REVENUE (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of significant changes in the contract assets

Significant changes in the contract assets balance during the three and six months ended June 30, 2018 was as follows (in thousands):

Six Months Ended June 30, 2018
Outstanding at January 1, 2018	$	6,459
Increase (decrease) attributed to:
Transferred to receivables from contract assets recognized	(5,648		)
Product transferred over time	5,736

Outstanding at June 30, 2018	$	6,547

Schedule of net sales by market

The following tables summarize our net sales by market for the three and six months ended June 30, 2018 (in thousands):

	Three Months Ended June 30, 2018
	Product/ Service Transferred Over Time		Product Transferred at Point in Time		Noncash Consideration		Total Net Sales by Market
Aerospace and Defense	$	4,001	$	72	$	196	$	4,269
Medical	11,934		87		544		12,565
Industrial	10,023		1,206		475		11,704

Total net sales	$	25,958	$	1,365	$	1,215	$	28,538

	Six Months Ended June 30, 2018
	Product/ Service Transferred Over Time		Product Transferred at Point in Time		Noncash Consideration		Total Net Sales by Market
Aerospace and Defense	$	8,717	$	120	$	393	$	9,230
Medical	21,201		569		945		22,715
Industrial	20,089		2,049		902		23,040

Total net sales	$	50,007	$	2,738	$	2,240	$	54,985

Schedule of consolidated statement of operations and comprehensive loss, balance sheet and cash flows, to the pro-forma amounts had the previous guidance been in effect

The following table compares the reported condensed consolidated statement of operations and comprehensive loss, balance sheet and cash flows, as of and for the three and six months ended June 30, 2018, to the pro-forma amounts had the previous guidance been in effect (in thousands):

	Three Months Ended June 30, 2018				Six Months Ended June 30, 2018
	As Reported		Pro forma as if the previous accounting guidance was in effect		As Reported			Pro forma as if the previous accounting guidance was in effect
Condensed Consolidated Statement of Operations
Net Sales	$	28,538	$	26,928	$	54,985		$	52,658
Cost of Goods Sold	24,721		23,106		48,140			45,836

Gross Profit	3,817		3,822		6,845			6,822

Income from Operations	734		739		615			592

Income Before Income Taxes	525		530		233			210

Income Tax Expense	135		135		235			235


Net Income (Loss)	$	390	$	395	$	(2	)	$	(25	)


Net Income (Loss) Per Common Share - Basic and Diluted	$	0.14	$	0.15	$	—		$	(0.01	)

	As of June 30, 2018
	As Reported		Pro forma as if the previous accounting guidance was in effect
Condensed Consolidated Balance Sheet
Assets
Inventories	$	13,969	$	19,111
Contract Assets	$	6,547	$	—

Shareholders’ Equity
Retained Earnings	$	5,268	$	3,864

	Six Months Ended June 30, 2018
	As Reported			Pro forma as if the previous accounting guidance was in effect
Condensed Consolidated Statement of Cash Flows
Net Loss	$	(2	)	$	(25	)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities
Change in Current Operating Items
Inventories	(594		)	658
Contract Asset	(88		)	—

Net Cash Provided by Operating Activities	$	2,741		$	2,741