TechPrecision (TPCS) 10-Q 16 Feb 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2015	Feb. 05, 2016
Document and Entity Information
Entity Registrant Name	TECHPRECISION CORP
Entity Central Index Key	1,328,792
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
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		27,324,593
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 816,301	$ 1,336,325
Accounts receivable, less allowance for doubtful accounts of approximately $25,000 at December 31, 2015 and March 31, 2015	766,564	826,363
Costs incurred on uncompleted contracts, in excess of progress billings	2,798,008	2,008,244
Inventories- raw materials	148,550	134,812
Current deferred taxes	826,697	826,697
Other current assets	464,841	538,253
Total current assets	5,820,961	5,670,694
Property, plant and equipment, net	5,217,048	5,610,041
Other noncurrent assets, net	9,676	45,490
Total assets	11,047,685	11,326,225
Current liabilities:
Accounts payable	1,225,873	1,526,123
Trade notes payable		138,237
Accrued expenses	1,623,254	1,665,658
Advanced claims payment	507,835
Deferred revenues	1,087,179	1,211,506
Short-term debt		2,250,000
Current portion of long-term debt	934,176	933,651
Total current liabilities	5,378,317	7,725,175
Long-term debt, including capital lease	4,035,160	2,485,858
Noncurrent deferred taxes	$ 826,697	$ 826,697
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 -0- and 1,927,508 shares issued and December 31, 2015 and March 31, 2015, respectively (liquidation preference: $0 - December 31, 2015; $549,340 - March 31, 2015)		$ 524,210
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 27,324,593 and 24,669,958 shares issued and outstanding at December 31, 2015 and at March 31, 2015, respectively	$ 2,732	2,467
Additional paid in capital	7,057,807	6,487,589
Accumulated other comprehensive income	23,344	23,561
Accumulated deficit	(6,276,372)	(6,749,332)
Total stockholders' equity	807,511	288,495
Total liabilities and stockholders' equity	$ 11,047,685	$ 11,326,225

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2015	Mar. 31, 2015
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 25,000	$ 25,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
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	27,324,593	24,669,958
Common stock, shares outstanding	27,324,593	24,669,958
Series A Convertible Preferred Stock
Preferred stock, designated as Series A Convertible Preferred Stock	9,890,980	9,890,980
Preferred Stock, Shares Issued	0	1,927,508
Preferred stock, shares outstanding	0	1,927,508
Preferred stock, liquidation preference (in dollars)	$ 0	$ 549,340

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Net sales	$ 3,506,560	$ 3,510,842	$ 11,985,422	$ 14,311,895
Cost of sales	2,434,900	3,169,456	8,223,349	12,884,553
Gross profit	1,071,660	341,386	3,762,073	1,427,342
Selling, general and administrative	768,220	705,059	2,482,465	3,243,968
Income (loss) from operations	303,440	(363,673)	1,279,608	(1,816,626)
Other income (expense)	465	136	1,531	(1,023)
Interest expense (includes OCI reclassifications for cash flow hedges of ($-0-) and ($248,464) in 2014)	(291,908)	(582,202)	(808,209)	(1,200,796)
Interest income	6	21	30	96
Total other expense, net	(291,437)	(582,045)	(806,648)	(1,201,723)
Income (loss) before income taxes	12,003	(945,718)	472,960	(3,018,349)
Income tax benefit (related to OCI reclassification)	0		0	(152,792)
Net income (loss)	12,003	(945,718)	472,960	(2,865,557)
Other comprehensive income, before tax:
Change in unrealized loss on cash flow hedges				(16,680)
Reclassification adjustment for cash flow hedges				248,464
Foreign currency translation adjustments	(1,135)	(4,319)	217	(4,272)
Other comprehensive income, before tax	(1,135)	(4,319)	217	227,512
Tax expense from reclassification adjustment				152,792
Other comprehensive income, net of tax	(1,135)	(4,319)	217	74,720
Comprehensive income (loss)	$ 10,868	$ (950,037)	$ 473,177	$ (2,790,837)
Net income (loss) per share (basic) (in dollars per share)	$ 0	$ (0.04)	$ 0.02	$ (0.12)
Net income (loss) per share (diluted) (in dollars per share)	$ 0	$ (0.04)	$ 0.02	$ (0.12)
Weighted average number of shares outstanding (basic) (in shares)	27,324,593	24,669,958	26,084,080	24,447,736
Weighted average number of shares outstanding (diluted) (in shares)	27,509,980	24,669,958	26,210,206	24,447,736

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Paranthetical) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Dec. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) reclassifications for cash flow hedges	$ 0	$ (248,464)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 472,960	$ (2,865,557)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	582,628	633,741
Amortization of debt issue costs	219,876	177,771
Stock based compensation expense	51,100	196,458
Provision for contract losses	(111,958)	(589,392)
Changes in operating assets and liabilities:
Accounts receivable	59,798	220,258
Costs incurred on uncompleted contracts, in excess of progress billings	(789,764)	2,068,537
Inventories - raw materials	(13,738)	70,586
Other current assets	(110,355)	(214,294)
Other noncurrent assets		105,395
Accounts payable	(438,486)	(908,083)
Accrued expenses	67,709	116,290
Advanced claims payment	507,835
Deferred revenues	(124,327)	(283,575)
Net cash provided by (used in) operating activities	373,278	(1,271,865)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(192,215)	(54,096)
Net cash used in investing activities	(192,215)	(54,096)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings of long-term debt		6,400,000
Repayment of long-term debt	(700,174)	(4,628,174)
Deferred loan costs		(253,975)
Net cash (used in) provided by financing activities	(700,174)	1,517,851
Effect of exchange rate on cash and cash equivalents	(913)	76
Net (decrease) increase in cash and cash equivalents	(520,024)	191,966
Cash and cash equivalents, beginning of period	1,336,325	1,086,701
Cash and cash equivalents, end of period	816,301	1,278,667
Cash paid during the period for:
Interest	525,451	626,962
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:
Notes Payable		279,297
Common Stock
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:
Amount of increase from stock conversions	252	72
Additional Paid in Capital
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:
Amount of increase from stock conversions	$ 523,956	$ 119,828
Series A Convertible Preferred Stock
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:
Number of shares of common stock issued for converted preferred stock	2,519,634	718,954
Shares converted into common stock	1,927,508	550,000

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Dec. 31, 2015
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. Our 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 (WFOE). 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 the aerospace, commercial, defense, medical, and nuclear industries. Liquidity and Capital Resources On December 31, 2015, the Company, Ranor and Revere High Yield Fund, LP, or Revere, entered into a Note and Other Loan Documents Modification Agreement, or the Modification Agreement, to the Term Loan and Security Agreement, or TLSA, dated December 22, 2014, between Revere and Ranor. Pursuant to the TLSA, Revere loaned an aggregate of $2.25 million to Ranor under a term loan note in the aggregate principal amount of $1.5 million, or the First Loan Note, and a term loan note in the aggregate principal amount of $750,000, or the Second Loan Note and, together with the First Loan Note, the Notes. Ranor’s obligations under the TLSA and the Notes are guaranteed by the Company pursuant to a Guaranty Agreement with Revere. The Modification Agreement extended the maturity date of the TLSA and the Notes from December 31, 2015 to January 22, 2016 and provided that Ranor agreed to waive its right to extend the maturity date of the TLSA and the Notes by six months as set forth in the TLSA. In connection with its entry into the Modification Agreement, Ranor was required to pay an exit fee of $67,500 to Revere. On January 22, 2016, the Company and Ranor entered into the Note and Other Loan Documents Modification Agreement No. 2 with Revere, or the Second Modification Agreement, which further amends the TLSA. In connection with the Second Modification Agreement, Ranor executed an Amended and Restated Term Loan Note in the aggregate principal amount of $1.5 million, or the Amended and Restated First Loan Note, and an Amended and Restated Term Loan Note in the aggregate principal amount of $750,000, or the Restated Second Loan Note, and together with the Amended and Restated First Loan Note, the Amended and Restated Notes , each in favor of Revere and each dated January 22, 2016. The Second Modification Agreement extends the maturity date of the term loans made pursuant to the TLSA to January 22, 2018. The terms of the Second Modification Agreement are more fully described in Note 18 - Subsequent Events. At December 31, 2015, we had cash and cash equivalents of $816,301, of which $17,269 is located in China and may not be able to be repatriated for use in the United States without undue cost or expense, if at all. Net cash provided by operating activities was $373,278 for the nine months ended December 31, 2015, which includes an advance payment of $507,835 received on April 17, 2015 under an Assignment of Claim Agreement described below. We have reduced our operating expenses to stay in line with current business conditions. Our profit margins have improved significantly for the nine months ended December 31, 2015, when compared with the nine months ended December 31, 2014. As a result, we recorded net income of $472,960 for the nine months ended December 31, 2015 compared with a net loss of $2.9 million for the nine months ended December 31, 2014. We incurred an operating loss of $3.6 million for the year ended March 31, 2015, or fiscal 2015. In the year ended March 31, 2014, or fiscal 2014, we recorded a provision for potential contract losses of $2.4 million in connection with the bankruptcy filing of GT Advanced Technologies, Inc., or GTAT, and filed a proof of claim with the bankruptcy court to recover all of our costs under the terms of a purchase agreement with GTAT. The claim is now considered an unsecured creditor claim within GTAT’s overall bankruptcy proceedings. On April 17, 2015, the Company, through Ranor, entered into an Assignment of Claim Agreement, or the Assignment Agreement, with Citigroup Financial Products Inc., or Citigroup. Pursuant to the terms of the Assignment Agreement, Ranor agreed to sell, transfer, convey and assign to Citigroup all of Ranor’s right, title and interest in and to Ranor’s $3,740,956 unsecured claim against GTAT. Pursuant to the Assignment Agreement, Citigroup paid to Ranor an initial amount equal to $507,835, which amount is classified as a current liability in our balance sheet. The Assignment Agreement provides for Citigroup to pay to Ranor up to an additional $614,452 upon either (A) receipt of written notice that Ranor’s claim (or any portion thereof) has been fully and finally allowed against GTAT as a non-contingent, liquidated, and undisputed general unsecured claim, been listed as non-contingent, liquidated, and undisputed on schedules filed by GTAT with the bankruptcy court, or appeared on the claims agent’s, or trustee’s or other estate representative’s records, or has otherwise been conclusively and finally treated in GTAT’s bankruptcy, as “allowed” or “accepted as filed”; or (B) the expiration of the time period during which any party (including GTAT) is permitted to file an objection, dispute or challenge with respect to Ranor’s claim without any such objection, dispute or challenge having been filed. If Ranor’s claim against GTAT is allowed in its entirety, then Citigroup will pay Ranor an additional $614,452. If the amount of Ranor’s claim that is allowed is greater than $1,692,782 but less than the full amount or Ranor’s claim, then Citigroup will pay Ranor an additional amount equal to $614,452 minus the product of 30% multiplied by the difference between the total amount of Ranor’s claim and the amount of such claim that is actually allowed. If the total amount of Ranor’s claim against GTAT that is allowed is less than $1,692,782, then Ranor may be obligated to repay Citigroup 30% of the difference between $1,692,782 and the amount of Ranor’s claim that is actually allowed plus interest at 7% per annum from April 21, 2015 through the date of the repayment. The Company cannot predict the amount of Ranor’s claim that will be finally allowed or admitted in the GTAT bankruptcy proceeding and cannot guarantee that Ranor will receive any additional payment on its claim. The Company continues to vigorously pursue its legal remedies in respect to the case described above; however, an adverse decision in any proceeding could significantly harm our business and our consolidated financial position, results of operations and cash flows. 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 an interest rate on the unpaid principal balance of the Credit Loan Note 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; and (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 contained in these covenants are subject to certain exceptions specified in the LSA and in some cases may be waived by the 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 constitute 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 of the proceeds of the Credit Loan Note to pay off debt obligations owed to Santander Bank N.A. under a Loan and Security Agreement. Additionally, the Company retained approximately $1.27 million of the proceeds of the Credit Loan Note for general corporate purposes. If we were to violate any of the covenants under the above debt agreements, the lenders could demand full repayment of the amounts we owe. As such, we would need to seek alternative financing to pay these obligations as we do not have existing facilities or sufficient cash on hand to satisfy these obligations, and there is no guarantee that we would be able to obtain such alternative financing. We were successful in amending the TLSA with Revere to extend its maturity date. The TLSA was to expire on December 31, 2015 and was amended in January 2016, with the term of the TLSA extended to January 22, 2018. Our LSA with Utica matures on November 30, 2018. We believe that we will have sufficient cash to fund our operations, capital expenditures and principal and interest payments under our debt obligations through the next twelve months. Our liquidity is highly dependent on our available financing facilities and our ability to sustain our gross profit margins. If we do not execute on our business plans, improve gross profit and operating income, and reduce our operating costs, then our available cash may not be sufficient to fund our operations, capital expenditures and principal and interest payments under our debt obligations through the next twelve months. We may need to secure additional acceptable financing facilities before 2018. 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 may need to secure additional financing on terms consistent with our near-term business plans. We have increased our backlog and changed 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 utilize our manufacturing capacity. We plan to closely monitor our expenses and, if required, will further reduce operating costs and capital spending to enhance liquidity. The condensed consolidated financial statements for the three and nine months ended December 31, 2015 and for the year ended March 31, 2015, or fiscal 2015, 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 $5.4 million at December 31, 2015 and to continue as a going concern is dependent upon the successful execution of our operating plan and our ability to timely secure long-term financing on favorable terms. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2015
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 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 December 31, 2015, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine month periods ended December 31, 2015 and 2014, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2015 and 2014 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 for the fiscal year ended March 31, 2015, or the 2015 Form 10-K, filed with the SEC on June 29, 2015. Significant Accounting Policies Our significant accounting policies are set forth in detail in Note 2 to the 2015 Form 10-K.

RECENTLY ISSUED ACCOUNTING PRON

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Dec. 31, 2015
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	NOTE 3 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In November 2015, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update No. 2015-17, or ASU No. 2015-17, Income Taxes (Topic 740), Balance sheet Classification of Deferred Taxes, or Topic 740 . Topic 740, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred taxes, the amendments in ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in ASU No. 2015-17 apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by these amendments. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the adoption of ASU 2015-17 to have a significant impact on the Company’s consolidated results of operations, financial position or cash flows.

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	9 Months Ended
	Dec. 31, 2015
PROPERTY, PLANT AND EQUIPMENT, NET
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 4 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following as of: December 31, 2015 March 31, 2015 Land $ $ Building and improvements Machinery equipment, furniture and fixtures Equipment under capital leases Construction in progress — Total property, plant and equipment Less: accumulated depreciation ) ) Total property, plant and equipment, net $ $ Depreciation expense for the three and nine months ended December 31, 2015 and 2014 was $187,908 and $582,628, and $206,475 and $633,741, respectively.

COSTS INCURRED ON UNCOMPLETED C

COSTS INCURRED ON UNCOMPLETED CONTRACTS	9 Months Ended
	Dec. 31, 2015
COSTS INCURRED ON UNCOMPLETED CONTRACTS
COSTS INCURRED ON UNCOMPLETED CONTRACTS	NOTE 5 - COSTS INCURRED ON UNCOMPLETED CONTRACTS The following table sets forth information as to costs incurred on uncompleted contracts as of: December 31, 2015 March 31, 2015 Cost incurred on uncompleted contracts, beginning balance $ $ Total cost incurred on contracts during the period Less cost of sales, during the period ) ) Cost incurred on uncompleted contracts, ending balance $ $ Billings on uncompleted contracts, beginning balance $ $ Plus: Total billings incurred on contracts, during the period Less: Contracts recognized as revenue, during the period ) ) Billings on uncompleted contracts, ending balance $ $ Cost incurred on uncompleted contracts, ending balance $ $ Billings on uncompleted contracts, ending balance Costs incurred on uncompleted contracts, in excess of progress billings $ $ 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 amount of recovery can be estimated reliably and realization is probable. As of December 31, 2015 and March 31, 2015, we had deferred revenues totaling $1,087,179 and $1,211,506, respectively. Deferred revenues represent customer prepayments on contracts and completed contracts on which revenue cannot yet be recognized. We also receive advance billings and deposits representing down payments for acquisition of materials and progress payments on contracts. The agreements with our customers allow us to offset the progress payments against the costs incurred. We record provisions for losses within costs of sales in our condensed consolidated statement of operations and comprehensive income (loss).

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	9 Months Ended
	Dec. 31, 2015
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS	NOTE 6 — OTHER CURRENT ASSETS December 31, 2015 March 31, 2015 Payments advanced to suppliers $ $ Prepaid insurance Collateral deposits Deferred loan costs, net of amortization — Other Total $ $

OTHER NONCURRENT ASSETS

OTHER NONCURRENT ASSETS	9 Months Ended
	Dec. 31, 2015
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS	NOTE 7 — OTHER NONCURRENT ASSETS December 31, 2015 March 31, 2015 Deferred loan costs $ $ Deferred loan costs, accumulated amortization $ ) $ ) Total $ $

ACCRUED EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES
ACCRUED EXPENSES	NOTE 8 - ACCRUED EXPENSES December 31, 2015 March 31, 2015 Accrued compensation $ $ Provision for contract losses Accrued interest expense Other Total $ $ Our contract loss provision at both December 31, 2015 and March 31, 2015 includes approximately $0.4 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. As a result of the customer filing a voluntary bankruptcy claim, the demand is now considered an unsecured creditor claim within the customer’s overall bankruptcy proceedings. It is more likely than not that we will not be able to recover the full amount of our claim. As such, part of the total reduction in the liability reflects the netting of approximately $0.8 million of accumulated costs in work-in-progress and $1.1 million of accounts receivable with the loss provision. Accrued interest expense includes deferred interest costs accounted for under the effective interest method in connection with the Utica Credit Loan Note due November 2018.

DEBT

DEBT	9 Months Ended
	Dec. 31, 2015
DEBT
DEBT	NOTE 9 — DEBT December 31, 2015 March 31, 2015 Utica Credit Loan Note due November 2018 $ $ Revere Term Loan and Notes due December 2015 Obligations under capital lease Total debt $ $ Less: Short-term debt $ — $ Less: Current portion of long-term debt $ $ Long-term debt, including capital lease $ $ Term Loan and Security Agreement On December 22, 2014, Ranor entered into the TLSA with Revere. Pursuant to the TLSA, Revere agreed to loan an aggregate of $2.25 million to Ranor under the First Loan Note in the aggregate principal amount of $1.5 million and the Second Loan Note in the aggregate principal amount of $750,000. The First Loan Note is collateralized by a secured interest in Ranor’s Massachusetts facility and certain machinery and equipment at Ranor. The Second Loan Note is collateralized by a secured interest in certain accounts, inventory and equipment of Ranor. Payments under the TLSA, the First Loan Note and the Second Loan Note were due as follows: (a) payments of interest only on advanced principal on a monthly basis on the first day of each month from February 1, 2015 until December 31, 2015 with an annual interest rate on the unpaid principal balance of the First Loan Note and the Second Loan Note equal to 12% per annum and (b) the principal balance plus accrued and unpaid interest payable on December 31, 2015. Ranor’s obligations under the TLSA, the First Loan Note and the Second Loan Note are guaranteed by TechPrecision pursuant to a Guaranty Agreement with Revere. Ranor utilized approximately $1.45 million of the proceeds of the First Loan Note and Second Loan Note to pay off bond obligations owed to Santander Bank N.A. plus breakage fees on a related interest swap of $217,220 under the Loan and Security Agreement with Santander Bank N.A. The remaining proceeds of the First Loan Note and the Second Loan Note were retained by the Company for general corporate purposes. Pursuant to the TLSA, Ranor was subject to certain affirmative and negative covenants, including a cash covenant, which requires that we maintain minimum month end cash balances that range from $400,000 to $820,000. We were required to maintain a cash balance of $789,000 and $500,000 at December 31, 2015 and March 31, 2015, respectively. We were in compliance with all covenants under the TLSA at December 31, 2015 and March 31, 2015. On December 31, 2015, the Company, Ranor and Revere entered into the Modification Agreement to the TLSA. The Modification Agreement extended the maturity date of the TLSA and the Notes from December 31, 2015 to January 22, 2016 and provided that Ranor agreed to waive its right to extend the maturity date of the TLSA and the Notes by six months as set forth in the TLSA. On January 22, 2016, the Company, Ranor and Revere entered into the Second Modification Agreement which further amends the TLSA. In connection with the Second Modification Agreement, Ranor executed the Amended and Restated Notes in favor of Revere. The Second Modification Agreement extends the maturity date of the term loans made pursuant to the TLSA to January 22, 2018. The terms of the Second Modification Agreement are more fully described in Note 18 - Subsequent Events. Ranor was not in violation of any of the covenants included in the Notes at their maturity date of December 31, 2015 or when it issued its financial statements. As such, noncurrent classification is required as of December 31, 2015 because the Company was able to demonstrate its ability to consummate long-term refinancing by issuing a long-term obligation after its balance sheet date but before the issuance of its balance sheet. 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 an interest rate on the unpaid principal balance of the Credit Loan Note equal to 7.5% plus the greater of 3.3% or the six-month LIBOR interest rate, as described in the Credit Loan Note. At December 31, 2015, the rate of interest on the debt under the LSA was 10.8%. In addition, if the obligations under the LSA and the Credit Loan Note are paid in full at or before the maturity date, Ranor will be required to pay Utica deferred interest in an amount ranging from $166,000 during the first twelve months of the term of the loan to $498,000 at any time after the forty-eighth month of the term of the loan. 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; and (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 contained in 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 constitute 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 of the proceeds of the Credit Loan Note to pay off, or complete a refinancing of, debt obligations owed to Santander Bank N.A. under a Loan and Security Agreement. We paid a breakage fee of $29,448 for early termination of the interest rate swap for certain bonds and recorded the amount as interest expense in our statement of operations. We retained approximately $1.27 million of the proceeds of the Credit Loan Note for general corporate purposes. Capital Lease We entered into a new capital lease in April 2012 for certain office equipment. The lease has a term of 63 months, bears interest at 6.0% and requires monthly payments of principal and interest of $1,136. This lease was amended in fiscal 2014 when we purchased a replacement copier at Ranor. The revised lease term was extended by nine months and will expire in September 2018. The amount of the lease recorded in property, plant and equipment, net as of December 31, 2015 and March 31, 2015 was $26,045 and $38,027, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Dec. 31, 2015
INCOME TAXES
INCOME TAXES	NOTE 10 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes . At the end of each interim period, we make an estimate of our annual expected effective tax rates in both the United States and China. For the three and nine months ended December 31, 2015 we recorded zero income tax expense. The lack of tax expense or benefit for the three and nine months ended December 31, 2015 was primarily the result of recording a full valuation allowance on our net deferred tax assets. For the nine months ended December 31, 2014, we recorded a tax benefit of $152,792 as we reclassified losses on an interest rate swap to our statement of operations. 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 March 31, 2015, our federal net operating loss carry-forward was approximately $10.0 million. If not utilized, the federal net operating loss carry-forward 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 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 China, the foreign jurisdiction in which it is located. Tax years 2012 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 and Comprehensive Income (Loss).

PROFIT SHARING PLAN

PROFIT SHARING PLAN	9 Months Ended
	Dec. 31, 2015
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 $36,784 and $38,375 for the nine months ended December 31, 2015 and 2014, respectively.

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Dec. 31, 2015
CAPITAL STOCK
CAPITAL STOCK	NOTE 12 - CAPITAL STOCK Preferred Stock We have 10,000,000 authorized shares of preferred stock and our board of directors has broad power to create one or more series of preferred stock and to designate the rights, preferences, privileges and limitations of the holders of such series. Our 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 each share of Series A Convertible Preferred Stock became convertible into 1.3072 shares of common stock, with an effective conversion price of $0.218. During the nine months ended December 31, 2015 and 2014, 1,927,508 and 550,000 shares of Series A Convertible Preferred Stock were converted into 2,519,634 and 718,954 shares of common stock, respectively. There were no shares of Series A Convertible Preferred Stock outstanding at December 31, 2015, as the last outstanding shares of Series A Convertible Preferred Stock were converted into shares of common stock on September 24, 2015. There were 1,927,508 shares of Series A Convertible Preferred Stock outstanding at March 31, 2015. Based on the most recent conversion ratio, there were zero and 2,519,634 common shares underlying the Series A Convertible Preferred Stock as of December 31, 2015 and March 31, 2015, respectively. Common Stock We had 90,000,000 authorized shares of common stock at December 31, 2015 and March 31, 2015. There were 27,324,593 and 24,669,958 shares of common stock outstanding at December 31, 2015 and March 31, 2015, respectively. For the nine months ended December 31, 2015 we issued 2,519,634 shares of common stock in connection with conversions of Series A Convertible Preferred Stock. For the nine months ended December 31, 2014, we issued 718,954 shares of common stock in connection with conversions of Series A Convertible Preferred Stock.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
	Dec. 31, 2015
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 13 - STOCK BASED COMPENSATION In 2006, our board of directors adopted, and our stockholders approved, the 2006 long-term incentive plan, or the Plan, covering 1,000,000 shares of common stock. On August 5, 2010, the Plan was amended to increase the maximum number of shares of common stock that may be issued to an aggregate of 3,000,000 shares. On September 15, 2011, the directors adopted and our stockholders approved an amendment to increase the maximum number of shares of common stock that may be issued pursuant to the Plan to an aggregate of 3,300,000 shares. 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 our board of directors. Independent directors are not eligible for discretionary options. Pursuant to the Plan, each newly elected independent director receives, at the time of election, a five-year 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 1 of each year following the third anniversary of the date of election. On July 1, 2015, we granted stock options to members of our board of directors to collectively purchase 30,000 shares of common stock at an exercise price of $0.10 per share, the fair market value on the date of grant. Fifty percent of the options will vest upon the six month anniversary of the grant date while the remaining fifty percent of the options will vest upon the eighteen month anniversary of the grant date. On August 12, 2015, we granted stock options to our chief executive officer to purchase in total 1,000,000 shares of common stock at an exercise price of $0.08 per share, the fair market value on the date of grant. One third of the options vested on the date of the grant, one third of the options will vest on the first anniversary of the grant date, and the final one third of the options will vest on the second anniversary of the grant date. The fair value of the options we granted 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 average dividend yield over the historical period for which volatility was computed is zero. The risk-free interest rate was selected based upon yields of five-year U.S. Treasury issues. 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 option exercise activity we did not rely on our historical exercise data. The assumptions utilized for option grants during the period presented were as follows: a range from 119.5% to 120.8% for volatility, a range of 1.62% to 1.70% for the risk free interest rate, and approximately six years for the expected term. At December 31, 2015, there were 792,006 shares of common stock available for grant under the Plan. The following table summarizes information about options for the periods presented below: Number Of Weighted Average Aggregate Intrinsic Weighted Average Remaining Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2015 $ $ Granted $ Exercised ) $ Forfeited ) $ Outstanding at 12/31/2015 $ $ Vested or expected to vest at 12/31/2015 $ $ Exercisable and vested at 12/31/2015 $ $ At December 31, 2015 there was $40,646 of total unrecognized compensation cost related to stock options. These costs are expected to be recognized over the next two years. The total fair value of shares vested during the nine months ended December 31, 2015 was $67,183. The following table summarizes the activity of our stock options outstanding but not vested for the nine months ended December 31, 2015: Number of Options Weighted Average Exercise Price Outstanding at 3/31/2015 $ Granted $ Forfeited ) $ Vested ) $ Outstanding at 12/31/2015 $

CONCENTRATION OF CREDIT RISK AN

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	9 Months Ended
	Dec. 31, 2015
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 Federal Deposit Insurance Corporation 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 December 31, 2015, there were accounts receivable balances outstanding from four customers comprising 83% 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: Accounts Receivable December 31, 2015 March 31, 2015 Customer Dollars Percent Dollars Percent A $ % $ * * % B $ % $ % C $ % $ * * % D $ % $ * * % E $ * * % $ % F $ * * % $ % *less than 10% of total 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 three and nine months ended: Net Sales Three months ended December 31, Nine months ended December 31, Customer 2015 2014 2015 2014 A $ % $ % $ % $ * * % B $ * * % $ * * % $ % $ % C $ * * % $ * * % $ % $* * % D $ * * % $ % $ % $ * * % E $ * * % $ % $ * * % $ % F $ * * % $ * * % $ * * % $ % G $ % $ * * % $ * * % $* * % H $ % $ * * % $ * * % $* * % I $ * * % $ % $ * * % $ * * % *less than 10% of total

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Dec. 31, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	NOTE 15 — SEGMENT INFORMATION We consider our business to consist of one segment - metal fabrication and precision machining. 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 property, plant and equipment, net) by the country in which the legal subsidiary is domiciled and assets are located: Net Sales Three Months Ended December 31, Net Sales Nine Months Ended December 31, Property, Plant and Equipment, net 2015 2014 2015 2014 Dec. 31, 2015 March 31, 2015 United States $ $ $ $ $ $ China — $ — $ — $

COMMITMENTS

COMMITMENTS	9 Months Ended
	Dec. 31, 2015
COMMITMENTS
COMMITMENTS	NOTE 16 — COMMITMENTS Leases New Lease On June 1, 2015 we entered into a new office lease with GPX Wayne Office Properties, L.P., or GPX Wayne, pursuant to which the Company leases approximately 1,100 square feet located at 992 Old Eagle School Road, Wayne, Pennsylvania, or the Wayne Property. The Company assumed possession of the Wayne Property on June 16, 2015. The initial term of this lease will expire on June 30, 2016, unless terminated sooner in accordance with the terms of the lease. The Company’s base rent for the Wayne Property is $1,838 per month plus payments for electricity (on a proportionate ratio basis for the entire building), certain contributions for leasehold improvements, and certain other additional rent items (including certain taxes, insurance premiums and operating expenses). Other than as described above, there is no relationship between the Company and GPX Wayne. Termination of Lease On June 4, 2015, the Company entered into a lease termination agreement with CLA Building Associates, L.P., or CLA, pursuant to which the Company and CLA agreed to terminate the lease between the Company and CLA with respect to certain office space in Newtown Square, Pennsylvania, or the Newtown Square Property. Pursuant to the lease termination agreement, the lease with respect to the Newtown Square Property was terminated and the Company vacated the Newtown Square Property on June 16, 2015. The lease termination agreement provides that CLA will retain the Company’s security deposit of $2,400. Employment Agreements We have employment agreements with each of our executive officers. Such agreements provide for minimum salary levels, adjusted annually, and bonuses that are payable if specified company goals are attained. The aggregate commitment at December 31, 2015 for future executive salaries during the next twelve months, including fiscal 2015 bonuses payable after March 31, 2015, was approximately $0.7 million. The aggregate commitment at December 31, 2015 was approximately $0.2 million for accrued payroll, severance, vacation and holiday pay for the remainder of our employees.

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	9 Months Ended
	Dec. 31, 2015
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 share equivalents, which consist of convertible preferred stock and stock options. 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. Three Months ended December 31, 2015 Three Months ended December 31, 2014 Nine Months ended December 31, 2015 Nine Months ended December 31, 2014 Basic EPS Net income (loss) $ $ ) $ $ ) Weighted average number of shares outstanding Basic income (loss) per share $ $ ) $ $ ) Diluted EPS Net income (loss) $ $ ) $ $ ) Dilutive effect of stock options, warrants and preferred stock — — Diluted weighted average shares Diluted income (loss) per share $ $ ) $ $ ) 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. There were 900,500 potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above for both the three and nine month periods ended December 31, 2015. For the three and nine months ended December 31, 2014, there were, respectively, 3,288,008 and 2,277,951 anti-dilutive potential common share equivalents, which were not included in the EPS calculations above.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 18 — SUBSEQUENT EVENTS On January 22, 2016, the Company, Ranor and Revere entered into the Second Modification Agreement, which amends the TLSA. In connection with the Second Modification Agreement, Ranor executed the Amended and Restated Notes in favor of Revere. The Second Modification Agreement (a) extends the maturity date of the term loans made pursuant to the TLSA to January 22, 2018, (b) amends the amortization schedule such that payments under the TLSA and Amended and Restated Notes are due as follows: (i) payments of interest only on advanced principal on a monthly basis on the first day of each month from March 1, 2016 until January 1, 2017 and (ii) payments of $9,375 in principal plus accrued interest on a monthly basis on the first day of each month from February 1, 2017 until January 22, 2018, (c) reduces the annual interest rate on the unpaid principal balance of the loans to 10% per annum, or the Interest Rate, from 12% per annum, (d) amends the definition of the Minimum Guaranteed Interest payable by Ranor to Revere on the earlier of prepayment in full of the loans or payment in full of the loans on the maturity date to the greater of (i) twelve (12) months interest at the Interest Rate on the amount outstanding on the loans or (ii) interest due on any amount advanced under the TLSA at the Interest Rate, (e) adds a restrictive covenant whereby Ranor must maintain monthly minimum cash balances, with failure to comply with such restrictive covenant an event of default pursuant to which Revere may accelerate the repayment of the loans, and (f) includes a reaffirmation of the Company’s guarantee of Ranor’s obligations under the TLSA and the Amended and Restated Notes pursuant to a Guaranty Agreement between the Company and Revere. Other than as so amended by the Modification Agreement and the Second Modification Agreement, the terms and conditions of the TLSA remain in full force and effect.

PROPERTY, PLANT AND EQUIPMENT25

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	9 Months Ended
	Dec. 31, 2015
PROPERTY, PLANT AND EQUIPMENT, NET
Schedule of components of property, plant and equipment, net	December 31, 2015 March 31, 2015 Land $ $ Building and improvements Machinery equipment, furniture and fixtures Equipment under capital leases Construction in progress — Total property, plant and equipment Less: accumulated depreciation ) ) Total property, plant and equipment, net $ $

COSTS INCURRED ON UNCOMPLETED26

COSTS INCURRED ON UNCOMPLETED CONTRACTS (Tables)	9 Months Ended
	Dec. 31, 2015
COSTS INCURRED ON UNCOMPLETED CONTRACTS
Schedule of costs incurred on uncompleted contracts	December 31, 2015 March 31, 2015 Cost incurred on uncompleted contracts, beginning balance $ $ Total cost incurred on contracts during the period Less cost of sales, during the period ) ) Cost incurred on uncompleted contracts, ending balance $ $ Billings on uncompleted contracts, beginning balance $ $ Plus: Total billings incurred on contracts, during the period Less: Contracts recognized as revenue, during the period ) ) Billings on uncompleted contracts, ending balance $ $ Cost incurred on uncompleted contracts, ending balance $ $ Billings on uncompleted contracts, ending balance Costs incurred on uncompleted contracts, in excess of progress billings $ $

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Dec. 31, 2015
OTHER CURRENT ASSETS
Schedule of other current assets	December 31, 2015 March 31, 2015 Payments advanced to suppliers $ $ Prepaid insurance Collateral deposits Deferred loan costs, net of amortization — Other Total $ $

OTHER NONCURRENT ASSETS (Tables

OTHER NONCURRENT ASSETS (Tables)	9 Months Ended
	Dec. 31, 2015
OTHER NONCURRENT ASSETS
Schedule of other noncurrent assets	December 31, 2015 March 31, 2015 Deferred loan costs $ $ Deferred loan costs, accumulated amortization $ ) $ ) Total $ $

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	9 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES
Schedule of accrued expenses	December 31, 2015 March 31, 2015 Accrued compensation $ $ Provision for contract losses Accrued interest expense Other Total $ $

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Dec. 31, 2015
DEBT
Schedule of outstanding debt obligations	December 31, 2015 March 31, 2015 Utica Credit Loan Note due November 2018 $ $ Revere Term Loan and Notes due December 2015 Obligations under capital lease Total debt $ $ Less: Short-term debt $ — $ Less: Current portion of long-term debt $ $ Long-term debt, including capital lease $ $

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Dec. 31, 2015
STOCK BASED COMPENSATION
Summary of information about options for the periods presented	Number Of Weighted Average Aggregate Intrinsic Weighted Average Remaining Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2015 $ $ Granted $ Exercised ) $ Forfeited ) $ Outstanding at 12/31/2015 $ $ Vested or expected to vest at 12/31/2015 $ $ Exercisable and vested at 12/31/2015 $ $
Summary of activity of stock options outstanding but not vested	Number of Options Weighted Average Exercise Price Outstanding at 3/31/2015 $ Granted $ Forfeited ) $ Vested ) $ Outstanding at 12/31/2015 $

CONCENTRATION OF CREDIT RISK 32

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) - Customer Concentration Risk	9 Months Ended
	Dec. 31, 2015
Accounts Receivable
Concentration of credit risk and major customers
Schedule of concentration of risk by factors	Accounts Receivable December 31, 2015 March 31, 2015 Customer Dollars Percent Dollars Percent A $ % $ * * % B $ % $ % C $ % $ * * % D $ % $ * * % E $ * * % $ % F $ * * % $ % *less than 10% of total
Net sales
Concentration of credit risk and major customers
Schedule of concentration of risk by factors	Net Sales Three months ended December 31, Nine months ended December 31, Customer 2015 2014 2015 2014 A $ % $ % $ % $ * * % B $ * * % $ * * % $ % $ % C $ * * % $ * * % $ % $* * % D $ * * % $ % $ % $ * * % E $ * * % $ % $ * * % $ % F $ * * % $ * * % $ * * % $ % G $ % $ * * % $ * * % $* * % H $ % $ * * % $ * * % $* * % I $ * * % $ % $ * * % $ * * % *less than 10% of total

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Dec. 31, 2015
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 Three Months Ended December 31, Net Sales Nine Months Ended December 31, Property, Plant and Equipment, net 2015 2014 2015 2014 Dec. 31, 2015 March 31, 2015 United States $ $ $ $ $ $ China — $ — $ — $

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	9 Months Ended
	Dec. 31, 2015
EARNINGS PER SHARE (EPS)
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted loss per share computations	Three Months ended December 31, 2015 Three Months ended December 31, 2014 Nine Months ended December 31, 2015 Nine Months ended December 31, 2014 Basic EPS Net income (loss) $ $ ) $ $ ) Weighted average number of shares outstanding Basic income (loss) per share $ $ ) $ $ ) Diluted EPS Net income (loss) $ $ ) $ $ ) Dilutive effect of stock options, warrants and preferred stock — — Diluted weighted average shares Diluted income (loss) per share $ $ ) $ $ )

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details) - USD ($)	Apr. 17, 2015	Dec. 22, 2014	May. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015	Jan. 22, 2016	Mar. 31, 2014
DESCRIPTION OF BUSINESS
Cash and cash equivalents				$ 816,301	$ 1,278,667	$ 816,301	$ 1,278,667	$ 1,336,325		$ 1,086,701
Cash deposits located in China, which may not be able to be repatriated for use in the U.S. without undue cost or expense				17,269		17,269
Net cash provided by operating activities						373,278	(1,271,865)
Advanced claims payment						507,835
Net income (loss)				12,003	$ (945,718)	472,960	$ (2,865,557)	(3,600,000)
Provision for estimated customer purchase agreement losses				400,000		400,000		400,000
Total current liabilities				5,378,317		5,378,317		$ 7,725,175
GT Advanced Technologies
DESCRIPTION OF BUSINESS
Provision for estimated customer purchase agreement losses										$ 2,400,000
LSA
DESCRIPTION OF BUSINESS
Fees and associated costs			$ 240,000
Loan proceeds retained for general corporate purposes			1,270,000
Ranor, Inc. | Citigroup Financial Products Inc | Assignment of Claim Agreement
DESCRIPTION OF BUSINESS
Unsecured claim sold and assigned	$ 3,740,956
Initial amount received from the sale and assignment of unsecured claim	507,835
Claim, net of holdback, used as threshold for determining final payment or required repurchase on sale of unsecured claim	$ 1,692,782
Percentage of total claim received as initial payment to be used as multiplier in calculation of final settlement of agreement	30.00%
Percentage of interest to be payable for repurchase	7.00%
Ranor, Inc. | LSA
DESCRIPTION OF BUSINESS
Maximum amount of debt that can be defaulted			5,000
Ranor, Inc. | Maximum | Citigroup Financial Products Inc | Assignment of Claim Agreement
DESCRIPTION OF BUSINESS
Additional amount to be received from the sale and assignment of unsecured claim	$ 614,452
Revere Term Loan and Notes Due December 2015 | Ranor, Inc. | TLSA
DESCRIPTION OF BUSINESS
Period of time the maturity date of loans may be extended		6 months
Amount borrowed		$ 2,250,000
First Term Loan Note | Ranor, Inc. | TLSA
DESCRIPTION OF BUSINESS
Amount borrowed		1,500,000
Second Loan Note | Ranor, Inc. | TLSA
DESCRIPTION OF BUSINESS
Amount borrowed		$ 750,000
Modification Agreement | Ranor, Inc. | TLSA
DESCRIPTION OF BUSINESS
Exit fee				$ 67,500		$ 67,500
Amended and Restated First Loan Note | Ranor, Inc. | TLSA
DESCRIPTION OF BUSINESS
Amount borrowed									$ 1,500,000
Restated Second Loan Note | Ranor, Inc. | TLSA
DESCRIPTION OF BUSINESS
Amount borrowed									$ 750,000
Utica Credit Loan Note due November 2018 | Ranor, Inc. | LSA
DESCRIPTION OF BUSINESS
Amount borrowed			$ 4,150,000
Stated interest rate to be used as variable interest basis			7.50%
Interest margin (as a percent)			3.30%
Variable interest basis			six-month LIBOR
Loan Agreement With Santander Bank,NA | LSA
DESCRIPTION OF BUSINESS
Repayment of debt			$ 2,650,000

PROPERTY, PLANT AND EQUIPMENT36

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Property, Plant and Equipment
Total property, plant and equipment	$ 12,334,284		$ 12,334,284		$ 12,144,649
Less: accumulated depreciation	(7,117,236)		(7,117,236)		(6,534,608)
Total property, plant and equipment, net	5,217,048		5,217,048		5,610,041
Depreciation expense	187,908	$ 206,475	582,628	$ 633,741
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	3,252,908		3,252,908		3,235,308
Machinery equipment, furniture and fixtures
Property, Plant and Equipment
Total property, plant and equipment	8,731,080		8,731,080		8,733,660
Equipment under capital leases
Property, Plant and Equipment
Total property, plant and equipment	65,568		65,568		$ 65,568
Construction in progress
Property, Plant and Equipment
Total property, plant and equipment	$ 174,615		$ 174,615

COSTS INCURRED ON UNCOMPLETED37

COSTS INCURRED ON UNCOMPLETED CONTRACTS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015	Dec. 31, 2015	Mar. 31, 2015
Cost incurred on uncompleted contracts
Cost incurred on uncompleted contracts, beginning balance			$ 4,068,488	$ 9,960,072	$ 9,960,072
Total cost incurred on contracts during the period			9,138,138		10,034,158
Less cost of sales, during the period	$ (2,434,900)	$ (3,169,456)	(8,223,349)	(12,884,553)	(15,925,742)
Cost incurred on uncompleted contracts, ending balance	4,983,277		4,983,277		4,068,488
Billings on uncompleted contracts
Billings on uncompleted contracts, beginning balance			2,060,244	4,702,070	4,702,070
Plus: Total billings incurred on contracts, during the period			12,110,447		15,591,388
Less: Contracts recognized as revenue, during the period	(3,506,560)	$ (3,510,842)	(11,985,422)	(14,311,895)	(18,233,214)
Billings on uncompleted contracts, ending balance	2,185,269		2,185,269		2,060,244
Cost incurred on uncompleted contracts
Cost incurred on uncompleted contracts, ending balance	4,983,277		4,068,488	9,960,072	9,960,072	$ 4,983,277	$ 4,068,488
Billings on uncompleted contracts, ending balance	$ 2,185,269		$ 2,060,244	$ 4,702,070	$ 4,702,070	2,185,269	2,060,244
Costs incurred on uncompleted contracts, in excess of progress billings						2,798,008	2,008,244
Deferred revenues						$ 1,087,179	$ 1,211,506

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015
OTHER CURRENT ASSETS
Payments advanced to suppliers	$ 147,362	$ 54,422
Prepaid insurance	220,460	205,477
Collateral deposits	85,252	85,252
Deferred loan costs, net of amortization		184,063
Other	11,767	9,039
Total	$ 464,841	$ 538,253

OTHER NONCURRENT ASSETS (Detail

OTHER NONCURRENT ASSETS (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015
OTHER NONCURRENT ASSETS
Deferred loan costs	$ 253,975	$ 253,975
Deferred loan costs, accumulated amortization	(244,299)	(208,485)
Total	$ 9,676	$ 45,490

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	9 Months Ended
	Dec. 31, 2015	Mar. 31, 2015
ACCRUED EXPENSES
Accrued compensation	$ 589,102	$ 613,838
Provision for contract losses	421,841	533,799
Accrued interest expense	483,555	436,787
Other	128,756	81,234
Total	1,623,254	1,665,658
Provision for estimated customer purchase agreement losses	400,000	$ 400,000
Netting adjustment for accumulated costs in work-in-progress	800,000
Provision for loss on accounts receivable	$ 1,100,000

DEBT (Details)

DEBT (Details) - USD ($)	Dec. 22, 2014	May. 30, 2014	Apr. 30, 2012	Dec. 31, 2015	Mar. 31, 2014	Mar. 31, 2015
Debt and capital lease obligations
Total debt				$ 4,969,336		$ 5,669,509
Less: Short-term debt						2,250,000
Less: Current portion of long-term debt				934,176		933,651
Total Long-term debt, including capital lease				4,035,160		2,485,858
LSA
Debt and capital lease obligations
Fees and associated costs		$ 240,000
Loan proceeds retained for general corporate purposes		1,270,000
LSA | Ranor, Inc.
Debt and capital lease obligations
Maximum amount of debt that can be defaulted		5,000
TLSA
Debt and capital lease obligations
Minimum cash balance requirement				$ 789,000		500,000
Interest rate (as a percent)				12.00%
TLSA | Minimum
Debt and capital lease obligations
Minimum cash balance requirement				$ 400,000
TLSA | Maximum
Debt and capital lease obligations
Minimum cash balance requirement				820,000
Utica Credit Loan Note due November 2018
Debt and capital lease obligations
Total debt				$ 2,689,815		3,381,481
Utica Credit Loan Note due November 2018 | LSA | Ranor, Inc.
Debt and capital lease obligations
Aggregate principal amount		$ 4,150,000
Stated interest rate to be used as variable interest basis		7.50%
Variable interest basis		six-month LIBOR
Interest margin (as a percent)		3.30%
Effective interest rate at end of period (as a percent)				10.80%
Deferred interest due during the first twelve months of the term (minimum range)				$ 166,000
Deferred interest due after the forty-eighth month of the term (maximum range)				498,000
Revere Term Loan and Notes Due December 2015
Debt and capital lease obligations
Total debt				2,250,000		2,250,000
Revere Term Loan and Notes Due December 2015 | TLSA | Ranor, Inc.
Debt and capital lease obligations
Period of time the maturity date of loans may be extended	6 months
Aggregate principal amount	$ 2,250,000
First Term Loan Note | TLSA | Ranor, Inc.
Debt and capital lease obligations
Aggregate principal amount	$ 1,500,000
Interest rate (as a percent)	12.00%
Second Loan Note | TLSA | Ranor, Inc.
Debt and capital lease obligations
Aggregate principal amount	$ 750,000
Interest rate (as a percent)	12.00%
Bonds financing | TLSA | Ranor, Inc.
Debt and capital lease obligations
Repayment of debt	$ 1,450,000
Long-term obligations under capital leases
Debt and capital lease obligations
Total debt				29,521		38,028
Amount of the lease recorded in property, plant and equipment, net				$ 26,045		$ 38,027
Capital lease term			63 months
Capital lease term extension					9 months
Capital lease interest rate (as a percent)			6.00%
Capital lease monthly payment			$ 1,136
Loan Agreement With Santander Bank,NA | LSA
Debt and capital lease obligations
Repayment of debt		$ 2,650,000
Interest Rate Swap | MDFA Bonds | LSA
Debt and capital lease obligations
Breakage fee		$ 29,448
Interest Rate Swap | Loan agreement with bank | Ranor, Inc.
Debt and capital lease obligations
Breakage fee	$ 217,220

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
INCOME TAXES
Income tax expense (benefit)	$ 0	$ 0	$ 152,792
Federal net operating loss carry-forward				$ 10,000,000

PROFIT SHARING PLAN (Details)

PROFIT SHARING PLAN (Details) - Ranor, Inc. - USD ($)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
PROFIT SHARING PLAN
Eligibility for employer matching contributions, period of service	90 days
Matching contributions made by the company	$ 36,784	$ 38,375

CAPITAL STOCK (Details)

CAPITAL STOCK (Details)	9 Months Ended
	Dec. 31, 2015item$ / sharesshares	Dec. 31, 2014shares	Mar. 31, 2015shares
Capital stock
Preferred stock, shares authorized	10,000,000		10,000,000
Number of authorized common shares	90,000,000		90,000,000
Number of outstanding common shares	27,324,593		24,669,958
Minimum
Capital stock
Number of series of preferred stock | item	1
Series A Convertible Preferred Stock
Capital stock
Number of series of preferred stock | item	1
Conversion ratio prior to adjustment	1
Conversion ratio	1.3072
Effective conversion price (in dollars per share) | $ / shares	$ 0.218
Number of shares of common stock issuable upon conversion of convertible preferred stock	0		2,519,634
Shares converted into common stock	1,927,508	550,000
Number of shares of common stock issued for converted preferred stock	2,519,634	718,954
Shares outstanding	0		1,927,508

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details)	Aug. 12, 2015$ / sharesshares	Jul. 01, 2015$ / sharesshares	Dec. 31, 2015USD ($)item$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Sep. 15, 2011shares	Aug. 05, 2009shares	Mar. 31, 2006shares
Share based compensation
Maximum number of shares authorized to be issued					3,300,000	3,000,000	1,000,000
Options granted (in shares)			1,030,000
Exercise price of shares granted (in dollars per share) | $ / shares			$ 0.081
Assumption used in valuation of stock options
Average dividend yield | $			$ 0
Yield term of U.S. Treasury issues on which risk free interest rate is based			5 years
Volatility rate, minimum (as a percent)			119.50%
Volatility rate, maximum (as a percent)			120.80%
Risk free interest rate, minimum (as a percent)			1.62%
Risk free interest rate, maximum (as a percent)			1.70%
Expected term			6 years
Additional general disclosure
Common stock available for grant under plan (in shares)			792,006
Number Of Options
Outstanding at the beginning of the period (in shares)			1,190,500
Granted (in shares)			1,030,000
Exercised (in shares)			(135,000)
Forfeited (in shares)			(155,000)
Outstanding at the end of the period (in shares)			1,930,500	1,190,500
Vested or expected to vest at the end of the period (in shares)			1,930,500
Exercisable and vested at the end of the period (in shares)			1,235,500
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares			$ 1.049
Granted (in dollars per share) | $ / shares			0.081
Exercised (in dollars per share) | $ / shares			1.100
Forfeited (in dollars per share) | $ / shares			1.015
Outstanding at the end of the period (in dollars per share) | $ / shares			0.661	$ 1.049
Vested or expected to vest at the end of the period (in dollars per share) | $ / shares			0.661
Exercisable and vested at the end of the period (in dollars per share) | $ / shares			$ 0.767
Aggregate Intrinsic Value
Outstanding at the end of the period | $			$ 102,503	$ 21,600
Vested or expected to vest at the end of the period | $			102,503
Exercisable and vested at the end of the period | $			$ 34,568
Weighted Average Remaining Contractual Life
Outstanding at the end of the period			7 years 10 months 6 days	5 years 2 months 5 days
Vested or expected to vest at the end of the period			7 years 10 months 6 days
Exercisable and vested at the end of the period			6 years 6 months 7 days
Additional information on stock options
Unrecognized compensation cost related to stock options | $			$ 40,646
Period of recognition of unrecognized compensation expense			2 years
Fair value of shares vested | $			$ 67,183
Stock options outstanding but not vested, Number of Options
Outstanding at the beginning of the period (in shares)			112,500
Granted (in shares)			1,030,000
Forfeited (in shares)			(40,000)
Vested (in shares)			(407,500)
Outstanding at the end of the period (in shares)			695,000	112,500
Stock options outstanding but not vested, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares			$ 0.664
Granted (in dollars per share) | $ / shares			0.081
Forfeited (in dollars per share) | $ / shares			0.670
Vested (in dollars per share) | $ / shares			0.165
Outstanding at the end of the period (in dollars per share) | $ / shares			$ 0.092	$ 0.664
Director
Share based compensation
Terms of options			5 years
Options granted (in shares)			50,000
Annual grants to Directors on third anniversary of initial election (in shares)			10,000
Number Of Options
Granted (in shares)			50,000
Stock options outstanding but not vested, Number of Options
Granted (in shares)			50,000
Director | Minimum
Share based compensation
Number of directors on a committee to administer the plan | item			2
Chief Executive Officer
Share based compensation
Options granted (in shares)	1,000,000
Exercise price of shares granted (in dollars per share) | $ / shares	$ 0.08
Percentage of awards granted vesting	33.30%
Number Of Options
Granted (in shares)	1,000,000
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares	$ 0.08
Stock options outstanding but not vested, Number of Options
Granted (in shares)	1,000,000
Stock options outstanding but not vested, Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares	$ 0.08
Chief Executive Officer | Awards vesting in one year
Share based compensation
Percentage of awards granted vesting	33.30%
Vesting period	1 year
Chief Executive Officer | Awards vesting in two years
Share based compensation
Percentage of awards granted vesting	33.30%
Vesting period	2 years
Members of board
Share based compensation
Options granted (in shares)		30,000
Exercise price of shares granted (in dollars per share) | $ / shares		$ 0.10
Number Of Options
Granted (in shares)		30,000
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares		$ 0.10
Stock options outstanding but not vested, Number of Options
Granted (in shares)		30,000
Stock options outstanding but not vested, Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares		$ 0.10
Members of board | Awards vesting in six months
Share based compensation
Percentage of awards granted vesting		50.00%
Vesting period		6 months
Members of board | Awards vesting in eighteen months
Share based compensation
Percentage of awards granted vesting		50.00%
Vesting period		18 months

CONCENTRATION OF CREDIT RISK 46

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Mar. 31, 2015USD ($)
Concentration of credit risk and major customers
Accounts receivable	$ 766,564		$ 766,564		$ 826,363
Net sales	3,506,560	$ 3,510,842	$ 11,985,422	$ 14,311,895	18,233,214
Accounts Receivable | Customer Concentration Risk
Concentration of credit risk and major customers
Number of major customers | item			4
Concentration risk percentage			83.00%
Accounts Receivable | Customer Concentration Risk | Customer A
Concentration of credit risk and major customers
Accounts receivable	261,172		$ 261,172
Concentration risk percentage			34.00%
Accounts Receivable | Customer Concentration Risk | Customer B
Concentration of credit risk and major customers
Accounts receivable	149,688		$ 149,688		$ 296,815
Concentration risk percentage			20.00%		36.00%
Accounts Receivable | Customer Concentration Risk | Customer C
Concentration of credit risk and major customers
Accounts receivable	123,920		$ 123,920
Concentration risk percentage			16.00%
Accounts Receivable | Customer Concentration Risk | Customer D
Concentration of credit risk and major customers
Accounts receivable	99,110		$ 99,110
Concentration risk percentage			13.00%
Accounts Receivable | Customer Concentration Risk | Customer E
Concentration of credit risk and major customers
Accounts receivable					$ 128,738
Concentration risk percentage					16.00%
Accounts Receivable | Customer Concentration Risk | Customer F
Concentration of credit risk and major customers
Accounts receivable					$ 123,604
Concentration risk percentage					15.00%
Net sales | Customer Concentration Risk | Customer A
Concentration of credit risk and major customers
Net sales	$ 1,568,714	$ 475,317	$ 3,057,140
Concentration risk percentage	45.00%	14.00%	26.00%
Net sales | Customer Concentration Risk | Customer B
Concentration of credit risk and major customers
Net sales			$ 1,971,139	$ 3,107,520
Concentration risk percentage			16.00%	22.00%
Net sales | Customer Concentration Risk | Customer C
Concentration of credit risk and major customers
Net sales			$ 1,459,013
Concentration risk percentage			12.00%
Net sales | Customer Concentration Risk | Customer D
Concentration of credit risk and major customers
Net sales		$ 406,089	$ 1,192,848
Concentration risk percentage		12.00%	10.00%
Net sales | Customer Concentration Risk | Customer E
Concentration of credit risk and major customers
Net sales		$ 1,394,999		$ 2,399,074
Concentration risk percentage		40.00%		16.00%
Net sales | Customer Concentration Risk | Customer F
Concentration of credit risk and major customers
Net sales				$ 1,762,985
Concentration risk percentage				12.00%
Net sales | Customer Concentration Risk | Customer G
Concentration of credit risk and major customers
Net sales	$ 594,534
Concentration risk percentage	17.00%
Net sales | Customer Concentration Risk | Customer H
Concentration of credit risk and major customers
Net sales	$ 354,469
Concentration risk percentage	10.00%
Net sales | Customer Concentration Risk | Customer I
Concentration of credit risk and major customers
Net sales		$ 676,729
Concentration risk percentage		19.00%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Mar. 31, 2015USD ($)
SEGMENT INFORMATION
Number of operating segments | item			1
SEGMENT INFORMATION
Net Sales	$ 3,506,560	$ 3,510,842	$ 11,985,422	$ 14,311,895	$ 18,233,214
Property, Plant and Equipment, Net	5,217,048		5,217,048		5,610,041
United States
SEGMENT INFORMATION
Net Sales	3,506,560	3,202,086	11,985,422	13,517,788
Property, Plant and Equipment, Net	$ 5,217,048		$ 5,217,048		5,609,973
China
SEGMENT INFORMATION
Net Sales		$ 308,756		$ 794,107
Property, Plant and Equipment, Net					$ 68

COMMITMENTS (Details)

COMMITMENTS (Details)	Jun. 01, 2015USD ($)ft²	Dec. 31, 2015USD ($)	Jun. 04, 2015USD ($)
Employment agreements
Aggregate annual commitment for future executive salaries during the next fiscal year		$ 700,000
Aggregate commitment for vacation and holiday pay for non-executive employees		$ 200,000
New Lease | GPX Wayne
Commitments
Area of land leased (in square feet) | ft²	1,100
Monthly base rent	$ 1,838
Lease termination agreement | CLA
Commitments
Security Deposit			$ 2,400

EARNINGS PER SHARE (EPS) (Detai

EARNINGS PER SHARE (EPS) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Basic EPS
Net income (loss)	$ 12,003	$ (945,718)	$ 472,960	$ (2,865,557)	$ (3,600,000)
Weighted average number of shares outstanding	27,324,593	24,669,958	26,084,080	24,447,736
Basic Income (Loss) per share (in dollars per share)	$ 0	$ (0.04)	$ 0.02	$ (0.12)
Diluted EPS
Net income (loss)	$ 12,003	$ (945,718)	$ 472,960	$ (2,865,557)	$ (3,600,000)
Dilutive effect of stock options, warrants and preferred stock	185,387		126,126
Diluted weighted average shares	27,509,980	24,669,958	26,210,206	24,447,736
Diluted Income (Loss) per share (in dollars per share)	$ 0	$ (0.04)	$ 0.02	$ (0.12)
Antidilutive securities excluded from computation of earnings per share amount (in shares)	900,500	3,288,008	900,500	2,277,951

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - TLSA - USD ($)	Jan. 22, 2016	Dec. 31, 2015
Subsequent events
Interest rate (as a percent)		12.00%
Subsequent event | Second Modification Agreement
Subsequent events
Periodic payment of principal and accured interest	$ 9,375
Interest rate (as a percent)	10.00%