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: March 31, 2007



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 Employer
Identification 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 [  ] 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 ]





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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 second 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.

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TABLE OF CONTENTS

|                             |  |                                                               |  |      |    | 
|---------------------------- |  | ------------------------------------------------------------- |  | ---- | -- | 
|                             |  |                                                               |  | Page
|PART I
FINANCIAL INFORMATION
|Item 1.                      |  | Financial Statements                                          |  |      | 3  | 
|                             |  | 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                                            |  |      | 13 | 
|Item 3.                      |  | Controls and Procedures                                       |  |      | 16 | 
|PART II
OTHER INFORMATION   
|Item 6.                      |  | Exhibits                                                      |  |      | 17 | 
|Signatures                   |  |                                                               |  |      | 17 | 



---

PART I  FINANCIAL INFORMATION



Item 1. FINANCIAL STATEMENTS





PRECISION AEROSPACE COMPONENTS, INC.

(Formerly Jordan 1 Holdings Company)

CONDENSED
                    CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2007 AND 2006 -UNAUDITED



---

PRECISION AEROSPACE COMPONENTS, INC.

(Formerly Jordan 1 Holdings Company)

CONDENSED
                    CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2007 AND 2006 -UNAUDITED







INDEX





|CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(UNAUDITED):                                                                                                                   |  | Pages
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----
|                                                                                                                                                                           |  |      
|Condensed Consolidated Balance Sheet as of March 31,
                              2007 (Unaudited)                                                                        |  | 5    
|                                                                                                                                                                           |  |      
|Condensed Consolidated Statements of Income for the Three
                              Months
                              Ended March 31, 2007 and 2006 (Unaudited)     |  | 6    
|                                                                                                                                                                           |  |      
|Condensed Consolidated Statements of Cash Flows for the
                              Three Months Ended
                              March 31, 2007 and 2006 (Unaudited) |  | 7    
|                                                                                                                                                                           |  |      
|Notes to Condensed Consolidated Financial Statements                                                                                                                       |  | 8-12 

> 4

|PRECISION AEROSPACE COMPONENTS, INC.                             |                
|---------------------------------------------------------------- | ---------------
|(Formerly Jordan 1 Holdings Company)                             |                
|CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)                 |                
|March 31, 2007                                                   |                
|                                                                 |                
|ASSETS                                                          
|                                                                 |                
|                                                                 |                
|CURRENT ASSETS                                                   |                
|Cash and cash equivalents                                        | $       108,462
|Accounts receivable, net                                         | 754,006        
|Inventory, net                                                   | 3,329,156      
|Prepaid expenses                                                 | 79,741         
|                                                                 | 4,271,365      
|                                                                 |                
|PROPERTY AND EQUIPMENT - Net                                     | 310,905        
|                                                                 |                
|OTHER ASSETS                                                     |                
|Deposits                                                         | 57,700         
|Goodwill                                                         | 2,443,114      
|                                                                 | 2,500,814      
|                                                                 |                
|TOTAL ASSETS                                                     | $    7,083,084 
|                                                                 |                
|                                                                 |                
|LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)
|                                                                 |                
|CURRENT LIABILITIES                                              |                
|                                                                 |                
|Accounts payable and accrued expenses                            | $       821,847
|Subordinated note payable-current portion                        | 300,000        

|Loan payable-current portion                                   | 236,765     | 
|-------------------------------------------------------------- | ----------- | 
|Income taxes payable                                           | 189,850     | 
|Redeemable warrants                                            | 50,000      | 
|                                                               | 1,598,462   | 
|LONG -TERM LIABILITIES                                         |             | 
|Subordinated note payable-long term portion                    | 375,000     | 
|Convertible note payable                                       | 1,000,000   | 
|                                                               | 2,973,462   | 
|TOTAL LIABILITIES                                              |             | 
|                                                               |             | 
|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)                                    | (2,583,735) | 
|TOTAL STOCKHOLDERS'  EQUITY (DEFICIT)                          | 3,258,265   | 
|                                                               |             | 

|TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) | $    7,083,084 | 
|---------------------------------------------------------------------- | -------------- | 
|                                                                       |                | 



|The accompanying notes are an intergral part of these
                              condensed 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 THREE MONTHS ENDED MARCH 31, 2007 AND 2006     
|                                                       
|                                                       
|                                                       
|                                                       
|REVENUE - SALES                                        
|                                                       
|TOTAL REVENUE                                          
|                                                       
|TOTAL COSTS OF GOODS SOLD                              
|                                                       
|GROSS PROFIT                                           
|                                                       
|OPERATING EXPENSES                                     
|General and administrative expenses                    
|Professional Fees                                      
|Depreciation                                           
|                                                       
|                                                       
|NET INCOME BEFORE OTHER (EXPENSE)                      
|                                                       
|OTHER (EXPENSE)                                        
|Interest expense                                       
|                                                       
|                                                       
|NET INCOME BEFORE PROVISION FOR INCOME TAXES           
|                                                       
|Provision for income taxes                             
|                                                       
|NET INCOME APPLICABLE TO COMMON SHARES                 
|                                                       
|NET INCOME PER BASIC SHARES                            
|                                                       
|NET INCOME PER DILUTED SHARES                          
|                                                       
|WEIGHTED AVERAGE NUMBER OF BASIC COMMON                

|SHARES OUTSTANDING                       | 33,324,691    |  | 39,670,666
|---------------------------------------- | ------------- |  | ----------
|                                         |               |  |           
|WEIGHTED AVERAGE NUMBER OF FULLY DILUTED |               |  |           
|COMMON SHARES OUTSTANDING                | 6,913,003,091 |  | 39,670,666
|                                         |               |  |           



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



6

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|PRECISION AEROSPACE COMPONENTS, INC.             
|-------------------------------------------------
|(Formerly Jordan 1 Holdings Company)             
|STATEMENTS OF CASH FLOWS                         
|FOR THE THREE MONTHS ENDED MARCH 31, 2007        
|                                                 
|                                                 
|                                                 
|                                                 
|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
|Payment of principle of subordinated note payable
|                                                 
|Net cash provided by financing activities        

|                                                  |  |  |               |  |              
|------------------------------------------------- |  |  | ------------- |  | -------------
|INCREASE IN CASH AND CASH EQUIVALENTS             |  |  | 41,368        |  | -            
|                                                  |  |  |               |  |              
|CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD   |  |  | 67,094        |  | 500          
|                                                  |  |  |               |  |              
|CASH AND CASH EQUIVALENTS - END OF PERIOD         |  |  | $ 108,462     |  | $        500 
|                                                  |  |  |               |  |              
|                                                  |  |  |               |  |              
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |               |  |              
|Cash paid during the period for:                  |  |  |               |  |              
|Interest paid                                     |  |  | $   17,483    |  | $           -
|Income taxes paid                                 |  |  | $           - |  | $           -
|                                                  |  |  |               |  |              



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



7

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> PRECISION AEROSPACE COMPONENTS, INC.
>                     (Formerly Jordan 1 Holdings Company)
>                     NOTES
>                                         TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
>                     MARCH 31, 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 March
>                               31, 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.
>                     
>                     8PRECISION AEROSPACE COMPONENTS, INC.
>                     (Formerly Jordan 1 Holdings Company)
>                     NOTES
>                                         TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
>                     MARCH 31, 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.
>                     
>                     9PRECISION AEROSPACE COMPONENTS, INC.
>                     (Formerly Jordan 1 Holdings Company)
>                     NOTES
>                     TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
>                     MARCH 31, 2007 AND 2006 -UNAUDITED
>                     
>                     
>                     3. PROPERTY AND EQUIPMENT-NET

|                                             |          |  |  |  |        
|-------------------------------------------- | -------- |  |  |  | -------
|                                             |          |  |  |  |        
|                                             |          |  |  |  |        
|Furniture and Fixtures                       | $2,392  
|Equipment and other                          | 344,859 
|Leasehold Improvements                       | 6,487   
|                                             |          |  |  |  | 353,738
|                                             |          |  |  |  |        
|Less Accumated Depreciation and Amortization | (42,833)
|                                             |          |  |  |  |        
|Property and Equipment, net                  | $310,905

> Substantially all of the Company's property and equipment are pledged as collateral for its loans.
>                     
>                     Depreciation expense ended March 31, 2007 and 2006 was $ 19,063 and $0 respectively.
>                     
>                     4. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
>                     
>                     Accounts payable and accrued expenses as of March 31, 2007 consists of the following:

|                 |          |  |  | 2006
|---------------- | -------- |  |  | ----
|                 |          |  |  |     
|Accounts payable | $714,630
|Accrued expenses | 107,217 
|Total            | $821,847

> 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.
>                     10PRECISION AEROSPACE COMPONENTS, INC.
>                     (Formerly Jordan 1 Holdings Company)
>                     NOTES
>                     TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
>                     MARCH 31, 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 March 31, 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). |  |      | 675,000  
|                                                                                                                                                     |  |      |          
|                                                                                                                                                     |  |      |          
|                                                                                                                                                     |  |      | 1,675,000
|Less current portion                                                                                                                                 |  |      | 300,000  
|                                                                                                                                                     |  | $    | 1,375,000

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

|2007       |  | $ | 225,000   | 
|---------- |  | - | --------- | 
|2008       |  |   | 300,000   | 
|2009       |  |   | 150,000   | 
|2010       |  |   | 0         | 
|2011       |  |   | 1,000,000 | 
|Thereafter |  |   | 0         | 
|           |  | $ | 1,675,000 | 

> 11PRECISION AEROSPACE COMPONENTS, INC.
>                     (Formerly Jordan 1 Holdings Company)
>                     NOTES
>                     TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
>                     MARCH 31, 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.
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     
>                     12
>                     
>                     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 three months ended March 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)
>                               subsidiary.
>                     13
>                     
>                     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.
>                     
>                     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 quarter shipments to Freundlich were severely disrupted.  This has now been fully corrected and Freundlich is receiving all of its orders in line with its past outstanding relationships with its suppliers.  With Freundlichs
>                               new line of credit, which was obtained this quarter,
>                               the Company has proceeded to return to normal payable
>                               performance and can resume an orderly growth of
>                               its inventory.
>                     14
>                     
>                     The
>                               new credit line has a term of one year.  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.  However, 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
>                                         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 this quarter has completed
>                               substantially all of the processes consistent with
>                               the acquisition of Freundlich and has realigned
>                               management.  Accordingly, the Company
>                                         during the remainder of this year, most
>                               probably commencing with the third quarter, can
>                               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.
>                     
>                     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.
>                     
>                     Off Balance Sheet Arrangements
>                     None
>                     
>                     Subsequent Events
>                     
>                     On
>                               May 4, 2007, Freundlich 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
>                     15
>                     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.
>                     
>                     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.
>                     
>                     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 April
>                               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.
>                     16
>                     
>                     
>                     PART II
>                               OTHER INFORMATION
>                     Item 1. Legal Proceedings
>                     
>                     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
>                     
>                     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       
|                                                         |  | Chief Executive Officer

> 17

>