UNITED STATES
SECURITIES 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: June 30, 2007





|[X] | TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT OF 1934
|--- | -----------------------------------------------------------------------



or



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 Employer
Identification No.)



2200 Arthur Kill Road
Staten 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 [  ] No [ X ]



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 August 28, 2007. was  33,324,691



Transitional Small Business Disclosure Format (check one):  Yes [  ]  No [ X ]





---

EXPLANATORY STATEMENT



This 10-QSB report is being filed at the same time as the 10-KSB for 2006 and the 10-QSB for the first quarter of 2007.  The 10-KSB was delayed due to the need for successor management and its auditors to appropriately review the Companys financial records subsequent to the acquisition in July 2006.  It was not until the 10-KSB had been finalized that the subsequent 10-QSBs could be finalized.

---

TABLE OF CONTENTS

|                             |  |                                                               |  |      |    | 
|---------------------------- |  | ------------------------------------------------------------- |  | ---- | -- | 
|                             |  |                                                               |  | Page
|PART I
FINANCIAL INFORMATION
|Item 1.                      |  | Financial Statements                                          |  |      | 4  | 
|                             |  | Condensed Consolidated Balance Sheet  (Unaudited)            |  |      | 5  | 
|                             |  | Condensed Consolidated Statements of Income  (Unaudited)     |  |      | 6  | 
|                             |  | Condensed Consolidated Statements of Cash Flows  (Unaudited) |  |      | 7  | 
|                             |  | Notes to Condensed Consolidated Financial Statements          |  |      | 8  | 
|Item 2.                      |  | Plan of Operations                                            |  |      | 14 | 
|Item 3.                      |  | Controls and Procedures                                       |  |      | 17 | 
|PART II
OTHER INFORMATION   
|Item 6.                      |  | Exhibits                                                      |  |      | 18 | 
|Signatures                   |  |                                                               |  |      | 18 | 



---

PART I  FINANCIAL INFORMATION



ITEM 1. FINANCIAL STATEMENTS























PRECISION AEROSPACE COMPONENTS, INC.

(Formerly Jordan 1 Holdings Company)

CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2007 AND 2006 -UNAUDITED

















---





PRECISION AEROSPACE COMPONENTS, INC.

(Formerly Jordan 1 Holdings Company)

CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2007 AND 2006 - UNAUDITED







INDEX





|CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (UNAUDITED): | Pages
|---------------------------------------------------------- | -----



|Condensed Consolidated Balance Sheet as of June 30, 2007 (Unaudited )                                                   |  | 5   
|----------------------------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                                        |  |     
|Condensed Consolidated Statements of Income for the Six Months and Three Months
Ended June 30, 2007 and 2006 (Unaudited |  | 6   
|                                                                                                                        |  |     
|Condensed Consolidated Statements of Cash Flows for the Six Months Ended
June 30, 2007 and 2006 (Unaudited)             |  | 7   
|                                                                                                                        |  |     
|Notes to Condensed Consolidated Financial Statements                                                                    |  | 8-13













---



|PRECISION AEROSPACE COMPONENTS, INC.                             |                 
|---------------------------------------------------------------- | ----------------
|(Formerly Jordan 1 Holdings Company)                             |                 
|CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)                 |                 
|June 30, 2007                                                    |                 
|                                                                 |                 
|ASSETS                                                          
|                                                                 |                 
|                                                                 |                 
|CURRENT ASSETS                                                   |                 
|Cash and cash equivalents                                        | $         42,770
|Accounts receivable, net                                         | 882,971         
|Inventory, net                                                   | 3,429,727       
|Prepaid expenses                                                 | 96,556          
|                                                                 | 4,452,024       
|                                                                 |                 
|PROPERTY AND EQUIPMENT - Net                                     | 295,167         
|                                                                 |                 
|OTHER ASSETS                                                     |                 
|Deposits                                                         | 40,885          
|Goodwill                                                         | 2,443,114       
|                                                                 | 2,483,999       
|                                                                 |                 
|TOTAL ASSETS                                                     | $    7,231,190  
|                                                                 |                 
|                                                                 |                 
|LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)
|                                                                 |                 
|CURRENT LIABILITIES                                              |                 
|                                                                 |                 
|Accounts payable and accrued expenses                            | $       689,583 
|Subordinated note payable-current portion                        | 300,000         

|Loan payable-current portion                                           | 219,658        | 
|---------------------------------------------------------------------- | -------------- | 
|Income taxes payable                                                   | 331,665        | 
|Redeemable warrants                                                    | 50,000         | 
|                                                                       | 1,590,906      | 
|LONG -TERM LIABILITIES                                                 |                | 
|Subordinated note payable-long term portion                            | 300,000        | 
|Convertible note payable                                               | 1,000,000      | 
|TOTAL LIABILITIES                                                      | 2,890,906      | 
|                                                                       |                | 
|TEMPORARY EQUITY                                                       |                | 
|Additional paid-in capital -warrants                                   | 843,272        | 
|Preferred Stock A $.001 par value; 7,100,000 shares authorized         | 5,274          | 
|5,274,152 shares issued and outstanding                                |                | 
|Preferred Stock B $.001 par value; 2,900,000 shares authorized         | 2,811          | 
|2,811,000 shares issued and outstanding                                |                | 
|                                                                       | 851,357        | 
|STOCKHOLDERS' EQUITY (DEFICIT)                                         |                | 
|Preferred Stock A $.001 par value; 7,100,000 shares authorized         | -              | 
|5,274,152 shares issued and outstanding                                |                | 
|Preferred Stock B $.001 par value; 2,900,000 shares authorized         | -              | 
|2,811,000 shares issued and outstanding                                |                | 
|Common stock, $.001 par value; 100,000,000 shares authorized           |                | 
|33,324,691 shares issued and outstanding                               | 33,325         | 
|Additional paid-in capital                                             | 5,808,675      | 
|Retained earnings (deficit)                                            | (2,353,073)    | 
|TOTAL STOCKHOLDERS'  EQUITY (DEFICIT)                                  | 3,488,927      | 
|                                                                       |                | 
|TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) | $    7,231,190 | 

|The accompanying notes are an integral part of
                    these consolidated financial statements
|----------------------------------------------------------------------------------------------------------

5

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|PRECISION AEROSPACE COMPONENTS, INC.                     
|---------------------------------------------------------
|(Formerly Jordan 1 Holdings Company)                     
|CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  
|FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2007 AND 2006
|                                                         
|                                                         
|                                                         
|                                                         
|                                                         
|                                                         
|REVENUE - SALES                                          
|                                                         
|TOTAL REVENUE                                            
|                                                         
|TOTAL COSTS OF GOODS SOLD                                
|                                                         
|GROSS PROFIT                                             
|                                                         
|OPERATING EXPENSES                                       
|General and administrative expenses                      
|Professional Fees                                        
|Depreciation                                             
|Total Expenses                                           
|                                                         
|NET INCOME BEFORE OTHER (EXPENSE)                        
|                                                         
|OTHER INCOME (EXPENSE)                                   
|Interest expense                                         
|                                                         
|                                                         
|NET INCOME BEFORE PROVISION FOR INCOME TAXES             
|                                                         
|Provision for income taxes                               

|                                         |   |               |   |            |  |   |               |   |           
|---------------------------------------- | - | ------------- | - | ---------- |  | - | ------------- | - | ----------
|NET INCOME APPLICABLE TO COMMON SHARES   | $ | 391,376       | $ | -          |  | $ | 230,663       | $ | -         
|                                         |   |               |   |            |  |   |               |   |           
|NET INCOME PER BASIC SHARES              | $ | 0.01          | $ | -          |  | $ | 0.01          | $ | -         
|                                         |   |               |   |            |  |   |               |   |           
|NET INCOME PER DILUTED SHARES            | $ | -             | $ | -          |  | $ | -             | $ | -         
|                                         |   |               |   |            |  |   |               |   |           
|WEIGHTED AVERAGE NUMBER OF BASIC COMMON  |   |               |   |            |  |   |               |   |           
|SHARES OUTSTANDING                       |   | 33,324,691    |   | 39,670,066 |  |   | 33,324,691    |   | 39,670,066
|                                         |   |               |   |            |  |   |               |   |           
|WEIGHTED AVERAGE NUMBER OF FULLY DILUTED |   |               |   |            |  |   |               |   |           
|COMMON SHARES OUTSTANDING                |   | 6,913,003,091 |   | 40,380,066 |  |   | 6,913,003,091 |   | 40,380,066
|                                         |   |               |   |            |  |   |               |   |           
|                                         |   |               |   |            |  |   |               |   |           
|                                         |   |               |   |            |  |   |               |   |           
|                                         |   |               |   |            |  |   |               |   |           



|The accompanying notes are an integral
                                                            part of these consolidated
                                                            financial statements
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



6

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|PRECISION
                                                  AEROSPACE COMPONENTS, INC.                                                             
|---------------------------------------------------------------------------------------------------------------------------------------------------
|(Formerly
                                                  Jordan 1 Holdings Company)                                                             
|STATEMENTS
                                                  OF CASH FLOWS                                                                         
|FOR
                                                  THE SIX MONTHS ENDED JUNE 30,
                                                  2007 AND 2006
|                                                                                                                                                   
|                                                                                                                                                   
|                                                                                                                                                   
|                                                                                                                                                   
|                                                                                                                                                   
|CASH
                                                  FLOWS FROM OPERATING ACTIVITIES                                                             
|Net
                                        income                                                                                                 
|                                                                                                                                                   
|Adjustments
                                                  to reconcile net income to
                                                  net cash
|(used
                                                  in) operating activities:                                                                  
|Depreciation
                                        and amortization                                                                              
|                                                                                                                                                   
|Changes
                                                  in assets and liabilities:                                                               
|Decrease
                                        (increase) in assets                                                                              
|Decrease
                                        in accounts receivable                                                                            
|(Increase)
                                        in inventory                                                                                    
|(Increase)
                                        in prepaid expenses                                                                             
|(Increase)
                                        in security deposits                                                                            
|                                                                                                                                                   
|Increase
                                        (decrease) in liabilities                                                                         
|Increase
                                        in accounts payable and accrued expenses                                                          
|Increase
                                        in income taxes payable                                                                           
|Total
                                        adjustments                                                                                          
|                                                                                                                                                   
|Net
                                                  cash (used in) operating activities                                                          
|                                                                                                                                                   
|CASH
                                                  FLOWS FROM INVESTING ACTIVITIES                                                             
|Purchase
                                        of property and equipment                                                                         
|                                                                                                                                                   
|Net
                                                  cash (used in) investing activities                                                          
|                                                                                                                                                   
|CASH
                                                  FLOWS FROM FINANCING ACTIVITIES                                                             
|Proceeds
                                        from issuance of short term loan payable
                                        - Great Bay      
|Payment
                                        of principle of subordinated note payable                                                          
|                                                                                                                                                   
|Net
                                                  cash provided by financing
                                                  activities      
|                                                                                                                                                   
|DECREASE
                                                  IN CASH AND CASH EQUIVALENTS                                                            
|                                                                                                                                                   
|CASH
                                                  AND CASH EQUIVALENTS - BEGINNING
                                                  OF PERIOD
|                                                                                                                                                   
|CASH
                                                  AND CASH EQUIVALENTS - END
                                                  OF PERIOD      
|                                                                                                                                                   
|SUPPLEMENTAL
                                                  DISCLOSURE OF CASH FLOW INFORMATION:                                                
|Cash
                                        paid during the period for:                                                                           
|Interest
                                        paid                                                                                              
|Income
                                        taxes paid                                                                                          



|The accompanying notes are an integral
                                                            part of these consolidated
                                                            financial statements
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

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PRECISION AEROSPACE COMPONENTS, INC.(Formerly Jordan 1 Holdings Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2007 and 2006

(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, 2006 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 (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.  Inventory consists of finished goods for resale at June 30, 2007.



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 years
|---------------------- |  | -------
|Leasehold improvements |  | **     
|Computers              |  | 5 years
|Furniture and fixtures |  | 7 years
|Equipment              |  | 5 years





** Shorter of life or lease term.



---

PRECISION
                              AEROSPACE COMPONENTS, INC.(Formerly Jordan 1 Holdings Company)

NOTES
                              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2007 and 2006

(Unaudited)

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.





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 42 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.



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 per Common Share



Basic earnings 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 earnings per share exclude any dilutive effects of options, warrants and other stock-based compensation, which are included in diluted earnings per share.

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PRECISION
                              AEROSPACE COMPONENTS, INC.(Formerly Jordan 1 Holdings Company)

NOTES
                              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2007 and 2006

(Unaudited)

3. PROPERTY AND EQUIPMENT-NET

|                                             |          |  |  |  |        
|-------------------------------------------- | -------- |  |  |  | -------
|                                             |          |  |  |  | 2007   
|                                             |          |  |  |  |        
|Furniture and Fixtures                       | $2,392  
|Equipment and other                          | 348,184 
|Leasehold Improvements                       | 6,487   
|                                             |          |  |  |  | 357,063
|                                             |          |  |  |  |        
|Less Accumated Depreciation and Amortization | (61,896)
|                                             |          |  |  |  |        
|Property and Equipment, net                  | $295,167





Substantially all of the Company's property and equipment are pledged as collateral for its loans.



Depreciation expense ended June 30, 2007 and 2006 was $ 38,126 and $0 respectively.



4. ACCOUNTS PAYABLE AND ACCRUED EXPENSES



Accounts payable and accrued expenses as of June 30, 2007 consist of the following:





|                 |          |  |  | 2007
|---------------- | -------- |  |  | ----
|                 |          |  |  |     
|Accounts payable | $580,352
|Accrued expenses | 109,231 
|Total            | $689,583





5. COMMITMENTS AND CONTINGENCIES



The Company leases office space for its operations under a lease which expires July 20, 2007.  The Company has an option to extend the lease.  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 will be the prime rate 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.

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PRECISION
                              AEROSPACE COMPONENTS, INC.(Formerly Jordan 1 Holdings Company)

NOTES
                              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2007 and 2006

(Unaudited)



5. COMMITMENTS AND CONTINGENCIES (CONTINUED)



On March 23, 2007, the Company was notified that a complaint (the Complaint) had been filed against it, its directors and a major investor, in the United States District Court for the Eastern District of Pennsylvania by Robert Moyer, its former president and chief executive officer.  The Complaint against the Company alleges 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.  Mr. Moyer had been relieved of his responsibilities on January 18, 2007.  The Complaint demands relief aggregating over $460,000 plus compensatory and punitive damages.  The Company believes this Complaint has no merit and will vigorously defend the suit and will consider any appropriate rights and counterclaims.



6. LONG-TERM DEBT AND LINE OF CREDIT



Long-term debt as of June 30, 2007 consists of the following:



|                                                                                                                                                     |  | 2007 |          
|---------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---------
|$1,000,000 five year convertible interest only unsecured term loan at a 14% interest rate. Due 2011                                                  |  | $    | 1,000,000
|$750,000 subordinated term loan due April 30, 2009 secured by all assets equipment at a variable rate of Prime plus 1% (9.25% on December 31, 2006). |  |      | 600,000  
|                                                                                                                                                     |  |      |          
|                                                                                                                                                     |  |      |          
|                                                                                                                                                     |  |      | 1,600,000
|Less current portion                                                                                                                                 |  |      | 300,000  
|                                                                                                                                                     |  | $    | 1,300,000





Future principal payments on long-term debt for the next 5 years are as follows:



|2007       |  | $ | 300,000   | 
|---------- |  | - | --------- | 
|2008       |  |   | 150,000   | 
|2009       |  |   | 150,000   | 
|2010       |  |   | 0         | 
|2011       |  |   | 1,000,000 | 
|Thereafter |  |   | 0         | 
|           |  | $ | 1,600,000 | 

---

PRECISION
                              AEROSPACE COMPONENTS, INC.(Formerly Jordan 1 Holdings Company)

NOTES
                              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2007 and 2006

(Unaudited)



7. ACQUISITION



On July 20, 2006, the Company acquired all the assets and certain liabilities of Freundlich Supply, a New York corporation which operates 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, $2,2800,000 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 has been determined and the purchase price has been allocated as follows:



|                        |  |   |          
|----------------------- |  | - | ---------
|Accounts Receivable     |  | $ | 1,113,686
|Inventory               |  |   | 2,521,153
|Prepaid Expenses        |  |   | 9,946    
|Deposits                |  |   | 400      
|Furniture and Equipment |  |   | 200,000  
|Goodwill                |  |   | 2,221,745
|                        |  |  
|Total Assets            |  | $ | 6,066,930
|Accounts Payable        |  |   | 779,005  
|Accrued Expenses        |  |   | 23,982   
|                        |  |  
|Total Purchase Price    |  | $ | 5,263,943
|                        |  |  



Additionally, $221,370 was recognized as Goodwill for the profit of 20 days, for the period of July 1-20, 2006.

---

PRECISION
                              AEROSPACE COMPONENTS, INC.(Formerly Jordan 1 Holdings Company)

NOTES
                              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2007 and 2006

(Unaudited)



8. RESTATEMENT



The Company has restated its June 30, 2006 consolidated financial statements to reflect the proper accounting of the merger dated July 20, 2006.



|                                    | Six Months ended June 30, |  | Three Months ended June 30,
|----------------------------------- | ------------------------- |  | ---------------------------
|                                    | Reported                  |  | Restated                   
|                                    | 2006                      |  | 2006                       
|                                    |                           |  |                            
|REVENUE - SALES                     | $5,385,942                |  | $-                         
|                                    |                           |  |                            
|TOTAL REVENUE                       | 5,385,942                 |  | -                          
|                                    |                           |  |                            
|TOTAL COSTS OF GOODS SOLD           | 3,449,224                 |  | -                          
|                                    |                           |  |                            
|GROSS PROFIT                        | 1,936,718                 |  | -                          
|                                    |                           |  |                            
|OPERATING EXPENSES                 
|General and administrative expenses | 828,107                   |  | -                          
|Professional Fees                   | -                         |  | -                          
|Depreciation                        | 1,580                     |  | -                          
|Total Expenses                      | 829,687                   |  | -                          
|                                    |                           |  |                            
|NET INCOME BEFORE OTHER (EXPENSE)   | 1,107,031                 |  | -                          
|                                    |                           |  |                            
|OTHER INCOME (EXPENSE)             
|Interest expense                    | (27,091)                  |  | -                          
|                                    |                           |  |                            
|NET INCOME BEFORE                   | -                         |  |                            
|PROVISION FOR INCOME TAXES          | 1,079,940                 |  | -                          
|                                    |                           |  |                            
|Provision for income taxes          | 486,000                   |  | -                          
|                                    |                           |  |                            
|NET INCOME APPLICABLE              
|TO COMMON SHARES                    | $593,940                  |  | $-                         
|                                    |                           |  |                            
|NET INCOME PER BASIC SHARES         | $0.02                     |  | $-                         
|                                    |                           |  |                            
|NET INCOME PER DILUTED SHARES       | $0.02                     |  | $-                         
|                                    |                           |  |                            
|WEIGHTED AVERAGE NUMBER OF         
|BASIC COMMON SHARES OUTSTANDING     | 31,670,066                |  | 39,670,066                 
|                                    |                           |  |                            
|WEIGHTED AVERAGE NUMBER OF         
|FULLY DILUTED COMMON SHARES        
|OUTSTANDING                         | 37,292,066                |  | 40,380,066                 





---



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 2006 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.



Note



The reader is directed to the explanatory statement at the first page of this Form 10-QSB.



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 six and three months ending June 2006 have been restated to properly account for the acquisition of the Freundlich assets which occurred after the period of this report.  During the six month period of this report in 2006 the Company did not have operations.  The results for the six months ended June 2007 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)

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subsidiary.



Overview



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. 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 authorizing 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 40 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 31%, of our total sales.  No other customer accounts for more than 10% of our sales.



Freundlich



During the fiscal year 2007 the Company intends to have Freundlich build on the base that has made it successful since its predecessor was originally started in 1938.



In this regard, the Company last year invested in additional equipment and inventory to better enable Freundlich to meet the needs of its customers.  The new, automated, packaging machine which became operational during the fourth quarter of 2006 now 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.



Freundlich has also invested in new computer equipment as well as a new integrated management control, inventory control, sales and shipping management program which, when fully implemented, will enhance overall operations.  Freundlich has identified several substantial enhancements which it is having developed by the software company that developed the program for inclusion in the program.



With these important investments in place, Freundlich does not anticipate any material additional capital expenditures on plant and equipment during this coming year.  However, Freundlich will leverage its new capabilities consistent with both industry norms and enhancing Freundlich's operations.  Additional communications capabilities, an improved Web presence and enhanced order capabilities, are all either planned or being explored.



There is an ongoing production under-capacity in the fastener industry, and there has been increasing costs of materials.  These factors have increased lead-times for delivery and increased costs of products.  This has required more astute management of 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.



During the period that the Company owned Freundlich the investment in inventory has been significant.  However it was done at a pace that created a strain on the Companys finances.  For a period of time during the first quarter shipments to Freundlich were severely disrupted.  This has now been fully corrected and Freundlich is receiving all of

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its orders in line with its past outstanding relationships with its suppliers.  When the shipment disruption was corrected in the first quarter, it created a surge in parts receipts which were accommodated by Freundlichs financing.  During the course of this quarter Freundlich has made progress in reducing its total debt (accounts payable as well as the amount of its line) outstanding while servicing its other debt payment obligations.  With Freundlichs new line of credit, which was obtained near the end of the first quarter, the Company has proceeded to return to normal payable performance and has resumed placing orders for an orderly growth of its inventory.



The line, along with the positive cash flow from operations (without giving effect to inventory fluctuation), should be sufficient to enable Freundlich to carry-on and expand its present operations, albeit at a lower rate than desired.  An issue could arise if significant unanticipated deliveries of long delayed materials were to arrive.  Freundlich is investigating expansion of its product offerings as well as additional investment in inventory beyond that which could be accommodated by its present financing.  Accordingly, to implement these expansion plans Freundlich intends to pursue additional financing.  It should be emphasized that Freundlich believes that the impact of not obtaining additional financing will only be to restrain its rate of growth.  Even without additional financing, Freundlich should continue to adequately service its customers.



Freundlichs future operations were bolstered when, in May, it was awarded a Defense Department contract (number: SPM5AZ-07-D-4845), issued pursuant to Solicitation SPM5AZ06R0055 dated Aug 8, 2006 (the Contract).  The Contract is an indefinite quantity contract (which means that its does not specifically authorize the delivery of any material and that delivery shall be made only as authorized by the issuance of specific orders for material).  The Department of Defense estimates that the total award for the two year period commencing May 2007 will be in excess of $3,500,000.  Freundlich anticipates that it can fully satisfy the requirements of this contract without any additional financing.



Freundlich believes it can expand its business with its present staff.  However, it is likely that one or two additional staff members will be retained to augment the growth and operation of Freundlich.



Additional Company initiatives



The Company during the remainder of this year, will investigate and pursue opportunities to both improve the Freundlich operation as well as additional operations which are both consistent with the Freundlich operation and with the Company's growth vision.



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 specific acquisition opportunities or ventures are being actively pursued at this time.  However it is anticipated that during the remainder of 2007, and beyond, the Company will 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.



At the Company level, the Company does not intend to add any staff until and after acquisitions warrant such addition.  Presently, many Company level activities are either outsourced or handled at the Freundlich level.



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Liquidity



The present cash flow from the activities of Freundlich is sufficient to meet both the Freundlich and the Company cash requirements, subject to the foregoing discussion regarding rate of increase of operations and expansion.



Subsequent Event



On July 31, 2007 the Company and the Investors in the transaction reported in its 8-K dated July 20, 2006 agreed that the total conversion and exercise prices of the various securities associated with the Purchase Agreement of that date are fully adjusted for the 2006 and 2007 years to be a 42% adjustment of the original ratio or price.  By the terms of the Purchase Agreement the Company was subject to a maximum adjustment of 35% of the ratio or price per year for each of the two years dependent upon the Company meeting certain earnings per share requirements.



Off Balance Sheet Arrangements



None



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.



(B) Changes In Internal Controls Over Financial Reporting



In connection with the evaluation of the Company's internal controls conducted at the end of July 2007, 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 has 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.



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PART II
OTHER INFORMATION



Item 6. Exhibits.

The following exhibits are included herein:

|            |  |                                                                                                                                                                     
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Exhibit                                                                                                                                                             
|            |  |                                                                                                                                                                     
|31.1        |  | Certification of Chief Executive Officer of the Company required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                            
|            |  |                                                                                                                                                                     
|31.2        |  | Certification of Chief Financial Officer of the Company required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                            
|            |  |                                                                                                                                                                     
|32.1        |  | 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:  September
                              21, 2007 |  | PRECISION AEROSPACE                  
|                                                         |  | COMPONENTS, INC.                     
|                                                         |  | /s/ Andrew S. Prince                 
|                                                         |  |                                      
|                                                         |  | Andrew S. Prince                     
|                                                         |  | President and Chief Executive Officer



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EXHIBIT INDEX

|               |  |                                                                                                                                                                     
|-------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit Number |  | Description                                                                                                                                                         
|               |  |                                                                                                                                                                     
|31.1           |  | Certification of Chief Executive Officer of the Company required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                            
|               |  |                                                                                                                                                                     
|31.2           |  | Certification of Chief Financial Officer of the Company required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                            
|               |  |                                                                                                                                                                     
|32.1           |  | 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