UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington, DC 20549  FORM
10-QSB  [X] QUARTERLY REPORT UNDER SECTION 13 OR
15(D) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended: March 31,
2008  or  [  ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF
THE EXCHANGE ACT OF 1934  For the transition period from ___________
to ______________  Commission File No. 000-30185  PRECISION AEROSPACE COMPONENTS, INC.  (Exact Name of Small Business Issuer as
Specified in Its Charter) Delaware

20-4763096(State or Other Jurisdiction of
Incorporation or Organization)

(IRS EmployerIdentification
No.)  2200 Arthur Kill RoadStaten Island,
New York 10309-1202  (Address of Principal Executive Offices)   (718)-356-1500 (Issuers Telephone Number, including Area
Code)   (Former Name or Former Address, if Changed
Since Last Report)  Check whether the issuer (1) filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the past 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [ X ] No [  ]  Indicate by check mark whether the registrant is a shell
company (as defined in rule 12b-2 of the Exchange Act) Yes [  ] No [X]  The number of shares of the issuers common stock
outstanding on May 1, 2008 was  33,324,691  Transitional Small Business Disclosure Format (check
one):  Yes [  ]  No [ X ]          TABLE OF CONTENTS  PagePART IFINANCIAL
INFORMATIONItem 1.

Financial Statements


1Condensed Consolidated Balance Sheet 
(Unaudited)


3Condensed Consolidated Statements of Income (Loss)
(Unaudited)


4Condensed Consolidated Statements of Cash Flows 
(Unaudited)


5Notes to Condensed Consolidated Financial
Statements


6Item 2.

Plan of Operations


10Item 3.

Controls and Procedures


13PART IIOTHER
INFORMATIONItem 1

Legal Proceedings


15Item 6.

Exhibits


15Signatures




15        PART I 
FINANCIAL INFORMATION  ITEM 1. FINANCIAL STATEMENTS              PRECISION AEROSPACE COMPONENTS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH
31, 2008 AND 2007 - UNAUDITED **** **** **** **** **** **** **** **** **** 1       INDEX   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
(UNAUDITED):

PagesCondensed Consolidated Balance Sheet as of March
31, 2008 (Unaudited)

3Condensed Consolidated Statements of Income (Loss)
for the Three Months
Ended March 31, 2008 and 2007 (Unaudited)

4Condensed Consolidated Statements of Cash Flows for
the Three Months Ended

March 31, 2008 and 2007
(Unaudited)

5Notes to Condensed Consolidaed Financial
Statements

6-9      2   **PRECISION AEROSPACE
COMPONENTS, INC.**
******CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)**
******March 31, 2008**
********
****
****
******ASSETS**
****
********
****
****
********
****
****
******CURRENT ASSETS**
****
****
****Cash and cash equivalents
$
554,862Accounts receivable, net

1,265,610Inventory, net

4,303,446Prepaid expenses

66,4326,190,350**PROPERTY AND EQUIPMENT - Net**
****
240,723**OTHER ASSETS**
****
****
****Deposits

12,700Goodwill

2,443,1142,455,814**TOTAL ASSETS**
$
8,886,887**LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS'
EQUITY (DEFICIT)******
****
****
******CURRENT LIABILITIES**
****
****
********
****
****
****Accounts payable and accrued expenses
$
914,601Subordinated note payable-current portion

300,000Loan payable-current portion

2,722,506Income taxes payable

31,919**TOTAL LIABILITIES**
****
3,969,026**TEMPORARY EQUITY**
****
****
********
****
****
****Preferred
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

2,811Prepaid Services

(4,014,020)Additional paid-in capital -warrants

843,272Additional paid-in capital -options

4,378,9321,216,269**STOCKHOLDERS' EQUITY (DEFICIT)**
****
****
****Preferred
Stock A $.001 par value; 7,100,000 shares authorized5,274,152
shares issued and outstandingPreferred
Stock B $.001 par value; 2,900,000 shares authorized2,811,000
shares issued and outstandingCommon 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)

(2,140,408)**TOTAL STOCKHOLDERS'EQUITY (DEFICIT)**
****
3,701,592**TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS'
EQUITY (DEFICIT)**
$
8,886,887The accompanying notes are an
integral part of these condensed consolidated financial
statements
3 **PRECISION AEROSPACE COMPONENTS,
INC.****CONDENSED CONSOLIDATED STATEMENTS OF INCOME(LOSS)
(UNAUDITED)****FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND
2007******
****
****
********
****
****
********
**2008**
****
**2007******
****
****
******REVENUE - SALES**
$3,105,468

$1,952,218**TOTAL REVENUE**
3,105,468

1,952,218**TOTAL COSTS OF GOODS SOLD**
2,119,254

1,182,292**GROSS PROFIT**
986,214

769,926**OPERATING EXPENSES**
****
****
****General and administrative expenses
469,316

465,806Stock Based Compensation
364,910

-Professional Fees
48,947

18,077Depreciation
19,861

19,063903,034

502,946**NET INCOME (LOSS) BEFORE OTHER (EXPENSE)**
83,180

266,980**OTHER (EXPENSE)**
****
****
****Interest expense
(95,562)

(17,483)(95,562)

(17,483)**NET INCOME (LOSS) BEFORE PROVISION FOR INCOME
TAXES**
(12,382)

249,497Provision for income taxes
154,682

88,784**NET INCOME (LOSS) APPLICABLE TO COMMON
SHARES**
$(167,064)

$160,713**NET INCOME (LOSS) PER BASIC SHARES**
$(0.01)

$0.00**NET INCOME (LOSS) PER DILUTED SHARES**
$(0.00)

$0.00**WEIGHTED AVERAGE
NUMBER OF BASIC COMMON**
****
****
******SHARES
OUTSTANDING**
33,324,691

33,324,691**WEIGHTED AVERAGE
NUMBER OF FULLY DILUTED**
****
****
******COMMON
SHARES OUTSTANDING**
9,227,401,341

6,913,003,091The accompanying notes are an
integral part of these condensed consolidated financial
statements
4 **PRECISION AEROSPACE
COMPONENTS, INC.****STATEMENTS OF CASH FLOWS
(UNAUDITED)****FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND
2007******





****
******2008**
****

**2007****CASH FLOWS FROM OPERATING ACTIVITIES**Net income
(loss)


$
(167,064)

$
160,713**Adjustments to reconcile net income (loss) to net
cash****provided by (used in) operating activities:**Depreciation
and amortization



19,861


19,063Stock Based
Compensation



364,910


-**Changes in assets and liabilities:**(Increase)
decrease in assets(Increase)
decrease in accounts receivable



(428,058)


30,792(Increase)
decrease in inventory



(418,114)


180,027(Increase)
decrease in prepaid expenses



(66,432)


(16,815)(Increase)
decrease in security deposits



-


72,000Increase
(decrease) in liabilitiesIncrease (decrease) in accounts payable and accrued expenses



307,974


(646,211)Increase (decrease) in income taxes payable



(397,964)


88,484Total adjustments



(617,823)


(272,660)**Net cash provided by (used in) operating
activities**



(784,887)


(111,947)**CASH FLOWS FROM INVESTING ACTIVITIES**Purchase of
property and equipment



-


(8,450)**Net cash (used in) investing activities**



-


(8,450)**CASH FLOWS FROM FINANCING ACTIVITIES**(Payment) of
convertible note payable



(1,000,000)


-(Payment)
Proceeds of S/T loan payable Greater Bay



(387,466)


236,765Proceeds from loan payable IDB Bank



2,722,506


-(Payment) of
subordinated note payable



(150,000)


(75,000)**Net cash (used in) provided by financing
activities**



1,185,040


161,765**INCREASE IN CASH AND CASH EQUIVALENTS**



400,153


41,368******CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD**



154,709


67,094******CASH AND CASH EQUIVALENTS - END OF PERIOD**


$
554,862

$
108,462**SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:**Cash paid during the period for:Interest paid


$
95,562

$
17,483Income
taxes paid


$
586,408

$
-**SUPPLEMENTAL SCHEDULE OF NONCASH ACTIVITY:******Issuance of
options for stock based compensation


$
364,910

$
-The accompanying notes are an
integral part of these condensed consolidated financial
statements
5       PRECISION AEROSPACE COMPONENTS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2008 AND 2007 - UNAUDITED    1.  BASIS OF PRESENTATION  The accompanying
condensed unaudited interim financial statements included herein have been
prepared, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC").  The condensed financial statements and
notes are presented as permitted on Form 10-QSB and do not contain information
included in the Company's annual statements and notes.  Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules and regulations,
although the Company believes that the disclosures are adequate to make the
information presented not misleading.  It is suggested that these condensed
financial statements be read in conjunction with the December 31, 2007 audited
financial statements and the accompanying notes thereto.  While management
believes the procedures followed in preparing these condensed financial
statements are reasonable, the accuracy of the amounts are in some respects
dependent upon the facts that will exist, and procedures that will be
accomplished by the Company later in the year.  These results are not
necessarily indicative of the results to be expected for the full year. These condensed
unaudited financial statements reflect all adjustments, including normal
recurring adjustments, which, in the opinion of management, are necessary to
present fairly the operations and cash flows for the periods presented.   2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES  Significant accounting policies followed in
the preparation of the consolidated financial statements are as follows:  Inventory  Inventory is stated at the lower of cost or
market, utilizing the specific lot identification method.  The Company is a
distributor of goods that retain their value and may be purchased by its
customers for an extended period of time.  Inventory consists of finished
goods for resale at March 31, 2008.    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:    Warehouse equipment

5 yearsLeasehold improvements

5 - 39 years
**Computers

5 yearsFurniture and fixtures

7 yearsEquipment

5 years   ** Shorter of life or lease term.  6     PRECISION AEROSPACE COMPONENTS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2008 AND 2007 - UNAUDITED     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.  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.   Concentration of Credit Risk  Sales to the United States Department of
Defense (DOD) represented approximately 52 percent of the Companys total
sales.  No other customer accounted for greater than 10 percent of the
Companys total sales and the Company has no substantial concentrations of
credit risk in its trade receivables.  Shipping and Handling Costs and Fees  The Company records freight cost on
merchandise purchased to cost of goods sold and freight and delivery charges on
sales to selling, general and administrative expenses.    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 (Loss) per Common
Share  Basic earnings (loss) per share is
calculated by dividing net profit attributable to common stockholders by the
weighted average number of outstanding common shares during the year.
 Basic loss per share exclude any dilutive effects of options, warrants and
other stock-based compensation, which are included in diluted earnings per
share.    7     PRECISION AEROSPACE COMPONENTS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2008 AND 2007 - UNAUDITED    3. PROPERTY AND
EQUIPMENT-NET Substantially all of
the Company's property and equipment are pledged as collateral for its
loans.     2008Furniture and fixtures



$
2,392Equipment and other




354,184Leasehold improvements




6,488363,064Less accumated depreciation
and amortization




(122,341)Property and equipment,
net



$
240,723    Depreciation expense
for the three months ended March 31, 2008 was $ 19,861.   4. ACCOUNTS PAYABLE AND ACCRUED
EXPENSES  Accounts payable and accrued expenses as of
March 31, 2008 consist of the following:          2008Accounts payable



$
867,723Accrued expenses




46,878Total



$
914,601  5. COMMITMENTS AND CONTINGENCIES  The Company leases
office space for its operations under a lease which expires July 20, 2008.
 The Company has an option to extend the lease.  The rental rate is
$12,000 per month.  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.  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.  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 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  8     PRECISION AEROSPACE COMPONENTS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2008 AND 2007 - UNAUDITED


5. COMMITMENTS AND CONTINGENCIES
(CONTINUED)  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.    6. SHORT-TERM DEBT AND LINE OF
CREDIT                    Long-term debt as of March 31, 2008 consists of the
following:2007Revolving funding facility. Due 2009 (See note
5).

$
2,722,506$750,000 subordinated term loan due April 30, 2009
secured by all assets equipment at a variable rate of Prime plus 1% (6.25
on March  31, 2008).


300,000$
3,022,506    7. OPTIONS AND AGREEMENTS  On February 27, the Board of Directors of
the Company (the Board) approved an employment agreement (the Agreement)
with Andrew S. Prince, the Companys President and CEO as well as the options
awarded in conjunction with the agreement.  Included in Mr. Princes
compensation package is a 7 year option (exercisable through September 1, 2014),
vesting over the initial term of the Agreement, which runs through September 1,
2008 with automatic one year extensions if not terminated, for him to acquire a
7% ownership interest in the Company.  On February 27, 2008 the Board also
approved the service options, with 7 year exercise periods from time of
issuance, for present and future non-officer Board members at the rate of 5,000
shares upon joining the Board and at the rate of 2,000 shares per year of
service; the number of shares being the shares of the Company in existence after
the contemplated 150:1 combination of the Companys shares.  The Company used The Black Scholes Model to
value the options. The company recognized an expense at March 31, 2008 of
$364,910.  The total expense the Company will recognize in connection with
the options will be $4,378,930.  9


ITEM 2  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION  FORWARD-LOOKING STATEMENTS  This Form 10-QSB 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-QSB 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 set out under the caption
Risk Factors in our 10-KSB report for the year ended 2007 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.   General  The following discussion and analysis
should be read in conjunction with the condensed 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 of forward-looking
statements, see the information set forth in the Introductory Note to this
Quarterly Report under the caption "Forward Looking Statements" which
information is incorporated herein by reference.  The condensed consolidated interim
financial statements included herein have been prepared, without audit, pursuant
to the rules and regulations of the Securities and Exchange Commission.
 The condensed consolidated financial statements and notes are presented as
permitted on Form 10-QSB and do not contain information included in the
Companys annual consolidated statements and notes.  Certain information
and footnote disclosers normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules and regulations,
although the Company believes that the disclosers are adequate to make the
information presented not misleading.  The results for the three months
ended March 2008 may not be indicative of the results for the entire year.  These statements reflect all adjustments,
consisting of normal recurring adjustments, which in the opinion of management,
are necessary for fair presentation of the information contained herein.  Plan of Operation and Discussion of Operations  The Company's operations are presently
carried out through its Freundlich Supply Company, Inc. (Freundlich)
subsidiary.  Freundlich and through it the Company is a
stocking distributor of aerospace quality, internally-threaded fasteners.
 Freundlich 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.





10    The Companys products are
manufactured, by others, to exacting specifications or are made from raw
material that provides strength and reliability required for aerospace
applications.  Freundlich is a niche player in the North
American aerospace fastener industry.  The fastener distribution industry
is highly fragmented with no single company holding a dominant position.
 Freundlich currently focuses exclusively on the distribution of aerospace
quality nut products, serving as an authorized stocking distributor for seven of
the premier nut manufacturers in the United States.  Freundlich competes
with numerous distributors who serve as authorized stocking distributors for the
seven nut manufacturers in its supplier base.  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 an
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
50 percent) of customer orders from stock-on-hand provides Freundlich a distinct
competitive advantage in the marketplace.  Freundlich sells its products to original
equipment manufacturers, repair facilities, and other distributors in the
aerospace industry and directly to the United States Department of Defense.
 Freundlich sells its products pursuant to written purchase orders from its
customers.  All products are shipped from Freundlichs warehouse in Staten
Island, New York via common carrier.  During this quarter, sales to the
Department of Defense represented 52%, of our total sales.  No other
customer accounts for more than 10% of our sales.  The Company had a good first quarter.
 This good performance has occurred in the face of both a continuing
production under-capacity in the fastener industry and continuing increase in
the cost of materials.  These factors have increased lead-times for
delivery and increased cost of products.  This situation, particularly with
regard to the under-capacity is anticipated to continue in the immediate future.
 A portion of our increased sales is a result of our receipt of goods which
have finally arrived after a long delay.  The Company continues to have
substantial challenges managing its inventory.  It has also required an
increase in investment in inventory  since replacing even the same item is done
at a higher cost and, because of the longer lead times, it is desirable to
maintain higher inventory levels when product can be obtained.  The
challenges presented cannot be overstated.  Particularly in view of the
onerous and almost confiscatory tax rates associated with doing business in the
New York City area.  Capital which would otherwise be utilized to employ
persons to expand the business and make other investments must be utilized for
inventory investment to stay even with inflation or tax payments.  The
Company has explored geographical alternatives, but as yet has not found a
suitable alternative which would also allow it to maintain its competent staff.
 Accuracy of promised lead times from manufacturers and actual delivery
times are low, making inventory scheduling exceptionally problematic.  During this quarter the Company invested
over $400,000 additional dollars in its inventory which had been $3,885,332 at
year end 2007.  Inventory at the end of the quarter was $4,303,446.
 Last year, at the end of the quarter, the inventory was $3,329,156.
 Reflecting the long lead times, Freundlich has more than the amount of its
inventory on backorder to better enable it to meet the needs of its customers  The Company increased consolidated revenues
nearly 60% in the quarter to $3,105,468 from $1,952,218 in the comparable period
last year.  The Gross Profit of $986,214 is an increase
of 28% over $769,926 for the same period last year.  This Gross Profit is
only 31% percent of revenues as opposed to 39% for the same period last year and
37% for the entire year last year.  This reduction in margin was
anticipated as the prior higher margins were the result of the use of older
inventory which was obtained at lower prices.  The Company would have shown a net income
before taxes and interest of $448,090 and a profit of $197,846 after taxes if
not for a non cash expense of $364,910 required to be recognized due to the
issuance of options.  This resulted in the net income number and profit
numbers shown, $83,180 and ($167,064) respectively.  Additional non-cash
expense in connection with these options will be required to be recognized in
future periods.  The Company utilized the Black Scholes option pricing
model which is commonly and widely used to determine the non cash expense
amount.  The recognition of this expense does not have
an impact on cash flows, although it does adversely affect the income statement
and balance sheet for financial reporting purposes.  The Internal Revenue
Service does not allow any portion of this non-cash expense to be utilized as a
deduction to income for income tax purposes.  This non cash expense  11


amount will not be reversed or taken into
income if the options expire unexercised.  Additionally, because there are
currently insufficient authorized shares for all of the options issued, they all
could not be exercised until the Company has sufficient authorized shares for
such exercise.  The Company incurred substantially higher
interest expenses of $95,562 for the quarter, compared to $17,483 for the same
period last year.  This was due to both the existence of the Companys line
of Credit for the entire quarter.  Last year the line was in place for only
a portion of March.  Additionally, the rate of interest on our $1,000,000
convertible debt increased during the first quarter last year, while it was at
the 14% rate for the entire first quarter this year.  During the quarter, on March 6, 2008, the
Company replaced Freundlichs previously existing accounts receivable credit
line with a new $3M credit facility based upon its inventory and receivables and
at a lower variable rate of interest.  The Company utilized a portion of
this facility to pay off its $1,000,000 convertible debt.  Additionally
Freundlich was obliged to prepay an additional $75,000 portion of its
subordinated debt; consequently, that debt should be fully paid in February,
2009.  These actions will decrease the future
interest payments required to be made by the Company.  Additionally they
have caused the debt liabilities on the Companys balance sheet to all be short
term, since the line of credit needs to be renewed within the year, by January
31, 2009, and the remaining portion of the subordinated note is due within the
year.  The Company also utilized a portion of the
credit facility to fully pay all of the $429,883 income taxes payable at the end
of 2007 as well as to make some of its quarterly payments for 2008.  Although accounts payable and accrued
expenses increased over $300,000 to $914,603 from $606,627 at the end of 2007,
this is a timing issue.  The Companys cash and equivalents increased over
$400,000 to $554,862 from $154,709 at the end of the year.  Additionally,
largely reflecting our increased sales pace, our accounts receivable increased
over $425,000 to $1,265,610 from $837,552.  Our total assets increased over $1.2
million to $8,886,887 from $7,593,989 at the end of last year and $7,083,084 in
the same period last year.  Additionally, our net assets at the end of the
first quarter increased over $190,000 to $4,913,655 from $4,720,013 at the end
of last year and $4,109,622 in the same period last year.  The Company does not presently anticipate
any material additional capital expenditures on plant and equipment for existing
operations during 2008 and the present cash flow from the activities of
Freundlich and its financing facility is sufficient to meet the Companys cash
requirements; however additional financing will be necessary to more rapidly
increase operations and expand operations.  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 Company and the shareholders have, as
reported on 8-K filings during the course of the quarter, benefitted from
several other events that better situate it for future growth and reduced risk
exposure.  The events are as follows:  Dismissal of March 23, 2007 Complaint
against the Company  See Item 1 Part II below.  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, thereby removing 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 **** 12     The Board of Directors of the Company
approved an employment and compensation agreement with Andrew S. Prince, its
President and CEO, which will run through September 1, 2008.  The Board of
Directors also approved the option compensation to be received by non-executive
members of the Companys Board of Directors.  Critical Accounting Policies  The Company considers the accounting
policies related to revenue and related cost recognition, the valuation of
inventory, the valuation of goodwill, transactions related to our debt and
equity financing activity, to be critical to the understanding of our results of
operations.  For a more detailed discussion of the Companys critical
accounting policies, please see the Companys consolidated financial statements
and accompanying notes.  Critical accounting policies include the areas
where the Company has made what it considers to be particularly subjective or
complex judgments in making estimates and where these estimates can
significantly impact the Companys financial results under different assumptions
and conditions.  The Company prepares its financial statements in
conformity with U.S. generally accepted accounting principles.  As such,
the Company is required to make certain estimates, judgments, and assumptions
that it believes are reasonable based upon the information available.
 These estimates, judgments and assumptions affect the reported amounts of
assets and liabilities at the date of the financial statement and the reported
amounts of revenue and expenses during the periods presented.  Actual
results could be different from these estimates.  Subsequent Event  The Company has reached agreement with its investors in
the Registration Rights Agreement (the "Agreement"), dated as of July 20, 2006,
to which the Company was a party extending the date by which the Company is
required to file a registration statement effecting a 150:1 reverse split
through December 15, 2008.  Off Balance Sheet Arrangements   None  Inflation  Our monetary assets, consisting primarily
of cash and receivables and our non-monetary asset of goodwill, are not affected
significantly by inflation.  However our major non-monetary asset of
inventory is understated as a result of the effects of inflation.  Mere
replacement of this inventory will result in the need for the Company to make an
additional expenditure.  Additionally, as a result of the inflation of the
replacement prices, our profit margins will be improved and consequently the
Company will be forced to pay taxes and therefore lose some of the funds that
will be necessary to replace the inventory.  This will divert cash from the
expansion of the business.  The Company believes that replacement costs of
equipment, furniture and leasehold improvements will not materially affect our
operations. However, the rate of inflation affects our expenses, such as those
for employee compensation, which may not be readily recoverable in the prices
offered by the Company.   ITEM 3  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-QSB.  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. 13


(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 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.  14


PART IIOTHER INFORMATION     ITEM 1.  Legal Proceedings.  On January 8, 2008, the Company was
notified of the dismissal, without prejudice, of the complaint brought in 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 (the Complaint), 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 6.  Exhibits. The following exhibits are included
herein: Exhibit
No.

Exhibit31.1

Certification of Chief Executive Officer of the
Company required by Rule 13a-14(a) under the Securities Exchange Act of
1934, as amended31.2

Certification of Chief Financial Officer of the
Company required by Rule 13a-14(a) under the Securities Exchange Act of
1934, as amended32.1

Certification of Chief Executive Officer and Chief
Financial Officer of the Company required by Rule 13a-14(b) under the
Securities Exchange Act of 1934, as amended  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. Dated: May  9, 2008

PRECISION AEROSPACECOMPONENTS, INC./s/ Andrew S. PrinceAndrew S. PrincePresident and Chief Executive
Officer  15


EXHIBIT INDEX Exhibit
Number

Description31.1

Certification of Chief Executive Officer of the
Company required by Rule 13a-14(a) under the Securities Exchange Act of
1934, as amended31.2

Certification of Chief Financial Officer of the
Company required by Rule 13a-14(a) under the Securities Exchange Act of
1934, as amended32.1

Certification of Chief Executive Officer and Chief
Financial Officer of the Company required by Rule 13a-14(b) under the
Securities Exchange Act of 1934, as amended


16