13D Filing: Wynnefield Capital and Precision Aerospace Components Inc. (PAOS)

Beneficial
ownership of the Common Stock shown on the cover pages of and set forth elsewhere in this Schedule 13D for each member of the
Wynnefield Reporting Persons assumes that they have not formed a group for purposes of Section 13(d)(3) under the Exchange
Act, and Rule 13d-5(b)(1) promulgated thereunder. If the members of the Wynnefield Reporting Persons were deemed to have
formed a group for purposes of Section 13(d)(3) and Rule 13d-5(b)(1), the group would be deemed to own beneficially (and may
be deemed to have shared voting and dispositive power over) in the aggregate 25,000 shares of Common Stock, constituting
approximately 8.7% of the outstanding shares of Common Stock. The percentage of shares of Common Stock reported as being
beneficially owned by the Wynnefield Reporting Persons is based upon 286,636 shares outstanding as of August 3, 2017, which
number is based on information received from the Issuer.

The filing of this
Schedule 13D and any future amendment by the Wynnefield Reporting Persons, and the inclusion of information herein and therein
with respect to WCM, WCI and Messrs. Obus and Landes, shall not be considered an admission that any of such persons, for the purpose
of Section 16(b) of the Exchange Act, are the beneficial owners of any shares in which such persons do not have a pecuniary interest.
Each of WCM, WCI and Messrs. Obus and Landes disclaims any beneficial ownership of the shares covered by this Schedule 13D.

The trading dates,
number of Shares purchased and price per share for all transactions in the Shares by the Reporting Persons in the past 60 days
are set forth below:

(d) and (e). Not Applicable.

Item 6.  Contracts, Arrangements,
Understandings or Relationships With Respect to Securities of the Issuer.

Each of the Reporting
Persons are a party to a Joint Filing Agreement, dated as of August 3, 2017 (the “13D Joint Filing Agreement”), pursuant
to which the parties agreed to jointly file this Schedule 13D and any and all amendments and supplements thereto with the Commission.
The 13D Joint Filing Agreement is filed herewith as Exhibit 1 and is incorporated herein by reference in its entirety in
this response to Item 6.