----

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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                                                                        |   |   3  |
|                        |                                                                                        |   |      |
|                        | Condensed Consolidated Balance Sheets — (Unaudited)                                   |   | 4         |
|                        |                                                                                        |   |      |
|                        | Condensed Consolidated Statements of Operations— (Unaudited)                     |   | 5         |
|                        |                                                                                        |   |      |
|                        | Condensed Consolidated Statements of Cash Flows — (Unaudited)                         |   | 6         |
|                        |                                                                                        |   |      |
|                        | Notes to Condensed Consolidated Financial Statements                                        |   | 7         |
|                        |                                                                                        |   |      |
| Item 2.                | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 11        |
|                        |                                                                                        |   |      |
| Item 3.                | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 13        |
|                        |                                                                                        |   |      |
| Item 4 and 4T               | Controls and Procedures                                                                     |   |   13 |
|                        |                                                                                        |   |      |
| PART IIOTHER INFORMATION    |
| Item 6.                | Exhibits                                                                                    |   | 15        |
|                        |                                                                                        |   |      |
| Signatures                  |                                                                                        |   | 15        |

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|   | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED):                     |   Pages |
|--------|------------------------------------------------------------------------------|--------------|
|   |                                                                         |         |
|   | Condensed Consolidated Balance Sheets as of June 30, 2010 (Unaudited) and    |         |
|   |  December 31, 2009                                                      | 4            |
|   |                                                                         |         |
|   | Condensed Consolidated Statements of Operations for the Six and Three Months |         |
|   |  Ended June 30, 2010 and 2009 (Unaudited)                               | 5            |
|   |                                                                         |         |
|   | Condensed Consolidated Statements of Cash Flows for the Six Months           |         |
|   |  Ended June 30, 2010 and 2009 (Unaudited)                               | 6            |
|   |                                                                         |         |
|   | Notes to Condensed Consolidated Financial Statements                         | 7-10         |

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| PRECISION AEROSPACE COMPONENTS, INC.                                                           |
|------------------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                          |
|                                                                                           |   |   |   |
| ASSETS                                                                                         |   |   |   |
|                                                                                           |   | June 30, |   |   | December 31, |   |
|                                                                                           |   | 2010 |   |   | 2009 |   |
|                                                                                           |   | (Unaudited) |   |   |   |   |
| CURRENT ASSETS                                                                                 |   |   |   |   |   |   |
| Cash and cash equivalents                                                                      |   | $ | 309,662 |   |   | $ | 198,971 |   |
| Accounts receivable, net                                                                       |   |   | 893,387 |   |   |   | 778,450 |   |
| Inventory, net                                                                                 |   |   | 4,845,662 |   |   |   | 5,087,712 |   |
| Prepaid expenses                                                                               |   |   | 23,769 |   |   |   | 5,941 |   |
| Prepaid income taxes                                                                           |   |   | 40,672 |   |   |   | 69,374 |   |
|                                                                                           |   |   | 6,113,152 |   |   |   | 6,140,448 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT - Net                                                                   |   |   | 94,785 |   |   |   | 120,458 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                   |   |   |   |   |   |   |   |   |
| Deposits                                                                                       |   |   | 24,700 |   |   |   | 24,700 |   |
| Goodwill                                                                                       |   |   | 2,221,744 |   |   |   | 2,221,744 |   |
|                                                                                           |   |   | 2,246,444 |   |   |   | 2,246,444 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                   |   | $ | 8,454,381 |   |   | $ | 8,507,350 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                           |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                            |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                          |   | $ | 242,811 |   |   | $ | 210,542 |   |
| Loan payable-current portion                                                                   |   |   | 2,367,000 |   |   |   | 2,682,000 |   |
|                                                                                           |   |   | 2,609,811 |   |   |   | 2,892,542 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| LONG -TERM LIABILITIES                                                                         |   |   | - |   |   |   | - |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                              |   |   | 2,609,811 |   |   |   | 2,892,542 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                                           |   |   |   |   |   |   |   |   |
| Preferred Stock A $.001 par value; 7,100,000 shares authorized ;  6,462,378 shares issued |   |   |   |   |   |   |   |   |
| and outstanding June 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 June 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                                                                            |   |   | (5,352,388 | ) |   |   | (5,496,466 | ) |
| TOTAL STOCKHOLDERS' EQUITY                                                                     |   |   | 5,844,570 |   |   |   | 5,614,808 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                     |   | $ | 8,454,381 |   |   | $ | 8,507,350 |   |
|                                                                                           |   |   |   |   |   |   |   |   |

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| PRECISION AEROSPACE COMPONENTS, INC.                        |   |
|-------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | FOR THE SIX MONTHS ENDED JUNE 30, |   |   | FOR THE THREE MONTHS ENDED JUNE 30, |   |
|                                                        |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL REVENUE                                               |   | $ | 4,531,660 |   |   | $ | 5,464,438 |   |   | $ | 2,220,650 |   |   | $ | 2,802,014 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL COST OF GOODS SOLD                                    |   |   | 3,064,220 |   |   |   | 3,878,334 |   |   |   | 1,517,541 |   |   |   | 2,023,862 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                |   |   | 1,467,440 |   |   |   | 1,586,104 |   |   |   | 703,109 |   |   |   | 778,152 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                         |   |   | 1,038,727 |   |   |   | 956,208 |   |   |   | 574,601 |   |   |   | 492,379 |   |
| Professional Fees                                           |   |   | 161,182 |   |   |   | 151,033 |   |   |   | 86,170 |   |   |   | 65,085 |   |
| Depreciation                                                |   |   | 41,923 |   |   |   | 40,310 |   |   |   | 21,097 |   |   |   | 20,242 |   |
| Total Operating Expenses                                    |   |   | 1,241,832 |   |   |   | 1,147,551 |   |   |   | 681,868 |   |   |   | 577,706 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE OTHER INCOME (EXPENSE)                 |   |   | 225,608 |   |   |   | 438,553 |   |   |   | 21,241 |   |   |   | 200,446 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                            |   |   | (51,075 | ) |   |   | (61,820 | ) |   |   | (19,586 | ) |   |   | (38,939 | ) |
|                                                        |   |   | (51,075 | ) |   |   | (61,820 | ) |   |   | (19,586 | ) |   |   | (38,939 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES             |   |   | 174,533 |   |   |   | 376,733 |   |   |   | 1,655 |   |   |   | 161,507 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision (benefit) for income taxes                        |   |   | 30,455 |   |   |   | 113,781 |   |   |   | (18,117 | ) |   |   | 44,375 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) APPLICABLE TO COMMON SHARES               |   | $ | 144,078 |   |   | $ | 262,952 |   |   | $ | 19,772 |   |   | $ | 117,132 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER BASIC SHARES                          |   | $ | 0.06 |   |   | $ | 3.95 |   |   | $ | 0.01 |   |   | $ | 1.76 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER DILUTED SHARES                        |   | $ | 0.01 |   |   | $ | 0.02 |   |   | $ | 0.00 |   |   | $ | 0.01 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF BASIC COMMON                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES OUTSTANDING                                    |   |   | 2,284,878 |   |   |   | 66,649 |   |   |   | 2,759,421 |   |   |   | 66,649 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF FULLY DILUTED                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COMMON SHARES OUTSTANDING                             |   |   | 13,070,657 |   |   |   | 16,278,382 |   |   |   | 13,527,646 |   |   |   | 16,678,330 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| PRECISION AEROSPACE COMPONENTS, INC.                                                      |   |
|-------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                               |   |
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   | FOR THE SIX MONTHS ENDED JUNE 30, |   |
|                                                                                      |   | 2010 |   |   | 2009 |   |
|                                                                                      |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |   |   |   |   |   |
|    Net (loss) income                                                       |   | $ | 144,078 |   |   | $ | 262,952 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net income (loss) to net cash                                    |   |   |   |   |   |   |   |   |
| provided by (used in) operating activities:                                               |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                             |   |   | 41,923 |   |   |   | 40,310 |   |
| Inventory writedown                                                                       |   |   | 53,334 |   |   |   | 108,996 |   |
| Stock Based Compensation                                                                  |   |   | 85,684 |   |   |   | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Changes in assets and liabilities:                                                        |   |   |   |   |   |   |   |   |
| Decrease (increase) in assets                                                             |   |   |   |   |   |   |   |   |
|    Decrease (increase) in accounts receivable                              |   |   | (114,937 | ) |   |   | (23,824 | ) |
|    Decrease (increase) in inventory                                        |   |   | 188,716 |   |   |   | (557,371 | ) |
|    Decrease (increase) in prepaid expenses                                 |   |   | (17,828 | ) |   |   | (17,827 | ) |
|    Decrease (increase) in prepaid income taxes                             |   |   | 28,702 |   |   |   | 92,614 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Increase (decrease) in liabilities                                                        |   |   |   |   |   |   |   |   |
|    Increase (decrease)  in accounts payable and accrued expenses |   |   | 32,269 |   |   |   | 79,009 |   |
|    Increase (decrease) in income taxes payable                             |   |   | - |   |   |   | 15,757 |   |
| Total adjustments                                                                         |   |   | 297,863 |   |   |   | (262,336 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                       |   |   | 441,941 |   |   |   | 616 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |   |   |   |   |   |   |   |
|    (Purchase) of property and equipment                                    |   |   | (16,250 | ) |   |   | (6,880 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash (used in) investing activities                                                   |   |   | (16,250 | ) |   |   | (6,880 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |   |   |   |   |   |   |   |
|    Proceeds from  loan payable IDB Bank                          |   |   | - |   |   |   | 100,000 |   |
|   (Payment on) loan payable IDB Bank                                            |   |   | (315,000 | ) |   |   | (25,000 | ) |
|    Proceeds from (payment on) subordinated note                            |   |   | - |   |   |   | (75,000 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                       |   |   | (315,000 | ) |   |   | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                          |   |   | 110,691 |   |   |   | (6,264 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                           |   |   | 198,971 |   |   |   | 176,483 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                 |   | $ | 309,662 |   |   | $ | 170,219 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                         |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                          |   |   |   |   |   |   |   |   |
|     Interest paid                                                     |   | $ | 51,075 |   |   | $ | 61,820 |   |
|     Income taxes paid                                                 |   | $ | 1,753 |   |   | $ | 20,397 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   |

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|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2010(UNAUDITED) |
|---------------------------------------------------------------------------------------------------------------|

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

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|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2010(UNAUDITED) |
|---------------------------------------------------------------------------------------------------------------|

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|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2010(UNAUDITED) |
|---------------------------------------------------------------------------------------------------------------|

|                                                 |   | June 30, 2010(Unaudited) |     |   | December 31, 2009 |   |
|------------------------------------------------------|--------|--------------------------|----------|--------|-------------------|--------|
|                                                 |   |                     |     |   |              |   |
|  Furniture and fixtures                         |   | $                        | 2,392    |   |              | $      | 2,392 |   |
|  Equipment and other                            |   |                     | 391,840  |   |              |   | 375,590 |   |
|  Leasehold improvements                         |   |                     | 6,487    |   |              |   | 6,487 |   |
|                                                 |   |                     | 400,719  |   |              |   | 384,469 |   |
|                                                 |   |                     |     |   |              |   |   |   |
|  Less accumulated depreciation and anirtuzatuib |   |                     | (305,934 | )      |              |   | (264,011 | ) |
|                                                 |   |                     |     |   |              |   |   |   |
|  Property and equipment, net                    |   | $                        | 94,785   |   |              | $      | 120,458 |   |

|             |   | June 30, 2010(Unaudited) |    |   | December 31, 2009 |    |
|------------------|--------|--------------------------|---------|--------|-------------------|---------|
|             |   |                     |    |   |              |    |
| Accounts payable |   | $                        | 242,811 |   |              | $       | 184,270 |   |
| Accrued expenses |   |                     | -       |   |              |    | 26,272 |   |
| Total            |   | $                   | 242,811 |   |              | $  | 210,542 |   |

----

|  PRECISION AEROSPACE COMPONENTS, INC.CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2010(UNAUDITED) |
|---------------------------------------------------------------------------------------------------------------|

|                                                               |   | June 30, 2010(Unaudited) |      |   | December 31, 2009 |   |
|--------------------------------------------------------------------|--------|-------------------------------|-----------|--------|-------------------|--------|
|                                                               |   |                          |      |   |              |   |
| Revolving funding facility.  Due August 31, 2010 (See below). |   | $                             | 2,367,000 |   |              | $      | 2,682,000 |   |
|                                                               |   |                          |      |   |              |   |   |   |
|                                                               |   |                          |      |   |              |   |   |   |
|                                                               |   | $                             | 2,367,000 |   |              | $      | 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:  August 9, 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 |

----