Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Feb. 10, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | TECHPRECISION CORP | |
Entity Central Index Key | 0001328792 | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Title of 12(b) Security | None | |
Trading Symbol | TPCS | |
Security Exchange Name | NONE | |
Entity Address, State or Province | MA | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,254,594 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,968,405 | $ 2,036,646 |
Accounts receivable | 752,984 | 1,010,443 |
Contract assets | 3,800,928 | 4,390,832 |
Inventories | 1,512,082 | 1,240,315 |
Other current assets | 794,387 | 498,059 |
Total current assets | 8,828,786 | 9,176,295 |
Property, plant and equipment, net | 4,347,796 | 4,860,609 |
Deferred income taxes | 2,119,439 | 2,004,346 |
Other noncurrent assets, net | 43,913 | 6,233 |
Total assets | 15,339,934 | 16,047,483 |
Current liabilities: | ||
Accounts payable | 470,619 | 609,082 |
Accrued expenses | 981,255 | 753,499 |
Contract liabilities | 828,762 | 740,947 |
Current portion of long-term debt | 1,167,518 | 822,105 |
Total current liabilities | 3,448,154 | 2,925,633 |
Long-term debt | 2,481,948 | 3,410,542 |
Commitments and contingent liabilities ( Note 13) | ||
Stockholders' Equity: | ||
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 29,254,594 and 29,234,594 shares issued and outstanding, at December 31, 2019 and March 31, 2019 | 2,925 | 2,923 |
Additional paid in capital | 8,781,971 | 8,693,106 |
Accumulated other comprehensive income | 21,611 | 21,940 |
Retained earnings | 603,325 | 993,339 |
Total stockholders' equity | 9,409,832 | 9,711,308 |
Total liabilities and stockholders' equity | $ 15,339,934 | $ 16,047,483 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 29,254,594 | 29,234,594 |
Common stock, shares outstanding | 29,254,594 | 29,234,594 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | ||||
Net sales | $ 3,667,276 | $ 4,270,396 | $ 11,075,620 | $ 11,990,404 |
Cost of sales | 3,352,962 | 3,299,166 | 9,238,287 | 8,871,550 |
Gross profit | 314,314 | 971,230 | 1,837,333 | 3,118,854 |
Selling, general and administrative | 662,675 | 631,783 | 2,145,055 | 2,113,285 |
(Loss) income from operations | (348,361) | 339,447 | (307,722) | 1,005,569 |
Other income | 185 | 1,590 | 21,063 | 8,605 |
Interest expense | (69,328) | (88,314) | (218,447) | (273,948) |
Total other expense, net | (69,143) | (86,724) | (197,384) | (265,343) |
(Loss) income before income taxes | (417,504) | 252,723 | (505,106) | 740,226 |
Income tax (benefit) expense | (97,734) | 34,701 | (115,092) | 177,104 |
Net (loss) income | (319,770) | 218,022 | (390,014) | 563,122 |
Other comprehensive (loss) income, before tax: | ||||
Foreign currency translation adjustments | 9 | 18 | (329) | (2,402) |
Other comprehensive (loss) income, net of tax | 9 | 18 | (329) | (2,402) |
Comprehensive (loss) income | $ (319,761) | $ 218,040 | $ (390,343) | $ 560,720 |
Net (loss) income per share basic | $ (0.01) | $ 0.01 | $ (0.01) | $ 0.02 |
Net (loss) income per share diluted | $ (0.01) | $ 0.01 | $ (0.01) | $ 0.02 |
Weighted average number of shares outstanding - Basic | 29,254,594 | 28,858,560 | 29,254,230 | 28,835,957 |
Weighted average number of shares outstanding - Diluted | 29,254,594 | 30,427,218 | 29,254,230 | 30,158,509 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total |
Balance at Mar. 31, 2018 | $ 2,882 | $ 8,561,995 | $ 24,236 | $ (576,617) | $ 8,012,496 |
Balance (in shares) at Mar. 31, 2018 | 28,824,593 | ||||
Effect of adoption of ASC 606 | Accounting Standards Update 2014-09 [Member] | 19,647 | 19,647 | |||
Effect of adoption of ASU 201616 | Accounting Standards Update 2016-06 [Member] | 449,633 | 449,633 | |||
Stock based compensation | 24,930 | 24,930 | |||
Net (loss) income | $ 0 | 0 | 0 | 164,385 | 164,385 |
Foreign currency translation adjustment | (1,911) | (1,911) | |||
Balance at Jun. 30, 2018 | $ 2,882 | 8,586,925 | 22,325 | 57,048 | 8,669,180 |
Balance (in shares) at Jun. 30, 2018 | 28,824,593 | ||||
Balance at Mar. 31, 2018 | $ 2,882 | 8,561,995 | 24,236 | (576,617) | 8,012,496 |
Balance (in shares) at Mar. 31, 2018 | 28,824,593 | ||||
Net (loss) income | 563,122 | ||||
Balance at Dec. 31, 2018 | $ 2,895 | 8,668,709 | 21,834 | 455,785 | 9,149,223 |
Balance (in shares) at Dec. 31, 2018 | 28,949,593 | ||||
Balance at Jun. 30, 2018 | $ 2,882 | 8,586,925 | 22,325 | 57,048 | 8,669,180 |
Balance (in shares) at Jun. 30, 2018 | 28,824,593 | ||||
Stock based compensation | 71,588 | 71,588 | |||
Net (loss) income | $ 0 | 0 | 0 | 180,715 | 180,715 |
Foreign currency translation adjustment | (509) | (509) | |||
Balance at Sep. 30, 2018 | $ 2,882 | 8,658,513 | 21,816 | 237,763 | 8,920,974 |
Balance (in shares) at Sep. 30, 2018 | 28,824,593 | ||||
Non-vested restricted stock | (112,291) | (112,291) | |||
Shares issued under long-term incentive plan | $ 13 | 122,487 | 122,500 | ||
Shares issued under long-term incentive plan (in shares) | 125,000 | ||||
Net (loss) income | 218,022 | 218,022 | |||
Foreign currency translation adjustment | 18 | 18 | |||
Balance at Dec. 31, 2018 | $ 2,895 | 8,668,709 | 21,834 | 455,785 | 9,149,223 |
Balance (in shares) at Dec. 31, 2018 | 28,949,593 | ||||
Balance at Mar. 31, 2019 | $ 2,923 | 8,693,106 | 21,940 | 993,339 | 9,711,308 |
Balance (in shares) at Mar. 31, 2019 | 29,234,594 | ||||
Non-vested restricted stock | 30,625 | 30,625 | |||
Shares issued under long-term incentive plan | $ 2 | 7,198 | 7,200 | ||
Shares issued under long-term incentive plan (in shares) | 20,000 | ||||
Net (loss) income | 220,777 | 220,777 | |||
Foreign currency translation adjustment | (179) | (179) | |||
Balance at Jun. 30, 2019 | $ 2,925 | 8,730,929 | 21,761 | 1,214,116 | 9,969,731 |
Balance (in shares) at Jun. 30, 2019 | 29,254,594 | ||||
Balance at Mar. 31, 2019 | $ 2,923 | 8,693,106 | 21,940 | 993,339 | 9,711,308 |
Balance (in shares) at Mar. 31, 2019 | 29,234,594 | ||||
Net (loss) income | (390,014) | ||||
Balance at Dec. 31, 2019 | $ 2,925 | 8,781,971 | 21,611 | 603,325 | 9,409,832 |
Balance (in shares) at Dec. 31, 2019 | 29,254,594 | ||||
Balance at Jun. 30, 2019 | $ 2,925 | 8,730,929 | 21,761 | 1,214,116 | 9,969,731 |
Balance (in shares) at Jun. 30, 2019 | 29,254,594 | ||||
Non-vested restricted stock | 30,625 | 30,625 | |||
Net (loss) income | (291,021) | (291,021) | |||
Foreign currency translation adjustment | (159) | (159) | |||
Balance at Sep. 30, 2019 | $ 2,925 | 8,761,554 | 21,602 | 923,095 | 9,709,176 |
Balance (in shares) at Sep. 30, 2019 | 29,254,594 | ||||
Non-vested restricted stock | 20,417 | 20,417 | |||
Net (loss) income | (319,770) | (319,770) | |||
Foreign currency translation adjustment | 9 | 9 | |||
Balance at Dec. 31, 2019 | $ 2,925 | $ 8,781,971 | $ 21,611 | $ 603,325 | $ 9,409,832 |
Balance (in shares) at Dec. 31, 2019 | 29,254,594 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (390,014) | $ 563,122 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 548,038 | 558,571 |
Amortization of debt issue costs | 31,280 | 43,638 |
Stock based compensation expense | 81,667 | 106,727 |
Change in contract loss provision | 216,039 | 24,541 |
Deferred income taxes | (115,092) | 177,104 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 257,459 | 1,299,194 |
Inventories | (271,767) | (1,004,145) |
Contract assets | 589,904 | (5,912,297) |
Other current assets | (296,328) | (14,174) |
Other noncurrent assets | (9,419) | (7,245) |
Accounts payable | (138,463) | 279,893 |
Accrued expenses | 18,282 | 202,860 |
Contract liabilities | 87,815 | 3,803,087 |
Net cash provided by (used in) operating activities | 609,401 | 120,876 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (35,225) | (402,880) |
Net cash used in investing activities | (35,225) | (402,880) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Deferred loan costs | (32,209) | 0 |
Repayment of long-term debt | (610,515) | (569,809) |
Net cash used in financing activities | (642,724) | (569,809) |
Effect of exchange rate on cash and cash equivalents | 307 | 628 |
Net decrease in cash and cash equivalents | (68,241) | (851,185) |
Cash and cash equivalents, beginning of period | 2,036,646 | 2,689,110 |
Cash and cash equivalents, end of period | 1,968,405 | 1,837,925 |
Cash paid during the year for: | ||
Interest | 187,083 | 230,310 |
Income taxes | $ 0 | $ 0 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Dec. 31, 2019 | |
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. TechPrecision, Ranor, and WCMC are collectively referred to as the “Company”, “we”, “us” or “our”. We manufacture large scale fabricated and machined precision metal components and equipment. These products are used in a variety of markets including defense and aerospace, nuclear, medical, and precision industrial. We consider our business to consist of one segment - metal fabrication and precision machining. All of our operations and customers are located in the United States. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of December 31, 2019 and March 31, 2019, the condensed consolidated statements of operations and comprehensive (loss) income for the three and nine months ended December 31, 2019 and 2018, the condensed consolidated statements of stockholders’ equity for each of the three months ended June 30, 2019 and 2018, September 30, 2019 and 2018, and December 31, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2019 and 2018 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. These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, or the 2019 Form 10-K, filed with the SEC on June 27, 2019. Use of Estimates in the Preparation of Financial Statements - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and revenues and expenses during the reported period. We continually evaluate our estimates, including those related to contract accounting, accounts receivable, inventories, recovery of long-lived assets, income taxes and the valuation of equity transactions. We base our estimates on historical and current experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. |
ACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE | 9 Months Ended |
Dec. 31, 2019 | |
ACCOUNTING STANDARDS UPDATE | |
ACCOUNTING STANDARDS UPDATE | NOTE 3 - ACCOUNTING STANDARDS UPDATE New Accounting Standards Recently Issued In December, 2019, the Financial Accounting Standards Board, or FASB issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , expected to reduce cost and complexity related to the accounting for income taxes. This ASU removes specific exceptions to the general principles in Topic 740 under U.S. GAAP and eliminates the need to analyze certain exceptions in a given period. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company is currently evaluating the amendments in this update to determine the impact it may have on its financial statements and disclosures. New Accounting Standards Recently Adopted On April 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases, or Accounting Standards Codification 842 (ASC 842) and all the related amendments using the modified retrospective method. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. The most significant effects of the standard on our condensed consolidated financial statements are (1) the recognition of new right-of-use asset and lease liability on our condensed consolidated balance sheet for an operating lease, and (2) new disclosures about our leasing activities (see Note 12). The adoption did not result in a cumulative-effect adjustment to retained earnings. The new standard did not have a material impact on our results of operations, balance sheet or cash flows. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. The new lease standard requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We also adopted the following ASUs effective April 1, 2019, none of which had a material impact to our financial statements or financial statement disclosures: ASU 2018-13 Fair Value Measurement - Changes to the Disclosure Requirements for Fair Value Measurement, ASU 2018-07, Compensation - Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting, and ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
REVENUE
REVENUE | 9 Months Ended |
Dec. 31, 2019 | |
REVENUE | |
REVENUE | NOTE 4 - REVENUE The Company generates its revenues from performance obligations completed under contracts with customers in three main market sectors: defense, energy and precision industrial. The period over which the Company performs is generally less than one year. The Company invoices and receives related payments based on performance progress not less frequently than monthly. Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type sales only. The following table presents net sales on a disaggregated basis by market and contract type: Net Sales by market Defense Energy Industrial Totals Three months ended December 31, 2019 $ 3,200,671 $ 373,357 $ 93,248 $ 3,667,276 Three months ended December 31, 2018 $ 4,196,944 $ 33,790 $ 39,662 $ 4,270,396 Nine months ended December 31, 2019 $ 9,725,635 $ 450,914 $ 899,071 $ 11,075,620 Nine months ended December 31, 2018 $ 11,507,854 $ 267,794 $ 214,756 $ 11,990,404 Net Sales by contract type Over-time Point-in-time Totals Three months ended December 31, 2019 $ 3,439,367 $ 227,909 $ 3,667,276 Three months ended December 31, 2018 $ 4,086,713 $ 183,683 $ 4,270,396 Nine months ended December 31, 2019 $ 9,104,395 $ 1,971,225 $ 11,075,620 Nine months ended December 31, 2018 $ 11,314,599 $ 675,805 $ 11,990,404 As of December 31, 2019, the Company had $17.0 million of remaining performance obligations, of which $13.6 million were less than 50% complete. We would expect to recognize all of the remaining performance obligations as revenue within the next 24 months. We are dependent each year on a small number of customers who generate a significant portion of our business. These customers change from year to year. The following table lists customers who accounted for more than 10% of our net sales: Three months ended Three months ended Nine months ended Nine months ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Customer Amount Percent Amount Percent Amount Percent Amount Percent A $ 1,215,737 33 % $ 1,124,294 26 % $ 2,320,485 21 % $ 2,117,342 18 % B $ 727,084 20 % $ 1,008,264 24 % $ 1,825,213 16 % $ 2,609,284 22 % C $ 404,062 11 % $ * * % $ 1,790,311 16 % $ * * % D $ * * % $ * * % $ 1,148,242 10 % $ * * % E $ * * % $ 1,183,208 28 % $ 1,136,146 10 % $ 4,293,047 36 % *Less than 10% of total On our condensed consolidated balance sheet, contract assets and contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In fiscal 2020, we recognized revenue of $0.6 million related to our contract liabilities at March 31, 2019. At December 31, 2019 contract assets consisted of the following: Less: Progress Contract assets Unbilled payments Total December 31, 2019 $ 8,870,887 $ 5,069,959 $ 3,800,928 March 31, 2019 $ 9,324,361 $ 4,933,529 $ 4,390,832 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | NOTE 5 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes . The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year profit or loss before taxes, adjusted for the impact of discrete quarterly items. We recorded an income tax benefit of $115,092 for the nine months ended December 31, 2019. Income tax expense was $177,104 for the nine months ended December 31, 2018. The Company's effective tax rates for the nine months ended December 31, 2019 and 2018 were 22.8% and 23.9%, respectively. The valuation allowance on deferred tax assets was approximately $1.7 million at December 31, 2019. We believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards and other deferred tax assets will not be realized. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, the Company could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in the Company’s effective tax rate. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 6 - EARNINGS PER SHARE Basic earnings per share, or EPS, is computed by dividing reported earnings available to stockholders by the weighted average number of shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260. Three months Three months Nine months Nine months ended ended ended ended December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Basic EPS: Net (loss) income $ (319,770) $ 218,022 $ (390,014) $ 563,122 Weighted average shares 29,254,594 28,858,560 29,254,230 28,835,957 Basic (loss) income per share $ (0.01) $ 0.01 $ (0.01) $ 0.02 Diluted EPS: Net (loss) income $ (319,770) $ 218,022 $ (390,014) $ 563,122 Dilutive effect of stock options — 1,568,658 — 1,322,552 Diluted weighted average shares 29,254,594 30,427,218 29,254,230 30,158,509 Diluted (loss) income per share $ (0.01) $ 0.01 $ (0.01) $ 0.02 All potential common stock equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three and nine months ended December 31, 2019, there were 2,967,000 of potentially anti-dilutive stock options, none of which were included in the EPS calculations above. For the three and nine months ended December 31, 2018, there were 171,000 and 642,668, respectively, of potential common stock equivalents that were out-of-the-money and were not included in the EPS calculations above. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 7 – STOCK-BASED COMPENSATION The TechPrecision Corporation 2016 Equity Incentive Plan, or 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 purpose of the 2016 Plan is 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 with respect to 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). 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. 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 is computed is zero. The risk-free interest rate is selected based upon yields of 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. We account for award forfeitures as they occur. As such, the assumed period for each vesting tranche is computed separately and then averaged together to determine the expected term for the award. At December 31, 2019, there were 1,573,000 shares available for grant under the 2016 Plan. The following table summarizes information about options for the most recently completed periods: Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2018 3,394,668 $ 0.417 $ 698,200 6.72 Granted 150,000 $ 0.800 Exercised (365,000) $ 0.271 Canceled (241,668) $ 1.226 Outstanding at 3/31/2019 2,938,000 $ 0.416 $ 1,869,200 Exercised $ Canceled — Outstanding at 12/31/2019 $ $ Vested or expected to vest at 12/31/2019 $ $ Exercisable and vested at 12/31/2019 $ $ The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2019. This amount changes based on the fair market value of the Company’s common stock. All of the options are vested and exercisable and the maximum contractual term is ten years for option grants. On April 5, 2019, the Company issued 20,000 shares of the Company’s common stock, par value $0.0001 per share, pursuant to an option award exercised on March 20, 2019, granted previously under the Company’s 2016 Long-Term Incentive Plan. At December 31, 2019, there was no remaining unrecognized compensation cost related to stock options. Other information relating to stock options outstanding at December 31, 2019 is as follows: Weighted Average Remaining Weighted Weighted Options Contractual Average Options Average Range of Exercise Prices: Outstanding Term Exercise Price Exercisable Exercise Price $0.01‑$1.00 $ $ $1.01‑$1.96 $ $ Totals Restricted Stock Awards On December 7, 2018 we granted a total of 100,000 shares of restricted stock under the 2016 Plan to the board of directors and a total of 25,000 shares of restricted stock to our executive officers. The stock-based compensation expense of $122,500 for service-based restricted stock was measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. On December 7, 2019, the shares of restricted stock fully vested and ceased to be subject to forfeiture, one year following the grant date. The aggregate fair value of the restricted stock expensed during the nine months ended December 31, 2019 was $81,667. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Dec. 31, 2019 | |
CONCENTRATION OF CREDIT RISK | |
CONCENTRATION OF CREDIT RISK | NOTE 8 - CONCENTRATION OF CREDIT RISK We maintain bank account balances, which, at times, may exceed insured limits. We have not experienced any losses with these accounts and believe that we are not exposed to any significant credit risk on cash. At December 31, 2019, there were trade accounts receivable balances outstanding from eight customers comprising 98% of the total trade receivables balance. The following table sets forth information as to trade accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of: December 31, 2019 March 31, 2019 Customer Dollars Percent Dollars Percent A $ 183,821 24 % $ 246,019 24 % B $ 149,500 20 % $ * * % C $ 132,453 18 % $ * * % D $ 81,780 11 % $ * * % E $ 78,430 10 % $ 339,032 34 % F $ * * % $ 244,500 24 % * less than 10% of total |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 9 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | NOTE 9 - OTHER CURRENT ASSETS December 31, 2019 March 31, 2019 Payments advanced to suppliers $ 389,711 $ 133,861 Prepaid insurance 273,034 203,601 Prepaid subscriptions 28,021 27,096 Prepaid taxes 35,207 31,707 Refundable AMT credits 60,841 60,841 Employee advances 628 15,380 Other 6,945 25,573 Total $ 794,387 $ 498,059 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | NOTE 10 - ACCRUED EXPENSES December 31, 2019 March 31, 2019 Accrued compensation $ 339,262 $ 284,651 Provision for contract losses 273,831 57,792 Accrued professional fees 276,383 267,309 Accrued project costs 50,923 118,929 Other 40,856 24,818 Total $ 981,255 $ 753,499 Accrued compensation includes amounts for 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. The provision for contract losses has increased by $0.2 million since March 31, 2019. Accrued project costs are estimates for certain project expenses during the reporting period. |
DEBT
DEBT | 9 Months Ended |
Dec. 31, 2019 | |
DEBT | |
DEBT | NOTE 11 – DEBT December 31, 2019 March 31, 2019 Berkshire Term Loan due December 2021 $ 2,588,183 $ 2,656,985 People’s Equipment Loan Facility due April 2021 1,073,373 1,606,953 Obligation under finance lease 25,279 33,411 Total debt $ 3,686,835 $ 4,297,349 Less: debt issue costs unamortized $ 37,369 $ 64,702 Total debt, net $ 3,649,466 $ 4,232,647 Less: Current portion of long-term debt $ 1,167,518 $ 822,105 Total long-term debt, net $ 2,481,948 $ 3,410,542 Berkshire Term Loan Facility On December 21, 2016, TechPrecision, through Ranor, closed on a Loan Agreement, or the Berkshire Loan Agreement, with Berkshire Bank. Pursuant to the Berkshire Loan Agreement, Berkshire Bank made a term loan to Ranor in the amount of $2,850,000, or the Term Loan, and made available to Ranor a revolving line of credit in the amount of $1,000,000, or the Revolver Loan, and together with the Term Loan, collectively, the Berkshire Loans. The Berkshire Loans are secured by a first lien on all personal and real property of Ranor. Payments on the Term Loan began on January 20, 2017 and will be made in 60 monthly installments of $19,260 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 were 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 bore 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. Ranor’s obligations under the Berkshire Loan Agreement are guaranteed by TechPrecision. The Company pays, as consideration for the bank’s commitment to make advances under the Revolver Loan, a nonrefundable commitment fee equal to 0.25% per annum on the average daily difference between the amount of $1,000,000 and the aggregate amount of all advances made under the Revolver Loan as of each quarterly period. On December 19, 2018, the Company entered into a Second Modification to Loan Agreement and First Modification and Allonge to Promissory Note with Berkshire Bank, or the Modification. The Modification amended and modified the Berkshire Loan Agreement, and the related Promissory Note dated December 20, 2016 made by Ranor in favor of Berkshire in the stated principal amount of $1,000,000. Under the terms of the Berkshire Loan Agreement and the related promissory note, Ranor was entitled to borrow up to $1,000,000 on a revolving basis. As of the date of the Modification, there were no amounts outstanding under the Revolver Loan. The maturity date of the Revolver Loan was originally December 20, 2018. Under the Modification, the maturity date of the Revolver Loan was extended until December 20, 2020. The Company paid $7,245 of expenses related to the execution of the Modification, which are classified as other noncurrent assets. On December 23, 2019, TechPrecision, through Ranor, entered into a Third Modification to Loan Agreement , or the Third Modification, and an Amended and Restated Promissory Note with Berkshire Bank. Under the Third Modification, Ranor and Berkshire agreed to increase the maximum principal amount available under the Revolver Loan from $1,000,000 to $3,000,000. Advances under the Revolver Loan are now subject to the lesser of (a) $3,000,000 or (b) the sum of (i) 80% of eligible accounts receivable, plus (ii) the lesser of (x) 25% of Eligible Raw Material Inventory, and (y) $250,000, plus (iii) 50% of the Appraised Value of the Eligible Equipment. The loan agreement is available for refinancing existing indebtedness and for working capital and general corporate purposes. Additionally, the parties agreed to lower the interest rate on advances made under the Revolver Loan based on LIBOR. Prior to the Third Modification, interest accrued on advances made under the Revolver Loan at a variable rate equal to the one-month LIBOR plus 275 basis points. Under the Third Modification, interest accrues on such advances at a variable rate equal to the one-month LIBOR plus 225 basis points. The Third Modification contains customary LIBOR replacement provisions. The Third Modification also excludes the balance of the Revolver Loan from the Loan-to-Value Ratio covenant calculations and excludes the Company’s anticipated repayment of its obligations to People’s Capital and Leasing Corp from the calculation of the financial covenants. If the Company repays People’s in full in January 2020, the debt service requirements related to the People’s obligations will be eliminated for purposes of the Debt Service Coverage Ratio covenant calculations and the debt service related to the People’s financing will be eliminated from covenant testing starting with the December 31, 2019 covenant test. The Company paid $41,628 in costs related to the execution of the Third Modification, which are classified as other noncurrent assets. The maturity date of the Revolver Loan remains December 20, 2020, and all other material terms of the Loan Agreement and Line of Credit Note were unchanged. The Berkshire Loans may be accelerated upon the occurrence of an “Event of Default” (as defined in the Berkshire 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 Berkshire Loan Agreement or any other obligation to Berkshire; (iii) the failure of Ranor or TechPrecision to pay any indebtedness in excess of $100,000 (other than the Berkshire Loans) when due; (iv) any representation or warranty of Ranor or TechPrecision in the Berkshire 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 Berkshire 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 Berkshire Bank’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. Subject to the lapse of any applicable cure period, a default under the Berkshire Loans could cause the acceleration of all outstanding obligations under the Berkshire Loans. Pursuant to the Berkshire Loan Agreement, the Company covenants to cause its balance sheet leverage to be less than or equal to 2.50 to 1.00 for the fiscal year ending March 31, 2019 and each fiscal year end thereafter. The Berkshire Loan Agreement also contains a covenant whereby the Company is required to maintain a debt service coverage ratio, or DSCR, of at least 1.2 to 1.0 during the term of the Berkshire Loans. The DSCR is measured at the end of each fiscal quarter of the Company. The Company was in compliance with all of the financial covenants at December 31, 2019 and March 31, 2019. Also, Ranor’s annual capital expenditures cannot exceed $1,500,000 for the fiscal year ending March 31, 2020 and each fiscal year thereafter. The Berkshire 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. There were no amounts outstanding under the Revolver Loan at December 31, 2019 and March 31, 2019. Other unamortized debt issue costs at December 31, 2019 and March 31, 2019 were $23,549 and $32,982, respectively. People’s 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. The MLSA is dated and became 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 was secured by a first lien on certain machinery and equipment of Ranor, or the Equipment Collateral. Payments on the People’s Loan were to 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 applied during the first four years of the loan term. Ranor’s obligations under the MLSA were guaranteed by TechPrecision. The Company covenanted to maintain a DSCR of at least 1.5 to 1.0 during the term of the People’s Loan. The DSCR was measured at the end of each fiscal year of the Company. The Company was in compliance with the DSCR at March 31, 2019. The People’s Loan was subjected to acceleration upon the occurrence of an “Event of Default” (as defined in the MLSA). Some of the Events of Default were subject to certain cure periods. The Company was in compliance with all of the financial covenants at March 31, 2019. On October 4, 2016, TechPrecision and Ranor became committed to Schedule No. 002 to the MLSA, or Schedule 002. Pursuant to Schedule 002, 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 002. Ranor was to repay the Additional People’s Loan in monthly installments of principal and interest of $7,399 over 60 months. The Additional People’s Loan was 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 was secured by a security interest in certain machinery and equipment of Ranor as provided in Schedule 002. 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, amended the definition of “Permitted Liens” under the MLSA to include the liens held by Berkshire Bank pursuant to the terms of the Berkshire Loan Agreement and to delete the reference to the liens held by a former creditor of the Company. Unamortized debt issue costs at December 31, 2019 and March 31, 2019, were $13,820 and 31,720, respectively. Collateral securing the above obligations comprised all personal and real property of TechPrecision and Ranor, including cash, accounts receivable, inventories, equipment, financial and intangible assets. On January 16 and 17, 2020, the Company paid off its remaining debt obligation related to the People’s Equipment Loan Facility. See Note 14 for information regarding this transaction. Finance Lease See Note 12 for information regarding our obligations under the finance lease. |
LEASES
LEASES | 9 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | NOTE 12 – LEASES We were a party to an operating lease that expired under the contract terms in October 2019. Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased, or right-of-use assets in finance lease arrangements are reported in net property, plant and equipment on our condensed consolidated balance sheet. The following table lists our right-of-use assets and liabilities on our condensed consolidated balance at: December 31, Finance lease: 2019 Property, plant and equipment $ 54,376 Accumulated depreciation 32,626 Net property, plant and equipment $ 21,750 Current portion of long-term debt $ 11,617 Long-term debt $ 13,662 Total finance lease liabilities $ 25,279 Future payments for our finance lease follows by fiscal year: 2020: $3,300, 2021: $13,200 and 2022: $11,000. The amount representing finance lease interest is $2,221. Other supplemental information regarding our leases are contained in the following tables: December 31, Components of lease expense for the period ended: 2019 Operating lease amortization $ 1,756 Operating lease interest $ 83 Finance lease amortization $ 8,132 Finance lease interest $ 1,768 December 31, Weighted average lease term and discount rate at: 2019 Lease term (years) 2.08 Lease rate 8 % December 31, Supplemental cash flow information related to leases for the period ended: 2019 Cash used in operating activities $ 1,768 Cash used in financing activities $ 8,132 |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS | |
COMMITMENTS | NOTE 13 - COMMITMENTS Retirement Benefits Ranor has a defined contribution and savings plan that covers substantially all Ranor employees who have completed 90 days of service. Ranor retains the option to match employee contributions. The Company contributed $60,269 and $61,251 in the nine months ended December 31, 2019 and 2018, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS On January 16, 2020, TechPrecision through Ranor repaid in full Ranor’s indebtedness under Schedule No. 002, to the MLSA. Under Schedule 002 to the MSLA, Ranor had borrowed an initial principal amount of $365,852, secured by certain machinery and equipment. The loan was required to be repaid in monthly installments of principal and interest of $7,399 over 60 months. Upon the payment of approximately $147,000, which amount included a 1% prepayment penalty of approximately $1,400, all commitments under Schedule 002 to the MSLA were terminated, and People’s discharged and released all guarantees and liens existing in connection with such loan, thereby terminating such loan agreement schedule. On January 17, 2020, the Company, through Ranor, repaid in full Ranor’s indebtedness under Schedule 001 to the MSLA. Under Schedule 001 to the MSLA, Ranor had borrowed an initial principal amount of $3,011,648, secured by certain machinery and equipment. The loan was required to be repaid in 60 monthly installments of $60,921 each, inclusive of interest at a fixed rate of 7.90% per annum. Upon the payment of approximately $936,000, which amount included a 1% prepayment penalty of approximately $9,200, all commitments under Schedule 001 to the MSLA were terminated, and People’s discharged and released all guarantees and liens existing in connection with such loan, thereby terminating such loan agreement schedule. As all previously outstanding obligations under the MSLA have been satisfied in full, Ranor is no longer bound by any material terms of the MSLA. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of December 31, 2019 and March 31, 2019, the condensed consolidated statements of operations and comprehensive (loss) income for the three and nine months ended December 31, 2019 and 2018, the condensed consolidated statements of stockholders’ equity for each of the three months ended June 30, 2019 and 2018, September 30, 2019 and 2018, and December 31, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2019 and 2018 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. These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, or the 2019 Form 10-K, filed with the SEC on June 27, 2019. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and revenues and expenses during the reported period. We continually evaluate our estimates, including those related to contract accounting, accounts receivable, inventories, recovery of long-lived assets, income taxes and the valuation of equity transactions. We base our estimates on historical and current experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Schedule of Disaggregation of Revenue | The following table presents net sales on a disaggregated basis by market and contract type: Net Sales by market Defense Energy Industrial Totals Three months ended December 31, 2019 $ 3,200,671 $ 373,357 $ 93,248 $ 3,667,276 Three months ended December 31, 2018 $ 4,196,944 $ 33,790 $ 39,662 $ 4,270,396 Nine months ended December 31, 2019 $ 9,725,635 $ 450,914 $ 899,071 $ 11,075,620 Nine months ended December 31, 2018 $ 11,507,854 $ 267,794 $ 214,756 $ 11,990,404 Net Sales by contract type Over-time Point-in-time Totals Three months ended December 31, 2019 $ 3,439,367 $ 227,909 $ 3,667,276 Three months ended December 31, 2018 $ 4,086,713 $ 183,683 $ 4,270,396 Nine months ended December 31, 2019 $ 9,104,395 $ 1,971,225 $ 11,075,620 Nine months ended December 31, 2018 $ 11,314,599 $ 675,805 $ 11,990,404 |
Schedule of Contract Assets | At December 31, 2019 contract assets consisted of the following: Less: Progress Contract assets Unbilled payments Total December 31, 2019 $ 8,870,887 $ 5,069,959 $ 3,800,928 March 31, 2019 $ 9,324,361 $ 4,933,529 $ 4,390,832 |
Sales [Member] | |
Schedules of Concentration of Risk, by Risk Factor | Three months ended Three months ended Nine months ended Nine months ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Customer Amount Percent Amount Percent Amount Percent Amount Percent A $ 1,215,737 33 % $ 1,124,294 26 % $ 2,320,485 21 % $ 2,117,342 18 % B $ 727,084 20 % $ 1,008,264 24 % $ 1,825,213 16 % $ 2,609,284 22 % C $ 404,062 11 % $ * * % $ 1,790,311 16 % $ * * % D $ * * % $ * * % $ 1,148,242 10 % $ * * % E $ * * % $ 1,183,208 28 % $ 1,136,146 10 % $ 4,293,047 36 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Schedule of Basic and Diluted earnings per share | Three months Three months Nine months Nine months ended ended ended ended December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Basic EPS: Net (loss) income $ (319,770) $ 218,022 $ (390,014) $ 563,122 Weighted average shares 29,254,594 28,858,560 29,254,230 28,835,957 Basic (loss) income per share $ (0.01) $ 0.01 $ (0.01) $ 0.02 Diluted EPS: Net (loss) income $ (319,770) $ 218,022 $ (390,014) $ 563,122 Dilutive effect of stock options — 1,568,658 — 1,322,552 Diluted weighted average shares 29,254,594 30,427,218 29,254,230 30,158,509 Diluted (loss) income per share $ (0.01) $ 0.01 $ (0.01) $ 0.02 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION | |
Schedule of options | Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2018 3,394,668 $ 0.417 $ 698,200 6.72 Granted 150,000 $ 0.800 Exercised (365,000) $ 0.271 Canceled (241,668) $ 1.226 Outstanding at 3/31/2019 2,938,000 $ 0.416 $ 1,869,200 Exercised $ Canceled — Outstanding at 12/31/2019 $ $ Vested or expected to vest at 12/31/2019 $ $ Exercisable and vested at 12/31/2019 $ $ |
Schedule of exercise price range | Weighted Average Remaining Weighted Weighted Options Contractual Average Options Average Range of Exercise Prices: Outstanding Term Exercise Price Exercisable Exercise Price $0.01‑$1.00 $ $ $1.01‑$1.96 $ $ Totals |
CONCENTRATION OF CREDIT RISK (T
CONCENTRATION OF CREDIT RISK (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | December 31, 2019 March 31, 2019 Customer Dollars Percent Dollars Percent A $ 183,821 24 % $ 246,019 24 % B $ 149,500 20 % $ * * % C $ 132,453 18 % $ * * % D $ 81,780 11 % $ * * % E $ 78,430 10 % $ 339,032 34 % F $ * * % $ 244,500 24 % |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | December 31, 2019 March 31, 2019 Payments advanced to suppliers $ 389,711 $ 133,861 Prepaid insurance 273,034 203,601 Prepaid subscriptions 28,021 27,096 Prepaid taxes 35,207 31,707 Refundable AMT credits 60,841 60,841 Employee advances 628 15,380 Other 6,945 25,573 Total $ 794,387 $ 498,059 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | December 31, 2019 March 31, 2019 Accrued compensation $ 339,262 $ 284,651 Provision for contract losses 273,831 57,792 Accrued professional fees 276,383 267,309 Accrued project costs 50,923 118,929 Other 40,856 24,818 Total $ 981,255 $ 753,499 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
DEBT | |
Schedule of outstanding debt obligations | December 31, 2019 March 31, 2019 Berkshire Term Loan due December 2021 $ 2,588,183 $ 2,656,985 People’s Equipment Loan Facility due April 2021 1,073,373 1,606,953 Obligation under finance lease 25,279 33,411 Total debt $ 3,686,835 $ 4,297,349 Less: debt issue costs unamortized $ 37,369 $ 64,702 Total debt, net $ 3,649,466 $ 4,232,647 Less: Current portion of long-term debt $ 1,167,518 $ 822,105 Total long-term debt, net $ 2,481,948 $ 3,410,542 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of Right of use assets and liabilities | The following table lists our right-of-use assets and liabilities on our condensed consolidated balance at: December 31, Finance lease: 2019 Property, plant and equipment $ 54,376 Accumulated depreciation 32,626 Net property, plant and equipment $ 21,750 Current portion of long-term debt $ 11,617 Long-term debt $ 13,662 Total finance lease liabilities $ 25,279 |
Schedule of Supplemental Information of leases | Other supplemental information regarding our leases are contained in the following tables: December 31, Components of lease expense for the period ended: 2019 Operating lease amortization $ 1,756 Operating lease interest $ 83 Finance lease amortization $ 8,132 Finance lease interest $ 1,768 December 31, Weighted average lease term and discount rate at: 2019 Lease term (years) 2.08 Lease rate 8 % |
Schedule of Supplemental Cash flow information | December 31, Supplemental cash flow information related to leases for the period ended: 2019 Cash used in operating activities $ 1,768 Cash used in financing activities $ 8,132 |
REVENUE - Disaggregated basis (
REVENUE - Disaggregated basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 3,667,276 | $ 4,270,396 | $ 11,075,620 | $ 11,990,404 |
Over-time | ||||
Revenue from Contract with Customer, Including Assessed Tax | 3,439,367 | 4,086,713 | 9,104,395 | 11,314,599 |
Point-in-time | ||||
Revenue from Contract with Customer, Including Assessed Tax | 227,909 | 183,683 | 1,971,225 | 675,805 |
Defense | ||||
Revenue from Contract with Customer, Including Assessed Tax | 3,200,671 | 4,196,944 | 9,725,635 | 11,507,854 |
Energy | ||||
Revenue from Contract with Customer, Including Assessed Tax | 373,357 | 33,790 | 450,914 | 267,794 |
Industrial | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 93,248 | $ 39,662 | $ 899,071 | $ 214,756 |
REVENUE - Net sales from custom
REVENUE - Net sales from customers (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 3,667,276 | $ 4,270,396 | $ 11,075,620 | $ 11,990,404 |
Customer A | Sales Revenue, Net | ||||
Revenues | $ 1,215,737 | $ 1,124,294 | $ 2,320,485 | $ 2,117,342 |
Concentration risk percentage | 33.00% | 26.00% | 21.00% | 18.00% |
Customer B | Sales Revenue, Net | ||||
Revenues | $ 727,084 | $ 1,008,264 | $ 1,825,213 | $ 2,609,284 |
Concentration risk percentage | 20.00% | 24.00% | 16.00% | 22.00% |
Customer C | Sales Revenue, Net | ||||
Revenues | $ 404,062 | $ 1,790,311 | ||
Concentration risk percentage | 11.00% | 16.00% | ||
Customer D | Sales Revenue, Net | ||||
Revenues | $ 1,148,242 | |||
Concentration risk percentage | 10.00% | |||
Customer E | Sales Revenue, Net | ||||
Revenues | $ 1,183,208 | $ 1,136,146 | $ 4,293,047 | |
Concentration risk percentage | 28.00% | 10.00% | 36.00% |
REVENUE - Contract Assests and
REVENUE - Contract Assests and Contract Liabilities (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Contract assets | $ 3,800,928 | $ 4,390,832 |
Unbilled | ||
Contract assets | 8,870,887 | 9,324,361 |
Less: Progress payments | ||
Contract assets | $ 5,069,959 | $ 4,933,529 |
REVENUE - Additional informatio
REVENUE - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | |
REVENUE | ||
Revenue, Remaining Performance Obligation, Amount | $ 17 | |
Revenue Remaining Performance Obligation Completed Less Than 50 | $ 13.6 | |
Revenue, Remaining Performance Obligation, Percentage | 50.00% | |
Revenue Recognized By Contract Liabilities | $ 0.6 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES | ||||
Income tax (benefit) expense | $ (97,734) | $ 34,701 | $ (115,092) | $ 177,104 |
Effective Income Tax Rate Reconciliation, Percent | 22.80% | 23.90% | ||
Deferred Tax Assets, Valuation Allowance | $ 1,700,000 | $ 1,700,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic EPS: | ||||||||
Net (loss) income | $ (319,770) | $ (291,021) | $ 220,777 | $ 218,022 | $ 180,715 | $ 164,385 | $ (390,014) | $ 563,122 |
Weighted average shares | 29,254,594 | 28,858,560 | 29,254,230 | 28,835,957 | ||||
Basic (loss) income per share | $ (0.01) | $ 0.01 | $ (0.01) | $ 0.02 | ||||
Diluted EPS: | ||||||||
Net (loss) income | $ (319,770) | $ (291,021) | $ 220,777 | $ 218,022 | $ 180,715 | $ 164,385 | $ (390,014) | $ 563,122 |
Dilutive effect of stock options | 1,568,658 | 1,322,552 | ||||||
Diluted weighted average shares | 29,254,594 | 30,427,218 | 29,254,230 | 30,158,509 | ||||
Net (loss) income per share diluted | $ (0.01) | $ 0.01 | $ (0.01) | $ 0.02 | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 2,967,000 | 171,000 | 2,967,000 | 642,668 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Number Of Options | |||
Outstanding at the beginning of the period (in shares) | 2,938,000 | 3,394,668 | |
Granted (in shares) | 150,000 | ||
Exercised (in shares) | (20,000) | (365,000) | |
Canceled (in shares) | (1,000) | (241,668) | |
Outstanding at the end of the period (in shares) | 2,917,000 | 2,938,000 | 3,394,668 |
Vested or expected to vest at the end of the period (in shares) | 2,917,000 | ||
Exercisable and vested at the end of the period (in shares) | 2,917,000 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0.416 | $ 0.417 | |
Granted (in dollars per share) | 0.800 | ||
Exercised (in shares) | 0.360 | 0.271 | |
Canceled (in dollars per share) | 0 | 1.226 | |
Outstanding at the end of the period (in dollars per share) | 0.416 | $ 0.416 | $ 0.417 |
Vested or expected to vest at the end of the period (in dollars per share) | 0.416 | ||
Exercisable and vested at the end of the period (in dollars per share) | $ 0.416 | ||
Aggregate Intrinsic Value | |||
Outstanding Value | $ 3,888,325 | $ 1,869,200 | $ 698,200 |
Vested or expected to vest at the end of the period | 3,888,325 | ||
Exercisable and vested at the end of the period | $ 3,888,325 | ||
Weighted Average Remaining Contractual Life | |||
Outstanding at the end of the period | 6 years 3 months 26 days | 6 years 8 months 27 days | 6 years 8 months 19 days |
Vested or expected to vest at the end of the period | 6 years 3 months 26 days | ||
Exercisable and vested at the end of the period | 6 years 3 months 26 days |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details) | 9 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | 2,917,000 |
Options Exercisable | 2,917,000 |
Range One | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | 2,820,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 10 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.37 |
Options Exercisable | 2,820,000 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.37 |
Range Two | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | 97,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 5 months 5 days |
Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 1.84 |
Options Exercisable | 97,000 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 1.84 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary (Details) - USD ($) | Apr. 05, 2019 | Dec. 07, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Assumption used in valuation of stock options | ||||||
Share-based Compensation | $ 81,667 | $ 106,727 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 3 months 26 days | 6 years 8 months 27 days | 6 years 8 months 19 days | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 20,000 | 365,000 | ||||
Restricted Stock [Member] | ||||||
Assumption used in valuation of stock options | ||||||
Share-based Compensation | $ 81,667 | |||||
Stock based compensation cost | $ 122,500 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 100,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 25,000 | |||||
2016 Plan | ||||||
Assumption used in valuation of stock options | ||||||
Shares available for grant | 1,573,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 20,000 | |||||
Maximum | ||||||
Assumption used in valuation of stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Concentration of credit risk and major customers | ||
Accounts receivable | $ 752,984 | $ 1,010,443 |
Accounts Receivable | Customer Concentration Risk | Customer A | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 183,821 | $ 246,019 |
Concentration risk percentage | 24.00% | 24.00% |
Accounts Receivable | Customer Concentration Risk | Customer B | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 149,500 | |
Concentration risk percentage | 20.00% | |
Accounts Receivable | Customer Concentration Risk | Customer C | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 132,453 | |
Concentration risk percentage | 18.00% | |
Accounts Receivable | Customer Concentration Risk | Customer D | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 81,780 | |
Concentration risk percentage | 11.00% | |
Accounts Receivable | Customer Concentration Risk | Customer E | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 78,430 | $ 339,032 |
Concentration risk percentage | 10.00% | 34.00% |
Accounts Receivable | Customer Concentration Risk | Customer F | ||
Concentration of credit risk and major customers | ||
Accounts receivable | $ 244,500 | |
Concentration risk percentage | 24.00% | |
Trade Receivables | ||
Concentration of credit risk and major customers | ||
Concentration risk percentage | 98.00% |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
OTHER CURRENT ASSETS | ||
Payments advanced to suppliers | $ 389,711 | $ 133,861 |
Prepaid insurance | 273,034 | 203,601 |
Prepaid subscriptions | 28,021 | 27,096 |
Prepaid taxes | 35,207 | 31,707 |
Refundable AMT credits | 60,841 | 60,841 |
Employee advances | 628 | 15,380 |
Other | 6,945 | 25,573 |
Totals | $ 794,387 | $ 498,059 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
ACCRUED EXPENSES | ||
Accrued compensation | $ 339,262 | $ 284,651 |
Provision for contract losses | 273,831 | 57,792 |
Accrued professional fees | 276,383 | 267,309 |
Accrued project costs | 50,923 | 118,929 |
Other | 40,856 | 24,818 |
Total | $ 981,255 | $ 753,499 |
ACCRUED EXPENSES - Additional i
ACCRUED EXPENSES - Additional information (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($) | |
ACCRUED EXPENSES | |
Change in provision of contract loss | $ 0.2 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Long-term Debt | ||
Total debt | $ 3,686,835 | $ 4,297,349 |
Less: debt issue costs unamortized | 37,369 | 64,702 |
Total debt, net | 3,649,466 | 4,232,647 |
Less: Current portion of long-term debt | 1,167,518 | 822,105 |
Total long-term debt, net | 2,481,948 | 3,410,542 |
Berkshire Term Loan due January 2022 | ||
Long-term Debt | ||
Total debt | 2,588,183 | 2,656,985 |
Peoples Equipment Loan Facility Due April 2021 | ||
Long-term Debt | ||
Total debt | 1,073,373 | 1,606,953 |
Obligation under finance lease | ||
Long-term Debt | ||
Total debt | 25,279 | |
Total debt | 25,279 | $ 33,411 |
Less: Current portion of long-term debt | 11,617 | |
Total long-term debt, net | $ 13,662 |
DEBT - Berkshire Bank & Trust C
DEBT - Berkshire Bank & Trust Company Loan Facility (Details) | Dec. 23, 2019USD ($) | Dec. 22, 2019 | Dec. 19, 2019USD ($) | Dec. 21, 2016USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||||
Nonrefundable Commitment Fee, Percentage | 0.25% | ||||||
payment related to execution of modification | $ 7,245 | ||||||
Berkshire Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.2 | ||||||
Debt Instrument Covenant Leverage Ratio Year One | 2.50 | ||||||
Execution Costs Classified As Other Noncurrent Assets | $ 41,628 | ||||||
Debt Instrument Covenant Maximum Capital Expenditures To Be Incurred Year Four And Thereafter | $ 1,500,000 | ||||||
Debt Instrument Covenant Loan To Value Ratio | 0.75 | ||||||
Debt Instrument Covenant Trailing Period For Measurement Of Loan To Value Ratio | 365 days | ||||||
Unamortized Debt Issuance Expense | $ 23,549 | $ 32,982 | |||||
Berkshire Loan | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount Of Borrowing Base Required To Grant Loan Advance | $ 1,000,000 | ||||||
Debt Instrument Percentage Of Accounts Receivable Used For Determination Of Aggregate Amount Of Advances | 80.00% | ||||||
Debt Instrument Percentage Of Eligible Raw Material Used For Determination Of Aggregate Amount Of Advances | 25.00% | ||||||
Amount Included In Sum To Calculate Maximum Borrowing Base | $ 250,000 | ||||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR plus 275 basis points | ||||||
Berkshire Loan | Secured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 60 months | ||||||
Debt Instrument, Periodic Payment | $ 19,260 | ||||||
Debt Instrument Prepayment Period | 45 days | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.21% | ||||||
Berkshire Loan | Restated Promissory Note | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount Of Borrowing Base Required To Grant Loan Advance | $ 3,000,000 | ||||||
Debt Instrument Percentage Of Accounts Receivable Used For Determination Of Aggregate Amount Of Advances | 80.00% | ||||||
Debt Instrument Percentage Of Eligible Raw Material Used For Determination Of Aggregate Amount Of Advances | 25.00% | ||||||
Amount Included In Sum To Calculate Maximum Borrowing Base | $ 250,000 | ||||||
Debt Instrument Percentage Of Appraised Value Of Equipment For Determination Of Aggregate Amount Of Advances | 50.00% | ||||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR plus 225 basis points | one-month LIBOR plus 275 basis points | |||||
Berkshire Loan | Ranor, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Event Of Default Excess Of Indebtedness | $ 100,000 | ||||||
Debt Instrument Event Of Default In Excess Of Entry Of Judgment | 150,000 | ||||||
Berkshire Loan | Ranor, Inc. | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | 2,850,000 | ||||||
Berkshire Loan | Ranor, Inc. | Secured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||||
Ranor and Berkshire | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||
Ranor and Berkshire | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 3,000,000 |
DEBT - People's Capital and Lea
DEBT - People's Capital and Leasing Corp. Equipment Loan Facility (Details) | 1 Months Ended | 9 Months Ended | |||
Oct. 04, 2016USD ($) | Apr. 26, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Repayments of Long-term Debt | $ 610,515 | $ 569,809 | |||
Peoples Capital And Leasing Corp [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized Debt Issuance Expense | $ 13,820 | $ 31,720 | |||
MLSA | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 365,852 | ||||
Debt Instrument, Term | 60 months | 60 months | |||
Repayments of Long-term Debt | $ 7,399 | ||||
MLSA | Peoples Capital And Leasing Corp [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.5 | ||||
MLSA | Peoples Capital And Leasing Corp [Member] | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.90% | ||||
Debt Instrument, Periodic Payment | $ 60,921 | ||||
MLSA | Peoples Capital And Leasing Corp [Member] | Secured Term Loan | Ranor, Inc. | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 3,011,648 |
LEASES - Finance lease (Details
LEASES - Finance lease (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Net property, plant and equipment | $ 4,347,796 | $ 4,860,609 |
Current portion of long-term debt | 1,167,518 | 822,105 |
Total long-term debt, net | 2,481,948 | $ 3,410,542 |
Obligation under finance lease | ||
Current portion of long-term debt | 11,617 | |
Total long-term debt, net | 13,662 | |
Total finance lease liabilities | 25,279 | |
Assets Held under Capital Leases [Member] | ||
Property, plant and equipment | 54,376 | |
Accumulated depreciation | 32,626 | |
Net property, plant and equipment | $ 21,750 |
LEASES - Supplemental Informati
LEASES - Supplemental Information of leases (Details) | 9 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES | |
Operating lease amortization | $ 1,756 |
Operating lease interest | 83 |
Finance lease amortization | 8,132 |
Finance lease interest | $ 1,768 |
Lease term (years) | 2 years 29 days |
Lease rate | 8.00% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) | 9 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES | |
Cash used in operating activities | $ 1,768 |
Cash used in financing activities | $ 8,132 |
LEASES - Additional Information
LEASES - Additional Information (Details) | Dec. 31, 2019USD ($) |
LEASES | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal Remainder of Fiscal Year | $ 3,300 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Two | 13,200 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Three | 11,000 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | $ 2,221 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
COMMITMENTS | ||
Defined Contribution Plan, Cost | $ 60,269 | $ 61,251 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jan. 17, 2020 | Jan. 16, 2020 | Oct. 04, 2016 | Apr. 26, 2016 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||||
Debt instrument, prepaid | $ 610,515 | $ 569,809 | ||||
MLSA | Secured Term Loan | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Face Amount | $ 365,852 | |||||
Debt Instrument, Term | 60 months | 60 months | ||||
Debt instrument, prepaid | $ 7,399 | |||||
Subsequent Event [Member] | MLSA | Secured Term Loan | Ranor, Inc. | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Face Amount | $ 3,011,648 | $ 365,852 | ||||
Debt Instrument, Periodic Payment | $ 60,921 | $ 7,399 | ||||
Debt Instrument, Term | 60 months | 60 months | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.90% | |||||
Debt instrument, prepaid | $ 936,000 | $ 147,000 | ||||
Debt instrument, prepayment penalty rate (as a percent) | 1.00% | 1.00% | ||||
Debt instrument, prepayment penalty amount | $ 9,200 | $ 1,400 |