TechPrecision (TPCS) 10-Q 14 Nov 14 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Sep. 30, 2014	Nov. 07, 2014
Document and Entity Information	'	'
Entity Registrant Name	'TECHPRECISION CORP	'
Entity Central Index Key	'0001328792	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--03-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	24,669,958
Document Fiscal Year Focus	'2015	'
Document Fiscal Period Focus	'Q2	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Mar. 31, 2014
Current assets:	'	'
Cash and cash equivalents	$849,264	$1,086,701
Accounts receivable, less allowance for doubtful accounts of $25,010 in 2014 and 2013	2,051,843	2,280,469
Costs incurred on uncompleted contracts, in excess of progress billings	3,910,821	5,258,002
Inventories- raw materials	198,536	293,326
Income taxes receivable	8,062	8,062
Current deferred taxes	991,096	991,096
Other current assets	402,245	461,245
Total current assets	8,411,867	10,378,901
Property, plant and equipment, net	6,116,040	6,489,212
Other noncurrent assets, net	289,433	105,395
Total assets	14,817,340	16,973,508
Current liabilities:	'	'
Accounts payable	2,843,494	2,888,385
Accrued expenses	3,557,029	3,893,028
Deferred revenues	268,925	1,461,689
Debt	5,300,945	4,169,771
Total current liabilities	11,970,393	12,412,873
Long-term obligations under capital lease	32,399	38,071
Noncurrent deferred taxes	991,096	991,096
Commitments and contingent liabilities (see Note 16)	'	'
Stockholders' Equity:	'	'
Preferred stock- par value $.0001 per share, 10,000,000 shares authorized, of which 9,890,980 are designated as Series A Preferred Stock, with 1,927,508 and 2,477,508 shares issued and outstanding at September 30 and March 31, 2014; (liquidation preference of $549,340 and $706,090 at September 30 and March 31, 2014)	524,210	644,110
Common stock - par value $.0001 per share, 90,000,000 shares authorized, with 24,669,958 and 23,951,004 shares issued and outstanding at September 30, 2014 and March 31, 2014, respectively.	2,467	2,395
Additional paid in capital	6,357,823	6,105,211
Accumulated other comprehensive income (loss)	23,942	-55,097
Accumulated deficit	-5,084,990	-3,165,151
Total stockholders' equity	1,823,452	3,531,468
Total liabilities and stockholders' equity	$14,817,340	$16,973,508

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Mar. 31, 2014
Accounts receivable, allowance for doubtful accounts (in dollars)	$25,010	$25,010
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	24,669,958	23,951,004
Common stock, shares outstanding	24,669,958	23,951,004
Series A Convertible Preferred Stock	'	'
Preferred stock, designated as Series A Convertible Preferred Stock	9,890,980	9,890,980
Preferred Stock, Shares Issued	1,927,508	2,477,508
Preferred stock, shares outstanding	1,927,508	2,477,508
Preferred stock, liquidation preference (in dollars)	$549,340	$706,090

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS	'	'	'	'
Net sales	$4,570,711	$5,195,795	$10,801,052	$12,292,487
Cost of sales	3,702,996	4,468,523	9,715,097	11,144,972
Gross profit	867,715	727,272	1,085,955	1,147,515
Selling, general and administrative	1,210,136	1,484,487	2,538,909	3,254,569
Loss from operations	-342,421	-757,215	-1,452,954	-2,107,054
Other (expense) income	-1,211	6,985	-1,158	-567
Interest expense (includes OCI reclassifications for cash flow hedges of ($219,359) and ($248,464) in 2014)	-458,005	-67,646	-618,594	-137,773
Interest income	75	-794	75	2,819
Total other expense, net	-459,141	-61,455	-619,677	-135,521
Loss before income taxes	-801,562	-818,670	-2,072,631	-2,242,575
Income tax benefit (related to OCI reclassification)	-152,792	'	-152,792	'
Net loss	-648,770	-818,670	-1,919,839	-2,242,575
Other comprehensive (loss) income, before tax:	'	'	'	'
Change in unrealized loss on cash flow hedges	'	-7,476	-16,680	-117,813
Reclassification adjustment for cash flow hedges	219,359	'	248,464	'
Foreign currency translation adjustments	17	-184	47	-2,396
Other comprehensive (loss) income, before tax	219,376	-7,660	231,831	-120,209
Tax expense from reclassification adjustment	152,792	'	152,792	'
Other comprehensive income (loss), net of tax	66,584	-7,660	79,039	-120,209
Comprehensive loss	($582,186)	($826,330)	($1,840,800)	($2,362,784)
Net loss per share (basic) (in dollars per share)	($0.03)	($0.04)	($0.08)	($0.11)
Net loss per share (diluted) (in dollars per share)	($0.03)	($0.04)	($0.08)	($0.11)
Weighted average number of shares outstanding (basic) (in shares)	24,669,958	19,956,871	24,336,018	19,956,871
Weighted average number of shares outstanding (diluted) (in shares)	24,669,958	19,956,871	24,336,018	19,956,871

CONSOLIDATED_STATEMENTS_OF_OPE1

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Paranthetical) (USD $)	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS	'	'
Other comprehensive income (loss) reclassifications for cash flow hedges	($219,359)	($248,464)

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($1,919,839)	($2,242,575)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	553,587	478,902
Stock based compensation expense	132,784	214,287
Loss on interest rate swaps	49,544	'
Provision for contract losses	-576,605	1,427,803
Changes in operating assets and liabilities:	'	'
Accounts receivable	228,636	1,644,073
Costs incurred on uncompleted contracts, in excess of progress billings	1,347,181	-765,743
Inventories - raw materials	94,787	1,283
Other current assets	58,999	180,499
Other noncurrent assets	-169,316	'
Accounts payable	-44,849	-1,295,237
Accrued expenses	270,054	-682,920
Deferred revenues	-1,192,764	423,547
Net cash provided by operating activities	-1,167,801	-616,081
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchases of property, plant and equipment	-54,096	-53,941
Net cash used in investing activities	-54,096	-53,941
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Borrowings of debt	4,150,000	'
Repayment of debt	-3,024,498	-875,278
Deferred loan costs	-141,041	'
Net cash provided by (used in) financing activities	984,461	-875,278
Effect of exchange rate on cash and cash equivalents	-1	1,950
Net decrease in cash and cash equivalents	-237,437	-1,543,350
Cash and cash equivalents, beginning of period	1,086,701	3,075,376
Cash and cash equivalents, end of period	849,264	1,532,026
Cash paid during the period for:	'	'
Interest	281,177	127,306
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:	'	'
Number of shares of common stock issued for converted preferred stock	718,954	'
Shares converted into common stock	550,000	'
Liability recorded for fair value of an interest rate swap contract in connection with a tax exempt bond	'	271,168
Tax on liability recorded for fair value of an interest rate swap contract in connection with a tax exempt bond	'	$0

DESCRIPTION_OF_BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Sep. 30, 2014
DESCRIPTION OF BUSINESS	'
DESCRIPTION OF BUSINESS	'
	NOTE 1 – DESCRIPTION OF BUSINESS
	TechPrecision Corporation, or TechPrecision, is a custom manufacturer of large scale metal fabricated and machined precision components and equipment. We offer a full range of services required to transform metallic raw materials into precise finished products. We sell these finished products to customers in three main industry groups: naval/maritime, energy and precision industrial. These products are used in a variety of markets including the alternative energy, medical, nuclear, defense, commercial, and aerospace industries. TechPrecision is the parent company of Ranor, Inc., or Ranor, a Delaware corporation. On November 4, 2010, TechPrecision announced it completed the formation of a wholly foreign owned enterprise (WFOE), under the laws of the People’s Republic of China, Wuxi Critical Mechanical Components Co., Ltd., or WCMC, to meet demand for local manufacturing of components in China. TechPrecision, WCMC and Ranor are collectively referred to as “the Company,” “we,” “us” or “our.”
	Liquidity and Capital Resources
	At March 31, 2013, we were not in compliance with the fixed charges and interest coverage financial covenants under our Loan and Security Agreement between Ranor and Santander Bank, or the Bank, dated February 24, 2006, as amended, or the Loan Agreement, and the Bank did not agree to waive the non-compliance with the covenants. The Loan Agreement was amended by the Forbearance and Modification Agreement, dated January 16, 2014, or the First Forbearance Agreement. Under the First Forbearance Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement until March 31, 2014. The First Forbearance Agreement expired on March 31, 2014, and the Bank did not agree to waive the non-compliance with the covenants at March 31, 2014. Since we were in default, the Bank had the right to accelerate payment of the debt in full upon 60 days written notice. As a consequence, we classified all amounts under the Loan Agreement, $4.2 million at March 31, 2014 as a current liability.
	On May 30, 2014, TechPrecision and Ranor entered into a Loan and Security Agreement, or the LSA, with Utica Leasco, LLC, or Utica. Pursuant to the LSA, Utica agreed to loan $4.15 million to Ranor under a Credit Loan Note, which is collateralized by a first secured interest in certain machinery and equipment at Ranor.  Payments under the LSA and Credit Loan Note are due in monthly installments with interest on the unpaid principal balance of the Credit Loan Note at an interest rate equal to 7.5% plus the greater of 3.3% and the six-month LIBOR interest rate, as described in the Credit Loan Note. Ranor’s obligations under the LSA and the Credit Loan Note are guaranteed by TechPrecision.
	Pursuant to the LSA, Ranor is subject to certain restrictive covenants which, among other things, restrict Ranor’s ability to (1) declare or pay any dividend or other distribution on its equity, purchase or retire any of its equity, or alter its capital structure; (2) make any loan or guaranty or assume any obligation or liability; (3) default in payment of any debt in excess of $5,000 to any person; (4) sell any of the collateral outside the normal course of business or (5) enter into any transaction that would materially or adversely affect the collateral or Ranor’s ability to repay the obligations under the LSA and the Credit Loan Note.  The restrictions of these covenants are subject to certain exceptions specified in the LSA and in some cases may be waived by written consent of Utica.  Any failure to comply with the covenants outlined in the LSA without waiver by Utica or certain other provisions in the LSA would be an event of default, pursuant to which Utica may accelerate the repayment of the loan.
	In connection with the execution of the LSA, we paid approximately $0.24 million in fees and associated costs and utilized approximately $2.65 million to pay off debt obligations owed to the Bank, under the Loan Agreement.  Additionally, the Company retained approximately $1.27 million for general corporate purposes.
	On May 30, 2014, the Company and the Bank entered into a new forbearance and modification agreement, or the Second Forbearance Agreement. Under the Second Forbearance Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement commencing retroactively on April 1, 2014 and extending until no later than June 30, 2014, or the Second Forbearance Period. During the Second Forbearance Period, we agreed to comply with the terms, covenants and provisions in the Loan Agreement and related documents, as amended by the Second Forbearance Agreement.  The Second Forbearance Agreement amends the Loan Agreement to, among other things, prohibit the Company’s Leverage Ratio  (as such term is defined in the Loan Agreement) to be greater than 1.75 to 1.0.
	On July 1, 2014, the Company and the Bank entered into the Third Forbearance Agreement. Under the Third Forbearance  Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement commencing on July 1, 2014 and extending until no later than July 31, 2014. The Third Forbearance Agreement expired on its own terms on July 31, 2014.
	On August 12, 2014, the Company and the Bank entered into a new forbearance and modification agreement, or the Fourth Forbearance Agreement, and collectively with the First Forbearance Agreement, the Second Forbearance Agreement and the Third Forbearance Agreement, the Forbearance Agreements. Under the Fourth Forbearance  Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement commencing on August 1, 2014 and extending until no later than September 30, 2014, or the Fourth Forbearance Period. Under the Fourth Forbearance Agreement we were required to retain a management consultant acceptable to the Bank who will have access to our operations in the U.S. We have continued and will continue to make principal and interest payments pursuant to the terms of the Loan Agreement, as amended by the Forbearance Agreements. We were not in compliance with the applicable leverage ratio covenant in the Loan Agreement, as amended by the Forbearance Agreements at September 30, 2014 or at March 31, 2014, as the actual leverage ratio was 4.4 to 1.0 and 3.8 to 1.0, respectively.
	We have not entered into a new forbearance agreement with the Bank after the expiration of the Fourth Forbearance Period. Since we are in default, the Bank has the right to accelerate payment of the debt in full upon 60 days written notice. As a consequence, we classified $5.3 million under the Loan Agreement, the Series A Bonds, and the LSA, as applicable, as a current liability at September 30, 2014. If the Bank were to demand full repayment of the amounts we owe to the Bank, we would be unable to pay the obligation as we do not have existing facilities or sufficient cash on hand to satisfy these obligations and would need to seek alternative financing. We are engaged in discussions with the Bank about extending the Fourth Forbearance Agreement.
	In the event that we fail to pay off, or complete a refinancing of, the current outstanding obligations by the completion of the Fourth  Forbearance Period, the interest rate on outstanding obligations will convert to the default interest rate of 65% of the sum of one month LIBOR plus 16%. If the Bank were to demand full repayment, we would be unable to pay the obligation as we do not have existing facilities or sufficient cash on hand to satisfy these obligations and would need to seek alternative financing.
	At September 30, 2014, we had cash and cash equivalents of $849,264, of which $15,613 is located in China and which we may not be able to repatriate for use in the U.S. without undue cost or expense, if at all. Our cash and cash equivalents total includes $180,000 of restricted cash with the Bank that may be used toward funding operating activities with the Bank’s approval. Approximately 55% and 24% of our accounts receivable and work-in-process, respectively, are at risk of not being converted to cash in a timely manner due to a contract dispute with one of our customers. We have recorded a provision for potential contract losses of $2.7 million, and, in one case, filed a demand for arbitration under a customer’s purchase agreement to recover all of our costs under the contract terms. We cannot be certain that we will be successful in recovering the full amount of our losses. We have incurred an operating loss of $1.9 million for the six months ended September 30, 2014.
	These factors raise substantial doubt about our ability to continue as a going concern. In order for us to continue operations beyond the next twelve months and be able to discharge our liabilities and commitments in the normal course of business, we must secure long-term financing on terms consistent with our near-term business plans. In addition, we must increase our backlog and change the composition of our revenues to focus on recurring unit of delivery projects rather than custom first article and prototyping projects which do not efficiently use our manufacturing capacity, and reduce our operating expenses to be in line with current business conditions in order to increase profit margins and decrease the amount of cash used in operations. If successful in changing the composition of revenue and reducing costs, we anticipate that the year ending March 31, 2015, or fiscal 2015, operating results should reflect positive cash flows. We plan to closely monitor our expenses and, if required, will further reduce operating costs to enhance liquidity.
	The condensed consolidated financial statements for the three and six months ended September 30, 2014 and the year ended March 31, 2014, or fiscal 2014, were prepared on the basis of a going concern which contemplates that we will be able to realize assets and discharge liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should we be required to liquidate assets. Our ability to satisfy our total current liabilities of $12.0 million at September 30, 2014 and to continue as a going concern is dependent upon the availability of and our ability to timely secure long-term financing and the successful execution of an effective operating plan. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

SIGNIFICANT_ACCOUNTING_POLICIE

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2014
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	'
SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The accompanying condensed consolidated financial statements include the accounts of TechPrecision, WCMC and Ranor. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheet as of September 30, 2014, the condensed consolidated statements of operations and comprehensive loss for the three and six month periods ended September 30, 2014 and 2013, and the condensed consolidated statements of cash flows for the six months ended September 30, 2014 and 2013 are unaudited, but in the opinion of management, include all adjustments that are necessary for a fair presentation of our financial statements for interim periods in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The results of operations for an interim period are not necessarily indicative of the results of operations to be expected for the fiscal year.
	The Notes to Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, for Quarterly Reports on Form 10-Q. Certain information and note 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 our consolidated financial statements included with our Annual Report on Form 10-K, or 2014 Form 10-K, filed with the SEC for the year ended March 31, 2014.
	Significant Accounting Policies
	Our significant accounting policies are set forth in detail in Note 2 to the 2014 Form 10-K.

RECENTLY_ISSUED_AND_ADOPTED_AC

RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Sep. 30, 2014
RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS	'
RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS	'
	NOTE 3 – RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS
	In August, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a going Concern.   The Amendments in ASU 2014-15 are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating ASU 2014-15 to determine the impact on the Company’s consolidated financial statements and related disclosures.
	In June, 2014, the FASB issued ASU No. 2014-12, Compensation — Stock Compensation (Topic 718)- Accounting for Share-based Payments when Terms of an award Provide That a Performance Target Could be Achieved after the Requisite Service Period.   The Amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. We are currently evaluating ASU 2014-12 to determine the impact on the Company’s consolidated results of operations, financial position and cash flows.
	In May 2014, the FASB and the International Accounting Standards Board (IASB) issued, ASU 2014-09 (Topic 606) Revenue from Contracts with Customers. The guidance converges final standards on revenue recognition between the FASB and IASB providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The ASU is effective for annual reporting periods beginning after December 15, 2016. We are currently evaluating ASU 2014-09 to determine the impact it may have on our current practices.

PROPERTY_PLANT_AND_EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Sep. 30, 2014
PROPERTY, PLANT AND EQUIPMENT	'
PROPERTY, PLANT AND EQUIPMENT	'
	NOTE 4 – PROPERTY, PLANT AND EQUIPMENT
		September 30, 2014			March 31, 2014
	Land	$	110,113		$	110,113
	Building and improvements	3,261,680			3,261,680
	Machinery equipment, furniture and fixtures	8,943,146			8,889,051
	Equipment under capital leases	65,568			65,568
	Total property, plant and equipment	12,380,507			12,326,412
	Less: accumulated depreciation	(6,264,467		)	(5,837,200		)
	Total property, plant and equipment, net	$	6,116,040		$	6,489,212
	Depreciation expense for the three and six months ended September 30, 2014 and 2013 was $211,751 and $427,267, and $220,604 and $469,044, respectively.

COSTS_INCURRED_ON_UNCOMPLETED_

COSTS INCURRED ON UNCOMPLETED CONTRACTS	6 Months Ended
	Sep. 30, 2014
COSTS INCURRED ON UNCOMPLETED CONTRACTS	'
COSTS INCURRED ON UNCOMPLETED CONTRACTS	'
	NOTE 5 – COSTS INCURRED ON UNCOMPLETED CONTRACTS
		September 30,			March 31,
		2014			2014
	Cost incurred on uncompleted contracts, beginning balance	$	9,960,072		$	6,180,839
	Total cost incurred on contracts during the period	6,426,442			25,579,089
	Less cost of sales, during the period	(9,715,097		)	(21,799,856		)
	Cost incurred on uncompleted contracts, ending balance	$	6,671,417		$	9,960,072
	Billings on uncompleted contracts, beginning balance	$	4,702,070		$	1,882,546
	Plus: Total billings incurred on contracts, during the period	8,859,578			23,887,587
	Less: Contracts recognized as revenue, during the period	(10,801,052		)	(21,068,063		)
	Billings on uncompleted contracts, ending balance	$	2,760,596		$	4,702,070
	Cost incurred on uncompleted contracts, ending balance	$	6,671,417		$	9,960,072
	Billings on uncompleted contracts, ending balance	2,760,596			4,702,070
	Costs incurred on uncompleted contracts, in excess of progress billings	$	3,910,821		$	5,258,002
	Contract costs consist primarily of labor and materials and related overhead, to the extent that such costs are recoverable. Revenues associated with these contracts are recorded only when the recovery amounts can be estimated reliably and realization is probable. As of September 30, 2014 and March 31, 2014, we had deferred revenues totaling $268,925 and $1,461,689, respectively. Deferred revenues represent customer prepayments on contracts and completed contracts on which all revenue recognition criteria were not met. We record provisions for losses within costs of sales in our condensed consolidated statement of operations and comprehensive loss. We also receive advance billings and deposits representing down payments for acquisition of materials and progress payments on contracts. The contracts with our customers allow us to offset the progress payments against the costs incurred.

OTHER_CURRENT_ASSETS

OTHER CURRENT ASSETS	6 Months Ended
	Sep. 30, 2013
OTHER CURRENT ASSETS	'
OTHER CURRENT ASSETS	'
	NOTE 6 – OTHER CURRENT ASSETS
		September 30,		March 31,
		2014		2014
	Payments advanced to suppliers	$	160,860	$	196,534
	Prepaid insurance	134,243		229,727
	Collateral deposit	76,852		—
	Other	30,290		34,984
	Total	$	402,245	$	461,245

OTHER_NONCURRENT_ASSETS

OTHER NONCURRENT ASSETS	6 Months Ended
	Sep. 30, 2014
OTHER NONCURRENT ASSETS	'
OTHER NONCURRENT ASSETS	'
	NOTE 7 – OTHER NONCURRENT ASSETS
		September 30,			March 31,
		2014			2014
	Deferred loan costs	$	415,753		$	105,395
	Deferred loan costs, amortization of	(126,320		)	—
	Total	$	289,433		$	105,395

ACCRUED_EXPENSES

ACCRUED EXPENSES	6 Months Ended
	Sep. 30, 2014
ACCRUED EXPENSES	'
ACCRUED EXPENSES	'
	NOTE 8 – ACCRUED EXPENSES
		September 30,		March 31,
		2014		2014
	Accrued compensation	$	612,371	$	320,419
	Interest rate swaps market value	196,096		231,783
	Provision for contract losses	2,682,498		3,259,103
	Other	66,064		81,723
	Total	$	3,557,029	$	3,893,028
	Our loss provision includes approximately $2.4 million for estimated contract losses in connection with a certain customer purchase agreement. We filed a demand for arbitration under the contract to recover damages, together with attorney’s fees, interest and costs subsequent to the customer’s request to reduce the number of units ordered under the purchase agreement. Accrued compensation at September 30, 2014 includes $220,000 of unpaid Executive Chairman compensation and Board of Director fees.

DEBT

DEBT	6 Months Ended
	Sep. 30, 2014
DEBT	'
DEBT	'
	NOTE 9 – DEBT
		September 30,		March 31,
		2014		2014
	Debt obligations outstanding were classified as of:
	Credit Loan Note due November 2018	$	3,842,593	$	—
	MDFA Series A Bonds due January 2021	1,447,261		3,559,375
	MDFA Series B Bonds due January 2018	—		599,634
	Obligations under capital leases	11,091		10,762
	Total Short-term debt	$	5,300,945	$	4,169,771
	Long-term obligations under capital leases	32,399		38,071
	Total Debt	$	5,333,344	$	4,207,842
	Loan and Security Agreement
	On May 30, 2014, TechPrecision and Ranor entered into the LSA, with Utica. Pursuant to the LSA, Utica agreed to loan $4.15 million to Ranor under a Credit Loan Note, which is collateralized by a first secured interest in certain machinery and equipment at Ranor.  Payments under the LSA and the Credit Loan Note are due in monthly installments with interest on the unpaid principal balance of the Credit Loan Note at an interest rate equal to 7.5% plus the greater of 3.3% or the six-month LIBOR interest rate, as described in the Credit Loan Note. Ranor’s obligations under the LSA and the Credit Loan Note are guaranteed by TechPrecision.
	Pursuant to the LSA, Ranor is subject to certain restrictive covenants which, among other things, restrict Ranor’s ability to (1) declare or pay any dividend or other distribution on its equity, purchase or retire any of its equity, or alter its capital structure; (2) make any loan or guaranty or assume any obligation or liability; (3) default in payment of any debt in excess of $5,000 to any person; (4) sell any of the collateral outside the normal course of business or (5) enter into any transaction that would materially or adversely affect the collateral or Ranor’s ability to repay the obligations under the LSA and the Credit Loan Note.  The restrictions of these covenants are subject to certain exceptions specified in the LSA and in some cases may be waived by written consent of Utica.  Any failure to comply with the covenants outlined in the LSA without waiver by Utica or certain other provisions in the LSA would be an event of default, pursuant to which Utica may accelerate the repayment of the loan.
	In connection with the execution of the LSA, the Company paid approximately $0.24 million in fees and associated costs and utilized approximately $2.65 million to pay off, or complete a refinancing of, debt obligations owed to the Bank under the Loan Agreement. Additionally, the Company retained approximately $1.27 million for general corporate purposes.
	Forbearance Agreements
	On January 16, 2014, we entered into a forbearance and modification agreement with the Bank, or the First Forbearance Agreement, in connection with the Loan Agreement. Under the First Forbearance Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement until March 31, 2014, or the First Forbearance Period.
	In consideration for the granting of the First Forbearance Agreement, we agreed to : (i) have paid in full all interest and fees accrued under the Loan Agreement and other related documents through December 31, 2013 (at such interest rate and in accordance with the terms therein); (ii) reimburse the Bank for appraisal costs in the amount of $11,240; (iii) an increase in the interest rate of 2% for the Series A Bonds and the Series B Bonds to 6.1% and 5.6%, respectively, during the First Forbearance Period; (iv) the application of $394,329 and $445,671 of the Company’s restricted cash collateral deposit of $840,000 to pay off certain obligations under the Loan Agreement described above and the Series B Bonds respectively and (v) pay a forbearance fee of 3% of the net outstanding balance due from the Obligors to the Bank, which amounts to $128,433 due in installments during the First Forbearance Period.
	On May 30, 2014, we and the Bank entered into a new forbearance and modification agreement, or the Second Forbearance Agreement. Under the Second Forbearance Agreement, the Bank has agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement commencing retroactively on April 1, 2014 and extending until no later than June 30, 2014, or the Second Forbearance Period.
	During the Second Forbearance Period, we agreed to comply with the terms, covenants and provisions in the Loan Agreement and related documents, as amended by the Second Forbearance Agreement.  The Second Forbearance Agreement amends the Loan Agreement to, among other things, prohibit the Company’s Leverage Ratio  (as such term is defined in the Loan Agreement) to be greater than 1.75 to 1.0.
	On July 1, 2014, the Company and the Bank entered into a third forbearance and modification agreement, or the Third Forbearance Agreement. Under the Third Forbearance Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement commencing on July 1, 2014 and extending until no later than July 31, 2014, or the Third Forbearance Period.
	On August 12, 2014, the Company and the Bank entered into a new forbearance and modification agreement, or the Fourth Forbearance Agreement. Under the Fourth Forbearance  Agreement, the Bank agreed to forbear from exercising certain of its rights and remedies arising as a result of the Company’s non-compliance with certain financial covenants under the Loan Agreement commencing on August 1, 2014 until no later than September 30, 2014, or the Fourth Forbearance Period. Under the Fourth Forbearance Agreement we were required to retain a management consultant acceptable to the Bank who will have access to our operations in the U.S. We have continued and will continue to make principal and interest payments pursuant to the terms of the Loan Agreement, as amended by Forbearance Agreements. If the Bank were to demand full repayment of the amounts we owe the Bank, we would be unable to pay the obligation as we do not have existing facilities or sufficient cash on hand to satisfy these obligations and would need to seek alternative financing. We were not in compliance with the leverage ratio covenant at September 30, 2014 or March 31, 2014, as the actual leverage ratio was 4.4 to 1.0 and 3.8 to 1.0, respectively.
	We are engaged in discussions with the Bank about extending the Fourth Forbearance Agreement. We are also engaged in discussions with potential alternative financing sources to secure additional financing to, among other things, payoff the remaining obligation under the Series A Bonds.
	MDFA Series A and B Bonds
	On December 30, 2010, we completed a $6.2 million tax exempt bond financing with the Massachusetts Development Finance Authority, or the MDFA, pursuant to which the MDFA sold to the Bank MDFA Revenue Bonds, Ranor Issue, Series 2010A in the original aggregate principal amount of $4.25 million, or Series A Bonds, and MDFA Revenue Bonds, Ranor Issue, Series 2010B in the original aggregate principal amount of $1.95 million, or Series B Bonds together with the Series A Bonds, the Bonds. The proceeds of such sales were loaned to us under the terms of a Mortgage Loan and Security Agreement, dated as of December 1, 2010, by and among us, MDFA and the Bank (as Bond owner and Disbursing Agent), or the MLSA. The proceeds from the sale of the Series A Bonds were used to finance the Ranor facility acquisition and 19,500 sq. ft. expansion of Ranor’s manufacturing facility in Westminster, Massachusetts, and the proceeds from the sale of the Series B Bonds were used to finance acquisitions of qualifying manufacturing equipment installed at the Westminster facility.
	In connection with the execution of the LSA described above, the Company paid down approximately $2.0 million of our obligation under the Series A Bonds owed to the Bank, and paid off the remaining balance ($576,419) of the Series B Bonds in full. We also terminated the interest rate swap which hedged the cash flows of the Series B Bonds. We paid a breakage fee of $29,448 for early termination of the interest rate swap for the Series B Bonds and recorded the amount as interest expense in our statement of operations.
	At September 30, 2014, we were in default and continue to be in default under the Loan Agreement with the Bank. The Forbearance Agreements amended the Loan Agreement to, among other things, prohibit the Company’s Leverage Ratio (as such term is defined in the Loan Agreement) to be greater than 1.75 to 1.0. At September 30, 2014 and March 31, 2014, we were not in compliance with the leverage ratio coverage covenants under the Loan Agreement, and the Bank did not agree to waive our non-compliance with the covenants at September 30, 2014 or March 31, 2014, as the actual leverage ratio was 4.4 to 1.0 and 3.81 to 1.0, respectively. The Bank had the right to accelerate payment of the debt in full upon 60 days’ written notice. As a consequence, all amounts under the Loan Agreement, the Series A Bonds, and the LSA, as applicable, are classified as a current liability at September 30, 2014 ($5.3 million) and March 31, 2014 ($4.2 million).
	Under the MLSA and related documents, the Westminster facility secures, and we further guarantee, Ranor’s obligations to the Bank and subsequent holders of the Series A Bonds. At September 30, 2014, the rate of interest on the Series A Bonds is 65% of the sum of one month LIBOR plus 5.75%, or 4.49%. We continue to make monthly principal and interest payments with respect to the Series A Bonds.  The Series A Bonds are redeemable pursuant to the MLSA prior to maturity, in whole or in part, on any payment date in accordance with the terms of the MLSA.
	Derivative Instruments
	Through June 30, 2014, we held two interest rate swap contracts, which were designated as cash flow hedges, to hedge our interest rate exposure on the underlying Series A and Series B Bonds under the MLSA. We recorded the fair value of the contracts in our consolidated balance sheet with the effective portion of the gain or loss on the derivative reported in stockholders’ equity as a component of accumulated other comprehensive loss and subsequently reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Because the critical terms of the interest rate swap changed following the execution of the LSA in the first quarter of Fiscal 2015 we terminated the Series B swap, and de-designated our Series A interest rate swap in the second quarter. As a result, in the second quarter of Fiscal 2015, we reclassified $248,464 from Accumulated Other Comprehensive Income to the statement of operations on the interest expense line. The outstanding fair value interest rate swap recorded in current liabilities on our balance sheet was $196,096 and $271,168 on September 30, 2014 and March 31, 2014, respectively. The Series A swaps will terminate on January 4, 2021. We intend to hold the Series A interest rate swap over the near term.
	The fair value of the interest rate swaps contracts were measured using market based level 2 inputs. The method employed to calculate the values conforms to the industry convention for calculation of such values. The swap’s market value can be calculated any time by comparing the fixed rate set at the inception of the transaction and the “swap replacement rate,” which represents the market rate for an offsetting interest rate swap with the same notional amounts and final maturity date. The market value is then determined by calculating the present value interest differential between the contractual swap and the replacement swap. The termination value is the sum of the present value interest differential as described above plus the accrued interest due at termination.
	Capital Lease:
	We entered into a new capital lease in April 2012 for certain office equipment. The lease term is for 63 months, bears interest at 6.0% and requires monthly payments of principal and interest of $860. This lease was amended in fiscal 2014 when we purchased another replacement copier at Ranor. The revised lease term was extended by nine months and will expire in March 2018 and the required monthly payments of principal and interest increased to $1,117. The amount of the lease recorded in property, plant and equipment, net as of September 30, 2014 and March 31, 2014 was $40,654 and $46,420, respectively.
	Obligations under the Credit Loan Note, Series A Bonds and Capital Lease are guaranteed by TechPrecision and Ranor. Collateral securing the Credit Loan Note, Series A Bonds and Capital Lease comprises all personal property of TechPrecision and Ranor, including cash, accounts receivable, inventories, equipment, financial and intangible assets.

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Sep. 30, 2014
INCOME TAXES	'
INCOME TAXES	'
	NOTE 10 – INCOME TAXES
	At the end of each interim period, we make an estimate of our annual U.S. and China expected effective tax rates. For the three and six months ended September 30, 2014, we recorded a tax benefit of $152,792 as a result of the reclassification of a loss on an interest rate swap from other comprehensive income. The lack of any other tax benefits for the six months ended September 30, 2014 was primarily the result of recording a full valuation allowance on our net deferred tax assets. A valuation allowance must be established for deferred tax assets when it is more likely than not that they will not be realized. The assessment was based on the weight of negative evidence at the balance sheet date, our recent operating losses and unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels. We have determined that it is more likely than not that certain future tax benefits may not be realized.  A change in the estimates used to make this determination could require an increase in deferred tax assets if they become realizable.
	At September 30, 2014, our federal net operating loss carryforward was approximately $7.6 million. If not utilized, the federal net operating loss carryforward will begin to expire in 2025. Section 382 of the Internal Revenue Code, as amended, provides for a limitation on the annual use of net operating loss carryforwards following certain ownership changes that could limit our ability to utilize some of these carryforwards on a yearly basis due to an ownership change in connection with the acquisition of Ranor in 2006.
	We file income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. Our foreign subsidiary files separate income tax returns in the foreign jurisdiction in which it is located.  Tax years 2011 and forward remain open for examination.  We recognize interest and penalties accrued related to income tax liabilities in selling, general and administrative expense in our Condensed Consolidated Statements of Operations.

PROFIT_SHARING_PLAN

PROFIT SHARING PLAN	6 Months Ended
	Sep. 30, 2014
PROFIT SHARING PLAN	'
PROFIT SHARING PLAN	'
	NOTE 11 - PROFIT SHARING PLAN
	Ranor has a 401(k) profit sharing plan that covers substantially all Ranor employees who have completed 90 days of service. Ranor retains the option to match employee contributions. Our contributions were $4,234 and $10,703 for the six months ended September 30, 2014 and 2013, respectively.

CAPITAL_STOCK

CAPITAL STOCK	6 Months Ended
	Sep. 30, 2014
CAPITAL STOCK	'
CAPITAL STOCK	'
	NOTE 12 – CAPITAL STOCK
	Preferred Stock
	We have 10,000,000 authorized shares of preferred stock and the Board of Directors has broad power to create one or more series of preferred stock and to designate the rights, preferences, privileges and limitation of the holders of such series. The Board of Directors has created one series of preferred stock - the Series A Convertible Preferred Stock.
	Each share of Series A Convertible Preferred Stock was initially convertible into one share of common stock. As a result of our failure to meet certain levels of earnings before interest, taxes, depreciation and amortization for the years ended March 31, 2006 and 2007, the conversion rate changed, and, at December 31, 2009, each share of Series A Convertible Preferred Stock was convertible into 1.3072 shares of common stock, with an effective conversion price of $0.218.  Based on the current conversion ratio, as of September 30, 2014 and March 31, 2014, there were 2,519,638 and 3,238,598 common shares, respectively, underlying the Series A Convertible Preferred Stock.
	Upon any liquidation we would be required to pay $0.285 for each share of Series A Convertible Preferred Stock. The payment will be made before any payment to holders of any junior securities and after payment to holders of securities that are senior to the Series A Convertible Preferred Stock.
	During the six months ended September 30, 2014 there were 550,000 shares of Series A Convertible Preferred Stock converted into 718,954 shares of common stock. At September 30, 2014 and March 31, 2014, we had 1,927,508 and 2,477,508 shares, respectively, of Series A Convertible Preferred Stock outstanding.
	Common Stock
	We had 90,000,000 authorized common shares at September 30, 2014 and March 31, 2014, and there were 24,669,958 and 23,951,004 shares of common stock outstanding at September 30, 2014 and March 31, 2014, respectively.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Sep. 30, 2014
STOCK BASED COMPENSATION	'
STOCK BASED COMPENSATION	'
	NOTE 13 – STOCK BASED COMPENSATION
	In 2006, the Company’s directors adopted, and the Company’s stockholders approved, the 2006 TechPrecision Corporation Long-Term Incentive Plan, or, as amended, the Plan. The Plan provides for the grant of incentive and non-qualified options, stock grants, stock appreciation rights and other equity-based incentives to employees, including officers, and consultants. The Plan is to be administered by a committee of not less than two directors each of whom is to be an independent director. In the absence of a committee, the Plan is administered by the Board of Directors. Independent directors are not eligible for discretionary options. The maximum number of shares of common stock that may be issued under the Plan is 3,300,000 shares.
	Pursuant to the Plan, each newly elected independent director receives at the time of his or her election, an option to purchase 50,000 shares of common stock at the market price on the date of his or her election.  In addition, the Plan provides for the annual grant of an option to purchase 10,000 shares of common stock on July 1st of each year following the third anniversary of the date of his or her first election.
	The fair value was estimated using the Black-Scholes option-pricing model based on the closing stock prices at the grant date and the weighted average assumptions specific to the underlying options. Expected volatility assumptions are based on the historical volatility of our common stock. The risk-free interest rate was selected based upon yields of five-year U.S. Treasury issues. The assumptions utilized for option grants during the period presented ranged from 125% to 134% for volatility and a risk free rate of 1.39% to 1.71% and an expected term of approximately six years.
	We use the simplified method for all grants to estimate the expected term of the option. We assume that stock options will be exercised evenly over the period from vesting until the awards expire. As such, the assumed period for each vesting tranche is computed separately and then averaged together to determine the expected term for the award. Because of our limited stock exercise activity we did not rely on our historical exercise data. There were 50,000 options granted during the six months ended September 30, 2014. At September 30, 2014, 1,697,006 shares of common stock were available for grant under the Plan. The following table summarizes information about options for the most recent annual income statements presented:
		Number Of		Weighted		Aggregate		Weighted
				Average		Intrinsic		Average
								Remaining
								Contractual Life
		Options		Exercise Price		Value		(in years)
	Outstanding at 3/31/2014	1,355,500		$	1.014	$	329,025	7.32
	Granted	50,000		$	0.62	—		—
	Forfeited	(200,000	)	$	0.678	—		—
	Outstanding at 9/30/2014	1,205,500		$	1.028	$	—	6.56
	Vested or expected to vest 9/30/2014	1,205,500		$	1.028	$	—	6.56
	Exercisable at 9/30/2014	860,499		$	1.112	$	—	6.28
	At September 30, 2014, there was $140,542 of total unrecognized compensation cost related to stock options. These costs are expected to be recognized over the next 21 months. The total fair value of shares vested during the six months ended September 30, 2014 was $178,685. The following table summarizes the activity of our stock options outstanding but not vested for the three months ended June 30, 2014:
		Number of		Weighted
		Options		Average
	Outstanding at 3/31/2014	621,333		$	0.967
	Granted	50,000		$	0.62
	Vested	(178,665	)	$	1
	Forfeited	(116,667	)	$	0.678
	Expired	(31,000	)	$	1.96
	Outstanding at 9/30/2014	345,001		$	0.877
	We made a discretionary grant outside of the Plan on June 13, 2013 of 200,000 options at an exercise price of $0.67 per share, the fair market value on the date of grant, to our non-employee directors in recognition of their additional services while we seek a permanent chief executive officer. The options have a term of ten years and will vest in three equal installment amounts on each of the grant date and first anniversaries of the grants and are subject to continuous service as members of the board through the second anniversary of the grant date. Although the grants were made outside of the Plan, the terms of the options are the same as those issued under the Plan.

CONCENTRATION_OF_CREDIT_RISK_A

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	6 Months Ended
	Sep. 30, 2014
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	'
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	'
	NOTE 14 – CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
	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 September 30, 2014, there were accounts receivable balances outstanding from four customers comprising 72% of the total receivables balance. The following table sets forth information as to accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of:
		September 30, 2014				March 31, 2014
	Customer	Dollars		Percent		Dollars		Percent
	A	$	1,149,948	56	%	$	255,360	11	%
	B	$	318,167	16	%	$	*	*
	C	$	*	*		$	750,146	33	%
	D	$	*	*		$	312,576	14	%
	*customer total is less than 10%
	We have been dependent in each year on a small number of customers who generate a significant portion of our business, and these customers 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 revenue for the six months ended:
		September 30, 2014				September 30, 2013
	Customer	Dollars		Percent		Dollars		Percent
	A	$	3,000,494	28	%	$	2,991,169	24	%
	B	$	1,762,985	16	%	$	*	*	%
	C	$	1,176,129	11	%	$	*	*	%
	*customer total is less than 10%

SEGMENT_INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Sep. 30, 2014
SEGMENT INFORMATION	'
SEGMENT INFORMATION	'
	NOTE 15 – SEGMENT INFORMATION
	We operate our business under one segment, large scale fabricated and machined metal components and systems equipment. A significant amount of our operations, assets and customers are located in the United States. The following table presents our geographic information (net sales and net property, plant and equipment) by the country in which the legal subsidiary is domiciled and assets are located:
		Net Sales				Property, Plant and Equipment, Net
		Six months		Six months		September 30,		March 31,
		ended		ended		2014		2014
		September 30, 2014		September 30, 2013
	United States	$	10,006,945	$	12,075,203	$	6,115,565	$	6,485,491
	China	$	794,107	$	217,284	$	475	$	3,721

COMMITMENTS

COMMITMENTS	6 Months Ended
	Sep. 30, 2014
COMMITMENTS	'
COMMITMENTS	'
	NOTE 16 – COMMITMENTS
	On July 14, 2014, we entered into a separation, severance and release agreement, or the Separation Agreement, with Robert Francis, who served as President and General Manager of Ranor until June 23, 2014.  The Separation Agreement amends Mr. Francis’ existing Employment Agreement, dated January 27, 2012.  Pursuant to the Separation Agreement, Mr. Francis will provide transition services as a consultant to the Company and will be paid an amount equal to $19,166.66 on a monthly basis for three months.  Mr. Francis’ other benefits, including health and medical benefits, under the Employment Agreement were discontinued after June 23, 2014. At September 30, 2014 we still owed $9,583 under the Separation Agreement.
	We have employment agreements with our executive officers. Such agreements provide for minimum salary levels, adjusted annually, as well as for incentive bonuses that are payable if specified company goals are attained. The aggregate annual commitment at September 30, 2014 for future compensation during the next twelve months, excluding bonuses, was approximately $0.9 million.

EARNINGS_PER_SHARE_EPS

EARNINGS PER SHARE (EPS)	6 Months Ended
	Sep. 30, 2014
EARNINGS PER SHARE (EPS)	'
EARNINGS PER SHARE (EPS)	'
	NOTE 17 – EARNINGS PER SHARE (EPS)
	Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of dilutive potential common shares. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted loss per share computations, as required under FASB ASC 260.
		Three Months			Three Months			Six Months			Six Months
		ended			ended			ended			ended
		September 30,			September 30,			September 30,			September 30,
		2014			2013			2014			2013
	Basic EPS
	Net Loss	$	(648,770	)	$	(818,670	)	$	(1,919,839	)	$	(2,242,575	)
	Weighted average number of shares outstanding	24,669,958			19,956,871			24,336,018			19,956,871
	Basic loss per share	$	(0.03	)	$	(0.04	)	$	(0.08	)	$	(0.11	)
	Diluted EPS
	Net Loss	$	(648,770	)	$	(818,670	)	$	(1,919,839	)	$	(2,242,575	)
	Dilutive effect of stock options, warrants and preferred stock	—			—			—			—
	Diluted weighted average shares	24,669,958			19,956,871			24,336,018			19,956,871
	Diluted loss per share	$	(0.03	)	$	(0.04	)	$	(0.08	)	$	(0.11	)
	All potential common share 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 EPS. For the three and six month periods ended September 30, 2014, there were 2,105,467 and 2,491,658 shares, respectively, and for the three and six months ended September 30, 2013 there were 5,011,341 and 5,359,626 shares, respectively, of potentially anti-dilutive stock options, warrants and convertible preferred stock, none of which were included in the EPS calculations above.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Sep. 30, 2014
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	NOTE 18 – SUBSEQUENT EVENTS
	On October 6, 2014, GT Advanced Technologies, Inc., or GTAT, together with certain of its direct and indirect subsidiaries, commenced voluntary cases under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire.   GTAT’s bankruptcy filing causes an automatic stay in any arbitration proceedings in which GTAT is involved, including the arbitration proceeding with Ranor, Inc., or the Ranor arbitration, as previously described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014 and the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014, filed with the Securities and Exchange Commission on July 15, 2014 and August 18, 2014, respectively.  The automatic stay results in the American Arbitration Association suspending administration of the Ranor Arbitration and the Company’s claim in the Ranor Arbitration is now considered an unsecured creditor claim within GTAT’s overall bankruptcy proceedings.
	While any payments to the Company as a result of the claim by Ranor were not certain prior to the GTAT bankruptcy, as a result of the GTAT bankruptcy, the timing of any determination in the Ranor Arbitration is uncertain and there is a significant risk that even if the Ranor Arbitration is settled or decided in favor of the Company, GTAT will not have the ability to make any award payments to the Company.  In light of such uncertainty, the Company is continuing to explore various financing alternatives to enhance the Company’s financial position and ensure the Company’s continued liquidity.

SIGNIFICANT_ACCOUNTING_POLICIE1

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2014
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	'
Basis of Presentation and Consolidation	'
	Basis of Presentation
	The accompanying condensed consolidated financial statements include the accounts of TechPrecision, WCMC and Ranor. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheet as of September 30, 2014, the condensed consolidated statements of operations and comprehensive loss for the three and six month periods ended September 30, 2014 and 2013, and the condensed consolidated statements of cash flows for the six months ended September 30, 2014 and 2013 are unaudited, but in the opinion of management, include all adjustments that are necessary for a fair presentation of our financial statements for interim periods in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The results of operations for an interim period are not necessarily indicative of the results of operations to be expected for the fiscal year.
	The Notes to Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, for Quarterly Reports on Form 10-Q. Certain information and note 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 our consolidated financial statements included with our Annual Report on Form 10-K, or 2014 Form 10-K, filed with the SEC for the year ended March 31, 2014.

PROPERTY_PLANT_AND_EQUIPMENT_T

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Sep. 30, 2014
PROPERTY, PLANT AND EQUIPMENT	'
Schedule of components of property, plant and equipment, net	'
		September 30, 2014			March 31, 2014
	Land	$	110,113		$	110,113
	Building and improvements	3,261,680			3,261,680
	Machinery equipment, furniture and fixtures	8,943,146			8,889,051
	Equipment under capital leases	65,568			65,568
	Total property, plant and equipment	12,380,507			12,326,412
	Less: accumulated depreciation	(6,264,467		)	(5,837,200		)
	Total property, plant and equipment, net	$	6,116,040		$	6,489,212

COSTS_INCURRED_ON_UNCOMPLETED_1

COSTS INCURRED ON UNCOMPLETED CONTRACTS (Tables)	6 Months Ended
	Sep. 30, 2014
COSTS INCURRED ON UNCOMPLETED CONTRACTS	'
Schedule of costs incurred on uncompleted contracts	'
		September 30,			March 31,
		2014			2014
	Cost incurred on uncompleted contracts, beginning balance	$	9,960,072		$	6,180,839
	Total cost incurred on contracts during the period	6,426,442			25,579,089
	Less cost of sales, during the period	(9,715,097		)	(21,799,856		)
	Cost incurred on uncompleted contracts, ending balance	$	6,671,417		$	9,960,072
	Billings on uncompleted contracts, beginning balance	$	4,702,070		$	1,882,546
	Plus: Total billings incurred on contracts, during the period	8,859,578			23,887,587
	Less: Contracts recognized as revenue, during the period	(10,801,052		)	(21,068,063		)
	Billings on uncompleted contracts, ending balance	$	2,760,596		$	4,702,070
	Cost incurred on uncompleted contracts, ending balance	$	6,671,417		$	9,960,072
	Billings on uncompleted contracts, ending balance	2,760,596			4,702,070
	Costs incurred on uncompleted contracts, in excess of progress billings	$	3,910,821		$	5,258,002

OTHER_CURRENT_ASSETS_Tables

OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Sep. 30, 2014
OTHER CURRENT ASSETS	'
Schedule of other current assets	'
		September 30,		March 31,
		2014		2014
	Payments advanced to suppliers	$	160,860	$	196,534
	Prepaid insurance	134,243		229,727
	Collateral deposit	76,852		—
	Other	30,290		34,984
	Total	$	402,245	$	461,245

OTHER_NONCURRENT_ASSETS_Tables

OTHER NONCURRENT ASSETS (Tables)	6 Months Ended
	Sep. 30, 2014
OTHER NONCURRENT ASSETS	'
Schedule of other noncurrent assets	'
		September 30,			March 31,
		2014			2014
	Deferred loan costs	$	415,753		$	105,395
	Deferred loan costs, amortization of	(126,320		)	—
	Total	$	289,433		$	105,395

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	6 Months Ended
	Sep. 30, 2014
ACCRUED EXPENSES	'
Schedule of accrued expenses	'
		September 30,		March 31,
		2014		2014
	Accrued compensation	$	612,371	$	320,419
	Interest rate swaps market value	196,096		231,783
	Provision for contract losses	2,682,498		3,259,103
	Other	66,064		81,723
	Total	$	3,557,029	$	3,893,028

DEBT_Tables

DEBT (Tables)	6 Months Ended
	Sep. 30, 2014
DEBT	'
Schedule of outstanding debt obligations	'
		September 30,		March 31,
		2014		2014
	Debt obligations outstanding were classified as of:
	Credit Loan Note due November 2018	$	3,842,593	$	—
	MDFA Series A Bonds due January 2021	1,447,261		3,559,375
	MDFA Series B Bonds due January 2018	—		599,634
	Obligations under capital leases	11,091		10,762
	Total Short-term debt	$	5,300,945	$	4,169,771
	Long-term obligations under capital leases	32,399		38,071
	Total Debt	$	5,333,344	$	4,207,842

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Sep. 30, 2014
STOCK BASED COMPENSATION	'
Summary of information about options for the most recent annual income statements presented	'
		Number Of		Weighted		Aggregate		Weighted
				Average		Intrinsic		Average
								Remaining
								Contractual Life
		Options		Exercise Price		Value		(in years)
	Outstanding at 3/31/2014	1,355,500		$	1.014	$	329,025	7.32
	Granted	50,000		$	0.62	—		—
	Forfeited	(200,000	)	$	0.678	—		—
	Outstanding at 9/30/2014	1,205,500		$	1.028	$	—	6.56
	Vested or expected to vest 9/30/2014	1,205,500		$	1.028	$	—	6.56
	Exercisable at 9/30/2014	860,499		$	1.112	$	—	6.28
Summary of activity of stock options outstanding but not vested	'
		Number of		Weighted
		Options		Average
	Outstanding at 3/31/2014	621,333		$	0.967
	Granted	50,000		$	0.62
	Vested	(178,665	)	$	1
	Forfeited	(116,667	)	$	0.678
	Expired	(31,000	)	$	1.96
	Outstanding at 9/30/2014	345,001		$	0.877

CONCENTRATION_OF_CREDIT_RISK_A1

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) (Customer Concentration Risk)	6 Months Ended
	Sep. 30, 2014
Receivable balance	'
Concentration of credit risk and major customers	'
Schedule of concentration of risk by factors	'
		September 30, 2014				March 31, 2014
	Customer	Dollars		Percent		Dollars		Percent
	A	$	1,149,948	56	%	$	255,360	11	%
	B	$	318,167	16	%	$	*	*
	C	$	*	*		$	750,146	33	%
	D	$	*	*		$	312,576	14	%
	*customer total is less than 10%
Net sales	'
Concentration of credit risk and major customers	'
Schedule of concentration of risk by factors	'
		September 30, 2014				September 30, 2013
	Customer	Dollars		Percent		Dollars		Percent
	A	$	3,000,494	28	%	$	2,991,169	24	%
	B	$	1,762,985	16	%	$	*	*	%
	C	$	1,176,129	11	%	$	*	*	%
	*customer total is less than 10%

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	6 Months Ended
	Sep. 30, 2014
SEGMENT INFORMATION	'
Schedule of geographic information (net sales and net property, plant and equipment) by the country in which the legal subsidiary is domiciled and assets are located	'
		Net Sales				Property, Plant and Equipment, Net
		Six months		Six months		September 30,		March 31,
		ended		ended		2014		2014
		September 30, 2014		September 30, 2013
	United States	$	10,006,945	$	12,075,203	$	6,115,565	$	6,485,491
	China	$	794,107	$	217,284	$	475	$	3,721

EARNINGS_PER_SHARE_EPS_Tables

EARNINGS PER SHARE (EPS) (Tables)	6 Months Ended
	Sep. 30, 2014
EARNINGS PER SHARE (EPS)	'
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted loss per share computations	'
		Three Months			Three Months			Six Months			Six Months
		ended			ended			ended			ended
		September 30,			September 30,			September 30,			September 30,
		2014			2013			2014			2013
	Basic EPS
	Net Loss	$	(648,770	)	$	(818,670	)	$	(1,919,839	)	$	(2,242,575	)
	Weighted average number of shares outstanding	24,669,958			19,956,871			24,336,018			19,956,871
	Basic loss per share	$	(0.03	)	$	(0.04	)	$	(0.08	)	$	(0.11	)
	Diluted EPS
	Net Loss	$	(648,770	)	$	(818,670	)	$	(1,919,839	)	$	(2,242,575	)
	Dilutive effect of stock options, warrants and preferred stock	—			—			—			—
	Diluted weighted average shares	24,669,958			19,956,871			24,336,018			19,956,871
	Diluted loss per share	$	(0.03	)	$	(0.04	)	$	(0.08	)	$	(0.11	)

DESCRIPTION_OF_BUSINESS_Detail

DESCRIPTION OF BUSINESS (Details) (USD $)

3 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2014

Mar. 31, 2013

30-May-14

30-May-14

Sep. 30, 2014

Sep. 30, 2014

Mar. 31, 2014

30-May-14

30-May-14

Sep. 30, 2014

Mar. 31, 2014

30-May-14

Mar. 31, 2014

Sep. 30, 2014

item

LSA

Second Forbearance Agreement

Fourth Forbearance Agreement

Loan Agreement, Series A Bonds, and LSA

Loan Agreement, Series A Bonds, and LSA

Credit Loan Note due November 2018

Credit Loan Note due November 2018

Loan agreement with bank

Loan agreement with bank

Loan agreement with bank

Loan agreement with bank

Loan agreement with bank

Maximum

LSA

LSA

LSA

First Forbearance Agreement

Fourth Forbearance Agreement

DESCRIPTION OF BUSINESS

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of industry groups in which products are sold

'

'

3

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Period of written notice to accelerate payment of the debt in full in case of default

'

'

'

'

'

'

'

'

'

'

'

'

'

'60 days

'

'

'60 days

'60 days

Amounts reclassified as a current liability due to default, under the loan and security agreement

'

'

'

'

'

'

'

'

'

$5,300,000

'

'

'

'

$4,200,000

'

'

'

Amount borrowed

'

'

'

'

'

'

'

'

'

5,300,000

4,200,000

'

4,150,000

'

'

'

'

'

Stated interest rate to be used as variable interest basis

'

'

'

'

'

'

'

'

'

'

'

'

7.50%

'

'

'

'

'

Percentage of sum of variable rate and basis spread used to calculate interest rate

'

'

'

'

'

'

'

'

65.00%

'

'

'

'

'

'

'

'

'

Interest margin (as a percent)

'

'

'

'

'

'

'

'

16.00%

'

'

3.30%

'

'

'

'

'

'

Variable interest basis

'

'

'

'

'

'

'

'

'one month LIBOR

'

'

'six-month LIBOR

'

'

'

'

'

'

Maximum amount of debt that can be defaulted

'

'

'

'

'

'

5,000

'

'

'

'

'

'

'

'

'

'

'

Fees and associated costs

'

'

'

'

'

'

240,000

'

'

'

'

'

'

'

'

'

'

'

Repayment of debt

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

2,650,000

'

'

Loan proceeds retained for general corporate purposes

'

'

'

'

'

'

1,270,000

'

'

'

'

'

'

'

'

'

'

'

Percentage of accounts receivable at risk of timely payment due to contract dispute

'

'

55.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Contract loss provision

2,682,498

'

2,682,498

'

3,259,103

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of work in progress at risk of timely payment due to contract dispute

'

'

24.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of customer in contact dispute

'

'

1

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Leverage ratio covenant

'

'

'

'

'

'

'

1.75

'

'

'

'

'

'

'

'

'

'

Actual leverage ratio

'

'

'

'

'

'

'

'

'

'

'

'

'

4.4

3.81

'

'

'

Operating losses

-648,770

-818,670

-1,919,839

-2,242,575

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Cash and cash equivalents

849,264

1,532,026

849,264

1,532,026

1,086,701

3,075,376

'

'

'

'

'

'

'

'

'

'

'

'

Cash deposits located in China, which may not be able to be repatriated for use in the U.S. without undue cost or expense

15,613

'

15,613

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Total current liabilities

11,970,393

'

11,970,393

'

12,412,873

'

'

'

'

'

'

'

'

'

'

'

'

'

Restricted cash with the Bank that could be used toward satisfying obligation under the loan agreement

$180,000

'

$180,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

PROPERTY_PLANT_AND_EQUIPMENT_D

PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014
PROPERTY, PLANT AND EQUIPMENT	'	'	'	'	'
Total property, plant and equipment	$12,380,507	'	$12,380,507	'	$12,326,412
Less: accumulated depreciation	-6,264,467	'	-6,264,467	'	-5,837,200
Total property, plant and equipment, net	6,116,040	'	6,116,040	'	6,489,212
Depreciation expense	211,751	220,604	427,267	469,044	'
Land	'	'	'	'	'
PROPERTY, PLANT AND EQUIPMENT	'	'	'	'	'
Total property, plant and equipment	110,113	'	110,113	'	110,113
Building and improvements	'	'	'	'	'
PROPERTY, PLANT AND EQUIPMENT	'	'	'	'	'
Total property, plant and equipment	3,261,680	'	3,261,680	'	3,261,680
Machinery equipment, furniture and fixtures	'	'	'	'	'
PROPERTY, PLANT AND EQUIPMENT	'	'	'	'	'
Total property, plant and equipment	8,943,146	'	8,943,146	'	8,889,051
Equipment under capital leases	'	'	'	'	'
PROPERTY, PLANT AND EQUIPMENT	'	'	'	'	'
Total property, plant and equipment	$65,568	'	$65,568	'	$65,568

COSTS_INCURRED_ON_UNCOMPLETED_2

COSTS INCURRED ON UNCOMPLETED CONTRACTS (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014
Cost incurred on uncompleted contracts	'	'	'	'	'
Cost incurred on uncompleted contracts, beginning balance	'	'	$9,960,072	$6,180,839	$6,180,839
Total cost incurred on contracts during the period	'	'	6,426,442	'	25,579,089
Less cost of sales, during the period	-3,702,996	-4,468,523	-9,715,097	-11,144,972	-21,799,856
Cost incurred on uncompleted contracts, ending balance	6,671,417	'	6,671,417	'	9,960,072
Billings on uncompleted contracts	'	'	'	'	'
Billings on uncompleted contracts, beginning balance	'	'	4,702,070	1,882,546	1,882,546
Plus: Total billings incurred on contracts, during the period	'	'	8,859,578	'	23,887,587
Less: Contracts recognized as revenue, during the period	-4,570,711	-5,195,795	-10,801,052	-12,292,487	-21,068,063
Billings on uncompleted contracts, ending balance	2,760,596	'	2,760,596	'	4,702,070
Cost incurred on uncompleted contracts	'	'	'	'	'
Cost incurred on uncompleted contracts, ending balance	6,671,417	'	6,671,417	'	9,960,072
Billings on uncompleted contracts, ending balance	2,760,596	'	2,760,596	'	4,702,070
Costs incurred on uncompleted contracts, in excess of progress billings	3,910,821	'	3,910,821	'	5,258,002
Deferred revenues	$268,925	'	$268,925	'	$1,461,689

OTHER_CURRENT_ASSETS_Details

OTHER CURRENT ASSETS (Details) (USD $)	Sep. 30, 2014	Mar. 31, 2014
OTHER CURRENT ASSETS	'	'
Payments advanced to suppliers	$160,860	$196,534
Prepaid insurance	134,243	229,727
Collateral deposits	76,852	'
Other	30,290	34,984
Total	$402,245	$461,245

OTHER_NONCURRENT_ASSETS_Detail

OTHER NONCURRENT ASSETS (Details) (USD $)	Sep. 30, 2014	Mar. 31, 2014
OTHER NONCURRENT ASSETS	'	'
Deferred loan costs	$415,753	$105,395
Deferred loan costs, amortization of	-126,320	'
Other Assets, Noncurrent, Total	$289,433	$105,395

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	6 Months Ended
	Sep. 30, 2014	Mar. 31, 2014
ACCRUED EXPENSES	'	'
Accrued compensation	$612,371	$320,419
Interest rate swaps market value	196,096	231,783
Provision for contract losses	2,682,498	3,259,103
Other	66,064	81,723
Total	3,557,029	3,893,028
Cumulative provision for customer purchase agreement losses not offset against related costs accumulated on the balance sheet.	2,400,000	'
Unpaid Executive Chairman compensation and Board of Director fees	$220,000	'

DEBT_Details

DEBT (Details) (USD $)

3 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

0 Months Ended

1 Months Ended

6 Months Ended

9 Months Ended

Sep. 30, 2014

Sep. 30, 2014

Mar. 31, 2014

Jan. 16, 2014

30-May-14

Sep. 30, 2014

Mar. 31, 2014

Jan. 03, 2011

30-May-14

Dec. 30, 2010

Sep. 30, 2014

Mar. 31, 2014

Dec. 30, 2010

Jan. 16, 2014

Sep. 30, 2014

Dec. 30, 2010

Sep. 30, 2014

Mar. 31, 2014

Dec. 30, 2010

Jan. 16, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

30-May-14

30-May-14

Sep. 30, 2014

Mar. 31, 2014

Jan. 16, 2014

30-May-14

Sep. 30, 2014

Mar. 31, 2014

Apr. 30, 2012

Sep. 30, 2014

Dec. 31, 2013

Mar. 31, 2014

First Debt Forbearance and Modification Agreement

Maximum

MLSA

MLSA

MLSA

LSA

Bonds financing

MDFA Series A Bonds due January 2021

MDFA Series A Bonds due January 2021

MDFA Series A Bonds due January 2021

MDFA Series A Bonds due January 2021

MDFA Series A Bonds due January 2021

MDFA Series A Bonds due January 2021

MDFA Series A Bonds due January 2021

MDFA Series B Bonds due January 2018

MDFA Series B Bonds due January 2018

MDFA Series B Bonds due January 2018

MDFA Series B Bonds due January 2018

MDFA Series B Bonds due January 2018

Credit Loan Note due November 2018

Credit Loan Note due November 2018

Credit Loan Note due November 2018

Loan agreement with bank

Loan agreement with bank

Loan agreement with bank

Loan agreement with bank

Loan Agreement, Series A Bonds, and LSA

Loan Agreement, Series A Bonds, and LSA

Long-term obligations under capital leases

Long-term obligations under capital leases

Long-term obligations under capital leases

Long-term obligations under capital leases

Second Forbearance Agreement

item

First Debt Forbearance and Modification Agreement

First Debt Forbearance and Modification Agreement

Ranor, Inc.

LSA

First Debt Forbearance and Modification Agreement

First Debt Forbearance and Modification Agreement

LSA

LSA

LSA

First Debt Forbearance and Modification Agreement

LSA

sqft

Debt and capital lease obligations

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Total short-term debt

$5,300,945

$5,300,945

$4,169,771

'

'

'

'

'

'

'

$1,447,261

$3,559,375

'

'

'

'

'

$599,634

'

'

'

'

$3,842,593

'

'

'

'

'

'

'

'

'

$11,091

'

$10,762

Long-term obligations under capital leases

32,399

32,399

38,071

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Total debt

5,333,344

5,333,344

4,207,842

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Stated interest rate to be used as variable interest basis

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

7.50%

'

'

'

'

'

'

'

'

'

'

Percentage of sum of variable rate and basis spread used to calculate interest rate

'

'

'

'

'

65.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Variable interest basis

'

'

'

'

'

'one month LIBOR

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'six-month LIBOR

'

'

'

'

'

'

'

'

'

'

'

Interest margin (as a percent)

'

'

'

'

'

5.75%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3.30%

'

'

'

'

'

'

'

'

'

'

'

Maximum amount of debt that can be defaulted

'

'

'

'

'

'

'

'

5,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Fees and associated costs

'

'

'

'

'

'

'

'

240,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Repayment of debt

'

'

'

'

'

'

'

'

'

'

'

'

'

445,671

'

'

2,000,000

'

'

'

'

576,419

'

'

'

'

'

394,329

2,650,000

'

'

'

'

'

'

Loan proceeds retained for general corporate purposes

'

'

'

'

'

'

'

'

1,270,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reimbursement of appraisal costs due to the bank

'

'

'

11,240

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Increase in interest rate (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

2.00%

'

'

'

'

'

2.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Increase (Decrease) in Cash Collateral for Borrowed Securities

'

'

'

840,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Restricted cash collateral deposit applied to pay off obligation under the forbearance agreement

'

'

'

840,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Forbearance fees (as a percent)

'

'

'

3.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amount of forbearance fee payable in installments

'

'

'

128,433

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Leverage ratio covenant

'

'

'

'

1.75

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Actual leverage ratio

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

4.4

3.81

'

'

'

'

'

'

'

'

Interest rate (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

6.10%

'

'

'

'

'

5.60%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Breakage fee

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

29,448

'

'

'

'

'

'

'

'

'

'

'

'

'

Period of written notice to accelerate payment of the debt in full in case of default

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'60 days

'

'

'

'

'

'

'

'

'

Aggregate principal amount

'

'

'

'

'

'

'

'

'

6,200,000

'

'

4,250,000

'

'

'

'

'

1,950,000

'

'

'

'

'

4,150,000

'

'

'

'

5,300,000

4,200,000

'

'

'

'

Other comprehensive income loss reclassifications for cash flow hedges

219,359

248,464

'

'

'

248,464

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Outstanding fair value interest rate swaps

196,096

196,096

231,783

'

'

271,168

196,096

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Effective interest rate at end of period (as a percent)

'

'

'

'

'

4.49%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amounts reclassified as a current liability due to default, under the loan and security agreement

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

4,200,000

'

'

5,300,000

'

'

'

'

'

Area of land financed for expansion (in square feet)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

19,500

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of interest rate swap transactions

'

'

'

'

'

'

'

2

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amount of the lease recorded in property, plant and equipment, net

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

40,654

'

46,420

Capital lease term

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'63 months

'

'

'

Capital lease term extension

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'9 months

'

Capital lease interest rate (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

6.00%

'

Capital lease monthly payment

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$1,117

$860

'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
INCOME TAXES	'	'
Income tax expense (benefit)	($152,792)	($152,792)
Federal net operating loss carry-forward	$7,600,000	$7,600,000

PROFIT_SHARING_PLAN_Details

PROFIT SHARING PLAN (Details) (Ranor, Inc., USD $)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Ranor, Inc.	'	'
PROFIT SHARING PLAN	'	'
Eligibility for employer matching contributions, period of service	'90 days	'
Matching contributions made by the company	$4,234	$10,703

CAPITAL_STOCK_Details

CAPITAL STOCK (Details) (USD $)	1 Months Ended	6 Months Ended
	Dec. 31, 2009	Sep. 30, 2014	Mar. 31, 2014
		item
Capital stock	'	'	'
Number of authorized shares	'	10,000,000	10,000,000
Shares converted into common stock	'	550,000	'
Number of shares of common stock issued for converted preferred stock	'	718,954	'
Number of authorized common shares	'	90,000,000	90,000,000
Number of outstanding common shares	'	24,669,958	23,951,004
Minimum	'	'	'
Capital stock	'	'	'
Number of series of preferred stock	'	1	'
Series A Convertible Preferred Stock	'	'	'
Capital stock	'	'	'
Number of series of preferred stock	'	1	'
Conversion ratio prior to adjustment	1	'	'
Conversion ratio	1.3072	'	'
Effective conversion price (in dollars per share)	$0.22	'	'
Number of shares of common stock issuable upon conversion of convertible preferred stock	'	2,519,638	3,238,598
Required price per share upon liquidation	'	$0.28	'
Shares converted into common stock	'	550,000	'
Number of shares of common stock issued for converted preferred stock	'	718,954	'
Shares outstanding	'	1,927,508	2,477,508

STOCK_BASED_COMPENSATION_Detai

STOCK BASED COMPENSATION (Details) (USD $)	6 Months Ended	12 Months Ended	6 Months Ended		0 Months Ended
	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2014	Sep. 30, 2014	Jun. 13, 2013
			Director	Director	Non-employee directors
				Minimum	item
				item
Share based compensation	'	'	'	'	'
Number of directors on a committee to administer the plan	'	'	'	2	'
Maximum number of shares authorized to be issued	3,300,000	'	'	'	'
Options granted (in shares)	50,000	'	50,000	'	200,000
Annual grants (in shares)	'	'	10,000	'	'
Exercise price of shares granted (in dollars per share)	$0.62	'	'	'	$0.67
Vesting period	'	'	'	'	'10 years
Number of equal annual installments in which options will vest	'	'	'	'	3
Assumption used in valuation of stock options	'	'	'	'	'
Yield term of U.S. Treasury issues on which risk free interest rate is based	'5 years	'	'	'	'
Volatility rate, minimum (as a percent)	125.00%	'	'	'	'
Volatility rate, maximum (as a percent)	134.00%	'	'	'	'
Risk free interest rate, minimum (as a percent)	1.39%	'	'	'	'
Risk free interest rate, maximum (as a percent)	1.71%	'	'	'	'
Expected term	'6 years	'	'	'	'
Additional general disclosure	'	'	'	'	'
Common stock available for grant under plan (in shares)	1,697,006	'	'	'	'
Number Of Options	'	'	'	'	'
Outstanding at the beginning of the period (in shares)	1,355,500	'	'	'	'
Granted (in shares)	50,000	'	50,000	'	200,000
Forfeited (in shares)	-200,000	'	'	'	'
Outstanding at the end of the period (in shares)	1,205,500	1,355,500	'	'	'
Vested or expected to vest at the end of the period (in shares)	1,205,500	'	'	'	'
Exercisable at the end of the period (in shares)	860,499	'	'	'	'
Weighted Average Exercise Price	'	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$1.01	'	'	'	'
Granted (in dollars per share)	$0.62	'	'	'	$0.67
Forfeited (in dollars per share)	$0.68	'	'	'	'
Outstanding at the end of the period (in dollars per share)	$1.03	$1.01	'	'	'
Vested or expected to vest at the end of the period (in dollars per share)	$1.03	'	'	'	'
Exercisable at the end of the period (in dollars per share)	$1.11	'	'	'	'
Aggregate Intrinsic Value	'	'	'	'	'
Outstanding at the end of the period	'	$329,025	'	'	'
Weighted Average Remaining Contractual Life	'	'	'	'	'
Outstanding at the end of the period	'6 years 6 months 22 days	'7 years 3 months 26 days	'	'	'
Vested or expected to vest at the end of the period	'6 years 6 months 22 days	'	'	'	'
Exercisable at the end of the period	'6 years 3 months 11 days	'	'	'	'
Additional information on stock options	'	'	'	'	'
Unrecognized compensation cost related to stock options	140,542	'	'	'	'
Period of recognition of unrecognized compensation expense	'21 months	'	'	'	'
Fair value of shares vested	$178,685	'	'	'	'
Stock options outstanding but not vested, Number of Options	'	'	'	'	'
Outstanding at the beginning of the period (in shares)	621,333	'	'	'	'
Granted (in shares)	50,000	'	50,000	'	200,000
Vested (in shares)	-178,665	'	'	'	'
Forfeited (in shares)	-116,667	'	'	'	'
Expired (in shares)	-31,000	'	'	'	'
Outstanding at the end of the period (in shares)	345,001	621,333	'	'	'
Stock options outstanding but not vested, Weighted Average Exercise Price	'	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	'	$0.97	'	'	'
Granted (in dollars per share)	$0.62	'	'	'	$0.67
Vested (in dollars per share)	$1	'	'	'	'
Forfeited (in dollars per share)	$0.68	'	'	'	'
Expired (in dollars per share)	$1.96	'	'	'	'
Outstanding at the end of the period (in dollars per share)	$0.88	'	'	'	'

CONCENTRATION_OF_CREDIT_RISK_A2

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014
Concentration of credit risk and major customers	'	'	'	'	'
Accounts receivable balance	$2,051,843	'	$2,051,843	'	$2,280,469
Net sales	4,570,711	5,195,795	10,801,052	12,292,487	21,068,063
Receivable balance | Customer Concentration Risk	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Number of major customers	'	'	4	'	'
Concentration risk percentage	'	'	72.00%	'	'
Receivable balance | Customer Concentration Risk | Customer A	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Accounts receivable balance	1,149,948	'	1,149,948	'	255,360
Concentration risk percentage	'	'	56.00%	'	11.00%
Receivable balance | Customer Concentration Risk | Customer B	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Accounts receivable balance	318,167	'	318,167	'	'
Concentration risk percentage	'	'	16.00%	'	'
Receivable balance | Customer Concentration Risk | Customer C	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Accounts receivable balance	'	'	'	'	750,146
Concentration risk percentage	'	'	'	'	33.00%
Receivable balance | Customer Concentration Risk | Customer D	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Accounts receivable balance	'	'	'	'	312,576
Concentration risk percentage	'	'	'	'	14.00%
Net sales | Customer Concentration Risk | Customer A	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Net sales	'	'	3,000,494	2,991,169	'
Concentration risk percentage	'	'	28.00%	24.00%	'
Net sales | Customer Concentration Risk | Customer B	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Net sales	'	'	1,762,985	'	'
Concentration risk percentage	'	'	16.00%	'	'
Net sales | Customer Concentration Risk | Customer C	'	'	'	'	'
Concentration of credit risk and major customers	'	'	'	'	'
Net sales	'	'	$1,176,129	'	'
Concentration risk percentage	'	'	11.00%	'	'

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014
			item
SEGMENT INFORMATION	'	'	'	'	'
Number of operating segments	'	'	1	'	'
SEGMENT INFORMATION	'	'	'	'	'
Net Sales	$4,570,711	$5,195,795	$10,801,052	$12,292,487	$21,068,063
Property, Plant and Equipment, Net	6,116,040	'	6,116,040	'	6,489,212
United States	'	'	'	'	'
SEGMENT INFORMATION	'	'	'	'	'
Net Sales	'	'	10,006,945	12,075,203	'
Property, Plant and Equipment, Net	6,115,565	'	6,115,565	'	6,485,491
China	'	'	'	'	'
SEGMENT INFORMATION	'	'	'	'	'
Net Sales	'	'	794,107	217,284	'
Property, Plant and Equipment, Net	$475	'	$475	'	$3,721

COMMITMENTS_Details

COMMITMENTS (Details) (USD $)	Sep. 30, 2014	Jul. 14, 2014
		Separation Agreement
		Ranor, Inc.
		President and General Manager
COMMITMENTS	'	'
Aggregate annual commitment for future salaries during the next twelve months, excluding bonuses	$900,000	'
Employment agreements	'	'
Monthly consulting fee	'	19,166.66
Term of monthly consulting payments	'	'3 months
Future amount due under terms of the agreement	$9,583	'

EARNINGS_PER_SHARE_EPS_Details

EARNINGS PER SHARE (EPS) (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Basic EPS	'	'	'	'
Net loss	($648,770)	($818,670)	($1,919,839)	($2,242,575)
Weighted average number of shares outstanding	24,669,958	19,956,871	24,336,018	19,956,871
Basic loss per share (in dollars per share)	($0.03)	($0.04)	($0.08)	($0.11)
Diluted EPS	'	'	'	'
Net loss	($648,770)	($818,670)	($1,919,839)	($2,242,575)
Diluted weighted average shares	24,669,958	19,956,871	24,336,018	19,956,871
Diluted loss per share (in dollars per share)	($0.03)	($0.04)	($0.08)	($0.11)
Antidilutive securities excluded from computation of earnings per share amount (in shares)	2,105,467	5,011,341	2,491,658	5,359,626