REVENUE (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of significant changes in the contract assets

Significant changes in the contract assets balance during the nine months ended September 30, 2018 was as follows (in thousands):

Nine Months Ended September 30, 2018
Outstanding at January 1, 2018	$	6,459
Increase (decrease) attributed to:
Transferred to receivables from contract assets recognized	(5,727		)
Product transferred over time	6,344

Outstanding at September 30, 2018	$	7,076

Schedule of net sales by market

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

	Three Months Ended September 30, 2018
	Product/ Service Transferred Over Time		Product Transferred at Point in Time		Noncash Consideration		Total Net Sales by Market
Aerospace and Defense	$	3,931	$	50	$	203	$	4,184
Medical	13,461		151		668		14,280
Industrial	9,486		1,116		492		11,094

Total net sales	$	26,878	$	1,317	$	1,363	$	29,558

	Nine Months Ended September 30, 2018
	Product/ Service Transferred Over Time		Product Transferred at Point in Time		Noncash Consideration		Total Net Sales by Market
Aerospace and Defense	$	12,675	$	170	$	599	$	13,444
Medical	34,513		720		1,605		36,838
Industrial	29,698		3,165		1,398		34,261

Total net sales	$	76,886	$	4,055	$	3,602	$	84,543

Schedule of consolidated statement of operations and comprehensive income, 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 income, balance sheets and cash flows, as of and for the three and nine months ended September 30, 2018, to the pro-forma amounts had the previous guidance been in effect (in thousands):

	Three Months Ended September 30, 2018				Nine Months Ended September 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	$	29,558	$	27,665	$	84,543	$	80,323
Cost of Goods Sold	26,171		24,454		74,311		70,291

Gross Profit	3,387		3,211		10,232		10,032

Income from Operations	649		472		1,263		1,063

Income Before Income Taxes	479		303		712		512

Income Tax Expense	115		115		350		350


Net Income	$	364	$	188	$	362	$	162


Net Income Per Common Share - Diluted	$	0.14	$	0.07	$	0.13	$	0.06

	As of September 30, 2018
	As Reported		Pro forma as if the previous accounting guidance was in effect
Condensed Consolidated Balance Sheet
Assets
Inventories	$	15,236	$	20,732
Contract Assets	$	7,076	$	—

Shareholders’ Equity
Retained Earnings	$	5,632	$	4,051

	Nine Months Ended September 30, 2018
	As Reported			Pro forma as if the previous accounting guidance was in effect
Condensed Consolidated Statement of Cash Flows
Net Income	$	362		$	162
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
Change in Current Operating Items
Inventories	(1,959		)	(2,376		)
Contract Asset	(617		)	—

Net Cash Provided by Operating Activities	$	2,564		$	2,564