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|                                                          |   |                             |
|---------------------------------------------------------------|--------|----------------------------------|
| 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]    |

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|  TABLE OF CONTENTS |
|-------------------------|

|                        |                                                                                        |   | Page     |
|-----------------------------|---------------------------------------------------------------------------------------------|--------|----------|
| PART IFINANCIAL INFORMATION |
|                        |                                                                                        |   |     |
| Item 1.                | Financial Statements                                                                        |   |     |
|                        |                                                                                        |   |     |
|                        | Condensed Consolidated Balance Sheets — (Unaudited)                                   |   | 2        |
|                        |                                                                                        |   |     |
|                        | Condensed Consolidated Statements of Operations — (Unaudited)                         |   | 3        |
|                        |                                                                                        |   |     |
|                        | Condensed Consolidated Statements of Cash Flows — (Unaudited)                         |   | 4        |
|                        |                                                                                        |   |     |
|                        | Notes to Condensed Consolidated Financial Statements                                        |   | 5        |
|                        |                                                                                        |   |     |
| Item 2.                | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 7        |
|                        |                                                                                        |   |     |
| Item 3.                | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 9        |
|                        |                                                                                        |   |     |
| Item 4                      | Controls and Procedures                                                                     |   |   9 |
|                        |                                                                                        |   |     |
| PART IIOTHER INFORMATION    |
| Item 6.                | Exhibits                                                                                    |   | 10       |
|                        |                                                                                        |   |     |
| Signatures                  |                                                                                        |   | 10       |

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| PRECISION AEROSPACE COMPONENTS, INC. AND SUBSIDIARIES                                              |   |
|----------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                              |   |
| (UNAUDITED)                                                                                        |   |
|                                                                                               |   |   |   |   |   |   |
| ASSETS                                                                                             |   |
|                                                                                               |   | March 31, |   |   | December 31, |   |
|                                                                                               |   | 2011 |   |   | 2010 |   |
| CURRENT ASSETS                                                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                                                          |   | $ | 122,635 |   |   | $ | 328,717 |   |
| Accounts receivable                                                                                |   |   | 779,828 |   |   |   | 720,803 |   |
| Inventory, net                                                                                     |   |   | 5,143,504 |   |   |   | 5,147,785 |   |
| Prepaid expenses                                                                                   |   |   | 32,142 |   |   |   | 6,110 |   |
| Prepaid income taxes                                                                               |   |   | 62,658 |   |   |   | 63,867 |   |
|                                                                                               |   |   | 6,140,767 |   |   |   | 6,267,282 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT - Net                                                                       |   |   | 65,097 |   |   |   | 80,944 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                       |   |   |   |   |   |   |   |   |
| Deposits                                                                                           |   |   | 24,700 |   |   |   | 24,700 |   |
| Goodwill                                                                                           |   |   | 2,221,744 |   |   |   | 2,221,744 |   |
|                                                                                               |   |   | 2,246,444 |   |   |   | 2,246,444 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                       |   | $ | 8,452,308 |   |   | $ | 8,594,670 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                               |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                              |   | $ | 285,133 |   |   | $ | 412,885 |   |
| Line of credit                                                                                     |   |   | 2,142,000 |   |   |   | 2,217,000 |   |
|                                                                                               |   |   | 2,427,133 |   |   |   | 2,629,885 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| LONG -TERM LIABILITIES                                                                             |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Deferred tax liability                                                                             |   |   | 15,390 |   |   |   | 14,237 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                  |   |   | 2,442,523 |   |   |   | 2,644,122 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                      |   |   | - |   |   |   | - |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                                               |   |   |   |   |   |   |   |   |
| Preferred Stock A $.001 par value; 7,100,000 shares authorized at March 31, 2011 and December 31,  |   |   |   |   |   |   |   |   |
|  2010; 6,462,378 shares issued and outstanding". Aggregate liquidation preference $4,750,000. |   |   | 6,462 |   |   |   | 6,462 |   |
| Preferred Stock B $.001 par value; 2,900,000 shares authorized                                     |   |   |   |   |   |   |   |   |
| 0 shares issued and outstanding                                                                    |   |   | - |   |   |   | - |   |
| Common stock, $.001 par value; 100,000,000 shares authorized                                       |   |   |   |   |   |   |   |   |
| at March 31, 2011 and December 31, 2010; 2,865,079 shares issued and outstanding                   |   |   | 2,865 |   |   |   | 2,865 |   |
| Additional paid-in capital                                                                         |   |   | 11,191,111 |   |   |   | 11,191,111 |   |
| Accumulated deficit                                                                                |   |   | (5,190,653 | ) |   |   | (5,249,890 | ) |
| TOTAL STOCKHOLDERS' EQUITY                                                                         |   |   | 6,009,785 |   |   |   | 5,950,548 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                         |   | $ | 8,452,308 |   |   | $ | 8,594,670 |   |
|                                                                                               |   |   |   |   |   |   |   |   |

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

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| PRECISION AEROSPACE COMPONENTS, INC. AND SUBSIDIARIES |   |
|-------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS       |   |
| (UNAUDITED)                                           |   |
|                                                  |   |   |   |   |   |   |
|                                                  |   | FOR THE THREE MONTHS ENDED MARCH 31, |   |
|                                                  |   | 2011 |   |   | 2010 |   |
|                                                  |   |   |   |   |   |   |
| TOTAL NET REVENUE                                     |   | $ | 2,025,953 |   |   | $ | 2,311,010 |   |
|                                                  |   |   |   |   |   |   |   |   |
| TOTAL COST OF GOODS SOLD                              |   |   | 1,366,660 |   |   |   | 1,546,679 |   |
|                                                  |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                          |   |   | 659,293 |   |   |   | 764,331 |   |
|                                                  |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                    |   |   |   |   |   |   |   |   |
| General and administrative expenses                   |   |   | 466,660 |   |   |   | 464,126 |   |
| Professional and consulting fees                      |   |   | 74,083 |   |   |   | 75,012 |   |
| Depreciation                                          |   |   | 15,847 |   |   |   | 20,826 |   |
| Total Operating Expenses                              |   |   | 556,590 |   |   |   | 559,964 |   |
|                                                  |   |   |   |   |   |   |   |   |
| INCOME  BEFORE OTHER INCOME (EXPENSE)       |   |   | 102,703 |   |   |   | 204,367 |   |
|                                                  |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                |   |   |   |   |   |   |   |   |
| Interest expense                                      |   |   | (23,104 | ) |   |   | (31,489 | ) |
|                                                  |   |   | (23,104 | ) |   |   | (31,489 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| INCOME  BEFORE PROVISION FOR INCOME TAXES   |   |   | 79,599 |   |   |   | 172,878 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Provision for income taxes                            |   |   | 20,362 |   |   |   | 48,572 |   |
|                                                  |   |   |   |   |   |   |   |   |
| NET INCOME APPLICABLE TO COMMON SHARES                |   | $ | 59,237 |   |   | $ | 124,306 |   |
|                                                  |   |   |   |   |   |   |   |   |
| NET INCOME PER BASIC SHARES                           |   | $ | 0.02 |   |   | $ | 0.07 |   |
|                                                  |   |   |   |   |   |   |   |   |
| NET INCOME PER DILUTED SHARES                         |   | $ | 0.00 |   |   | $ | 0.01 |   |
|                                                  |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF BASIC COMMON               |   |   |   |   |   |   |   |   |
|  SHARES OUTSTANDING                              |   |   | 2,865,079 |   |   |   | 1,809,797 |   |
|                                                  |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF FULLY DILUTED              |   |   |   |   |   |   |   |   |
|  COMMON SHARES OUTSTANDING                       |   |   | 12,907,617 |   |   |   | 12,608,330 |   |
|                                                  |   |   |   |   |   |   |   |   |

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

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|  PRECISION AEROSPACE COMPONENTS, INC. AND SUBSIDIARIES                               |   |
|-------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                           |   |
| (UNAUDITED)                                                                               |   |
|                                                                                      |   |
|                                                                                      |   | FOR THE THREE MONTHS ENDED MARCH 31, |   |
|                                                                                      |   | 2011 |   |   | 2010 |   |
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |   |   |   |   |   |
|    Net income                                                              |   | $ | 59,237 |   |   | $ | 124,306 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net income  to net cash                                |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                               |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                             |   |   | 15,847 |   |   |   | 20,826 |   |
| Inventory writedown                                                                       |   |   | 26,972 |   |   |   | - |   |
| Deferred income taxes                                                                     |   |   | 1,153 |   |   |   | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Changes in assets and liabilities:                                                        |   |   |   |   |   |   |   |   |
| Decrease (increase) in assets                                                             |   |   |   |   |   |   |   |   |
|    Decrease (increase) in accounts receivable                              |   |   | (59,025 | ) |   |   | (160,305 | ) |
|    Decrease (increase) in inventory                                        |   |   | (22,691 | ) |   |   | 328,607 |   |
| Decrease (increase) in prepaid expenses                                                   |   |   | (26,032 | ) |   |   | (26,741 | ) |
| Decrease (increase) in prepaid income taxes                                               |   |   | 1,209 |   |   |   | 48,572 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Increase (decrease) in liabilities                                                        |   |   |   |   |   |   |   |   |
|    Increase (decrease)  in accounts payable and accrued expenses |   |   | (127,752 | ) |   |   | (79,152 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                       |   |   | (131,082 | ) |   |   | 256,113 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                       |   |   | - |   |   |   | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |   |   |   |   |   |   |   |
| Proceeds from (payment on) line of credit                                                 |   |   | (75,000 | ) |   |   | (165,000 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                       |   |   | (75,000 | ) |   |   | (165,000 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                          |   |   | (206,082 | ) |   |   | 91,113 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                           |   |   | 328,717 |   |   |   | 198,971 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                 |   | $ | 122,635 |   |   | $ | 290,084 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                         |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                          |   |   |   |   |   |   |   |   |
| Interest paid                                                                             |   | $ | 23,405 |   |   | $ | 31,489 |   |
| Income taxes paid                                                                         |   | $ | 18,000 |   |   | $ | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NONCASH ACTIVITY:                                                |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Conversion of preferred stock into common stock                                           |   | $ | - |   |   | $ | 25 |   |
|                                                                                      |   |   |   |   |   |   |   |   |

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

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|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2011(UNAUDITED) |
|----------------------------------------------------------------------------------------------------------------|

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|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2011(UNAUDITED) |
|----------------------------------------------------------------------------------------------------------------|

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|        |   |                                                                                                                                                                 |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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:  May 12, 2011 | PRECISION AEROSPACE        |                                        |
|                      | COMPONENTS, INC.           |                                        |
|                      |  /s/ Andrew S. Prince |                                        |
|                      |                       |                                        |
|                      |                       |  Andrew S. Prince                      |   |
|                      |                       |  President and Chief Executive Officer |   |

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

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