----

----

|                                                          |   |                             |
|---------------------------------------------------------------|--------|----------------------------------|
| Delaware                                                      |   | 20-4763096                       |
| (State or Other Jurisdiction ofIncorporation or Organization) |   | (IRS EmployerIdentification No.) |

|   | Large Accelerated Filer [  ]                                                               |   | Accelerated Filer [  ] |
|--------|------------------------------------------------------------------------------------------------------|--------|----------------------------------|
|   | Non-Accelerated Filer   [  ]  (Do not check if a smaller reporting company) |   | Smaller Reporting Company [X]    |

----

|                        |                                                                                        |   | Page      |
|-----------------------------|---------------------------------------------------------------------------------------------|--------|-----------|
| PART IFINANCIAL INFORMATION |
|                        |                                                                                        |   |      |
| Item 1.                | Financial Statements                                                                        |   |   3  |
|                        |                                                                                        |   |      |
|                        | Condensed Consolidated Balance Sheets — (Unaudited)                                   |   | 4         |
|                        |                                                                                        |   |      |
|                        | Condensed Consolidated Statements of Income (Loss)— (Unaudited)                       |   | 5         |
|                        |                                                                                        |   |      |
|                        | Condensed Consolidated Statements of Cash Flows — (Unaudited)                         |   | 6         |
|                        |                                                                                        |   |      |
|                        | Notes to Condensed Consolidated Financial Statements                                        |   | 7         |
|                        |                                                                                        |   |      |
| Item 2.                | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 12        |
|                        |                                                                                        |   |      |
| Item 3.                | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 16        |
|                        |                                                                                        |   |      |
| Item 4 and 4T               | Controls and Procedures                                                                     |   |   16 |
|                        |                                                                                        |   |      |
| PART IIOTHER INFORMATION    |
| Item 6.                | Exhibits                                                                                    |   | 17        |
|                        |                                                                                        |   |      |
| Signatures                  |                                                                                        |   | 17        |

----

|   | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED):                                                                    | Pages  |
|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                        |   |
|   | Condensed Consolidated Balance Sheets as of September 30, 2009 (Unaudited) and December 31, 2008 (Audited)                  | 4      |
|   |                                                                                                                        |   |
|   | Condensed Consolidated Statements of Operations for the Nine and Three Months Ended September 30, 2009 and 2008 (Unaudited) | 5      |
|   |                                                                                                                        |   |
|   | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2009 and 2008 (Unaudited)           | 6      |
|   |                                                                                                                        |   |
|   |  Notes to Condensed Consolidated Financial Statements                                                                  | 7-11   |
|   |                                                                                                                        |   |

----

| PRECISION AEROSPACE COMPONENTS, INC.                                   |   |
|------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                  |   |
| (UNAUDITED)                                                            |   |
|                                                                   |   |   |   |   |   |   |
| ASSETS                                                                 |   |
|                                                                   |   | September 30, |   |   | December 31, |   |
|                                                                   |   | 2009 |   |   | 2008 |   |
| CURRENT ASSETS                                                         |   |   |   |   |   |   |
| Cash and cash equivalents                                              |   | $ | 185,634 |   |   | $ | 176,483 |   |
| Accounts receivable, net                                               |   |   | 1,016,223 |   |   |   | 874,124 |   |
| Inventory, net                                                         |   |   | 5,167,594 |   |   |   | 4,592,247 |   |
| Prepaid expenses                                                       |   |   | 14,854 |   |   |   | 39,693 |   |
| Prepaid income taxes                                                   |   |   | - |   |   |   | 98,616 |   |
|                                                                   |   |   | 6,384,305 |   |   |   | 5,781,163 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT - Net                                           |   |   | 140,759 |   |   |   | 184,634 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                           |   |   |   |   |   |   |   |   |
| Deposits                                                               |   |   | 24,700 |   |   |   | 24,700 |   |
| Goodwill                                                               |   |   | 2,221,744 |   |   |   | 2,221,744 |   |
|                                                                   |   |   | 2,246,444 |   |   |   | 2,246,444 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                           |   | $ | 8,771,508 |   |   | $ | 8,212,241 |   |
|                                                                   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)       |   |
|                                                                   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                    |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                  |   | $ | 375,452 |   |   | $ | 252,530 |   |
| Subordinated note payable-current portion                              |   |   | - |   |   |   | 75,000 |   |
| Loan payable-current portion                                           |   |   | 2,797,506 |   |   |   | 2,722,506 |   |
| Income taxes payable                                                   |   |   | 74,664 |   |   |   | - |   |
|                                                                   |   |   | 3,247,622 |   |   |   | 3,050,036 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                      |   |   | 3,247,622 |   |   |   | 3,050,036 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| TEMPORARY EQUITY                                                       |   |   |   |   |   |   |   |   |
| Preferred Stock A $.001 par value; 7,100,000 shares authorized         |   |   |   |   |   |   |   |   |
| 5,274,152 shares issued and outstanding                                |   |   | 5,274 |   |   |   | 5,274 |   |
| Preferred Stock B $.001 par value; 2,900,000 shares authorized         |   |   |   |   |   |   |   |   |
| 2,811,000 shares issued and outstanding                                |   |   | 2,811 |   |   |   | 2,811 |   |
| Additional paid-in capital - preferred stock                           |   |   | 2,916,173 |   |   |   | 2,916,173 |   |
| Additional paid-in capital -options                                    |   |   | 4,417,917 |   |   |   | 4,417,917 |   |
| Additional paid-in capital -warrants                                   |   |   | 843,272 |   |   |   | 843,272 |   |
|                                                                   |   |   | 8,185,447 |   |   |   | 8,185,447 |   |
| 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 |   |   |   | 33,325 |   |
| Additional paid-in capital                                             |   |   | 2,892,502 |   |   |   | 2,892,502 |   |
| Retained earnings (deficit)                                            |   |   | (5,587,388 | ) |   |   | (5,949,069 | ) |
| TOTAL STOCKHOLDERS'  EQUITY (DEFICIT)                        |   |   | (2,661,561 | ) |   |   | (3,023,242 | ) |
|                                                                   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) |   | $ | 8,771,508 |   |   | $ | 8,212,241 |   |
|                                                                   |   |   |   |   |   |   |   |   |

----

| PRECISION AEROSPACE COMPONENTS, INC.                                                                                                                 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)                                                                                              |   |
| FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008                                                                                      |   |
| (UNAUDITED)                                                                                                                                          |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                 |   | Nine Months ended September 30, |   |   | Three Months ended September 30, |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                 |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUE - SALES                                                                                                                                      |   | $ | 7,826,999 |   |   | $ | 8,601,266 |   |   | $ | 2,362,561 |   |   | $ | 2,763,986 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL REVENUE                                                                                                                                        |   |   | 7,826,999 |   |   |   | 8,601,266 |   |   |   | 2,362,561 |   |   |   | 2,763,986 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL COST OF GOODS SOLD                                                                                                                             |   |   | 5,464,927 |   |   |   | 5,883,410 |   |   |   | 1,586,593 |   |   |   | 1,940,493 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                                                                                                         |   |   | 2,362,072 |   |   |   | 2,717,856 |   |   |   | 775,968 |   |   |   | 823,493 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses ($4,378,930 and $525,468  noncash compensation for the nine and three months ended September 30, 2008) |   |   | 1,406,809 |   |   |   | 5,789,633 |   |   |   | 450,601 |   |   |   | 998,484 |   |
| Professional Fees                                                                                                                                    |   |   | 222,659 |   |   |   | 223,841 |   |   |   | 71,626 |   |   |   | 59,431 |   |
| Depreciation                                                                                                                                         |   |   | 60,642 |   |   |   | 59,996 |   |   |   | 20,332 |   |   |   | 20,068 |   |
| Total Expenses                                                                                                                                       |   |   | 1,690,110 |   |   |   | 6,073,470 |   |   |   | 542,559 |   |   |   | 1,077,983 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE OTHER INCOME (EXPENSE)                                                                                                          |   |   | 671,962 |   |   |   | (3,355,614 | ) |   |   | 233,409 |   |   |   | (254,490 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                                     |   |   | (104,832 | ) |   |   | (170,480 | ) |   |   | (43,012 | ) |   |   | (44,836 | ) |
|                                                                                                                                                 |   |   | (104,832 | ) |   |   | (170,480 | ) |   |   | (43,012 | ) |   |   | (44,836 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES                                                                                                      |   |   | 567,130 |   |   |   | (3,526,094 | ) |   |   | 190,397 |   |   |   | (299,326 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                                                                                           |   |   | 205,449 |   |   |   | 358,613 |   |   |   | 91,668 |   |   |   | 85,296 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) APPLICABLE TO COMMON SHARES                                                                                                        |   | $ | 361,681 |   |   | $ | (3,884,707 | ) |   | $ | 98,729 |   |   | $ | (384,622 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)  PER BASIC SHARES                                                                                                        |   | $ | 0.01 |   |   | $ | (0.12 | ) |   | $ | 0.00 |   |   | $ | (0.01 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)  PER DILUTED SHARES                                                                                                      |   | $ | - |   |   | $ | ** |   |   | $ | - |   |   | $ | ** |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF BASIC COMMON                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES OUTSTANDING                                                                                                                             |   |   | 33,324,691 |   |   |   | 33,324,691 |   |   |   | 33,324,691 |   |   |   | 33,324,691 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF FULLY DILUTED                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COMMON SHARES OUTSTANDING                                                                                                                      |   |   | 8,271,774,396 |   |   |   | 8,923,618,083 |   |   |   | 8,139,190,795 |   |   |   | 8,772,556,464 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| PRECISION AEROSPACE COMPONENTS, INC.                                                      |   |
|-------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                           |   |
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008                                     |   |
| (UNAUDITED)                                                                               |   |
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   | 2009 |   |   | 2008 |   |
|                                                                                      |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |   |   |   |   |   |
|    Net (loss) income                                                       |   | $ | 361,681 |   |   | $ | (3,884,707 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net income (loss) to net cash                                    |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                               |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                             |   |   | 60,642 |   |   |   | 59,996 |   |
| Stock Based Compensation                                                                  |   |   | - |   |   |   | 4,378,930 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Changes in assets and liabilities:                                                        |   |   |   |   |   |   |   |   |
| Decrease (increase) in assets                                                             |   |   |   |   |   |   |   |   |
|    Decrease (increase) in accounts receivable                              |   |   | (142,099 | ) |   |   | (113,066 | ) |
|    Decrease (increase) in inventory                                        |   |   | (575,347 | ) |   |   | (546,138 | ) |
|    Decrease (increase) in prepaid expenses                                 |   |   | 24,839 |   |   |   | (48,606 | ) |
|    Decrease (increase) in prepaid income taxes                             |   |   | 98,616 |   |   |   | - |   |
|    Decrease (increase) in security deposits                                |   |   | - |   |   |   | (12,000 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Increase (decrease) in liabilities                                                        |   |   |   |   |   |   |   |   |
|    Increase (decrease)  in accounts payable and accrued expenses |   |   | 122,921 |   |   |   | (236,306 | ) |
|    Increase (decrease) in income taxes payable                             |   |   | 74,664 |   |   |   | (360,280 | ) |
| Total adjustments                                                                         |   |   | (335,764 | ) |   |   | 3,122,530 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                       |   |   | 25,917 |   |   |   | (762,177 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |   |   |   |   |   |   |   |
|    (Purchase) of property and equipment                                    |   |   | (16,766 | ) |   |   | (4,116 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash (used in) investing activities                                                   |   |   | (16,766 | ) |   |   | (4,116 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |   |   |   |   |   |   |   |
|     (Payment) of convertible note payable                             |   |   | - |   |   |   | (1,000,000 | ) |
|     (Payment) of S/T loan payable Greater Bay                         |   |   | - |   |   |   | (387,466 | ) |
|     Proceeds from issuance of short term loan payable- IDB            |   |   | 100,000 |   |   |   | 2,722,506 |   |
|     (Payment) of principle of short term loan payable - IDB           |   |   | (25,000 | ) |   |   | - |   |
|     (Payment) of principle of subordinated note payable               |   |   | (75,000 | ) |   |   | (300,000 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                                 |   |   | - |   |   |   | 1,035,040 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                          |   |   | 9,151 |   |   |   | 268,747 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                           |   |   | 176,483 |   |   |   | 154,709 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                 |   | $ | 185,634 |   |   | $ | 423,456 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                         |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                          |   |   |   |   |   |   |   |   |
|     Interest paid                                                     |   | $ | 93,195 |   |   | $ | 169,299 |   |
|     Income taxes paid                                                 |   | $ | 27,329 |   |   | $ | 651,753 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NONCASH ACTIVITY:                                                |   |   |   |   |   |   |   |   |
|   Issuance of options for stock based compensation                              |   | $ | - |   |   | $ | 4,378,930 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   |

----

|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2009 AND 2008 (UNAUDITED) |
|-----------------------------------------------------------------------------------------------------------------------------------|

| Warehouse equipment    | 5 years         |
|------------------------|----------------------|
| Leasehold improvements | 5 - 39 years ** |
| Computers              | 5 years         |
| Furniture and fixtures | 7 years         |
| Equipment              | 5 years         |

----

|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2009 AND 2008 (UNAUDITED) |
|-----------------------------------------------------------------------------------------------------------------------------------|

----

|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2009 AND 2008 (UNAUDITED) |
|-----------------------------------------------------------------------------------------------------------------------------------|

|                                         |   |               |     |   |              |   |
|----------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                         |   | September 30, 2009 |     |   | December 31, 2008 |   |
|                                         |   |               |     |   |              |   |
| Furniture and fixtures                       |   | $                  | 2,392    |   |              | $      | 2,392 |   |
| Equipment and other                          |   |               | 375,067  |   |              |   | 358,300 |   |
| Leasehold improvements                       |   |               | 6,487    |   |              |   | 6,487 |   |
|                                         |   |               | 383,946  |   |              |   | 367,179 |   |
|                                         |   |               |     |   |              |   |   |   |
| Less accumated depreciation and amortization |   |               | (243,187 | )      |              |   | (182,545 | ) |
|                                         |   |               |     |   |              |   |   |   |
| Property and equipment, net                  |   | $                  | 140,759  |   |              | $      | 184,634 |   |

|             |   | September 30, 2009 |    |   | December 31, 2008 |   |
|------------------|--------|--------------------|---------|--------|-------------------|--------|
|             |   |               |    |   |              |   |
| Accounts payable |   | $                  | 349,179 |   |              | $      | 237,390 |   |
| Accrued expenses |   |               | 26,273  |   |              |   | 15,140 |   |
| Total            |   | $                  | 375,452 |   |              | $      | 252,530 |   |

----

|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2009 AND 2008 (UNAUDITED) |
|-----------------------------------------------------------------------------------------------------------------------------------|

| Short-term debt as of September 30, 2009 and December 31, 2008 consists of the following:                                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                                   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                   |   |   |   |   |   |   |
| Revolving funding facility. Due 2009 (See note 5).                                                                                                     |   | $ | 2,797,506 |   |   | $ | 2,722,506 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| $750,000 subordinated term loan due April 30, 2009 secured by all assets equipment at a variable rate of Prime plus 1% (6.25 on March  31, 2008). |   |   | - |   |   |   | 75,000 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                   |   | $ | 2,797,506 |   |   | $ | 2,797,506 |   |

----

|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2009 AND 2008 (UNAUDITED) |
|-----------------------------------------------------------------------------------------------------------------------------------|

|  Assets                             |   | Level I |   |   | Level II |   |      | Level III |   |   | Total  |   |
|------------------------------------------|--------|---------|--------|--------|----------|--------|-----------|-----------|--------|--------|--------|--------|
|                                     |   |    |   |   |     |   |      |      |   |   |   |   |
|                                     |   |    |   |   |     |   |      |      |   |   |   |   |
|  Cash equivalents    |   | $       | -      |   |     | $      | -         |      |   | $      | -      |   |   | $ | - |   |
|                                     |   |    |   |   |     |   |      |      |   |   |   |   |   |   |   |   |
|  Total Assets                       |   | $       | -      |   |     | $      | -         |      |   | $      | -      |   |   | $ | - |   |
|                                     |   |    |   |   |     |   |      |      |   |   |   |   |   |   |   |   |
|  Liabilities                        |   | $       | -      |   |     | $      | 2,797,506 |      |   | $      | -      |   |   | $ | 2,797,506 |   |
|                                     |   |    |   |   |     |   |      |      |   |   |   |   |   |   |   |   |
|  Total Liabilities                  |   | $       | -      |   |     | $      | 2,797,506 |      |   | $      | -      |   |   | $ | 2,797,506 |   |

|                                             |   | Originally FiledFor the periodendedSeptember 30, 2008 |      |   | RestatedFor the periodendedSeptember 30,2008 |   |
|--------------------------------------------------|--------|-------------------------------------------------------|-----------|--------|----------------------------------------------|--------|
|                                             |   |                                                  |      |   |                                         |   |
|  Assets                                     |   | $                                                     | 8,526,666 |   |                                         | $      | 8,305,296 |   |
|                                             |   |                                                  |      |   |                                         |   |   |   |
|  Liabilities                                |   | $                                                     | 3,312,430 |   |                                         | $      | 3,245,903 |   |
|  Temporary Equity                           |   |                                                  | 5,230,287 |   |                                         |   | 8,146,460 |   |
|  Stockholders' Equity                       |   |                                                  | (16,051   | )      |                                         |   | (3,087,067 | ) |
|                                             |   |                                                  |      |   |                                         |   |   |   |
|  Total Liabilities and Stockholders' Equity |   | $                                                     | 8,526,666 |   |                                         | $      | 8,305,296 |   |

----

----

----

----

|                                             |   | Originally FiledFor the periodendedSeptember 30, 2008 |      |   | RestatedFor the periodendedSeptember 30,2008 |   |
|--------------------------------------------------|--------|-------------------------------------------------------|-----------|--------|----------------------------------------------|--------|
|                                             |   |                                                  |      |   |                                         |   |
|  Assets                                     |   | $                                                     | 8,526,666 |   |                                         | $      | 8,305,296 |   |
|                                             |   |                                                  |      |   |                                         |   |   |   |
|  Liabilities                                |   | $                                                     | 3,312,430 |   |                                         | $      | 3,245,903 |   |
|  Temporary Equity                           |   |                                                  | 5,230,287 |   |                                         |   | 8,146,460 |   |
|  Stockholders' Equity                       |   |                                                  | (16,051   | )      |                                         |   | (3,087,067 | ) |
|                                             |   |                                                  |      |   |                                         |   |   |   |
|  Total Liabilities and Stockholders' Equity |   | $                                                     | 8,526,666 |   |                                         | $      | 8,305,296 |   |

----

----

|        |   |                                                                                                                                                                 |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 |

|                          |                                  |
|-------------------------------|---------------------------------------|
| Dated:  November 9, 2009 | PRECISION AEROSPACE COMPONENTS, INC.  |
|                          |  /s/ Andrew S. Prince            |
|                          |                                  |
|                          | Andrew S. Prince                      |
|                          | President and Chief Executive Officer |

----

|           |   |                                                                                                                                                                      |
|----------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 |

----