Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 08, 2017 | Sep. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TECHPRECISION CORP | ||
Entity Central Index Key | 1,328,792 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 12.7 | ||
Trading Symbol | TPCS | ||
Entity Common Stock, Shares Outstanding | 28,824,593 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 3,066,156 | $ 1,332,166 |
Accounts receivable, net | 1,870,672 | 2,022,480 |
Costs incurred on uncompleted contracts, in excess of progress billings | 2,097,221 | 2,395,642 |
Inventories- raw materials | 141,792 | 128,595 |
Other current assets | 422,096 | 530,808 |
Total current assets | 7,597,937 | 6,409,691 |
Property, plant and equipment, net | 4,912,202 | 4,814,184 |
Deferred income taxes | 3,393,110 | 684,270 |
Other noncurrent assets, net | 100,000 | 176,344 |
Total assets | 16,003,249 | 12,084,489 |
Current liabilities: | ||
Accounts payable | 365,308 | 996,065 |
Accrued expenses | 893,415 | 1,804,485 |
Income taxes payable | 0 | 9,032 |
Advanced claims payment | 0 | 507,835 |
Billings on uncompleted contracts, in excess of related costs | 642,831 | 1,629,018 |
Current portion of long-term debt | 717,481 | 953,106 |
Total current liabilities | 2,619,035 | 5,899,541 |
Long-term debt, including capital leases | 4,874,721 | 3,735,410 |
Deferred income taxes | 521,430 | 684,270 |
Noncurrent accrued expenses | 17,742 | 37,097 |
Commitments and contingent liabilities (see Note 15) | ||
Stockholders’ Equity: | ||
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 28,824,593 shares issued and outstanding at March 31, 2017, and 27,324,593 shares issued and outstanding at March 31, 2016 | 2,882 | 2,732 |
Additional paid in capital | 8,258,820 | 7,094,749 |
Accumulated other comprehensive income | 19,328 | 21,568 |
Accumulated deficit | (310,709) | (5,390,878) |
Total stockholders’ equity | 7,970,321 | 1,728,171 |
Total liabilities and stockholders’ equity | $ 16,003,249 | $ 12,084,489 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Mar. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 28,824,593 | 27,324,593 |
Common stock, shares outstanding | 28,824,593 | 27,324,593 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 18,550,674 | $ 16,853,952 |
Cost of sales | 12,454,542 | 11,360,206 |
Gross profit | 6,096,132 | 5,493,746 |
Selling, general and administrative | 4,336,987 | 3,385,009 |
Gain from claims assignment settlement | (1,122,287) | 0 |
Income from operations | 2,881,432 | 2,108,737 |
Other income | 8,439 | 1,229 |
Interest expense | (644,021) | (752,280) |
Total other expense, net | (635,582) | (751,051) |
Income before income taxes | 2,245,850 | 1,357,686 |
Income tax benefit | (2,834,319) | (768) |
Net income | 5,080,169 | 1,358,454 |
Other comprehensive loss, before tax: | ||
Foreign currency translation adjustments | (2,240) | (1,993) |
Other comprehensive loss, before tax | (2,240) | (1,993) |
Other comprehensive loss, net of tax | (2,240) | (1,993) |
Comprehensive income | $ 5,077,929 | $ 1,356,461 |
Net income per share (basic) (in dollars per share) | $ 0.18 | $ 0.05 |
Net income per share (diluted) (in dollars per share) | $ 0.18 | $ 0.05 |
Weighted average number of shares outstanding (basic) (in shares) | 27,908,155 | 26,392,514 |
Weighted average number of shares outstanding (diluted) (in shares) | 28,611,074 | 26,572,737 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (accumulated deficit) |
Balance at Mar. 31, 2015 | $ 288,495 | $ 524,210 | $ 2,467 | $ 6,487,589 | $ 23,561 | $ (6,749,332) |
Balance (in shares) at Mar. 31, 2015 | 1,927,508 | 24,669,958 | ||||
Share based compensation | 88,041 | 88,041 | ||||
Restricted shares issued, net of shares returned for withholding taxes | (4,826) | $ 13 | (4,839) | |||
Restricted shares issued, net of shares returned for withholding taxes (in shares) | 135,000 | |||||
Conversion of preferred stock | 0 | $ (524,210) | $ 252 | 523,958 | ||
Conversion of preferred stock (in shares) | (1,927,508) | 2,519,635 | ||||
Net Income | 1,358,454 | 1,358,454 | ||||
Other comprehensive loss, net of tax benefit ($0) | (1,993) | (1,993) | ||||
Balance at Mar. 31, 2016 | 1,728,171 | $ 0 | $ 2,732 | 7,094,749 | 21,568 | (5,390,878) |
Balance (in shares) at Mar. 31, 2016 | 0 | 27,324,593 | ||||
Share based compensation | 384,221 | 384,221 | ||||
Common stock awards | 780,000 | $ 150 | 779,850 | |||
Common stock awards (in shares) | 1,500,000 | |||||
Net Income | 5,080,169 | 5,080,169 | ||||
Other comprehensive loss, net of tax benefit ($0) | (2,240) | (2,240) | ||||
Balance at Mar. 31, 2017 | $ 7,970,321 | $ 0 | $ 2,882 | $ 8,258,820 | $ 19,328 | $ (310,709) |
Balance (in shares) at Mar. 31, 2017 | 0 | 28,824,593 |
CONSOLIDATED STATEMENTS OF STO6
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other comprehensive income (loss), tax benefit | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 5,080,169 | $ 1,358,454 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 689,293 | 747,553 |
Amortization of debt issue costs | 101,280 | 240,081 |
Loss on disposal of equipment | 62,140 | 0 |
Stock based compensation expense | 1,164,221 | 88,041 |
Change in contract losses | (304,465) | (69,014) |
Deferred income taxes | (2,871,680) | 0 |
Gain from claims assignment settlement - noncash portion | (507,835) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 151,808 | (1,196,117) |
Costs incurred on uncompleted contracts, in excess of progress billings | 298,421 | (387,398) |
Inventories - raw materials | (13,197) | 6,217 |
Other current assets | 108,692 | 7,411 |
Other noncurrent assets and liabilities | 7,978 | (193,906) |
Accounts payable | (630,757) | (668,295) |
Accrued expenses | (611,076) | 180,687 |
Accrued taxes payable | (9,032) | 9,032 |
Billings on uncompleted contracts, in excess of related costs | (986,187) | 417,512 |
Advanced claims payment | 0 | 507,835 |
Net cash provided by operating activities | 1,729,773 | 1,048,093 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (787,808) | (17,600) |
Capital expenditures for lighting project | 0 | (204,064) |
Net cash used in investing activities | (787,808) | (221,664) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Deferred loan costs | (198,449) | (100,472) |
Proceeds from lighting project grant | 0 | 204,064 |
Borrowings of long-term debt | 6,227,500 | 0 |
Repayment of long-term debt | (5,236,617) | (933,651) |
Net cash provided by (used in) financing activities | 792,434 | (830,059) |
Effect of exchange rate on cash and cash equivalents | (409) | (529) |
Net increase (decrease) in cash and cash equivalents | 1,733,990 | (4,159) |
Cash and cash equivalents, beginning of period | 1,332,166 | 1,336,325 |
Cash and cash equivalents, end of period | 3,066,156 | 1,332,166 |
Cash paid during the year for: | ||
Interest expense | 789,743 | 683,871 |
Income taxes | 65,000 | 0 |
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS: | ||
Amount of increase from stock conversions | 0 | |
Assets held for sale | 100,000 | 123,900 |
Property, plant and equipment and debt obligations | 12,505,927 | 11,846,832 |
Assets Held Under Capital Leases [Member] | ||
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS: | ||
Property, plant and equipment and debt obligations | $ 54,376 | 65,568 |
Common Stock | ||
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS: | ||
Amount of increase from stock conversions | 252 | |
Additional Paid in Capital | ||
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS: | ||
Amount of increase from stock conversions | $ 523,958 | |
Series A Convertible Preferred Stock | ||
SUPPLEMENTAL INFORMATION - NONCASH INVESTING AND FINANCING TRANSACTIONS: | ||
Number of shares of common stock issued for converted preferred stock | 2,519,635 | |
Shares converted into common stock | 1,927,508 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Mar. 31, 2017 | |
DESCRIPTION OF BUSINESS | |
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, WCMC and Ranor are collectively referred to as the “Company”, “we”, “us” or “our”. We manufacture large scale metal fabricated and machined precision components and equipment. These products are used in a variety of markets including defense and aerospace, nuclear, medical, and precision industrial. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements include the accounts of TechPrecision, WCMC and Ranor. Intercompany transactions and balances have been eliminated in consolidation. In preparing the 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 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, the 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. Holdings of highly liquid investments with maturities of three months or less, when purchased, are considered to be cash equivalents. U.S. based deposits are maintained in a large regional bank. Our China subsidiary also maintains a bank account in a large national bank in China subject to People’s Republic of China (PRC) banking regulations. Cash on deposit with a large national China-based bank was $ 14,805 8,115 Foreign currency translation The majority of our business is transacted in U.S. dollars; however, the functional currency of our subsidiary in China is the local currency, the Chinese Yuan Renminbi. In accordance with ASC No. 830, Foreign Currency Matters Accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. Based on management’s assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances which remain outstanding after reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Historically, the level of uncollectible accounts has not been significant. There was no bad debt expense recorded for the years ended March 31, 2017 and 2016. Inventories - raw materials is stated at the lower of cost or market determined by the first-in, first-out (FIFO) method. Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are accounted for on the straight-line method based on estimated useful lives. The amortization of leasehold improvements is based on the shorter of the lease term or the useful life of the improvement. Amortization of assets recorded under capital leases is included under depreciation expense. Betterments and large renewals, which extend the life of the asset, are capitalized whereas maintenance and repairs and small renewals are expensed as incurred. The estimated useful lives are: machinery and equipment, 5 15 30 2 5 Interest is capitalized for assets that are constructed or otherwise produced for our own use, including assets constructed or produced for us by others for which deposits or progress payments have been made. Interest is capitalized to the date the assets are available and ready for use. When an asset is constructed in stages, interest is capitalized for each stage until it is available and ready for use. We use the interest rate incurred on funds borrowed specifically for the project. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. There was $ 7,158 In accordance with ASC No. 360, Property, Plant & Equipment Costs incurred in connection with obtaining financing for long-term debt are capitalized and presented as a reduction of the carrying amount of the related debt. Costs incurred in connection with obtaining financing for revolving credit facilities and lines of credit are capitalized and presented as deferred financing costs. Loan acquisition costs are being amortized using the effective interest method over the term of the loan. Operating leases are charged to operations on a straight-line basis over the term of the lease. We lease certain office space in China under a long-term, non-cancelable operating lease agreement. The lease expires in October 2017. We account for fair value of financial instruments which defines fair value and establishes a framework to measure fair value and the related disclosures about fair value measurements in accordance with ASC No. 820, Fair Value Measurement The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, as presented in the balance sheet, approximates fair value due to the short-term nature of these instruments. 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. We charge research and development costs associated with the design and development of new products to expense when incurred. We incurred no research and development expense in fiscal 2017 or fiscal 2016. Selling, general and administrative (SG&A) expenses include items such as executive compensation and benefits, professional fees, business travel and office costs. Advertising costs are nominal and expensed as incurred. Other general and administrative expenses include items for our administrative functions and include costs for items such as office rent, supplies, insurance, legal, accounting, tax, telephone and other outside services. SG&A consisted of the following for the fiscal years ended March 31: 2017 2016 Salaries and related expenses $ 2,795,376 $ 2,234,830 Professional fees 1,008,223 597,833 Other general and administrative 533,388 552,346 Total Selling, General and Administrative $ 4,336,987 $ 3,385,009 Stock based compensation represents the cost related to stock based awards granted to our board of directors and employees. We measure stock based compensation cost at the grant date based on the estimated fair value of the award and recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. We estimate the fair value of stock options using a Black-Scholes valuation model. Stock based compensation is included in selling, general and administrative expense amounted to $ 1,164,221 88,041 Basic net income per common share is computed by dividing net income by the weighted average number of shares outstanding during the year. Diluted net income per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of convertible preferred stock and stock options calculated using the treasury stock method. See Note 17 Earnings per Share for additional disclosures related to net income per share. We have written agreements or purchase orders with our customers that specify contract prices and delivery terms. Revenue recognition requires the existence of a contract to provide the persuasive evidence of an arrangement and a determinable selling price, delivery of the product and reasonable collection prospects. The Company manufactures components under production-type contracts in a production process which meets our customer’s specifications. We account for revenues and earnings using the percentage of completion units of delivery method of accounting. Under this method, we recognize contract revenue and gross profit when the products are produced and delivered, or when services are rendered. We determine progress toward completion on production contracts based on output measures, such as units delivered, or in some cases, input measures, such as labor hours incurred. In fiscal 2017 and 2016, all of our revenue was recognized under the units of delivery method. We may combine contracts for accounting purposes when they are negotiated as a package with an overall profit margin objective. These essentially represent an agreement to do a single project for a single customer, involve interrelated construction activities with substantial common costs, and are performed concurrently or sequentially. When a group of contracts is combined, revenue and profit are earned when the products are produced and delivered. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability are recognized in the period in which the revisions are determined. Costs incurred on uncompleted contracts consist of labor, overhead, and materials. Work in process is stated at the lower of cost or market. We record provisions for contract losses within costs of sales in our Consolidated Statement of Operations and Comprehensive Income. Costs allocable to undelivered units are reported in the consolidated balance sheet as costs incurred on uncompleted contracts. Amounts in excess of the agreed upon contract price for customer directed changes, construction changes, customer delays or other causes of additional contract costs are recognized in contract value if it is probable that a claim for such amounts will result in additional revenue and the amounts can be reliably estimated. Revenues from such claims are recorded only to the extent that contract costs have been incurred. Revisions in cost and profit estimates are reflected in the period in which the facts requiring the revision become known and are estimable. When we can only estimate a range of revenues and costs, we use the most likely estimate within the range. If we cannot determine which estimate in the range is most likely, the amounts within the range that would result in the lowest profit margin is used (the lowest contract revenue estimate and the highest contract cost estimate). In some situations, it may be impractical for us to estimate either specific amounts or ranges of contract revenues and costs. However, if we can at least determine that we will not incur a loss, a zero profit model is adopted. The zero profit model results in the recognition of an equal amount of revenues and costs. This method is only used if more precise estimates cannot be made and its use is discontinued when such estimates are obtainable. When we obtain more precise estimates, the change is treated as a change in an accounting estimate. Shipping and handling costs are included in cost of sales. Shipping and handling costs billed to customers in connection with the sale are included in net sales. In accordance with ASC No. 740, Income Taxes . Reclassifications Certain reclassifications of prior-year financial information presented herein for comparative purposes have been reclassified to conform with current-year presentation. The reclassifications had no impact on 2016 net income. New Accounting Standards Recently Adopted In April 2015, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issue Costs 3,782,752 47,342 Issued Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. Current practice is primarily a risk and rewards based model, while the new standard introduces the concept of inventory control and satisfaction of performance obligations over time. We are currently assessing the impact that the new revenue recognition guidance may have on our Consolidated Financial Statements and disclosures by comparing our current revenue recognition policy with the requirements of the new standard. It is possible that our current practices may no longer be viable under the new revenue recognition guidance. The guidance also requires a number of disclosures regarding the nature, amount, timing and uncertainty of revenue and the related cash flows. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The guidance is effective for annual reporting periods beginning on or after December 15, 2017. We do not plan to early adopt the standard. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers, Narrow Scope Improvements and Practical Expedients In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra Entity Transfers of Assets Other Than Inventory, In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, . |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Mar. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 3 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following as of March 31: 2017 2016 Land $ 110,113 $ 110,113 Building and improvements 3,252,908 3,252,908 Machinery equipment, furniture and fixtures 8,601,199 8,418,243 Construction in progress 487,331 Equipment under capital leases 54,376 65,568 Total property, plant and equipment 12,505,927 11,846,832 Less: accumulated depreciation (7,593,725) (7,032,648) Total property, plant and equipment, net $ 4,912,202 $ 4,814,184 Depreciation expense, which includes amortization of equipment under capital leases, for the years ended March 31, 2017 and 2016 was $ 689,293 747,553 Capitalized leases included in machinery and equipment were $ 54,376 65,568 2,719 42,443 We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. Capitalized interest for the year ended March 31, 2017 was $ 7,158 In fiscal 2016, the Company purchased LED lighting which qualified for a capital incentive grant of $ 146,000 58,064 204,064 58,064 |
COSTS INCURRED ON UNCOMPLETED C
COSTS INCURRED ON UNCOMPLETED CONTRACTS | 12 Months Ended |
Mar. 31, 2017 | |
COSTS INCURRED ON UNCOMPLETED CONTRACTS | |
COSTS INCURRED ON UNCOMPLETED CONTRACTS | NOTE 4 - COSTS INCURRED ON UNCOMPLETED CONTRACTS The following table sets forth information as to costs incurred on uncompleted contracts as of March 31: 2017 2016 Cost incurred on uncompleted contracts, beginning balance $ 5,491,605 $ 4,068,488 Total cost incurred on contracts during the year 12,501,752 12,783,323 Less cost of sales, during the year (12,454,542) (11,360,206) Cost incurred on uncompleted contracts, ending balance $ 5,538,815 $ 5,491,605 Billings on uncompleted contracts, beginning balance $ 3,095,963 $ 2,060,244 Plus: Total billings incurred on contracts, during the year 18,896,305 17,889,671 Less: Contracts recognized as revenue, during the year (18,550,674) (16,853,952) Billings on uncompleted contracts, ending balance $ 3,441,594 $ 3,095,963 Cost incurred on uncompleted contracts, ending balance $ 5,538,815 $ 5,491,605 Billings on uncompleted contracts, ending balance 3,441,594 3,095,963 Costs incurred on uncompleted contracts, in excess of progress billings $ 2,097,221 $ 2,395,642 Contract costs consist primarily of labor and materials and related overhead, to the extent that such costs are recoverable. Revenues associated with these contracts are recorded only when the amount of recovery can be estimated reliably and realization is probable. As of March 31, 2017 and 2016, we had billings in excess of costs totaling $ 642,831 1,629,018 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Mar. 31, 2017 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | NOTE 5 OTHER CURRENT ASSETS Other current assets included the following as of March 31: 2017 2016 Payments advanced to suppliers $ 107,591 $ 182,305 Prepaid insurance 229,132 236,300 Collateral deposits 85,252 Other 85,373 26,951 Total $ 422,096 $ 530,808 |
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS | 12 Months Ended |
Mar. 31, 2017 | |
OTHER NONCURRENT ASSETS | |
OTHER NONCURRENT ASSETS | NOTE 6 OTHER NONCURRENT ASSETS Other noncurrent assets included the following as of March 31: 2017 2016 Assets held for sale $ 100,000 $ 123,900 Prepaid loan costs 52,444 Total $ 100,000 $ 176,344 At March 31, 2017 and 2016, we classified certain machinery and equipment of $ 100,000 123,900 . In fiscal 2017, we wrote down certain machinery held for sale by $43,900, subsequently sold this machinery in May 2017. We also classified other equipment in fiscal 2017 for $20,000 to assets held for sale. We this remaining asset |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Mar. 31, 2017 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | NOTE 7 - ACCRUED EXPENSES Accrued expenses included the following as of March 31: 2017 2016 Accrued compensation $ 568,766 $ 872,114 Provision for contract losses 148,699 464,785 Accrued interest expense 9,155 296,344 Accrued professional fees 142,648 117,981 Other 24,147 53,261 Total $ 893,415 $ 1,804,485 Accrued compensation includes amounts for executive bonuses, payroll and vacation and holiday pay. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in the provision are recorded in cost of sales. Our contract loss provision at March 31, 2016 included approximately $ 0.5 |
DEBT
DEBT | 12 Months Ended |
Mar. 31, 2017 | |
DEBT | |
DEBT | NOTE 8 DEBT 2017 2016 Commerce Term Loan due January 2022 $ 2,828,844 $ People’s Equipment Loan Facility due April 2021 2,884,982 Utica Credit Loan Note due November 2018 2,459,259 Revere Term Loan and Notes due January 2018 2,250,000 Obligations under capital leases 67,353 26,599 Total debt $ 5,781,179 $ 4,735,858 Less: debt issue costs unamortized $ 188,977 $ 47,342 Total debt, net $ 5,592,202 $ 4,688,516 Less: Current portion of long-term debt $ 717,481 $ 953,106 Total long-term debt, net $ 4,874,721 $ 3,735,410 Commerce Bank & Trust Company Loan Facility On December 21, 2016, TechPrecision, through Ranor, closed on a Loan Agreement, or the Commerce Loan Agreement, with Commerce Bank & Trust Company, or Commerce. Pursuant to the Commerce Loan Agreement, Commerce made a term loan to Ranor in the amount of $ 2,850,000 1,000,000 60 5.21 45 1,000,000 80 25 250,000 one-month LIBOR plus 275 basis points The Commerce Loan Agreement contains a covenant whereby the Company is required to maintain a debt service coverage ratio or DSCR, of at least 1.2 3.50 3.00 2.50 1,000,000 2,500,000 2,500,000 1,500,000 2.86 1.0 0.75 365 The Commerce Loans may be accelerated upon the occurrence of an “Event of Default” (as defined in the Commerce Loan Agreement). Events of Default include (i) the failure to pay any monthly installment payment before the tenth day following the due date of such payment; (ii) the failure of Ranor or TechPrecision to observe, perform or pay any obligations under the Commerce Loan Agreement or any other obligation to Commerce; (iii) the failure of Ranor or TechPrecision to pay any indebtedness in excess of $ 100,000 150,000 In connection with the Commerce Loan Agreement, $ 2,394,875 426,467 77,198 People’s Capital and Leasing Corp. Equipment Loan Facility On April 26, 2016, TechPrecision, through Ranor, executed and closed a Master Loan and Security Agreement No. 4180, as supplemented with Schedule No. 001, or, together, the MLSA, with People’s Capital and Leasing Corp., or People’s. The MLSA is dated and effective as of March 31, 2016. Loan proceeds were disbursed to Ranor on April 26, 2016. Pursuant to the MLSA, People’s loaned $ 3,011,648 60 60,921 7.90 1.5 2.86 In connection with the MLSA, $ 2,653,353 182,763 1.82 175,532 111,778 On October 4, 2016, TechPrecision and Ranor became committed to Schedule No. 002 to the MLSA, or Schedule 2. Pursuant to Schedule 2, People’s made an additional loan in the amount of $ 365,852 7,399 60 On December 21, 2016, TechPrecision and Ranor closed on an Amendment to the MLSA, or the MLSA Amendment, with People’s. The MLSA Amendment, dated as of December 20, 2016, amends the definition of “Permitted Liens” under the MLSA to include the liens held by Commerce pursuant to the terms of the Commerce Loan Agreement and to delete the reference to the liens held by Revere. Term Loan and Security Agreement On December 22, 2014, TechPrecision, Ranor and Revere entered into the Term Loan and Security Agreement, or TLSA. Pursuant to the TLSA, Revere loaned an aggregate of $ 2.25 1.5 750,000 12 1.45 217,220 On December 31, 2015, TechPrecision, Ranor and Revere entered into a Note and Other Loan Documents Modification Agreement to the TLSA, or the First Modification Agreement. The First Modification Agreement extended the maturity date of the TLSA and the Notes from December 31, 2015 to January 22, 2016 and provided that Ranor agreed to waive its right to extend the maturity date of the TLSA and the Notes by six months as set forth in the TLSA. In connection with its entry into the First Modification Agreement, Ranor paid an exit fee of $ 67,500 On January 22, 2016, TechPrecision, Ranor and Revere entered into the Second Modification Agreement, which further amended the TLSA. In connection with the Second Modification Agreement, Ranor executed the Amended and Restated Notes in favor of Revere. The Second Modification Agreement (a) extended the maturity date of the term loans made pursuant to the TLSA to January 22, 2018, (b) amended the amortization schedule such that payments under the TLSA and Amended and Restated Notes are due as follows: (i) payments of interest only on advanced principal on a monthly basis on the first day of each month from March 1, 2016 until January 1, 2017 and (ii) payments of $ 9,375 10 Pursuant to the TLSA, as amended by the Second Modification Agreement, 640,000 1,000,000 786,212 The obligations under the TLSA were paid in full prior to the maturity date on December 21, 2016. Loan and Security Agreement On May 30, 2014, TechPrecision and Ranor entered into the Loan and Security Agreement, or LSA, with Utica. Pursuant to the LSA, Utica agreed to loan $ 4.15 7.5 3.3 . 10.8 Pursuant to the LSA, Ranor was subject to certain restrictive covenants which, among other things, restricted Ranor’s ability to (1) declare or pay any dividend or other distribution on its equity, purchase or retire any of its equity, or alter its capital structure; (2) make any loan or guaranty or assume any obligation or liability; (3) default in payment of any debt in excess of $ 5,000 0.24 2.65 1.27 The obligations under the LSA and the Credit Loan Note were paid in full prior to the maturity date on April 26, 2016. Capital Lease We entered into a new capital lease in January 2017 for certain office equipment. The lease term is for 60 7.9 1,169 Concurrently, in January 2017 we retired certain office equipment under an existing capital lease which was amended in 2014. The revised lease term will expire in March 2018 and the required monthly payments of principal and interest will be $ 1,187 720 The maturities of all of our debt including the capital lease are as follows: 2018: $ 717,481 799,744 811,896 935,893 2,516,165 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | NOTE 9 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes 2017 2016 U.S. operations $ 2,268,906 $ 1,409,487 Foreign operations (23,056) (51,801) Income from operations before tax 2,245,850 1,357,686 Income tax benefit (2,834,319) (768) Net income $ 5,080,169 $ 1,358,454 The income tax benefit consists of the following as of March 31: 2017 2016 Current Federal $ 37,361 $ 9,032 State (9,800) Total Current $ 37,361 $ (768) Deferred Federal (2,320,258) State (551,422) Total Deferred $ (2,871,680) $ (768) Income tax benefit $ (2,834,319) $ (768) Reconciliation between income taxes computed at the U.S. federal statutory rate to the actual tax benefit for income taxes reported in the Consolidated Statements of Operations and Comprehensive Income for fiscal years ended March 31: 2017 2016 Federal statutory income tax $ 763,589 $ 461,613 State income tax, net of federal benefit 41,603 (6,468) Change in valuation allowance (3,580,148) (485,846) Stock based compensation 23,096 Other (59,363) 6,887 Income tax benefit $ (2,834,319) $ (768) We adopted the new presentation of deferred taxes requiring deferred income tax assets and liabilities to be classified as noncurrent in our Consolidated Balance Sheets in the fourth quarter of fiscal 2016, on a prospective basis. The following table summarizes the components of deferred income tax assets and liabilities: 2017 2016 Deferred Tax Assets: Compensation $ 162,571 $ 307,427 Loss on uncompleted contracts 58,409 180,521 Foreign currency translation adjustment 5,508 5,455 Other liabilities not currently deductible 364,569 265,455 Share based compensation awards 245,811 92,744 Net operating loss carryforward 4,093,968 4,950,542 Valuation allowance (1,537,726) (5,117,874) Total Deferred Tax Assets $ 3,393,110 $ 684,270 Deferred Tax Liabilities: Accelerated depreciation $ (521,430) $ (684,270) Total Deferred Tax Liabilities $ (521,430) $ (684,270) Net Deferred Tax Asset $ 2,871,680 $ In assessing the recoverability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We have determined that it is more likely than not that certain future tax benefits may not be realized. Accordingly, a valuation allowance has been recorded against deferred tax assets that are unlikely to be realized. Realization of the remaining deferred tax assets will depend on the generation of sufficient taxable income in the appropriate jurisdictions, the reversal of deferred tax liabilities, tax planning strategies and other factors prior to the expiration date of the carryforwards. A change in the estimates used to make this determination could require an increase in deferred tax assets if they become realizable. The valuation allowance on deferred tax assets at March 31, 2017 was $ 1.5 5.1 3.6 and foreign and other deferred tax assets 1.5 The following table summarizes carryforwards of net operating losses and tax credits as of March 31, 2017: Begins to Amount Expire: Federal net operating losses $ 6,589,720 2026 Federal alternative minimum tax credits $ 122,578 Indefinite State net operating losses $ 26,022,238 2032 The Internal Revenue Code provides for a limitation on the annual use of net operating loss carryforwards following certain ownership changes that could limit our ability to utilize these carryforwards on a yearly basis. We experienced an ownership change in connection with the acquisition of Ranor in 2006. Accordingly, our ability to utilize certain carryforwards relating to 2006 and prior is limited. Our remaining pre-2006 net operating losses total approximately $ 1.2 5.4 We have not accrued any penalties with respect to uncertain tax positions. We file income tax returns in the U.S. federal jurisdiction and various U.S. state jurisdictions. Our foreign subsidiary files separate income tax returns in China, the foreign jurisdiction in which it is located. Tax years 2013 and forward remain open for examination. We recognize interest and penalties accrued related to income tax liabilities in selling, general and administrative expense in our Consolidated Statements of Operations and Comprehensive Income. |
PROFIT SHARING PLAN
PROFIT SHARING PLAN | 12 Months Ended |
Mar. 31, 2017 | |
PROFIT SHARING PLAN | |
PROFIT SHARING PLAN | NOTE 10 - PROFIT SHARING PLAN Ranor has a 401(k) profit sharing plan that covers substantially all Ranor employees who have completed 90 82,189 61,302 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Mar. 31, 2017 | |
CAPITAL STOCK | |
CAPITAL STOCK | NOTE 11 - CAPITAL STOCK Common Stock We had 90,000,000 28,824,593 27,324,593 Preferred Stock We have 10,000,000 Each share of Series A Convertible Preferred Stock was initially convertible into one share of common stock. As a result of our failure to meet certain levels of earnings before interest, taxes, depreciation and amortization for the years ended March 31, 2006 and 2007, the conversion rate changed, and each share of Series A Convertible Preferred Stock became convertible into 1.3072 0.218 On September 24, 2015, 1,927,508 2,519,635 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2017 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 - 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, or the Annual Meeting, on December 8, 2016. The 2016 Plan succeeds the 2006 Plan and applies to awards granted after the Annual Meeting. We have designed the 2016 Plan to reflect our commitment to having best practices in both compensation and corporate governance. The 2016 Plan provides for a share reserve of 5,000,000 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. 5,000,000 1,958,500 On March 31, 2017, in connection with a consulting agreement with our retiring directors, we granted stock options to the retiring members of our board of directors to collectively purchase 66,668 0.75 24,350 On December 27, 2016, in recognition of performance and to increase the alignment of his interests with those of our stockholders, TechPrecision granted to Alexander Shen, TechPrecision’s Chief Executive Officer, a non-qualified stock option to purchase 1,000,000 0.50 666,667 333,333 418,995 314,350 133,117 On July 1, 2015, we granted stock options to members of our board of directors to collectively purchase 30,000 0.10 On August 12, 2015, we granted stock options to our chief executive officer to purchase in total 1,000,000 0.08 On January 21, 2016, we granted stock options to our chief financial officer to purchase in total 500,000 0.17 The fair value of the options we grant is estimated using the Black-Scholes option-pricing model based on the closing stock prices at the grant date and the weighted average assumptions specific to the underlying options. Expected volatility assumptions are based on the historical volatility of our common stock. The average dividend yield over the historical period for which volatility was computed is zero. The risk-free interest rate was selected based upon yields of five-year U.S. Treasury issues. We used the simplified method for all grants to estimate the expected life of the option. We assume that stock options will be exercised evenly over the period from vesting until the awards expire. As such, the assumed period for each vesting tranche is computed separately and then averaged together to determine the expected term for the award. The assumptions utilized for options granted during the period presented range from 110.2 123.8 1.93 2.07 1,997,332 The following table summarizes information about options for the most recent annual income statements presented: Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2015 1,190,500 $ 1.049 $ 21,600 5.18 Granted 1,530,000 $ 0.110 Exercised (135,000) $ 0.080 Forfeited (187,000) $ 0.841 Outstanding at 3/31/2016 2,398,500 $ 0.711 $ 183,900 7.90 Granted 1,066,668 $ 0.516 250,000 Expired (440,000) $ 0.770 Forfeited (22,500) $ 0.912 Outstanding at 3/31/2017 3,002,668 $ 0.387 $ 1,246,600 5.72 Vested or expected to vest at 3/31/2017 3,002,668 $ 0.387 $ 1,246,600 5.72 Exercisable and vested at 3/31/2017 2,169,334 $ 0.434 $ 843,266 5.72 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 fourth quarter of fiscal 2017 and fiscal 2016 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 March 31, 2017. This amount changes based on the fair market value of the Company’s common stock. The total intrinsic value of options exercised for the year ended March 31, 2016 was $ 10,800 The following table summarizes the status of our stock options outstanding but not vested for the year ended March 31, 2017: Weighted Number of Average Options Exercise Price Outstanding at 3/31/2015 112,500 $ 0.664 Granted 1,530,000 $ 0.110 Forfeited (40,000) $ 0.670 Vested (574,166) $ 0.216 Outstanding at 3/31/2016 1,028,334 $ 0.117 Granted 1,066,668 $ 0.516 Forfeited (13,333) $ 0.670 Vested (1,248,335) $ 0.352 Outstanding at 3/31/2017 833,334 $ 0.266 The total fair value of shares vested during the year was $ 439,835 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 2,821,668 6.40 $ 0.31 1,988,334 $ 0.33 $1.01-$1.96 181,000 3.28 $ 1.60 181,000 $ 1.60 Totals 3,002,668 2,169,334 Restricted Stock Awards In December 2014, each non-employee director waived any compensation owed to them for their service to the Company. On November 10, 2016, our board of directors determined that it would grant shares of common stock to each of our directors as compensation for their service to the Company during the period from January 1, 2014 to November 10, 2016. Accordingly, our board of directors granted 600,000 250,000 200,000 780,000 |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | 12 Months Ended |
Mar. 31, 2017 | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 13 - CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS We maintain bank account balances, which, at times, may exceed 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 March 31, 2017, there were accounts receivable balances outstanding from three customers comprising 83 March 31, 2017 March 31, 2016 Customer Dollars Percent Dollars Percent A $ 961,463 51 % $ 834,501 41 % B $ 406,428 22 % $ 315,699 16 % C $ 187,410 10 % $ * * % D $ * * % $ 225,415 11 % *less than 10% of total We have been dependent in each year on a small number of customers who generate a significant portion of our business, and these customers change from year to year. The following table sets forth information as to net sales from customers who accounted for more than 10% of our net sales for the fiscal year ended: March 31, 2017 March 31, 2016 Customer Dollars Percent Dollars Percent A $ 7,515,795 41 % $ 3,519,258 21 % B $ 2,324,504 13 % $ 2,958,232 18 % C $ 2,166,171 12 % $ * * % D $ * * % $ 1,802,148 11 % *less than 10% of total |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Mar. 31, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 14 SEGMENT INFORMATION We consider our business to consist of one segment - metal fabrication and precision machining. All of our operations, assets and customers are located in the United States. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS | |
COMMITMENTS | NOTE 15 COMMITMENTS Operating Leases We lease approximately 1,000 4,000 Rent expense for all operating leases for the fiscal years ended March 31, 2017 and 2016 was $ 3,738 21,206 Future minimum lease payments required under non-cancellable operating leases at March 31, 2017 totaled $ 1,983 Expiration of a Lease The Company leased approximately 1,100 Employment Agreements We have employment agreements with each of our executive officers. Such agreements provide for minimum salary levels, adjusted annually, and incentive bonuses that are payable if specified company goals are attained. The aggregate commitment at March 31, 2017 for future executive salaries during the fiscal year ending March 31, 2018, including severance for our former chief financial officer and fiscal 2017 bonuses payable after March 31, 2017, was approximately $ 0.8 0.4 Purchase Commitments As of March 31, 2017, we had $ 0.9 Class Action Lawsuit On or about February 26, 2016, nine former employees of Ranor filed a complaint in the Massachusetts Superior Court, Worcester County, against former and current executive officers of Ranor, alleging violations of the Massachusetts Wage Act, breach of contract and conversion. Plaintiffs claim that Ranor’s modification to its personal time off, or PTO, policy in April 2014 caused these employees to forfeit earned PTO. Plaintiffs purport to assert their claims on behalf of a class of all current and former employees of Ranor who were affected by the modification to Ranor’s PTO policy. The pre-trial discovery phase ended on June 21, 2017. No trial date has been set. |
CLAIM ASSIGNMENT SETTLEMENT
CLAIM ASSIGNMENT SETTLEMENT | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
CLAIM ASSIGNMENT SETTLEMENT | NOTE 16 CLAIM ASSIGNMENT SETTLEMENT On April 17, 2015, we entered into an Assignment of Claim Agreement, or the Assignment Agreement, with Citigroup Financial Products, Inc., or Citigroup, whereby we sold, transferred, conveyed and assigned to Citigroup all of Ranor’s right, title and interest in Ranor’s $ 3,740,956 507,835 614,452 614,452 1,122,287 |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 12 Months Ended |
Mar. 31, 2017 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of 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. March 31, March 31, 2017 2016 Basic EPS Net Income $ 5,080,169 $ 1,358,454 Weighted average shares 27,908,155 26,392,514 Basic Income per share $ 0.18 $ 0.05 Diluted EPS Net Income $ 5,080,169 $ 1,358,454 Dilutive effect of stock options 702,919 180,223 Diluted weighted average shares 28,611,074 26,572,737 Diluted Income per share $ 0.18 $ 0.05 All potential common share equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were 1,472,668 1,368,500 |
SELECTED QUARTERLY INFORMATION
SELECTED QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Mar. 31, 2017 | |
SELECTED QUARTERLY INFORMATION (UNAUDITED) | |
SELECTED QUARTERLY INFORMATION (UNAUDITED) | NOTE 18 SELECTED QUARTERLY INFORMATION (UNAUDITED) The following table sets forth certain unaudited quarterly data for each of the four quarters in the years ended March 31, 2017 and 2016. The data has been derived from our unaudited consolidated financial statements that, in management’s opinion, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of such information when read in conjunction with the Consolidated Financial Statements and Notes thereto. Net Income for each of the periods presented includes contract losses and unabsorbed overhead that increased cost of goods sold and lowered gross profit. First Second Third Fourth (in thousands, except for per share data) Quarter Quarter Quarter Quarter Year ended March 31, 2017 Net Sales $ 4,644 $ 3,656 $ 5,319 $ 4,931 Gross Profit $ 1,535 $ 1,474 $ 2,052 $ 1,035 Net Income $ 445 $ 546 $ 992 $ 3,097 Basic Income per share $ 0.02 $ 0.02 $ 0.03 $ 0.11 Diluted Income per share $ 0.02 $ 0.02 $ 0.03 $ 0.11 Year ended March 31, 2016 Net Sales $ 4,374 $ 4,103 $ 3,507 $ 4,869 Gross Profit $ 1,283 $ 1,408 $ 1,072 $ 1,731 Net Income $ 206 $ 255 $ 12 $ 885 Basic Income per share $ 0.01 $ 0.01 $ 0.00 $ 0.03 Diluted Income per share $ 0.01 $ 0.01 $ 0.00 $ 0.03 |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements include the accounts of TechPrecision, WCMC and Ranor. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements In preparing the 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 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, the 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. |
Cash and cash equivalents | Cash and cash equivalents Holdings of highly liquid investments with maturities of three months or less, when purchased, are considered to be cash equivalents. U.S. based deposits are maintained in a large regional bank. Our China subsidiary also maintains a bank account in a large national bank in China subject to People’s Republic of China (PRC) banking regulations. Cash on deposit with a large national China-based bank was $ 14,805 8,115 |
Foreign currency translation | Foreign currency translation The majority of our business is transacted in U.S. dollars; however, the functional currency of our subsidiary in China is the local currency, the Chinese Yuan Renminbi. In accordance with ASC No. 830, Foreign Currency Matters |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. Based on management’s assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances which remain outstanding after reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Historically, the level of uncollectible accounts has not been significant. There was no bad debt expense recorded for the years ended March 31, 2017 and 2016. |
Inventories | Inventories Inventories - raw materials is stated at the lower of cost or market determined by the first-in, first-out (FIFO) method. |
Property, plant and equipment, net | Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are accounted for on the straight-line method based on estimated useful lives. The amortization of leasehold improvements is based on the shorter of the lease term or the useful life of the improvement. Amortization of assets recorded under capital leases is included under depreciation expense. Betterments and large renewals, which extend the life of the asset, are capitalized whereas maintenance and repairs and small renewals are expensed as incurred. The estimated useful lives are: machinery and equipment, 5 15 30 2 5 Interest is capitalized for assets that are constructed or otherwise produced for our own use, including assets constructed or produced for us by others for which deposits or progress payments have been made. Interest is capitalized to the date the assets are available and ready for use. When an asset is constructed in stages, interest is capitalized for each stage until it is available and ready for use. We use the interest rate incurred on funds borrowed specifically for the project. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. There was $ 7,158 In accordance with ASC No. 360, Property, Plant & Equipment |
Debt Issuance Costs, Policy | Debt Issuance Costs Costs incurred in connection with obtaining financing for long-term debt are capitalized and presented as a reduction of the carrying amount of the related debt. Costs incurred in connection with obtaining financing for revolving credit facilities and lines of credit are capitalized and presented as deferred financing costs. Loan acquisition costs are being amortized using the effective interest method over the term of the loan. |
Operating Leases | Operating Leases Operating leases are charged to operations on a straight-line basis over the term of the lease. We lease certain office space in China under a long-term, non-cancelable operating lease agreement. The lease expires in October 2017. |
Fair Value Measurements | Fair Value Measurements We account for fair value of financial instruments which defines fair value and establishes a framework to measure fair value and the related disclosures about fair value measurements in accordance with ASC No. 820, Fair Value Measurement The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, as presented in the balance sheet, approximates fair value due to the short-term nature of these instruments. 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. |
Research and Development | Research and Development We charge research and development costs associated with the design and development of new products to expense when incurred. We incurred no research and development expense in fiscal 2017 or fiscal 2016. |
Selling, General, and Administrative | Selling, general and administrative (SG&A) expenses include items such as executive compensation and benefits, professional fees, business travel and office costs. Advertising costs are nominal and expensed as incurred. Other general and administrative expenses include items for our administrative functions and include costs for items such as office rent, supplies, insurance, legal, accounting, tax, telephone and other outside services. SG&A consisted of the following for the fiscal years ended March 31: 2017 2016 Salaries and related expenses $ 2,795,376 $ 2,234,830 Professional fees 1,008,223 597,833 Other general and administrative 533,388 552,346 Total Selling, General and Administrative $ 4,336,987 $ 3,385,009 |
Stock Based Compensation | Stock based compensation represents the cost related to stock based awards granted to our board of directors and employees. We measure stock based compensation cost at the grant date based on the estimated fair value of the award and recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. We estimate the fair value of stock options using a Black-Scholes valuation model. Stock based compensation is included in selling, general and administrative expense amounted to $ 1,164,221 88,041 |
Net Income (Loss) per Share of Common Stock | Basic net income per common share is computed by dividing net income by the weighted average number of shares outstanding during the year. Diluted net income per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of convertible preferred stock and stock options calculated using the treasury stock method. See Note 17 Earnings per Share for additional disclosures related to net income per share. |
Revenue and Related Cost Recognition | Revenue and Related Cost Recognition We have written agreements or purchase orders with our customers that specify contract prices and delivery terms. Revenue recognition requires the existence of a contract to provide the persuasive evidence of an arrangement and a determinable selling price, delivery of the product and reasonable collection prospects. The Company manufactures components under production-type contracts in a production process which meets our customer’s specifications. We account for revenues and earnings using the percentage of completion units of delivery method of accounting. Under this method, we recognize contract revenue and gross profit when the products are produced and delivered, or when services are rendered. We determine progress toward completion on production contracts based on output measures, such as units delivered, or in some cases, input measures, such as labor hours incurred. In fiscal 2017 and 2016, all of our revenue was recognized under the units of delivery method. We may combine contracts for accounting purposes when they are negotiated as a package with an overall profit margin objective. These essentially represent an agreement to do a single project for a single customer, involve interrelated construction activities with substantial common costs, and are performed concurrently or sequentially. When a group of contracts is combined, revenue and profit are earned when the products are produced and delivered. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability are recognized in the period in which the revisions are determined. Costs incurred on uncompleted contracts consist of labor, overhead, and materials. Work in process is stated at the lower of cost or market. We record provisions for contract losses within costs of sales in our Consolidated Statement of Operations and Comprehensive Income. Costs allocable to undelivered units are reported in the consolidated balance sheet as costs incurred on uncompleted contracts. Amounts in excess of the agreed upon contract price for customer directed changes, construction changes, customer delays or other causes of additional contract costs are recognized in contract value if it is probable that a claim for such amounts will result in additional revenue and the amounts can be reliably estimated. Revenues from such claims are recorded only to the extent that contract costs have been incurred. Revisions in cost and profit estimates are reflected in the period in which the facts requiring the revision become known and are estimable. When we can only estimate a range of revenues and costs, we use the most likely estimate within the range. If we cannot determine which estimate in the range is most likely, the amounts within the range that would result in the lowest profit margin is used (the lowest contract revenue estimate and the highest contract cost estimate). In some situations, it may be impractical for us to estimate either specific amounts or ranges of contract revenues and costs. However, if we can at least determine that we will not incur a loss, a zero profit model is adopted. The zero profit model results in the recognition of an equal amount of revenues and costs. This method is only used if more precise estimates cannot be made and its use is discontinued when such estimates are obtainable. When we obtain more precise estimates, the change is treated as a change in an accounting estimate. |
Shipping and Handling Cost, Policy | Shipping and Handling Costs Shipping and handling costs are included in cost of sales. Shipping and handling costs billed to customers in connection with the sale are included in net sales. |
Income Taxes | In accordance with ASC No. 740, Income Taxes . |
Reclassifications | Reclassifications Certain reclassifications of prior-year financial information presented herein for comparative purposes have been reclassified to conform with current-year presentation. The reclassifications had no impact on 2016 net income. |
New Accounting Standards | New Accounting Standards Recently Adopted In April 2015, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issue Costs 3,782,752 47,342 Issued Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. Current practice is primarily a risk and rewards based model, while the new standard introduces the concept of inventory control and satisfaction of performance obligations over time. We are currently assessing the impact that the new revenue recognition guidance may have on our Consolidated Financial Statements and disclosures by comparing our current revenue recognition policy with the requirements of the new standard. It is possible that our current practices may no longer be viable under the new revenue recognition guidance. The guidance also requires a number of disclosures regarding the nature, amount, timing and uncertainty of revenue and the related cash flows. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The guidance is effective for annual reporting periods beginning on or after December 15, 2017. We do not plan to early adopt the standard. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers, Narrow Scope Improvements and Practical Expedients In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra Entity Transfers of Assets Other Than Inventory, In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, . |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of selling, general, and administrative expenses | 2017 2016 Salaries and related expenses $ 2,795,376 $ 2,234,830 Professional fees 1,008,223 597,833 Other general and administrative 533,388 552,346 Total Selling, General and Administrative $ 4,336,987 $ 3,385,009 |
PROPERTY, PLANT AND EQUIPMENT28
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of components of property, plant and equipment, net | 2017 2016 Land $ 110,113 $ 110,113 Building and improvements 3,252,908 3,252,908 Machinery equipment, furniture and fixtures 8,601,199 8,418,243 Construction in progress 487,331 Equipment under capital leases 54,376 65,568 Total property, plant and equipment 12,505,927 11,846,832 Less: accumulated depreciation (7,593,725) (7,032,648) Total property, plant and equipment, net $ 4,912,202 $ 4,814,184 |
COSTS INCURRED ON UNCOMPLETED29
COSTS INCURRED ON UNCOMPLETED CONTRACTS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
COSTS INCURRED ON UNCOMPLETED CONTRACTS | |
Schedule of costs incurred on uncompleted contracts | 2017 2016 Cost incurred on uncompleted contracts, beginning balance $ 5,491,605 $ 4,068,488 Total cost incurred on contracts during the year 12,501,752 12,783,323 Less cost of sales, during the year (12,454,542) (11,360,206) Cost incurred on uncompleted contracts, ending balance $ 5,538,815 $ 5,491,605 Billings on uncompleted contracts, beginning balance $ 3,095,963 $ 2,060,244 Plus: Total billings incurred on contracts, during the year 18,896,305 17,889,671 Less: Contracts recognized as revenue, during the year (18,550,674) (16,853,952) Billings on uncompleted contracts, ending balance $ 3,441,594 $ 3,095,963 Cost incurred on uncompleted contracts, ending balance $ 5,538,815 $ 5,491,605 Billings on uncompleted contracts, ending balance 3,441,594 3,095,963 Costs incurred on uncompleted contracts, in excess of progress billings $ 2,097,221 $ 2,395,642 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | 2017 2016 Payments advanced to suppliers $ 107,591 $ 182,305 Prepaid insurance 229,132 236,300 Collateral deposits 85,252 Other 85,373 26,951 Total $ 422,096 $ 530,808 |
OTHER NONCURRENT ASSETS (Tables
OTHER NONCURRENT ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
OTHER NONCURRENT ASSETS | |
Schedule of other noncurrent assets | 2017 2016 Assets held for sale $ 100,000 $ 123,900 Prepaid loan costs 52,444 Total $ 100,000 $ 176,344 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | 2017 2016 Accrued compensation $ 568,766 $ 872,114 Provision for contract losses 148,699 464,785 Accrued interest expense 9,155 296,344 Accrued professional fees 142,648 117,981 Other 24,147 53,261 Total $ 893,415 $ 1,804,485 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
DEBT | |
Schedule of outstanding debt obligations | 2017 2016 Commerce Term Loan due January 2022 $ 2,828,844 $ People’s Equipment Loan Facility due April 2021 2,884,982 Utica Credit Loan Note due November 2018 2,459,259 Revere Term Loan and Notes due January 2018 2,250,000 Obligations under capital leases 67,353 26,599 Total debt $ 5,781,179 $ 4,735,858 Less: debt issue costs unamortized $ 188,977 $ 47,342 Total debt, net $ 5,592,202 $ 4,688,516 Less: Current portion of long-term debt $ 717,481 $ 953,106 Total long-term debt, net $ 4,874,721 $ 3,735,410 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES | |
Schedule of income (loss) from continuing operations by location | 2017 2016 U.S. operations $ 2,268,906 $ 1,409,487 Foreign operations (23,056) (51,801) Income from operations before tax 2,245,850 1,357,686 Income tax benefit (2,834,319) (768) Net income $ 5,080,169 $ 1,358,454 |
Schedule of components of income tax benefit | 2017 2016 Current Federal $ 37,361 $ 9,032 State (9,800) Total Current $ 37,361 $ (768) Deferred Federal (2,320,258) State (551,422) Total Deferred $ (2,871,680) $ (768) Income tax benefit $ (2,834,319) $ (768) |
Schedule of reconciliation between federal statutory income tax rate and effective income tax rate | 2017 2016 Federal statutory income tax $ 763,589 $ 461,613 State income tax, net of federal benefit 41,603 (6,468) Change in valuation allowance (3,580,148) (485,846) Stock based compensation 23,096 Other (59,363) 6,887 Income tax benefit $ (2,834,319) $ (768) |
Summary of the components of deferred income tax assets and liabilities | 2017 2016 Deferred Tax Assets: Compensation $ 162,571 $ 307,427 Loss on uncompleted contracts 58,409 180,521 Foreign currency translation adjustment 5,508 5,455 Other liabilities not currently deductible 364,569 265,455 Share based compensation awards 245,811 92,744 Net operating loss carryforward 4,093,968 4,950,542 Valuation allowance (1,537,726) (5,117,874) Total Deferred Tax Assets $ 3,393,110 $ 684,270 Deferred Tax Liabilities: Accelerated depreciation $ (521,430) $ (684,270) Total Deferred Tax Liabilities $ (521,430) $ (684,270) Net Deferred Tax Asset $ 2,871,680 $ |
Summary of carryforwards of net operating losses and tax credits | Begins to Amount Expire: Federal net operating losses $ 6,589,720 2026 Federal alternative minimum tax credits $ 122,578 Indefinite State net operating losses $ 26,022,238 2032 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
STOCK BASED COMPENSATION | |
Summary of information about options for the periods presented | Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2015 1,190,500 $ 1.049 $ 21,600 5.18 Granted 1,530,000 $ 0.110 Exercised (135,000) $ 0.080 Forfeited (187,000) $ 0.841 Outstanding at 3/31/2016 2,398,500 $ 0.711 $ 183,900 7.90 Granted 1,066,668 $ 0.516 250,000 Expired (440,000) $ 0.770 Forfeited (22,500) $ 0.912 Outstanding at 3/31/2017 3,002,668 $ 0.387 $ 1,246,600 5.72 Vested or expected to vest at 3/31/2017 3,002,668 $ 0.387 $ 1,246,600 5.72 Exercisable and vested at 3/31/2017 2,169,334 $ 0.434 $ 843,266 5.72 |
Summary of activity of stock options outstanding but not vested | Weighted Number of Average Options Exercise Price Outstanding at 3/31/2015 112,500 $ 0.664 Granted 1,530,000 $ 0.110 Forfeited (40,000) $ 0.670 Vested (574,166) $ 0.216 Outstanding at 3/31/2016 1,028,334 $ 0.117 Granted 1,066,668 $ 0.516 Forfeited (13,333) $ 0.670 Vested (1,248,335) $ 0.352 Outstanding at 3/31/2017 833,334 $ 0.266 |
Stock Based Compensation By 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 2,821,668 6.40 $ 0.31 1,988,334 $ 0.33 $1.01-$1.96 181,000 3.28 $ 1.60 181,000 $ 1.60 Totals 3,002,668 2,169,334 |
CONCENTRATION OF CREDIT RISK 36
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) - Customer Concentration Risk | 12 Months Ended |
Mar. 31, 2017 | |
Accounts Receivable | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | March 31, 2017 March 31, 2016 Customer Dollars Percent Dollars Percent A $ 961,463 51 % $ 834,501 41 % B $ 406,428 22 % $ 315,699 16 % C $ 187,410 10 % $ * * % D $ * * % $ 225,415 11 % *less than 10% of total |
Net sales | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | March 31, 2017 March 31, 2016 Customer Dollars Percent Dollars Percent A $ 7,515,795 41 % $ 3,519,258 21 % B $ 2,324,504 13 % $ 2,958,232 18 % C $ 2,166,171 12 % $ * * % D $ * * % $ 1,802,148 11 % *less than 10% of total |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
EARNINGS PER SHARE (EPS) | |
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations | March 31, March 31, 2017 2016 Basic EPS Net Income $ 5,080,169 $ 1,358,454 Weighted average shares 27,908,155 26,392,514 Basic Income per share $ 0.18 $ 0.05 Diluted EPS Net Income $ 5,080,169 $ 1,358,454 Dilutive effect of stock options 702,919 180,223 Diluted weighted average shares 28,611,074 26,572,737 Diluted Income per share $ 0.18 $ 0.05 |
SELECTED QUARTERLY INFORMATIO38
SELECTED QUARTERLY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
SELECTED QUARTERLY INFORMATION (UNAUDITED) | |
Schedule of unaudited quarterly data | First Second Third Fourth (in thousands, except for per share data) Quarter Quarter Quarter Quarter Year ended March 31, 2017 Net Sales $ 4,644 $ 3,656 $ 5,319 $ 4,931 Gross Profit $ 1,535 $ 1,474 $ 2,052 $ 1,035 Net Income $ 445 $ 546 $ 992 $ 3,097 Basic Income per share $ 0.02 $ 0.02 $ 0.03 $ 0.11 Diluted Income per share $ 0.02 $ 0.02 $ 0.03 $ 0.11 Year ended March 31, 2016 Net Sales $ 4,374 $ 4,103 $ 3,507 $ 4,869 Gross Profit $ 1,283 $ 1,408 $ 1,072 $ 1,731 Net Income $ 206 $ 255 $ 12 $ 885 Basic Income per share $ 0.01 $ 0.01 $ 0.00 $ 0.03 Diluted Income per share $ 0.01 $ 0.01 $ 0.00 $ 0.03 |
SIGNIFICANT ACCOUNTING POLICI39
SIGNIFICANT ACCOUNTING POLICIES - Cash, Accounts Receivables, and PP&E (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash and cash equivalents | ||
Cash deposit with a large national China-based bank | $ 14,805 | $ 8,115 |
Property, plant and equipment, net | ||
Interest cost capitalized | 7,158 | |
Derivative Financial Instruments | ||
Long-term Debt and Capital Lease Obligations | $ 4,874,721 | 3,735,410 |
Debt Issuance Costs, Noncurrent, Net | $ 47,342 | |
Machinery and equipment | Minimum | ||
Property, plant and equipment, net | ||
Estimated useful lives | 5 years | |
Machinery and equipment | Maximum | ||
Property, plant and equipment, net | ||
Estimated useful lives | 15 years | |
Buildings | ||
Property, plant and equipment, net | ||
Estimated useful lives | 30 years | |
Leasehold improvements | Minimum | ||
Property, plant and equipment, net | ||
Estimated useful lives | 2 years | |
Leasehold improvements | Maximum | ||
Property, plant and equipment, net | ||
Estimated useful lives | 5 years |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES - Derivatives, R&D, SG&A, Stock Based Compensation (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Research and Development | ||
Expense in connection with the design and development of certain pre-production prototypes and models | $ 0 | $ 0 |
Selling, General, and Administrative | ||
Salaries and related expenses | 2,795,376 | 2,234,830 |
Professional fees | 1,008,223 | 597,833 |
Other general and administrative | 533,388 | 552,346 |
Total Selling, General and Administrative | 4,336,987 | 3,385,009 |
Stock Based Compensation | ||
Stock based compensation cost | $ 1,164,221 | $ 88,041 |
PROPERTY, PLANT AND EQUIPMENT41
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment, Net | ||
Total property, plant and equipment | $ 12,505,927 | $ 11,846,832 |
Less: accumulated depreciation | (7,593,725) | (7,032,648) |
Total property, plant and equipment, net | 4,912,202 | 4,814,184 |
Depreciation expense | 689,293 | 747,553 |
Interest Costs Capitalized | 7,158 | |
LED Lighting Project | ||
Capital incentive grant | 146,000 | |
Financing component of LED lighting grant | 58,064 | |
Proceeds from lighting project grant | 0 | 204,064 |
LED Lighting | 58,064 | |
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 | 3,252,908 | 3,252,908 |
Machinery equipment, furniture and fixtures | ||
Property, Plant and Equipment, Net | ||
Total property, plant and equipment | 8,601,199 | 8,418,243 |
Equipment under capital leases | ||
Property, Plant and Equipment, Net | ||
Total property, plant and equipment | 54,376 | 65,568 |
Less: accumulated depreciation | (2,719) | (42,443) |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Net | ||
Total property, plant and equipment | $ 487,331 | $ 0 |
COSTS INCURRED ON UNCOMPLETED42
COSTS INCURRED ON UNCOMPLETED CONTRACTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cost incurred on uncompleted contracts | ||||||||||||
Cost incurred on uncompleted contracts, beginning balance | $ 5,491,605 | $ 4,068,488 | $ 5,491,605 | $ 4,068,488 | ||||||||
Total cost incurred on contracts during the year | 12,501,752 | 12,783,323 | ||||||||||
Less cost of sales, during the year | (12,454,542) | (11,360,206) | ||||||||||
Cost incurred on uncompleted contracts, ending balance | $ 5,538,815 | $ 5,491,605 | 5,538,815 | 5,491,605 | ||||||||
Billings on uncompleted contracts | ||||||||||||
Billings on uncompleted contracts, beginning balance | 3,095,963 | 2,060,244 | 3,095,963 | 2,060,244 | ||||||||
Plus: Total billings incurred on contracts, during the year | 18,896,305 | 17,889,671 | ||||||||||
Less: Contracts recognized as revenue, during the year | (4,931,000) | $ (5,319,000) | $ (3,656,000) | (4,644,000) | (4,869,000) | $ (3,507,000) | $ (4,103,000) | (4,374,000) | (18,550,674) | (16,853,952) | ||
Billings on uncompleted contracts, ending balance | 3,441,594 | 3,095,963 | 3,441,594 | 3,095,963 | ||||||||
Cost incurred on uncompleted contracts | ||||||||||||
Cost incurred on uncompleted contracts, ending balance | 5,538,815 | 5,491,605 | 5,491,605 | 4,068,488 | 5,491,605 | 5,491,605 | $ 5,538,815 | $ 5,491,605 | ||||
Billings on uncompleted contracts, ending balance | $ 3,441,594 | $ 3,095,963 | $ 3,095,963 | $ 2,060,244 | $ 3,095,963 | $ 3,095,963 | 3,441,594 | 3,095,963 | ||||
Costs incurred on uncompleted contracts, in excess of progress billings | 2,097,221 | 2,395,642 | ||||||||||
Billings in excess of costs | $ 642,831 | $ 1,629,018 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Payments advanced to suppliers | $ 107,591 | $ 182,305 |
Prepaid insurance | 229,132 | 236,300 |
Collateral deposits | 0 | 85,252 |
Other | 85,373 | 26,951 |
Total | $ 422,096 | $ 530,808 |
OTHER NONCURRENT ASSETS (Detail
OTHER NONCURRENT ASSETS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Noncurrent Assets [Line Items] | ||
Assets held for sale | $ 100,000 | $ 123,900 |
Prepaid loan costs | 0 | 52,444 |
Total | 100,000 | 176,344 |
Inventory Write-down | 43,900 | |
Assets Held-for-sale, Not Part of Disposal Group | 100,000 | 123,900 |
Machinery And Equipment [Member] | ||
Other Noncurrent Assets [Line Items] | ||
Assets held for sale | 100,000 | 123,900 |
Assets Held-for-sale, Not Part of Disposal Group | 100,000 | $ 123,900 |
Other Machinery and Equipment [Member] | ||
Other Noncurrent Assets [Line Items] | ||
Assets held for sale | 20,000 | |
Assets Held-for-sale, Not Part of Disposal Group | $ 20,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Accrued Expenses | ||
Accrued compensation | $ 568,766 | $ 872,114 |
Provision for contract losses | 148,699 | 464,785 |
Accrued interest expense | 9,155 | 296,344 |
Accrued professional fees | 142,648 | 117,981 |
Other | 24,147 | 53,261 |
Total | $ 893,415 | 1,804,485 |
Provision for estimated customer purchase agreement losses | $ 500,000 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Long-term Debt | ||
Total debt | $ 5,781,179 | $ 4,735,858 |
Less: debt issue costs unamortized | 188,977 | 47,342 |
Total debt, net | 5,592,202 | 4,688,516 |
Less: Current portion of long-term debt | 717,481 | 953,106 |
Total long-term debt, net | 4,874,721 | 3,735,410 |
Commerce Term Loan Due January 2022 | ||
Long-term Debt | ||
Total debt | 2,828,844 | 0 |
Peoples Equipment Loan Facility Due April 2021 | ||
Long-term Debt | ||
Total debt | 2,884,982 | 0 |
Utica Credit Loan Note due November 2018 | ||
Long-term Debt | ||
Total debt | 0 | 2,459,259 |
Revere Term Loan and Notes due January 2018 | ||
Long-term Debt | ||
Total debt | 0 | 2,250,000 |
Obligations under capital leases | ||
Long-term Debt | ||
Total debt | $ 67,353 | $ 26,599 |
DEBT - Commerce Bank & Trust Co
DEBT - Commerce Bank & Trust Company Loan Facility (Details) | Dec. 21, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 5,781,179 | $ 4,735,858 | |
Debt Issuance Costs, Net | $ 188,977 | $ 47,342 | |
Commerce Loan Agreement | |||
Debt Instrument [Line Items] | |||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.2 | ||
Debt Instrument Covenant Leverage Ratio Year One | 3.50 | ||
Debt Instrument Covenant Leverage Ratio Year Two | 3 | ||
Debt Instrument Covenant Leverage Ratio Year Three And Thereafter | 2.50 | ||
Debt Instrument Covenant Maximum Capital Expenditures To Be Incurred Year One | $ 1,000,000 | ||
Debt Instrument Covenant Maximum Capital Expenditures To Be Incurred Year Two | 2,500,000 | ||
Debt Instrument Covenant Maximum Capital Expenditures To Be Incurred Year Three | 2,500,000 | ||
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 | ||
Portion Of Proceeds From Issuance Of Long Term Debt Allocated To Corporate Expenses | $ 426,467 | ||
Debt Issuance Costs, Net | $ 77,198 | ||
Debt Instrument Covenant Leverage Ratio | 1 | ||
Debt Instrument, Debt Service Coverage Ratio | 2.86 | ||
Commerce Loan Agreement | 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 | ||
Debt and Capital Lease Obligations | $ 0 | ||
Commerce Loan Agreement | 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% | ||
Commerce Loan Agreement | 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 | ||
Commerce Loan Agreement | Ranor, Inc. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 2,850,000 | ||
Commerce Loan Agreement | Ranor, Inc. | Secured Term Loan | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | ||
Revere Term Loan and Notes due January 2018 | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | $ 2,394,875 |
DEBT - People's Capital and Lea
DEBT - People's Capital and Leasing Corp. Equipment Loan Facility (Details) | Oct. 04, 2016USD ($) | Apr. 26, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ 188,977 | $ 47,342 | ||
Repayments of long-term capital lease obligations | 1,187 | |||
Lease payment until expire | $ 720 | |||
People's Capital and Leasing Corp | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Debt Service Coverage Ratio | 2.86 | |||
LSA | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | $ 2,653,353 | |||
MLSA | People's Capital and Leasing Corp | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.5 | |||
Debt Instrument, Debt Service Coverage Ratio | 1.82 | |||
Debt Instrument, Holdback of Debt Amount | $ 182,763 | |||
Debt Issuance Costs, Net | $ 111,778 | |||
MLSA | People's Capital and Leasing Corp | Ranor, Inc. | ||||
Debt Instrument [Line Items] | ||||
Portion Of Proceeds From Issuance Of Long Term Debt Allocated To Corporate Expenses | $ 175,532 | |||
MLSA | People's Capital and Leasing Corp | Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 365,852 | |||
Debt Instrument, Term | 60 months | 60 months | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.90% | |||
Debt Instrument, Periodic Payment | $ 60,921 | |||
Debt Instrument, Prepayment Penalty, Term | 4 years | |||
Repayments of Long-term Debt | $ 7,399 | |||
MLSA | People's Capital and Leasing Corp | Secured Term Loan | Ranor, Inc. | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 3,011,648 |
DEBT - Term Loan and Security A
DEBT - Term Loan and Security Agreement (Details) - TLSA - USD ($) | 1 Months Ended | |||
Jan. 22, 2016 | Dec. 22, 2014 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt | ||||
Minimum cash balance requirement | $ 786,212 | |||
Minimum | ||||
Debt | ||||
Minimum cash balance requirement | 640,000 | |||
Maximum | ||||
Debt | ||||
Minimum cash balance requirement | $ 1,000,000 | |||
Ranor, Inc. | Revere Term Loan and Notes due January 2018 | ||||
Debt | ||||
Aggregate principal amount | $ 2,250,000 | |||
Ranor, Inc. | First Term Loan Note | ||||
Debt | ||||
Aggregate principal amount | $ 1,500,000 | |||
Interest rate (as a percent) | 12.00% | |||
Ranor, Inc. | Second Loan Note | ||||
Debt | ||||
Aggregate principal amount | $ 750,000 | |||
Interest rate (as a percent) | 12.00% | |||
Ranor, Inc. | Modification Agreement | ||||
Debt | ||||
Exit fee | $ 67,500 | |||
Ranor, Inc. | Second Modification Agreement | ||||
Debt | ||||
Interest rate (as a percent) | 10.00% | |||
Periodic payment of principal and accrued interest | $ 9,375 | |||
Ranor, Inc. | Loan agreement with bank | Interest Rate Swap | ||||
Debt | ||||
Breakage fee | $ 217,220 | |||
Ranor, Inc. | Bonds financing | ||||
Debt | ||||
Repayment of debt | $ 1,450,000 |
DEBT - Loan and Security Agreem
DEBT - Loan and Security Agreement (Details) - LSA - USD ($) | 1 Months Ended | |
May 30, 2014 | Mar. 31, 2016 | |
Debt | ||
Fees and associated costs | $ 240,000 | |
Loan proceeds retained for general corporate purposes | 1,270,000 | |
Loan agreement with bank | ||
Debt | ||
Repayment of debt | 2,650,000 | |
Ranor, Inc. | ||
Debt | ||
Maximum amount of debt that can be defaulted | 5,000 | |
Ranor, Inc. | Utica Credit Loan Note due November 2018 | ||
Debt | ||
Aggregate principal amount | $ 4,150,000 | |
Stated interest rate to be used as variable interest basis | 7.50% | |
Interest margin (as a percent) | 3.30% | |
Variable interest basis | six-month LIBOR | |
Effective interest rate at end of period (as a percent) | 10.80% |
DEBT - Capital Lease (Details)
DEBT - Capital Lease (Details) - USD ($) | 1 Months Ended | |
Jan. 31, 2017 | Mar. 31, 2017 | |
Maturities of the long-term debt, including the capital lease | ||
2,018 | $ 717,481 | |
2,019 | 799,744 | |
2,020 | 811,896 | |
2,021 | 935,893 | |
2,022 | $ 2,516,165 | |
Long-term obligations under capital leases | ||
Debt | ||
Capital lease term | 60 months | |
Capital lease interest rate (as a percent) | 7.90% | |
Capital lease monthly payment | $ 1,169 |
INCOME TAXES - Income Tax Benef
INCOME TAXES - Income Tax Benefit and Reconciliation to Federal Statutory Tax Rate (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
INCOME TAXES | ||||||||||
Income (loss) from operations before tax | $ 2,245,850 | $ 1,357,686 | ||||||||
Income tax benefit | (2,834,319) | (768) | ||||||||
Net income | $ 3,097,000 | $ 992,000 | $ 546,000 | $ 445,000 | $ 885,000 | $ 12,000 | $ 255,000 | $ 206,000 | 5,080,169 | 1,358,454 |
Current | ||||||||||
Federal | 37,361 | 9,032 | ||||||||
State | 0 | (9,800) | ||||||||
Total Current | 37,361 | (768) | ||||||||
Deferred | ||||||||||
Federal | (2,320,258) | 0 | ||||||||
State | (551,422) | 0 | ||||||||
Total Deferred | (2,871,680) | 0 | ||||||||
Income tax benefit | (2,834,319) | (768) | ||||||||
U.S. operations | ||||||||||
INCOME TAXES | ||||||||||
Income (loss) from operations before tax | 2,268,906 | 1,409,487 | ||||||||
Foreign operations | ||||||||||
INCOME TAXES | ||||||||||
Income (loss) from operations before tax | $ (23,056) | $ (51,801) |
INCOME TAXES - U.S. Federal Sta
INCOME TAXES - U.S. Federal Statutory Rate To Actual Tax Benefit For Income Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax [Line Items] | ||
Federal statutory income tax | $ 763,589 | $ 461,613 |
State income tax, net of federal benefit | 41,603 | (6,468) |
Change in valuation allowance | (3,580,148) | (485,846) |
Stock based compensation | 0 | 23,096 |
Other | (59,363) | 6,887 |
Income tax benefit | $ (2,834,319) | $ (768) |
INCOME TAXES - Deferred Taxes (
INCOME TAXES - Deferred Taxes (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred Tax Assets: | ||
Compensation | $ 162,571 | $ 307,427 |
Loss on uncompleted contracts | 58,409 | 180,521 |
Foreign currency translation adjustment | 5,508 | 5,455 |
Other liabilities not currently deductible | 364,569 | 265,455 |
Share based compensation awards | 245,811 | 92,744 |
Net operating loss carryforward | 4,093,968 | 4,950,542 |
Valuation allowance | (1,537,726) | (5,117,874) |
Total Deferred Tax Assets | 3,393,110 | 684,270 |
Deferred Tax Liabilities: | ||
Accelerated depreciation | (521,430) | (684,270) |
Total Deferred Tax Liabilities | (521,430) | (684,270) |
Net Deferred Tax Asset | $ 2,871,680 | $ 0 |
INCOME TAXES - Carryforwards an
INCOME TAXES - Carryforwards and Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in unrecognized tax benefits | ||
Deferred Tax Assets, Valuation Allowance | $ 1,537,726 | $ 5,117,874 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 3,600,000 | |
Valuation Allowance, Operating Loss Carryforwards [Member] | ||
Changes in unrecognized tax benefits | ||
Deferred Tax Assets, Valuation Allowance | 1,500,000 | |
Tax Years 2007 to Current | ||
Carryforwards of net operating losses and tax credits | ||
Net operating losses | 5,400,000 | |
State | ||
Carryforwards of net operating losses and tax credits | ||
Net operating losses | 26,022,238 | |
Federal | ||
Carryforwards of net operating losses and tax credits | ||
Net operating losses | 6,589,720 | |
Alternative minimum tax credits | 122,578 | |
Ranor, Inc. | Tax Years 2006 And Prior | ||
Carryforwards of net operating losses and tax credits | ||
Net operating losses | $ 1,200,000 |
PROFIT SHARING PLAN (Details)
PROFIT SHARING PLAN (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
PROFIT SHARING PLAN | ||
Matching contributions made by the company | $ 61,302 | |
Ranor, Inc. | ||
PROFIT SHARING PLAN | ||
Eligibility for employer matching contributions, period of service | 90 days | |
Matching contributions made by the company | $ 82,189 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) | 1 Months Ended | 12 Months Ended | |
Sep. 24, 2015shares | Mar. 31, 2017$ / sharesshares | Mar. 31, 2016shares | |
Capital stock | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Number of authorized common shares | 90,000,000 | 90,000,000 | |
Number of outstanding common shares | 28,824,593 | 27,324,593 | |
Minimum | |||
Capital stock | |||
Number of series of preferred stock | 1 | ||
Series A Convertible Preferred Stock | |||
Capital stock | |||
Number of series of preferred stock | 1 | ||
Conversion ratio prior to adjustment | 1 | ||
Conversion ratio | 1.3072 | ||
Effective conversion price (in dollars per share) | $ / shares | $ 0.218 | ||
Shares converted into common stock | 1,927,508 | 1,927,508 | |
Number of shares of common stock issued for converted preferred stock | 2,519,635 | 2,519,635 | |
Shares outstanding | 0 | 0 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary (Details) - USD ($) | Aug. 12, 2015 | Dec. 27, 2016 | Jan. 21, 2016 | Jul. 31, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 08, 2016 |
Share based compensation | |||||||
Options granted (in shares) | 1,066,668 | 1,530,000 | |||||
Exercise price of shares granted (in dollars per share) | $ 0.516 | $ 0.110 | |||||
Assumption used in valuation of stock options | |||||||
Yield term of U.S. Treasury issues on which risk free interest rate is based | 5 years | ||||||
Volatility rate, minimum (as a percent) | 110.20% | ||||||
Volatility rate, maximum (as a percent) | 123.80% | ||||||
Risk free interest rate, minimum (as a percent) | 1.93% | ||||||
Risk free interest rate, maximum (as a percent) | 2.07% | ||||||
Fair value of shares vested | $ 439,835 | ||||||
Stock based compensation cost | $ 1,164,221 | $ 88,041 | |||||
2016 Plan | |||||||
Assumption used in valuation of stock options | |||||||
Shares reserved | 5,000,000 | ||||||
Shares available for grant | 1,997,332 | ||||||
2006 Plan | |||||||
Assumption used in valuation of stock options | |||||||
Shares underlying awards outstanding | 1,958,500 | ||||||
Minimum | |||||||
Assumption used in valuation of stock options | |||||||
Expected term | 2 years | ||||||
Maximum | |||||||
Assumption used in valuation of stock options | |||||||
Expected term | 6 years | ||||||
Maximum | 2016 Plan | |||||||
Assumption used in valuation of stock options | |||||||
Shares available for grant | 5,000,000 | ||||||
Chief Executive Officer | |||||||
Share based compensation | |||||||
Options granted (in shares) | 1,000,000 | ||||||
Exercise price of shares granted (in dollars per share) | $ 0.08 | ||||||
Chief Executive Officer | 2016 Plan | |||||||
Assumption used in valuation of stock options | |||||||
Options exercisable, number of shares | 1,000,000 | ||||||
Exercise price (in dollars per share) | $ 0.50 | ||||||
Fair value of options | $ 418,995 | ||||||
Stock based compensation cost | 314,350 | ||||||
Unrecognized compensation cost related to stock options | $ 133,117 | ||||||
Chief Executive Officer | 2016 Plan | Awards vesting immediately | |||||||
Assumption used in valuation of stock options | |||||||
Options exercisable, number of shares | 666,667 | ||||||
Chief Executive Officer | 2016 Plan | Awards expected to vest on December 27,2017 | |||||||
Assumption used in valuation of stock options | |||||||
Options exercisable, number of shares | 333,333 | ||||||
Chief Executive Officer | 2006 Plan | |||||||
Assumption used in valuation of stock options | |||||||
Remaining weighted average contract life | 9 years | ||||||
Chief Financial Officer | |||||||
Share based compensation | |||||||
Options granted (in shares) | 500,000 | ||||||
Exercise price of shares granted (in dollars per share) | $ 0.17 | ||||||
Members of board | |||||||
Share based compensation | |||||||
Options granted (in shares) | 30,000 | 66,668 | |||||
Exercise price of shares granted (in dollars per share) | $ 0.10 | $ 0.75 | |||||
Assumption used in valuation of stock options | |||||||
Fair value of shares vested | $ 24,350 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Intrinsic value of options exercised | $ 10,800 | ||
Fair value of shares vested | $ 439,835 | ||
Number Of Options | |||
Outstanding at the beginning of the period (in shares) | 2,398,500 | 1,190,500 | |
Granted (in shares) | 1,066,668 | 1,530,000 | |
Exercised (in shares) | (135,000) | ||
Expired (in shares) | (440,000) | ||
Forfeited (in shares) | (22,500) | (187,000) | |
Outstanding at the end of the period (in shares) | 3,002,668 | 2,398,500 | 1,190,500 |
Vested or expected to vest at the end of the period (in shares) | 3,002,668 | ||
Exercisable and vested at the end of the period (in shares) | 2,169,334 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0.711 | $ 1.049 | |
Granted (in dollars per share) | 0.516 | 0.110 | |
Exercised (in dollars per share) | 0.080 | ||
Expired (in dollars per share) | 0.770 | ||
Forfeited (in dollars per share) | 0.912 | 0.841 | |
Outstanding at the end of the period (in dollars per share) | 0.387 | $ 0.711 | $ 1.049 |
Vested or expected to vest at the end of the period (in dollars per share) | 0.387 | ||
Exercisable and vested at the end of the period (in dollars per share) | $ 0.434 | ||
Aggregate Intrinsic Value | |||
Outstanding at the beginning of the period | $ 183,900 | $ 21,600 | |
Granted (in values) | 250,000 | ||
Outstanding at the end of the period | 1,246,600 | $ 183,900 | $ 21,600 |
Vested or expected to vest at the end of the period | 1,246,600 | ||
Exercisable and vested at the end of the period | $ 843,266 | ||
Weighted Average Remaining Contractual Life | |||
Outstanding at the end of the period | 5 years 8 months 19 days | 7 years 10 months 24 days | 5 years 2 months 5 days |
Vested or expected to vest at the end of the period | 5 years 8 months 19 days | ||
Exercisable and vested at the end of the period | 5 years 8 months 19 days |
STOCK BASED COMPENSATION - St60
STOCK BASED COMPENSATION - Stock Options Outstanding (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock options outstanding but not vested, Number of Options | ||
Outstanding at the beginning of the period (in shares) | 1,028,334 | 112,500 |
Granted (in shares) | 1,066,668 | 1,530,000 |
Forfeited (in shares) | (13,333) | (40,000) |
Vested (in shares) | (1,248,335) | (574,166) |
Outstanding at the end of the period (in shares) | 833,334 | 1,028,334 |
Stock options outstanding but not vested, Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 0.117 | $ 0.664 |
Granted (in dollars per share) | 0.516 | 0.110 |
Forfeited (in dollars per share) | 0.670 | 0.670 |
Vested (in dollars per share) | 0.352 | 0.216 |
Outstanding at the end of the period (in dollars per share) | $ 0.266 | $ 0.117 |
STOCK BASED COMPENSATION - St61
STOCK BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details) | 12 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | shares | 3,002,668 |
Options Exercisable | shares | 2,169,334 |
Range One | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | $ 0.01 |
Exercise Price, Upper Range | $ 1 |
Options Outstanding | shares | 2,821,668 |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.31 |
Options Exercisable | shares | 1,988,334 |
Options Exercisable, Weighted Average Exercise Price | $ 0.33 |
Range Two | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | 1.01 |
Exercise Price, Upper Range | $ 1.96 |
Options Outstanding | shares | 181,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 3 months 11 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.6 |
Options Exercisable | shares | 181,000 |
Options Exercisable, Weighted Average Exercise Price | $ 1.6 |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock Awards (Details) - Restricted Stock Units (RSUs) [Member] | Nov. 10, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 780,000 |
Leonard Anthony [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 600,000 |
Philip A. Dur [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 250,000 |
Michael R. Holly [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 250,000 |
Robert G. Isaman [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 200,000 |
Andrew A. Levy [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Shares, Issued for Services | 200,000 |
CONCENTRATION OF CREDIT RISK 63
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |||||
Concentration of credit risk and major customers | ||||||||||||||
Accounts receivable | $ 1,870,672 | $ 2,022,480 | $ 1,870,672 | $ 2,022,480 | ||||||||||
Net sales | 4,931,000 | $ 5,319,000 | $ 3,656,000 | $ 4,644,000 | 4,869,000 | $ 3,507,000 | $ 4,103,000 | $ 4,374,000 | $ 18,550,674 | 16,853,952 | ||||
Accounts Receivable | Customer Concentration Risk | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Number of major customers | 3 | |||||||||||||
Concentration risk percentage | 83.00% | |||||||||||||
Accounts Receivable | Customer Concentration Risk | Customer A | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Accounts receivable | 961,463 | 834,501 | $ 961,463 | $ 834,501 | ||||||||||
Concentration risk percentage | 51.00% | 41.00% | ||||||||||||
Accounts Receivable | Customer Concentration Risk | Customer B | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Accounts receivable | 406,428 | 315,699 | $ 406,428 | $ 315,699 | ||||||||||
Concentration risk percentage | 22.00% | 16.00% | ||||||||||||
Accounts Receivable | Customer Concentration Risk | Customer C | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Accounts receivable | 187,410 | [1] | $ 187,410 | [1] | ||||||||||
Concentration risk percentage | 10.00% | [1] | ||||||||||||
Accounts Receivable | Customer Concentration Risk | Customer D | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Accounts receivable | [1] | $ 225,415 | [1] | $ 225,415 | ||||||||||
Concentration risk percentage | [1] | 11.00% | ||||||||||||
Net sales | Customer Concentration Risk | Customer A | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Net sales | $ 7,515,795 | $ 3,519,258 | ||||||||||||
Concentration risk percentage | 41.00% | 21.00% | ||||||||||||
Net sales | Customer Concentration Risk | Customer B | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Net sales | $ 2,324,504 | $ 2,958,232 | ||||||||||||
Concentration risk percentage | 13.00% | 18.00% | ||||||||||||
Net sales | Customer Concentration Risk | Customer C | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Net sales | $ 2,166,171 | [1] | ||||||||||||
Concentration risk percentage | 12.00% | [1] | ||||||||||||
Net sales | Customer Concentration Risk | Customer D | ||||||||||||||
Concentration of credit risk and major customers | ||||||||||||||
Net sales | [1] | $ 1,802,148 | ||||||||||||
Concentration risk percentage | [1] | 11.00% | ||||||||||||
[1] | less than 10% of total |
COMMITMENTS (Details)
COMMITMENTS (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016ft² | Mar. 31, 2017USD ($)ft² | Mar. 31, 2016USD ($) | |
Commitments | |||
Rent expense for operating lease | $ 3,738 | $ 21,206 | |
Future minimum lease payments for property and equipment under non-cancellable operating leases | |||
Future minimum lease payments required under non-cancellable operating leases | 1,983 | ||
Contractual commitments | |||
Purchase obligations outstanding to purchase raw materials and supplies at fixed prices | 900,000 | ||
Employment agreements | |||
Aggregate annual commitment for future executive salaries during the next fiscal year | 800,000 | ||
Aggregate commitment for vacation and holiday pay for non-executive employees | $ 400,000 | ||
GPX Wayne | |||
Commitments | |||
Area of land leased (in square feet) | ft² | 1,100 | ||
Wuxi, China | |||
Commitments | |||
Area of land leased (in square feet) | ft² | 1,000 | ||
Annual rental cost | $ 4,000 |
CLAIM ASSIGNMENT SETTLEMENT (De
CLAIM ASSIGNMENT SETTLEMENT (Details) - USD ($) | Nov. 08, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Apr. 21, 2015 | Apr. 17, 2015 |
Claim Assignment Settlement | ||||||
Gain (Loss) on Sale of Accounts Receivable | $ 1,122,287 | $ 1,122,287 | $ 0 | |||
Ranor, Inc. | Assignment of Claim Agreement | ||||||
Claim Assignment Settlement | ||||||
Unsecured claim sold and assigned | $ 3,740,956 | |||||
Ranor, Inc. | Assignment of Claim Agreement | Maximum | ||||||
Claim Assignment Settlement | ||||||
Additional amount to be received from the sale and assignment of unsecured claim | $ 614,452 | |||||
Ranor, Inc. | Assignment of Claim Agreement | Current Liabilities | ||||||
Claim Assignment Settlement | ||||||
Initial amount received from the sale and assignment of unsecured claim | $ 507,835 | |||||
Ranor, Inc. | Citigroup Financial Products Inc | Assignment of Claim Agreement | ||||||
Claim Assignment Settlement | ||||||
Proceeds received from the sale and assignment of unsecured claim | $ 614,452 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Basic EPS | ||||||||||
Net Income | $ 3,097,000 | $ 992,000 | $ 546,000 | $ 445,000 | $ 885,000 | $ 12,000 | $ 255,000 | $ 206,000 | $ 5,080,169 | $ 1,358,454 |
Weighted average shares | 27,908,155 | 26,392,514 | ||||||||
Basic Income per share (in dollars per share) | $ 0.11 | $ 0.03 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0 | $ 0.01 | $ 0.01 | $ 0.18 | $ 0.05 |
Diluted EPS | ||||||||||
Net Income | $ 3,097,000 | $ 992,000 | $ 546,000 | $ 445,000 | $ 885,000 | $ 12,000 | $ 255,000 | $ 206,000 | $ 5,080,169 | $ 1,358,454 |
Dilutive effect of stock options | 702,919 | 180,223 | ||||||||
Diluted weighted average shares | 28,611,074 | 26,572,737 | ||||||||
Diluted Income per share (in dollars per share) | $ 0.11 | $ 0.03 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0 | $ 0.01 | $ 0.01 | $ 0.18 | $ 0.05 |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,472,668 | 1,368,500 |
SELECTED QUARTERLY INFORMATIO67
SELECTED QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Unaudited quarterly data | ||||||||||
Net Sales | $ 4,931,000 | $ 5,319,000 | $ 3,656,000 | $ 4,644,000 | $ 4,869,000 | $ 3,507,000 | $ 4,103,000 | $ 4,374,000 | $ 18,550,674 | $ 16,853,952 |
Gross Profit | 1,035,000 | 2,052,000 | 1,474,000 | 1,535,000 | 1,731,000 | 1,072,000 | 1,408,000 | 1,283,000 | 6,096,132 | 5,493,746 |
Net Income | $ 3,097,000 | $ 992,000 | $ 546,000 | $ 445,000 | $ 885,000 | $ 12,000 | $ 255,000 | $ 206,000 | $ 5,080,169 | $ 1,358,454 |
Basic Income per share (in dollars per share) | $ 0.11 | $ 0.03 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0 | $ 0.01 | $ 0.01 | $ 0.18 | $ 0.05 |
Diluted Income per share (in dollars per share) | $ 0.11 | $ 0.03 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0 | $ 0.01 | $ 0.01 | $ 0.18 | $ 0.05 |