TechPrecision (TPCS) 10-Q 12 Aug 21 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2021	Aug. 06, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity Registrant Name	TechPrecision Corporation
Entity File Number	000-51378
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0539828
Entity Address, Address Line One	1 Bella Drive
Entity Address, City or Town	Westminster
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01473
City Area Code	978
Local Phone Number	874-0591
Trading Symbol	TPCS
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--03-31
Title of 12(b) Security	None
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001328792
Amendment Flag	false
Entity Common Stock, Shares Outstanding		29,498,662

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
Current assets:
Cash and cash equivalents	$ 2,236,375	$ 2,130,711
Accounts receivable	1,155,403	608,059
Contract assets	4,815,808	5,532,408
Raw materials	472,486	503,636
Work-in-process	559,658	767,520
Other current assets	375,830	379,437
Total current assets	9,615,560	9,921,771
Property, plant and equipment, net	3,884,729	4,063,209
Deferred income taxes	1,907,835	1,934,415
Other noncurrent assets, net	82,596	84,624
Total assets	15,490,720	16,004,019
Current liabilities:
Accounts payable	169,769	500,848
Accrued expenses	1,066,671	1,526,270
Contract liabilities	428,367	218,152
Current portion of long-term debt	2,449,979	2,474,963
Total current liabilities	4,114,786	4,720,233
Long-term debt, net	29,452	1,341,938
Commitments and contingent liabilities (Note 14)
Stockholders' Equity:
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 29,498,662 shares issued and outstanding, at June 30, 2021 and March 31, 2021	2,949	2,949
Additional paid in capital	8,978,160	8,944,660
Accumulated other comprehensive income	21,880	21,838
Retained earnings	2,343,493	972,401
Total stockholders' equity	11,346,482	9,941,848
Total liabilities and stockholders' equity	$ 15,490,720	$ 16,004,019

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Mar. 31, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
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	29,498,662	29,498,662
Common stock, shares outstanding	29,498,662	29,498,662

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)
Net sales	$ 3,412,229	$ 3,282,525
Cost of sales	2,579,561	2,585,511
Gross profit	832,668	697,014
Selling, general and administrative	732,608	793,362
Income (loss) from operations	100,060	(96,348)
Other income	10,390	652
Interest expense	(29,878)	(57,898)
PPP loan forgiveness	1,317,100
Total other income (expense), net	1,297,612	(57,246)
Income (loss) before income taxes	1,397,672	(153,594)
Income tax provision (benefit)	26,580	(37,360)
Net income (loss)	1,371,092	(116,234)
Other comprehensive income (loss):
Foreign currency translation adjustments	42	(97)
Other comprehensive income (loss), net of tax	42	(97)
Comprehensive income (loss)	$ 1,371,134	$ (116,331)
Net income (loss) per share - basic	$ 0.05	$ (0.01)
Net income (loss) per share - diluted	$ 0.04	$ (0.01)
Weighted average number of shares outstanding:
Weighted average number of shares outstanding - basic	29,498,662	29,359,921
Weighted average number of shares outstanding - diluted	31,054,110	29,359,921

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($)	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income	Retained Earnings	Total
Balance at Mar. 31, 2020	$ 2,935	$ 8,793,062	$ 21,688	$ 651,770	$ 9,469,455
Balance (in shares) at Mar. 31, 2020	29,354,594
Stock-based compensation		55,500			55,500
Shares issued under LTIP	$ 4	(4)
Shares issued under LTIP (in shares)	44,068
Net income				(116,234)	(116,234)
Foreign currency translation adjustment			(97)		(97)
Balance at Jun. 30, 2020	$ 2,939	8,848,558	21,591	535,536	9,408,624
Balance (in shares) at Jun. 30, 2020	29,398,662
Balance at Mar. 31, 2021	$ 2,949	8,944,660	21,838	972,401	9,941,848
Balance (in shares) at Mar. 31, 2021	29,498,662
Stock-based compensation		33,500			33,500
Net income				1,371,092	1,371,092
Foreign currency translation adjustment			42		42
Balance at Jun. 30, 2021	$ 2,949	$ 8,978,160	$ 21,880	$ 2,343,493	$ 11,346,482
Balance (in shares) at Jun. 30, 2021	29,498,662

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 1,371,092	$ (116,234)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	182,678	169,237
Amortization of debt issue costs	8,824	15,141
Stock based compensation expense	33,500	55,500
Change in contract loss provision	(69,951)	(64,699)
Deferred income taxes	26,580	(37,360)
PPP loan forgiveness	(1,317,100)
Changes in operating assets and liabilities:
Accounts receivable	(547,344)	73,771
Contract assets	716,600	(692,842)
Inventories	239,012	(79,834)
Other current assets	3,607	187,261
Accounts payable	(331,079)	370,914
Accrued expenses	(389,586)	38,614
Contract liabilities	210,215	(288,712)
Net cash provided by (used in) operating activities	137,048	(369,243)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(4,198)	(41,768)
Net cash used in investing activities	(4,198)	(41,768)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issue costs		(8,282)
Proceeds from payroll protection program		1,317,100
Proceeds from revolver loan		1,000,000
Repayment of revolver loan		(1,000,000)
Repayment of long-term debt	(27,166)	(26,618)
Net cash (used in) provided by financing activities	(27,166)	1,282,200
Effect of exchange rate on cash and cash equivalents	(20)	(6)
Net increase in cash and cash equivalents	105,664	871,183
Cash and cash equivalents, beginning of period	2,130,711	930,856
Cash and cash equivalents, end of period	2,236,375	1,802,039
Cash paid during the year for:
Interest	$ 32,746	$ 40,024

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - $ / shares	Jun. 13, 2020	Mar. 31, 2021	Jun. 30, 2021
SUPPLEMENTAL INFORMATION - NONCASH FINANCING TRANSACTIONS:
Options exercised to purchase common stock	150,000	150,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Jun. 30, 2021
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, Stadco New Acquisition, LLC, and Wuxi Critical Mechanical Components Co., Ltd., or WCMC, a wholly foreign owned enterprise. WCMC has no customers or operations, and we have initiated a plan of termination to legally dissolve this subsidiary. TechPrecision, WCMC, Stadco New Acquisition, LLC, and Ranor are collectively referred to as the “Company”, “we”, “us” or “our”. We manufacture large-scale metal fabricated and machined precision components and equipment. These products are used in a variety of markets including defense and aerospace, nuclear, medical, and precision industrial. We consider our business to consist of one segment - metal fabrication and precision machining. All of our operations and customers are located in the United States.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2021
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 - 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, 2021, or the 2021 Form 10-K, filed with the SEC on June 10, 2021. Use of Estimates in the Preparation of Financial Statements - ​

ACCOUNTING STANDARDS UPDATE

ACCOUNTING STANDARDS UPDATE	3 Months Ended
	Jun. 30, 2021
ACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE	NOTE 3 - ACCOUNTING STANDARDS UPDATE New Accounting Standards Recently Adopted In December, 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Company adopted ASU 2019-12 on April 1, 2021 and the amendments in this update did not have a significant impact on our financial statements and disclosures.

REVENUE

REVENUE	3 Months Ended
	Jun. 30, 2021
REVENUE
REVENUE	NOTE 4 - REVENUE The Company generates revenue primarily from performance obligations completed under contracts with customers in two main market sectors: defense and precision industrial. The period over which the Company performs its obligations can be between three Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type sales only. The following table presents net sales on a disaggregated basis by market and contract type: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Sales by market Defense Industrial Totals Three months ended June 30, 2021 ​ $ 3,103,132 ​ $ 309,097 ​ $ 3,412,229 Three months ended June 30, 2020 ​ $ 3,203,590 ​ $ 78,935 ​ $ 3,282,525 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2021 ​ $ 3,122,649 ​ $ 289,580 ​ $ 3,412,229 Three months ended June 30, 2020 ​ $ 3,027,897 ​ $ 254,628 ​ $ 3,282,525 ​ As of June 30, 2021, the Company had $17.6 million of remaining performance obligations, of which $13.0 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue within the next thirty-six months. We are dependent 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 revenues from customers who accounted for more than 10% of our net sales for the three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ June 30, 2020 ​ Customer Amount Percent Amount Percent A ​ $ 1,303,772 ​ 38 % $ 570,780 ​ 17 % B ​ $ * * % $ 1,014,655 31 % C ​ $ 938,856 28 % $ 654,187 20 % D ​ $ * * % $ 390,512 12 % *Less than 10% of total In 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. For the three months ended June 30, 2021, we recognized revenue of less than $0.1 million related to our contract liabilities at April 1, 2021. Contract assets consisted of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Progress ​ ​ ​ Unbilled payments Total June 30, 2021 ​ $ 8,638,677 ​ $ (3,822,869) ​ $ 4,815,808 March 31, 2021 ​ $ 11,392,948 ​ $ (5,860,540) ​ $ 5,532,408 ​

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jun. 30, 2021
INCOME TAXES
INCOME TAXES	NOTE 5 - INCOME TAXES The Company accounts for income taxes under ASC 740, Income Taxes The valuation allowance on deferred tax assets was approximately $1.7 million at June 30, 2021. We believe that it is more likely than not that the benefit from certain state and foreign net operating losses, or NOL, carryforwards and other deferred tax assets will not be realized. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, the Company could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in the Company’s effective tax rate.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Jun. 30, 2021
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 6 - EARNINGS PER SHARE Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average 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 for the three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 June 30, 2020 Basic EPS ​ ​ ​ ​ Net income (loss) ​ $ 1,371,092 ​ $ (116,234) Weighted average shares ​ 29,498,662 ​ 29,359,921 Net income (loss) per share ​ $ 0.05 ​ $ (0.01) Diluted EPS ​ ​ ​ ​ Net income (loss) ​ $ 1,371,092 ​ $ (116,234) Dilutive effect of stock options ​ 1,555,448 ​ — Weighted average shares ​ 31,054,110 ​ 29,359,921 Net income (loss) per share ​ $ 0.04 ​ $ (0.01) ​ All potential common stock equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three months ended June 30, 2020, there were 2,816,000 of potentially anti-dilutive stock options, none of which were included in the earnings per share calculations above.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Jun. 30, 2021
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 7 – STOCK-BASED COMPENSATION 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 on December 8, 2016. The 2016 Plan succeeds the 2006 Plan and applies to awards granted after the 2016 Plan’s adoption by the Company’s stockholders. 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 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. At June 30, 2021, there were 1,470,000 shares available for grant under the 2016 Plan. The following table summarizes information about options granted during the most recently completed periods: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ Weighted ​ Aggregate ​ Remaining ​ ​ Number Of ​ Average ​ Intrinsic ​ Contractual Life ​ Options Exercise Price Value (in years) Outstanding at 3/31/2020 ​ 2,916,000 ​ $ 0.415 ​ $ 2,546,800 ​ 6.21 Exercised ​ (150,000) ​ ​ 0.800 ​ ​ ​ ​ ​ Canceled (47,000) ​ ​ ​ ​ ​ ​ ​ Outstanding at 3/31/2021 ​ 2,719,000 ​ $ 0.372 ​ $ 2,476,300 ​ 5.62 Canceled ​ (49,000) ​ ​ ​ ​ ​ ​ ​ ​ Vested or expected to vest at 6/30/2021 2,670,000 ​ $ 0.343 ​ $ 2,422,900 ​ 5.39 Exercisable and vested at 6/30/2021 ​ 2,670,000 ​ $ 0.343 ​ $ 2,422,900 ​ 5.39 ​ The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on the last trading day of the first quarter of fiscal 2022 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30,2021. This amount changes based on the fair market value of the Company’s common stock. ​ At June 30,2021, there was no remaining unrecognized compensation cost related to stock options. The maximum contractual term is ten years for option grants. Other information relating to stock options outstanding at June 30,2021 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‑$0.49 ​ 1,270,000 ​ 4.35 ​ $ 0.12 ​ 1,270,000 ​ $ 0.12 $0.50‑$0.99 1,400,000 5.90 ​ $ 0.55 1,400,000 ​ $ 0.55 Totals 2,670,000 ​ ​ ​ 2,670,000 ​ ​ ​ Restricted Stock Awards On September 1, 2020 we granted a total of 100,000 shares of restricted stock under the 2016 Plan to the board of directors. The stock-based compensation expense of $134,000 for service-based restricted stock was measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. The shares of restricted stock fully vest and cease to be subject to forfeiture on August 31, 2021, or twelve months following the grant date. Each grantee must be serving as a director on the vesting date and must have been continuously serving in such capacity from the grant date through the vesting date for the shares of restricted stock to vest. Prior to the vesting date, the grantee is not permitted to sell, transfer, pledge, assign or otherwise encumber the shares of restricted stock and if the grantee’s service with the Company terminates prior to the vesting date, the grantee’s restricted stock will be forfeited automatically. Total recognized compensation cost related to the restricted stock award for the three months ended June 30, 2021 was $33,500 . At June 30, 2021 there was $22,333 of unrecognized compensation cost related to these restricted stock awards.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	3 Months Ended
	Jun. 30, 2021
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK	NOTE 8 - CONCENTRATION OF CREDIT RISK We maintain bank account balances, which, at times, may exceed insured limits. We have not experienced any losses with these accounts and believe that we are not exposed to any significant credit risk on cash. At June 30, 2021, there were trade accounts receivable balances outstanding from three customers comprising 75% of the total trade receivables balance. The following table sets forth information as to trade accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ March 31, 2021 Customer Dollars Percent Dollars Percent A ​ $ 503,250 ​ 44 % $ * ​ * % B ​ $ * * % $ 399,692 66 % C ​ $ * * % $ 193,368 32 % D ​ $ 222,982 ​ 19 % $ * ​ * % E ​ $ 135,300 ​ 12 % $ * ​ * % * less than 10% of total

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	3 Months Ended
	Jun. 30, 2021
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS	NOTE 9 - OTHER CURRENT ASSETS ​ ​ ​ ​ ​ ​ ​ ​ Other current assets included the following as of: June 30, 2021 March 31, 2021 Payments advanced to suppliers ​ $ 18,918 ​ $ 17,010 Prepaid insurance ​ 210,146 ​ 312,669 Prepaid subscriptions ​ 40,395 ​ 25,967 Employee advances ​ 29,419 ​ 16,526 Deposits ​ ​ 72,400 ​ ​ — Other ​ 4,552 ​ 7,265 Total ​ $ 375,830 ​ $ 379,437 ​

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	3 Months Ended
	Jun. 30, 2021
PROPERTY, PLANT AND EQUIPMENT, NET
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 10 - PROPERTY, PLANT AND EQUIPMENT, NET ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net included the following as of: June 30, 2021 March 31, 2021 Land ​ $ 110,113 ​ $ 110,113 Building and improvements ​ 3,249,577 ​ 3,249,577 Machinery equipment, furniture and fixtures ​ 10,699,776 ​ 10,695,578 Equipment under finance leases ​ 45,663 ​ 45,663 Total property, plant and equipment ​ 14,105,129 ​ 14,100,931 Less: accumulated depreciation ​ (10,220,400 ) (10,037,722) Total property, plant and equipment, net ​ $ 3,884,729 ​ $ 4,063,209 ​

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Jun. 30, 2021
ACCRUED EXPENSES
ACCRUED EXPENSES	NOTE 11 - ACCRUED EXPENSES ​ ​ ​ ​ ​ ​ ​ ​ Accrued expenses included the following as of: June 30, 2021 March 31, 2021 Accrued compensation ​ $ 542,455 ​ $ 496,320 Provision for claims settlement ​ ​ — ​ ​ 495,000 Provision for contract losses ​ 94,213 ​ 164,164 Accrued professional fees ​ 284,477 ​ 213,213 Accrued project costs ​ 95,675 ​ 114,611 Other ​ 49,851 ​ 42,962 Total ​ $ 1,066,671 ​ $ 1,526,270 ​ Accrued compensation includes amounts for executive bonuses, payroll and vacation and holiday pay. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in the provision are recorded in cost of sales. Accrued project costs are estimates for certain project expenses during the reporting period.

DEBT

DEBT	3 Months Ended
	Jun. 30, 2021
DEBT
DEBT	NOTE 12 – DEBT ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt included the following as of: June 30, 2021 March 31, 2021 Berkshire Term Loan at 5.21% interest, due December 2021 ​ $ 2,441,355 ​ $ 2,466,408 Berkshire SBA PPP loan at 1% interest, due May 2022 ​ — ​ 1,317,100 Obligations under finance lease ​ 43,550 ​ 45,663 Total debt ​ $ 2,484,905 ​ $ 3,829,171 Less: debt issue costs unamortized ​ $ 5,474 ​ $ 12,270 Total debt, net ​ $ 2,479,431 ​ $ 3,816,901 Less: Current portion of long-term debt ​ $ 2,449,979 ​ $ 2,474,963 Total long-term debt, net ​ $ 29,452 ​ $ 1,341,938 ​ Berkshire Bank 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, 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 the maturity date. A balloon principal payment of approximately $2,400,000 is due on December 20, 2021 under the Term Loan. 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 originally 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. 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 a borrowing base equal to the lesser of (a) $3,000,000 or (b) the sum of (i) 80% of eligible accounts receivable, plus (ii) the lesser of (x) 25% of Eligible Raw Material Inventory, and (y) $250,000, plus (iii) 50% of the Appraised Value of the Eligible Equipment. The loan agreement is available for refinancing existing indebtedness and for working capital and general corporate purposes. Additionally, the parties agreed to lower the interest rate on advances made under the Revolver Loan at a variable rate equal to the one-month LIBOR plus 225 basis points. The Third Modification contains customary LIBOR replacement provisions. The Company 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 $3,000,000 and the aggregate amount of all advances made under the Revolver Loan as of each quarterly period. The Third Modification also excludes the balance of the Revolver Loan from the Loan-to-Value Ratio covenant calculations. On December 18, 2020, TechPrecision, through Ranor, entered into a Fourth Modification to Loan Agreement and First Modification and Allonge to Amended and Restated Promissory Note, or the Fourth Modification, with Berkshire Bank. The Modification amends and modifies the Berkshire Loan Agreement. The Fourth Modification also amends the Amended and Restated Promissory Note dated December 23, 2019 made by Ranor in favor of Berkshire in the stated principal amount of $3,000,000. As of the date of the Fourth Modification, there were no amounts outstanding under the Revolver Loan. Under the Fourth Modification, Ranor and Berkshire agreed to revise the minimum interest rate payable on the Revolver Loan. Under the promissory note for the Revolver Loan, the Company can elect to pay interest at an adjusted LIBOR- based rate or an Adjusted Prime Rate. Under the Fourth Modification, the minimum adjusted LIBOR-based rate is 2.75% and the Adjusted Prime Rate is the greater of (i) the Prime Rate minus 70 basis points or (ii) 2.75%. Interest-only payments on advances made under the Revolver Loan will continue to be payable monthly in arrears. The maturity date of the Revolver Loan was also extended to December 20, 2022. All other material terms of the Berkshire Loan Agreement and the promissory note for the Revolver Loan were unchanged. There were no interest payments and no advances made under the Revolver Loan during the three months ended June 30, 2021. Unused borrowing capacity at June 30, 2021 and March 31, 2021 was $3.0 and $2.7 million, respectively. There were no borrowed amounts outstanding under the Revolver Loan at June 30, 2021 and March 31, 2021. 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 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, and annual capital expenditures cannot exceed $1,500,000. The Company was in compliance with all of the financial covenants at June 30, 2021 and March 31, 2021. Unamortized debt issue costs at June 30, 2021 and March 31, 2021 were $17,448 and $26,272, respectively. Collateral securing the above obligations comprises all personal and real property of TechPrecision and Ranor, including cash, accounts receivable, inventories, equipment, and financial assets. The carrying value of short and long-term borrowings approximates their fair value. The Company’s short-term and long-term debt is all privately held with no public market for this debt and is considered to be Level 3 under the fair value hierarchy. Small Business Administration Loan On May 8, 2020, the Company, through its wholly owned subsidiary Ranor, issued a promissory note, or the Note, evidencing an unsecured loan in the amount of $1,317,100 made to Ranor under the Paycheck Protection Program, or the PPP. The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act and is administered by the U.S. Small Business Administration, or the SBA. The loan to Ranor was made through Berkshire Bank. Principal and accrued interest were set to be payable monthly in equal installments commencing in September 2021 and continuing through the maturity date, unless the Note was forgiven as described below. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs, certain group health care benefits and insurance premiums, and any payments of mortgage interest, rent, and utilities. On June 5, 2020, the PPP was amended to give borrowers more time to spend loan proceeds and still obtain loan forgiveness. The amendments extended the length of the covered period as defined in the CARES Act from eight to twenty-four weeks, while allowing borrowers that received PPP loans before June 5, 2020 to elect to use the original eight-week covered period. The Company applied for loan forgiveness with the SBA under the Paycheck Protection Program on March 26, 2021. On May 12, 2021, as authorized by Section 1106 of the CARES Act, the SBA remitted to Berkshire Bank, the lender of record, a payment of principal and interest in the amount of $1,317,100 and $13,207, respectively, for forgiveness of the Company’s Paycheck Protection Program (PPP) loan. The funds credited to the bank paid this loan off in full. Loan forgiveness is recorded as a gain under other income and expense in the condensed consolidated statement of operations. Finance Lease We leased certain office equipment during fiscal 2021 under an old finance lease that was cancelled in March 2021. We entered into a new finance lease on March 31, 2021 in the amount of $45,663 for certain office equipment. The lease term is for 60 months, bears interest at 3.2% and requires monthly payments of principal and interest of $825. The amount of the lease recorded as a right-of-use asset in property, plant and equipment was $45,663 as of March 31, 2021. See Note 13 for more information regarding our obligations under the finance lease.

LEASES

LEASES	3 Months Ended
	Jun. 30, 2021
LEASES
LEASES	NOTE 13 – LEASES Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased, or right-of-use assets in finance lease arrangements are reported in net property, plant and equipment on our condensed consolidated balance sheet. The following table lists our right-of-use assets and liabilities on our condensed consolidated balance sheet at: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 March 31, 2021 Finance lease: ​ ​ ​ ​ ​ ​ Property, plant and equipment ​ $ 45,663 ​ $ 45,663 Accumulated depreciation ​ (2,283) ​ — Net property, plant and equipment ​ $ 43,380 ​ $ 45,663 Current portion of long-term debt ​ $ 8,624 ​ $ 8,555 Long-term debt ​ $ 34,926 ​ $ 37,108 Total finance lease liabilities ​ $ 43,550 ​ $ 45,663 ​ In December 2019, we signed a one-year operating lease for office space which expired in December 2020 and was amortized on a straight line basis. Since the expiration of the one-year term lease, we have continued to lease this office space on a month-to-month basis. Other supplemental information regarding our leases are contained in the following tables: ​ ​ ​ ​ ​ ​ ​ ​ Components of lease expense for the three months ended: June 30, 2021 June 30, 2020 Operating lease amortization ​ $ 1,234 ​ $ 949 Finance lease amortization ​ $ 2,283 ​ $ 2,719 Finance lease interest ​ $ 362 ​ $ 2,674 ​ ​ ​ ​ ​ ​ ​ ​ Weighted average lease term and discount rate at: June 30, 2021 ​ June 30, 2020 ​ Lease term (years) 5.00 ​ 1.75 ​ Lease rate 3.2 % 8.0 % ​ ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow information related to leases for the three months ended: June 30, 2021 June 30, 2020 Cash used in operating activities ​ $ 1,596 ​ $ 949 Cash used in financing activities ​ $ 2,113 ​ $ 2,875 ​

COMMITMENTS

COMMITMENTS	3 Months Ended
	Jun. 30, 2021
COMMITMENTS
COMMITMENTS	NOTE 14 - 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 $21,388 and $20,725 for the three months ended June 30, 2021 and 2020, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jun. 30, 2021
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 15 - SUBSEQUENT EVENTS As previously disclosed, on October 16, 2020, the Company entered into a stock purchase agreement (as subsequently amended, the SPA) with Stadco New Acquisition, LLC, a wholly owned subsidiary of the Company, the Acquisition Sub, STADCO, Stadco Acquisition, LLC, or Holdco, and each stockholder of Holdco. The SPA provides for the Company, through Acquisition Sub, to acquire all of the issued and outstanding capital stock of STADCO from Holdco. STADCO, the operating subsidiary of Holdco, is a California corporation in the business of manufacturing high-precision parts, assemblies and tooling for aerospace, defense, research and commercial customers. On July 23, 2021, the Company entered into the Third Amendment to Stock Purchase Agreement effective as of July 20, 2021, with Acquisition Sub, STADCO, Holdco and Douglas A. Paletz, as representative of the STADCO stockholders of Holdco. Under the terms of SPA, if the Acquisition was not closed by July 31, 2021, either the Company or Stadco could have terminated the SPA. The Third Amendment effected a change to this provision by extending until August 31, 2021 the date after which the parties may terminate if the Acquisition has not closed. The Third Amendment also effected changes to the consideration payable for STADCO’s securities in the Acquisition. Previously, the SPA provided that the consideration payable by the Company for 100% of the shares of common stock of STADCO in the Acquisition would be 1,000,000 shares of the Company’s common stock. Under the Third Amendment, at the closing of the Acquisition, the Company will issue 666,666 shares of the Company’s common stock, or the Consideration Shares, as consideration for 100% of the shares of common stock of STADCO. However, if one year following the closing of the Acquisition, the Company’s stock price does not have an average closing price of at least $1.65 per share, then the Company must (i) issue additional shares to Holdco that have an aggregate market value equal to the difference between the market value of the Consideration Shares and the value of the Consideration Shares if they had traded at $1.65 per share, (ii) pay such difference in cash or (iii) undertake any combination of the foregoing. The Amendment also effected certain other minor changes to the SPA.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2021
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation - 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, 2021, or the 2021 Form 10-K, filed with the SEC on June 10, 2021.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements -

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Jun. 30, 2021
Schedule of net sales on a disaggregated basis by market and contract type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Sales by market Defense Industrial Totals Three months ended June 30, 2021 ​ $ 3,103,132 ​ $ 309,097 ​ $ 3,412,229 Three months ended June 30, 2020 ​ $ 3,203,590 ​ $ 78,935 ​ $ 3,282,525 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2021 ​ $ 3,122,649 ​ $ 289,580 ​ $ 3,412,229 Three months ended June 30, 2020 ​ $ 3,027,897 ​ $ 254,628 ​ $ 3,282,525
Schedule of Contract Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Progress ​ ​ ​ Unbilled payments Total June 30, 2021 ​ $ 8,638,677 ​ $ (3,822,869) ​ $ 4,815,808 March 31, 2021 ​ $ 11,392,948 ​ $ (5,860,540) ​ $ 5,532,408
Sales [Member]
Schedule of revenues from customers who accounted for more than 10% of our net sales	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ June 30, 2020 ​ Customer Amount Percent Amount Percent A ​ $ 1,303,772 ​ 38 % $ 570,780 ​ 17 % B ​ $ * * % $ 1,014,655 31 % C ​ $ 938,856 28 % $ 654,187 20 % D ​ $ * * % $ 390,512 12 % *Less than 10% of total In 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. For the three months ended June 30, 2021, we recognized revenue of less than $0.1 million related to our contract liabilities at April 1, 2021. Contract assets consisted of the following at:

CAPITAL STOCK and EARNINGS PER

CAPITAL STOCK and EARNINGS PER SHARE (Tables)	3 Months Ended
	Jun. 30, 2021
EARNINGS PER SHARE
Schedule of basic and diluted earnings per share computations	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 June 30, 2020 Basic EPS ​ ​ ​ ​ Net income (loss) ​ $ 1,371,092 ​ $ (116,234) Weighted average shares ​ 29,498,662 ​ 29,359,921 Net income (loss) per share ​ $ 0.05 ​ $ (0.01) Diluted EPS ​ ​ ​ ​ Net income (loss) ​ $ 1,371,092 ​ $ (116,234) Dilutive effect of stock options ​ 1,555,448 ​ — Weighted average shares ​ 31,054,110 ​ 29,359,921 Net income (loss) per share ​ $ 0.04 ​ $ (0.01)

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Jun. 30, 2021
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 3/31/2020 ​ 2,916,000 ​ $ 0.415 ​ $ 2,546,800 ​ 6.21 Exercised ​ (150,000) ​ ​ 0.800 ​ ​ ​ ​ ​ Canceled (47,000) ​ ​ ​ ​ ​ ​ ​ Outstanding at 3/31/2021 ​ 2,719,000 ​ $ 0.372 ​ $ 2,476,300 ​ 5.62 Canceled ​ (49,000) ​ ​ ​ ​ ​ ​ ​ ​ Vested or expected to vest at 6/30/2021 2,670,000 ​ $ 0.343 ​ $ 2,422,900 ​ 5.39 Exercisable and vested at 6/30/2021 ​ 2,670,000 ​ $ 0.343 ​ $ 2,422,900 ​ 5.39
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‑$0.49 ​ 1,270,000 ​ 4.35 ​ $ 0.12 ​ 1,270,000 ​ $ 0.12 $0.50‑$0.99 1,400,000 5.90 ​ $ 0.55 1,400,000 ​ $ 0.55 Totals 2,670,000 ​ ​ ​ 2,670,000 ​ ​

CONCENTRATION OF CREDIT RISK (T

CONCENTRATION OF CREDIT RISK (Tables)	3 Months Ended
	Jun. 30, 2021
Accounts Receivable
Concentration of credit risk and major customers
Schedule of revenues from customers who accounted for more than 10% of our net sales	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ March 31, 2021 Customer Dollars Percent Dollars Percent A ​ $ 503,250 ​ 44 % $ * ​ * % B ​ $ * * % $ 399,692 66 % C ​ $ * * % $ 193,368 32 % D ​ $ 222,982 ​ 19 % $ * ​ * % E ​ $ 135,300 ​ 12 % $ * ​ * % * less than 10% of total

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Jun. 30, 2021
OTHER CURRENT ASSETS
Schedule of other current assets	​ ​ ​ ​ ​ ​ ​ ​ Other current assets included the following as of: June 30, 2021 March 31, 2021 Payments advanced to suppliers ​ $ 18,918 ​ $ 17,010 Prepaid insurance ​ 210,146 ​ 312,669 Prepaid subscriptions ​ 40,395 ​ 25,967 Employee advances ​ 29,419 ​ 16,526 Deposits ​ ​ 72,400 ​ ​ — Other ​ 4,552 ​ 7,265 Total ​ $ 375,830 ​ $ 379,437

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	3 Months Ended
	Jun. 30, 2021
PROPERTY, PLANT AND EQUIPMENT, NET
Schedule of components of property, plant and equipment, net	​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net included the following as of: June 30, 2021 March 31, 2021 Land ​ $ 110,113 ​ $ 110,113 Building and improvements ​ 3,249,577 ​ 3,249,577 Machinery equipment, furniture and fixtures ​ 10,699,776 ​ 10,695,578 Equipment under finance leases ​ 45,663 ​ 45,663 Total property, plant and equipment ​ 14,105,129 ​ 14,100,931 Less: accumulated depreciation ​ (10,220,400 ) (10,037,722) Total property, plant and equipment, net ​ $ 3,884,729 ​ $ 4,063,209

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Jun. 30, 2021
ACCRUED EXPENSES
Schedule of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ Accrued expenses included the following as of: June 30, 2021 March 31, 2021 Accrued compensation ​ $ 542,455 ​ $ 496,320 Provision for claims settlement ​ ​ — ​ ​ 495,000 Provision for contract losses ​ 94,213 ​ 164,164 Accrued professional fees ​ 284,477 ​ 213,213 Accrued project costs ​ 95,675 ​ 114,611 Other ​ 49,851 ​ 42,962 Total ​ $ 1,066,671 ​ $ 1,526,270

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Jun. 30, 2021
DEBT
Schedule of outstanding debt obligations	​ ​ ​ ​ ​ ​ ​ ​ Long-term debt included the following as of: June 30, 2021 March 31, 2021 Berkshire Term Loan at 5.21% interest, due December 2021 ​ $ 2,441,355 ​ $ 2,466,408 Berkshire SBA PPP loan at 1% interest, due May 2022 ​ — ​ 1,317,100 Obligations under finance lease ​ 43,550 ​ 45,663 Total debt ​ $ 2,484,905 ​ $ 3,829,171 Less: debt issue costs unamortized ​ $ 5,474 ​ $ 12,270 Total debt, net ​ $ 2,479,431 ​ $ 3,816,901 Less: Current portion of long-term debt ​ $ 2,449,979 ​ $ 2,474,963 Total long-term debt, net ​ $ 29,452 ​ $ 1,341,938

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Jun. 30, 2021
LEASES
Schedule of right of use assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 March 31, 2021 Finance lease: ​ ​ ​ ​ ​ ​ Property, plant and equipment ​ $ 45,663 ​ $ 45,663 Accumulated depreciation ​ (2,283) ​ — Net property, plant and equipment ​ $ 43,380 ​ $ 45,663 Current portion of long-term debt ​ $ 8,624 ​ $ 8,555 Long-term debt ​ $ 34,926 ​ $ 37,108 Total finance lease liabilities ​ $ 43,550 ​ $ 45,663
Schedule of supplemental Information of leases	space on a month-to-month basis. Other supplemental information regarding our leases are contained in the following tables: ​ ​ ​ ​ ​ ​ ​ ​ Components of lease expense for the three months ended: June 30, 2021 June 30, 2020 Operating lease amortization ​ $ 1,234 ​ $ 949 Finance lease amortization ​ $ 2,283 ​ $ 2,719 Finance lease interest ​ $ 362 ​ $ 2,674 ​ ​ ​ ​ ​ ​ ​ ​ Weighted average lease term and discount rate at: June 30, 2021 ​ June 30, 2020 ​ Lease term (years) 5.00 ​ 1.75 ​ Lease rate 3.2 % 8.0 %
Schedule of supplemental cash flow information	​ ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow information related to leases for the three months ended: June 30, 2021 June 30, 2020 Cash used in operating activities ​ $ 1,596 ​ $ 949 Cash used in financing activities ​ $ 2,113 ​ $ 2,875

REVENUE - Disaggregated Basis (

REVENUE - Disaggregated Basis (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Revenue from Contract with Customer, Including Assessed Tax	$ 3,412,229	$ 3,282,525
Over-time
Revenue from Contract with Customer, Including Assessed Tax	3,122,649	3,027,897
Point-in-time
Revenue from Contract with Customer, Including Assessed Tax	289,580	254,628
Defense
Revenue from Contract with Customer, Including Assessed Tax	3,103,132	3,203,590
Industrial
Revenue from Contract with Customer, Including Assessed Tax	$ 309,097	$ 78,935

REVENUE - Net Sales from Custom

REVENUE - Net Sales from Customers (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Revenues	$ 3,412,229	$ 3,282,525
A | Sales Revenue, Net
Revenues	$ 1,303,772	$ 570,780
A | Customer Concentration Risk | Sales Revenue, Net
Concentration risk percentage	38.00%	17.00%
B | Sales Revenue, Net
Revenues		$ 1,014,655
B | Customer Concentration Risk | Sales Revenue, Net
Concentration risk percentage		31.00%
C | Sales Revenue, Net
Revenues	$ 938,856	$ 654,187
C | Customer Concentration Risk | Sales Revenue, Net
Concentration risk percentage	28.00%	20.00%
D | Sales Revenue, Net
Revenues		$ 390,512
D | Customer Concentration Risk | Sales Revenue, Net
Concentration risk percentage		12.00%

REVENUE - Contract Assets and C

REVENUE - Contract Assets and Contract Liabilities (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
Contract assets	$ 4,815,808	$ 5,532,408
Unbilled
Contract assets	8,638,677	11,392,948
Progress payments
Contract assets	$ (3,822,869)	$ (5,860,540)

REVENUE - Additional informatio

REVENUE - Additional information (Details) $ in Millions	3 Months Ended
	Jun. 30, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligation Amount	$ 17.6
Revenue Remaining Performance Obligation Completed Less Than 50	$ 13
Revenue, Remaining Performance Obligation, Percentage	50.00%
Revenue Recognized By Contract Liabilities	$ 0.1
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligation Expected Timing of Satisfaction Period	3 months
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligation Expected Timing of Satisfaction Period	36 months

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income tax provision (benefit)	$ 26,580	$ (37,360)
Deferred Tax Assets, Valuation Allowance, Total	$ 1,700,000
Effective tax rate	2.00%
PPP loan forgiveness	$ 1,317,100
Paycheck protection programme
PPP loan forgiveness	$ 1,300,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Basic EPS:
Net income (loss)	$ 1,371,092	$ (116,234)
Weighted average shares	29,498,662	29,359,921
Net income (loss) per share	$ 0.05	$ (0.01)
Diluted EPS:
Net income (loss)	$ 1,371,092	$ (116,234)
Dilutive effect of stock options	1,555,448
Weighted average shares	31,054,110	29,359,921
Net income (loss) per share	$ 0.04	$ (0.01)
Antidilutive securities excluded from computation of earnings per share amount (in shares)	2,816,000

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	Jun. 13, 2020	Jun. 30, 2021	Mar. 31, 2021	Mar. 31, 2020
Number Of Options
Outstanding at the beginning of the period (in shares)		2,719,000	2,916,000
Exercised (in shares)	(150,000)		(150,000)
Canceled (in shares)		(49,000)	(47,000)
Outstanding at the end of the period (in shares)			2,719,000	2,916,000
Vested or expected to vest at the end of the period (in shares)		2,670,000
Exercisable and vested at the end of the period (in shares)		2,670,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)		$ 0.372	$ 0.415
Exercised (in shares)			0.800
Outstanding at the end of the period (in dollars per share)			$ 0.372	$ 0.415
Vested or expected to vest at the end of the period (in dollars per share)		0.343
Exercisable and vested at the end of the period (in dollars per share)		$ 0.343
Aggregate Intrinsic Value
Outstanding Value at the beginning of the period		$ 2,476,300	$ 2,546,800
Outstanding Value at the end of the period			$ 2,476,300	$ 2,546,800
Vested or expected to vest at the end of the period		2,422,900
Exercisable and vested at the end of the period		$ 2,422,900
Weighted Average Remaining Contractual Life (in years)
Outstanding at the end of the period			5 years 7 months 13 days	6 years 2 months 15 days
Vested or expected to vest at the end of the period		5 years 4 months 20 days
Exercisable and vested at the end of the period		5 years 4 months 20 days

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details)	3 Months Ended
	Jun. 30, 2021$ / sharesshares
Stock Based Compensation By Exercise Price Range
Options Outstanding | shares	2,670,000
Options Exercisable | shares	2,670,000
Range One
Stock Based Compensation By Exercise Price Range
Exercise Price, Lower Range	$ 0.01
Exercise Price, Upper Range	$ 0.49
Options Outstanding | shares	1,270,000
Options Outstanding, Weighted Average Remaining Contractual Term	4 years 4 months 6 days
Options Outstanding, Weighted Average Exercise Price	$ 0.12
Options Exercisable | shares	1,270,000
Options Exercisable, Weighted Average Exercise Price	$ 0.12
Range Two
Stock Based Compensation By Exercise Price Range
Exercise Price, Lower Range	0.50
Exercise Price, Upper Range	$ 0.99
Options Outstanding | shares	1,400,000
Options Outstanding, Weighted Average Remaining Contractual Term	5 years 10 months 24 days
Options Outstanding, Weighted Average Exercise Price	$ 0.55
Options Exercisable | shares	1,400,000
Options Exercisable, Weighted Average Exercise Price	$ 0.55

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)	Sep. 01, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Mar. 31, 2020
Share based compensation
Maximum contractual term (in years)				5 years 7 months 13 days	6 years 2 months 15 days
Stock based compensation expense		$ 33,500	$ 55,500
Restricted Stock [Member]
Share based compensation
Granted a total of shares of restricted stock	100,000
Stock based compensation cost	$ 134,000
Stock based compensation expense		33,500
Total unrecognized compensation cost related to restricted stock awards		22,333
Stock option [Member]
Share based compensation
Unrecognized compensation cost related to stock options		$ 0
2016 Plan
Share based compensation
Shares reserved		5,000,000
Number of shares of common stock		5,000,000
Shares available for grant		1,470,000
Maximum
Share based compensation
Maximum contractual term (in years)		10 years

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details)	3 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)customer	Mar. 31, 2021USD ($)
Concentration of credit risk and major customers
Accounts receivable	$ 1,155,403	$ 608,059
Accounts Receivable | Customer Concentration Risk | A
Concentration of credit risk and major customers
Accounts receivable	$ 503,250
Concentration risk percentage	44.00%
Accounts Receivable | Customer Concentration Risk | B
Concentration of credit risk and major customers
Accounts receivable		$ 399,692
Concentration risk percentage		66.00%
Accounts Receivable | Customer Concentration Risk | C
Concentration of credit risk and major customers
Accounts receivable		$ 193,368
Concentration risk percentage		32.00%
Accounts Receivable | Customer Concentration Risk | D
Concentration of credit risk and major customers
Accounts receivable	$ 222,982
Concentration risk percentage	19.00%
Accounts Receivable | Customer Concentration Risk | E
Concentration of credit risk and major customers
Accounts receivable	$ 135,300
Concentration risk percentage	12.00%
Trade Receivables
Concentration of credit risk and major customers
Number of significant customers | customer	3
Trade Receivables | Customer Concentration Risk | Customer A,D,E
Concentration of credit risk and major customers
Concentration risk percentage	75.00%

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
OTHER CURRENT ASSETS
Payments advanced to suppliers	$ 18,918	$ 17,010
Prepaid insurance	210,146	312,669
Prepaid subscriptions	40,395	25,967
Employee advances	29,419	16,526
Deposits	72,400
Other	4,552	7,265
Total	$ 375,830	$ 379,437

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
Property, Plant and Equipment, Net
Total property, plant and equipment	$ 14,105,129	$ 14,100,931
Less: accumulated depreciation	(10,220,400)	(10,037,722)
Total property, plant and equipment, net	3,884,729	4,063,209
Land
Property, Plant and Equipment, Net
Total property, plant and equipment	110,113	110,113
Building and improvements
Property, Plant and Equipment, Net
Total property, plant and equipment	3,249,577	3,249,577
Machinery equipment, furniture and fixtures
Property, Plant and Equipment, Net
Total property, plant and equipment	10,699,776	10,695,578
Equipment under finance leases
Property, Plant and Equipment, Net
Total property, plant and equipment	$ 45,663	$ 45,663

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
ACCRUED EXPENSES
Accrued compensation	$ 542,455	$ 496,320
Provision for claims settlement		495,000
Provision for contract losses	94,213	164,164
Accrued professional fees	284,477	213,213
Accrued project costs	95,675	114,611
Other	49,851	42,962
Total	$ 1,066,671	$ 1,526,270

DEBT - Long-term Debt (Details)

DEBT - Long-term Debt (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
Long-term Debt
Total debt	$ 2,484,905	$ 3,829,171
Less: debt issue costs unamortized	5,474	12,270
Total debt, net	2,479,431	3,816,901
Less: Current portion of long-term debt	2,449,979	2,474,963
Total long-term debt, net	29,452	1,341,938
Berkshire Term Loan at 5.21% interest, due December 2021
Long-term Debt
Total debt	$ 2,441,355	$ 2,466,408
Interest rate (as a percent)	5.21%	5.21%
Berkshire SBA PPP loan at 1% interest, due May 2022
Long-term Debt
Total debt		$ 1,317,100
Interest rate (as a percent)	1.00%	1.00%
Finance lease obligations
Long-term Debt
Total debt	$ 43,550	$ 45,663
Obligations under finance lease	43,550	45,663
Less: Current portion of long-term debt	8,624	8,555
Total long-term debt, net	$ 34,926	$ 37,108

DEBT - Berkshire Bank & Trust C

DEBT - Berkshire Bank & Trust Company Loan Facility (Details)	Dec. 18, 2020USD ($)	Dec. 23, 2019USD ($)	Dec. 31, 2016USD ($)	Dec. 21, 2016USD ($)	Jun. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2019
Revolver loan
Debt Instrument [Line Items]
Maximum Amount Of Borrowing Base Required To Grant Loan Advance		$ 3,000,000
Amount outstanding					$ 0
Interest payments					0
Unused borrowing capacity					$ 3,000,000	$ 2,700,000
Nonrefundable Commitment Fee, Percentage		0.25%
Berkshire Loan
Debt Instrument [Line Items]
Debt Instrument Debt Service Coverage Ratio Threshold					1.2
Debt Instrument Covenant Leverage Ratio Year One							2.50
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
Unamortized Debt Issuance Expense					$ 17,448	$ 26,272
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
Berkshire Loan | Revolver loan
Debt Instrument [Line Items]
Amount outstanding	$ 0
Berkshire Loan | Revolver loan | Prime Rate
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)	2.75%
Basis spread on variable rate (as a percent)	0.70%
Berkshire Loan | Secured Term Loan
Debt Instrument [Line Items]
Principal amount of debt				$ 2,400,000
Maturity term				60 months
Interest rate (as a percent)				5.21%
Debt instrument, Periodic Payment				$ 19,260
Prepayment period				45 days
Berkshire Loan | Restated Promissory Note
Debt Instrument [Line Items]
Principal amount of debt	$ 3,000,000
Maximum Amount Of Borrowing Base Required To Grant Loan Advance		$ 3,000,000
Debt Instrument Percentage Of Accounts Receivable Used For Determination Of Aggregate Amount Of Advances		80.00%
Debt Instrument Percentage Of Eligible Raw Material Used For Determination Of Aggregate Amount Of Advances		25.00%
Amount Included In Sum To Calculate Maximum Borrowing Base		$ 250,000
Debt Instrument Percentage Of Appraised Value Of Equipment For Determination Of Aggregate Amount Of Advances		50.00%
Debt Instrument, Description of Variable Rate Basis		one-month LIBOR plus 225 basis points
Berkshire Loan | Ranor, Inc.
Debt Instrument [Line Items]
Debt Instrument Covenant Trailing Period For Measurement Of Loan To Value Ratio					365 days
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]
Revolving line of credit				1,000,000
Berkshire Loan | Ranor, Inc. | Secured Term Loan
Debt Instrument [Line Items]
Principal amount of debt				2,850,000
Berkshire Loan | Minimum | Revolver loan | LIBOR
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)	2.75%
Ranor and Berkshire | Revolver loan
Debt Instrument [Line Items]
Revolving line of credit		$ 3,000,000
Maximum Amount Of Borrowing Base Required To Grant Loan Advance				$ 1,000,000

DEBT - Small Business Administr

DEBT - Small Business Administrative PPP loan (Details) - Paycheck protection programme - USD ($)	May 12, 2021	May 08, 2020
Debt
Face amount of debt		$ 1,317,100
Principal amount forgiven	$ 1,317,100
Interest amount for forgiveness	$ 13,207

DEBT - Additional information I

DEBT - Additional information I (Details)	12 Months Ended
	Mar. 31, 2021USD ($)
Office equipment
Debt Instrument [Line Items]
Finance lease term	60 months
Interest rate	3.20%
Monthly payments	$ 825
Right-of-use asset	45,663
Property, plant and equipment
Debt Instrument [Line Items]
Right-of-use asset	$ 45,663

LEASES - Finance Lease (Details

LEASES - Finance Lease (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021
Net property, plant and equipment	$ 3,884,729	$ 4,063,209
Current portion of long-term debt	2,449,979	2,474,963
Long-term debt	29,452	1,341,938
Finance lease obligations
Current portion of long-term debt	8,624	8,555
Long-term debt	34,926	37,108
Total finance lease liabilities	43,550	45,663
Office equipment
Property, plant and equipment	45,663	45,663
Accumulated depreciation	2,283
Net property, plant and equipment	$ 43,380	$ 45,663

LEASES - Supplemental Informati

LEASES - Supplemental Information of Leases (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
LEASES
Operating lease amortization	$ 1,234	$ 949
Finance lease amortization	2,283	2,719
Finance lease interest	$ 362	$ 2,674
Lease term (years)	5 years	1 year 9 months
Lease rate	3.20%	8.00%

LEASES - Supplemental Cash Flow

LEASES - Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
LEASES
Cash used in operating activities	$ 1,596	$ 949
Cash used in financing activities	$ 2,113	$ 2,875

COMMITMENTS (Details)

COMMITMENTS (Details) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Contractual commitments
Defined Contribution Plan, Cost	$ 21,388	$ 20,725

SUBSEQUENT EVENTS - Additional

SUBSEQUENT EVENTS - Additional Information (Details) - Stadco Acquisition, LLC - $ / shares	Jul. 23, 2021	Oct. 16, 2020
Subsequent Event [Line Items]
Percentage of shares of common stock acquired		100.00%
Consideration in the form of the Company's common stock (in shares)		1,000,000
Subsequent event
Subsequent Event [Line Items]
Consideration in the form of the Company's common stock (in shares)	666,666
Average closing price of common stock, satisfaction period following the closing of the acquisition.	1 year
Minimum average closing price of common stock condition after acquisition	$ 1.65