Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Entity Registrant Name | TECHPRECISION CORP | |
Title of 12(b) Security | None | |
Entity Address, State or Province | MA | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,398,662 | |
Entity Central Index Key | 0001328792 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Trading Symbol | TPCS |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,802,039 | $ 930,856 |
Accounts receivable, net | 916,529 | 990,300 |
Contract assets | 5,197,463 | 4,504,621 |
Raw materials | 558,357 | 561,572 |
Work-in-process | 739,090 | 656,041 |
Other current assets | 418,890 | 606,151 |
Total current assets | 9,632,368 | 8,249,541 |
Property, plant and equipment, net | 4,055,392 | 4,182,861 |
Deferred income taxes | 2,152,840 | 2,115,480 |
Other noncurrent assets, net | 21,369 | 32,600 |
Total assets | 15,861,969 | 14,580,482 |
Current liabilities: | ||
Accounts payable | 555,979 | 185,065 |
Accrued expenses | 1,528,531 | 1,554,524 |
Contract liabilities | 516,337 | 805,049 |
Current portion of long-term debt | 621,251 | 109,829 |
Total current liabilities | 3,222,098 | 2,654,467 |
Long-term debt | 3,231,247 | 2,456,560 |
Commitments and contingent liabilities (Note 13) | ||
Stockholders' Equity: | ||
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 29,398,662 and 29,354,594 shares issued and outstanding, at June 30, 2020 and March 31, 2020 | 2,939 | 2,935 |
Additional paid in capital | 8,848,558 | 8,793,062 |
Accumulated other comprehensive income | 21,591 | 21,688 |
Retained earnings | 535,536 | 651,770 |
Total stockholders' equity | 9,408,624 | 9,469,455 |
Total liabilities and stockholders' equity | $ 15,861,969 | $ 14,580,482 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 29,398,662 | 29,354,594 |
Common stock, shares outstanding | 29,398,662 | 29,354,594 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | ||
Net sales | $ 3,282,525 | $ 4,334,268 |
Cost of sales | 2,585,511 | 3,224,767 |
Gross profit | 697,014 | 1,109,501 |
Selling, general and administrative | 793,362 | 741,413 |
(Loss) income from operations | (96,348) | 368,088 |
Other income | 652 | 19,430 |
Interest expense | (57,898) | (76,523) |
Total other expense, net | (57,246) | (57,093) |
(Loss) income before income taxes | (153,594) | 310,995 |
Income tax (benefit) expense | (37,360) | 90,218 |
Net (loss) income | (116,234) | 220,777 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (97) | (179) |
Other comprehensive loss, net of tax | (97) | (179) |
Comprehensive (loss) income | $ (116,331) | $ 220,598 |
Net (loss) income per share - basic | $ (0.01) | $ 0.01 |
Net (loss) income per share - diluted | $ (0.01) | $ 0.01 |
Weighted average number of shares outstanding - basic | 29,359,921 | 29,253,495 |
Weighted average number of shares outstanding - diluted | 29,359,921 | 30,711,007 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings (Accumulated Deficit) [Member] | Total |
Balance at Mar. 31, 2019 | $ 2,923 | $ 8,693,106 | $ 21,940 | $ 993,339 | $ 9,711,308 |
Balance (in shares) at Mar. 31, 2019 | 29,234,594 | ||||
Non-vested restricted stock | 30,625 | 30,625 | |||
Shares issued under LTIP | $ 2 | 7,198 | 7,200 | ||
Shares issued under LTIP (in shares) | 20,000 | ||||
Net (loss) income | 220,777 | 220,777 | |||
Foreign currency translation adjustment | (179) | (179) | |||
Balance at Jun. 30, 2019 | $ 2,925 | 8,730,929 | 21,761 | 1,214,116 | 9,969,731 |
Balance (in shares) at Jun. 30, 2019 | 29,254,594 | ||||
Balance at Mar. 31, 2020 | $ 2,935 | 8,793,062 | 21,688 | 651,770 | 9,469,455 |
Balance (in shares) at Mar. 31, 2020 | 29,354,594 | ||||
Non-vested restricted stock | 55,500 | 55,500 | |||
Shares issued under LTIP | $ 4 | (4) | |||
Shares issued under LTIP (in shares) | 44,068 | ||||
Net (loss) income | $ 0 | 0 | 0 | (116,234) | (116,234) |
Foreign currency translation adjustment | (97) | (97) | |||
Balance at Jun. 30, 2020 | $ 2,939 | $ 8,848,558 | $ 21,591 | $ 535,536 | $ 9,408,624 |
Balance (in shares) at Jun. 30, 2020 | 29,398,662 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (116,234) | $ 220,777 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation | 169,237 | 190,005 | |
Amortization of debt issue costs | 15,141 | 10,741 | |
Stock based compensation expense | 55,500 | 30,625 | |
Change in contract loss provision | (64,699) | 120,393 | |
Deferred income taxes | (37,360) | 90,218 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 73,771 | 144,381 | |
Contract assets | (692,842) | 1,517,221 | |
Inventories | (79,834) | 38,517 | |
Other current assets | 187,261 | 78,219 | |
Accounts payable | 370,914 | (342,639) | |
Accrued expenses | 38,614 | 5,915 | |
Contract liabilities | (288,712) | (401,097) | |
Net cash (used in) provided by operating activities | (369,243) | 1,703,276 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (41,768) | (10,200) | |
Net cash used in investing activities | (41,768) | (10,200) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Debt issue costs | (8,282) | 0 | |
Proceeds from payroll protection program | 1,317,100 | 0 | |
Proceeds from revolver loan | 1,000,000 | 0 | |
Repayment of revolver loan | (1,000,000) | 0 | |
Repayment of long-term debt | (26,618) | (199,533) | |
Net cash provided by (used in) financing activities | 1,282,200 | (199,533) | |
Effect of exchange rate on cash and cash equivalents | (6) | 164 | |
Net increase in cash and cash equivalents | 871,183 | 1,493,707 | |
Cash and cash equivalents, beginning of period | 930,856 | 2,036,646 | $ 2,036,646 |
Cash and cash equivalents, end of period | 1,802,039 | 3,530,353 | $ 930,856 |
Cash paid during the year for: | |||
Interest | 40,024 | 65,723 | |
Income taxes | $ 0 | $ 0 | |
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS: | |||
Options exercised to purchase common stock | 150,000 | 20,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2020 | |
DESCRIPTION OF BUSINESS | |
DESCRIPTION OF BUSINESS | NOTE 1 - DESCRIPTION OF BUSINESS TechPrecision Corporation, or TechPrecision, is a Delaware corporation organized in February 2005 under the name Lounsberry Holdings II, Inc. The name was changed to TechPrecision Corporation on March 6, 2006. TechPrecision is the parent company of Ranor, Inc., or Ranor, a Delaware corporation, and Wuxi Critical Mechanical Components Co., Ltd., or WCMC, a wholly foreign owned enterprise. WCMC has no customers or operations, and we have initiated a plan of termination to legally dissolve this subsidiary. TechPrecision, WCMC and Ranor are collectively referred to as the “Company”, “we”, “us” or “our”. We manufacture large-scale metal fabricated and machined precision components and equipment. These products are used in a variety of markets including defense and aerospace, nuclear, medical, and precision industrial. We consider our business to consist of one segment - metal fabrication and precision machining. All of our operations and customers are located in the United States. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of June 30, 2020 and March 31, 2020, the condensed consolidated statements of operations and comprehensive (loss) income and stockholders' equity for the three months ended These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, or the 2020 Form 10-K, filed with the SEC on June 11, 2020. Use of Estimates in the Preparation of Financial Statements - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and revenues and expenses during the reported period. We continually evaluate our estimates, including those related to contract accounting, accounts receivable, inventories, the recovery of long-lived assets, income taxes and the valuation of equity transactions. We base our estimates on historical and current experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. The COVID-19 pandemic has negatively affected certain customers, suppliers and their labor force. For example, travel restrictions in connection with the pandemic have delayed inspections, deliveries and impacted some supply chain providers. The future financial impact of the COVID-19 pandemic cannot be reasonably estimated at this time as its impact depends on future developments, which are highly uncertain and cannot be predicted. The directives imposed by federal, state and local governments as a result of the COVID-19 pandemic did not impair our ability to maintain operations during the first quarter of fiscal 2021 as the Company was designated an essential service. Our estimates at the end of the first quarter assumed no material impact from the disruptions caused by COVID-19. |
ACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE | 3 Months Ended |
Jun. 30, 2020 | |
ACCOUNTING STANDARDS UPDATE | |
ACCOUNTING STANDARDS UPDATE | NOTE 3 - ACCOUNTING STANDARDS UPDATE New Accounting Standards Recently Adopted On April 1, 2020 we adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements in Topic 820 by removing, modifying or adding certain disclosures. The amendments for changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are applied prospectively. All other amendments are applied retrospectively to all periods presented upon their effective date. The adoption did not have a significant impact on our consolidated financial statement disclosures. Issued Standards Not Yet Adopted In December, 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, expected to reduce cost and complexity related to the accounting for income taxes. This ASU removes specific exceptions to the general principles in Topic 740 under U.S. GAAP and removes the limitation on the tax benefit recognized on pre-tax losses in interim periods. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company is currently evaluating the amendments in this update to determine the impact it may have on its financial statements and disclosures. |
REVENUE
REVENUE | 3 Months Ended |
Jun. 30, 2020 | |
REVENUE | |
REVENUE | NOTE 4 - REVENUE The Company generates its revenues primarily from performance obligations completed under contracts with customers in two main market sectors: defense and precision industrial. The period over which the Company performs ranges from three to thirty-six months. The Company invoices and receives related payments based upon performance progress not less frequently than monthly. Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type sales only. The following table presents net sales on a disaggregated basis by market and contract type: Net Sales by market Defense Industrial Totals Three months ended June 30, 2020 $ 3,203,590 $ 78,935 $ 3,282,525 Three months ended June 30, 2019 $ 3,409,291 $ 924,977 $ 4,334,268 Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2020 $ 3,027,897 254,628 $ 3,282,525 Three months ended June 30, 2019 $ 3,052,938 1,281,330 $ 4,334,268 As of June 30, 2020, the Company had $14.4 million of remaining performance obligations, of which $11.3 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue within the next three to thirty-six months. We have been dependent in each year on a small number of customers who generate a significant portion of our business, and these customers can change from year to year. The following table sets forth information as to net sales from customers who accounted for more than 10% of our net sales for the three months ended: June 30, 2020 June 30, 2019 Customer Amount Percent Amount Percent A $ 1,014,655 31 % $ * * % B $ 654,187 20 % $ * * % C $ 570,780 17 % $ 1,050,577 24 % D $ 390,512 12 % $ * * % E $ * * % $ 1,255,055 29 % F $ * * % $ 618,019 14 % G $ * * % $ 549,192 13 % *Less than 10% of total On our condensed consolidated balance sheet, contract assets and contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In fiscal 2021, we recognized revenue of $0.4 million related to our contract liabilities at March 31, 2020. At June 30, 2020 contract assets consisted of the following: Progress Contract assets Unbilled payments Total June 30, 2020 $ 9,104,826 $ (3,907,363) $ 5,197,463 March 31, 2020 $ 10,635,588 $ (6,130,967) $ 4,504,621 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2020 | |
INCOME TAXES | |
INCOME TAXES | NOTE 5 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes . The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. The income tax benefit was $37,360 for the three months ended June 30, 2020 and the provision for income taxes was $90,218 for the three months ended June 30, 2019. The Company's estimated effective tax rates for the three months ended June 30, 2020 and 2019 was 24.3% and 29.0%, respectively. The valuation allowance on deferred tax assets was approximately $1.8 million at June 30, 2020. We believe that it is more likely than not that the benefit from certain state and foreign net operating losses, or NOL, carryforwards and other deferred tax assets will not be realized. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, the Company could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in the Company’s effective tax rate. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jun. 30, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 6 - EARNINGS PER SHARE Basic earnings per share is computed by dividing reported earnings available to stockholders by the weighted average number of shares outstanding. Diluted earnings per share includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260. June 30, June 30, 2020 2019 Basic EPS Net (loss) income $ (116,234) $ 220,777 Weighted average shares 29,359,921 29,253,495 Basic (loss) earnings per share $ (0.01) $ 0.01 Diluted EPS Net (loss) income $ (116,234) $ 220,777 Dilutive effect of stock options — 1,457,512 Diluted weighted average shares 29,359,921 30,711,007 Diluted (loss) earnings per share $ (0.01) $ 0.01 All potential common stock equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the three months ended June 30, 2020, there were 2,816,000 of potentially anti-dilutive stock options, none of which were included in the earnings per share calculations above. For the three months ended June 30, 2019 there were 98,000 of potential common stock equivalents that were out-of-the-money and not included in the above earnings per share calculations. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2020 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 7 – STOCK-BASED COMPENSATION Our board of directors approved the 2016 TechPrecision Equity Incentive Plan, or the 2016 Plan, on November 10, 2016. Our stockholders approved the 2016 Plan at the Company’s Annual Meeting of Stockholders on December 8, 2016. The 2016 Plan succeeds the 2006 Plan and applies to awards granted after the 2016 Plan’s adoption by the Company’s stockholders. The 2016 Plan provides for a share reserve of 5,000,000 shares of common stock. The 2016 Plan authorizes the award of incentive and non-qualified stock options, restricted stock awards, restricted stock units, and performance awards to employees, directors, consultants, and other individuals who provide services to TechPrecision or its affiliates. At June 30, 2020 and March 31, 2020, there were 1,474,000 shares available for grant under the 2016 Plan. The following table summarizes information about options granted during the two most recently completed periods: Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2019 2,938,000 $ 0.416 $ 1,869,200 6.74 Exercised (20,000) 0.360 Canceled (2,000) Outstanding at 3/31/2020 2,916,000 $ 0.415 $ 2,546,800 Exercised (150,000) 0.800 Outstanding at 6/30/2020 2,766,000 $ 0.394 $ 2,289,400 Vested or expected to vest at 6/30/2020 2,766,000 $ 0.394 $ 2,289,400 Exercisable and vested at 6/30/2020 2,766,000 $ 0.394 $ 2,289,400 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on the last trading day of the first quarter of fiscal 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2020. This amount changes based on the fair market value of the Company’s common stock. At June 30, 2020, there was no remaining unrecognized compensation cost related to stock options. The maximum contractual term is ten years for option grants. Other information relating to stock options outstanding at June 30, 2020 is as follows: Weighted Average Remaining Weighted Weighted Options Contractual Average Options Average Range of Exercise Prices: Outstanding Term Exercise Price Exercisable Exercise Price $0.01‑$1.00 2,670,000 $ 2,670,000 $ $1.01‑$1.96 96,000 $ 96,000 $ Totals 2,766,000 2,766,000 Restricted Stock Awards On March 16, 2020 we granted a total of 100,000 shares of restricted stock under the 2016 Plan to the board of directors. The stock-based compensation expense of $111,000 for service-based restricted stock was measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. The shares of restricted stock fully vest and cease to be subject to forfeiture on September 1, 2020, or approximately six months following the grant date. Each grantee must be serving as a director on the vesting date and must have been continuously serving in such capacity from the grant date through the vesting date for the shares of restricted stock to vest. Prior to the vesting date, the grantee is not permitted to sell, transfer, pledge, assign or otherwise encumber the shares of restricted stock and if the grantee's service with the Company terminates prior to the vesting date, the grantee's restricted stock will be forfeited automatically. Total recognized compensation cost related to the restricted stock award was $55,500 for the three months ended June 30, 2020. At June 30, 2020 there was $46,250 of total unrecognized compensation cost related to the restricted stock awards. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 3 Months Ended |
Jun. 30, 2020 | |
CONCENTRATION OF CREDIT RISK | |
CONCENTRATION OF CREDIT RISK | NOTE 8 - CONCENTRATION OF CREDIT RISK We maintain bank account balances, which, at times, may exceed insured limits. We have not experienced any losses with these accounts and believe that we are not exposed to any significant credit risk on cash. At June 30, 2020, there were trade accounts receivable balances outstanding from four customers comprising 91% of the total trade receivables balance. The following table sets forth information as to trade accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of: June 30, 2020 March 31, 2020 Customer Dollars Percent Dollars Percent A $ 349,460 38 % $ * * B $ 258,872 28 % $ * * C $ 140,599 15 % $ * * D $ 93,600 10 % $ 254,637 26 % E $ * * $ 365,636 37 % F $ * * $ 123,000 12 % * less than 10% of total |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Jun. 30, 2020 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | NOTE 9 - OTHER CURRENT ASSETS June 30, 2020 March 31, 2020 Payments advanced to suppliers $ 131,643 $ 272,070 Prepaid insurance 194,649 250,073 Prepaid subscriptions 20,273 14,440 Refundable AMT credits 22,748 22,748 Employee advances 24,079 18,173 Other 25,498 28,647 Total $ 418,890 $ 606,151 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Jun. 30, 2020 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | NOTE 10 - ACCRUED EXPENSES June 30, 2020 March 31, 2020 Provision for claims settlement $ 495,000 $ 495,000 Accrued compensation 507,064 383,555 Provision for contract losses 220,781 285,480 Accrued professional fees 212,805 279,657 Accrued project costs 55,746 76,059 Other 37,135 34,773 Total $ 1,528,531 $ 1,554,524 Accrued compensation includes amounts for executive bonuses, payroll and vacation and holiday pay. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in the provision are recorded in cost of sales. Accrued project costs are estimates for certain project expenses during the reporting period. |
DEBT
DEBT | 3 Months Ended |
Jun. 30, 2020 | |
DEBT | |
DEBT | NOTE 11 – DEBT Total debt included the following as of: June 30, 2020 March 31, 2020 Berkshire Term Loan at 5.21% interest, due January 2022 $ 2,540,646 $ 2,564,389 Berkshire SBA PPP loan at 1% interest, due May 2022 1,317,100 — Finance lease obligations at 8% interest, due January 2022 19,585 22,460 Total debt $ 3,877,331 $ 2,586,849 Less: debt issue costs unamortized $ 24,833 $ 20,460 Total debt, net $ 3,852,498 $ 2,566,389 Less: Current portion of long-term debt $ 621,251 $ 109,829 Total long-term debt, net $ 3,231,247 $ 2,456,560 Small Business Administration Loan On May 8, 2020, the Company, through its wholly owned subsidiary Ranor, issued a promissory note, or the Note, evidencing an unsecured loan in the amount of $1,317,100 made to Ranor under the Paycheck Protection Program, or the PPP. The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and is administered by the U.S. Small Business Administration, or the SBA. The loan to Ranor was made through Berkshire Bank. The Note provides for an interest rate of 1.00% per year and matures two years after the issuance date. Principal and accrued interest are payable monthly in equal installments commencing on the date that is six months after the date funds are first disbursed on the loan and continuing through the maturity date, unless the Note is forgiven as described below. To be available for loan forgiveness, the Note may only be used for payroll costs, costs related to certain group health care benefits and insurance premiums, rent payments, utility payments, mortgage interest payments and interest payments on any other debt obligations that existed before February 15, 2020. The Note may be prepaid at any time prior to maturity with no prepayment penalties and contains events of default and other conditions customary for a Note of this type. For example, the Note contains events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or Berkshire Bank, or breaching the terms of the loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or the SBA or Berkshire Bank filing suit and obtaining judgment against the Company and/or Ranor. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs, certain group health care benefits and insurance premiums, and any payments of mortgage interest, rent, and utilities. The terms of any forgiveness may also be subject to further requirements in any regulations and guidelines the SBA may adopt. While the Company currently believes that its use of the Note proceeds will meet the conditions for forgiveness under the PPP, no assurance is provided that the Company will obtain forgiveness of the Note in whole or in part. Berkshire Term Loan Facility On December 21, 2016, TechPrecision, through Ranor, closed on a Loan Agreement, or the Berkshire Loan Agreement, with Berkshire Bank. Pursuant to the Berkshire Loan Agreement, Berkshire Bank made a term loan to Ranor in the amount of $2,850,000, or the Term Loan, and made available to Ranor a revolving line of credit under the Revolver Loan, or together, the Berkshire Loans. The Berkshire Loans are secured by a first lien on all personal and real property of Ranor. On December 23, 2019, TechPrecision, through Ranor, entered into a Third Modification to Loan Agreement , or the Third Modification, and an Amended and Restated Promissory Note with Berkshire Bank. Under the Third Modification, Ranor and Berkshire agreed to increase the maximum principal amount available under the Revolver Loan from $1,000,000 to $3,000,000. Advances under the Revolver Loan are now subject to the lesser of (a) $3,000,000 or (b) the sum of (i) 80% of eligible accounts receivable, plus (ii) the lesser of (x) 25% of Eligible Raw Material Inventory, and (y) $250,000, plus (iii) 50% of the Appraised Value of the Eligible Equipment. The loan agreement is available for refinancing existing indebtedness and for working capital and general corporate purposes. Additionally, the parties agreed to lower the interest rate on advances made under the Revolver Loan at a variable rate equal to the one-month LIBOR plus 225 basis points. The Third Modification contains customary LIBOR replacement provisions. The Company borrowed $1.0 million under the Revolver Loan on April 3, 2020 and repaid principal of $1.0 million on June 30, 2020. There were no borrowed amounts outstanding under the Revolver Loan at June 30, 2020 and March 31, 2020. Interest payments on advances made under the Revolver Loan during the three months ended June 30, 2020 were $5,986 at a weighted average interest rate of 2.76%. Unused borrowing capacity at June 30, 2020 was $3.0 million, and the maturity date of the Revolver Loan is December 20, 2020. The Berkshire Loan Agreement contains a covenant whereby the Company is required to maintain a debt service coverage ratio, or DSCR, of at least 1.2 to 1.0 during the term of the Berkshire Loans. The DSCR is measured at the end of each fiscal quarter of the Company. The Company was in compliance with all of the financial covenants at June 30, 2020 and March 31, 2020. The Berkshire Loan Agreement also contains covenants to cause its balance sheet leverage to be less than or equal to 2.50 to 1.00 for each fiscal year end, and require Ranor to maintain a loan-to-value ratio of not greater than 0.75 to 1.00, to be measured by appraisal not more frequently than one time during each 365-day period. Finance Lease See Note 12 for information regarding our obligations under the finance lease. Fair Value Measurements We account for fair value measurements in accordance with ASC Topic 820 , Fair Value Measurement, which defines fair value and establishes a framework to measure fair value and the related disclosures about fair value. The carrying value of short and long-term borrowings approximates their fair value at June 30, 2020 and March 31, 2020. The fair value of the long-term debt was calculated based on interest rates available for debt with terms and maturities similar to the Company's existing debt arrangements. The Company’s short-term and long-term debt with Berkshire bank is privately held with no public market for the debt and is considered to be Level 3 under the fair value hierarchy. |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2020 | |
LEASES | |
LEASES | NOTE 12 – LEASES Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased, or right-of-use assets in finance lease arrangements are reported in net property, plant and equipment on our condensed consolidated balance sheet. Right-of-use assets and liabilities on our condensed consolidated balance sheet at June 30, 2020 were: Finance lease: June 30, 2020 Property, plant and equipment $ 54,376 Accumulated depreciation 38,063 Net property, plant and equipment $ 16,313 Current portion of long-term debt $ 12,084 Long-term debt $ 7,501 Total finance lease liabilities $ 19,585 In December 2019, we signed an operating lease for office space that expires in less than 12 months and is amortized on a straight line basis. Other supplemental information regarding our leases are contained in the following tables: Components of lease expense for the period ended: June 30, 2020 Operating lease amortization $ 949 Finance lease amortization $ 2,719 Finance lease interest $ 2,674 Weighted average lease term and discount rate at: June 30, 2020 Finance lease term (years) 1.75 Finance lease rate 8 % Supplemental cash flow information related to leases for the period ended: June 30, 2020 Cash used in operating activities $ 949 Cash used in financing activities $ 2,875 |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Jun. 30, 2020 | |
COMMITMENTS | |
COMMITMENTS | NOTE 13 - COMMITMENTS Retirement Benefits Ranor has a defined contribution and savings plan that covers substantially all Ranor employees who have completed 90 days of service. Ranor retains the option to match employee contributions. The Company contributed $20,725 and $20,073 for the three months ended June 30, 2020 and 2019, respectively. Provision for claims settlement On March 16, 2020, the Company reached an agreement to settle all outstanding claims for $495,000 related to a civil action brought by former employees for past wages claimed under a paid time-off program. The claim is to be paid within sixty days following Court approval of the settlement. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of June 30, 2020 and March 31, 2020, the condensed consolidated statements of operations and comprehensive (loss) income and stockholders' equity for the three months ended These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, or the 2020 Form 10-K, filed with the SEC on June 11, 2020. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and revenues and expenses during the reported period. We continually evaluate our estimates, including those related to contract accounting, accounts receivable, inventories, the recovery of long-lived assets, income taxes and the valuation of equity transactions. We base our estimates on historical and current experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. The COVID-19 pandemic has negatively affected certain customers, suppliers and their labor force. For example, travel restrictions in connection with the pandemic have delayed inspections, deliveries and impacted some supply chain providers. The future financial impact of the COVID-19 pandemic cannot be reasonably estimated at this time as its impact depends on future developments, which are highly uncertain and cannot be predicted. The directives imposed by federal, state and local governments as a result of the COVID-19 pandemic did not impair our ability to maintain operations during the first quarter of fiscal 2021 as the Company was designated an essential service. Our estimates at the end of the first quarter assumed no material impact from the disruptions caused by COVID-19. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Schedule of net sales on a disaggregated basis by market and contract type | The following table presents net sales on a disaggregated basis by market and contract type: Net Sales by market Defense Industrial Totals Three months ended June 30, 2020 $ 3,203,590 $ 78,935 $ 3,282,525 Three months ended June 30, 2019 $ 3,409,291 $ 924,977 $ 4,334,268 Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2020 $ 3,027,897 254,628 $ 3,282,525 Three months ended June 30, 2019 $ 3,052,938 1,281,330 $ 4,334,268 |
Schedule of Contract Assets | At June 30, 2020 contract assets consisted of the following: Progress Contract assets Unbilled payments Total June 30, 2020 $ 9,104,826 $ (3,907,363) $ 5,197,463 March 31, 2020 $ 10,635,588 $ (6,130,967) $ 4,504,621 |
Sales [Member] | |
Schedule of revenues from customers who accounted for more than 10% of our net sales | June 30, 2020 June 30, 2019 Customer Amount Percent Amount Percent A $ 1,014,655 31 % $ * * % B $ 654,187 20 % $ * * % C $ 570,780 17 % $ 1,050,577 24 % D $ 390,512 12 % $ * * % E $ * * % $ 1,255,055 29 % F $ * * % $ 618,019 14 % G $ * * % $ 549,192 13 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share computations | June 30, June 30, 2020 2019 Basic EPS Net (loss) income $ (116,234) $ 220,777 Weighted average shares 29,359,921 29,253,495 Basic (loss) earnings per share $ (0.01) $ 0.01 Diluted EPS Net (loss) income $ (116,234) $ 220,777 Dilutive effect of stock options — 1,457,512 Diluted weighted average shares 29,359,921 30,711,007 Diluted (loss) earnings per share $ (0.01) $ 0.01 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
STOCK-BASED COMPENSATION | |
Schedule of options | Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2019 2,938,000 $ 0.416 $ 1,869,200 6.74 Exercised (20,000) 0.360 Canceled (2,000) Outstanding at 3/31/2020 2,916,000 $ 0.415 $ 2,546,800 Exercised (150,000) 0.800 Outstanding at 6/30/2020 2,766,000 $ 0.394 $ 2,289,400 Vested or expected to vest at 6/30/2020 2,766,000 $ 0.394 $ 2,289,400 Exercisable and vested at 6/30/2020 2,766,000 $ 0.394 $ 2,289,400 |
Schedule of exercise price range | Weighted Average Remaining Weighted Weighted Options Contractual Average Options Average Range of Exercise Prices: Outstanding Term Exercise Price Exercisable Exercise Price $0.01‑$1.00 2,670,000 $ 2,670,000 $ $1.01‑$1.96 96,000 $ 96,000 $ Totals 2,766,000 2,766,000 |
CONCENTRATION OF CREDIT RISK (T
CONCENTRATION OF CREDIT RISK (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accounts Receivable | |
Concentration of credit risk and major customers | |
Schedule of revenues from customers who accounted for more than 10% of our net sales | June 30, 2020 March 31, 2020 Customer Dollars Percent Dollars Percent A $ 349,460 38 % $ * * B $ 258,872 28 % $ * * C $ 140,599 15 % $ * * D $ 93,600 10 % $ 254,637 26 % E $ * * $ 365,636 37 % F $ * * $ 123,000 12 % |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | June 30, 2020 March 31, 2020 Payments advanced to suppliers $ 131,643 $ 272,070 Prepaid insurance 194,649 250,073 Prepaid subscriptions 20,273 14,440 Refundable AMT credits 22,748 22,748 Employee advances 24,079 18,173 Other 25,498 28,647 Total $ 418,890 $ 606,151 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | June 30, 2020 March 31, 2020 Provision for claims settlement $ 495,000 $ 495,000 Accrued compensation 507,064 383,555 Provision for contract losses 220,781 285,480 Accrued professional fees 212,805 279,657 Accrued project costs 55,746 76,059 Other 37,135 34,773 Total $ 1,528,531 $ 1,554,524 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
DEBT | |
Schedule of outstanding debt obligations | Total debt included the following as of: June 30, 2020 March 31, 2020 Berkshire Term Loan at 5.21% interest, due January 2022 $ 2,540,646 $ 2,564,389 Berkshire SBA PPP loan at 1% interest, due May 2022 1,317,100 — Finance lease obligations at 8% interest, due January 2022 19,585 22,460 Total debt $ 3,877,331 $ 2,586,849 Less: debt issue costs unamortized $ 24,833 $ 20,460 Total debt, net $ 3,852,498 $ 2,566,389 Less: Current portion of long-term debt $ 621,251 $ 109,829 Total long-term debt, net $ 3,231,247 $ 2,456,560 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
LEASES | |
Schedule of Right of use assets and liabilities | Right-of-use assets and liabilities on our condensed consolidated balance sheet at June 30, 2020 were: Finance lease: June 30, 2020 Property, plant and equipment $ 54,376 Accumulated depreciation 38,063 Net property, plant and equipment $ 16,313 Current portion of long-term debt $ 12,084 Long-term debt $ 7,501 Total finance lease liabilities $ 19,585 |
Schedule of Supplemental Information of leases | Other supplemental information regarding our leases are contained in the following tables: Components of lease expense for the period ended: June 30, 2020 Operating lease amortization $ 949 Finance lease amortization $ 2,719 Finance lease interest $ 2,674 Weighted average lease term and discount rate at: June 30, 2020 Finance lease term (years) 1.75 Finance lease rate 8 % |
Schedule of Supplemental Cash flow information | Supplemental cash flow information related to leases for the period ended: June 30, 2020 Cash used in operating activities $ 949 Cash used in financing activities $ 2,875 |
REVENUE - Disaggregated Basis (
REVENUE - Disaggregated Basis (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 3,282,525 | $ 4,334,268 |
Over Time Member | ||
Revenue from Contract with Customer, Including Assessed Tax | 3,027,897 | 3,052,938 |
Point In Time Member | ||
Revenue from Contract with Customer, Including Assessed Tax | 254,628 | 1,281,330 |
Defense | ||
Revenue from Contract with Customer, Including Assessed Tax | 3,203,590 | 3,409,291 |
Industrial | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 78,935 | $ 924,977 |
REVENUE - Net Sales from Custom
REVENUE - Net Sales from Customers (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 3,282,525 | $ 4,334,268 |
Customer A | Sales Revenue, Net | ||
Revenues | $ 1,014,655 | |
Concentration risk percentage | 31.00% | |
Customer B | Sales Revenue, Net | ||
Revenues | $ 654,187 | |
Concentration risk percentage | 20.00% | |
Customer C | Sales Revenue, Net | ||
Revenues | $ 570,780 | $ 1,050,577 |
Concentration risk percentage | 17.00% | 24.00% |
Customer D | Sales Revenue, Net | ||
Revenues | $ 390,512 | |
Concentration risk percentage | 12.00% | |
Customer E | Sales Revenue, Net | ||
Revenues | $ 1,255,055 | |
Concentration risk percentage | 29.00% | |
Customer F | Sales Revenue, Net | ||
Revenues | $ 618,019 | |
Concentration risk percentage | 14.00% | |
Customer G | Sales Revenue, Net | ||
Revenues | $ 549,192 | |
Concentration risk percentage | 13.00% |
REVENUE - Contract Assets and C
REVENUE - Contract Assets and Contract Liabilities (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Contract assets | $ 5,197,463 | $ 4,504,621 |
Unbilled | ||
Contract assets | 9,104,826 | 10,635,588 |
Progress payments | ||
Contract assets | $ (3,907,363) | $ (6,130,967) |
REVENUE - Additional informatio
REVENUE - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 14.4 | ||
Revenue Remaining Performance Obligation Completed Less Than 50 | $ 11.3 | ||
Revenue, Remaining Performance Obligation, Percentage | 50.00% | ||
Revenue Recognized By Contract Liabilities | $ 0.4 | ||
Minimum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | ||
Maximum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 36 months |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
INCOME TAXES | ||
Income tax (benefit) expense | $ 37,360 | $ (90,218) |
Effective tax rate | 24.30% | 29.00% |
Deferred Tax Assets, Valuation Allowance | $ 1,800,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Basic EPS | ||
Net (loss) income | $ (116,234) | $ 220,777 |
Weighted average shares | 29,359,921 | 29,253,495 |
Basic (loss) earnings per share | $ (0.01) | $ 0.01 |
Diluted EPS | ||
Net (loss) income | $ (116,234) | $ 220,777 |
Dilutive effect of stock options | 1,457,512 | |
Weighted average shares | 29,359,921 | 30,711,007 |
Diluted (loss) earnings per share | $ (0.01) | $ 0.01 |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 2,816,000 | 98,000 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | Jun. 13, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Number Of Options | ||||
Outstanding at the beginning of the period (in shares) | 2,916,000 | 2,938,000 | ||
Exercised (in shares) | (150,000) | (150,000) | (20,000) | |
Canceled (in shares) | (2,000) | |||
Outstanding at the end of the period (in shares) | 2,766,000 | 2,916,000 | 2,938,000 | |
Vested or expected to vest at the end of the period (in shares) | 2,766,000 | |||
Exercisable and vested at the end of the period (in shares) | 2,766,000 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 0.415 | $ 0.416 | ||
Exercised (in shares) | 0.800 | 0.360 | ||
Canceled (in dollars per share) | 0 | |||
Outstanding at the end of the period (in dollars per share) | 0.394 | $ 0.415 | $ 0.416 | |
Vested or expected to vest at the end of the period (in dollars per share) | 0.394 | |||
Exercisable and vested at the end of the period (in dollars per share) | $ 0.394 | |||
Aggregate Intrinsic Value | ||||
Outstanding Value | $ 2,289,400 | $ 2,546,800 | $ 1,869,200 | |
Vested or expected to vest at the end of the period | 2,289,400 | |||
Exercisable and vested at the end of the period | $ 2,289,400 | |||
Weighted Average Remaining Contractual Life (in years) | ||||
Outstanding at the end of the period | 6 years 1 month 17 days | 6 years 2 months 16 days | 6 years 8 months 27 days | |
Vested or expected to vest at the end of the period | 6 years 1 month 17 days | |||
Exercisable and vested at the end of the period | 6 years 1 month 17 days |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details) | 3 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | shares | 2,766,000 |
Options Exercisable | shares | 2,766,000 |
Range One | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | $ 0.01 |
Exercise Price, Upper Range | $ 1 |
Options Outstanding | shares | 2,670,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.34 |
Options Exercisable | shares | 2,670,000 |
Options Exercisable, Weighted Average Exercise Price | $ 0.34 |
Range Two | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | 1.01 |
Exercise Price, Upper Range | $ 1.96 |
Options Outstanding | shares | 96,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 8 months 9 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.84 |
Options Exercisable | shares | 96,000 |
Options Exercisable, Weighted Average Exercise Price | $ 1.84 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) | Mar. 16, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Share based compensation | |||
Contractual term of options | 6 years 1 month 17 days | ||
Restricted Stock [Member] | |||
Share based compensation | |||
Granted a total of shares of restricted stock | 100,000 | ||
Stock based compensation cost | $ 111,000 | ||
Total recognized compensation cost related to restricted stock award | $ 55,500 | ||
Total unrecognized compensation cost related to restricted stock awards | 46,250 | ||
Stock option [Member] | |||
Share based compensation | |||
Unrecognized compensation cost related to stock options | $ 0 | ||
2016 Plan | |||
Share based compensation | |||
Shares reserved | 5,000,000 | ||
Shares available for grant | 1,474,000 | 1,474,000 | |
Maximum | Stock option [Member] | |||
Share based compensation | |||
Contractual term of options | 10 years |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)customer | Mar. 31, 2020USD ($) | |
Concentration of credit risk and major customers | ||
Accounts receivable | $ 916,529 | $ 990,300 |
Accounts Receivable | Customer Concentration Risk | Customer A | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 349,460 | |
Concentration risk percentage | 38.00% | |
Accounts Receivable | Customer Concentration Risk | Customer B | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 258,872 | |
Concentration risk percentage | 28.00% | |
Accounts Receivable | Customer Concentration Risk | Customer C | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 140,599 | |
Concentration risk percentage | 15.00% | |
Accounts Receivable | Customer Concentration Risk | Customer D | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 93,600 | $ 254,637 |
Concentration risk percentage | 10.00% | 26.00% |
Accounts Receivable | Customer Concentration Risk | Customer E | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 365,636 | |
Concentration risk percentage | 37.00% | |
Accounts Receivable | Customer Concentration Risk | Customer F | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 123,000 | |
Concentration risk percentage | 12.00% | |
Trade Receivables | ||
Concentration of credit risk and major customers | ||
Number of significant customers | customer | 4 | |
Concentration risk percentage | 91.00% |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
OTHER CURRENT ASSETS | ||
Payments advanced to suppliers | $ 131,643 | $ 272,070 |
Prepaid insurance | 194,649 | 250,073 |
Prepaid subscriptions | 20,273 | 14,440 |
Refundable AMT credits | 22,748 | 22,748 |
Employee advances | 24,079 | 18,173 |
Other | 25,498 | 28,647 |
Total | $ 418,890 | $ 606,151 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
ACCRUED EXPENSES | ||
Provision for claims settlement | $ 495,000 | $ 495,000 |
Accrued compensation | 507,064 | 383,555 |
Provision for contract losses | 220,781 | 285,480 |
Accrued professional fees | 212,805 | 279,657 |
Accrued project costs | 55,746 | 76,059 |
Other | 37,135 | 34,773 |
Total | $ 1,528,531 | $ 1,554,524 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Long-term Debt | ||
Total debt | $ 3,877,331 | $ 2,586,849 |
Less: debt issue costs unamortized | 24,833 | 20,460 |
Total debt, net | 3,852,498 | 2,566,389 |
Less: Current portion of long-term debt | 621,251 | 109,829 |
Total long-term debt, net | 3,231,247 | 2,456,560 |
Berkshire Term Loan at 5.21% interest, due January 2022 | ||
Long-term Debt | ||
Total debt | $ 2,540,646 | $ 2,564,389 |
Interest rate (as a percent) | 5.21% | 5.21% |
Berkshire SBA PPP loan at 1% interest, due May 2022 | ||
Long-term Debt | ||
Total debt | $ 1,317,100 | |
Interest rate (as a percent) | 1.00% | 1.00% |
Finance lease obligations at 8% interest, due January 2022 | ||
Long-term Debt | ||
Total debt | $ 19,585 | $ 22,460 |
Less: Current portion of long-term debt | 12,084 | |
Total long-term debt, net | $ 7,501 | |
Interest rate (as a percent) | 8.00% | 8.00% |
DEBT - Small Business Administr
DEBT - Small Business Administrative PPP loan (Details) - Small Business Administration Paycheck Protection Program Loan [Member] - Promissory Note [Member] - Ranor, Inc. - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | May 08, 2020 | |
Debt | ||
Amount of promissory notes issued | $ 1,317,100 | $ 1,317,100 |
Interest rate (as a percent) | 1.00% | |
Maturity term | 2 years |
DEBT - Berkshire Bank & Trust C
DEBT - Berkshire Bank & Trust Company Loan Facility (Details) | Apr. 03, 2020USD ($) | Dec. 23, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 21, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Amount borrowed | $ 1,000,000 | $ 0 | |||||
Repayment of principal | 1,000,000 | $ 0 | |||||
Berkshire Loan | Revolver loan | |||||||
Debt Instrument [Line Items] | |||||||
Amount borrowed | $ 1,000,000 | ||||||
Repayment of principal | 1,000,000 | ||||||
Amount outstanding | 0 | $ 0 | $ 0 | ||||
Interest payments | $ 5,986 | ||||||
Weighted average interest rate (as a percent) | 2.76% | 2.76% | |||||
Unused borrowing capacity | $ 3,000,000 | $ 3,000,000 | |||||
Berkshire Loan | Restated Promissory Note | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount Of Borrowing Base Required To Grant Loan Advance | $ 3,000,000 | ||||||
Debt Instrument Percentage Of Accounts Receivable Used For Determination Of Aggregate Amount Of Advances | 80.00% | ||||||
Debt Instrument Percentage Of Eligible Raw Material Used For Determination Of Aggregate Amount Of Advances | 25.00% | ||||||
Amount Included In Sum To Calculate Maximum Borrowing Base | $ 250,000 | ||||||
Debt Instrument Percentage Of Appraised Value Of Equipment For Determination Of Aggregate Amount Of Advances | 50.00% | ||||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR plus 225 basis points | ||||||
Berkshire Loan | Ranor, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Covenant Trailing Period For Measurement Of Loan To Value Ratio | 365 days | ||||||
Berkshire Loan | Ranor, Inc. | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Term loan | $ 2,850,000 | ||||||
Berkshire Loan | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Covenant Leverage Ratio Year One | 2.50 | ||||||
Berkshire Loan | Maximum | Ranor, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Covenant Loan To Value Ratio | 0.75 | 0.75 | |||||
Berkshire Loan | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.2 | 1.2 | |||||
Ranor and Berkshire | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Revolving line of credit | $ 3,000,000 | $ 1,000,000 |
LEASES - Finance Lease (Details
LEASES - Finance Lease (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Net property, plant and equipment | $ 4,055,392 | $ 4,182,861 |
Current portion of long-term debt | 621,251 | 109,829 |
Long-term debt | 3,231,247 | $ 2,456,560 |
Finance lease obligations at 8% interest, due January 2022 | ||
Current portion of long-term debt | 12,084 | |
Long-term debt | 7,501 | |
Total finance lease liabilities | 19,585 | |
Assets Held under Capital Leases [Member] | ||
Property, plant and equipment | 54,376 | |
Accumulated depreciation | 38,063 | |
Net property, plant and equipment | $ 16,313 |
LEASES - Supplemental Informati
LEASES - Supplemental Information of Leases (Details) | 3 Months Ended |
Jun. 30, 2020USD ($) | |
LEASES | |
Operating lease amortization | $ 949 |
Finance lease amortization | 2,719 |
Finance lease interest | $ 2,674 |
Finance lease term (years) | 1 year 9 months |
Finance lease rate | 8.00% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) | 3 Months Ended |
Jun. 30, 2020USD ($) | |
LEASES | |
Cash used in operating activities | $ 949 |
Cash used in financing activities | $ 2,875 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) | Mar. 16, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Contractual commitments | |||
Defined Contribution Plan, Cost | $ 20,725 | $ 20,073 | |
Provision for claims settlement | $ 495,000 | ||
Period for payment of claim settlement amount | 60 days |