----

----

|                                                                    |   |                                       |
|-------------------------------------------------------------------------|--------|--------------------------------------------|
| 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                                                                             |   | ii             |
|                                  |   | Condensed      Consolidated Balance Sheets — (Unaudited)                                        |   | 2              |
|                                  |   | Condensed      Consolidated Statements of Income (Loss)—(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 |   | 10             |
| Item 3.                          |   | Quantitative      and Qualitative Disclosures about Market Risk                                       |   | 15             |
| Item      4 and 4T                    |   | Controls      and Procedures                                                                          |   |        15 |
| PART      IIOTHER      INFORMATION    |
| Item 6.                          |   | Exhibits                                                                                              |   | 16             |
| Signatures                            |   |                                                                                                  |   | 16             |

----

|   | CONDENSED      CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED):               | Pages   |
|--------|-------------------------------------------------------------------------------------|---------|
|   |                                                                                |    |
|   |                                                                                |    |
|   | Condensed      Consolidated Balance Sheets as of March31, 2009 (Unaudited)      and |    |
|   |  December      31, 2008 (Audited)                                              | 2       |
|   |                                                                                |    |
|   | Condensed      Consolidated Statements of Operations for the Three Months           |    |
|   | Ended      March31, 2009 and 2008(Unaudited)                                        | 3       |
|   |                                                                                |    |
|   | Condensed      Consolidated Statements of Cash Flows for the Three Months           |    |
|   | Ended      March 31, 2009 and 2008(Unaudited)                                       |  4 |
|   |                                                                                |    |
|   |  Notes      to Condensed Consolidated Financial Statements                     | 5-9     |

----

|  PRECISION AEROSPACE COMPONENTS,      INC.CONDENSED CONSOLIDATED BALANCESHEETS |
|-------------------------------------------------------------------------------------|

|                                                ASSETS                                                                                                                      |   |           |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                    |   | March      31, |       |   | December      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009           |       |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   | (Unaudited)    |       |   | (Audited) |   |
| CURRENT      ASSETS                                                                                                                                                                                                                                                                                                                                                                     |   |           |       |   |   |   |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                          |   | $              | 143,319    |   |   | $ | 176,483 |   |
| Accounts      receivable, net                                                                                                                                                                                                                                                                                                                                                           |   |           | 1,067,084  |   |   |   | 874,124 |   |
| Inventory,      net                                                                                                                                                                                                                                                                                                                                                                     |   |           | 4,916,875  |   |   |   | 4,592,247 |   |
| Prepaid      expenses                                                                                                                                                                                                                                                                                                                                                                   |   |           | 66,433     |   |   |   | 39,693 |   |
| Prepaid      income taxes                                                                                                                                                                                                                                                                                                                                                               |   |           | 39,556     |   |   |   | 98,616 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 6,233,267  |   |   |   | 5,781,163 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT - Net                                                                                                                                                                                                                                                                                                                                                       |   |           | 164,567    |   |   |   | 184,634 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| OTHER      ASSETS                                                                                                                                                                                                                                                                                                                                                                       |   |           |       |   |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                |   |           | 24,700     |   |   |   | 24,700 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                |   |           | 2,221,744  |   |   |   | 2,221,744 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 2,246,444  |   |   |   | 2,246,444 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                                                                                                                                                                                                                       |   | $              | 8,644,278  |   |   | $ | 8,212,241 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
|                                                         LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY      (DEFICIT) |   |           |       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                                                                                                                                                                                                                                                                                                |   |           |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| Accounts      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                              |   | $              | 513,747    |   |   | $ | 252,530 |   |
| Subordinated      note payable-current portion                                                                                                                                                                                                                                                                                                                                          |   |           | -          |   |   |   | 75,000 |   |
| Loan      payable-current portion                                                                                                                                                                                                                                                                                                                                                       |   |           | 2,822,506  |   |   |   | 2,722,506 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 3,336,253  |   |   |   | 3,050,036 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| LONG      -TERM LIABILITIES                                                                                                                                                                                                                                                                                                                                                             |   |           | -          |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                                                                                                                                                                                                                                                                                                                  |   |           | 3,336,253  |   |   |   | 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 |   |
| Accumulated      deficit                                                                                                                                                                                                                                                                                                                                                                |   |           | (5,803,249 | )      |   |   | (5,949,069 | ) |
| TOTAL      STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                                                                                                                                                                               |   |           | (2,877,422 | )      |   |   | (3,023,242 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |
| TOTAL      LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY      (DEFICIT)                                                                                                                                                                                                                                                                                                        |   | $              | 8,644,278  |   |   | $ | 8,212,241 |   |
|                                                                                                                                                                                                                                                                                                                                                                                    |   |           |       |   |   |   |   |   |

----

| PRECISION      AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFOR      THE THREE MONTHS ENDED MARCH 31,2009 |
|---------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                      |   |   |           |   |     |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|----------|--------|
|                                                                                                                      |   |   |           |   | Restated |   |
|                                                                                                                      |   | 2009   |           |   | 2008     |   |
|                                                                                                                      |   |   |           |   |     |   |
| REVENUE      - SALES                                                                                                      |   | $      | 2,662,424      |   |     | $      | 3,105,468 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| TOTAL      REVENUE                                                                                                        |   |   | 2,662,424      |   |     |   | 3,105,468 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| TOTAL      COST OF GOODS SOLD                                                                                             |   |   | 1,854,472      |   |     |   | 2,119,254 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| GROSS      PROFIT                                                                                                         |   |   | 807,952        |   |     |   | 986,214 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| OPERATING      EXPENSES                                                                                                   |   |   |           |   |     |   |   |   |
| General      and administrative expenses ($3,065,252 noncash compensation for the three      months ended March 31, 2008) |   |   | 4,63,829  |   |     |   | 3,534,568 |   |
| Professional      Fees                                                                                                    |   |   | 85,948         |   |     |   | 48,947 |   |
| Depreciation                                                                                                              |   |   | 20,068         |   |     |   | 19,861 |   |
| Total      Operating Expenses                                                                                             |   |   | 569,845        |   |     |   | 3,603,376 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| INCOME (LOSS) BEFORE OTHER INCOME      (EXPENSE)                                                                     |   |   | 238,107        |   |     |   | (2,617,162 | ) |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| OTHER      INCOME (EXPENSE)                                                                                               |   |   |           |   |     |   |   |   |
| Interest      expense                                                                                                     |   |   | (22,881        | )      |     |   | (95,562 | ) |
|                                                                                                                      |   |   | (22,881        | )      |     |   | (95,562 | ) |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| INCOME (LOSS) BEFORE PROVISION FOR INCOME      TAXES                                                                 |   |   | 215,226        |   |     |   | (2,712,724 | ) |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| Provision      for income taxes                                                                                           |   |   | 69,406         |   |     |   | 154,682 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| NET      INCOME (LOSS) APPLICABLE TO COMMON SHARES                                                                        |   | $      | 145,820        |   |     | $      | (2,867,406 | ) |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| NET      INCOME (LOSS) PER BASIC SHARES                                                                                   |   | $      | 0.00           |   |     | $      | (0.09 | ) |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| NET      INCOME (LOSS) PER DILUTED SHARES                                                                                 |   | $      | 0.00           |   |     | $      | (0.00 | ) |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF BASIC COMMON                                                                              |   |   |           |   |     |   |   |   |
|  SHARES      OUTSTANDING                                                                                             |   |   | 33,324,691     |   |     |   | 33,324,691 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF FULLY DILUTED                                                                             |   |   |           |   |     |   |   |   |
|  COMMON      SHARES OUTSTANDING                                                                                      |   |   | 8,774,196,464  |   |     |   | 9,227,401,341 |   |
|                                                                                                                      |   |   |           |   |     |   |   |   |

----

|  PRECISION AEROSPACE COMPONENTS,      INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS      (UNAUDITED)FOR      THE THREE MONTHS ENDED MARCH 31, 2009 AND2008 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                              |   |   |     |   |     |   |
|---------------------------------------------------------------------------------------------------|--------|--------|----------|--------|----------|--------|
|                                                                                              |   |   |     |   | Restated |   |
|                                                                                              |   | 2009   |     |   | 2008     |   |
|                                                                                              |   |   |     |   |     |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                         |   |   |     |   |     |   |
|    Net      (loss) income                                                          |   | $      | 145,820  |   |     | $      | (2,867,406 | ) |
|                                                                                              |   |   |     |   |     |   |   |   |
| Adjustments      to reconcile net income (loss) to net cash                                       |   |   |     |   |     |   |   |   |
| (used      in) operating activities:                                                              |   |   |     |   |     |   |   |   |
| Depreciation      and amortization                                                                |   |   | 20,068   |   |     |   | 19,861 |   |
| Stock      Based Compensation                                                                     |   |   | -        |   |     |   | 3,065,252 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| Changes      in assets and liabilities:                                                           |   |   |     |   |     |   |   |   |
| Decrease      (increase) in assets                                                                |   |   |     |   |     |   |   |   |
|    Decrease      (increase) in accounts receivable                                 |   |   | (192,960 | )      |     |   | (428,058 | ) |
|    Decrease      (increase) in inventory                                           |   |   | (324,628 | )      |     |   | (418,114 | ) |
|    Decrease      (increase) in prepaid expenses                                    |   |   | (26,740  | )      |     |   | (66,432 | ) |
|    Decrease      (increase) in prepaid income taxes                                |   |   | 59,060   |   |     |   | - |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| Increase      (decrease) in liabilities                                                           |   |   |     |   |     |   |   |   |
|    Increase      (decrease)  in accounts payable and accrued    expenses |   |   | 261,216  |   |     |   | 307,974 |   |
|    Increase      (decrease) in income taxes payable                                |   |   | -        |   |     |   | (397,964 | ) |
| Total      adjustments                                                                            |   |   | (203,984 | )      |     |   | 2,082,519 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| Net      cash provided by (used in) operating activities                                          |   |   | (58,164  | )      |     |   | (784,887 | ) |
|                                                                                              |   |   |     |   |     |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                                         |   |   |     |   |     |   |   |   |
|    (Purchase)      of property and equipment                                       |   |   | -        |   |     |   | - |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| Net      cash (used in) investing activities                                                      |   |   | -        |   |     |   | - |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                                         |   |   |     |   |     |   |   |   |
|    Proceeds      (payment) of convertible note payable                             |   |   | -        |   |     |   | (1,000,000 | ) |
|    Proceeds      (payment) of S/T loan payable Greater Bay                         |   |   | -        |   |     |   | (387,466 | ) |
|    Proceeds      (payment) from loan payable IDB Bank                              |   |   | 100,000  |   |     |   | 2,722,506 |   |
|    Proceeds      (payment) on subordinated note                                    |   |   | (75,000  | )      |     |   | (150,000 | ) |
|                                                                                              |   |   |     |   |     |   |   |   |
| Net      cash provided by financing activities                                                    |   |   | 25,000   |   |     |   | 1,185,040 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| INCREASE      (DECREASE) IN CASH AND CASH EQUIVALENTS                                             |   |   | (33,164  | )      |     |   | 400,153 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| CASH      AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                              |   |   | 176,483  |   |     |   | 154,709 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| CASH      AND CASH EQUIVALENTS - END OF PERIOD                                                    |   | $      | 143,319  |   |     | $      | 554,862 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                            |   |   |     |   |     |
| Cash      paid during the period for:                                                             |   |   |     |   |     |   |   |   |
|     Interest      paid                                                        |   | $      | 22,881   |   |     | $      | 95,562 |   |
|     Income      taxes paid                                                    |   | $      | 10,346   |   |     | $      | 586,408 |   |
|                                                                                              |   |   |     |   |     |   |   |   |
| SUPPLEMENTAL      SCHEDULE OF NONCASH ACTIVITY:                                                   |   |   |     |   |     |   |   |   |
|                                                                                              |   |   |     |   |     |   |   |   |
|   Issuance      of options for stock based compensation                                 |   | $      | -        |   |     | $      | 3,065,252 |   |
|                                                                                              |   |   |     |   |     |   |   |   |

----

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

----

----

|                                              |   |                |     |   |                   |   |
|---------------------------------------------------|--------|---------------------|----------|--------|------------------------|--------|
|                                              |   | March      31, 2009 |     |   | December      31, 2008 |   |
|                                              |   |                |     |   |                   |   |
| Furniture      and fixtures                       |   | $                   | 2,392    |   |                   | $      | 2,392 |   |
| Equipment      and other                          |   |                | 358,300  |   |                   |   | 358,300 |   |
| Leasehold      improvements                       |   |                | 6,488    |   |                   |   | 6,487 |   |
|                                              |   |                | 367,180  |   |                   |   | 367,179 |   |
|                                              |   |                |     |   |                   |   |   |   |
| Less      accumated depreciation and amortization |   |                | (202,613 | )      |                   |   | (182,545 | ) |
|                                              |   |                |     |   |                   |   |   |   |
| Property      and equipment, net                  |   | $                   | 164,567  |   |                   | $      | 184,634 |   |

|                  |   | March      31, 2009 |    |   | December      31, 2008 |   |
|-----------------------|--------|---------------------|---------|--------|------------------------|--------|
|                  |   |                |    |   |                   |   |
| Accounts      payable |   | $                   | 487,475 |   |                   | $      | 237,390 |   |
| Accrued      expenses |   |                | 26,273  |   |                   |   | 15,140 |   |
| Total                 |   | $                   | 513,748 |   |                   | $      | 252,530 |   |

----

| Short-term      debt as of March 31, 2009 and 2008 consists of the    following:                                                                                      |   |   |      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                                                                                                                  |   |   |      |   |   |   |
|                                                                                                                                                                  |   | 2009   |      |   | 2008 |   |
| Revolving      funding facility. Due 2009 (See note 5).                                                                                                               |   | $      | 2,822,506 |   |   | $ | 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 |   |
|                                                                                                                                                                  |   |   |      |   |   |   |   |   |
|                                                                                                                                                                  |   | $      | 2,822,506 |   |   | $ | 2,797,506 |   |

----

|                                                                                     |   | Originally Filed      For the periodended March 31, 2008 |          |    | Restated      For the periodended March 31, 2008 |   |
|------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------------|---------|--------------------------------------------------|--------|
|                                                                                     |   |                                                     |          |    |                                             |   |
|                                                                                     |   | $                                                        | 8,886,887     |    |                                             | $      | 8,700,124 |   |
| Assets                                                                              |   |                                                     |          |    |                                             |   |   |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Liabilities                                                                         |   |                                                     | 3,969,026     |    |                                             |   | 3,937,108 |   |
| Temporary      Equity                                                               |   |                                                     | 1,216,269     |    |                                             |   | 3,916,609 |   |
| Stockholders'      Equity                                                           |   |                                                     | 3,701,592     |    |                                             |   | 846,407 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Total Liabilities      and Stockholders' Equity                                |   | $                                                        | 8,886,887     |    |                                             | $      | 8,700,124 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
|                                                                                     |   | Originally      FiledFor the periodended March 31,2008   |          |    | RestatedFor the Periodended March 31,      2008  |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| REVENUE-SALES                                                                       |   | $                                                        | 3,105,468     |    |                                             | $      | 3,105,468 |   |
| COSTS OF GOODS      SOLD                                                            |   |                                                     | 2,119,254     |    |                                             |   | 2,119,254 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| GROSS      PROFIT                                                                   |   |                                                     | 986,214       |    |                                             |   | 986,214 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| OPERATING      EXPENSE:                                                             |   |                                                     | 903,034       |    |                                             |   | 3,603,376 |   |
| INCOME (LOSS) FROM      OPERATIONS                                                  |   |                                                     | 83,180        |    |                                             |   | (2,617,162 | )  |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| OTHER INCOME      (EXPENSE)                                                         |   |                                                     | (95,562       | )  |                                             |   | (95,562 | )  |
| PROVISION FOR INCOME      TAXES                                                     |   |                                                     | 154,682       |    |                                             |   | 154,682 |   |
| NET INCOME      (LOSS)                                                              |   | $                                                        | (167,064      |    |                                             | $      | (2,867,406 | ) |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Net income (loss)      per share, basic                                             |   | $                                                        | (0.01         | )       |                                             |   | (0.09 | )  |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Net income (loss)      per share, diluted                                           |   | $                                                        | (0.00         | )       |                                             | $      | (0.00 | ) |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Weighted average      number of shares outstanding basic                            |   |                                                     | 33,324,691    |    |                                             |   | 33,324,691 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Weighted average      number of sahres outstanding diluted      |   |                                                     | 9,227,401,341 |    |                                             |   | 9,227,401,341 |   |

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|                                                                                     |   | Originally Filed      For the periodended March 31, 2008 |          |    | Restated      For the periodended March 31, 2008 |   |
|------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------------|---------|--------------------------------------------------|--------|
|                                                                                     |   |                                                     |          |    |                                             |   |
|                                                                                     |   | $                                                        | 8,886,887     |    |                                             | $      | 8,700,124 |   |
| Assets                                                                              |   |                                                     |          |    |                                             |   |   |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Liabilities                                                                         |   |                                                     | 3,969,026     |    |                                             |   | 3,937,108 |   |
| Temporary      Equity                                                               |   |                                                     | 1,216,269     |    |                                             |   | 3,916,609 |   |
| Stockholders'      Equity                                                           |   |                                                     | 3,701,592     |    |                                             |   | 846,407 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Total Liabilities      and Stockholders' Equity                                |   | $                                                        | 8,886,887     |    |                                             | $      | 8,700,124 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
|                                                                                     |   | Originally      FiledFor the periodended March 31,2008   |          |    | RestatedFor the Periodended March 31,      2008  |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| REVENUE-SALES                                                                       |   | $                                                        | 3,105,468     |    |                                             | $      | 3,105,468 |   |
| COSTS OF GOODS      SOLD                                                            |   |                                                     | 2,119,254     |    |                                             |   | 2,119,254 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| GROSS      PROFIT                                                                   |   |                                                     | 986,214       |    |                                             |   | 986,214 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| OPERATING      EXPENSE:                                                             |   |                                                     | 903,034       |    |                                             |   | 3,603,376 |   |
| INCOME (LOSS) FROM      OPERATIONS                                                  |   |                                                     | 83,180        |    |                                             |   | (2,617,162 | )  |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| OTHER INCOME      (EXPENSE)                                                         |   |                                                     | (95,562       | )  |                                             |   | (95,562 | )  |
| PROVISION FOR INCOME      TAXES                                                     |   |                                                     | 154,682       |    |                                             |   | 154,682 |   |
| NET INCOME      (LOSS)                                                              |   | $                                                        | (167,064      |    |                                             | $      | (2,867,406 | ) |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Net income (loss)      per share, basic                                             |   | $                                                        | (0.01         | )       |                                             |   | (0.09 | )  |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Net income (loss)      per share, diluted                                           |   | $                                                        | (0.00         | )       |                                             | $      | (0.00 | ) |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Weighted average      number of shares outstanding basic                            |   |                                                     | 33,324,691    |    |                                             |   | 33,324,691 |   |
|                                                                                     |   |                                                     |          |    |                                             |   |   |   |
| Weighted average      number of sahres outstanding diluted      |   |                                                     | 9,227,401,341 |    |                                             |   | 9,227,401,341 |   |

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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      14, 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 |

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