----

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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 |   | 10        |
|                        |                                                                                        |   |      |
| Item 3.                | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 12        |
|                        |                                                                                        |   |      |
| Item 4 and 4T               | Controls and Procedures                                                                     |   |   12 |
|                        |                                                                                        |   |      |
| PART IIOTHER INFORMATION    |
| Item 6.                | Exhibits                                                                                    |   | 14        |
|                        |                                                                                        |   |      |
| Signatures                  |                                                                                        |   | 14        |

----

|   | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED):                      | Pages  |
|--------|-------------------------------------------------------------------------------|--------|
|   |                                                                          |   |
|   |                                                                          |   |
|   | Condensed Consolidated Balance Sheets as of September 30, 2010(Unaudited) and |   |
|   |   December 31, 2009                                                      | 2      |
|   |                                                                          |   |
|   | Condensed Consolidated Statements of Operations for theNine and Three Months  |   |
|   |   Ended September 30, 2010 and 2009 (Unaudited)                          | 3      |
|   |                                                                          |   |
|   | Condensed Consolidated Statements of Cash Flows for theNine Months            |   |
|   |   Ended September 30, 2010 and 2009(Unaudited)                           | 4      |
|   |                                                                          |   |
|   | Notes to Condensed Consolidated Financial Statements                          | 5-9    |
|   |                                                                          |   |

----

| PRECISION AEROSPACE COMPONENTS, INC.                                                             |   |
|--------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                            |   |
|                                                                                             |   |   |   |
| ASSETS                                                                                           |   |   |   |
|                                                                                             |   | September 30, |   |   | December 31, |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                                             |   | (Unaudited) |   |   |   |   |
| CURRENT ASSETS                                                                                   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                        |   | $ | 181,952 |   |   | $ | 198,971 |   |
| Accounts receivable, net                                                                         |   |   | 1,004,155 |   |   |   | 778,450 |   |
| Inventory, net                                                                                   |   |   | 5,100,044 |   |   |   | 5,087,712 |   |
| Prepaid expenses                                                                                 |   |   | 14,856 |   |   |   | 5,941 |   |
| Prepaid income taxes                                                                             |   |   | - |   |   |   | 69,374 |   |
|                                                                                             |   |   | 6,301,007 |   |   |   | 6,140,448 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT - Net                                                                     |   |   | 75,187 |   |   |   | 120,458 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                     |   |   |   |   |   |   |   |   |
| Deposits                                                                                         |   |   | 24,700 |   |   |   | 24,700 |   |
| Goodwill                                                                                         |   |   | 2,221,744 |   |   |   | 2,221,744 |   |
|                                                                                             |   |   | 2,246,444 |   |   |   | 2,246,444 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                     |   | $ | 8,622,638 |   |   | $ | 8,507,350 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                             |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                              |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                            |   | $ | 376,647 |   |   | $ | 210,542 |   |
| Income taxes payable                                                                             |   |   | 28,239 |   |   |   | - |   |
| Loan payable-current portion                                                                     |   |   | 2,292,000 |   |   |   | 2,682,000 |   |
|                                                                                             |   |   | 2,696,886 |   |   |   | 2,892,542 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| LONG -TERM LIABILITIES                                                                           |   |   | - |   |   |   | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                |   |   | 2,696,886 |   |   |   | 2,892,542 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                                             |   |   |   |   |   |   |   |   |
| Preferred Stock A $.001 par value; 7,100,000 shares authorized ;  6,462,378 shares issued   |   |   |   |   |   |   |   |   |
| and outstanding September 30, 2010 and 6,123,301 shares issued and outstanding December 31, 2009 |   |   | 6,462 |   |   |   | 6,123 |   |
| Common stock, $.001 par value; 100,000,000 shares authorized;  2,825,079 shares issued      |   |   |   |   |   |   |   |   |
| and outstanding September 30, 2010 and 1,753,483 shares issued and outstanding December 31, 2009 |   |   | 2,825 |   |   |   | 1,753 |   |
| Additional paid-in capital                                                                       |   |   | 11,187,671 |   |   |   | 11,103,398 |   |
| Accumulated deficit                                                                              |   |   | (5,271,206 | ) |   |   | (5,496,466 | ) |
| TOTAL STOCKHOLDERS' EQUITY                                                                       |   |   | 5,925,752 |   |   |   | 5,614,808 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                       |   | $ | 8,622,638 |   |   | $ | 8,507,350 |   |
|                                                                                             |   |   |   |   |   |   |   |   |

----

| PRECISION AEROSPACE COMPONENTS, INC.                        |   |
|-------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | FOR THE NINE MONTHS ENDED SEPTEMBER 30, |   |   | FOR THE THREE MONTHS ENDED SEPTEMBER 30, |   |
|                                                        |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL REVENUE                                               |   | $ | 7,217,251 |   |   | $ | 7,826,999 |   |   | $ | 2,685,591 |   |   | $ | 2,362,561 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL COST OF GOODS SOLD                                    |   |   | 4,927,223 |   |   |   | 5,464,927 |   |   |   | 1,863,003 |   |   |   | 1,586,593 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                |   |   | 2,290,028 |   |   |   | 2,362,072 |   |   |   | 822,588 |   |   |   | 775,968 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                         |   |   | 1,553,203 |   |   |   | 1,406,809 |   |   |   | 514,476 |   |   |   | 450,601 |   |
| Professional Fees                                           |   |   | 228,542 |   |   |   | 222,659 |   |   |   | 67,360 |   |   |   | 71,626 |   |
| Depreciation                                                |   |   | 63,561 |   |   |   | 60,642 |   |   |   | 21,638 |   |   |   | 20,332 |   |
| Total Operating Expenses                                    |   |   | 1,845,306 |   |   |   | 1,690,110 |   |   |   | 603,474 |   |   |   | 542,559 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE OTHER INCOME (EXPENSE)                 |   |   | 444,722 |   |   |   | 671,962 |   |   |   | 219,114 |   |   |   | 233,409 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                            |   |   | (80,080 | ) |   |   | (104,832 | ) |   |   | (29,005 | ) |   |   | (43,012 | ) |
|                                                        |   |   | (80,080 | ) |   |   | (104,832 | ) |   |   | (29,005 | ) |   |   | (43,012 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES             |   |   | 364,642 |   |   |   | 567,130 |   |   |   | 190,109 |   |   |   | 190,397 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision (benefit) for income taxes                        |   |   | 139,382 |   |   |   | 205,449 |   |   |   | 108,927 |   |   |   | 91,668 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) APPLICABLE TO COMMON SHARES               |   | $ | 225,260 |   |   | $ | 361,681 |   |   | $ | 81,182 |   |   | $ | 98,729 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER BASIC SHARES                          |   | $ | 0.09 |   |   | $ | 5.43 |   |   | $ | 0.03 |   |   | $ | 1.48 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER DILUTED SHARES                        |   | $ | 0.02 |   |   | $ | 0.02 |   |   | $ | 0.01 |   |   | $ | 0.01 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF BASIC COMMON                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES OUTSTANDING                                    |   |   | 2,467,593 |   |   |   | 66,649 |   |   |   | 2,825,079 |   |   |   | 66,649 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF FULLY DILUTED                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COMMON SHARES OUTSTANDING                             |   |   | 13,002,225 |   |   |   | 16,543,549 |   |   |   | 12,867,617 |   |   |   | 17,545,113 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                      |   | FOR THE NINE MONTHS ENDED SEPTEMBER 30, |     |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------|
|                                                                                      |   | 2010                                              |     |   | 2009 |   |
|                                                                                      |   |                                              |     |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |                                              |     |   |   |   |
|    Net (loss) income                                                       |   | $                                                 | 225,260  |   |   | $ | 361,681 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| Adjustments to reconcile net income (loss) to net cash                                    |   |                                              |     |   |   |   |   |   |
| provided by (used in) operating activities:                                               |   |                                              |     |   |   |   |   |   |
| Depreciation and amortization                                                             |   |                                              | 63,561   |   |   |   | 60,642 |   |
| Inventory writedown                                                                       |   |                                              | 97,972   |   |   |   | 160,628 |   |
| Stock Based Compensation                                                                  |   |                                              | 85,684   |   |   |   | - |   |
| Bad debt expense                                                                          |   |                                              | 34,486   |   |   |   | - |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| Changes in assets and liabilities:                                                        |   |                                              |     |   |   |   |   |   |
| Decrease (increase) in assets                                                             |   |                                              |     |   |   |   |   |   |
|    Decrease (increase) in accounts receivable                              |   |                                              | (260,191 | ) |   |   | (142,099 | ) |
|    Decrease (increase) in inventory                                        |   |                                              | (110,304 | ) |   |   | (735,975 | ) |
|    Decrease (increase) in prepaid expenses                                 |   |                                              | (8,915   | ) |   |   | 24,839 |   |
|    Decrease (increase) in prepaid income taxes                             |   |                                              | 69,374   |   |   |   | 98,616 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| Increase (decrease) in liabilities                                                        |   |                                              |     |   |   |   |   |   |
|    Increase (decrease)  in accounts payable and accrued expenses |   |                                              | 166,105  |   |   |   | 122,921 |   |
|    Increase (decrease) in income taxes payable                             |   |                                              | 28,239   |   |   |   | 74,664 |   |
| Total adjustments                                                                         |   |                                              | 166,011  |   |   |   | (335,764 | ) |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                       |   |                                              | 391,271  |   |   |   | 25,917 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |                                              |     |   |   |   |   |   |
|    (Purchase) of property and equipment                                    |   |                                              | (18,290  | ) |   |   | (16,766 | ) |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| Net cash (used in) investing activities                                                   |   |                                              | (18,290  | ) |   |   | (16,766 | ) |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |                                              |     |   |   |   |   |   |
|    Proceeds from  loan payable IDB Bank                          |   |                                              | -        |   |   |   | 100,000 |   |
|   (Payment on) loan payable IDB Bank                                            |   |                                              | (390,000 | ) |   |   | (25,000 | ) |
|    Proceeds from (payment on) subordinated note                            |   |                                              | -        |   |   |   | (75,000 | ) |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                       |   |                                              | (390,000 | ) |   |   | - |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                          |   |                                              | (17,019  | ) |   |   | 9,151 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                           |   |                                              | 198,971  |   |   |   | 176,483 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                 |   | $                                                 | 181,952  |   |   | $ | 185,634 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                         |   |                                              |     |   |   |   |   |   |
| Cash paid during the period for:                                                          |   |                                              |     |   |   |   |   |   |
|     Interest paid                                                     |   | $                                                 | 80,080   |   |   | $ | 93,195 |   |
|     Income taxes paid                                                 |   | $                                                 | 36,427   |   |   | $ | 27,329 |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |
|                                                                                      |   |                                              |     |   |   |   |   |   |

----

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

----

----

|                                         |   |               |     |   |              |   |
|----------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                         |   | September 30, 2010 |     |   | December 31, 2009 |   |
|                                         |   | (Unaudited)        |     |   |              |   |
|                                         |   |               |     |   |              |   |
| Furniture and fixtures                       |   | $                  | 2,392    |   |              | $      | 2,392 |   |
| Equipment and other                          |   |               | 393,880  |   |              |   | 375,590 |   |
| Leasehold improvements                       |   |               | 6,487    |   |              |   | 6,487 |   |
|                                         |   |               | 402,759  |   |              |   | 384,469 |   |
|                                         |   |               |     |   |              |   |   |   |
| Less accumated depreciation and amortization |   |               | (327,572 | )      |              |   | (264,011 | ) |
|                                         |   |               |     |   |              |   |   |   |
| Property and equipment, net                  |   | $                  | 75,187   |   |              | $      | 120,458 |   |

|             |   | September 30, 2010 |    |   | December 31, 2009 |   |
|------------------|--------|--------------------|---------|--------|-------------------|--------|
|             |   | (Unaudited)        |    |   |              |   |
|             |   |               |    |   |              |   |
| Accounts payable |   | $                  | 376,647 |   |              | $      | 184,270 |   |
| Accrued expenses |   |               | -       |   |              |   | 26,272 |   |
| Total            |   | $                  | 376,647 |   |              | $      | 210,542 |   |

----

| Short-term debt as of September 30, 2010 and December 31, 2009 consists of the following: |   |
|-------------------------------------------------------------------------------------------|--------|
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   | September 30, 2010 |   |   | December 31, 2009 |   |
|                                                                                      |   | (Unaudited) |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |
| Revolving funding facility due July 31, 2011 (see below)                                  |   | $ | 2,292,000 |   |   | $ | 2,682,000 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                      |   | $ | 2,292,000 |   |   | $ | 2,682,000 |   |

----

----

----

----

----

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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:  November 8, 2010 | 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 |

----