Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Sep. 30, 2017 | Nov. 07, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | TECHPRECISION CORP | |
Entity Central Index Key | 1,328,792 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | TPCS | |
Entity Common Stock, Shares Outstanding | 28,824,593 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,489,626 | $ 3,066,156 |
Accounts receivable, net | 2,175,822 | 1,870,672 |
Costs incurred on uncompleted contracts, in excess of progress billings | 3,213,329 | 2,097,221 |
Inventories - raw materials | 200,787 | 141,792 |
Other current assets | 546,633 | 422,096 |
Total current assets | 8,626,197 | 7,597,937 |
Property, plant and equipment, net | 5,369,167 | 4,912,202 |
Deferred income taxes | 2,364,303 | 2,871,680 |
Other noncurrent assets, net | 68,625 | 100,000 |
Total assets | 16,428,292 | 15,481,819 |
Current liabilities: | ||
Accounts payable | 380,318 | 365,308 |
Accrued expenses | 1,008,717 | 893,415 |
Billings on uncompleted contracts, in excess of related costs | 827,573 | 642,831 |
Current portion of long-term debt | 742,292 | 717,481 |
Total current liabilities | 2,958,900 | 2,619,035 |
Long-term debt, including capital leases | 4,546,078 | 4,874,721 |
Noncurrent accrued expenses | 8,064 | 17,742 |
Commitments and contingent liabilities (see Note 14) | ||
Stockholders’ Equity: | ||
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 28,824,593 shares issued and outstanding at September 30 and March 31, 2017 | 2,882 | 2,882 |
Additional paid in capital | 8,409,517 | 8,258,820 |
Accumulated other comprehensive income | 20,872 | 19,328 |
Retained earnings (accumulated deficit) | 481,979 | (310,709) |
Total stockholders’ equity | 8,915,250 | 7,970,321 |
Total liabilities and stockholders’ equity | $ 16,428,292 | $ 15,481,819 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Mar. 31, 2017 |
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 | 28,824,593 |
Common stock, shares outstanding | 28,824,593 | 28,824,593 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 4,588,894 | $ 3,656,163 | $ 10,419,280 | $ 8,300,968 |
Cost of sales | 3,155,893 | 2,182,547 | 7,245,692 | 5,291,959 |
Gross profit | 1,433,001 | 1,473,616 | 3,173,588 | 3,009,009 |
Selling, general and administrative | 720,341 | 739,585 | 1,640,100 | 1,627,763 |
Income from operations | 712,660 | 734,031 | 1,533,488 | 1,381,246 |
Other income | 1,456 | 6,824 | 1,547 | 7,575 |
Interest expense | (100,414) | (183,268) | (209,196) | (376,478) |
Total other expense, net | (98,958) | (176,444) | (207,649) | (368,903) |
Income before income taxes | 613,702 | 557,587 | 1,325,839 | 1,012,343 |
Income tax expense | 245,516 | 11,505 | 533,151 | 20,958 |
Net income | 368,186 | 546,082 | 792,688 | 991,385 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 1,854 | (281) | 2,586 | (1,223) |
Other comprehensive income (loss), before tax | 1,854 | (281) | 2,586 | (1,223) |
Income tax expense on other comprehensive income | 746 | 0 | 1,042 | 0 |
Other comprehensive income (loss), net of tax | 1,108 | (281) | 1,544 | (1,223) |
Comprehensive income | $ 369,294 | $ 545,801 | $ 794,232 | $ 990,162 |
Net income per share (basic) (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.04 |
Net income per share (diluted) (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.04 |
Weighted average number of shares outstanding (basic) (in shares) | 28,824,593 | 27,324,593 | 28,824,593 | 27,324,593 |
Weighted average number of shares outstanding (diluted) (in shares) | 29,730,456 | 28,020,795 | 29,751,219 | 27,936,098 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 792,688 | $ 991,385 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 351,422 | 353,488 |
Amortization of debt issue costs | 37,038 | 90,049 |
Stock based compensation expense | 150,697 | 22,910 |
Change in contract losses | 29,139 | (40,532) |
Deferred income taxes | 507,376 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (305,150) | 1,118,019 |
Costs on uncompleted contracts, in excess of progress billings | (1,116,108) | 240,431 |
Inventories - raw materials | (58,995) | 3,005 |
Other current assets | (124,537) | 152,051 |
Other noncurrent assets and liabilities | (9,678) | (819) |
Accounts payable | 15,010 | (406,463) |
Accrued expenses | 88,319 | (170,369) |
Accrued taxes | 0 | 20,958 |
Billings on uncompleted contracts, in excess of related costs | 184,742 | (945,358) |
Net cash provided by operating activities | 541,963 | 1,428,755 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of equipment | 80,000 | 0 |
Deposit for fixed assets | (36,987) | 0 |
Purchases of property, plant and equipment | (808,386) | (114,856) |
Net cash used in investing activities | (765,373) | (114,856) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Deferred loan costs | 0 | (145,995) |
Borrowings of long-term debt | 0 | 3,011,648 |
Repayment of long-term debt | (352,509) | (2,673,432) |
Net cash (used in) provided by financing activities | (352,509) | 192,221 |
Effect of exchange rate on cash and cash equivalents | (611) | 42 |
Net (decrease) increase in cash and cash equivalents | (576,530) | 1,506,162 |
Cash and cash equivalents, beginning of period | 3,066,156 | 1,332,166 |
Cash and cash equivalents, end of period | 2,489,626 | 2,838,328 |
Cash paid during the period for: | ||
Interest | 185,415 | 479,179 |
Income taxes | $ 30,000 | $ 20,000 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Sep. 30, 2017 | |
DESCRIPTION OF BUSINESS | |
DESCRIPTION OF BUSINESS | NOTE 1 - DESCRIPTION OF BUSINESS TechPrecision Corporation, or TechPrecision, is the parent company of Ranor, Inc., or Ranor, a Delaware corporation and Wuxi Critical Mechanical Components Co., Ltd., or WCMC, a wholly foreign owned enterprise (WFOE) organized under the laws of the People’s Republic of China. 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. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017, the condensed consolidated statements of operations and comprehensive income for the three and six months ended September 30, 2017 and 2016, and the condensed consolidated statements of cash flows for the six months ended September 30, 2017 and 2016 are unaudited, but, in the opinion of management, include all adjustments that are necessary for a fair presentation of our financial statements for interim periods in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The results of operations for an interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. The Notes to Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with our consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2017, or the 2017 Form 10-K, filed with the SEC on June 29, 2017. Significant Accounting Policies Our significant accounting policies are set forth in detail in Note 2 to the 2017 Form 10-K. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | NOTE 3 - NEW ACCOUNTING STANDARDS New Accounting Standards Recently Adopted In March 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting, In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, Issued Standards Not Yet Adopted In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, 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 financial statements and disclosures by comparing our current revenue recognition policy with the requirements of the new standard. A review of contracts with our largest customers which represents more than 80 The new 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 plan to adopt the new standard on April 1, 2018. 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 February 2016, the FASB issued ASU 2016-02, Leases In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 4 - PROPERTY, PLANT AND EQUIPMENT, NET September 30, 2017 March 31, 2017 Land $ 110,113 $ 110,113 Building and improvements 3,252,908 3,252,908 Machinery equipment, furniture and fixtures 9,896,917 8,601,199 Construction in progress -- 487,331 Equipment under capital leases 54,376 54,376 Total property, plant and equipment 13,314,314 12,505,927 Less: accumulated depreciation (7,945,147) (7,593,725) Total property, plant and equipment, net $ 5,369,167 $ 4,912,202 Depreciation expense, which includes amortization of equipment under capital leases, for the three and six months ended September 30, 2017 and 2016 was $ 179,808 351,422 177,438 353,488 Capitalized leases were $ 54,376 We capitalize interest 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 three and six months ended September 30, 2017 was $ 8,590 13,257 |
COSTS INCURRED ON UNCOMPLETED C
COSTS INCURRED ON UNCOMPLETED CONTRACTS | 6 Months Ended |
Sep. 30, 2017 | |
COSTS INCURRED ON UNCOMPLETED CONTRACTS | |
COSTS INCURRED ON UNCOMPLETED CONTRACTS | NOTE 5 - COSTS INCURRED ON UNCOMPLETED CONTRACTS The following table sets forth information as to costs incurred on uncompleted contracts as of: September 30, 2017 March 31, 2017 Cost incurred on uncompleted contracts, beginning balance $ 5,538,815 $ 5,491,605 Total cost incurred on contracts during the year 6,351,959 12,501,752 Less: cost of sales, during the year (7,245,692) (12,454,542) Cost incurred on uncompleted contracts, ending balance $ 4,645,082 $ 5,538,815 Billings on uncompleted contracts, beginning balance $ 3,441,594 $ 3,095,963 Total billings incurred on contracts, during the year 8,409,439 18,896,305 Less: Contracts recognized as revenue, during the year (10,419,280) (18,550,674) Billings on uncompleted contracts, ending balance $ 1,431,753 $ 3,441,594 Cost incurred on uncompleted contracts, ending balance $ 4,645,082 $ 5,538,815 Billings on uncompleted contracts, ending balance 1,431,753 3,441,594 Costs incurred on uncompleted contracts, in excess of progress billings $ 3,213,329 $ 2,097,221 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 September 30, 2017 and March 31, 2017, we had billings in excess of costs totaling $ 827,573 642,831 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 6 Months Ended |
Sep. 30, 2017 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | NOTE 6 - OTHER CURRENT ASSETS Other current assets included the following as of: September 30, 2017 March 31, 2017 Payments advanced to suppliers $ 190,163 $ 107,591 Prepaid insurance 226,174 229,132 Other 130,296 85,373 Total $ 546,633 $ 422,096 |
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS | 6 Months Ended |
Sep. 30, 2017 | |
OTHER NONCURRENT ASSETS | |
OTHER NONCURRENT ASSETS | NOTE 7 - OTHER NONCURRENT ASSETS September 30, 2017 March 31, 2017 Assets held for sale $ 20,000 $ 100,000 Deposit for fixed assets 36,987 -- Prepaid loan costs 11,638 -- Total $ 68,625 $ 100,000 At September 30, 2017 and March 31, 2017, we classified certain machinery and equipment of $ 20,000 100,000 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 6 Months Ended |
Sep. 30, 2017 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | NOTE 8 - ACCRUED EXPENSES Accrued expenses included the following as of: September 30, 2017 March 31, 2017 Accrued compensation $ 551,128 $ 568,766 Provision for contract losses 177,838 148,699 Accrued professional fees 141,139 142,648 Accrued project costs 97,525 -- Other 41,087 33,302 Total $ 1,008,717 $ 893,415 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. |
DEBT
DEBT | 6 Months Ended |
Sep. 30, 2017 | |
DEBT | |
DEBT | NOTE 9 - DEBT September 30, 2017 March 31, 2017 Commerce Term Loan due January 2022 $ 2,788,161 $ 2,828,844 People’s Equipment Loan Facility due April 2021 2,584,086 2,884,982 Obligations under capital leases 56,423 67,353 Total debt $ 5,428,670 $ 5,781,179 Less: debt issue costs unamortized $ 140,300 $ 188,977 Total debt, net $ 5,288,370 $ 5,592,202 Less: Current portion of long-term debt $ 742,292 $ 717,481 Total long-term debt, net $ 4,546,078 $ 4,874,721 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 19,260 5.21 45 1,000,000 80 25 250,000 one-month LIBOR plus 275 basis points 52,594 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 1.0 3.00 2.50 2,500,000 2,500,000 1,500,000 0.75 365 3.07 3.40 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, or the MLSA, with People’s Capital and Leasing Corp., or People’s. 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 87,706 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 1,187 720 Collateral securing the above obligations comprises all personal and real property of TechPrecision and Ranor, including cash, accounts receivable, inventories, equipment, financial and intangible assets. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2017 | |
INCOME TAXES | |
INCOME TAXES | NOTE 10 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes 533,151 20,958 40.2 2.1 The valuation allowance on deferred tax assets at September 30, 2017 and March 31, 2017 was approximately $ 1.5 We regularly assess the effects of various factors to determine the adequacy of our provision for income taxes. For example, our future effective tax rate would be affected if earnings were lower than anticipated in tax jurisdictions where we have lower statutory rates and higher than anticipated in tax jurisdictions where we have higher statutory rates, by changes in the valuation of our deferred tax assets and liabilities, or by changes in tax laws, regulations, accounting principles or interpretations thereof. |
PROFIT SHARING PLAN
PROFIT SHARING PLAN | 6 Months Ended |
Sep. 30, 2017 | |
PROFIT SHARING PLAN | |
PROFIT SHARING PLAN | NOTE 11 - PROFIT SHARING PLAN Ranor has a 401(k) profit sharing plan that covers substantially all Ranor employees who have completed 90 40,850 39,653 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2017 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 - STOCK BASED COMPENSATION Our board of directors, upon the recommendation of the previously constituted compensation committee of our board of directors, approved the 2016 TechPrecision Equity Incentive Plan, or the 2016 Plan, on November 10, 2016. Our stockholders approved the 2016 Plan at the Company’s Annual Meeting of Stockholders on December 8, 2016, and it applies to awards granted after that date. The 2016 Plan provides for a share reserve of 5,000,000 On April 4, 2017, we granted stock options to members of our board of directors to collectively purchase 200,000 0.74 0.60 84,138 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 were 110.1 1.88 1,803,332 Number Of Weighted Aggregate Weighted Options Exercise Price Value (in years) Outstanding at 3/31/2017 3,002,668 $ 0.387 $ 1,246,600 5.72 Granted 200,000 $ 0.740 -- -- Forfeited (6,000) $ 1.960 -- -- Outstanding at 9/30/2017 3,196,668 $ 0.406 $ 1,084,600 6.22 Vested or expected to vest at 9/30/2017 3,196,668 $ 0.406 $ 1,084,600 6.22 Exercisable and vested at 9/30/2017 2,576,668 $ 0.394 $ 934,600 6.22 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 second quarter of fiscal 2018 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 September 30, 2017. This amount changes based on the fair market value of the Company’s common stock. The following table summarizes the status of our stock options outstanding but not vested for the six month period ended September 30, 2017: Number of Weighted Outstanding at 3/31/2017 833,334 $ 0.266 Granted 200,000 $ 0.740 Vested (413,334) $ 0.208 Outstanding at 9/30/2017 620,000 $ 0.458 74,747 Range of Exercise Prices: Options Weighted Weighted Options Weighted $0.01-$1.00 3,021,668 6.92 $ 0.34 2,401,668 $ 0.31 $1.01-$1.96 175,000 2.84 $ 1.59 175,000 $ 1.59 Totals 3,196,668 2,576,668 |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | 6 Months Ended |
Sep. 30, 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 September 30, 2017, there were accounts receivable balances outstanding from two customers comprising 82 September 30, 2017 March 31, 2017 Customer Dollars Percent Dollars Percent A $ 1,478,882 68 % $ * * % B $ 308,638 14 % $ 961,463 51 % C $ * * % $ 406,428 22 % D $ * * % $ 187,410 10 % *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 in the periods presented: Three months ended Three months ended Six months ended Six months ended Customer Dollars Percent Dollars Percent Dollars Percent Dollars Percent A $ 2,061,276 45 % $ 383,253 10 % $ 4,950,432 48 % $ * * % B $ 746,877 16 % $ * * % $ 2,330,088 22 % $ 1,457,222 18 % C $ * * % $ * * % $ 1,079,832 10 % $ * * % D $ * * % $ 1,998,724 55 % * * % $ 3,285,065 40 % E $ * * % $ * * % * * % $ 1,741,084 21 % *less than 10% of total |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
Sep. 30, 2017 | |
COMMITMENTS | |
COMMITMENTS | NOTE 14 - COMMITMENTS 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 September 30, 2017 for future executive salaries during the next twelve months was approximately $ 0.5 0.3 |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 6 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | NOTE 15 - EARNINGS PER SHARE (EPS) Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260: Three months ended Three months ended Six months ended Six months ended Basic EPS Net Income $ 368,186 $ 546,082 $ 792,688 $ 991,385 Weighted average shares 28,824,593 27,324,593 28,824,593 27,324,593 Basic Income per share $ 0.01 $ 0.02 $ 0.03 $ 0.04 Diluted EPS Net Income $ 368,186 $ 546,082 $ 792,688 $ 991,385 Dilutive effect of stock options 905,863 696,202 926,626 611,505 Diluted weighted average shares 29,730,456 28,020,795 29,751,219 27,936,098 Diluted Income per share $ 0.01 $ 0.02 $ 0.03 $ 0.04 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. For the three and six months ended September 30, 2017, there were 596,668 496,668 428,500 |
RECLASSIFICATION OF PRIOR YEAR
RECLASSIFICATION OF PRIOR YEAR PRESENTATION | 6 Months Ended |
Sep. 30, 2017 | |
DESCRIPTION OF BUSINESS | |
RECLASSIFICATION OF PRIOR YEAR PRESENTATION | NOTE 16 RECLASSIFICATION OF PRIOR YEAR PRESENTATION Certain prior year amounts have been reclassified for consistency with the current year presentation. A reclassification has been made to the condensed consolidated balance sheets for fiscal year ended March 31, 2017, to offset deferred taxes within the same tax jurisdiction. This reclassification had no effect on the reported results of operations or the consolidated statements of cash flows. |
PROPERTY, PLANT AND EQUIPMENT22
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property, plant and equipment, net | Property, plant and equipment, net consisted of the following as of: September 30, 2017 March 31, 2017 Land $ 110,113 $ 110,113 Building and improvements 3,252,908 3,252,908 Machinery equipment, furniture and fixtures 9,896,917 8,601,199 Construction in progress -- 487,331 Equipment under capital leases 54,376 54,376 Total property, plant and equipment 13,314,314 12,505,927 Less: accumulated depreciation (7,945,147) (7,593,725) Total property, plant and equipment, net $ 5,369,167 $ 4,912,202 |
COSTS INCURRED ON UNCOMPLETED23
COSTS INCURRED ON UNCOMPLETED CONTRACTS (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
COSTS INCURRED ON UNCOMPLETED CONTRACTS | |
Schedule of costs incurred on uncompleted contracts | The following table sets forth information as to costs incurred on uncompleted contracts as of: September 30, 2017 March 31, 2017 Cost incurred on uncompleted contracts, beginning balance $ 5,538,815 $ 5,491,605 Total cost incurred on contracts during the year 6,351,959 12,501,752 Less: cost of sales, during the year (7,245,692) (12,454,542) Cost incurred on uncompleted contracts, ending balance $ 4,645,082 $ 5,538,815 Billings on uncompleted contracts, beginning balance $ 3,441,594 $ 3,095,963 Total billings incurred on contracts, during the year 8,409,439 18,896,305 Less: Contracts recognized as revenue, during the year (10,419,280) (18,550,674) Billings on uncompleted contracts, ending balance $ 1,431,753 $ 3,441,594 Cost incurred on uncompleted contracts, ending balance $ 4,645,082 $ 5,538,815 Billings on uncompleted contracts, ending balance 1,431,753 3,441,594 Costs incurred on uncompleted contracts, in excess of progress billings $ 3,213,329 $ 2,097,221 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | Other current assets included the following as of: September 30, 2017 March 31, 2017 Payments advanced to suppliers $ 190,163 $ 107,591 Prepaid insurance 226,174 229,132 Other 130,296 85,373 Total $ 546,633 $ 422,096 |
OTHER NONCURRENT ASSETS (Tables
OTHER NONCURRENT ASSETS (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
OTHER NONCURRENT ASSETS | |
Schedule of other noncurrent assets | Other noncurrent assets included the following as of: September 30, 2017 March 31, 2017 Assets held for sale $ 20,000 $ 100,000 Deposit for fixed assets 36,987 -- Prepaid loan costs 11,638 -- Total $ 68,625 $ 100,000 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | Accrued expenses included the following as of: September 30, 2017 March 31, 2017 Accrued compensation $ 551,128 $ 568,766 Provision for contract losses 177,838 148,699 Accrued professional fees 141,139 142,648 Accrued project costs 97,525 -- Other 41,087 33,302 Total $ 1,008,717 $ 893,415 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
DEBT | |
Schedule of outstanding debt obligations | Long-term debt included the following as of: September 30, 2017 March 31, 2017 Commerce Term Loan due January 2022 $ 2,788,161 $ 2,828,844 People’s Equipment Loan Facility due April 2021 2,584,086 2,884,982 Obligations under capital leases 56,423 67,353 Total debt $ 5,428,670 $ 5,781,179 Less: debt issue costs unamortized $ 140,300 $ 188,977 Total debt, net $ 5,288,370 $ 5,592,202 Less: Current portion of long-term debt $ 742,292 $ 717,481 Total long-term debt, net $ 4,546,078 $ 4,874,721 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
STOCK BASED COMPENSATION | |
Summary of information about options for the periods presented | The following table summarizes information about options for the six months ended September 30, 2017: Number Of Weighted Aggregate Weighted Options Exercise Price Value (in years) Outstanding at 3/31/2017 3,002,668 $ 0.387 $ 1,246,600 5.72 Granted 200,000 $ 0.740 -- -- Forfeited (6,000) $ 1.960 -- -- Outstanding at 9/30/2017 3,196,668 $ 0.406 $ 1,084,600 6.22 Vested or expected to vest at 9/30/2017 3,196,668 $ 0.406 $ 1,084,600 6.22 Exercisable and vested at 9/30/2017 2,576,668 $ 0.394 $ 934,600 6.22 |
Summary of activity of stock options outstanding but not vested | The following table summarizes the status of our stock options outstanding but not vested for the six month period ended September 30, 2017: Number of Weighted Outstanding at 3/31/2017 833,334 $ 0.266 Granted 200,000 $ 0.740 Vested (413,334) $ 0.208 Outstanding at 9/30/2017 620,000 $ 0.458 |
Stock Based Compensation By Exercise Price Range | 74,747 Range of Exercise Prices: Options Weighted Weighted Options Weighted $0.01-$1.00 3,021,668 6.92 $ 0.34 2,401,668 $ 0.31 $1.01-$1.96 175,000 2.84 $ 1.59 175,000 $ 1.59 Totals 3,196,668 2,576,668 |
CONCENTRATION OF CREDIT RISK 29
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Accounts Receivable | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | September 30, 2017 March 31, 2017 Customer Dollars Percent Dollars Percent A $ 1,478,882 68 % $ * * % B $ 308,638 14 % $ 961,463 51 % C $ * * % $ 406,428 22 % D $ * * % $ 187,410 10 % *less than 10% of total |
Net sales | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | Three months ended Three months ended Six months ended Six months ended Customer Dollars Percent Dollars Percent Dollars Percent Dollars Percent A $ 2,061,276 45 % $ 383,253 10 % $ 4,950,432 48 % $ * * % B $ 746,877 16 % $ * * % $ 2,330,088 22 % $ 1,457,222 18 % C $ * * % $ * * % $ 1,079,832 10 % $ * * % D $ * * % $ 1,998,724 55 % * * % $ 3,285,065 40 % E $ * * % $ * * % * * % $ 1,741,084 21 % *less than 10% of total |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE (EPS) | |
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations | Three months ended Three months ended Six months ended Six months ended Basic EPS Net Income $ 368,186 $ 546,082 $ 792,688 $ 991,385 Weighted average shares 28,824,593 27,324,593 28,824,593 27,324,593 Basic Income per share $ 0.01 $ 0.02 $ 0.03 $ 0.04 Diluted EPS Net Income $ 368,186 $ 546,082 $ 792,688 $ 991,385 Dilutive effect of stock options 905,863 696,202 926,626 611,505 Diluted weighted average shares 29,730,456 28,020,795 29,751,219 27,936,098 Diluted Income per share $ 0.01 $ 0.02 $ 0.03 $ 0.04 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) | 6 Months Ended |
Sep. 30, 2017 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |
Concentration Risk, Percentage | 80.00% |
PROPERTY, PLANT AND EQUIPMENT32
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | $ 13,314,314 | $ 13,314,314 | $ 12,505,927 | ||
Less: accumulated depreciation | (7,945,147) | (7,945,147) | (7,593,725) | ||
Total property, plant and equipment, net | 5,369,167 | 5,369,167 | 4,912,202 | ||
Depreciation expense | 179,808 | $ 177,438 | 351,422 | $ 353,488 | |
Interest Costs Capitalized | 8,590 | 13,257 | |||
Land | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 110,113 | 110,113 | 110,113 | ||
Building and improvements | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 3,252,908 | 3,252,908 | 3,252,908 | ||
Machinery equipment, furniture and fixtures | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 9,896,917 | 9,896,917 | 8,601,199 | ||
Construction in progress | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 0 | 0 | 487,331 | ||
Equipment under capital leases | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 54,376 | 54,376 | 54,376 | ||
Less: accumulated depreciation | $ (8,156) | $ (8,156) | $ (2,719) |
COSTS INCURRED ON UNCOMPLETED33
COSTS INCURRED ON UNCOMPLETED CONTRACTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | |
Cost incurred on uncompleted contracts | |||||||
Cost incurred on uncompleted contracts, beginning balance | $ 5,538,815 | $ 5,491,605 | $ 5,491,605 | ||||
Total cost incurred on contracts during the year | 6,351,959 | 12,501,752 | |||||
Less: cost of sales, during the year | $ (3,155,893) | $ (2,182,547) | (7,245,692) | (5,291,959) | (12,454,542) | ||
Cost incurred on uncompleted contracts, ending balance | 4,645,082 | 4,645,082 | 5,538,815 | ||||
Billings on uncompleted contracts | |||||||
Billings on uncompleted contracts, beginning balance | 3,441,594 | 3,095,963 | 3,095,963 | ||||
Total billings incurred on contracts, during the year | 8,409,439 | 18,896,305 | |||||
Less: Contracts recognized as revenue, during the year | (4,588,894) | $ (3,656,163) | (10,419,280) | (8,300,968) | (18,550,674) | ||
Billings on uncompleted contracts, ending balance | 1,431,753 | 1,431,753 | 3,441,594 | ||||
Cost incurred on uncompleted contracts | |||||||
Cost incurred on uncompleted contracts, ending balance | 4,645,082 | 5,538,815 | 5,491,605 | 5,538,815 | $ 4,645,082 | $ 5,538,815 | |
Billings on uncompleted contracts, ending balance | $ 1,431,753 | $ 3,441,594 | $ 3,095,963 | $ 3,441,594 | 1,431,753 | 3,441,594 | |
Costs incurred on uncompleted contracts, in excess of progress billings | 3,213,329 | 2,097,221 | |||||
Billings in excess of costs | $ 827,573 | $ 642,831 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Payments advanced to suppliers | $ 190,163 | $ 107,591 |
Prepaid insurance | 226,174 | 229,132 |
Other | 130,296 | 85,373 |
Total | $ 546,633 | $ 422,096 |
OTHER NONCURRENT ASSETS (Detail
OTHER NONCURRENT ASSETS (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Other Noncurrent Assets [Line Items] | ||
Assets held for sale | $ 20,000 | $ 100,000 |
Deposit for fixed assets | 36,987 | 0 |
Prepaid loan costs | 11,638 | 0 |
Total | 68,625 | 100,000 |
Machinery and Equipment [Member] | ||
Other Noncurrent Assets [Line Items] | ||
Assets held for sale | $ 20,000 | $ 100,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Accrued Expenses | ||
Accrued compensation | $ 551,128 | $ 568,766 |
Provision for contract losses | 177,838 | 148,699 |
Accrued professional fees | 141,139 | 142,648 |
Accrued project costs | 97,525 | 0 |
Other | 41,087 | 33,302 |
Total | $ 1,008,717 | $ 893,415 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Long-term Debt | ||
Total debt | $ 5,428,670 | $ 5,781,179 |
Less: debt issue costs unamortized | 140,300 | 188,977 |
Total debt, net | 5,288,370 | 5,592,202 |
Less: Current portion of long-term debt | 742,292 | 717,481 |
Total long-term debt, net | 4,546,078 | 4,874,721 |
Commerce Term Loan due January 2022 | ||
Long-term Debt | ||
Total debt | 2,788,161 | 2,828,844 |
People's Equipment Loan Facility due April 2021 | ||
Long-term Debt | ||
Total debt | 2,584,086 | 2,884,982 |
Obligations under capital leases | ||
Long-term Debt | ||
Total debt | $ 56,423 | $ 67,353 |
DEBT - Commerce Bank & Trust Co
DEBT - Commerce Bank & Trust Company Loan Facility (Details) | Dec. 21, 2016USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 140,300 | $ 188,977 | |
Commerce Loan Agreement | |||
Debt Instrument [Line Items] | |||
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 Instrument Debt Service Coverage Ratio Threshold | 1.2 | ||
Debt Instrument Covenant Leverage Ratio Year One | 3 | ||
Debt Instrument Covenant Leverage Ratio Year Two | 2.50 | ||
Debt Instrument Covenant Maximum Capital Expenditures To Be Incurred Year One | $ 2,500,000 | ||
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 | $ 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 | ||
Debt Instrument Covenant Leverage Ratio | 1 | ||
Debt Instrument, Debt Service Coverage Ratio | 3.07 | 3.40 | |
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 | ||
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. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||
Commerce Loan Agreement | Ranor, Inc. | Secured Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 2,850,000 | ||
Peoples and Commerce Loan Agreements | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 52,594 |
DEBT - People's Capital and Lea
DEBT - People's Capital and Leasing Corp. Equipment Loan Facility (Details) | 1 Months Ended | 12 Months Ended | |
Apr. 26, 2016USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 188,977 | $ 140,300 | |
People's Capital and Leasing Corp | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Debt Service Coverage Ratio | 2.86 | ||
Debt Issuance Costs, Net | $ 87,706 | ||
MLSA | People's Capital and Leasing Corp | |||
Debt Instrument [Line Items] | |||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.5 | ||
MLSA | People's Capital and Leasing Corp | Secured Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 60 months | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.90% | ||
Debt Instrument, Periodic Payment | $ 60,921 | ||
MLSA | People's Capital and Leasing Corp | Secured Term Loan | Ranor, Inc. | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 3,011,648 |
DEBT - Capital Lease (Details)
DEBT - Capital Lease (Details) - Long-term obligations under capital leases | 1 Months Ended |
Jan. 31, 2017USD ($) | |
New Lease [Member] | |
Debt | |
Capital lease term | 60 months |
Capital lease interest rate (as a percent) | 7.90% |
Capital lease monthly payment | $ 1,169 |
Old Lease [Member] | |
Debt | |
Lease Payment Until Expire | 720 |
Maturities of the long-term debt, including the capital lease | |
Repayments of Long-term Capital Lease Obligations | $ 1,187 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Income Tax Expense (Benefit) | $ 245,516 | $ 11,505 | $ 533,151 | $ 20,958 | |
Effective Income Tax Rate Reconciliation, Percent | 40.20% | 2.10% | |||
Deferred Tax Assets, Valuation Allowance | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 |
PROFIT SHARING PLAN (Details)
PROFIT SHARING PLAN (Details) - Ranor, Inc. - USD ($) | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
PROFIT SHARING PLAN | ||
Eligibility for employer matching contributions, period of service | 90 days | |
Matching contributions made by the company | $ 40,850 | $ 39,653 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Apr. 04, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 08, 2016 | |
Share based compensation | ||||
Options granted (in shares) | 200,000 | |||
Exercise price of shares granted (in dollars per share) | $ 0.74 | |||
Assumption used in valuation of stock options | ||||
Volatility rate (as a percent) | 110.10% | |||
Risk free interest rate (as a percent) | 1.88% | |||
Fair value of shares vested | $ 74,747 | |||
Share-based Compensation | $ 150,697 | $ 22,910 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.60 | |||
2016 Plan | ||||
Assumption used in valuation of stock options | ||||
Shares reserved | 5,000,000 | |||
Shares available for grant | 1,803,332 | |||
Members of board | ||||
Share based compensation | ||||
Options granted (in shares) | 200,000 | |||
Exercise price of shares granted (in dollars per share) | $ 0.74 | |||
Board of directors | ||||
Assumption used in valuation of stock options | ||||
Share-based Compensation | $ 84,138 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Mar. 31, 2017 | |
Number Of Options | ||
Outstanding at the beginning of the period (in shares) | 3,002,668 | |
Granted (in shares) | 200,000 | |
Forfeited (in shares) | (6,000) | |
Outstanding at the end of the period (in shares) | 3,196,668 | 3,002,668 |
Vested or expected to vest at the end of the period (in shares) | 3,196,668 | |
Exercisable and vested at the end of the period (in shares) | 2,576,668 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 0.387 | |
Granted (in dollars per share) | 0.74 | |
Forfeited (in dollars per share) | 1.960 | |
Outstanding at the end of the period (in dollars per share) | 0.406 | $ 0.387 |
Vested or expected to vest at the end of the period (in dollars per share) | 0.406 | |
Exercisable and vested at the end of the period (in dollars per share) | $ 0.394 | |
Aggregate Intrinsic Value | ||
Outstanding at the beginning of the period | $ 1,246,600 | |
Granted (in values) | 0 | |
Outstanding at the end of the period | 1,084,600 | $ 1,246,600 |
Vested or expected to vest at the end of the period | 1,084,600 | |
Exercisable and vested at the end of the period | $ 934,600 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at the end of the period | 6 years 2 months 19 days | 5 years 8 months 19 days |
Vested or expected to vest at the end of the period | 6 years 2 months 19 days | |
Exercisable and vested at the end of the period | 6 years 2 months 19 days |
STOCK BASED COMPENSATION - St45
STOCK BASED COMPENSATION - Stock Options Outstanding (Details) | 6 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Stock options outstanding but not vested, Number of Options | |
Outstanding at the beginning of the period (in shares) | shares | 833,334 |
Granted (in shares) | shares | 200,000 |
Vested (in shares) | shares | (413,334) |
Outstanding at the end of the period (in shares) | shares | 620,000 |
Stock options outstanding but not vested, Weighted Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0.266 |
Granted (in dollars per share) | $ / shares | 0.74 |
Vested (in dollars per share) | $ / shares | 0.208 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 0.458 |
STOCK BASED COMPENSATION - St46
STOCK BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details) | 6 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | shares | 3,196,668 |
Options Exercisable | shares | 2,576,668 |
Range One | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | $ 0.01 |
Exercise Price, Upper Range | $ 1 |
Options Outstanding | shares | 3,021,668 |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 11 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $ 0.34 |
Options Exercisable | shares | 2,401,668 |
Options Exercisable, Weighted Average Exercise Price | $ 0.31 |
Range Two | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | 1.01 |
Exercise Price, Upper Range | $ 1.96 |
Options Outstanding | shares | 175,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 2 years 10 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.59 |
Options Exercisable | shares | 175,000 |
Options Exercisable, Weighted Average Exercise Price | $ 1.59 |
CONCENTRATION OF CREDIT RISK 47
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | ||||||
Concentration of credit risk and major customers | ||||||||||
Accounts receivable | $ 2,175,822 | $ 2,175,822 | $ 1,870,672 | |||||||
Net sales | 4,588,894 | $ 3,656,163 | $ 10,419,280 | $ 8,300,968 | 18,550,674 | |||||
Accounts Receivable | Customer Concentration Risk | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Concentration risk percentage | 82.00% | |||||||||
Accounts Receivable | Customer Concentration Risk | Customer A | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Accounts receivable | 1,478,882 | $ 1,478,882 | [1] | |||||||
Concentration risk percentage | 68.00% | [1] | ||||||||
Accounts Receivable | Customer Concentration Risk | Customer B | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Accounts receivable | 308,638 | $ 308,638 | $ 961,463 | |||||||
Concentration risk percentage | 14.00% | 51.00% | ||||||||
Accounts Receivable | Customer Concentration Risk | Customer C | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Accounts receivable | [1] | [1] | $ 406,428 | |||||||
Concentration risk percentage | [1] | 22.00% | ||||||||
Accounts Receivable | Customer Concentration Risk | Customer D | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Accounts receivable | [1] | [1] | $ 187,410 | |||||||
Concentration risk percentage | [1] | 10.00% | ||||||||
Net sales | Customer Concentration Risk | Customer A | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Net sales | $ 2,061,276 | $ 383,253 | $ 4,950,432 | [1] | ||||||
Concentration risk percentage | 45.00% | 10.00% | 48.00% | [1] | ||||||
Net sales | Customer Concentration Risk | Customer B | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Net sales | $ 746,877 | [1] | $ 2,330,088 | $ 1,457,222 | ||||||
Concentration risk percentage | 16.00% | [1] | 22.00% | 18.00% | ||||||
Net sales | Customer Concentration Risk | Customer C | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Net sales | [1] | [1] | $ 1,079,832 | [1] | ||||||
Concentration risk percentage | [1] | [1] | 10.00% | [1] | ||||||
Net sales | Customer Concentration Risk | Customer D | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Net sales | [1] | $ 1,998,724 | [1] | $ 3,285,065 | ||||||
Concentration risk percentage | [1] | 55.00% | [1] | 40.00% | ||||||
Net sales | Customer Concentration Risk | Customer E | ||||||||||
Concentration of credit risk and major customers | ||||||||||
Net sales | [1] | [1] | [1] | $ 1,741,084 | ||||||
Concentration risk percentage | [1] | [1] | [1] | 21.00% | ||||||
[1] | less than 10% of total |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Employment agreements | ||
Aggregate commitment for vacation and holiday pay for non-executive employees | $ 0.3 | |
Scenario, Forecast [Member] | ||
Employment agreements | ||
Aggregate annual commitment for future executive salaries during the next fiscal year | $ 0.5 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic EPS | ||||
Net Income | $ 368,186 | $ 546,082 | $ 792,688 | $ 991,385 |
Weighted average shares | 28,824,593 | 27,324,593 | 28,824,593 | 27,324,593 |
Basic Income per share (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.04 |
Diluted EPS | ||||
Net Income | $ 368,186 | $ 546,082 | $ 792,688 | $ 991,385 |
Dilutive effect of stock options | 905,863 | 696,202 | 926,626 | 611,505 |
Diluted weighted average shares | 29,730,456 | 28,020,795 | 29,751,219 | 27,936,098 |
Diluted Income per share (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.04 |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 596,668 | 428,500 | 496,668 | 428,500 |