10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended March 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from Not Applicable to Not Applicable

Commission file number: 000-000147

CRAWFORD UNITED CORPORATION 

(Exact name of registrant as specified in its charter)

Ohio	34-0288470
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10514 Dupont Avenue, Suite 200, Cleveland, Ohio	44108
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number (216) 243-2614

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act: None.

As of May 3, 2021, 2,637,058 shares of Class A Common Stock and 771,848 shares of Class B Common Stock were outstanding.

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PART I

ITEM 1. FINANCIAL STATEMENTS

CRAWFORD UNITED CORPORATION

CONSOLIDATED BALANCE SHEET

	(Unaudited)
	March 31, 2021		December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	4,841,177	$	6,194,276
Accounts receivable less allowance for doubtful accounts		15,550,526		12,021,692
Contract assets		3,901,253		3,735,557
Inventories-less allowance for obsolete inventory		13,119,476		11,030,960
Investments		1,644,975		1,534,400
Prepaid expenses and other current assets		674,789		657,496
Total Current Assets		39,732,196		35,174,381
Property, plant and equipment, net		15,286,257		11,290,783
Operating right of use asset, net		8,565,973		8,856,820
OTHER ASSETS:
Goodwill		13,978,426		11,505,852
Intangibles, net of accumulated amortization		9,555,385		7,558,309
Other non-current assets		102,129		106,638
Total Non-Current Other Assets		23,635,940		19,170,799
Total Assets	$	87,220,366	$	74,492,783

See accompanying notes to consolidated financial statements

2

CRAWFORD UNITED CORPORATION

CONSOLIDATED BALANCE SHEET

	(Unaudited)
	March 31, 2021			December 31, 2020
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Notes payable – current		2,915,213			2,782,479
Bank debt – current		1,333,333			1,333,333
Leases payable – current		1,158,633			1,136,300
Accounts payable		9,913,661			9,230,032
Unearned revenue		677,741			820,002
Contingent liability - current		750,000			-
Accrued expenses		3,382,366			2,242,924
Total Current Liabilities		20,130,947			17,545,070
LONG-TERM LIABILITIES:
Notes payable – long-term		6,489,571			5,455,717
Bank debt – long-term		17,757,675			12,174,428
PPP loans		-			1,453,837
Leases payable – long-term		7,638,786			7,901,357
Deferred income taxes		2,429,828			2,429,828
Contingent liability – long-term		750,000			-
Total Long-Term Liabilities		35,065,860			29,415,167
STOCKHOLDERS' EQUITY
Class A common shares - 10,000,000 shares authorized, 2,678,787 issued at March 31, 2021 and 2,595,087 issued at December 31, 2020		5,285,333			3,896,705
Class B common shares - 2,500,000 shares authorized, 954,283 shares issued at March 31, 2021 and December 31, 2020		1,465,522			1,465,522
Contributed capital		1,741,901			1,741,901
Treasury shares		(1,979,085	)		(1,938,052	)
Class A common shares – 41,729 shares held at March 31, 2021 and 39,467 shares held at December 31, 2020
Class B common shares – 182,435 shares held at March 31, 2021 and December 31, 2020
Retained earnings		25,509,888			22,366,470
Total Stockholders' Equity		32,023,559			27,532,546
Total Liabilities and Stockholders' Equity	$	87,220,366		$	74,492,783

See accompanying notes to consolidated financial statements

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CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

	Three Months Ended March 31,
	2021			2020
Total Sales	$	23,994,004		$	25,281,574
Cost of Sales		17,991,083			19,073,431
Gross Profit		6,002,921			6,208,143
Operating Expenses:
Selling, General and administrative expenses		3,677,461			3,069,994
Operating Income		2,325,460			3,138,149
Other (Income) and Expenses:
Interest charges		218,618			297,421
Realized (gain) on investments		(152,761	)		-
Unrealized (gain) on investments		(233,644	)		-
PPP loan forgiveness		(1,453,837	)		-
Other (income) expense, net		278,125			71,361
Total Other (Income) and Expenses		(1,343,499	)		368,782
Income before Provision for Income Taxes		3,668,959			2,769,367
Provision for Income Taxes		525,542			693,797
Net Income	$	3,143,417		$	2,075,570
Net Income Per Common Share - Basic	$	0.93		$	0.63
Net Income Per Common Share - Diluted	$	0.93		$	0.63
Weighted Average Shares of Common Stock Outstanding
Basic		3,392,839			3,311,477
Diluted		3,393,720			3,313,157

See accompanying notes to consolidated financial statements

4

CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

	COMMON SHARES - NO PAR VALUE
	CLASS A		CLASS B		CONTRIBUTED CAPITAL		TREASURY SHARES			RETAINED EARNINGS		TOTAL
Balance at December 31, 2019	$	3,599,806	$	1,465,522	$	1,741,901	$	(1,905,780	)	$	16,527,083	$	21,428,532
Share-based compensation expense		70,849		-		-		-			-		70,849
Stock awards		226,050		-		-		-			-		226,050
Repurchase of shares		-		-		-		(32,272	)		-		(32,272	)
Net income		-		-		-		-			5,839,387		5,839,387
Balance at December 31, 2020	$	3,896,705	$	1,465,522	$	1,741,901	$	(1,938,052	)	$	22,366,470	$	27,532,546
Share-based compensation expense		15,667		-		-		-			-		15,667
Stock awards		313,961		-		-		-			-		313,961
Issuance for acquisition		1,059,000		-		-		-			-		1,059,000
Repurchase of shares		-		-		-		(41,033	)		-		(41,033	)
Net income		-		-		-		-			3,143,417		3,143,417
Balance at March 31, 2021	$	5,285,333	$	1,465,522	$	1,741,901	$	(1,979,085	)	$	25,509,887	$	32,023,559

	COMMON SHARES ISSUED				TREASURY SHARES				COMMON SHARES OUTSTANDING
	CLASS A		CLASS B		CLASS A		CLASS B		CLASS A			CLASS B
Balance at December 31, 2019		2,576,837		954,283		37,208		182,435		2,539,629			771,848
Stock awards		17,250		-		-		-		17,250			-
Stock option exercise		1,000		-		-		-		1,000			-
Share repurchase		-		-		2,259		-		(2,259	)		-
Balance at December 31, 2020		2,595,087		954,283		39,467		182,435		2,555,620			771,848
Stock Awards		23,700		-		-		-		23,700			-
Acquisition		60,000		-		-		-		60,000			-
Share repurchase		-		-		2,262		-		(2,262	)		-
Balance at March 31, 2021		2,678,787		954,283		41,729		182,435		2,637,058			771,848

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CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited)

	Three Months Ended March 31,
	2021			2020
Cash Flows from Operating Activities
Net Income	$	3,143,417		$	2,075,570
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		724,641			623,465
Unrealized gain on investments in equity securities		(233,644	)		-
Forgiveness of PPP loan		(1,453,837	)		-
Non-cash share-based compensation expense		329,628			36,466
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable		(967,662	)		2,056,246
Decrease (Increase) in inventories		(319,455	)		(339,843
Decrease (Increase) in contract assets		(165,696	)		(1,775,539	)
Decrease (Increase) in prepaid expenses & other assets		268,510			(58,099	)
Increase (Decrease) in accounts payable		(633,307	)		2,305,197
Increase (Decrease) in accrued expenses		912,024			1,239,831
Increase (Decrease) in unearned revenue		(142,261	)		(546,965	)
Total adjustments		(1,681,059	)		3,540,759
Net Cash Provided by Operating Activities	$	1,462,358		$	5,616,329
Cash Flows from Investing Activities
Cash paid for business acquisitions		(7,081,277	)		(9,400,000	)
Sale of equity securities		123,069			-
Capital expenditures		(827,184	)		(122,720	)
Net Cash (Used in) Investing Activities	$	(7,785,392	)	$	(9,522,720	)
Cash Flows from Financing Activities
Payments on notes		(562,500	)		(684,720	)
Payments on bank debt		(1,352,833	)		(3,093,747	)
Borrowings on bank debt		6,926,301			10,870,893
Share repurchase		(41,033	)		-
Net Cash Provided by Financing Activities	$	4,969,935		$	7,092,426
Net Increase (decrease) in cash and cash equivalents		(1,353,099	)		3,186,035
Cash and cash equivalents at beginning of period		6,194,276			2,232,499
Cash and cash equivalents at end of period	$	4,841,177		$	5,418,534
Supplemental disclosures of cash flow information
Interest Paid	$	153,995		$	255,742
Supplemental disclosures of noncash financing activity
Forgiveness of PPP loan	$	1,453,837			-
Supplemental disclosures of noncash investing activity
Issuance of Class A common shares in business acquisition	$	1,059,000			-

See accompanying notes to consolidated financial statements

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CRAWFORD UNITED CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
MARCH 31, 2021

1.  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the “Company”). Significant intercompany transactions and balances have been eliminated in the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ended December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 

During the three-month period ended March 31, 2021, there have been no changes to our significant accounting policies.

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

New Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for smaller reporting companies beginning after December 15, 2022. 

Fair Value of Financial Instruments
Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

Fair Value Measurements

As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

* Level 1: Quoted market prices in active markets for identical assets or liabilities.

* Level 2: Inputs to the valuation methodology include: * Quoted prices for similar assets or liabilities in active markets;

* Quoted prices for identical assets or similar assets or liabilities in inactive markets;

* Inputs other than quoted prices that are observable for the asset or liability;

* Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

* Level 3: Unobservable inputs that are not corroborated by market data.

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A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.

3.  ACCOUNTS RECEIVABLE 

The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. The reserve for doubtful accounts was $17,009 and $19,973 at March 31, 2021 and December 31, 2020, respectively.

4.  INVENTORY

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value and consists of:

	March 31, 2021		December 31, 2020
Raw materials and component parts	$	3,914,652	$	3,897,133
Work-in-process		3,963,814		3,449,252
Finished products		5,556,355		3,999,920
Total inventory	$	13,434,821	$	11,346,305
Less: inventory reserves		315,345		315,345
Net inventory	$	13,119,476	$	11,030,960

5. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

For the identified reporting units, a Step 1 impairment test was performed as of December 31, 2020 using an income approach based on management’s determination of the prospective financial information, with consideration given to the existing uncertainty in the global economy and aerospace and defense industry, particularly the commercial sector. The results of this test indicated the fair value exceeded carrying value for all reporting units tested. As a result of the impairment testing performed as of December 31, 2020, no indefinite-lived intangible assets or goodwill was determined to be impaired. Management updated their assessment during the first quarter of fiscal 2021 and validated the assumptions used in the analyses performed as of December 31, 2020 and determined that the resulting conclusions remained appropriate as of March 31, 2021.

Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is not amortized but is reviewed on an annual basis for impairment. Amortization of intangibles is being amortized on a straight-line basis over period ranging from one year to 15 years. Intangible assets are as follows:

	March 31, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,477,615		2,271,691
Intangible assets, net	$	9,555,385	$	7,558,309

Amortization of intangibles assets was: $205,924 and $179,340 for the three months ended March 31, 2021 and 2020, respectively.

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6.  PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows:

	March 31, 2021		December 31, 2020
Land	$	228,872	$	228,872
Buildings and improvements		2,434,882		2,061,887
Machinery & equipment		20,251,375		14,329,462
Total property, plant & equipment		22,915,129		16,620,221
Less: accumulated depreciation		7,628,872		5,329,438
Property plant & equipment, net	$	15,286,257	$	11,290,783

Depreciation expense was $508,937 and $434,684 for the three months ended March 31, 2021 and 2020, respectively.

7.  INVESTMENTS IN EQUITY SECURITIES

Investments in equity securities are summarized in the table below:

	March 31, 2021		December 31, 2020
Fair value of equity securities	$	1,644,975	$	1,534,400
Cost basis		826,224		949,293
Unrealized gain (loss) on equity securities	$	818,751	$	585,107

Unrealized gains were $233,644 as of March 31, 2021 compared to $585,107 as of December 31, 2020 and unrealized losses were $0 as of March 31, 2021 compared to $0 as of December 31, 2020. Realized gains were $152,748 as of March 31, 2021 compared to $0 as of December 31, 2020 and Realized losses were $0 as of March 31, 2021 and $0 as of December 31, 2020.

Investments by fair value level in the hierarchy as of March 31, 2021 and December 31, 2020 are as follows:

	Quoted Market Prices in Attractive Markets (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Unobservable Inputs that are not Corroborated by Market Data (Level 3)		Total Carrying Value in the Balance Sheet
Common stock as of March 31, 2021	$	1,644,975	$	-	$	-	$	1,644,975
Common stock as of December 31, 2020	$	1,534,400	$	-	$	-	$	1,534,400

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8.  BANK DEBT 

The Company entered into a Credit Agreement on June 1, 2017 with JPMorgan Chase Bank, N.A. as lender, which was amended in connection with funding the acquisition of CAD Enterprises, Inc. (“CAD”) on July 5, 2018 and further amended on September 30, 2019, December 30, 2019 and March 2, 2021 (as amended, the “Credit Agreement”). The March 2, 2021 amendment increased the maximum borrowing amount under the revolving credit facility from $20,000,000 to $30,000,000. As amended, the Credit Agreement is comprised of a revolving facility in the amount of $30,000,000 and a term A loan in the amount of $6,000,000. Outstanding borrowings on the term A loan are payable in consecutive monthly installments, which currently amount to $111,111 per month.

The revolving facility under the Credit Agreement includes a $3 million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) (0.25%) for Prime Rate loans and (ii) 1.75% for LIBOR loans. The maturity date of the revolving facility is June 1, 2024. Interest for borrowings under the term A loan accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) 0.25% for Prime Rate loans and (ii) 2.25% for LIBOR loans. The maturity date of the term A loan is December 1, 2022. The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of 0.25% per annum payable quarterly. The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.

Bank debt balances consist of the following:

	March 31, 2021		December 31, 2020
Term debt	$	2,444,445	$	2,777,778
Revolving debt		16,752,098		10,825,797
Total Bank debt		19,196,543		13,603,575
Less: current portion		1,333,333		1,333,333
Non-current bank debt		17,863,210		12,270,242
Less: unamortized debt costs		105,535		95,814
Net non-current bank debt	$	17,757,675	$	12,174,428

The Company had $13.2 million and $9.2 million available to borrow on the revolving credit facility at March 31, 2021 and December 31, 2020, respectively.   

9.     NOTES PAYABLE

Notes Payable – Related Party

The Company had two separate outstanding promissory notes with First Francis Company Inc. (“First Francis”), which were originally issued in July 2016 in connection with the acquisition of Federal Hose Manufacturing (“Federal Hose”) and which were amended in July 2018 in connection with acquisition of CAD. The first promissory note was issued with original principal in the amount of $2,000,000, and the second was issued with original principal in the amount of $2,768,662. The promissory notes each had an interest rate of 6.25% per annum, which was increased from 4.0% per annum as part of the July 2018 amendments to the Credit Agreement.

In connection with the Komtek Forge acquisition, on January 15, 2021, the Company refinanced the outstanding First Francis promissory notes in the aggregate amount of $2,077,384, including accrued interest payable through the refinance date and combined this amount with an existing First Francis promissory note carried by Komtek Forge in the amount of $1,702,400 into one note for a combined $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021. The interest rate on the refinanced loan remained at 6.25% per annum. First Francis is owned by Matthew Crawford, who serves on the Board of Directors of the Company, and Edward Crawford, who served on the Board of Directors of the Company until June 17, 2019 and who has been nominated for election to the Board of Directors in 2021.  

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Notes Payable – Seller Note

Effective July 1, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of CAD.  Upon the closing of the transaction, the CAD shares were transferred and assigned to the Company in consideration of the payment by the Company of an aggregate purchase price of $21 million, $12 million of which was payable in cash at closing, with the remainder paid in the form of a subordinated promissory note issued by the Company in favor of a Seller (the “Seller Note”), which is subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Share Purchase Agreement entered into in connection with the acquisition (the “Share Purchase Agreement”).   The Seller Note bears interest at a rate of four percent (4%) per annum and is payable in full no later than June 30, 2023 (the “Maturity Date”).  The Maturity Date, with respect to any then-outstanding portion of the original principal amount which is subject to an indemnification claim by the Company (asserted in accordance with the terms of the Share Purchase Agreement) pending as of the date thereof, will be automatically extended until such time as any claim relating to such disputed amount is no longer pending, pursuant to the terms of the Seller Note and subject to additional conditions set forth therein and in the Share Purchase Agreement. The Company is not permitted to prepay any amounts due and owing under the Seller Note.  Payment of the Seller Note is secured by a second-priority security interest in the assets of CAD.   Interest accrued on the original principal amount is due and payable in arrears on the first day of each calendar quarter up to and including June 30, 2023.  The Company is required to make quarterly principal payments, the amount of which is calculated based on a four (4) year amortization schedule, on the last day of each calendar quarter up to and including the Maturity Date. The holders of the Seller Note and the Company agreed to defer the quarterly principal payment due June 30, 2020 until June 30, 2023; quarterly interest was paid on the Seller Note.

Paycheck Protection Program Notes

The Company applied for and was approved for a loan in the amount of $3,679,383 (the “PPP Loan”) on April 10, 2020 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). On May 5, 2020, the Company instructed JPMorgan to repay in full the Promissory Note pursuant to the Paycheck Protection Program under the CARES Act. On June 4, 2020, Federal Hose and CAD each entered into unsecured loans with First Federal Savings and Loan Association of Lakewood, pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), in the amounts of $253,071 and $1,200,766, respectively (the “PPP Loans”). The Company received notice of forgiveness from First Federal Savings and Loan Association of Lakewood of 100% of the CAD and Federal Hose PPP loans on January 2, 2021 and January 29, 2021 respectively.

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Notes payable consists of the following: 

	March 31, 2021		December 31, 2020
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.	$	-	$	1,108,829
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.		-		941,867
In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021.		3,779,784		-
In connection with the CARES Act, Federal Hose entered into a promissory note on June 4, 2020 for a $253,071 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 29, 2021.		-		253,071
In connection with the CARES Act, CAD entered into a promissory note on June 4, 2020 for a $1,200,766 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 22, 2021.		-		1,200,766
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the Loudermilks, payable in quarterly installments beginning September 30, 2018.		5,625,000		6,187,500
Total notes payable		9,404,784		9,692,033
Less current portion		2,915,213		2,782,479
Notes payable – non-current portion	$	6,489,571	$	6,909,554

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10. LEASES

On January 1, 2019, the Company adopted ASU 2016-02 “Leases (Topic 842),” a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP.

The Company has operating and finance leases for facilities, vehicles and equipment. These leases have remaining terms of 2 years to 15 years, some of which include options to extended the leases for up to 10 years.

Supplemental balance sheet information related to leases:

	March 31, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets, net	$	8,565,973		$	8,856,820
Other current liabilities		1,158,633			1,136,300
Operating lease liabilities		7,638,786			7,901,357
Total operating lease liabilities	$	8,797,419		$	9,037,657
Weighted Average Remaining Lease Term
Operating Leases (in years)		9.0			9.0
Weighted Average Discount Rate
Operating Leases		5.0	%		5.0	%

11. EARNINGS PER COMMON SHARE 

The following table sets forth the computation of basic and diluted earnings per share.

	Three Months Ended March 31,
	2021		2020
Earnings Per Share - Basic
Net Income	$	3,143,417	$	2,075,570
Weighted average shares of common stock outstanding - Basic		3,392,839		3,311,477
Earnings Per Share - Basic	$	0.93	$	0.63
Earnings Per Share - Diluted
Weighted average shares of common stock outstanding - Basic		3,392,839		3,311,477
Warrants, Options and Convertible Notes		881		1,680
Weighted average shares of common stock -Diluted		3,393,720		3,313,157
Earnings Per Share - Diluted	$	0.93	$	0.63

13

12. ACQUISITIONS

Effective January 15, 2021, the Company completed the acquisition of all of the issued and outstanding membership interests of KT Acquisition LLC (dba Komtek Forge, “Komtek”), a Massachusetts limited liability company and supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics. alternative energy, petrochemical, and defense industries, pursuant to a Membership Interest Purchase Agreement entered into as of January 15, 2021. The Company acquired Komtek in consideration of the payment by the Company of an aggregate purchase price of $3.6 million, subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Membership Interest Purchase Agreement, which was comprised of cash, the issuance of 60,000 Class A common shares of the Company and the assumption of approximately $1,702,000 of specified liabilities of the seller.

Cash	$	75,701
Accounts Receivable		1,502,713
Inventory		1,595,859
Fixed Assets		434,197
Prepaid and Other Assets		280,258
Goodwill		832,306
Total Assets Acquired	$	4,721,034
Accounts Payable	$	843,817
Accrued Expense		223,909
Assumed debt		1,753,757
Total Liabilities Assumed	$	2,821,483
Equity Issuance	$	1,059,000
Net Assets Acquired	$	840,551
Acquisition transaction costs incurred were:	$	145,900

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Effective March 1, 2021, MTA Acquisition Company, LLC, a Delaware limited liability company (“MTA”) and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the membership interests of Global-Tek-Manufacturing LLC, a Puerto Rico limited liability company and specialist in machining parts from wrought, rounds, castings or extrusions and providing in house anodizing and other finishing and assembly operations and substantially all of the assets of Machining Technology L.L.C., a Colorado limited liability company with CNC machining capability, pursuant to a Membership Interest and Asset Purchase Agreement entered into March 2, 2021 and effective as of March 1, 2021. The stock and assets were transferred and assigned to MTA in exchange for approximately $4.9 million in cash and the repayment of remaining outstanding indebtedness and transaction costs totaling approximately $1.6 million, subject to customary post-closing adjustments. The Purchase Agreement also includes a post-closing “earnout” that provides for up to an aggregate of $1.5 million in additional consideration to the certain sellers (up to $750,000 per year) if specified performance targets are met in the two years following closing. If earned, the additional consideration is payable in cash or, at the election of each such seller, in Company common shares up to a maximum aggregate amount of 61,475 shares.

Accounts Receivable	$	1,058,459
Inventory		173,202
Fixed Assets		3,243,031
Prepaid and Other Assets		1,036
Intangibles Assets		2,203,000
Goodwill		1,640,268
Total Assets Acquired	$	8,318,996
Accounts Payable	$	473,119
Accrued Payroll and Other Expense		29,450
Contingent Liability		1,500,000
Total Liabilities Assumed	$	2,002,569
Net Assets Acquired	$	6,316,427
Acquisition transaction costs incurred were:	$	181,133

13. SEGMENT AND RELATED INFORMATION  

As of January 1, 2021, the Company elected to report operations for two business segments: (1) Commercial Air Handling Equipment, (2) Industrial and Transportation Products. The decision to change from three to two reportable business segments was the result of a board-level discussion and was deemed appropriate given the size of the Company. The Company's management evaluates segment performance based primarily on operating income. Certain corporate costs are allocated to the segments and interest expense directly related to financing the acquisition of a business is allocated to that segment, respectively.  Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses.

Commercial Air Handling:
The Commercial Air Handling segment was added June 1, 2017, when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of 50 years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

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Industrial and Transportation Products: 

The Industrial and Transportation Products segment was added July 1, 2016, when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on July 1, 2018. CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions.  Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels.  CAD’s quality certifications include ISO 9001:2015/AS9100D, as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on January 2, 2020. MPI specialized in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective April 19, 2019, the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on January 15, 2021. Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology L.L.C. (Machining Technologies), in Longmont, Colorado on March 2, 2021. Global-Tek and Machining Technologies specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets.

Corporate and Other: 

Corporate costs not allocated to the two primary business segments are aggregated here.

Information by industry segment is set forth below: 

	Three Months Ended March 31, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	8,765,099	$	15,228,905	$	-		$	23,994,004
Gross Profit		2,230,821		3,772,100		-			6,002,921
Operating Income		1,045,631		1,751,443		(471,614	)		2,325,460
Pretax Income		1,045,631		3,025,970		(402,642	)		3,668,959
Net Income		784,224		2,660,019		(300,826	)		3,143,417

	Three Months Ended March 31, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other		Consolidated
Sales	$	11,453,774	$	13,827,800	$	-	$	25,281,574
Gross Profit		3,047,801		3,160,342		-		6,208,143
Operating Income		1,619,769		1,414,604		103,776		3,138,149
Pretax Income		1,594,804		1,121,227		53,336		2,769,367
Net Income		1,196,102		839,496		39,972		2,075,570

(1) March 31, 2020 segment information has been restated to reflect the change in reportable segments.  

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14. UNCERTAINTIES

The coronavirus (COVID-19) pandemic had a material adverse effect on the Company’s reported results for the three months ended March 31, 2021. The Company will continue to actively monitor the impact of the coronavirus pandemic, which is expected to negatively impact the Company’s business and results of operations for the remainder of fiscal year 2021 and possibly beyond. The extent to which the Company’s business and operations will be impacted by the pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak; new and growing outbreaks of COVID-19 or new strains of COVID-19; actions by government authorities to contain COVID-19 or treat its impact, such as reimposed public health restrictions; efforts to combat COVID-19, such as vaccine development and distribution, among other things.

15. SUBSEQUENT EVENTS

None

RESULTS OF OPERATIONS.

The following discussion is intended to assist in the understanding of the Company's financial position at March 31, 2021 and December 31, 2020, results of operations for the three months ended March 31, 2021 and 2020, and cash flows for the three months ended March 31, 2021 and 2020, and should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The coronavirus (COVID-19) pandemic had a material adverse effect on the Company’s reported results for the three months ended March 31, 2021. The Company will continue to actively monitor the impact of the coronavirus pandemic, which is expected to negatively impact the Company’s business and results of operations for the remainder of fiscal year 2021 and possibly beyond. Many of our customers are considered “essential” and have remained operational during the pandemic, although in some cases in a limited capacity. This, together with the overall economic downturn that has resulted from the pandemic, slowed demand in the first quarter of 2021. Nearly all of the Company’s facilities have remained operational. While there are some restrictions to the supply of materials and products and those restrictions may continue or expand, our supply chain has remained largely intact. The extent to which the Company’s business and operations will continue to be impacted by the pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the pandemic; new and growing outbreaks of COVID-19 or new strains of COVID-19; actions by government authorities to contain COVID-19 or treat its impact, such as reimposed public health restrictions; efforts to combat COVID-19, such as vaccine development and distribution, among other things.

Items Affecting the Comparability of our Financial Results

The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC “Komtek”), in Worcester, Massachusetts on January 15, 2021.

The Company purchased all of the membership interests of Global-Tek Manufacturing LLC (“Global-Tek”) in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology L.L.C. (“Machining Technology”), in Longmont, Colorado on March 2, 2021.

Accordingly, in light of the timing of these transactions, the Company’s results for the quarter ended on March 31, 2021 include the added results of operations of Komtek, Global-Tek and Machining Technology in the Industrial and Transportation Products segment. Conversely, our results for the quarter ended March 31, 2020 do not include the results of operations of Komtek, Global-Tek and Machining Technology in the Industrial and Transportation Products segment.

Results of Operations – Three Months Ended March 31, 2021 and 2020

Sales for the quarter ended March 31, 2021 (“current quarter”) decreased to $24.0 million, a decrease of approximately $1.3 million or 5.1% from sales of $25.3 million during the same quarter of the prior year. This decrease in sales was primarily attributable to the impact of the COVID-19 pandemic partially offset by the acquisitions of Komtek, Global-Tek and Machining Technology.

Cost of sales for the current quarter was $18.0 million compared to $19.1 million, a decrease of $1.1 million or 5.8% from the same quarter of the prior year.  Gross profit was $6.0 million in the current quarter compared to $6.2 million, a decrease of $0.2 million from the same quarter of the prior year.  The decrease in cost of sales and gross profit was attributable to the impact of the COVID-19 pandemic partially offset by the acquisitions of Komtek, Global-Tek and Machining Technology.

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Selling, general and administrative expenses (SG&A) in the current quarter were $3.7 million, or 15.3% of sales, compared to $3.1 million, or 12.1% of sales in the first quarter of last year. Selling, general and administrative expenses increased as a percentage of sales due primarily to $0.3 million of stock awards that were granted in the current quarter compared to $0.0 million of stock awards during the same quarter of last year. An additional $0.3 million of Selling, general and administrative expenses in the current quarter were a result of the acquisitions of Komtek, Global-Tek and Machining Technology.

Interest charges in the current quarter were approximately $0.2 million compared to $0.3 million in the same quarter of the prior year. The interest expense decreased due to lower average interest rates on the Company’s floating rate bank debt. Average total debt (including notes) and average interest rates for the current quarter were $25.6 million and 3.0% compared to $27.0 million and 3.9% in the same period of last year.

Other income, net was $1.6 million in the current quarter compared to $0.1 million of other expense, net in the same quarter of the prior year.  The increase in other income is primarily driven by the forgiveness of the Company’s $1.5 million in outstanding Payroll Protection Loans (“PPP Loans”) in full by the U.S. Small Business Administration in accordance with the terms of the CARES Act. The forgiveness of the PPP Loans is treated as income.

Income tax expense in the current quarter was $0.5 million compared to $0.7 million in the same quarter of the prior year. Tax expense is lower than the Company’s historical expected effective tax rate of 25% because the income as a result of the PPP Loan forgiveness is not taxable and because the expected tax rate for Global-Tek in Puerto Rico is lower than 25%.

Net income in the current quarter was $3.1 million or $0.93 per diluted share as compared to the net income of $2.1 million or $0.63 per diluted share for the same quarter of the prior year.  

Liquidity and Capital Resources

As described further in Note 11 to the Company’s consolidated financial statements, effective January 15, 2021, the Company completed the Komtek acquisition for a purchase price of $3.6 million, which included the assumption of $1.7 million of debt and the issuance of $1.1 million of common stock.

As described further in Note 11 to the Company’s consolidated financial statements, effective March 1, 2021, the Company completed the Global-Tek and Machining Technology acquisition for a purchase price of $8.0 million, subject to certain post-closing adjustments based on working capital and the achievement of future performance milestones.

The Company’s credit agreement, dated as of June 1, 2017, by and between the Company and JPMorgan Chase Bank, N.A. as lender (as amended, the “Credit Agreement”), provides for a revolving credit facility. On March 2, 2021, the Company amended its Credit Agreement to increase availability under the revolving credit facility to $30.0 million from $20.0 million. The amendment to the loan agreement provided additional flexibility to fund acquisitions, working capital and other strategic initiatives. 

Total current assets at March 31, 2021 increased to $39.7 million from $35.2 million at December 31, 2020, an increase of $4.5 million. The increase in current assets is comprised of the following: an increase of accounts receivable of $3.5 million; an increase in inventory of $2.1 million; an increase in contract assets of $0.2 million; and an increase in investments of $0.1 million; partially offset by a decrease in cash of $1.4 million. The increases in inventory and accounts receivable are driven primarily by the recent acquisitions of Komtek, Global-Tek and Machining Technology. The Company is carrying lower cash balances due to funding the recent acquisitions of Komtek, Global-Tek and Machining Technology.

Total current liabilities at March 31, 2021 increased to $20.1 million from $17.5 million at December 31, 2020, an increase of $2.6 million.  The increase in current liabilities is comprised of the following: an increase in accrued expenses of $1.1 million; an increase in accounts payable of $0.7 million; and an increase in accrued income taxes of $0.5 million.

Cash provided by operating activities for the three months ended March 31, 2021 was approximately $1.5 million, compared to cash provided by operating activities of $5.6 million in the same period a year ago. Cash provided by operating activities for the current quarter is comprised of the following: net income of $3.1 million; cash used in adjustments for non-cash items of $0.6 million; and cash used in working capital adjustments of $1.1 million. The primary drivers of decreased working capital during the current quarter were the increase in accounts receivable of $1.0 million and the decrease of accounts payable of $0.6 million.

Cash used in investing activities for the three months ended March 31, 2021 was $7.8 million, compared to cash used in investing activities of $9.5 million in the same period a year ago. Cash used in investing activities was for the acquisitions of Komtek, Global-Tek and Machining Technology in the Industrial and Transportation Products segment and capital expenditures in the normal course of business.

18

Cash provided by financing activities was approximately $5.0 million for the three months ended March 31, 2021, compared to cash provided by financing activities of $7.1 million in the same period a year ago. Cash provided by financing activities for the current quarter was primarily related to: $6.9 million borrowings on bank debt related to the acquisitions of Komtek, Global-Tek and Machining Technology; offset by cash used for $1.4 million in payments on bank debt and $0.5 million in payments on notes.

The Company is actively managing its business to maintain cash flow and liquidity. We believe that cash and availability on our revolving credit facility to be sufficient to fund working capital needs and service principal and interest payments due related to the bank debt and notes payable. The Company had $13.2 million available to borrow on the revolving credit facility at March 31, 2021. Notwithstanding the Company's expectations, if the Company's operating results decrease as the result of pressures on the business due to, for example, the impact of the COVID-19 pandemic, currency fluctuations, regulatory issues, or the Company's failure to execute its business plans, the Company may require additional financing, or may be unable to comply with its obligations under the credit facility, and its lenders could demand repayment of any amounts outstanding under the Company’s credit facility. As the company cannot predict the duration or scope of the COVID-19 pandemic and its impact on the Company’s customers and suppliers, the negative financial impact to the Company’s results cannot be reasonably estimated, but could be material. In addition, see Note 7 of the notes to the consolidated financial statements.

Off-Balance Sheet Arrangements

From time to time, the Company enters into performance and payment bonds in the ordinary course of business. These bonds are secured by certain assets of the Company by the surety until the Company’s completion of the requirements of the commercial air handling contract. At March 31, 2021, the Company did not have any active surety bonds for which performance and payment had not been satisfied. The Company has no other off-balance sheet arrangements (as defined in Regulation S-K Item 303 paragraph (a)(4)(ii)) that have or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

The Company’s critical accounting policies are as presented in Notes to Consolidated Financial Statements and Management’s Discuss and Analysis of Financial Condition and Results of Operations in our Annual Report Form 10-K for the year ended December 31, 2020.

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Forward-Looking Statements

The foregoing discussion includes forward-looking statements relating to the business of the Company. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements, or other statements made by the Company, are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) the Company's ability to effectively integrate acquisitions, including the acquisitions of Komtek, Global-Tek and Machining Technology, and manage the larger operations of the combined businesses

(b) the duration and scope of the COVID-19 pandemic, the resumption of operations by the Company’s customers, loosening of public health restrictions, or an reimposed restrictions or tightening of public health restrictions which could impact the demand for the Company’s products; (c) the Company’s inability to obtain needed products, components or raw materials from its suppliers; (d) actions that governments, businesses and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; (e) the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; (f) the pace of recovery when the COVID-19 pandemic subsides; (g) the Company's ability to effectively integrate acquisitions, and manage the larger operations of the combined businesses, (h) the Company's dependence upon a limited number of customers and the aerospace industry, (i) the highly competitive industry in which the Company operates, which includes several competitors with greater financial resources and larger sales organizations, (j) the Company's ability to capitalize on market opportunities in certain sectors, (k) the Company's ability to obtain cost effective financing and (l) the Company's ability to satisfy obligations under its financing arrangements, and the other risks described in “Item 1A. Risk Factors” in this Annual Report on Form 10-K and the Company’s subsequent filings with the SEC. 

ITEM 3. MARKET RISK

This item is not applicable to the Company as a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

As of March 31, 2021, an evaluation was performed, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer along with the Company's Vice President, Finance and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based upon that evaluation, the Company's management, including the Chief Executive Officer along with the Company's Chief Financial Officer, concluded that the Company's disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended ("Exchange Act") were effective as of March 31, 2021 to ensure that information required to be disclosed by the Company in reports that it files and submits under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms, and (2) is accumulated and communicated to the Company's management, including its principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. There were no changes in the Company's internal controls over financial reporting during the quarter ended March 31, 2021 that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.

The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles. The Company's internal control over financial reporting includes policies and procedures that (1) pertain to maintaining records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the Company's receipts and expenditures are being made only in accordance with authorization of the Company's management and directors, and (3) provide reasonable assurance regarding prevention or the timely detection of unauthorized acquisition, use or disposal of the company's assets that could have a material effect on the financial statements.

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Management, including the Company's Chief Executive Officer along with the Company's Vice President, Finance and Chief Financial Officer, does not expect that the Company's internal controls will prevent or detect all errors and all fraud. An internal control system no matter how well designed and operated can provide only reasonable, not absolute, assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, collusion of two or more people, or by management override of the control. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS. 

None.

ITEM 1A. RISK FACTORS. 

There have been no material changes from the risk factors disclosed in Part 1, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2020.

ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3 DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

2.1	Membership Interest Purchase Agreement entered into as of January 15, 2021 by and among CAD Enterprises, Inc. and the sellers named therein, for the acquisition of Komtek Forge (incorporated herein by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on January 21, 2021).
2.2	Membership Interest Purchase Agreement entered into as of March 1, 2021 by and among MTA Acquisition Company, LLC and the sellers named therein, for the acquisitions of Global-Tek and Machining Technology (incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on March 5, 2021).
31.1	Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation
101.DEF*	XBRL Extension Definition
101.LAB*	XBRL Taxonomy Extension Labels
101.PRE*	XBRL Taxonomy Extension Presentation

*XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned as of the 11th day of May 2021, thereunto duly authorized.

SIGNATURE:	TITLE
/s/ Brian E. Powers	Chairman, President and Chief
Brian E. Powers	Executive Officer
	(Principal Executive Officer)
/s/ John P. Daly	Vice President and Chief Financial Officer
John P. Daly	(Principal Accounting and Financial Officer)

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EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Brian E. Powers, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Crawford United Corporation (the "registrant");
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:

/s/ Brian E. Powers

Brian E. Powers

President and Chief Executive Officer

May 11, 2021

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, John P. Daly, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Crawford United Corporation (the "registrant");
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:

/s/ John P, Daly

John P. Daly

Vice President and Chief Financial Officer

May 11, 2021

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Crawford United Corporation (the "Company") on Form 10-Q for the period ending March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Brian Powers, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Brian E. Powers

Brian E. Powers

President and Chief Executive Officer

May 11, 2021

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Crawford United Corporation (the "Company") on Form 10-Q for the period ending March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John P. Daly, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John P. Daly

John P. Daly

Chief Financial Officer

May 11, 2021

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Document Information [Line Items]
Entity Registrant Name	CRAWFORD UNITED Corp
Entity Central Index Key	0000047307
Trading Symbol	crawa
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Title of 12(g) Security	Class A Common Shares, without par value
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		771,848
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		2,637,058

XML

Consolidated Balance Sheet (Current Period Unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 4,841,177	$ 6,194,276
Accounts receivable less allowance for doubtful accounts	15,550,526	12,021,692
Contract assets	3,901,253	3,735,557
Inventories-less allowance for obsolete inventory	13,119,476	11,030,960
Balance	1,644,975	1,534,400
Prepaid expenses and other current assets	674,789	657,496
Total Current Assets	39,732,196	35,174,381
Property, plant and equipment, net	15,286,257	11,290,783
Operating right of use asset, net	8,565,973	8,856,820
OTHER ASSETS:
Goodwill	13,978,426	11,505,852
Intangibles, net of accumulated amortization	9,555,385	7,558,309
Other non-current assets	102,129	106,638
Total Non-Current Other Assets	23,635,940	19,170,799
Total Assets	87,220,366	74,492,783
CURRENT LIABILITIES:
Notes payable – current	2,915,213	2,782,479
Bank debt – current	1,333,333	1,333,333
Leases payable – current	1,158,633	1,136,300
Accounts payable	9,913,661	9,230,032
Unearned revenue	677,741	820,002
Contingent liability - current	750,000
Accrued expenses	3,382,366	2,242,924
Total Current Liabilities	20,130,947	17,545,070
LONG-TERM LIABILITIES:
Notes payable – long-term	6,489,571	5,455,717
Bank debt – long-term	17,757,675	12,174,428
Leases payable – long-term	7,638,786	7,901,357
Deferred income taxes	2,429,828	2,429,828
Contingent liability – long-term	750,000
Total Long-Term Liabilities	35,065,860	29,415,167
STOCKHOLDERS' EQUITY
Contributed capital	1,741,901	1,741,901
Treasury shares	(1,979,085)	(1,938,052)
Retained earnings	25,509,888	22,366,470
Total Stockholders' Equity	32,023,559	27,532,546
Total Liabilities and Stockholders' Equity	87,220,366	74,492,783
Common Class A [Member]
STOCKHOLDERS' EQUITY
Common stock	5,285,333	3,896,705
Common Class B [Member]
STOCKHOLDERS' EQUITY
Common stock	1,465,522	1,465,522
Paycheck Protection Program CARES Act [Member]
LONG-TERM LIABILITIES:
Notes payable – long-term		$ 1,453,837

XML

Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Mar. 31, 2021	Dec. 31, 2020
Common Class A [Member]
Class of common stock, par value (in dollars per share)	$ 0	$ 0
Class of common stock, shares authorized (in shares)	10,000,000	10,000,000
Class of common stock, shares issued (in shares)	2,678,787	2,678,787
Treasury shares, issued (in shares)	41,729	39,467
Common Class B [Member]
Class of common stock, par value (in dollars per share)	$ 0	$ 0
Class of common stock, shares authorized (in shares)	2,500,000	2,500,000
Class of common stock, shares issued (in shares)	954,283	954,283
Treasury shares, issued (in shares)	182,435	182,435

XML

Consolidated Statement of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Total sales	$ 23,994,004	$ 25,281,574
Cost of Sales	17,991,083	19,073,431
Gross Profit	6,002,921	6,208,143
Operating Expenses:
Selling, General and administrative expenses	3,677,461	3,069,994
Operating Income	2,325,460	3,138,149
Other (Income) and Expenses:
Interest charges	218,618	297,421
Realized (gain) on investments	(152,761)
Unrealized (gain) on investments	(233,644)
PPP loan forgiveness	1,453,837
Other (income) expense, net	278,125	71,361
Total Other (Income) and Expenses	(1,343,499)	368,782
Income before Provision for Income Taxes	3,668,959	2,769,367
Provision for Income Taxes	525,542	693,797
Net Income	$ 3,143,417	$ 2,075,570
Net Income Per Common Share - Basic (in dollars per share)	$ 0.93	$ 0.63
Net Income Per Common Share - Diluted (in dollars per share)	$ 0.93	$ 0.63
Weighted Average Shares of Common Stock Outstanding
Basic (in shares)	3,392,839	3,311,477
Diluted (in shares)	3,393,720	3,313,157

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock Including Additional Paid in Capital [Member] Common Class A [Member]	Common Stock Including Additional Paid in Capital [Member] Common Class B [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member] Common Class A [Member]	Treasury Stock [Member] Common Class B [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Common Stock Outstanding [Member] Common Class A [Member]	Common Stock Outstanding [Member] Common Class B [Member]	Total
Balance at Dec. 31, 2019	$ 3,599,806	$ 1,465,522	$ 1,741,901			$ (1,905,780)	$ 16,527,083			$ 21,428,532
Share-based compensation expense	70,849									70,849
Stock awards	226,050									226,050
Repurchase of shares						(32,272)				(32,272)
Net income							5,839,387			5,839,387
Balance at Dec. 31, 2020	$ 3,896,705	$ 1,465,522	1,741,901			(1,938,052)	22,366,470			27,532,546
Balance (in shares) at Dec. 31, 2019	2,576,837	954,283		37,208	182,435			2,539,629	771,848
Stock awards (in shares)	17,250							17,250
Stock option exercise (in shares)	1,000							1,000
Repurchase of shares (in shares)				2,259				(2,259)
Balance (in shares) at Dec. 31, 2020	2,595,087	954,283		39,467	182,435			2,555,620	771,848
Share-based compensation expense	$ 15,667									15,667
Stock awards	313,961									313,961
Repurchase of shares						(41,033)				(41,033)
Net income							3,143,417			3,143,417
Issuance for acquisition	1,059,000									1,059,000
Balance at Mar. 31, 2021	$ 5,285,333	$ 1,465,522	$ 1,741,901			$ (1,979,085)	$ 25,509,887			$ 32,023,559
Stock awards (in shares)	23,700							23,700
Repurchase of shares (in shares)				2,262				(2,262)
Acquisition (in shares)	60,000							60,000
Balance (in shares) at Mar. 31, 2021	2,678,787	954,283		41,729	182,435			2,637,058	771,848

XML

Consolidated Statement of Cash Flow (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Cash Flows from Operating Activities
Net Income	$ 3,143,417	$ 2,075,570	$ 5,839,387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	724,641	623,465
Unrealized gain on investments in equity securities	(233,644)
Forgiveness of PPP loan	(1,453,837)
Non-cash share-based compensation expense	329,628	36,466
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable	(967,662)	2,056,246
Decrease (Increase) in inventories	(319,455)	(339,843)
Decrease (Increase) in contract assets	(165,696)	(1,775,539)
Decrease (Increase) in prepaid expenses & other assets	268,510	(58,099)
Increase (Decrease) in accounts payable	(633,307)	2,305,197
Increase (Decrease) in accrued expenses	912,024	1,239,831
Increase (Decrease) in unearned revenue	(142,261)	(546,965)
Total adjustments	(1,681,059)	3,540,759
Net Cash Provided by Operating Activities	1,462,358	5,616,329
Cash Flows from Investing Activities
Cash paid for business acquisitions	(7,081,277)	(9,400,000)
Sale of equity securities	123,069
Capital expenditures	(827,184)	(122,720)
Net Cash (Used in) Investing Activities	(7,785,392)	(9,522,720)
Cash Flows from Financing Activities
Payments on notes	(562,500)	(684,720)
Payments on bank debt	(1,352,833)	(3,093,747)
Borrowings on bank debt	6,926,301	10,870,893
Share repurchase	(41,033)
Net Cash Provided by Financing Activities	4,969,935	7,092,426
Net Increase (decrease) in cash and cash equivalents	(1,353,099)	3,186,035
Cash and cash equivalents at beginning of period	6,194,276	2,232,499	2,232,499
Cash and cash equivalents at end of period	4,841,177	5,418,534	$ 6,194,276
Supplemental disclosures of cash flow information
Interest Paid	153,995	255,742
Common Class A [Member]
Supplemental disclosures of noncash financing activity
Supplemental disclosures of noncash investing activity	1,059,000
Paycheck Protection Program CARES Act [Member]
Supplemental disclosures of noncash financing activity
Forgiveness of PPP loan	$ 1,453,837

XML

Note 1 - Basis of Presentation

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Basis of Accounting [Text Block]

1.

 

BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form

10

-Q and Article

8

of Regulation S-

X.

Accordingly, they do

not

include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the “Company”). Significant intercompany transactions and balances have been eliminated in the financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the

three

months ended

March 31, 2021

are

not

necessarily indicative of the results that

may

be expected for the fiscal year ended

December 31, 2021.

For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form

10

-K for the fiscal year ended

December 31, 2020. 

During the

three

-month period ended

March 31, 2021,

there have been

no

changes to our significant accounting policies.

XML

Note 2 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2.

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company's Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form

10

-K for the fiscal year ended

December 31, 2020.

New Accounting Standards

Not

Yet Adopted

In

June 2016,

the FASB issued ASU

2016

-

13,

Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for smaller reporting companies beginning after

December 15, 2022. 

Fair Value of Financial Instruments

Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

Fair Value Measurements

As defined in FASB ASC

820,

"Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in

one

of the following

three

categories:

* Level

1:

Quoted market prices in active markets for identical assets or liabilities.

* Level

2:

Inputs to the valuation methodology include: * Quoted prices for similar assets or liabilities in active markets;

* Quoted prices for identical assets or similar assets or liabilities in inactive markets;

* Inputs other than quoted prices that are observable for the asset or liability;

* Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

* Level

3:

Unobservable inputs that are

not

corroborated by market data.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level

1

investment.

XML

Note 3 - Accounts Receivable

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3.

 

ACCOUNTS RECEIVABLE

 

The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. The reserve for doubtful accounts was

$17,009

and

$19,973

at

March 31, 2021

and

December 31, 2020,

respectively.

XML

Note 4 - Inventory

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

4.

 

INVENTORY

Inventory is valued at the lower of cost (

first

-in,

first

-out) or net realizable value and consists of:

	March 31, 2021		December 31, 2020
Raw materials and component parts	$	3,914,652	$	3,897,133
Work-in-process		3,963,814		3,449,252
Finished products		5,556,355		3,999,920
Total inventory	$	13,434,821	$	11,346,305
Less: inventory reserves		315,345		315,345
Net inventory	$	13,119,476	$	11,030,960

XML

Note 5 - Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

5.

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

For the identified reporting units, a Step

1

impairment test was performed as of

December 31, 2020

using an income approach based on management's determination of the prospective financial information, with consideration given to the existing uncertainty in the global economy and aerospace and defense industry, particularly the commercial sector. The results of this test indicated the fair value exceeded carrying value for all reporting units tested. As a result of the impairment testing performed as of

December 31, 2020,

no

indefinite-lived intangible assets or goodwill was determined to be impaired. Management updated their assessment during the

first

quarter of fiscal

2021

and validated the assumptions used in the analyses performed as of

December 31, 2020

and determined that the resulting conclusions remained appropriate as of

March 31, 2021.

Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is

not

amortized but is reviewed on an annual basis for impairment. Amortization of intangibles is being amortized on a straight-line basis over period ranging from

one

year to

15

years. Intangible assets are as follows:

	March 31, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,477,615		2,271,691
Intangible assets, net	$	9,555,385	$	7,558,309

Amortization of intangibles assets was:

$205,924

 and 

$179,340

for the

three

months ended

March 31, 2021

and

2020,

respectively.

XML

Note 6 - Property, Plant and Equipment, Net

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6.

 

PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows:

	March 31, 2021		December 31, 2020
Land	$	228,872	$	228,872
Buildings and improvements		2,434,882		2,061,887
Machinery & equipment		20,251,375		14,329,462
Total property, plant & equipment		22,915,129		16,620,221
Less: accumulated depreciation		7,628,872		5,329,438
Property plant & equipment, net	$	15,286,257	$	11,290,783

Depreciation expense was

$508,937

 and

$434,684

for the

three

months ended

March 31, 2021

and

2020,

respectively.

XML

Note 7 - Investments in Equity Securities

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

7.

 

INVESTMENTS IN EQUITY SECURITIES

Investments in equity securities are summarized in the table below:

	March 31, 2021		December 31, 2020
Fair value of equity securities	$	1,644,975	$	1,534,400
Cost basis		826,224		949,293
Unrealized gain (loss) on equity securities	$	818,751	$	585,107

Unrealized gains were

$233,644

as of

March 31, 2021

compared to

$585,107

as of

December 31, 2020

and unrealized losses were

$0

as of

March 31, 2021

compared to

$0

as of

December 31, 2020.

Realized gains were

$152,748

as of

March 31, 2021

compared to

$0

as of

December 31, 2020

and Realized losses were

$0

as of

March 31, 2021

and

$0

as of

December 31, 2020.

Investments by fair value level in the hierarchy as of

March 31, 2021

and

December 31, 2020

are as follows:

	Quoted Market Prices in Attractive Markets (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Unobservable Inputs that are not Corroborated by Market Data (Level 3)		Total Carrying Value in the Balance Sheet
Common stock as of March 31, 2021	$	1,644,975	$	-	$	-	$	1,644,975
Common stock as of December 31, 2020	$	1,534,400	$	-	$	-	$	1,534,400

XML

Note 8 - Bank Debt

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

8.

 

BANK DEBT

 

The Company entered into a Credit Agreement on

June 1, 2017

with JPMorgan Chase Bank, N.A. as lender, which was amended in connection with funding the acquisition of CAD Enterprises, Inc. (“CAD”) on

July 5, 2018

and further amended on

September 30, 2019,

December 30, 2019

and

March 2, 2021 (

as amended, the “Credit Agreement”). The

March 2, 2021

amendment increased the maximum borrowing amount under the revolving credit facility from

$20,000,000

to

$30,000,000.

As amended, the Credit Agreement is comprised of a revolving facility in the amount of

$30,000,000

and a term A loan in the amount of

$6,000,000.

Outstanding borrowings on the term A loan are payable in consecutive monthly installments, which currently amount to

$111,111

per month.

The revolving facility under the Credit Agreement includes a

$3

million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) (

0.25%

) for Prime Rate loans and (ii)

1.75%

for LIBOR loans. The maturity date of the revolving facility is

June 1, 2024.

Interest for borrowings under the term A loan accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i)

0.25%

for Prime Rate loans and (ii)

2.25%

for LIBOR loans. The maturity date of the term A loan is

December 1, 2022.

The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of

0.25%

per annum payable quarterly. The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.

Bank debt balances consist of the following:

	March 31, 2021		December 31, 2020
Term debt	$	2,444,445	$	2,777,778
Revolving debt		16,752,098		10,825,797
Total Bank debt		19,196,543		13,603,575
Less: current portion		1,333,333		1,333,333
Non-current bank debt		17,863,210		12,270,242
Less: unamortized debt costs		105,535		95,814
Net non-current bank debt	$	17,757,675	$	12,174,428

The Company had

$13.2

million and

$9.2

million available to borrow on the revolving credit facility at

March 31, 2021

and

December 31, 2020,

respectively.   

XML

Note 9 - Notes Payable

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

9.

   

NOTES PAYABLE

Notes Payable

–

Related Party

The Company had 

two

separate outstanding promissory notes with First Francis Company Inc. (“First Francis”), which were originally issued in

July 2016

in connection with the acquisition of Federal Hose Manufacturing (“Federal Hose”) and which were amended in

July 2018

in connection with acquisition of CAD. The

first

promissory note was issued with original principal in the amount of

$2,000,000,

and the

second

was issued with original principal in the amount of

$2,768,662.

The promissory notes each had an interest rate of

6.25%

per annum, which was increased from

4.0%

per annum as part of the

July 2018

amendments to the Credit Agreement.

In connection with the Komtek Forge acquisition, on

January 15, 2021,

the Company refinanced the outstanding First Francis promissory notes in the aggregate amount of

$2,077,384,

including accrued interest payable through the refinance date and combined this amount with an existing First Francis promissory note carried by Komtek Forge in the amount of

$1,702,400

into

one

note for a combined

$3,779,784

loan due to First Francis Company, payable in quarterly installments beginning

April 15, 2021.

The interest rate on the refinanced loan remained at

6.25%

per annum. First Francis is owned by Matthew Crawford, who serves on the Board of Directors of the Company, and Edward Crawford, who served on the Board of Directors of the Company until

June 17, 2019

and who has been nominated for election to the Board of Directors in

2021.

  

Notes Payable

–

Seller Note

Effective

July 1, 2018,

the Company completed the acquisition of all of the issued and outstanding shares of capital stock of CAD.  Upon the closing of the transaction, the CAD shares were transferred and assigned to the Company in consideration of the payment by the Company of an aggregate purchase price of

$21

million,

$12

million of which was payable in cash at closing, with the remainder paid in the form of a subordinated promissory note issued by the Company in favor of a Seller (the “Seller Note”), which is subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Share Purchase Agreement entered into in connection with the acquisition (the “Share Purchase Agreement”).   The Seller Note bears interest at a rate of

four

percent (

4%

) per annum and is payable in full

no

later than

June 30, 2023 (

the “Maturity Date”).  The Maturity Date, with respect to any then-outstanding portion of the original principal amount which is subject to an indemnification claim by the Company (asserted in accordance with the terms of the Share Purchase Agreement) pending as of the date thereof, will be automatically extended until such time as any claim relating to such disputed amount is

no

longer pending, pursuant to the terms of the Seller Note and subject to additional conditions set forth therein and in the Share Purchase Agreement. The Company is

not

permitted to prepay any amounts due and owing under the Seller Note.  Payment of the Seller Note is secured by a

second

-priority security interest in the assets of CAD.   Interest accrued on the original principal amount is due and payable in arrears on the

first

day of each calendar quarter up to and including

June 30, 2023. 

The Company is required to make quarterly principal payments, the amount of which is calculated based on a

four

(

4

) year amortization schedule, on the last day of each calendar quarter up to and including the Maturity Date. The holders of the Seller Note and the Company agreed to defer the quarterly principal payment due

June 30, 2020

until

June 30, 2023;

quarterly interest was paid on the Seller Note.

Paycheck Protection Program Notes

The Company applied for and was approved for a loan in the amount of

$3,679,383

(the “PPP Loan”) on

April 10, 2020

pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). On

May 5, 2020,

the Company instructed JPMorgan to repay in full the Promissory Note pursuant to the Paycheck Protection Program under the CARES Act. On

June 4, 2020,

Federal Hose and CAD each entered into unsecured loans with First Federal Savings and Loan Association of Lakewood, pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), in the amounts of

$253,071

and

$1,200,766,

respectively (the “PPP Loans”). The Company received notice of forgiveness from First Federal Savings and Loan Association of Lakewood of

100%

of the CAD and Federal Hose PPP loans on

January 2, 2021

and

January 29, 2021

respectively.

Notes payable consists of the following: 

	March 31, 2021		December 31, 2020
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.	$	-	$	1,108,829
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.		-		941,867
In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021.		3,779,784		-
In connection with the CARES Act, Federal Hose entered into a promissory note on June 4, 2020 for a $253,071 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 29, 2021.		-		253,071
In connection with the CARES Act, CAD entered into a promissory note on June 4, 2020 for a $1,200,766 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 22, 2021.		-		1,200,766
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the Loudermilks, payable in quarterly installments beginning September 30, 2018.		5,625,000		6,187,500
Total notes payable		9,404,784		9,692,033
Less current portion		2,915,213		2,782,479
Notes payable – non-current portion	$	6,489,571	$	6,909,554

XML

Note 10 - Leases

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

10.

LEASES

On

January 1, 2019,

the Company adopted ASU

2016

-

02

“Leases (Topic

842

),” a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP.

The Company has operating and finance leases for facilities, vehicles and equipment. These leases have remaining terms of

2

years to

15

years, some of which include options to extended the leases for up to

10

years.

Supplemental balance sheet information related to leases:

	March 31, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets, net	$	8,565,973		$	8,856,820
Other current liabilities		1,158,633			1,136,300
Operating lease liabilities		7,638,786			7,901,357
Total operating lease liabilities	$	8,797,419		$	9,037,657
Weighted Average Remaining Lease Term
Operating Leases (in years)		9.0			9.0
Weighted Average Discount Rate
Operating Leases		5.0	%		5.0	%

XML

Note 11 - Earnings Per Common Share

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

11.

EARNINGS PER COMMON SHARE

 

The following table sets forth the computation of basic and diluted earnings per share.

	Three Months Ended March 31,
	2021		2020
Earnings Per Share - Basic
Net Income	$	3,143,417	$	2,075,570
Weighted average shares of common stock outstanding - Basic		3,392,839		3,311,477
Earnings Per Share - Basic	$	0.93	$	0.63
Earnings Per Share - Diluted
Weighted average shares of common stock outstanding - Basic		3,392,839		3,311,477
Warrants, Options and Convertible Notes		881		1,680
Weighted average shares of common stock -Diluted		3,393,720		3,313,157
Earnings Per Share - Diluted	$	0.93	$	0.63

XML

Note 12 - Acquisitions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

12.

ACQUISITIONS

Effective

January 15, 2021,

the Company completed the acquisition of all of the issued and outstanding membership interests of KT Acquisition LLC (dba Komtek Forge, “Komtek”), a Massachusetts limited liability company and supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics. alternative energy, petrochemical, and defense industries, pursuant to a Membership Interest Purchase Agreement entered into as of

January 15, 2021.

The Company acquired Komtek in consideration of the payment by the Company of an aggregate purchase price of

$3.6

million, subject to certain post-closing adjustments based on working capital, indebtedness and selling expenses, as specified in the Membership Interest Purchase Agreement, which was comprised of cash, the issuance of

60,000

Class A common shares of the Company and the assumption of approximately

$1,702,000

of specified liabilities of the seller.

Cash	$	75,701
Accounts Receivable		1,502,713
Inventory		1,595,859
Fixed Assets		434,197
Prepaid and Other Assets		280,258
Goodwill		832,306
Total Assets Acquired	$	4,721,034
Accounts Payable	$	843,817
Accrued Expense		223,909
Assumed debt		1,753,757
Total Liabilities Assumed	$	2,821,483
Equity Issuance	$	1,059,000
Net Assets Acquired	$	840,551
Acquisition transaction costs incurred were:	$	145,900

Effective

March 1, 2021,

MTA Acquisition Company, LLC, a Delaware limited liability company (“MTA”) and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the membership interests of Global-Tek-Manufacturing LLC, a Puerto Rico limited liability company and specialist in machining parts from wrought, rounds, castings or extrusions and providing in house anodizing and other finishing and assembly operations and substantially all of the assets of Machining Technology L.L.C., a Colorado limited liability company with CNC machining capability, pursuant to a Membership Interest and Asset Purchase Agreement entered into

March 2, 2021

and effective as of

March 1, 2021.

The stock and assets were transferred and assigned to MTA in exchange for approximately

$4.9

million in cash and the repayment of remaining outstanding indebtedness and transaction costs totaling approximately

$1.6

million, subject to customary post-closing adjustments. The Purchase Agreement also includes a post-closing “earnout” that provides for up to an aggregate of

$1.5

million in additional consideration to the certain sellers (up to

$750,000

per year) if specified performance targets are met in the

two

years following closing. If earned, the additional consideration is payable in cash or, at the election of each such seller, in Company common shares up to a maximum aggregate amount of

61,475

shares.

Accounts Receivable	$	1,058,459
Inventory		173,202
Fixed Assets		3,243,031
Prepaid and Other Assets		1,036
Intangibles Assets		2,203,000
Goodwill		1,640,268
Total Assets Acquired	$	8,318,996
Accounts Payable	$	473,119
Accrued Payroll and Other Expense		29,450
Contingent Liability		1,500,000
Total Liabilities Assumed	$	2,002,569
Net Assets Acquired	$	6,316,427
Acquisition transaction costs incurred were:	$	181,133

XML

Note 13 - Segment and Related Information

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13.

SEGMENT AND RELATED INFORMATION

  

As of

January 1, 2021,

the Company elected to report operations for

two

business segments: (

1

) Commercial Air Handling Equipment, (

2

) Industrial and Transportation Products. The decision to change from

three

to

two

reportable business segments was the result of a board-level discussion and was deemed appropriate given the size of the Company. The Company's management evaluates segment performance based primarily on operating income. Certain corporate costs are allocated to the segments and interest expense directly related to financing the acquisition of a business is allocated to that segment, respectively.  Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses.

Commercial Air Handling:

The Commercial Air Handling segment was added

June 1, 2017,

when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of

50

years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

Industrial and Transportation Products:

 

The Industrial and Transportation Products segment was added

July 1, 2016,

when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on

July 1, 2018.

CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions.  Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels.  CAD's quality certifications include ISO

9001:2015/AS9100D,

as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on

January 2, 2020.

MPI specialized in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective

April 19, 2019,

the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on

January 15, 2021.

Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology L.L.C. (Machining Technologies), in Longmont, Colorado on

March 2, 2021.

Global-Tek and Machining Technologies specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets.

Corporate and Other:

 

Corporate costs

not

allocated to the

two

 primary business segments are aggregated here.

Information by industry segment is set forth below:

 

	Three Months Ended March 31, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	8,765,099	$	15,228,905	$	-		$	23,994,004
Gross Profit		2,230,821		3,772,100		-			6,002,921
Operating Income		1,045,631		1,751,443		(471,614	)		2,325,460
Pretax Income		1,045,631		3,025,970		(402,642	)		3,668,959
Net Income		784,224		2,660,019		(300,826	)		3,143,417

	Three Months Ended March 31, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other		Consolidated
Sales	$	11,453,774	$	13,827,800	$	-	$	25,281,574
Gross Profit		3,047,801		3,160,342		-		6,208,143
Operating Income		1,619,769		1,414,604		103,776		3,138,149
Pretax Income		1,594,804		1,121,227		53,336		2,769,367
Net Income		1,196,102		839,496		39,972		2,075,570

( 1 ) March 31, 2020 segment information has been restated to reflect the change in reportable segments.  

XML

Note 14 - Uncertainties

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Effect of Covid19 Pandemic [Text Block]

14.

UNCERTAINTIES

The coronavirus (COVID-

19

) pandemic had a material adverse effect on the Company's reported results for the

three

months ended

March 31, 2021.

The Company will continue to actively monitor the impact of the coronavirus pandemic, which is expected to negatively impact the Company's business and results of operations for the remainder of fiscal year

2021

and possibly beyond. The extent to which the Company's business and operations will be impacted by the pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which

may

emerge concerning the severity of the outbreak; new and growing outbreaks of COVID-

19

or new strains of COVID-

19;

actions by government authorities to contain COVID-

19

or treat its impact, such as reimposed public health restrictions; efforts to combat COVID-

19,

such as vaccine development and distribution, among other things.

XML

Note 15 - Subsequent Events

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Subsequent Events [Text Block]

15.

SUBSEQUENT EVENTS

None

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Standards

Not

Yet Adopted

In

June 2016,

the FASB issued ASU

2016

-

13,

Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for smaller reporting companies beginning after

December 15, 2022. 

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

Fair Value Measurements

As defined in FASB ASC

820,

"Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in

one

of the following

three

categories:

* Level

1:

Quoted market prices in active markets for identical assets or liabilities.

* Level

2:

Inputs to the valuation methodology include: * Quoted prices for similar assets or liabilities in active markets;

* Quoted prices for identical assets or similar assets or liabilities in inactive markets;

* Inputs other than quoted prices that are observable for the asset or liability;

* Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

* Level

3:

Unobservable inputs that are

not

corroborated by market data.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level

1

investment.

XML

Note 4 - Inventory (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31, 2021		December 31, 2020
Raw materials and component parts	$	3,914,652	$	3,897,133
Work-in-process		3,963,814		3,449,252
Finished products		5,556,355		3,999,920
Total inventory	$	13,434,821	$	11,346,305
Less: inventory reserves		315,345		315,345
Net inventory	$	13,119,476	$	11,030,960

XML

Note 5 - Goodwill and Other Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	March 31, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,477,615		2,271,691
Intangible assets, net	$	9,555,385	$	7,558,309

XML

Note 6 - Property, Plant and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Property, Plant and Equipment [Table Text Block]

	March 31, 2021		December 31, 2020
Land	$	228,872	$	228,872
Buildings and improvements		2,434,882		2,061,887
Machinery & equipment		20,251,375		14,329,462
Total property, plant & equipment		22,915,129		16,620,221
Less: accumulated depreciation		7,628,872		5,329,438
Property plant & equipment, net	$	15,286,257	$	11,290,783

XML

Note 7 - Investments in Equity Securities (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block]

	March 31, 2021		December 31, 2020
Fair value of equity securities	$	1,644,975	$	1,534,400
Cost basis		826,224		949,293
Unrealized gain (loss) on equity securities	$	818,751	$	585,107

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

	Quoted Market Prices in Attractive Markets (Level 1)		Models with Significant Observable Market Parameters (Level 2)		Unobservable Inputs that are not Corroborated by Market Data (Level 3)		Total Carrying Value in the Balance Sheet
Common stock as of March 31, 2021	$	1,644,975	$	-	$	-	$	1,644,975
Common stock as of December 31, 2020	$	1,534,400	$	-	$	-	$	1,534,400

XML

Note 8 - Bank Debt (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Debt [Table Text Block]

	March 31, 2021		December 31, 2020
Term debt	$	2,444,445	$	2,777,778
Revolving debt		16,752,098		10,825,797
Total Bank debt		19,196,543		13,603,575
Less: current portion		1,333,333		1,333,333
Non-current bank debt		17,863,210		12,270,242
Less: unamortized debt costs		105,535		95,814
Net non-current bank debt	$	17,757,675	$	12,174,428

XML

Note 9 - Notes Payable (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	March 31, 2021		December 31, 2020
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.	$	-	$	1,108,829
In connection with the Federal Hose acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments beginning October 31, 2016. Refinanced on January 15, 2021.		-		941,867
In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021.		3,779,784		-
In connection with the CARES Act, Federal Hose entered into a promissory note on June 4, 2020 for a $253,071 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 29, 2021.		-		253,071
In connection with the CARES Act, CAD entered into a promissory note on June 4, 2020 for a $1,200,766 loan due to First Federal Savings and Loan Association of Lakewood, with monthly principal and interest installments scheduled to begin January 4, 2021. This note was fully forgiven on January 22, 2021.		-		1,200,766
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the Loudermilks, payable in quarterly installments beginning September 30, 2018.		5,625,000		6,187,500
Total notes payable		9,404,784		9,692,033
Less current portion		2,915,213		2,782,479
Notes payable – non-current portion	$	6,489,571	$	6,909,554

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Note 10 - Leases (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block]

	March 31, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets, net	$	8,565,973		$	8,856,820
Other current liabilities		1,158,633			1,136,300
Operating lease liabilities		7,638,786			7,901,357
Total operating lease liabilities	$	8,797,419		$	9,037,657
Weighted Average Remaining Lease Term
Operating Leases (in years)		9.0			9.0
Weighted Average Discount Rate
Operating Leases		5.0	%		5.0	%

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Note 11 - Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended March 31,
	2021		2020
Earnings Per Share - Basic
Net Income	$	3,143,417	$	2,075,570
Weighted average shares of common stock outstanding - Basic		3,392,839		3,311,477
Earnings Per Share - Basic	$	0.93	$	0.63
Earnings Per Share - Diluted
Weighted average shares of common stock outstanding - Basic		3,392,839		3,311,477
Warrants, Options and Convertible Notes		881		1,680
Weighted average shares of common stock -Diluted		3,393,720		3,313,157
Earnings Per Share - Diluted	$	0.93	$	0.63

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Note 12 - Acquisitions (Tables)

3 Months Ended

Mar. 31, 2021

Acquisition of Global Tek Manufacturing LLC [Member]

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Accounts Receivable	$	1,058,459
Inventory		173,202
Fixed Assets		3,243,031
Prepaid and Other Assets		1,036
Intangibles Assets		2,203,000
Goodwill		1,640,268
Total Assets Acquired	$	8,318,996
Accounts Payable	$	473,119
Accrued Payroll and Other Expense		29,450
Contingent Liability		1,500,000
Total Liabilities Assumed	$	2,002,569
Net Assets Acquired	$	6,316,427
Acquisition transaction costs incurred were:	$	181,133

Komtek Forge Acquisition [Member]

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Cash	$	75,701
Accounts Receivable		1,502,713
Inventory		1,595,859
Fixed Assets		434,197
Prepaid and Other Assets		280,258
Goodwill		832,306
Total Assets Acquired	$	4,721,034
Accounts Payable	$	843,817
Accrued Expense		223,909
Assumed debt		1,753,757
Total Liabilities Assumed	$	2,821,483
Equity Issuance	$	1,059,000
Net Assets Acquired	$	840,551
Acquisition transaction costs incurred were:	$	145,900

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Note 13 - Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended March 31, 2021
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other			Consolidated
Sales	$	8,765,099	$	15,228,905	$	-		$	23,994,004
Gross Profit		2,230,821		3,772,100		-			6,002,921
Operating Income		1,045,631		1,751,443		(471,614	)		2,325,460
Pretax Income		1,045,631		3,025,970		(402,642	)		3,668,959
Net Income		784,224		2,660,019		(300,826	)		3,143,417

	Three Months Ended March 31, 2020 (1)
	Commercial Air Handling		Industrial And Transportation Products		Corporate and Other		Consolidated
Sales	$	11,453,774	$	13,827,800	$	-	$	25,281,574
Gross Profit		3,047,801		3,160,342		-		6,208,143
Operating Income		1,619,769		1,414,604		103,776		3,138,149
Pretax Income		1,594,804		1,121,227		53,336		2,769,367
Net Income		1,196,102		839,496		39,972		2,075,570

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Note 3 - Accounts Receivable (Details Textual) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 17,009	$ 19,973

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Note 4 - Inventory - Inventory (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Raw materials and component parts	$ 3,914,652	$ 3,897,133
Work-in-process	3,963,814	3,449,252
Finished products	5,556,355	3,999,920
Total inventory	13,434,821	11,346,305
Less: inventory reserves	315,345	315,345
Net inventory	$ 13,119,476	$ 11,030,960

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Note 5 - Goodwill and Other Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Goodwill and Intangible Asset Impairment, Total	$ 0
Amortization of Intangible Assets, Total	$ 205,924	$ 179,340
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	1 year
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	15 years

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Note 5 - Goodwill and Other Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Other intangibles, gross	$ 12,033,000	$ 9,830,000
Less: accumulated amortization	2,477,615	2,271,691
Intangible assets, net	9,555,385	7,558,309
Customer-Related Intangible Assets [Member]
Other intangibles, gross	8,741,000	7,700,000
Noncompete Agreements [Member]
Other intangibles, gross	200,000	200,000
Trademarks [Member]
Other intangibles, gross	$ 3,092,000	$ 1,930,000

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Note 6 - Property, Plant and Equipment, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Depreciation, Total	$ 508,937	$ 434,684

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Note 6 - Property, Plant and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property Plant and Equipment, Gross	$ 22,915,129	$ 16,620,221
Less: accumulated depreciation	7,628,872	5,329,438
Property plant & equipment, net	15,286,257	11,290,783
Land [Member]
Property Plant and Equipment, Gross	228,872	228,872
Building and Building Improvements [Member]
Property Plant and Equipment, Gross	2,434,882	2,061,887
Machinery and Equipment [Member]
Property Plant and Equipment, Gross	$ 20,251,375	$ 14,329,462

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Note 7 - Investments in Equity Securities (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Equity Securities, FV-NI, Unrealized Gain	$ 233,644	$ 585,107
Equity Securities, FV-NI, Unrealized Loss	0	0
Equity Securities, FV-NI, Realized Gain	152,748	0
Equity Securities, FV-NI, Realized Loss	$ 0	$ 0

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Note 7 - Investments in Equity Securities - Schedule of Investments in Equity Securities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fair value of equity securities	$ 1,644,975	$ 1,534,400
Cost basis	826,224	949,293
Unrealized gain (loss) on equity securities	$ 818,751	$ 585,107

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Note 7 - Investments in Equity Securities - Schedule of Fair Value of Investments (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Balance	$ 1,644,975	$ 1,534,400	$ 1,534,400
Reported Value Measurement [Member]
Balance	1,644,975	1,534,400
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Balance	1,644,975	1,534,400
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Balance
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Balance

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Note 8 - Bank Debt (Details Textual) - USD ($)		3 Months Ended
	Jul. 05, 2018	Mar. 31, 2021	Mar. 02, 2021	Dec. 31, 2020	Dec. 30, 2019	Sep. 30, 2019
Line of Credit Facility, Maximum Borrowing Capacity		$ 13,200,000		$ 9,200,000
J P Morgan Chase Bank [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Commitment Fee Percentage	0.25%
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%
J P Morgan Chase Bank [Member] | Term Debt [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 30,000,000		$ 30,000,000	$ 20,000,000
Long-term Debt, Total			$ 6,000,000
Debt Instrument, Periodic Payment, Total		$ 111,111
J P Morgan Chase Bank [Member] | Term Debt [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
J P Morgan Chase Bank [Member] | Term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%

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Note 8 - Bank Debt - Summary of Loan Balances (Details) - Bank Debt [Member] - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Total Bank Debt	$ 19,196,543	$ 13,603,575
Less: current portion	1,333,333	1,333,333
Non-current bank debt	17,863,210	12,270,242
Less: unamortized debt costs	105,535	95,814
Net non-current bank debt	17,757,675	12,174,428
Term Debt [Member]
Total Bank Debt	2,444,445	2,777,778
Line of Credit [Member]
Total Bank Debt	$ 16,752,098	$ 10,825,797

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Note 9 - Notes Payable (Details Textual) - USD ($)			3 Months Ended
	Jul. 05, 2018	Jul. 01, 2018	Mar. 31, 2021	Mar. 31, 2020	Jan. 15, 2021	Jan. 14, 2021	Dec. 31, 2020	Jun. 04, 2020	Apr. 10, 2020	Jul. 01, 2016
Payments to Acquire Businesses, Gross			$ 7,081,277	$ 9,400,000
CAD Enterprises, Inc. [Member]
Business Combination, Consideration Transferred, Total		$ 21,000,000
Payments to Acquire Businesses, Gross		$ 12,000,000
Notes Payable [Member]
Notes Payable, Total			9,404,784				$ 9,692,033
Seller Note [Member] | CAD Enterprises, Inc. [Member]
Debt Instrument, Interest Rate, Stated Percentage		4.00%
Seller Note [Member] | Notes Payable [Member]
Debt Instrument, Face Amount			9,000,000				9,000,000
Notes Payable, Total			5,625,000				6,187,500
Paycheck Protection Program CARES Act [Member] | Notes Payable [Member]
Debt Instrument, Face Amount									$ 3,679,383
Paycheck Protection Program CARES Act [Member] | Notes Payable [Member] | Federal Hose [Member]
Debt Instrument, Face Amount							253,071	$ 253,071
Notes Payable, Total							253,071
Paycheck Protection Program CARES Act [Member] | Notes Payable [Member] | CAD Enterprises, Inc. [Member]
Debt Instrument, Face Amount							1,200,766	$ 1,200,766
Notes Payable, Total							1,200,766
First Francis [Member] | Related Party Notes, One [Member] | Notes Payable [Member]
Debt Instrument, Face Amount							2,000,000			$ 2,000,000
Notes Payable, Total							1,108,829
First Francis [Member] | Related Party Notes, Two [Member] | Notes Payable [Member]
Debt Instrument, Face Amount							2,768,662			$ 2,768,662
Notes Payable, Total							941,867
First Francis [Member] | Related Party Notes [Member] | Notes Payable [Member]
Debt Instrument, Interest Rate, Stated Percentage	6.25%
Line of Credit Facility, Interest Rate During Period	4.00%
Notes Payable, Total						$ 2,077,384
First Francis [Member] | Related Party Notes [Member] | Notes Payable [Member] | Komtek Forge [Member]
Notes Payable, Total						$ 1,702,400
First Francis [Member] | Related Party Notes Three [Member] | Notes Payable [Member]
Debt Instrument, Face Amount			3,779,784
Debt Instrument, Interest Rate, Stated Percentage					6.25%
Notes Payable, Total			$ 3,779,784		$ 3,779,784

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Note 9 - Notes Payable - Notes Payable (Details) - USD ($)	Mar. 31, 2021	Jan. 15, 2021	Dec. 31, 2020
Less current portion	$ 2,915,213		$ 2,782,479
Notes payable – non-current portion	6,489,571		5,455,717
Paycheck Protection Program CARES Act [Member]
Notes payable – non-current portion			1,453,837
Notes Payable [Member]
Notes payable	9,404,784		9,692,033
Less current portion	2,915,213		2,782,479
Notes payable – non-current portion	6,489,571		6,909,554
Notes Payable [Member] | Paycheck Protection Program CARES Act [Member] | Federal Hose [Member]
Notes payable			253,071
Notes Payable [Member] | Paycheck Protection Program CARES Act [Member] | CAD Enterprises, Inc. [Member]
Notes payable			1,200,766
Notes Payable [Member] | Seller Note [Member]
Notes payable	5,625,000		6,187,500
Notes Payable [Member] | First Francis [Member] | Related Party Notes, One [Member]
Notes payable			1,108,829
Notes Payable [Member] | First Francis [Member] | Related Party Notes, Two [Member]
Notes payable			941,867
Notes Payable [Member] | First Francis [Member] | Related Party Notes Three [Member]
Notes payable	$ 3,779,784	$ 3,779,784

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Note 9 - Notes Payable - Notes Payable (Details) (Parentheticals) - Notes Payable [Member] - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Jun. 04, 2020	Apr. 10, 2020	Jul. 01, 2016
Paycheck Protection Program CARES Act [Member]
Notes payable, face value				$ 3,679,383
Paycheck Protection Program CARES Act [Member] | Federal Hose [Member]
Notes payable, face value		$ 253,071	$ 253,071
Paycheck Protection Program CARES Act [Member] | CAD Enterprises, Inc. [Member]
Notes payable, face value		1,200,766	$ 1,200,766
Seller Note [Member]
Notes payable, face value	9,000,000	9,000,000
First Francis [Member] | Related Party Notes, One [Member]
Notes payable, face value		2,000,000			$ 2,000,000
First Francis [Member] | Related Party Notes, Two [Member]
Notes payable, face value		2,768,662			$ 2,768,662
First Francis [Member] | Related Party Notes Three [Member]
Notes payable, face value	$ 3,779,784

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Note 10 - Leases (Details Textual)	3 Months Ended
	Mar. 31, 2021
Lessee, Operating and Finance Lease, Renewal Term (Year)	10 years
Minimum [Member]
Operating and Finance Lease, Remaining Term (Year)	2 years
Maximum [Member]
Operating and Finance Lease, Remaining Term (Year)	15 years

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Note 10 - Leases - Lease Assets and Liabilities (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Operating lease right-of-use assets, net	$ 8,565,973	$ 8,856,820
Operating Leases (in years) (Year)	9 years	9 years
Operating Leases	5.00%	5.00%
Other Current Liabilities [Member]
Other current liabilities	$ 1,158,633	$ 1,136,300
Operating Lease Liabilities [Member]
Operating lease liabilities	7,638,786	7,901,357
Other Current Liabilities and Operating Lease Liabilities [Member]
Total operating lease liabilities	$ 8,797,419	$ 9,037,657

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Note 11 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income	$ 3,143,417	$ 2,075,570
Weighted average shares of common stock outstanding - Basic (in shares)	3,392,839	3,311,477
Earnings Per Share - Basic (in dollars per share)	$ 0.93	$ 0.63
Warrants, Options and Convertible Notes (in shares)	881	1,680
Weighted average shares of common stock -Diluted (in shares)	3,393,720	3,313,157
Earnings Per Share - Diluted (in dollars per share)	$ 0.93	$ 0.63

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Note 12 - Acquisitions (Details Textual) - USD ($)			3 Months Ended
	Mar. 01, 2021	Jan. 15, 2021	Mar. 31, 2021	Mar. 31, 2020
Payments to Acquire Businesses, Gross			$ 7,081,277	$ 9,400,000
Komtek Forge Acquisition [Member]
Business Combination, Consideration Transferred, Total		$ 3,600,000
Business Combination, Consideration Transferred, Liabilities Incurred		$ 1,702,000
Komtek Forge Acquisition [Member] | Common Class A [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)		60,000
Acquisition of Global Tek Manufacturing LLC [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	61,475
Business Combination, Consideration Transferred, Liabilities Incurred	$ 1,600,000
Payments to Acquire Businesses, Gross	4,900,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	1,500,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Annual Value, High	$ 750,000

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Note 12 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Komtek Forge (Details) - USD ($)	Jan. 15, 2021	Mar. 31, 2021	Dec. 31, 2020
Goodwill		$ 13,978,426	$ 11,505,852
Komtek Forge Acquisition [Member]
Cash	$ 75,701
Accounts Receivable	1,502,713
Inventory	1,595,859
Fixed Assets	434,197
Prepaid and Other Assets	280,258
Goodwill	832,306
Total Assets Acquired	4,721,034
Accounts Payable	843,817
Accrued Expense	223,909
Assumed debt	1,753,757
Total Liabilities Assumed	2,821,483
Equity Issuance	1,059,000
Net Assets Acquired	840,551
Acquisition transaction costs incurred were:	$ 145,900

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Note 12 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Global-Tek-Manufacturity, LLC (Details) - USD ($)	Mar. 01, 2021	Mar. 31, 2021	Dec. 31, 2020
Goodwill		$ 13,978,426	$ 11,505,852
Acquisition of Global Tek Manufacturing LLC [Member]
Accounts Receivable	$ 1,058,459
Inventory	173,202
Fixed Assets	3,243,031
Prepaid and Other Assets	1,036
Intangibles Assets	2,203,000
Goodwill	1,640,268
Total Assets Acquired	8,318,996
Accounts Payable	473,119
Accrued Payroll and Other Expense	29,450
Contingent Liability	1,500,000
Total Liabilities Assumed	2,002,569
Net Assets Acquired	6,316,427
Acquisition transaction costs incurred were:	$ 181,133

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Note 13 - Segment and Related Information (Details Textual)	Jan. 01, 2021
Number of Reportable Segments	2

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Note 13 - Segment and Related Information - Information by Industry Segment (Details) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020		Dec. 31, 2020
Sales	$ 23,994,004	$ 25,281,574
Gross Profit	6,002,921	6,208,143
Operating Income	2,325,460	3,138,149
Pretax Income	3,668,959	2,769,367
Net Income	3,143,417	2,075,570		$ 5,839,387
Commercial Air Handling [Member]
Sales	8,765,099	11,453,774	[1]
Gross Profit	2,230,821	3,047,801	[1]
Operating Income	1,045,631	1,619,769	[1]
Pretax Income	1,045,631	1,594,804	[1]
Net Income	784,224	1,196,102	[1]
Aerospace [Member]
Sales	15,228,905	13,827,800	[1]
Gross Profit	3,772,100	3,160,342	[1]
Operating Income	1,751,443	1,414,604	[1]
Pretax Income	3,025,970	1,121,227	[1]
Net Income	2,660,019	839,496	[1]
Industrial Hose [Member]
Sales			[1]
Gross Profit			[1]
Operating Income	(471,614)	103,776	[1]
Pretax Income	(402,642)	53,336	[1]
Net Income	(300,826)	39,972	[1]
Corporate and Other [Member]
Sales	23,994,004	25,281,574	[1]
Gross Profit	6,002,921	6,208,143	[1]
Operating Income	2,325,460	3,138,149	[1]
Pretax Income	3,668,959	2,769,367	[1]
Net Income	$ 3,143,417	$ 2,075,570	[1]

[1] March 31, 2020 segment information has been restated to reflect the change in reportable segments.