-

-

33,324,691

33,325

5,808,675

(2,744,449)

-

3,097,551Net Income

-

-

-

-

-

-

-

771,105

-

771,105Balance, December 31, 2007

-

$
            -

-

$
            -

33,324,691

$
          33,325

$
        5,808,675

$
        (1,973,344)

$
           -

$     3,868,656   The accompanying notes are an integral part of these
financial statements.  7     The accompanying notes are an integral part of these
financial statements. 8


PRECISION AEROSPACE COMPONENTS, INC.(FORMERLY JORDAN 1 HOLDINGS COMPANY)CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2007 AND
20062007


2006CASH FLOWS
FROM OPERATING ACTIVITIESNet
income


$
771,105

$
233,485Adjustments
to reconcile net income to net cash(used in)
operating activities:Depreciation
and amortization



78,711


23,770Changes in
assets and liabilities:Decrease
(increase) in assetsDecrease
(increase) in accounts receivable



(52,754)


328,888(Increase)
in inventory



(376,149)


(988,030)Decrease
(increase)  in prepaid expenses and other assets



62,926


(52,980)Decrease
(increase)  in security deposits



117,000


(129,300)Increase
(decrease) in liabilitiesIncrease
(decrease) in accounts payable and accrued expenses



(861,433)


665,072Increase
in income taxes payable



328,517


101,366Decrease
in redeemable warrants



(50,000)


-Total
adjustments



(753,182)


(51,214)Net cash
provided by operating activities



17,923


182,271CASH FLOWS
FROM INVESTING ACTIVITIESAdditions
to property and equipment



(17,774)


(145,288)Acquistion
of Freundlich Supply Co. Inc.



-


(5,263,943)Intanible
Assets



-


(221,369)Net cash
(used in) investing activities



(17,774)


(5,630,600)   CASH FLOWS
FROM FINANCING ACTIVITIESProceeds
from issuance of preferred stock



-


4,750,000Proceeds
from convertible note



-


1,000,000Retirement
of Common stock



-


(550,000)Expenses
associated with the sale of common stock



-


(435,077)Proceeds
from issuance of short term loan payable - Greater Bay



387,466


-Proceeds
(payment) of principal of subordinated note payable



(300,000)


750,000Net cash
provided by financing activities



87,466


5,514,923INCREASE IN
CASH AND CASH EQUIVALENTS



87,615


66,594CASH AND
CASH EQUIVALENTS - BEGINNING OF YEAR



67,094


500CASH AND
CASH EQUIVALENTS - END OF YEAR


$
154,709

$
67,094SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:Cash paid
during the year for:Interest
expense


$
250,686

$
49,427Income
taxes paid


$
125,398

$
-   The accompanying notes are an integral part of these
financial statements.   9   1. HISTORY
AND NATURE OF BUSINESS  Precision Aerospace Components (Precision
Aerospace or the Company) was previously known as Jordan 1 Holdings Company
(Jordan 1) and was incorporated in Delaware on December 28, 2005.  Jordan
1 is the successor to Gasel Transportation Lines, Inc. ("Gasel"), an Ohio
corporation that was organized under the laws of the State of Ohio on January
27, 1988.  Gasel was a trucking company that filed for
bankruptcy in the Southern District of Ohio, Eastern Division, in May of 2003.
 On December 12, 2005, a final plan of reorganization was approved by the
court and the bankruptcy proceeding was dismissed.  On December 30, 2005, Gasel entered into a
private sale of stock under a Stock Purchase Agreement with Venture Fund I,
Inc., a Nevada corporation.  Subsequent to December 30, 2005, Jordan 1
did not engage in any business activity until July 20, 2006 when it entered into
an exchange agreement (the Exchange Agreement) pursuant to which the Company
acquired all of the equity of Delaware Fastener Acquisition Corp., a Delaware
corporation (DFAC), pursuant to an exchange agreement with the stockholders of
DFAC.  Contemporaneously, DFAC acquired the assets, subject to certain
liabilities, of Freundlich Supply Company, Inc. (Freundlich Supply), pursuant
to an asset purchase agreement (the Asset Purchase Agreement) dated May 24,
2006 among DFAC, Freundlich Supply, and Michael Freundlich.  The purchase
of the assets was financed by the proceeds from the sale by the Company of its
securities pursuant to a securities purchase agreement (the Securities Purchase
Agreement).  As a result of the Exchange Agreement, DFAC became a
wholly-owned subsidiary of the Company.  Upon completion of the foregoing
transactions, the Company changed its name to Precision Aerospace Components,
Inc. and DFAC changed its name to Freundlich Supply Company, Inc. (Freundlich)
 The Company has received additional financing and has acquired assets
which have a long history of profitable operations.  However, although the
Company after the acquisition of the Freundlich Supply assets can not recognize
the accumulated earnings which resulted from those assets prior to their sale,
the Company is required to continue to recognize the accumulated deficit of
$2,977,934 which it had as of December 31, 2005.  This deficit is the
result of its prior and now discontinued operations.  The Company will not
derive any tax benefit from this accumulated deficit.  The Companys present sole operating
subsidiary and sole source of revenues is Freundlich.  Freundlich is a stocking distributor of
aerospace quality, internally-threaded fasteners.  The organization from
which the operating assets were acquired was founded in 1938 and had been
operating in its present business line since 1940.  The Company distributes
high-quality, domestically-manufactured nut products that are used primarily for
aerospace and military applications and for industrial/commercial applications
that require a high level of certified and assured quality.  The Companys
products are manufactured, by others, to exacting specifications and are made
from raw materials that provide strength and reliability required for aerospace
applications.  Freundlich is a niche player in the North
American aerospace fastener industry.  The Company currently focuses
exclusively on aero-space quality nut products, serving as an authorized
stocking distributor for seven of the premier nut manufacturers in the United
States.  Freundlich is a one-stop source for
standard, self-locking, semi-special and special nuts manufactured to several
military, aerospace and equivalent specifications.  The Company maintains a
large inventory of more than 7,000 SKUs comprised of more than 35 million parts
of premium quality, brand name nut products.  Management believes that the
Company's demonstrated ability to immediately fulfill a high percentage
(approximately 45 percent) of customer orders from stock-on-hand gives
Freundlich a distinct competitive advantage in the marketplace.  The
Company sells its products pursuant to written purchase orders it receives from
its customers.  All products are shipped via common carrier. 10   2. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES  Principles of Consolidation and Basis of
Presentation  The consolidated financial statements
include the accounts of the Company and its wholly owned subsidiary.  All
inter-company accounts have been eliminated.  Cash and Cash Equivalents  For the purposes of the consolidated
statements of cash flow, the Company considers all highly liquid debt
instruments purchased with maturity of three months or less to be cash
equivalents.  Accounts Receivable and Allowance for
Doubtful Accounts  Accounts receivable are recorded net of
reserves for sales returns and allowances and net of provisions for doubtful
accounts.  The Company records an allowance for doubtful accounts to allow
for any amounts that may not be recoverable.  The amount of the allowance
is based on an analysis of the Companys prior collection experience, customer
credit worthiness, and current economic trends.  Based on managements
review of accounts receivable, no allowance for doubtful accounts is considered
necessary.  The Company determines receivables to be past due based on the
payment terms of original invoices.  Interest is not typically charged on
past due receivables.  Allowance for doubtful accounts was $0 for
December 31, 2007 and 2006, respectively.  Inventory  Inventory is stated at the lower of cost or
market, utilizing the specific lot identification method (except as noted
subsequently).  The Company is a distributor of goods that retain their
value and may be purchased by its customers for an extended period of time.
 The Company has adopted the convention that any Inventory item for which
the Company has not had any transactions within the past five years shall be
reduced to a zero value.  Inventory consists of finished goods for resale
at December 31, 2007. The Company has not established a valuation allowance for
inventory.    Property and Equipment  Property and equipment are stated at cost
less accumulated depreciation and amortization.  The Company computes
depreciation and amortization using the straight-line method over the estimated
useful lives of the assets acquired as follows:    ** Shorter of life or lease term.  The carrying amount of all long-lived
assets is evaluated periodically to determine whether adjustment to the useful
life or to the unamortized balance is warranted.  Such evaluation is based
principally on the expected utilization of the long-lived assets.  11    2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)  Goodwill and Other Intangible
Assets  In June 2001, the Financial Accounting
Standards Board (FASB) issued Statement No. 142 Goodwill and Other Intangible
Assets.  This statement addresses financial accounting and reporting for
acquired goodwill and other intangible assets and supersedes APB Opinion No. 17,
Intangible Assets.  It addresses how intangible assets that are acquired
individually or with a group of other assets (but not those acquired in a
business combination) should be accounted for in financial statements upon their
acquisition.  This Statement also addresses how goodwill and other
intangible assets should be accounted for after they have been initially
recognized in the financial statements.  In conjunction with the purchase
of Freundlich assets and acquisition of DFAS in July 2006 goodwill was
recognized at $2,443,114.  Impairment, if any, is based on the excess of
the carrying amount over the fair value of those assets. The Company tests for
impairment on an annual basis. The Company has determined that no impairment is
needed at December 31, 2007.  Income Taxes  The Company accounts for income taxes in
accordance with Statements of Financial Accounting Standards No. 109,
Accounting for Income Taxes, which requires an asset and liability approach to
financial accounting and reporting for income taxes.  Deferred income taxes
and liabilities are computed annually for differences between the financial
statement and the tax basis of assets and liabilities that will result in
taxable or deductible amounts in the future based on enacted tax laws and rates
applicable to the periods in which the differences are expected to affect
taxable income.  Valuation allowances are established when necessary to
reduce deferred tax assets to the amount expected to be realized.  Earnings per Common Share  Basic earnings per share is calculated by
dividing net income attributable to common stockholders by the weighted average
number of outstanding common shares during the year.  Basic earnings per
share exclude any dilutive effects of options, warrants and other stock-based
compensation, which are included in diluted earnings per share.  Revenue Recognition  Revenues are recognized when title,
ownership and risk of loss pass to the customer.  A sale occurs at the time
of shipment from the Companys warehouse in Staten Island, New York, as the
terms of the Companys sales are FOB shipping point.  Estimates  The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting periods.  Actual results could differ from those
estimates.   Fair Value of Financial
Instruments  The carrying amounts reported in the
consolidated balance sheet for cash, certificates of deposit, accounts
receivable, accounts payable and accrued liabilities approximate fair value
because of the immediate or short-term maturity of the financial
instruments.  The Company
believes that its indebtedness approximates fair value based on current yields
for debt instruments with similar terms.  12


2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)  Concentration of Credit Risk  Sales to the United
States Department of Defense (DOD) represented approximately 37 percent of our
total sales.  No other customer accounted for greater than 10 percent of
our total sales and the Company has no substantial concentrations of credit risk
in its trade receivables.  Gross Profit  The Company determines
its gross profit by subtracting cost of goods sold from sales.  Cost of
goods sold includes the cost of the products sold and excludes costs for
selling, general and administrative expenses, which are reported separately in
the income statement.  Shipping and Handling Costs and Fees  The Company records
freight cost on merchandise purchased to cost of goods.  Recent Accounting Pronouncements  In February 2006,
the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial
Instruments, an amendment of FASB Statements No. 133 and 140. SFAS
No. 155 resolves issues addressed in SFAS No. 133 Implementation Issue
No. D1, Application of Statement 133 to Beneficial Interests in
Securitized Financial Assets, and permits fair value remeasurement for any
hybrid financial instrument that contains an embedded derivative that otherwise
would require bifurcation, clarifies which interest-only strips and
principal-only strips are not subject to the requirements of SFAS No. 133,
establishes a requirement to evaluate interests in securitized financial assets
to identify interests that are freestanding derivatives or that are hybrid
financial instruments that contain an embedded derivative requiring bifurcation,
clarifies that concentrations of credit risk in the form of subordination are
not embedded derivatives and amends SFAS No. 140 to eliminate the
prohibition on a qualifying special-purpose entity from holding a derivative
financial instrument that pertains to a beneficial interest other than another
derivative financial instrument. SFAS No. 155 is effective for all
financial instruments acquired or issued after the beginning of the first fiscal
year that began after September 15, 2006. The implementation of this
pronouncement had no impact on the Companys financial position or results of
operations.  In March 2006,
the FASB issued SFAS No. 156, Accounting for Servicing of Financial
Assets, an amendment of FASB Statement No. 140. SFAS No. 156 requires
an entity to recognize a servicing asset or liability each time it undertakes an
obligation to service a financial asset by entering into a servicing contract
under a transfer of the servicers financial assets that meets the requirements
for sale accounting, a transfer of the servicers financial assets to a
qualified special-purpose entity in a guaranteed mortgage securitization in
which the transferor retains all of the resulting securities and classifies them
as either available-for-sale or trading securities in accordance with SFAS
No. 115, Accounting for Certain Investments in Debt and Equity Securities
and an acquisition or assumption of an obligation to service a financial asset
that does not relate to financial assets of the servicer or its consolidated
affiliates. Additionally, SFAS No. 156 requires all separately recognized
servicing assets and servicing liabilities to be initially measured at fair
value, permits an entity to choose either the use of an amortization or fair
value method for subsequent measurements, permits at initial adoption a one-time
reclassification of available-for-sale securities to trading securities by
entities with recognized servicing rights and requires separate presentation of
servicing assets and liabilities subsequently measured at fair value and
additional disclosures for all separately recognized servicing assets and
liabilities. SFAS No. 156 is effective for transactions entered into after
the beginning of the first fiscal year that began after September 15, 2006.
 The implementation of this pronouncement had no impact on the Companys
financial position or results of operations.  In September 2006, the
FASB issued SFAS No. 157 Fair Value Measurements, which provides a
definition of fair value, establishes a framework for measuring fair value and
requires expanded disclosures about fair value measurements.
SFAS No. 157 is effective for financial statements issued for fiscal
years beginning after November 15, 2007 and interim periods within those
fiscal years.  13


2. Summary of Significant Accounting
Policies (CONTINUED)  Recent Accounting Pronouncements
(Continued)  The provisions of SFAS No. 157
should be applied prospectively.  Management believes this will have no
material impact on Companys financial condition and results of operations.  In September 2006, the FASB issued
SFAS No. 158 Employers Accounting for Defined Benefit Pension and
Other Postretirement Plans, which amends SFAS No. 87 Employers
Accounting for Pensions (SFAS No. 87), SFAS No. 88
Employers Accounting for Settlements and Curtailments of Defined Benefit
Pension Plans and for Termination Benefits (SFAS No. 88),
SFAS No. 106 Employers Accounting for Postretirement Benefits Other
Than Pensions (SFAS No. 106), and SFAS No. 132R Employers
Disclosures about Pensions and Other Postretirement Benefits (revised 2003)
(SFAS No. 132R). This Statement requires companies to recognize an
asset or liability for the overfunded or underfunded status of their benefit
plans in their financial statements. SFAS No. 158 also requires the
measurement date for plan assets and liabilities to coincide with the sponsors
year end. The standard provides two transition alternatives related to the
change in measurement date provisions. The recognition of an asset and liability
related to the funded status provision is effective for fiscal year ending after
December 15, 2006 and the change in measurement date provisions is
effective for fiscal years ending after December 15, 2008.  The
Company has no defined benefit pension plans at this time and therefore this
pronouncement has no effect on the Company.  In February 2007, the FASB issued SFAS No.
159, The Fair Value Option for Financial Assets and Liabilities, including an
amendment of FASB Statement No. 115 (SFAS No. 159). SFAS No. 159 permits
entities to choose, at specified election dates, to measure many financial
instruments and certain other items at fair value that are not currently
required to be measured at fair value. Unrealized gains and losses shall be
reported on items for which the fair value option has been elected in earnings
at each subsequent reporting date. SFAS No. 159 is effective for fiscal years
beginning after November 15, 2007. Early adoption is permitted as of the
beginning of a fiscal year that begins on or before November 15, 2007, provided
the entity also elects to apply the provisions of SFAS No. 157 Fair Value
Measurements (SFAS No. 157).  Management believes this will have no
material impact on Companys financial condition and results of operations.   3. PROPERTY AND EQUIPMENT     14   4. ACCOUNTS
PAYABLE AND ACCRUED EXPENSES  Accounts payable and accrued expenses as of
December 31, 2007 consist of the following:   5. COMMITMENTS AND CONTINGENCIES  The
Company leases office space for its operations under a lease which expires July
20, 2008.  The lease has options for renewal.  The rental rate is
$12,000 per month.  On March 14, 2007 the Company guaranteed
the performance of Freundlich in connection with the agreement (entered into on
the same date) between Freundlich and Greater Bay Business Funding (the
Agreement).  The Agreement, which has a maturity date of March 13, 2008,
provides for Freundlich to sell all of its accounts receivable to Greater Bay
Business Funding in return for a revolving invoice funding facility which will
allow Freundlich to receive up to one million dollars ($1,000,000).  The
funds will be made available to Freundlich in accordance with an pre-determined
formula which allows for the payment of up to eighty per-cent (80%) of eligible
accounts.  Eligible accounts are those not outstanding for more than ninety
(90) days.  The daily rate on the outstanding balance is the prime rate as
existing from time to time plus four per cent (4%).  Freundlich is required
to maintain a minimum daily outstanding advance balance of two hundred thousand
dollars ($200,000).  The balance is secured by a first lien position on all
of Freundlichs assets.  This obligation was replaced on March 6, 2008.   6. INCOME TAXES Income taxes are
provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due.  Significant components of the income tax
provision for the years ended December 31 are as follows: Although the Company has a stockholders equity deficit of
1,973,344 there are no net operating losses available to be used against taxable
income.  15    7. EARNINGS PER COMMON SHARE AND COMMON
EQUIVALENT SHARE  Earnings per common and common equivalent
share were computed by dividing net income by the weighted average number of
shares of common stock outstanding during the period.  At December 31, 2007
and 2006, the number of common shares was increased by the number of shares
issuable upon the exercise of outstanding stock options and warrants and the
conversion of Series A and Series B Preferred Stock and the convertible note.
 In July 31, 2007 the conversion ratios of the Series A Preferred stock and
the convertible note were adjusted.  The following data shows the amounts used
in computing earnings per share (EPS) and the effect on income and the weighted
average number of shares of dilutive potential common stock.      16    8. LONG-TERM DEBT AND LINE OF CREDIT  Long-term debt as of December 31, 2007
consists of the following:     Future principal payments on long-term
debt for the next 5 years are as follows:      Line of Credit  $1,000,000 available
to draw revolving invoice credit facility.  Availability of payment of up
to eighty (80) per-cent of eligible accounts.The balance is secured by a first lien position on all of
Freundlichs assets at a variable rate of Prime plus 4% (11.25% on December 31,
2007).The facility is due as of
March 13, 2008.  As of December 31, 2007, $387,466 was outstanding.
 The line was replaced in March, 2008.  17     9. ACQUISITION  On July 20, 2006, the Company acquired all
the assets and certain liabilities of Freundlich Supply, a New York corporation
which operated as a distributor of fasteners to the aerospace industry.
 The purchase price totaled $5,263,943, consisting of the original purchase
price of $5,000,000 plus $263,943 working capital adjustment.  The asset
purchase agreement provided that the purchase price would be adjusted to the
extent of the Sellers net working capital (defined as the excess of accounts
receivable, inventory and prepaid expenses over accounts payable and accrued
expenses) exceeded, or was less than, $2,280,000 at closing.  Net working
capital totaled $2,543,943 at closing, and accordingly, the purchase price was
increased by $263,943.  The acquisition was recorded by allocating
the cost of the assets acquired and liabilities assumed based upon their
estimated fair value at the acquisition date.  The excess of the cost of
the acquisition over the net of the amounts assigned to the fair value of the
assets acquired and the liabilities assumed was recorded as goodwill.  The fair value of the assets and liabilities was
determined and the purchase price was allocated as follows:  Additionally, $221,369 was recognized as Goodwill for
the profit of 20 days, for the period of July 1-20, 2006.  10. STOCK OPTIONS  The Company had adopted a stock option
plan, which provided for the granting of options to certain officers, directors
and key employees of the Company.  Currently, options for 100,000 shares of
common stock have been issued under this plan and remain outstanding.  The
option price, number of shares and grant date were determined at the discretion
of the Company's board of directors.  Grantees vested in the options at the
date of the grant.  The exercise price of each option that has been granted
under the plan equals 100% of the market price of the Companys stock on the
date of the grant.  Options under this plan vest on the grant date and are
exercisable for a period not to exceed 10 years from the option grant date.
 Options are non-transferable.  A summary of the status of the
Companys stock option plan as of December 31, 2007 and 2006, and changes during
the years then ended is presented below:  18   10. STOCK
OPTIONS (CONTINUED)    The following table summarizes
information about stock options outstanding at December 31, 2007.   The Black Scholes option valuation model
was developed for use in estimating the fair value of traded options, which have
no vesting restrictions and are fully transferable.  In addition, option
valuation models require the input of highly subjective assumptions including
the expected stock price volatility.  Because the Companys stock options
have characteristics significantly different from those of traded options, and
because changes in the subjective input assumptions may materially affect the
fair value estimate, in managements opinion, the existing models do not
necessarily provide a reliable single measure of the fair value of its stock
options.  For purposes of pro forma disclosures, the
estimated fair value of the options is amortized to expense over the options
vesting period.  There were no options granted during the year ended
December 31, 2007; therefore, no pro forma presentations are required.  19     11.  WARRANTS  As part of the December, 2000 acquisition
of the freight transport and freight brokerage business of Eagle Transportation
Services, Inc., and Eagle Transport, Inc., the Sellers were granted warrants to
purchase 100,000 shares of common stock at $2.50 per share and 75,000 shares of
common stock at $3.00 per share, exercisable after one year and expiring in 10
years (2010).  On August 5, 2002, Gasel and S. Gene
Thompson executed an Employment Agreement outlining the terms and conditions of
Mr. Thompsons employment as Vice President and Chief Financial Officer.
 In accordance with the terms of this agreement, Mr. Thompson was given
25,000 shares of common stock, no par value, of the Company; warrants to
purchase an additional 25,000 shares of common stock, no par value, of Gasel at
an exercise price of $.35 per share; and will receive additional warrants to
purchase 50,000 shares of common stock in the future at the market price
effective on the grant dates, which were to be given on January 1, 2003 and
January 2, 2004.  The warrants may be exercised at any time within a
10-year period after the date of issuance.  In the event the Company shall
terminate Mr. Thompsons employment prior to the end of the three year term, or
should Gasel enter into a merger or other combination with another company, then
the grant date of future warrants shall be accelerated to the date of such
merger, combination or termination.  In connection with the Securities Purchase
Agreement of July 20, 2006, (the SPA) the Company issued 5 year warrants to
purchase 10,541,000 shares of its post 150:1 reverse conversion common stock at
an exercise price of $0.35 per common share and the same number, 10,541,000
shares of its post 150:1 reverse conversion common stock at an exercise price of
$0.60 per common share.  On July 31, 2007 the Company and the investors
under the SPA agreed to modify the exercise price of the warrants to be $.203
and $.347 respectively.  These equate to 1,581,150,000 shares each, pre
conversion, at exercise prices of .00135 and .00231 respectively; however the
Company does not have sufficient authorized shares (only 100,000,000 shares are
authorized) to enable full exercise of the warrants.    (A) -Cannot be fully exercised until the
Company completes its 150:1 reverse conversion.  12.  SUBSEQUENT
EVENTS  On January 8, 2008, the Company was
notified of the dismissal of the complaint (the Complaint), without prejudice,
by the United States District Court for the Eastern District of Pennsylvania,
which had been filed against the Company, its directors and a major investor, by
Robert Moyer, its former president and chief executive officer, on March 23,
2007, alleging breach of employment contract, violation of the New York Payment
of Wages Law, wrongful discharge, unjust enrichment and civil conspiracy, all
arising out of Moyers discharge.  As of February 26, 2008 the Companys
common stock was re-listed on the OTC Bulletin Board, this removes the adverse
impact the delisting of the securities had on the market liquidity for the
Companys securities.  On March 6, 2008, the Company guaranteed
the performance of Freundlich in connection with the agreement, entered into on
the same date, between Freundlich and Israel Discount Bank of New York (the
Successor Agreement).  The Successor Agreement, which has a maturity date
of January 31, 2009, establishes a revolving funding facility which will allow
Freundlich to receive up to three (3) million dollars.  The funds will be
made available to Freundlich in accordance with an advance formula which allows
for the payment of up to Seventy-five (75) per-cent of eligible accounts and
fifty (50) per-cent of eligible inventory, up to a maximum inventory advance
amount of two million five hundred thousand dollars ($2,500,000).  Eligible
accounts are those domestic accounts not outstanding for more than one hundred
twenty (120) days and eligible inventory is inventory as determined by the bank,
presently that which has had sales within the preceding sixty (60) months.
 The daily rate on the outstanding balance will be, at the Companys
option, the prime rate plus one (1) per cent or LIBOR plus three and three
quarters (3.75) per cent.  The balance is secured by a first lien position
on all of Freundlichs assets.       20