TechPrecision (TPCS) 10-Q 14 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Feb. 06, 2017
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, 2016
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		28,824,593
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Current assets:
Cash	$ 3,794,773	$ 1,332,166
Accounts receivable, less allowance for doubtful accounts of $0 at December 31, 2016 and March 31, 2016	771,202	2,022,480
Costs on uncompleted contracts, in excess of progress billings	3,050,850	2,395,642
Inventories - raw materials	124,394	128,595
Other current assets	363,523	530,808
Total current assets	8,104,742	6,409,691
Property, plant and equipment, net	4,747,890	4,814,184
Deferred income taxes	684,270	684,270
Other noncurrent assets, net	123,900	176,344
Total assets	13,660,802	12,084,489
Current liabilities:
Accounts payable	548,759	996,065
Accrued expenses	1,195,317	1,804,485
Income taxes payable	5,589	9,032
Advanced claims payment		507,835
Billings on uncompleted contracts, in excess of related costs	663,158	1,629,018
Current portion of long-term debt	696,245	953,106
Total current liabilities	3,109,068	5,899,541
Long-term debt, net	5,041,868	3,735,410
Deferred income taxes	684,270	684,270
Noncurrent accrued expenses	22,580	37,097
Commitments and contingent liabilities (see Note 14)
Stockholders' Equity:
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 28,824,593 shares issued and outstanding at December 31, 2016, and 27,324,593 shares issued and outstanding at March 31, 2016	2,882	2,732
Additional paid in capital	8,188,284	7,094,749
Accumulated other comprehensive income	19,249	21,568
Accumulated deficit	(3,407,399)	(5,390,878)
Total stockholders' equity	4,803,016	1,728,171
Total liabilities and stockholders' equity	$ 13,660,802	$ 12,084,489

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 0	$ 0
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	28,824,593	27,324,593
Common stock, shares outstanding	28,824,593	27,324,593

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Net sales	$ 5,318,610	$ 3,506,560	$ 13,619,578	$ 11,985,422
Cost of sales	3,266,721	2,434,900	8,558,680	8,223,349
Gross profit	2,051,889	1,071,660	5,060,898	3,762,073
Selling, general and administrative	1,955,093	768,220	3,582,856	2,482,465
Gain from claims assignment settlement	(1,122,287)		(1,122,287)
Income from operations	1,219,083	303,440	2,600,329	1,279,608
Other, net	1,130	471	8,705	1,561
Interest expense	(207,521)	(291,908)	(583,999)	(808,209)
Total other expense, net	(206,391)	(291,437)	(575,294)	(806,648)
Income before income taxes	1,012,692	12,003	2,025,035	472,960
Income tax expense	20,598		41,556
Net income	992,094	12,003	1,983,479	472,960
Other comprehensive (loss) income, before tax:
Foreign currency translation adjustments	(1,095)	(1,135)	(2,319)	217
Other comprehensive (loss) income, before tax	(1,095)	(1,135)	(2,319)	217
Other comprehensive (loss) income, net of tax	(1,095)	(1,135)	(2,319)	217
Comprehensive income	$ 990,999	$ 10,868	$ 1,981,160	$ 473,177
Net income per share (basic) (in dollars per share)	$ 0.03	$ 0	$ 0.07	$ 0.02
Net income per share (diluted) (in dollars per share)	$ 0.03	$ 0	$ 0.07	$ 0.02
Weighted average number of shares outstanding (basic) (in shares)	28,156,115	27,324,593	27,602,775	26,084,080
Weighted average number of shares outstanding (diluted) (in shares)	28,873,237	27,509,980	28,261,110	26,210,206

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,983,479	$ 472,960
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	519,114	582,628
Amortization of debt issue costs	129,383	219,876
Stock based compensation	1,093,685	51,100
Benefit from contract loss adjustments	(320,900)	(111,958)
Gain from claims assignment settlement - noncash portion	(507,835)
Changes in operating assets and liabilities:
Accounts receivable	1,251,278	59,798
Costs on uncompleted contracts, in excess of progress billings	(547,812)	(789,764)
Inventories - raw materials	4,201	(13,738)
Other current assets	167,263	(110,355)
Other noncurrent assets and liabilities	(30,961)
Accounts payable	(447,306)	(438,486)
Accrued expenses	(412,198)	67,709
Accrued taxes	(3,443)
Advanced claims payment		507,835
Billings on uncompleted contracts, in excess of related costs	(965,860)	(124,327)
Net cash provided by operating activities	1,912,088	373,278
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(452,820)	(192,215)
Net cash used in investing activities	(452,820)	(192,215)
CASH FLOWS FROM FINANCING ACTIVITIES
Deferred loan costs	(159,137)
Borrowings of long-term debt	6,227,500
Repayment of long-term debt	(5,064,745)	(700,174)
Net cash provided by (used in) financing activities	1,003,618	(700,174)
Effect of exchange rate on cash	(279)	(913)
Net increase (decrease) in cash	2,462,607	(520,024)
Cash, beginning of period	1,332,166	1,336,325
Cash, end of period	3,794,773	816,301
Cash paid during the period for:
Interest	692,541	525,421
Income taxes	$ 45,000
Common Stock
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:
Amount of increase from stock conversions		252
Additional Paid in Capital
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS:
Amount of increase from stock conversions		$ 523,957
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
Shares converted into common stock		1,927,508

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Dec. 31, 2016
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS TechPrecision Corporation, or TechPrecision, is a Delaware corporation organized in February 2005 under the name Lounsberry Holdings II, Inc. The name was changed to TechPrecision Corporation on March 6, 2006. TechPrecision is the parent company of Ranor, Inc., or Ranor, a Delaware corporation and Wuxi Critical Mechanical Components Co., Ltd., or WCMC, a wholly foreign owned enterprise (WFOE). TechPrecision, Ranor and WCMC 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 industries including the defense, aerospace, nuclear, medical and precision industrial markets.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2016
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, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheet as of December 31, 2016, the condensed consolidated statements of operations and comprehensive income for the three and nine month periods ended December 31, 2016 and 2015, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2016 and 2015 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, 2016, or the 2016 Form 10-K, filed with the SEC on June 28, 2016. Significant Accounting Policies Our significant accounting policies are set forth in detail in Note 2 to the 2016 Form 10-K.

RECENTLY ISSUED ACCOUNTING PRON

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Dec. 31, 2016
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	NOTE 3 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS New Accounting Standards Recently Adopted In April 2015, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issue Costs . The new guidance requires entities to present debt issue costs in the balance sheet as a direct reduction to the related debt liability rather than as a deferred cost (i.e., an asset) as required by past guidance. The new guidance does not change the recognition or measurement of debt issuance costs. The Company adopted the standard retrospectively in the first quarter of the fiscal year ended March 31, 2017, or fiscal 2017. The adoption did not have a significant impact on our Consolidated Financial Statements. Issued Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , the authoritative guidance that changes the criteria for recognizing revenue from a contract with a customer. The new revenue recognition standard replaces existing guidance on revenue recognition, including most industry specific guidance, with a five step model for recognizing and measuring revenue from contracts with customers. The objective of the new standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance also requires a number of disclosures regarding the nature, amount, timing and uncertainty of revenue and the related cash flows. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). We are currently assessing the impacts this guidance may have on our Consolidated Financial Statements and disclosures. The guidance is effective for annual reporting periods beginning on or after December 15, 2017. We do not plan to early adopt the standard. In December 2016 the FASB issued Accounting Standards Update No. 2016-20, Technical Corrections and Improvements to Topic 606 , Revenue from Contracts with Customers, or ASU 2016-20. The amendments in ASU 2016-20 update and affect narrow aspects of the guidance issued in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Narrow Scope Improvements and Practical Expedients , which provided revised guidance on certain issues relating to revenue from contracts with customers, including clarification of the objective of the collectability criterion. In March 2016, the FASB issued a final amendment to clarify the implementation guidance for principal versus agent considerations and in April 2016 issued a final amendment to clarify the guidance related to identifying performance obligations and the accounting for intellectual property licenses. We are currently evaluating the impact these updates may have on our Consolidated Financial Statements and disclosures. Other significant new standards not yet adopted are set forth in detail in Note 3 to the 2016 Form 10-K.

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	9 Months Ended
	Dec. 31, 2016
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, March 31, Land $ $ Building and improvements Machinery equipment, furniture and fixtures Equipment under capital leases 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, 2016 and 2015 was $165,626 and $519,114 and $187,908 and $582,628, respectively.

COSTS INCURRED ON UNCOMPLETED C

COSTS INCURRED ON UNCOMPLETED CONTRACTS	9 Months Ended
	Dec. 31, 2016
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, March 31, 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 $ $ 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, 2016 and March 31, 2016, we had billings on uncompleted contracts in excess of related costs of $663,158 and $1,629,018, respectively. Billings on uncompleted contracts represent customer prepayments on their contracts on which all revenue recognition criteria were not met. 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 cost of sales in our condensed consolidated statements of operations and comprehensive income.

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	9 Months Ended
	Dec. 31, 2016
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS	NOTE 6 — OTHER CURRENT ASSETS Other current assets included the following as of: December 31, March 31, Prepaid insurance $ $ Payments advanced to suppliers Collateral deposits — Other Total $ $

OTHER NONCURRENT ASSETS

OTHER NONCURRENT ASSETS	9 Months Ended
	Dec. 31, 2016
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS	NOTE 7 — OTHER NONCURRENT ASSETS Other noncurrent assets included the following as of: December 31, March 31, Fixed assets held for sale $ $ Other — Total $ $ On March 31, 2016, we classified certain machinery and equipment in the amount of $123,900 to fixed assets held for sale. This amount approximates fair value net of selling costs and we expect to sell these fixed assets before the end of fiscal 2017.

ACCRUED EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES
ACCRUED EXPENSES	NOTE 8 - ACCRUED EXPENSES Accrued expenses included the following as of: December 31, March 31, Accrued compensation $ $ Provision for contract losses Accrued material purchases — Accrued professional fees Accrued interest expense Other Total $ $ Accrued compensation includes amounts for executive bonuses, payroll and vacation and holiday pay. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in the provision are recorded in cost of sales. Our contract loss provision at March 31, 2016 included approximately $0.4 million for estimated contract losses in connection with a certain customer purchase agreement.

DEBT

DEBT	9 Months Ended
	Dec. 31, 2016
DEBT
DEBT	NOTE 9 — DEBT December 31, March 31, Commerce Term Loan due January 2022 $ $ — People’s Equipment Loan Facility due April 2021 — Utica Credit Loan Note due November 2018 — Revere Term Loan and Notes due January 2018 — Obligations under capital lease Total debt $ $ Less: Debt issue costs, unamortized $ $ Total debt, net $ $ Less: Current portion of long-term debt $ $ Long-term debt, net $ $ Commerce Bank & Trust Company Loan Facility On December 21, 2016, TechPrecision, through Ranor, closed on a Loan Agreement, or the Commerce Loan Agreement, with Commerce Bank & Trust Company, or Commerce. Pursuant to the Commerce Loan Agreement, Commerce made a term loan to Ranor in the amount of $2,850,000, or the Term Loan, and made available to Ranor a revolving line of credit in the amount of $1,000,000, or the Revolver Loan, and together with the Term Loan, collectively, the Commerce Loans. The Commerce Loans are secured by a first lien on all personal and real property of Ranor. Starting on January 20, 2017, payments on the Term Loan will be made in 60 monthly installments of $19,260.46 each, inclusive of interest at a fixed rate of 5.21% per annum, with all outstanding principal and accrued interest due and payable on December 20, 2021. A prepayment penalty will apply during the loan term but will not apply if a prepayment is made from either casualty loss insurance proceeds or a condemnation award applicable to any collateral or if a full prepayment is made during the 45-day period immediately preceding the maturity date. Advances under the Revolver Loan will be subject to a borrowing base equal to the lesser of (A) $1,000,000 and (B) the sum of (i) 80% of eligible accounts receivable, and (ii) the lesser of (a) 25% of eligible raw material inventory and (b) $250,000. Advances made under the Revolver Loan bear interest at a variable rate equal to the one-month LIBOR plus 275 basis points. Interest-only payments on advances made under the Revolver Loan will be payable monthly in arrears. The Revolver Loan will mature on December 21, 2018. Ranor’s obligations under the Commerce Loan Agreement are guaranteed by TechPrecision. There were no amounts outstanding under the Revolver Loan at December 31, 2016. The Commerce Loan Agreement contains a covenant whereby the Company is required to maintain a debt service coverage ratio or DSCR, of at least 1.2 to 1.0 during the term of the Commerce Loans. The DSCR will be measured at the end of each fiscal quarter of the Company. Pursuant to the Commerce Loan Agreement, Ranor covenants (a) to cause its balance sheet leverage to be less than or equal to 3.50 to 1.00 for the fiscal year ending March 31, 2017, less than or equal to 3.00 to 1.00 for the fiscal year ending March 31, 2018, and less than or equal to 2.50 to 1.00 for the fiscal year ending March 31, 2019 and each fiscal year end thereafter, and (b) that its annual capital expenditures shall not exceed $1,000,000 for the fiscal year ending March 31, 2017, $2,500,000 for the fiscal year ending March 31, 2018, $2,500,000 for the fiscal year ended March 31, 2019, and $1,500,000 for the fiscal year ending March 31, 2020 and each fiscal year end thereafter. Compliance with the foregoing covenants will be tested annually commencing March 31, 2017. The Commerce Loan Agreement contains an additional covenant whereby Ranor is required to maintain a loan to value ratio of not greater than 0.75 to 1.00, to be measured by appraisal not more frequently than one time during each 365-day period. The Commerce Loans may be accelerated upon the occurrence of an “Event of Default” (as defined in the Commerce Loan Agreement). Events of Default include (i) the failure to pay any monthly installment payment before the tenth day following the due date of such payment; (ii) the failure of Ranor or TechPrecision to observe, perform or pay any obligations under the Commerce Loan Agreement or any other obligation to Commerce; (iii) the failure of Ranor or TechPrecision to pay any indebtedness in excess of $100,000 (other than the Commerce Loans) when due; (iv) any representation or warranty of Ranor or TechPrecision in the Commerce Loan Agreement and related documents, or the Loan Documents, being proven to have been incorrect, in any material respect, when made; (v) the failure of Ranor to discharge any attachment, levy or distraint on its property; (vi) any default by Ranor or TechPrecision under any of the collateral security documents executed in connection with the Commerce Loan Agreement past any applicable grace period; (vii) the failure of Ranor or TechPrecision to file or pay taxes when due, unless such taxes are being contested in a manner permitted under the Loan Documents; (viii) a change in ownership or control of Ranor or change in management of Ranor where either the chief executive officer or chief financial officer as of December 21, 2016 is replaced without Commerce’s prior consent; (ix) Ranor or TechPrecision ceasing to do business as a going concern, making an assignment for the benefit of creditors, or commencing a bankruptcy or other similar insolvency proceeding; and (x) the entry of a judgment against Ranor or TechPrecision in excess of $150,000. Some of the Events of Default are subject to certain cure periods. In connection with the Commerce Loan Agreement, $2,394,875 of the proceeds from Term Loan were disbursed to Revere High Yield Fund, LP, or Revere, as payment in full of Ranor’s indebtedness owed to Revere pursuant that certain Term Loan and Security Agreement, dated as of December 22, 2014, by and between Ranor and Revere, as amended, or the TLSA. Ranor retained $426,467 of the proceeds from the Term Loan for general corporate purposes. Unamortized debt issue costs at December 31, 2016 were $81,782. People’s Capital and Leasing Corp. Equipment Loan Facility On April 26, 2016, TechPrecision, through Ranor, executed and closed a Master Loan and Security Agreement No. 4180, as supplemented with Schedule No. 001, or, together, the MLSA, with People’s Capital and Leasing Corp., or People’s. The MLSA is dated and effective as of March 31, 2016. Loan proceeds were disbursed to Ranor on April 26, 2016. Pursuant to the MLSA, People’s loaned $3,011,648 to Ranor, or the People’s Loan. The People’s Loan is secured by a first lien on certain machinery and equipment of Ranor, or the Equipment Collateral. Payments on the People’s Loan will be made in 60 monthly installments of $60,921 each, inclusive of interest at a fixed rate of 7.90% per annum. The first monthly installment payment was paid on May 26, 2016. A prepayment penalty will apply during the first four years of the loan term. Ranor’s obligations under the MLSA are guaranteed by TechPrecision. The Company covenants to maintain a debt service coverage ratio, or DSCR, of at least 1.5 to 1.0 during the term of the People’s Loan. The DSCR will be measured at the end of each fiscal year of the Company. The People’s Loan may be accelerated upon the occurrence of an “Event of Default” (as defined in the MLSA). Some of the Events of Default are subject to certain cure periods. In connection with the MLSA, $2,653,353 of the proceeds from the People’s Loan were disbursed to Utica Leaseco, LLC, or Utica, as payment in full for principal and interest under the existing Loan and Security Agreement, or LSA. People’s retained a holdback in the amount of $182,763. The holdback was released to Ranor on July 6, 2016 after the Company reported a DSCR of 1.82 to 1.0 as of March 31, 2016. Ranor retained $175,532 of the proceeds from the People’s Loan for general corporate purposes. Unamortized debt issue costs at December 31, 2016 were $78,718. On October 4, 2016, TechPrecision and Ranor became committed to Schedule No. 002 to the MLSA, or Schedule 2. Pursuant to Schedule 2, People’s made an additional loan in the amount of $365,852, or the Additional People’s Loan, to Ranor upon the terms and conditions set forth in the MLSA and Schedule 2. Ranor will repay the Additional People’s Loan in monthly installments of principal and interest over 60 months. The Additional People’s Loan is guaranteed by TechPrecision pursuant to the original Corporate Guaranty from TechPrecision in favor of People’s dated March 31, 2016. The Additional People’s Loan is secured by a security interest in certain machinery and equipment of Ranor as provided in Schedule 2. On December 21, 2016, TechPrecision and Ranor closed on an Amendment to the MLSA, or the MLSA Amendment, with People’s. The MLSA Amendment, dated as of December 20, 2016, amends the definition of “Permitted Liens” under the MLSA to include the liens held by Commerce pursuant to the terms of the Commerce Loan Agreement and to delete the reference to the liens held by Revere. Capital Lease We entered into a capital lease in April 2012 for certain office equipment. This lease was amended in fiscal 2014 when we purchased a replacement copier at Ranor. The lease, as amended, will expire in March 2018, bears interest at 6.0% per annum and requires monthly payments of principal and interest of $1,117. The amount of the lease recorded in property, plant and equipment, net as of December 31, 2016 and March 31, 2016 was $14,360 and $23,124, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Dec. 31, 2016
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, 2016, we recorded tax expense of $20,598 and $41,556, respectively, in connection with an accrual for alternative minimum tax due on taxable income in excess of net operating losses. We maintain 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, primarily our past operating losses, which cause uncertainty as to whether we will generate sufficient taxable income to utilize the deferred tax assets. 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. We regularly assess the effects of various factors to determine the adequacy of our provision for income taxes. For example, our future effective tax rate would be affected if earnings were lower than anticipated in tax jurisdictions where we have lower statutory rates and higher than anticipated in tax jurisdictions where we have higher statutory rates, by changes in the valuation of our deferred tax assets and liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof.

PROFIT SHARING PLAN

PROFIT SHARING PLAN	9 Months Ended
	Dec. 31, 2016
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 $60,127 and $44,557 for the nine months ended December 31, 2016 and 2015, respectively.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
	Dec. 31, 2016
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 12 - STOCK BASED COMPENSATION 2016 Equity Incentive Plan Our board of directors, upon the recommendation of the compensation committee of our board of directors, approved the 2016 TechPrecision Equity Incentive Plan, or the 2016 Plan, on November 10, 2016. Our stockholders approved the 2016 Plan at the Company’s Annual Meeting of Stockholders, or the Annual Meeting, on December 8, 2016. The 2016 Plan succeeds the 2006 Plan and applies to awards granted after the Annual Meeting. We have designed the 2016 Plan to reflect our commitment to having best practices in both compensation and corporate governance. The 2016 Plan provides for a share reserve of 5,000,000 shares of common stock. The 2016 Plan authorizes the award of incentive and non-qualified stock options, restricted stock awards, restricted stock units, and performance awards to employees, directors, consultants, and other individuals who provide services to TechPrecision or its affiliates. The purposes of the 2016 Plan are to: (a) enable TechPrecision and its affiliated companies to recruit and retain highly qualified employees, directors and consultants; (b) provide those employees, directors and consultants with an incentive for productivity; and (c) provide those employees, directors and consultants with an opportunity to share in the growth and value of the Company. Subject to adjustment as provided in the 2016 Plan, the maximum number of shares of common stock that may be issued in respect of awards under the 2016 Plan is 5,000,000 shares (inclusive of awards issued under the 2006 Long-Term Incentive Plan, or the 2006 Plan, that remained outstanding as of the effective date of the 2016 Plan), all of which shares may be issued in respect of incentive stock options. On December 8, 2016, there were 1,958,500 shares underlying awards issued under the 2006 Plan that remained outstanding. The 2006 Plan expired under its own terms in February 2016. Shares granted under the 2006 Plan will remain outstanding until expiration or settlement. Shares of our common stock subject to awards that expire unexercised or are otherwise forfeited shall again be available for awards under the 2016 Plan. On December 27, 2016, in recognition of performance and to increase the alignment of his interests with those of our stockholders, TechPrecision granted to Alexander Shen, TechPrecision’s Chief Executive Officer, a non-qualified stock option to purchase 1,000,000 shares of our common stock at an exercise price of $0.50, the closing price of our common stock on the date of the grant. The grant was made under the 2016 Plan and a Non-Qualified Stock Option Award Agreement, dated December 27, 2016, from TechPrecision to Mr. Shen. The option is immediately vested and exercisable with respect to 666,667 shares of common stock and will become vested and exercisable with respect to the remaining 333,333 shares on December 27, 2017, provided that Mr. Shen remains in continuous service as an employee of the Company through such vesting date. The options have a remaining weighted average contract life of nine years. The fair value of the options is $418,995 and $279,470 was expensed in the three months ended December 31, 2016. At December 31, 2016, there was $139,525 of total unrecognized compensation cost related to the stock options, and these costs are expected to be recognized over the next twelve months. The fair value of the options we grant is 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 used the simplified method for all grants to estimate the expected life 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. The assumptions utilized for options granted during the period presented were 123.8% for volatility, 2.07% for the risk free interest rate, and approximately six years for the expected life. At December 31, 2016, there were 2,041,500 shares available for grant under the 2016 Plan. The following table summarizes information about options under the 2006 Plan and the 2016 Plan for the periods presented below: Number Of Weighted Aggregate Weighted Options Exercise Price Value (in years) Outstanding at 3/31/2016 $ $ Granted $ Expired ) $ Outstanding at 12/31/2016 $ $ Vested or expected to vest at 12/31/2016 $ $ Exercisable and vested at 12/31/2016 $ $ At December 31, 2016, there was $179,004 of total unrecognized compensation cost related to stock options. These costs are expected to be recognized over the next fifteen months. The following table summarizes the activity of our stock options outstanding but not vested for the nine months ended December 31, 2016: Number of Weighted Outstanding at 3/31/2016 $ Granted $ Expired ) $ Vested ) $ Outstanding at 12/31/2016 $ Other information relating to stock options outstanding at December 31, 2016 is as follows: Range of Exercise Prices: Options Weighted Weighted Options Weighted $0.01-$1.00 $ $ $1.01-$1.96 $ $ Totals Restricted Stock Awards In December 2014, each non-employee director waived any compensation owed to them for their service to the Company. On November 10, 2016, our board of directors determined that it would grant shares of common stock to each of our directors as compensation for their service to the Company during the period from January 1, 2014 to November 10, 2016. Accordingly, our board of directors granted 600,000 shares of common stock to Mr. Leonard Anthony, 250,000 shares of common stock to each of Mr. Philip Dur and Mr. Michael Holly, and 200,000 shares of common stock to Mr. Robert Isaman and Mr. Andrew Levy. The grant of shares of common stock to Mr. Anthony also recognizes his uncompensated service as Executive Chairman of the Company during the period from January 1, 2014 to November 17, 2014. The Company recorded an expense of $780,000 in connection with these grants of shares of common stock, based on the closing market price of our common stock on the date of grant.

CONCENTRATION OF CREDIT RISK AN

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	9 Months Ended
	Dec. 31, 2016
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	NOTE 13 - 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, 2016, there were accounts receivable balances outstanding from four customers comprising approximately 84% 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: December 31, 2016 March 31, 2016 Customer Dollars Percent Dollars Percent A $ % $ * * % B $ % $ * * % C $ % $ * * % D $ % $ % E $ * * % $ % F $ * * % $ % *less than 10% of total All of our sales recorded for the nine months ended December 31, 2016 are from our U.S. segment. There were no sales generated from WCMC, our subsidiary in China, during the nine months ended December 31, 2016. 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 following periods: Three months ended Three months ended Nine months ended Nine months ended Customer Dollars Percent Dollars Percent Dollars Percent Dollars Percent A $ % $ % $ % $ % B $ * * % $ * * % $ % $ * * % C $ * * % $ * * % $ % $ % D $ % $ % $ % $ * * % E $ * * % $ * * % $ * * % $ % F $ * * % $ * * % $ * * % $ % G $ * * % $ % $ * * % $ * * % *less than 10% of total

COMMITMENTS

COMMITMENTS	9 Months Ended
	Dec. 31, 2016
COMMITMENTS
COMMITMENTS	NOTE 14 — COMMITMENTS Leases Expiration of a Lease The Company leased approximately 1,100 square feet located at 992 Old Eagle School Road, Wayne, Pennsylvania, or the Wayne Property, pursuant to an office lease with GPX Wayne Office Properties, L.P., or GPX Wayne. On June 30, 2016, this office lease expired under its own terms. Other than as described above, there is no relationship between the Company and GPX Wayne. Employment Agreements We have employment agreements with each of our executive officers. Such agreements provide for minimum salary levels, adjusted annually, and incentive bonuses that are payable if specified company goals are attained. The aggregate commitment at December 31, 2016 for future executive salaries during the next 12 months, including fiscal 2017 bonuses, was approximately $0.8 million.

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	9 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS)	NOTE 15 - 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 all potential common share equivalents, which consists of stock options and convertible preferred stock that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260. Three Months Three Months Nine Months Nine Months Basic EPS Net income $ $ $ $ Weighted average number of shares outstanding Basic income per share $ $ $ $ Diluted EPS Net income $ $ $ $ Dilutive effect of stock options, warrants and preferred stock Diluted weighted average shares Diluted income per share $ $ $ $ All potential common share equivalents that have an anti-dilutive effect (i.e., those that increase income per share) are excluded from the calculation of diluted EPS. For the three and nine months ended December 31, 2016, there were, respectively, 423,500 and 1,428,500 of potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above. For the three and nine months ended December 31, 2015, there were, respectively, 2,630,837 and 3,407,066 of potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above.

CLAIM ASSIGNMENT SETTLEMENT

CLAIM ASSIGNMENT SETTLEMENT	9 Months Ended
	Dec. 31, 2016
CLAIM ASSIGNMENT SETTLEMENT
CLAIM ASSIGNMENT SETTLEMENT	NOTE 16 — CLAIM ASSIGNMENT SETTLEMENT On April 17, 2015, we entered into an Assignment of Claim Agreement, or the Assignment Agreement, with Citigroup Financial Products, Inc., or Citigroup, whereby we sold, transferred, conveyed and assigned to Citigroup all of Ranor’s right, title and interest in Ranor’s $3,740,956 unsecured claim against GT Advanced Technologies, Inc. or GTAT, in connection with GTAT’s bankruptcy. Pursuant to the Assignment Agreement, on April 21, 2015, Citigroup paid to Ranor an initial amount equal to $507,835, which was classified as a current liability on our balance sheet. The Assignment Agreement provided for Citigroup to pay to Ranor up to an additional $614,452 upon receipt of written notice that Ranor’s claim was fully and finally allowed against GTAT without objection. On November 7, 2016, GTAT’s legal counsel notified Citigroup that Ranor’s unsecured claim in GTAT’s bankruptcy was fully allowed without objection. In accordance with the terms of the Assignment Agreement, Citigroup paid Ranor an additional $614,452 on November 8, 2016. The resolution of this claim under the Assignment Agreement was recognized as a gain of $1,122,287 in the Statement of Operations and Comprehensive Income for the three months ended December 31, 2016.

PROPERTY, PLANT AND EQUIPMENT22

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	9 Months Ended
	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT, NET.
Schedule of components of property, plant and equipment, net	December 31, March 31, Land $ $ Building and improvements Machinery equipment, furniture and fixtures Equipment under capital leases Total property, plant and equipment Less: accumulated depreciation ) ) Total property, plant and equipment, net $ $

COSTS INCURRED ON UNCOMPLETED23

COSTS INCURRED ON UNCOMPLETED CONTRACTS (Tables)	9 Months Ended
	Dec. 31, 2016
COSTS INCURRED ON UNCOMPLETED CONTRACTS
Schedule of costs incurred on uncompleted contracts	December 31, March 31, 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 $ $ 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, 2016
OTHER CURRENT ASSETS
Schedule of other current assets	December 31, March 31, Prepaid insurance $ $ Payments advanced to suppliers Collateral deposits — Other Total $ $

OTHER NONCURRENT ASSETS (Tables

OTHER NONCURRENT ASSETS (Tables)	9 Months Ended
	Dec. 31, 2016
OTHER NONCURRENT ASSETS
Schedule of other noncurrent assets	December 31, March 31, Fixed assets held for sale $ $ Other — Total $ $

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	9 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES
Schedule of accrued expenses	December 31, March 31, Accrued compensation $ $ Provision for contract losses Accrued material purchases — Accrued professional fees Accrued interest expense Other Total $ $

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Dec. 31, 2016
DEBT
Schedule of outstanding debt obligations	December 31, March 31, Commerce Term Loan due January 2022 $ $ — People’s Equipment Loan Facility due April 2021 — Utica Credit Loan Note due November 2018 — Revere Term Loan and Notes due January 2018 — Obligations under capital lease Total debt $ $ Less: Debt issue costs, unamortized $ $ Total debt, net $ $ Less: Current portion of long-term debt $ $ Long-term debt, net $ $

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Dec. 31, 2016
STOCK BASED COMPENSATION
Summary of information about options for the periods presented	Number Of Weighted Aggregate Weighted Options Exercise Price Value (in years) Outstanding at 3/31/2016 $ $ Granted $ Expired ) $ Outstanding at 12/31/2016 $ $ Vested or expected to vest at 12/31/2016 $ $ Exercisable and vested at 12/31/2016 $ $
Summary of activity of stock options outstanding but not vested	Number of Weighted Outstanding at 3/31/2016 $ Granted $ Expired ) $ Vested ) $ Outstanding at 12/31/2016 $
Stock Based Compensation By Exercise Price Range	Other information relating to stock options outstanding at December 31, 2016 is as follows: Range of Exercise Prices: Options Weighted Weighted Options Weighted $0.01-$1.00 $ $ $1.01-$1.96 $ $ Totals

CONCENTRATION OF CREDIT RISK 29

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) - Customer Concentration Risk	9 Months Ended
	Dec. 31, 2016
Accounts Receivable
Concentration of credit risk and major customers
Schedule of concentration of risk by factors	December 31, 2016 March 31, 2016 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	Three months ended Three months ended Nine months ended Nine months ended Customer Dollars Percent Dollars Percent Dollars Percent Dollars Percent A $ % $ % $ % $ % B $ * * % $ * * % $ % $ * * % C $ * * % $ * * % $ % $ % D $ % $ % $ % $ * * % E $ * * % $ * * % $ * * % $ % F $ * * % $ * * % $ * * % $ % G $ * * % $ % $ * * % $ * * % *less than 10% of total

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	9 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE (EPS)
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations	Three Months Three Months Nine Months Nine Months Basic EPS Net income $ $ $ $ Weighted average number of shares outstanding Basic income per share $ $ $ $ Diluted EPS Net income $ $ $ $ Dilutive effect of stock options, warrants and preferred stock Diluted weighted average shares Diluted income per share $ $ $ $

PROPERTY, PLANT AND EQUIPMENT31

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Property, Plant and Equipment, Net
Total property, plant and equipment	$ 12,272,511		$ 12,272,511		$ 11,846,832
Less: accumulated depreciation	(7,524,621)		(7,524,621)		(7,032,648)
Total property, plant and equipment, net	4,747,890		4,747,890		4,814,184
Depreciation expense	165,626	$ 187,908	519,114	$ 582,628
Land
Property, Plant and Equipment, Net
Total property, plant and equipment	110,113		110,113		110,113
Building and improvements
Property, Plant and Equipment, Net
Total property, plant and equipment	3,252,908		3,252,908		3,252,908
Machinery equipment, furniture and fixtures
Property, Plant and Equipment, Net
Total property, plant and equipment	8,843,922		8,843,922		8,418,243
Equipment under capital leases
Property, Plant and Equipment, Net
Total property, plant and equipment	$ 65,568		$ 65,568		$ 65,568

COSTS INCURRED ON UNCOMPLETED32

COSTS INCURRED ON UNCOMPLETED CONTRACTS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016	Dec. 31, 2016	Mar. 31, 2016
Cost incurred on uncompleted contracts
Cost incurred on uncompleted contracts, beginning balance			$ 5,491,605	$ 4,068,488	$ 4,068,488
Total cost incurred on contracts during the period			9,186,786		12,783,323
Less cost of sales, during the period	$ (3,266,721)	$ (2,434,900)	(8,558,680)	(8,223,349)	(11,360,206)
Cost incurred on uncompleted contracts, ending balance	6,119,711		6,119,711		5,491,605
Billings on uncompleted contracts
Billings on uncompleted contracts, beginning balance			3,095,963	2,060,244	2,060,244
Total billings incurred on contracts, during the period			13,592,476		17,889,671
Less: Contracts recognized as revenue, during the period	(5,318,610)	$ (3,506,560)	(13,619,578)	(11,985,422)	(16,853,952)
Billings on uncompleted contracts, ending balance	3,068,861		3,068,861		3,095,963
Cost incurred on uncompleted contracts
Cost incurred on uncompleted contracts, ending balance	6,119,711		6,119,711		5,491,605
Billings on uncompleted contracts, ending balance	$ 3,068,861		$ 3,095,963	$ 2,060,244	$ 2,060,244	$ 3,068,861	$ 3,095,963
Costs incurred on uncompleted contracts, in excess of progress billings						3,050,850	2,395,642
Billings on uncompleted contracts, in excess of related costs						$ 663,158	$ 1,629,018

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
OTHER CURRENT ASSETS
Prepaid insurance	$ 205,472	$ 236,300
Payments advanced to suppliers	127,744	182,305
Collateral deposits		85,252
Other	30,307	26,951
Total	$ 363,523	$ 530,808

OTHER NONCURRENT ASSETS (Detail

OTHER NONCURRENT ASSETS (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Other Noncurrent Assets
Fixed assets held for sale	$ 123,900	$ 123,900
Other		52,444
Total	$ 123,900	176,344
Machinery and equipment
Other Noncurrent Assets
Fixed assets held for sale		$ 123,900

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
ACCRUED EXPENSES
Accrued compensation	$ 745,657	$ 872,114
Provision for contract losses	143,885	464,785
Accrued material purchases	107,396
Accrued professional fees	126,636	117,981
Accrued interest expense	10,907	296,344
Other	60,836	53,261
Total	$ 1,195,317	1,804,485
Provision for estimated customer purchase agreement losses		$ 400,000

DEBT - Summary of Long-term Deb

DEBT - Summary of Long-term Debt (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Long-term Debt
Total debt	$ 5,898,613	$ 4,735,858
Less: Debt issue costs, unamortized	160,500	47,342
Total debt, net	5,738,113	4,688,516
Less: Current portion of long-term debt	696,245	953,106
Long-term debt, net	5,041,868	3,735,410
Commerce Term Loan due January 2022
Long-term Debt
Total debt	2,850,000
People's Equipment Loan Facility due April 2021
Long-term Debt
Total debt	3,031,046
Utica Credit Loan Note due November 2018
Long-term Debt
Total debt		2,459,259
Revere Term Loan and Notes due January 2018
Long-term Debt
Total debt		2,250,000
Obligations under capital lease
Long-term Debt
Total debt	$ 17,567	$ 26,599

DEBT - Commerce Bank & Trust Co

DEBT - Commerce Bank & Trust Company Loan Facility (Details)	Dec. 31, 2016USD ($)	Dec. 21, 2016USD ($)	Mar. 31, 2016USD ($)
Long-term Debt
Amount outstanding	$ 5,898,613		$ 4,735,858
Debt issue costs	$ 160,500		47,342
Commerce Loan Agreement
Long-term Debt
Debt service coverage ratio (DSCR), threshold	1.2
Leverage ratio. year one	3.50
Leverage ratio, year two	3
Leverage ratio, year three and thereafter	2.50
Maximum annual capital expenditure, year one	$ 1,000,000
Maximum annual capital expenditure, year two	2,500,000
Maximum annual capital expenditure, year three	2,500,000
Maximum annual capital expenditure, year four and thereafter	$ 1,500,000
Loan to value ratio	0.75
Measurement of trailing period	365 days
Portion of proceeds from debt allocated to corporate expenses		$ 426,467
Debt issue costs	$ 81,782
Revere Term Loan and Notes due January 2018
Long-term Debt
Amount outstanding			$ 2,250,000
Repayment of debt		$ 2,394,875
Secured Term Loan | Commerce Loan Agreement
Long-term Debt
Period for payments of debt (in months)		60 days
Debt payment in each month including interest		$ 19,260.46
Interest rate (as a percent)		5.21%
Prepayment period		45 days
Revolving credit facility | Commerce Loan Agreement
Long-term Debt
Maximum amount of borrowing base to issue loan advance		$ 1,000,000
Eligibility of accounts receivable (as a percent)		80.00%
Eligibility of raw material inventory (as a percent)		25.00%
Amount included in sum total of borrowing base		$ 250,000
Variable interest basis		one-month LIBOR
Interest margin (as a percent)		2.75%
Amount outstanding	$ 0
Ranor, Inc. | Commerce Loan Agreement
Long-term Debt
Excess of indebtedness		$ 100,000
Excess of insolvency proceeds		150,000
Ranor, Inc. | Secured Term Loan | Commerce Loan Agreement
Long-term Debt
Amount borrowed		2,850,000
Ranor, Inc. | Revolving credit facility | Commerce Loan Agreement
Long-term Debt
Maximum borrowing capacity		$ 1,000,000

DEBT - People's Capital and Lea

DEBT - People's Capital and Leasing Corp. Equipment Loan Facility (Details)	Oct. 04, 2016USD ($)	Jul. 06, 2016USD ($)	Apr. 26, 2016USD ($)	Dec. 31, 2016USD ($)	Mar. 31, 2016USD ($)
Long-term Debt
Debt issue costs				$ 160,500	$ 47,342
LSA
Long-term Debt
Repayment of debt			$ 2,653,353
People's Capital and Leasing Corp | MLSA
Long-term Debt
Debt service coverage ratio (DSCR), threshold			1.50
Holdback of debt amount			$ 182,763
Debt service coverage ratio (DSCR)					1.82
Debt issue costs				$ 78,718
Secured Term Loan | People's Capital and Leasing Corp | MLSA
Long-term Debt
Amount borrowed	$ 365,852
Period for payments of debt (in months)	60 months		60 months
Debt payment in each month including interest			$ 60,921
Interest rate (as a percent)			7.90%
Period for debt prepayment penalty (in years)			4 years
Ranor, Inc. | People's Capital and Leasing Corp | MLSA
Long-term Debt
Holdback funds released		$ 182,763
Portion of proceeds from debt allocated to corporate expenses			$ 175,532
Ranor, Inc. | Secured Term Loan | People's Capital and Leasing Corp | MLSA
Long-term Debt
Amount borrowed			$ 3,011,648

DEBT - Capital Lease (Details)

DEBT - Capital Lease (Details) - Obligations under capital lease - USD ($)	9 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Debt
Capital lease interest rate (as a percent)	6.00%
Capital lease monthly payment	$ 1,117
Property, plant and equipment, net
Debt
Capital lease amount, carrying value	$ 14,360	$ 23,124

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2016
INCOME TAXES
Income tax expense, alternative minimum tax	$ 20,598	$ 41,556

PROFIT SHARING PLAN (Details)

PROFIT SHARING PLAN (Details) - Ranor, Inc. - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
PROFIT SHARING PLAN
Eligibility for employer matching contributions, period of service	90 days
Matching contributions made by the company	$ 60,127	$ 44,557

STOCK BASED COMPENSATION - 2016

STOCK BASED COMPENSATION - 2016 Equity Incentive Plan (Details) - USD ($)	Dec. 27, 2016	Dec. 31, 2016	Dec. 31, 2016	Dec. 08, 2016
Share based compensation
Unrecognized compensation cost		$ 179,004	$ 179,004
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 (as a percent)			123.80%
Risk free interest rate (as a percent)			2.07%
Expected term			6 years
2016 Plan
Share based compensation
Shares reserved				5,000,000
Shares available for grant		2,041,500	2,041,500
2016 Plan | Maximum
Share based compensation
Shares available for grant				5,000,000
2006 Plan
Share based compensation
Shares underlying awards outstanding				1,958,500
Chief Executive Officer | 2016 Plan
Share based compensation
Options exercisable, number of shares	1,000,000
Exercise price (in dollars per share)	$ 0.50
Remaining weighted average contract life	9 years
Fair value of options		$ 418,995	$ 418,995
Stock based compensation expense		279,470
Unrecognized compensation cost		$ 139,525	$ 139,525
Chief Executive Officer | 2016 Plan | Awards vesting immediately
Share based compensation
Options exercisable, number of shares	666,667
Chief Executive Officer | 2016 Plan | Awards expected to vest on December 27,2017
Share based compensation
Options exercisable, number of shares	333,333

STOCK BASED COMPENSATION - Stoc

STOCK BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
STOCK BASED COMPENSATION
Unrecognized compensation cost related to stock options	$ 179,004
Period of recognition of unrecognized compensation expense	15 months
Number Of Options
Outstanding at the beginning of the period (in shares)	2,398,500
Granted (in shares)	1,000,000
Expired (in shares)	(440,000)
Outstanding at the end of the period (in shares)	2,958,500	2,398,500
Vested or expected to vest at the end of the period (in shares)	2,958,500
Exercisable and vested at the end of the period (in shares)	1,958,500
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 0.711
Granted (in dollars per share)	0.500
Expired (in dollars per share)	0.912
Outstanding at the end of the period (in dollars per share)	0.383	$ 0.711
Vested or expected to vest at the end of the period (in dollars per share)	0.383
Exercisable and vested at the end of the period (in dollars per share)	$ 0.451
Aggregate Intrinsic Value
Outstanding at the beginning of the period	$ 183,900
Outstanding at the end of the period	640,349	$ 183,900
Vested or expected to vest at the end of the period	640,349
Exercisable and vested at the end of the period	$ 373,163
Weighted Average Remaining Contractual Life
Outstanding at the end of the period	8 years 7 months 28 days	7 years 10 months 24 days
Vested or expected to vest at the end of the period	8 years 7 months 28 days
Exercisable and vested at the end of the period	8 years 4 months 13 days

STOCK BASED COMPENSATION - St44

STOCK BASED COMPENSATION - Stock Options Outstanding (Details)	9 Months Ended
	Dec. 31, 2016$ / sharesshares
Stock options outstanding but not vested, Number of Options
Outstanding at the beginning of the period (in shares) | shares	1,028,334
Granted (in shares) | shares	1,000,000
Expired (in shares) | shares	(13,334)
Vested (in shares) | shares	(1,015,000)
Outstanding at the end of the period (in shares) | shares	1,000,000
Stock options outstanding but not vested, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 0.117
Granted (in dollars per share) | $ / shares	0.500
Expired (in dollars per share) | $ / shares	0.670
Vested (in dollars per share) | $ / shares	0.080
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 0.250

STOCK BASED COMPENSATION - St45

STOCK BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details)	9 Months Ended
	Dec. 31, 2016$ / sharesshares
Stock Based Compensation By Exercise Price Range
Options Outstanding | shares	2,958,500
Options Exercisable | shares	1,958,500
$0.01-$1.00
Stock Based Compensation By Exercise Price Range
Exercise Price, Lower Range	$ 0.01
Exercise Price, Upper Range	$ 1
Options Outstanding | shares	2,770,000
Options Outstanding, Weighted Average Remaining Contractual Term	8 years 4 months 13 days
Options Outstanding, Weighted Average Exercise Price	$ 0.30
Options Exercisable | shares	1,770,000
Options Exercisable, Weighted Average Exercise Price	$ 0.33
$1.01-$1.96
Stock Based Compensation By Exercise Price Range
Exercise Price, Lower Range	1.01
Exercise Price, Upper Range	$ 1.96
Options Outstanding | shares	188,500
Options Outstanding, Weighted Average Remaining Contractual Term	3 months 15 days
Options Outstanding, Weighted Average Exercise Price	$ 1.59
Options Exercisable | shares	188,500
Options Exercisable, Weighted Average Exercise Price	$ 1.59

STOCK BASED COMPENSATION - Rest

STOCK BASED COMPENSATION - Restricted Stock Awards (Details) - Restricted Stock Awards	Nov. 10, 2016USD ($)shares
Share based compensation
Stock based compensation expense | $	$ 780,000
Leonard Anthony
Share based compensation
Shares granted	600,000
Philip A. Dur
Share based compensation
Shares granted	250,000
Michael R. Holly
Share based compensation
Shares granted	250,000
Robert G. Isaman
Share based compensation
Shares granted	200,000
Andrew A. Levy
Share based compensation
Shares granted	200,000

CONCENTRATION OF CREDIT RISK 47

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)customer	Dec. 31, 2015USD ($)	Mar. 31, 2016USD ($)
Concentration of credit risk and major customers
Accounts receivable	$ 771,202		$ 771,202		$ 2,022,480
Net sales	5,318,610	$ 3,506,560	$ 13,619,578	$ 11,985,422	16,853,952
Accounts Receivable | Customer Concentration Risk
Concentration of credit risk and major customers
Number of major customers | customer			4
Concentration risk percentage			84.00%
Accounts Receivable | Customer Concentration Risk | Customer A
Concentration of credit risk and major customers
Accounts receivable	288,182		$ 288,182
Concentration risk percentage			37.00%
Accounts Receivable | Customer Concentration Risk | Customer B
Concentration of credit risk and major customers
Accounts receivable	128,053		$ 128,053
Concentration risk percentage			17.00%
Accounts Receivable | Customer Concentration Risk | Customer C
Concentration of credit risk and major customers
Accounts receivable	124,102		$ 124,102
Concentration risk percentage			16.00%
Accounts Receivable | Customer Concentration Risk | Customer D
Concentration of credit risk and major customers
Accounts receivable	109,662		$ 109,662		$ 225,415
Concentration risk percentage			14.00%		11.00%
Accounts Receivable | Customer Concentration Risk | Customer E
Concentration of credit risk and major customers
Accounts receivable					$ 834,501
Concentration risk percentage					41.00%
Accounts Receivable | Customer Concentration Risk | Customer F
Concentration of credit risk and major customers
Accounts receivable					$ 315,699
Concentration risk percentage					16.00%
Net sales | Customer Concentration Risk | Customer A
Concentration of credit risk and major customers
Net sales	$ 3,113,121	$ 1,568,714	$ 6,398,186	$ 3,057,140
Concentration risk percentage	59.00%	45.00%	47.00%	26.00%
Net sales | Customer Concentration Risk | Customer B
Concentration of credit risk and major customers
Net sales			$ 2,166,171
Concentration risk percentage			16.00%
Net sales | Customer Concentration Risk | Customer C
Concentration of credit risk and major customers
Net sales			$ 1,537,488	$ 1,971,139
Concentration risk percentage			11.00%	17.00%
Net sales | Customer Concentration Risk | Customer D
Concentration of credit risk and major customers
Net sales	$ 1,000,198	$ 594,534	$ 1,383,451
Concentration risk percentage	19.00%	17.00%	10.00%
Net sales | Customer Concentration Risk | Customer E
Concentration of credit risk and major customers
Net sales				$ 1,459,013
Concentration risk percentage				12.00%
Net sales | Customer Concentration Risk | Customer F
Concentration of credit risk and major customers
Net sales				$ 1,192,848
Concentration risk percentage				10.00%
Net sales | Customer Concentration Risk | Customer G
Concentration of credit risk and major customers
Net sales		$ 354,469
Concentration risk percentage		10.00%
Net sales | WCMC
Concentration of credit risk and major customers
Net sales			$ 0

COMMITMENTS (Details)

COMMITMENTS (Details) $ in Millions	3 Months Ended	21 Months Ended
	Jun. 30, 2016ft²	Dec. 31, 2017USD ($)
GPX Wayne
Commitments
Area of land leased (in square feet) | ft²	1,100
Forecast
Commitments
Future executive salaries | $		$ 0.8

EARNINGS PER SHARE (EPS) (Detai

EARNINGS PER SHARE (EPS) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Basic EPS
Net income	$ 992,094	$ 12,003	$ 1,983,479	$ 472,960
Weighted average number of shares outstanding	28,156,115	27,324,593	27,602,775	26,084,080
Basic Income per share	$ 0.03	$ 0	$ 0.07	$ 0.02
Diluted EPS
Net income	$ 992,094	$ 12,003	$ 1,983,479	$ 472,960
Dilutive effect of stock options, warrants and preferred stock	717,122	185,387	658,335	126,126
Diluted weighted average shares	28,873,237	27,509,980	28,261,110	26,210,206
Diluted Income per share	$ 0.03	$ 0	$ 0.07	$ 0.02
Antidilutive securities excluded from computation of earnings per share amount (in shares)	423,500	2,630,837	1,428,500	3,407,066

CLAIM ASSIGNMENT SETTLEMENT (De

CLAIM ASSIGNMENT SETTLEMENT (Details) - USD ($)	Nov. 08, 2016	Dec. 31, 2016	Dec. 31, 2016	Apr. 21, 2015	Apr. 17, 2015
Claim Assignment Settlement
Gain from claims assignment settlement		$ 1,122,287	$ 1,122,287
Ranor, Inc. | Citigroup Financial Products Inc | Assignment of Claim Agreement
Claim Assignment Settlement
Unsecured claim sold and assigned					$ 3,740,956
Proceeds received from the sale and assignment of unsecured claim	$ 614,452
Ranor, Inc. | Citigroup Financial Products Inc | Assignment of Claim Agreement | Maximum
Claim Assignment Settlement
Additional amount to be received from the sale and assignment of unsecured claim					$ 614,452
Ranor, Inc. | Citigroup Financial Products Inc | Assignment of Claim Agreement | Current Liabilities
Claim Assignment Settlement
Initial amount received from the sale and assignment of unsecured claim				$ 507,835