Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Feb. 08, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | TECHPRECISION CORP | |
Entity Central Index Key | 1,328,792 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | TPCS | |
Entity Common Stock, Shares Outstanding | 28,949,593 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,837,925 | $ 2,689,110 |
Accounts receivable, net | 147,788 | 1,446,982 |
Contract assets | 7,968,711 | 347,896 |
Inventories | 1,980,838 | 2,088,485 |
Other current assets | 464,714 | 450,540 |
Total current assets | 12,399,976 | 7,023,013 |
Property, plant and equipment, net | 5,046,757 | 5,202,448 |
Deferred income taxes | 2,311,440 | 2,046,298 |
Other noncurrent assets, net | 7,138 | 6,860 |
Total assets | 19,765,311 | 14,278,619 |
Current liabilities: | ||
Accounts payable | 625,598 | 345,705 |
Accrued expenses | 878,112 | 788,084 |
Contract liabilities | 4,693,889 | 180,706 |
Current portion of long-term debt | 807,059 | 766,354 |
Total current liabilities | 7,004,658 | 2,080,849 |
Long-term debt, including capital leases | 3,611,430 | 4,185,274 |
Commitments and contingent liabilities (see Note 15) | ||
Stockholders' Equity: | ||
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 28,949,593 shares issued and outstanding at December 31, 2018, and 28,824,593 shares issued and outstanding at March 31, 2018 | 2,895 | 2,882 |
Additional paid in capital | 8,668,709 | 8,561,995 |
Accumulated other comprehensive income | 21,834 | 24,236 |
Retained earnings (accumulated deficit) | 455,785 | (576,617) |
Total stockholders' equity | 9,149,223 | 8,012,496 |
Total liabilities and stockholders' equity | $ 19,765,311 | $ 14,278,619 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
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 | 28,949,593 | 28,824,593 |
Common stock, shares outstanding | 28,949,593 | 28,824,593 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 4,270,396 | $ 3,642,294 | $ 11,990,404 | $ 14,061,574 |
Cost of sales | 3,299,166 | 3,219,543 | 8,871,550 | 10,465,235 |
Gross profit | 971,230 | 422,751 | 3,118,854 | 3,596,339 |
Selling, general and administrative | 631,783 | 596,271 | 2,113,285 | 2,236,371 |
Income (loss) from operations | 339,447 | (173,520) | 1,005,569 | 1,359,968 |
Other income | 1,590 | 86 | 8,605 | 1,633 |
Interest expense | (88,314) | (104,861) | (273,948) | (314,057) |
Total other expense | (86,724) | (104,775) | (265,343) | (312,424) |
Income (loss) before income taxes | 252,723 | (278,295) | 740,226 | 1,047,544 |
Income tax expense | 34,701 | 413,096 | 177,104 | 946,247 |
Net income (loss) | 218,022 | (691,391) | 563,122 | 101,297 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 18 | 601 | (2,402) | 3,187 |
Other comprehensive income (loss), before tax | 18 | 601 | (2,402) | 3,187 |
Income tax expense (benefit) on other comprehensive income (loss) | 0 | (36) | 0 | 1,006 |
Other comprehensive income (loss), net of tax | 18 | 637 | (2,402) | 2,181 |
Comprehensive income (loss) | $ 218,040 | $ (690,754) | $ 560,720 | $ 103,478 |
Net income (loss) per share basic | $ 0.01 | $ (0.02) | $ 0.02 | $ 0 |
Net income (loss) per share diluted | $ 0.01 | $ (0.02) | $ 0.02 | $ 0 |
Weighted average number of shares outstanding: | ||||
Basic | 28,858,560 | 28,824,593 | 28,835,957 | 28,824,593 |
Diluted | 30,427,218 | 28,824,593 | 30,158,509 | 29,564,841 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock Outstanding | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Balance at Mar. 31, 2017 | $ 7,970,321 | $ 2,882 | $ 8,258,820 | $ 19,328 | $ (310,709) |
Balance (in shares) at Mar. 31, 2017 | 28,824,593 | ||||
Share based compensation | 99,388 | 99,388 | |||
Net income (loss) | 424,502 | 424,502 | |||
Foreign currency translation adjustment | 436 | 436 | |||
Balance at Jun. 30, 2017 | 8,494,647 | $ 2,882 | 8,358,208 | 19,764 | 113,793 |
Balance (in shares) at Jun. 30, 2017 | 28,824,593 | ||||
Balance at Mar. 31, 2017 | 7,970,321 | $ 2,882 | 8,258,820 | 19,328 | (310,709) |
Balance (in shares) at Mar. 31, 2017 | 28,824,593 | ||||
Net income (loss) | 101,297 | ||||
Foreign currency translation adjustment | 3,187 | ||||
Balance at Dec. 31, 2017 | 8,300,734 | $ 2,882 | 8,485,755 | 21,509 | (209,412) |
Balance (in shares) at Dec. 31, 2017 | 28,824,593 | ||||
Balance at Jun. 30, 2017 | 8,494,647 | $ 2,882 | 8,358,208 | 19,764 | 113,793 |
Balance (in shares) at Jun. 30, 2017 | 28,824,593 | ||||
Share based compensation | 51,309 | 51,309 | |||
Net income (loss) | 368,186 | 368,186 | |||
Foreign currency translation adjustment | 1,108 | 1,108 | |||
Balance at Sep. 30, 2017 | 8,915,250 | $ 2,882 | 8,409,517 | 20,872 | 481,979 |
Balance (in shares) at Sep. 30, 2017 | 28,824,593 | ||||
Share based compensation | 76,238 | 76,238 | |||
Net income (loss) | (691,391) | (691,391) | |||
Foreign currency translation adjustment | 601 | 637 | |||
Balance at Dec. 31, 2017 | 8,300,734 | $ 2,882 | 8,485,755 | 21,509 | (209,412) |
Balance (in shares) at Dec. 31, 2017 | 28,824,593 | ||||
Balance at Mar. 31, 2018 | 8,012,496 | $ 2,882 | 8,561,995 | 24,236 | (576,617) |
Balance (in shares) at Mar. 31, 2018 | 28,824,593 | ||||
Share based compensation | 24,930 | 24,930 | |||
Net income (loss) | 164,385 | 164,385 | |||
Foreign currency translation adjustment | (1,911) | (1,911) | |||
Effect of adoption of ASC 606 (see Note 3) | Accounting Standards Update 2014-09 [Member] | 19,647 | 19,647 | |||
Effect of Accounting Standards Update 2016-16 (see Note 3) | Accounting Standards Update 2016-06 [Member] | 449,633 | 449,633 | |||
Balance at Jun. 30, 2018 | 8,669,180 | $ 2,882 | 8,586,925 | 22,325 | 57,048 |
Balance (in shares) at Jun. 30, 2018 | 28,824,593 | ||||
Balance at Mar. 31, 2018 | 8,012,496 | $ 2,882 | 8,561,995 | 24,236 | (576,617) |
Balance (in shares) at Mar. 31, 2018 | 28,824,593 | ||||
Net income (loss) | 563,122 | ||||
Foreign currency translation adjustment | (2,402) | ||||
Balance at Dec. 31, 2018 | 9,149,223 | $ 2,895 | 8,668,709 | 21,834 | 455,785 |
Balance (in shares) at Dec. 31, 2018 | 28,949,593 | ||||
Balance at Jun. 30, 2018 | 8,669,180 | $ 2,882 | 8,586,925 | 22,325 | 57,048 |
Balance (in shares) at Jun. 30, 2018 | 28,824,593 | ||||
Share based compensation | 71,588 | 71,588 | |||
Net income (loss) | 180,715 | 180,715 | |||
Foreign currency translation adjustment | (509) | (509) | |||
Balance at Sep. 30, 2018 | 8,920,974 | $ 2,882 | 8,658,513 | 21,816 | 237,763 |
Balance (in shares) at Sep. 30, 2018 | 28,824,593 | ||||
Shares issued under long-term incentive plan | 122,500 | $ 13 | 122,487 | ||
Shares issued under long-term incentive plan (in shares) | 125,000 | ||||
Non-vested restricted stock | (112,291) | (112,291) | |||
Net income (loss) | 218,022 | 218,022 | |||
Foreign currency translation adjustment | 18 | 18 | |||
Balance at Dec. 31, 2018 | $ 9,149,223 | $ 2,895 | $ 8,668,709 | $ 21,834 | $ 455,785 |
Balance (in shares) at Dec. 31, 2018 | 28,949,593 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 563,122 | $ 101,297 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 558,571 | 523,640 |
Amortization of debt issue costs | 43,638 | 53,964 |
Stock based compensation expense | 106,727 | 226,935 |
Change in contract loss provision | 24,541 | (43,815) |
Deferred income taxes | 177,104 | 904,243 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,299,194 | 261,084 |
Inventories | (1,004,145) | (385,013) |
Contract assets | (5,912,297) | (65,500) |
Other current assets | (14,174) | (87,682) |
Other noncurrent assets and liabilities | (7,245) | (14,516) |
Accounts payable | 279,893 | (106,273) |
Accrued expenses | 202,860 | (28,712) |
Contract liabilities | 3,803,087 | (66,121) |
Net cash provided by operating activities | 120,876 | 1,273,531 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (402,880) | (914,648) |
Proceeds from sale of equipment | 0 | 80,000 |
Net cash used in investing activities | (402,880) | (834,648) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of long-term debt | (569,809) | (533,297) |
Net cash used in financing activities | (569,809) | (533,297) |
Effect of exchange rate on cash and cash equivalents | 628 | (713) |
Net decrease in cash and cash equivalents | (851,185) | (95,127) |
Cash and cash equivalents, beginning of period | 2,689,110 | 3,066,156 |
Cash and cash equivalents, end of period | 1,837,925 | 2,971,029 |
Cash paid during the year for: | ||
Interest expense | 230,310 | 275,216 |
Income taxes | $ 0 | $ 30,000 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 - DESCRIPTION OF BUSINESS TechPrecision Corporation, or TechPrecision, is a Delaware corporation organized in February 2005 under the name Lounsberry Holdings II, Inc. The name was changed to TechPrecision Corporation on March 6, 2006. TechPrecision is the parent company of Ranor, Inc., or Ranor, a Delaware corporation and Wuxi Critical Mechanical Components Co., Ltd., or WCMC, a wholly foreign owned enterprise. TechPrecision, 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, aerospace, nuclear, medical, and precision industrial. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of December 31, 2018 and March 31, 2018, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended December 31, 2018 and 2017, and the condensed consolidated statements of stockholders’ equity for the three and nine months ended December 31, 2018 and 2017, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2018 and 2017 are unaudited, but, in the opinion of management, include all adjustments that are necessary for a fair presentation of our financial statements for interim periods in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The results of operations for an interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. These notes to the Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, or the 2018 Form 10-K, filed with the SEC on June 28, 2018. Accounting Estimates - The preparation of the Company's unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information, and actual results could differ materially from those estimates. Revenue Recognition - Effective April 1, 2018, the Company adopted the requirements of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), or ASC 606, and related amendments . Prior to April 1, 2018, the Company recognized revenue in accordance with Accounting Standards Codification (ASC) Topic 605 - Revenue Recognition, or ASC 605, utilizing the units of delivery measure of the percentage-of-completion method of accounting . For additional information on the new standard and the impact on our results of operations, refer to Note 3: Accounting Standards Updates. ASC 606 sets forth five steps for revenue recognition: identification of the contract, identification of any separate performance obligations in the contracts, determination of the transaction price, allocation of the transaction price to separate performance obligations, and revenue recognition when performance obligations are satisfied. The Company recognizes revenue over time based on the transfer of control of the promised goods or services to the customer. This transfer will occur over time when the Company’s performance does not create an asset that has an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Otherwise, control to the promised goods or services transfers to customers at a point in time. The majority of the Company’s contracts have a single performance obligation and provide title to, or grant a security interest in, work-in-process to the customer. In addition, these contracts contain enforceable rights to payment, allowing the Company to recover both its cost and a reasonable margin on performance completed to date. The combination of these factors indicates that the customer controls the asset and revenue is recognized as the asset is created or enhanced. The Company measures progress for performance obligations satisfied over time using input methods (e.g., costs incurred, resources consumed, labor hours expended, and time elapsed). Under arrangements where the customer does not have title to, or a security interest in, the work-in-process, our evaluation of whether revenue should be recognized over time requires significant judgment about whether the asset has an alternative use and whether the entity has an enforceable right to payment for performance completed to date. When one or both of these factors is not present, the Company will recognize revenue at the point in time where control over the promised good or service transfers to the customer, i.e. when the customer has taken physical possession of the product the Company has built for the customer. The Company and its customers occasionally enter into contract modifications, including change orders. The Company may account for the modification as a separate contract, the termination of an old contract and creation of a new contract, or as part of the original contract, depending on the nature and pricing of the goods or services included in the modification. In general, contract modifications - as well as other changes in estimates of sales, costs, and profits on a performance obligation - are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes in current and prior periods. A significant change in an estimate on one or more contracts in a period could have a material effect on the consolidated balance sheet or results of operations for that period. For the nine months ended December 31, 2018, net cumulative catch-up adjustments were not material. No individual adjustment was material to the Company's condensed consolidated statements of operations and comprehensive income for the nine months ended December 31, 2018. If incentives and other contingencies are provided as part of the contract, the Company will include in the initial transaction price the consideration to which it expects to be entitled under the terms and conditions of the contract, generally estimated using an expected value or most likely amount approach. In the context of variable consideration, the Company limits, or constrains, the transaction price to amounts for which the Company believes a significant reversal of revenue is not probable. Adjustments to constrain the transaction price, may be due to a portion of the transaction price being in excess of approved funding, a lack of history with the customer, a lack of history with the goods or services being provided, or other items. Shipping and handling fees and costs incurred in connection with products sold under ASC 606 are recorded in cost of sales in the condensed consolidated statements of operations, and are not considered a performance obligation to our customers. Contract Estimates - In estimating contract costs, the Company takes into consideration a number of assumptions and estimates regarding risks related to technical requirements and scheduling. Management performs periodic reviews of the contracts to evaluate the underlying risks. Profit margin on any given project could increase if the Company is able to mitigate and retire such risks. Conversely, if the Company is not able to properly manage these risks, cost estimates may increase, resulting in a lower profit margin, or potentially, contract losses. The cost estimation process requires significant judgment and is based upon the professional knowledge and experience of the Company’s engineers, program managers, and financial professionals. Factors considered in estimating the work to be completed and ultimate contract recovery include the availability, productivity, and cost of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any delays in performance, the availability and timing of funding from the customer, and the recoverability of any claims included in the estimates to complete. Costs allocable to undelivered units are reported as work in process, a component of inventory, in the condensed consolidated balance sheet. Pre-contract fulfillment costs requiring capitalization are not material. Accounts Receivable - Accounts receivable are comprised of amounts billed and currently due from customers. Accounts receivable are amounts related to any unconditional right the Company has to receive consideration and are presented as receivables in the condensed consolidated balance sheets. The Company reports accounts receivable net of an allowance for doubtful accounts. There was no allowance for doubtful accounts recorded at December 31, 2018 and March 31, 2018. Inventories - Work-in-process and raw materials are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (FIFO) method. Contract Assets - Contract assets represent the Company’s rights to consideration for work completed but not billed as of the reporting date when the right to payment is not just subject to the passage of time, including retention amounts. Contract assets are transferred to accounts receivable when the right becomes unconditional. Contract Liabilities - Contract liabilities are comprised of advance payments, billings in excess of revenues, and deferred revenue amounts. Such advances are not generally considered a significant financing component, because they are utilized to pay for contract costs within a one year period. Contract liability amounts are recognized as revenue once control over the underlying performance obligation has transferred to the customer. |
ACCOUNTING STANDARDS UPDATES
ACCOUNTING STANDARDS UPDATES | 9 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING STANDARDS UPDATES | NOTE 3 - ACCOUNTING STANDARDS UPDATES New Accounting Standards Recently Adopted Effective April 1, 2018, the Company adopted the requirements of ASU 2014-09, which provides a single revenue recognition model for the transfer of promised goods or services in a manner reflective of the consideration we are entitled to in exchange for those goods or services. The Company applied the new revenue guidance retrospectively with a cumulative effect adjustment to retained earnings at April 1, 2018 for initial application of the guidance (modified retrospective method). Results for reporting periods beginning after April 1, 2018, are presented under ASC 606, while prior period amounts are not adjusted and are reported in accordance with the Company's historic accounting practices under ASC 605. With the adoption of ASC 606 the Company changed its revenue recognition model to reflect recognition of revenue. Revenue is now be recognized at a point in time, or over time using an inputs based methodology that recognizes revenue on cost incurred and labor hours expended, which is different than the units-of-delivery methodology previously utilized under ASC 605. The Company also modified and expanded its disclosures as they relate to revenues and contract balances under ASC 606. In conformity with the new revenue guidelines, unbilled accounts receivable are classified as contract assets and advance payments and billings in excess of revenue are classified as contract liabilities as of December 31, 2018 and March 31, 2018. The adoption of ASC 606 resulted in a cumulative increase to retained earnings of $19,647, net of $7,385 of tax expense, as of April 1, 2018, driven by changes in contract assets and liabilities. For the three and nine months ended December 31, 2018, we recorded additional revenue of $2.4 million and $6.3 million, respectively, due to the change in revenue recognition when compared to ASC 605. Under ASC 605 the Company did not recognize revenue prior to delivery if payment, title, risk of loss was tied to delivery. The new guidance has been applied to all incomplete contracts at the date of initial application. The following table compares the opening and closing balances for inventories, contract assets and contract liabilities: December 31, 2018 April 1, 2018 As adjusted Inventories $ 1,980,838 $ 976,693 Contract assets $ 7,968,711 $ 2,056,414 Contract liabilities $ 4,693,889 $ 890,802 The following tables summarize the impact of the adoption of ASC 606 on the condensed consolidated financial statements. The adjustments are the result of timing differences between the recognition of revenue under ASC 606 and ASC 605. Under ASC 605 the Company did not recognize revenue prior to delivery if payment, title, or risk of loss was tied to delivery. Under ASC 606, the Company generally recognizes revenue over time prior to delivery, as control over the promised goods and services transfers to the customer. Condensed Consolidated Balance Sheet: December 31, 2018 As reported Adjustments ASC 605 ASSETS Contract assets $ 7,968,711 $ (7,968,711 ) $ — Inventories $ 1,980,838 $ 1,855,219 $ 3,836,057 Deferred tax assets $ 2,311,440 $ 621,462 $ 2,932,902 LIABILITIES Contract liabilities $ 4,693,889 $ (3,787,769 ) $ 906,120 Accrued expenses $ 878,112 $ (56,266 ) $ 821,846 SHAREHOLDERS’ EQUITY Retained earnings $ 455,785 $ (1,628,348 ) $ (1,172,563 ) Condensed Consolidated Statement of Operations: Three months ended December 31, 2018 As reported Adjustments ASC 605 Net sales $ 4,270,396 $ (2,411,222 ) $ 1,859,174 Cost of sales $ 3,299,166 $ (1,839,628 ) $ 1,459,538 Selling, general and administrative $ 631,783 $ (893 ) $ 630,890 Income (loss) before income taxes $ 252,723 $ (570,701 ) $ (317,978 ) Income tax provision (benefit) $ 34,701 $ (159,325 ) $ (124,624 ) Net income (loss) $ 218,022 $ (411,376 ) $ (193,354 ) Net income (loss) per share – basic $ 0.01 $ (0.02 ) $ (0.01 ) Net income (loss) per share – diluted $ 0.01 $ (0.02 ) $ (0.01 ) Condensed Consolidated Statement of Operations: Nine months ended December 31, 2018 As reported Adjustments ASC 605 Net sales $ 11,990,404 $ (6,260,193 ) $ 5,730,211 Cost of sales $ 8,871,550 $ (4,015,449 ) $ 4,856,101 Selling, general and administrative $ 2,113,285 $ (2,320 ) $ 2,110,965 Income (loss) before income taxes $ 740,226 $ (2,242,425 ) $ (1,502,199 ) Income tax provision (benefit) $ 177,104 $ (614,077 ) $ (436,973 ) Net income (loss) $ 563,122 $ (1,628,348 ) $ (1,065,226 ) Net income (loss) per share - basic $ 0.02 $ (0.04 ) $ (0.02 ) Net income (loss) per share - diluted $ 0.02 $ (0.04 ) $ (0.02 ) Condensed Consolidated Statement of Cash Flows: Nine months ended December 31, 2018 As reported Adjustments ASC 605 Net income $ 563,122 $ (1,628,348 ) $ (1,065,226 ) Change in contract loss provision $ 24,541 $ 35,915 $ 60,456 Deferred income taxes $ 177,104 $ (614,077 ) $ (436,973 ) Changes in operating assets and liabilities: Inventories $ (1,004,145 ) $ (1,855,219 ) $ (2,859,364 ) Contract assets $ (5,912,297 ) $ 7,968,711 $ 2,056,414 Accrued expenses $ 202,860 $ (111,828 ) $ 91,033 Contract liabilities $ 3,803,087 $ (3,787,769 ) $ 15,318 Effective April 1, 2018, the Company adopted ASU 2016-16, Income Taxes (Topic 740): Intra Entity Transfers of Assets Other Than Inventory . The guidance in ASU 2016-16 requires companies to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. As such, the Company was required to remeasure an unrecognized deferred tax asset created from the repurchase of land and building from a certain variable interest entity in 2010. The modified retrospective approach was used to transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. The adoption of ASU 2016-16 resulted in a cumulative increase to retained earnings of $0.4 million as of April 1, 2018. Issued Standards Not Yet Adopted In July 2018, the Financial Accounting Standards Board, or FASB, issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . This amendment provides entities with an additional and optional transition method to adopt the new leases standard. Under the new transition method, an entity can initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases ). ASU 2018-11 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. We are currently evaluating the impact ASU 2018-11 will have on our financial statements and disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. This guidance expands the scope of accounting for share-based payment arrangements to include share-based payment transactions for acquiring goods and services from nonemployees. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. We are currently evaluating the impact that ASU 2018-07 will have on our financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this amendment, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. We are currently evaluating the impact ASU 2016-02 will have on our financial statements and disclosures. |
REVENUE
REVENUE | 9 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 4 - REVENUE The Company generates its revenues primarily from performance obligations completed under contracts with customers in three main market sectors: defense, energy and precision industrial. The period over which the Company performs is generally less than one year. The Company generally invoices and receives related payments based upon performance progress not less frequently than monthly. Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type sales only. The following table presents net sales on a disaggregated basis by market and contract type: Net Sales by market Defense Energy Industrial Totals Three months ended December 31, 2018 $ 3,890,782 $ 371,864 $ 7,750 $ 4,270,396 Nine months ended December 31, 2018 $ 11,009,204 $ 798,356 $ 182,844 $ 11,990,404 Net Sales by contract type Over-time Point-in-time Totals Three months ended December 31, 2018 $ 4,086,713 $ 183,683 $ 4,270,396 Nine months ended December 31, 2018 $ 11,314,849 $ 675,555 $ 11,990,404 As of December 31, 2018, the Company had $14.1 million of remaining performance obligations, of which $11.1 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue before the end of fiscal year 2020. 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 periods ended: Three months ended December 31, 2018 Three months ended December 31, 2017 Nine months ended December 31, 2018 Nine months ended December 31, 2017 Customer Amount Percent Amount Percent Amount Percent Amount Percent A $ 1,183,208 28 % $ * * % $ 4,293,047 36 % $ 5,284,925 38 % B $ 1,008,263 24 % $ 775,042 21 % $ 2,609,284 22 % $ * * % C $ 1,124,294 26 % $ 704,215 19 % $ 2,117,342 18 % $ 3,034,304 22 % D $ * * % $ 638,843 18 % $ * * % $ * * % E $ * * % $ 576,487 16 % $ * * % $ * * % *Less than 10% of total |
CONTRACT ASSETS and CONTRACT LI
CONTRACT ASSETS and CONTRACT LIABILITIES | 9 Months Ended |
Dec. 31, 2018 | |
CONTRACT ASSETS and CONTRACT LIABILITIES [Abstract] | |
CONTRACT ASSETS and CONTRACT LIABILITIES | NOTE 5 - CONTRACT ASSETS and CONTRACT LIABILITIES Contract assets primarily relate to the Company's rights to consideration for work completed but not billed as of the reporting date when the right to payment is not just subject to the passage of time. Fixed-price contracts are generally billed to the customer using either progress payments, whereby amounts are billed monthly as costs are incurred or work is completed, or performance-based payments, which are based upon the achievement of specific, measurable events or accomplishments defined and valued at contract inception. Contract liabilities relate to advance payments, billings in excess of revenues, and deferred revenue amounts. We also receive deposits representing down payments for acquisition of materials. Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in the condensed consolidated balance sheets as a component of current assets. The $5.9 million increase in contract assets from April 1, 2018 to December 31, 2018 is due primarily to the Company’s change in accounting policy (see Note 2) and transition from a units-of-delivery revenue recognition policy to a model that recognizes revenue over time as asset ownership is transferred to the customer. Our contract liabilities increased by $3.8 million primarily due to an increase in customer deposits and milestone payments in connection with new projects started since March 31, 2018. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 6 - INVENTORIES December 31, 2018 March 31, 2018 Raw materials $ 618,616 $ 202,737 Work-in-process 1,362,222 1,885,748 Totals $ 1,980,838 $ 2,088,485 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 9 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
OTHER CURRENT ASSETS | NOTE 7 - OTHER CURRENT ASSETS December 31, 2018 March 31, 2018 Payments advanced to suppliers $ 143,048 $ 82,520 Prepaid insurance 199,921 211,823 Prepaid subscriptions 27,497 38,836 Prepaid taxes 62,791 59,792 Employee advances 7,366 26,869 Other 24,091 30,700 Totals $ 464,714 $ 450,540 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 9 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 8 - PROPERTY, PLANT AND EQUIPMENT, NET December 31, 2018 March 31, 2018 Land $ 110,113 $ 110,113 Building and improvements 3,252,908 3,252,908 Machinery equipment, furniture and fixtures 10,483,341 10,058,797 Construction in progress 2,599 24,263 Equipment under capital leases 54,376 54,376 Total property, plant and equipment 13,903,337 13,500,457 Less: accumulated depreciation (8,856,580 ) (8,298,009 ) Total property, plant and equipment, net $ 5,046,757 $ 5,202,448 Depreciation expense, which includes amortization of equipment under capital leases, for the three and nine months ended December 31, 2018 and 2017 was $186,511 and $558,571, and $172,218 and $523,640, respectively. Capitalized leases included in property, plant and equipment were $54,376 at both December 31, 2018 and March 31, 2018. Accumulated depreciation on all property, plant and equipment accounted for as capitalized leases was $21,750 and $13,594 at December 31, 2018 and March 31, 2018, respectively. 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 periods ended December 31, 2018 and March 31, 2018 was $2,882 and $14,791, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 9 - ACCRUED EXPENSES December 31, 2018 March 31, 2018 Accrued compensation $ 478,228 $ 383,060 Accrued professional fees 181,828 152,501 Provision for contract losses 24,541 200,897 Accrued project costs 108,875 — Other 84,640 51,626 Total $ 878,112 $ 788,084 |
DEBT
DEBT | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 10 - DEBT December 31, 2018 March 31, 2018 Berkshire Term Loan due December 2021 $ 2,679,952 $ 2,745,181 People’s Equipment Loan Facility due April 2021 1,777,926 2,271,109 Obligations under capital leases 36,016 47,413 Total debt $ 4,493,894 $ 5,063,703 Less: debt issue costs unamortized $ 75,405 $ 112,075 Total debt, net $ 4,418,489 $ 4,951,628 Less: Current portion of long-term debt $ 807,059 $ 766,354 Total long-term debt, net $ 3,611,430 $ 4,185,274 Berkshire Bank Loan Facility On December 21, 2016, pursuant to the Loan Agreement dated December 20, 2016, or the Berkshire Loan Agreement, Berkshire Bank made a term loan to Ranor in the amount of $2,850,000, or the Term Loan, and made available to Ranor a revolving line of credit in the amount of $1,000,000, or the Revolver Loan, and together with the Term Loan, collectively, the Berkshire Loans. The Berkshire Loans are secured by a first lien on all personal and real property of Ranor. On January 20, 2017, payments on the Term Loan began and will be made in 60 monthly installments of $19,260 each, inclusive of interest at a fixed rate of 5.21% per annum, with all outstanding principal and accrued interest due and payable on December 20, 2021. On December 19, 2018, the Company entered into a Second Modification to Loan Agreement and First Modification and Allonge to Promissory Note with Berkshire Bank, or the Modification. The Modification amends and modifies each of the Loan Agreement between Ranor and Berkshire dated December 20, 2016, as modified by the previously disclosed First Modification to Loan Agreement dated June 6, 2018, and the Promissory Note dated December 20, 2016 made by Ranor in favor of Berkshire in the stated principal amount of $1,000,000. Under the terms of the Loan Agreement and the Line of Credit Note, Ranor was entitled to borrow up to $1,000,000 on a revolving basis. As of the date of the Modification, there were no amounts outstanding under the Revolver Loan. The maturity date of the Revolver Loan was originally December 20, 2018. Under the Modification, the maturity date of the Revolver Loan was extended until December 20, 2020. The Company paid $ 7,245 There were no amounts outstanding under the Revolver Loan at December 31, 2018 or March 31, 2018. The Company pays, as consideration for the bank’s commitment to make advances under the Revolver Loan, a nonrefundable commitment fee equal to 0.25% per annum on the average daily difference between the amount of $1,000,000 and the aggregate amount of all advances made under the Revolver Loan as of each quarterly period. Ranor’s obligations under the Berkshire Loan Agreement are guaranteed by TechPrecision. The Berkshire Loan Agreement contains a covenant whereby the Company is required to maintain a debt service coverage ratio or DSCR, of at least 1.2 to 1.0 during the term of the Berkshire Loans. The DSCR is measured at the end of each fiscal quarter of the Company. Pursuant to the Berkshire Loan Agreement, Ranor covenants to cause its balance sheet leverage to be less than or equal to 3.00 to 1.00 for the fiscal year ending March 31, 2018, and less than or equal to 2.50 to 1.00 for the fiscal year ending March 31, 2019 and each fiscal year end thereafter. The leverage ratio was 0.78 to 1.00 at March 31, 2018. Also, Ranor’s annual capital expenditures cannot exceed $2,500,000 for the fiscal year ended March 31, 2019, and $1,500,000 for the fiscal year ending March 31, 2020 and each fiscal year end thereafter. The Berkshire Loan Agreement contains an additional covenant whereby Ranor is required to maintain a loan-to-value ratio of not greater than 0.75 to 1.00, to be measured by appraisal not more frequently than one time during each 365-day period. . The Berkshire Loans may be accelerated upon the occurrence of an “Event of Default” (as defined in the Berkshire Loan Agreement). Some of the Events of Default are subject to certain cure periods. Subject to the lapse of any applicable cure period, a default under the Berkshire Loans could cause the acceleration of all outstanding obligations under the Berkshire Loans. At March 31, 2018, the Company failed to maintain the required DSCR as defined in the Berkshire Loan Agreement. On June 6, 2018, the Company executed a waiver and modification agreement with Berkshire Bank under which Berkshire Bank waived the Company’s noncompliance with the DSCR at March 31, 2018, and agreed to modify the definition of cash flows in the Berkshire Loan Agreement. Subject to the lapse of any applicable cure period, a default under the Berkshire Loan Agreement could have caused the acceleration of all outstanding obligations under the loan. If the lender had demanded repayment and caused the debt to be considered a short-term obligation, the Company would have been unable to pay the obligation because the Company does not have existing facilities or sufficient cash on hand to satisfy these obligations. The waiver does not apply to any future periods. Concurrent with the execution and delivery of this amendment, the Company agreed to pay Berkshire Bank all expenses incurred in connection with the amendment. Unamortized debt issue costs under the Berkshire Loans at December 31, 2018 and March 31, 2018 were $43,319 and $45,936, respectively. 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. 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 was dated and effective as of March 31, 2016. Pursuant to the MLSA, People’s loaned $3,011,648 to Ranor, or the People’s Loan. The People’s Loan is secured by a first lien on certain machinery and equipment of Ranor, or the Equipment Collateral. Payments on the People’s Loan will be made in 60 monthly installments of $60,921 each, inclusive of interest, at a fixed rate of 7.90% per annum. The People’s Loan may be accelerated upon the occurrence of an “Event of Default” (as defined in the MLSA). Some of the Events of Default are subject to certain cure periods. On October 4, 2016, TechPrecision and Ranor became committed to Schedule No. 002 to the MLSA, or Schedule 2. Pursuant to Schedule 2, People’s made an additional loan in the amount of $365,852, or the Additional People’s Loan, to Ranor upon the terms and conditions set forth in the MLSA and Schedule 2. The Additional People’s Loan is guaranteed by TechPrecision pursuant to the original Corporate Guaranty from TechPrecision in favor of People’s dated March 31, 2016. The Additional People’s Loan is secured by a security interest in certain machinery and equipment of Ranor as provided in Schedule 2. Under our loan with People’s, the Company is required to meet certain financial covenants applicable while the debt remains outstanding, including among other things, that the Company maintain a DSCR of at least 1.5 to 1.0 during the term of the People’s Loan. On May 22, 2018, the Company obtained a waiver of the breach of such covenant from People’s, which waiver covered the breach that otherwise would have occurred in connection with the DSCR testing at March 31, 2018. Subject to the lapse of any applicable cure period, a default under the People’s Loan could have caused the acceleration of all outstanding obligations under the People’s Loan. If the lender had demanded repayment and caused the debt to be considered a short-term obligation, the Company would have been unable to pay the obligation because the Company does not have existing facilities or sufficient cash on hand to satisfy these obligations. This waiver does not apply to any future periods. Concurrent with the execution and delivery of the waiver, the Company agreed to pay People’s a covenant waiver processing fee. Unamortized debt issue costs under the loans with People’s at December 31, 2018 and March 31, 2018 were $39,224 and $66,139, respectively. Capital Lease We entered into a capital lease in January 2017 for certain office equipment. The lease term is for 60 months, bears interest at 7.9% per annum and requires monthly payments of principal and interest of approximately $1,100. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes . The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. The provision for income taxes was $0.2 million and $0.9 million for the nine months ended December 31, 2018 and 2017, respectively. The Company's earnings are primarily domestic, and its effective tax rate on earnings from operations for the nine months ended December 31, 2018 was 23.9%. The lower effective tax rate for the nine months ended December 31, 2018 was primarily attributable to a reduction in our federal corporate income tax rate from 34% to 21%, enacted under the Tax Cuts and Jobs Act of 2017, or the Tax Act, and the release of a valuation allowance on a deferred tax asset . On December 22, 2017, Staff Accounting Bulletin No. 118, or SAB 118, was issued to provide guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes . We finalized our analysis within the measurement period in accordance with SAB 118 after completing a review of additional guidance issued by the Internal Revenue Service and tax accounting estimates made at March 31, 2018. During the nine months ended December 31, 2018, we did not make any changes to the provisional amounts recorded in our March 31, 2018 Annual Report on Form 10-K in connection with the 2017 Tax Act. The valuation allowance on deferred tax assets at December 31, 2018 was approximately $1.7 million. We believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards and other deferred tax assets will not be realized. In recognition of this risk, we continue to provide a valuation allowance on these items. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, the Company could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in the Company’s effective tax rate. |
PROFIT SHARING PLAN
PROFIT SHARING PLAN | 9 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
PROFIT SHARING PLAN | NOTE 12 - PROFIT SHARING PLAN Ranor has a 401(k) profit sharing plan that covers substantially all Ranor employees who have completed 90 days of service. Ranor retains the option to match employee contributions. The Company’s contributions were $61,251 and $59,859 for the nine months ended December 31, 2018 and 2017, respectively. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 13 - 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 shares of common stock. On July 11, 2018, we granted stock options to our chief executive officer, or CEO, and our chief financial officer, or CFO, to collectively purchase 150,000 shares of common stock at an exercise price of $0.80 per share. The options vested immediately on the grant date. The aggregate fair value of the stock options expensed during the nine months ended December 31, 2018 was $46,658. The assumptions utilized for options granted on July 11, 2018 were 104.9% for volatility, 2.58% for the risk-free interest rate, and approximately two years for the expected life. At December 31, 2018, there were 1,332,332 Number Of Weighted Average Aggregate Intrinsic Weighted Average Remaining Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2018 3,394,668 $ 0.417 $ 698,200 6.73 Granted 150,000 $ 0.800 — — Canceled (2,000 ) $ 1.960 — — Outstanding at 12/31/2018 3,542,668 $ 0.432 $ 2,039,662 6.56 Vested or expected to vest at 12/31/2018 3,542,668 $ 0.432 $ 2,039,662 6.56 Exercisable and vested at 12/31/2018 3,542,668 $ 0.432 $ 2,039,662 6.56 The total fair value of shares vested during the period was $96,519. The following table summarizes the status of our stock options outstanding but not vested for the nine months ended December 31, 2018: Number of Options Weighted Average Exercise Price Outstanding but not vested at 3/31/2018 100,000 $ 0.60 Granted 150,000 $ 0.80 Vested (250,000 ) $ 0.72 Outstanding but not vested at 12/31/2018 — $ — Other information relating to stock options outstanding at December 31, 2018 is as follows: Range of Exercise Prices: Options Outstanding Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $0.01-$1.00 3,371,668 7.06 $ 0.37 3,371,668 $ 0.37 $1.01-$1.96 171,000 1.98 $ 1.58 171,000 $ 1.58 Totals 3,542,668 3,542,668 On December 7, 2018 we granted 25,000 shares of restricted stock under the 2016 Plan each to the board members and 12,500 of restricted stock to our CEO and CFO. 122,500 The shares of restricted stock fully vest and cease to be subject to forfeiture on December 7, 2019, one year following the grant date. Each grantee must be serving as an executive officer on the vesting date and must have been continuously serving in such capacity from the grant date through the vesting date for the shares of restricted stock to vest. Prior to the vesting date, the grantee is not permitted to sell, transfer, pledge, assign or otherwise encumber the shares of restricted stock and if the grantee’s service with the Company terminates prior to the vesting date, the grantee’s restricted stock will be forfeited automatically. The aggregate fair value of the restricted stock expensed during the three months ended December 31, 2018 was $10,209. At December 31, 2018 there was $ 112,291 |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 14 - CONCENTRATION OF CREDIT RISK We maintain bank account balances, which, at times, may exceed insured limits. We have not experienced any losses with these accounts and believe that we are not exposed to any significant credit risk on cash. At December 31, 2018, there were accounts receivable balances outstanding from one customer comprising 75% of the total receivables balance. The following table sets forth information as to accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of: December 31, 2018 March 31, 2018 Customer Amount Percent Amount Percent A $ 110,619 75 % $ 394,454 27 % B $ 17,280 12 % * * % C $ * * % $ 432,084 30 % D $ * * % $ 263,098 18 % *less than 10% of total |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 15 - 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 December 31, 2018 for future executive salaries during the next twelve months was approximately $0.5 million. The aggregate commitment for the remainder of our employees at December 31, 2018 was approximately $0.3 million for accrued payroll, vacation and holiday pay. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | NOTE 16 - EARNINGS PER SHARE (EPS) Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average number of shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260: Three months ended December 31, 2018 Three months ended December 31, 2017 Nine months ended December 31, 2018 Nine months ended December 31, 2017 Basic EPS: Net income (loss) $ 218,022 $ (691,391 ) $ 563,122 $ 101,297 Basic weighted average shares 28,858,560 28,824,593 28,835,957 28,824,593 Basic income (loss) per share $ 0.01 $ (0.02 ) $ 0.02 $ 0.00 Diluted EPS: Net income (loss) $ 218,022 $ (691,391 ) $ 563,122 $ 101,297 Dilutive effect of stock options 1,568,658 — 1,322,552 740,248 Diluted weighted average shares 30,427,218 28,824,593 30,158,509 29,564,841 Diluted income (loss) per share $ 0.01 $ (0.02 ) $ 0.02 $ 0.00 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 nine months ended December 31, 2018 and 2017, there were 171,000 and 642,668, and 2,590,418 and 1,796,668, respectively, of potentially anti-dilutive stock options, none of which were included in the EPS calculations above. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation - The accompanying condensed consolidated financial statements include the accounts of TechPrecision, Ranor and WCMC. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated balance sheets as of December 31, 2018 and March 31, 2018, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended December 31, 2018 and 2017, and the condensed consolidated statements of stockholders’ equity for the three and nine months ended December 31, 2018 and 2017, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2018 and 2017 are unaudited, but, in the opinion of management, include all adjustments that are necessary for a fair presentation of our financial statements for interim periods in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The results of operations for an interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. These notes to the Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, or the 2018 Form 10-K, filed with the SEC on June 28, 2018. |
Accounting Estimates | Accounting Estimates - The preparation of the Company's unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information, and actual results could differ materially from those estimates. |
Revenue and Related Cost Recognition | Revenue Recognition - Effective April 1, 2018, the Company adopted the requirements of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), or ASC 606, and related amendments . Prior to April 1, 2018, the Company recognized revenue in accordance with Accounting Standards Codification (ASC) Topic 605 - Revenue Recognition, or ASC 605, utilizing the units of delivery measure of the percentage-of-completion method of accounting . For additional information on the new standard and the impact on our results of operations, refer to Note 3: Accounting Standards Updates. ASC 606 sets forth five steps for revenue recognition: identification of the contract, identification of any separate performance obligations in the contracts, determination of the transaction price, allocation of the transaction price to separate performance obligations, and revenue recognition when performance obligations are satisfied. The Company recognizes revenue over time based on the transfer of control of the promised goods or services to the customer. This transfer will occur over time when the Company’s performance does not create an asset that has an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Otherwise, control to the promised goods or services transfers to customers at a point in time. The majority of the Company’s contracts have a single performance obligation and provide title to, or grant a security interest in, work-in-process to the customer. In addition, these contracts contain enforceable rights to payment, allowing the Company to recover both its cost and a reasonable margin on performance completed to date. The combination of these factors indicates that the customer controls the asset and revenue is recognized as the asset is created or enhanced. The Company measures progress for performance obligations satisfied over time using input methods (e.g., costs incurred, resources consumed, labor hours expended, and time elapsed). Under arrangements where the customer does not have title to, or a security interest in, the work-in-process, our evaluation of whether revenue should be recognized over time requires significant judgment about whether the asset has an alternative use and whether the entity has an enforceable right to payment for performance completed to date. When one or both of these factors is not present, the Company will recognize revenue at the point in time where control over the promised good or service transfers to the customer, i.e. when the customer has taken physical possession of the product the Company has built for the customer. The Company and its customers occasionally enter into contract modifications, including change orders. The Company may account for the modification as a separate contract, the termination of an old contract and creation of a new contract, or as part of the original contract, depending on the nature and pricing of the goods or services included in the modification. In general, contract modifications - as well as other changes in estimates of sales, costs, and profits on a performance obligation - are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes in current and prior periods. A significant change in an estimate on one or more contracts in a period could have a material effect on the consolidated balance sheet or results of operations for that period. For the nine months ended December 31, 2018, net cumulative catch-up adjustments were not material. No individual adjustment was material to the Company's condensed consolidated statements of operations and comprehensive income for the nine months ended December 31, 2018. If incentives and other contingencies are provided as part of the contract, the Company will include in the initial transaction price the consideration to which it expects to be entitled under the terms and conditions of the contract, generally estimated using an expected value or most likely amount approach. In the context of variable consideration, the Company limits, or constrains, the transaction price to amounts for which the Company believes a significant reversal of revenue is not probable. Adjustments to constrain the transaction price, may be due to a portion of the transaction price being in excess of approved funding, a lack of history with the customer, a lack of history with the goods or services being provided, or other items. Shipping and handling fees and costs incurred in connection with products sold under ASC 606 are recorded in cost of sales in the condensed consolidated statements of operations, and are not considered a performance obligation to our customers. |
Contract Estimates | Contract Estimates - In estimating contract costs, the Company takes into consideration a number of assumptions and estimates regarding risks related to technical requirements and scheduling. Management performs periodic reviews of the contracts to evaluate the underlying risks. Profit margin on any given project could increase if the Company is able to mitigate and retire such risks. Conversely, if the Company is not able to properly manage these risks, cost estimates may increase, resulting in a lower profit margin, or potentially, contract losses. The cost estimation process requires significant judgment and is based upon the professional knowledge and experience of the Company’s engineers, program managers, and financial professionals. Factors considered in estimating the work to be completed and ultimate contract recovery include the availability, productivity, and cost of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any delays in performance, the availability and timing of funding from the customer, and the recoverability of any claims included in the estimates to complete. Costs allocable to undelivered units are reported as work in process, a component of inventory, in the condensed consolidated balance sheet. Pre-contract fulfillment costs requiring capitalization are not material. |
Accounts receivable and allowance for doubtful accounts | Accounts Receivable - Accounts receivable are comprised of amounts billed and currently due from customers. Accounts receivable are amounts related to any unconditional right the Company has to receive consideration and are presented as receivables in the condensed consolidated balance sheets. The Company reports accounts receivable net of an allowance for doubtful accounts. There was no allowance for doubtful accounts recorded at December 31, 2018 and March 31, 2018. |
Inventories | Inventories - Work-in-process and raw materials are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (FIFO) method. |
Contract Assets | Contract Assets - Contract assets represent the Company’s rights to consideration for work completed but not billed as of the reporting date when the right to payment is not just subject to the passage of time, including retention amounts. Contract assets are transferred to accounts receivable when the right becomes unconditional. |
Contract Liabilities | Contract Liabilities - Contract liabilities are comprised of advance payments, billings in excess of revenues, and deferred revenue amounts. Such advances are not generally considered a significant financing component, because they are utilized to pay for contract costs within a one year period. Contract liability amounts are recognized as revenue once control over the underlying performance obligation has transferred to the customer. |
ACCOUNTING STANDARDS UPDATES (T
ACCOUNTING STANDARDS UPDATES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Revenue from External Customers by Products and Services | The following table compares the opening and closing balances for inventories, contract assets and contract liabilities: December 31, 2018 April 1, 2018 As adjusted Inventories $ 1,980,838 $ 976,693 Contract assets $ 7,968,711 $ 2,056,414 Contract liabilities $ 4,693,889 $ 890,802 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Condensed Consolidated Balance Sheet: December 31, 2018 As reported Adjustments ASC 605 ASSETS Contract assets $ 7,968,711 $ (7,968,711 ) $ — Inventories $ 1,980,838 $ 1,855,219 $ 3,836,057 Deferred tax assets $ 2,311,440 $ 621,462 $ 2,932,902 LIABILITIES Contract liabilities $ 4,693,889 $ (3,787,769 ) $ 906,120 Accrued expenses $ 878,112 $ (56,266 ) $ 821,846 SHAREHOLDERS’ EQUITY Retained earnings $ 455,785 $ (1,628,348 ) $ (1,172,563 ) Condensed Consolidated Statement of Operations: Three months ended December 31, 2018 As reported Adjustments ASC 605 Net sales $ 4,270,396 $ (2,411,222 ) $ 1,859,174 Cost of sales $ 3,299,166 $ (1,839,628 ) $ 1,459,538 Selling, general and administrative $ 631,783 $ (893 ) $ 630,890 Income (loss) before income taxes $ 252,723 $ (570,701 ) $ (317,978 ) Income tax provision (benefit) $ 34,701 $ (159,325 ) $ (124,624 ) Net income (loss) $ 218,022 $ (411,376 ) $ (193,354 ) Net income (loss) per share – basic $ 0.01 $ (0.02 ) $ (0.01 ) Net income (loss) per share – diluted $ 0.01 $ (0.02 ) $ (0.01 ) Condensed Consolidated Statement of Operations: Nine months ended December 31, 2018 As reported Adjustments ASC 605 Net sales $ 11,990,404 $ (6,260,193 ) $ 5,730,211 Cost of sales $ 8,871,550 $ (4,015,449 ) $ 4,856,101 Selling, general and administrative $ 2,113,285 $ (2,320 ) $ 2,110,965 Income (loss) before income taxes $ 740,226 $ (2,242,425 ) $ (1,502,199 ) Income tax provision (benefit) $ 177,104 $ (614,077 ) $ (436,973 ) Net income (loss) $ 563,122 $ (1,628,348 ) $ (1,065,226 ) Net income (loss) per share - basic $ 0.02 $ (0.04 ) $ (0.02 ) Net income (loss) per share - diluted $ 0.02 $ (0.04 ) $ (0.02 ) Condensed Consolidated Statement of Cash Flows: Nine months ended December 31, 2018 As reported Adjustments ASC 605 Net income $ 563,122 $ (1,628,348 ) $ (1,065,226 ) Change in contract loss provision $ 24,541 $ 35,915 $ 60,456 Deferred income taxes $ 177,104 $ (614,077 ) $ (436,973 ) Changes in operating assets and liabilities: Inventories $ (1,004,145 ) $ (1,855,219 ) $ (2,859,364 ) Contract assets $ (5,912,297 ) $ 7,968,711 $ 2,056,414 Accrued expenses $ 202,860 $ (111,828 ) $ 91,033 Contract liabilities $ 3,803,087 $ (3,787,769 ) $ 15,318 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Disaggregation of Revenue | Net Sales by market Defense Energy Industrial Totals Three months ended December 31, 2018 $ 3,890,782 $ 371,864 $ 7,750 $ 4,270,396 Nine months ended December 31, 2018 $ 11,009,204 $ 798,356 $ 182,844 $ 11,990,404 Net Sales by contract type Over-time Point-in-time Totals Three months ended December 31, 2018 $ 4,086,713 $ 183,683 $ 4,270,396 Nine months ended December 31, 2018 $ 11,314,849 $ 675,555 $ 11,990,404 |
Net Sales [Member] | |
Schedules of Concentration of Risk, by Risk Factor | Three months ended December 31, 2018 Three months ended December 31, 2017 Nine months ended December 31, 2018 Nine months ended December 31, 2017 Customer Amount Percent Amount Percent Amount Percent Amount Percent A $ 1,183,208 28 % $ * * % $ 4,293,047 36 % $ 5,284,925 38 % B $ 1,008,263 24 % $ 775,042 21 % $ 2,609,284 22 % $ * * % C $ 1,124,294 26 % $ 704,215 19 % $ 2,117,342 18 % $ 3,034,304 22 % D $ * * % $ 638,843 18 % $ * * % $ * * % E $ * * % $ 576,487 16 % $ * * % $ * * % *Less than 10% of total |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [Abstract] | |
Schedule of Inventory, Current | December 31, 2018 March 31, 2018 Raw materials $ 618,616 $ 202,737 Work-in-process 1,362,222 1,885,748 Totals $ 1,980,838 $ 2,088,485 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of other current assets | December 31, 2018 March 31, 2018 Payments advanced to suppliers $ 143,048 $ 82,520 Prepaid insurance 199,921 211,823 Prepaid subscriptions 27,497 38,836 Prepaid taxes 62,791 59,792 Employee advances 7,366 26,869 Other 24,091 30,700 Totals $ 464,714 $ 450,540 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property, plant and equipment, net | December 31, 2018 March 31, 2018 Land $ 110,113 $ 110,113 Building and improvements 3,252,908 3,252,908 Machinery equipment, furniture and fixtures 10,483,341 10,058,797 Construction in progress 2,599 24,263 Equipment under capital leases 54,376 54,376 Total property, plant and equipment 13,903,337 13,500,457 Less: accumulated depreciation (8,856,580 ) (8,298,009 ) Total property, plant and equipment, net $ 5,046,757 $ 5,202,448 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | December 31, 2018 March 31, 2018 Accrued compensation $ 478,228 $ 383,060 Accrued professional fees 181,828 152,501 Provision for contract losses 24,541 200,897 Accrued project costs 108,875 — Other 84,640 51,626 Total $ 878,112 $ 788,084 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt obligations | December 31, 2018 March 31, 2018 Berkshire Term Loan due December 2021 $ 2,679,952 $ 2,745,181 People’s Equipment Loan Facility due April 2021 1,777,926 2,271,109 Obligations under capital leases 36,016 47,413 Total debt $ 4,493,894 $ 5,063,703 Less: debt issue costs unamortized $ 75,405 $ 112,075 Total debt, net $ 4,418,489 $ 4,951,628 Less: Current portion of long-term debt $ 807,059 $ 766,354 Total long-term debt, net $ 3,611,430 $ 4,185,274 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of information about options for the periods presented | Number Of Weighted Average Aggregate Intrinsic Weighted Average Remaining Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2018 3,394,668 $ 0.417 $ 698,200 6.73 Granted 150,000 $ 0.800 — — Canceled (2,000 ) $ 1.960 — — Outstanding at 12/31/2018 3,542,668 $ 0.432 $ 2,039,662 6.56 Vested or expected to vest at 12/31/2018 3,542,668 $ 0.432 $ 2,039,662 6.56 Exercisable and vested at 12/31/2018 3,542,668 $ 0.432 $ 2,039,662 6.56 |
Summary of activity of stock options outstanding but not vested | Number of Options Weighted Average Exercise Price Outstanding but not vested at 3/31/2018 100,000 $ 0.60 Granted 150,000 $ 0.80 Vested (250,000 ) $ 0.72 Outstanding but not vested at 12/31/2018 — $ — |
Stock Based Compensation By Exercise Price Range | Range of Exercise Prices: Options Outstanding Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $0.01-$1.00 3,371,668 7.06 $ 0.37 3,371,668 $ 0.37 $1.01-$1.96 171,000 1.98 $ 1.58 171,000 $ 1.58 Totals 3,542,668 3,542,668 |
CONCENTRATION OF CREDIT RISK (T
CONCENTRATION OF CREDIT RISK (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | December 31, 2018 March 31, 2018 Customer Amount Percent Amount Percent A $ 110,619 75 % $ 394,454 27 % B $ 17,280 12 % * * % C $ * * % $ 432,084 30 % D $ * * % $ 263,098 18 % *less than 10% of total |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations | Three months ended December 31, 2018 Three months ended December 31, 2017 Nine months ended December 31, 2018 Nine months ended December 31, 2017 Basic EPS: Net income (loss) $ 218,022 $ (691,391 ) $ 563,122 $ 101,297 Basic weighted average shares 28,858,560 28,824,593 28,835,957 28,824,593 Basic income (loss) per share $ 0.01 $ (0.02 ) $ 0.02 $ 0.00 Diluted EPS: Net income (loss) $ 218,022 $ (691,391 ) $ 563,122 $ 101,297 Dilutive effect of stock options 1,568,658 — 1,322,552 740,248 Diluted weighted average shares 30,427,218 28,824,593 30,158,509 29,564,841 Diluted income (loss) per share $ 0.01 $ (0.02 ) $ 0.02 $ 0.00 |
ACCOUNTING STANDARDS UPDATES -o
ACCOUNTING STANDARDS UPDATES -opening and closing balances for inventories (Details) - USD ($) | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Inventories | $ 1,980,838 | $ 976,693 | $ 2,088,485 |
Contract assets | 7,968,711 | 2,056,414 | 347,896 |
Contract liabilities | $ 4,693,889 | $ 890,802 | $ 180,706 |
ACCOUNTING STANDARDS UPDATES-su
ACCOUNTING STANDARDS UPDATES-summarize the impact of the adoption of ASC 606 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | |
ASSETS | ||||||||||
Contract assets | $ 7,968,711 | $ 7,968,711 | $ 2,056,414 | $ 347,896 | ||||||
Inventories | 1,980,838 | 1,980,838 | 976,693 | 2,088,485 | ||||||
Deferred tax assets | 2,311,440 | 2,311,440 | 2,046,298 | |||||||
LIABILITIES | ||||||||||
Contract liabilities | 4,693,889 | 4,693,889 | $ 890,802 | 180,706 | ||||||
Accrued expenses | 878,112 | 878,112 | 788,084 | |||||||
SHAREHOLDERS' EQUITY | ||||||||||
Retained earnings | 455,785 | 455,785 | $ (576,617) | |||||||
Net sales | 4,270,396 | $ 3,642,294 | 11,990,404 | $ 14,061,574 | ||||||
Cost of sales | 3,299,166 | 8,871,550 | ||||||||
Selling, general and administrative | 631,783 | 596,271 | 2,113,285 | 2,236,371 | ||||||
Income (loss) before income taxes | 252,723 | 740,226 | ||||||||
Income tax provision (benefit) | 34,701 | $ 413,096 | 177,104 | $ 946,247 | ||||||
Net income (loss) | $ 218,022 | $ 563,122 | ||||||||
Net income (loss) per share – basic | $ 0.01 | $ (0.02) | $ 0.02 | $ 0 | ||||||
Net income (loss) per share – diluted | $ 0.01 | $ (0.02) | $ 0.02 | $ 0 | ||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net income | $ 218,022 | $ 180,715 | $ 164,385 | $ (691,391) | $ 368,186 | $ 424,502 | $ 563,122 | $ 101,297 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||
Change in contract loss provision | 24,541 | (43,815) | ||||||||
Deferred income taxes | 177,104 | 904,243 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Inventories | (1,004,145) | (385,013) | ||||||||
Contract assets | (5,912,297) | (65,500) | ||||||||
Accrued expenses | 202,860 | (28,712) | ||||||||
Contract liabilities | 3,803,087 | $ (66,121) | ||||||||
Restatement Adjustment [Member] | ||||||||||
ASSETS | ||||||||||
Contract assets | (7,968,711) | (7,968,711) | ||||||||
Inventories | 1,855,219 | 1,855,219 | ||||||||
Deferred tax assets | 621,462 | 621,462 | ||||||||
LIABILITIES | ||||||||||
Contract liabilities | (3,787,769) | (3,787,769) | ||||||||
Accrued expenses | (56,266) | (56,266) | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Retained earnings | (1,628,348) | (1,628,348) | ||||||||
Net sales | (2,411,222) | (6,260,193) | ||||||||
Cost of sales | (1,839,628) | (4,015,449) | ||||||||
Selling, general and administrative | (893) | (2,320) | ||||||||
Income (loss) before income taxes | (570,701) | (2,242,425) | ||||||||
Income tax provision (benefit) | (159,325) | (614,077) | ||||||||
Net income (loss) | $ (411,376) | $ (1,628,348) | ||||||||
Net income (loss) per share – basic | $ (0.02) | $ (0.04) | ||||||||
Net income (loss) per share – diluted | $ (0.02) | $ (0.04) | ||||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net income | $ (1,628,348) | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||
Change in contract loss provision | 35,915 | |||||||||
Deferred income taxes | (614,077) | |||||||||
Changes in operating assets and liabilities: | ||||||||||
Inventories | (1,855,219) | |||||||||
Contract assets | 7,968,711 | |||||||||
Accrued expenses | (111,828) | |||||||||
Contract liabilities | (3,787,769) | |||||||||
Previously Reported [Member] | ||||||||||
ASSETS | ||||||||||
Contract assets | $ 0 | 0 | ||||||||
Inventories | 3,836,057 | 3,836,057 | ||||||||
Deferred tax assets | 2,932,902 | 2,932,902 | ||||||||
LIABILITIES | ||||||||||
Contract liabilities | 906,120 | 906,120 | ||||||||
Accrued expenses | 821,846 | 821,846 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Retained earnings | (1,172,563) | (1,172,563) | ||||||||
Net sales | 1,859,174 | 5,730,211 | ||||||||
Cost of sales | 1,459,538 | 4,856,101 | ||||||||
Selling, general and administrative | 630,890 | 2,110,965 | ||||||||
Income (loss) before income taxes | (317,978) | (1,502,199) | ||||||||
Income tax provision (benefit) | (124,624) | (436,973) | ||||||||
Net income (loss) | $ (193,354) | $ (1,065,226) | ||||||||
Net income (loss) per share – basic | $ (0.01) | $ (0.02) | ||||||||
Net income (loss) per share – diluted | $ (0.01) | $ (0.02) | ||||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net income | $ (1,065,226) | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||
Change in contract loss provision | 60,456 | |||||||||
Deferred income taxes | (436,973) | |||||||||
Changes in operating assets and liabilities: | ||||||||||
Inventories | (2,859,364) | |||||||||
Contract assets | 2,056,414 | |||||||||
Accrued expenses | 91,033 | |||||||||
Contract liabilities | $ 15,318 |
ACCOUNTING STANDARDS UPDATES -
ACCOUNTING STANDARDS UPDATES - Summary (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Apr. 01, 2018 | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 19,647 | ||
New Accounting Pronouncement or Change in Accounting Principle Tax Effect | 7,385 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ 2,400,000 | $ 6,300,000 | |
Accounting Standards Update 2016-16 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 400,000 |
REVENUE - disaggregated basis (
REVENUE - disaggregated basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 4,270,396 | $ 11,990,404 |
Over-time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 4,086,713 | 11,314,849 |
Point-in-time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 183,683 | 675,555 |
Defense [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 3,890,782 | 11,009,204 |
Energy [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 371,864 | 798,356 |
Industrial [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 7,750 | $ 182,844 |
REVENUE - net sales from custo
REVENUE - net sales from customers (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||
Revenues | $ 4,270,396 | $ 3,642,294 | $ 11,990,404 | $ 14,061,574 | |||||
Sales Revenue, Net [Member] | |||||||||
Revenues | [1] | ||||||||
Customer A [Member] | Sales Revenue, Net [Member] | |||||||||
Revenues | $ 1,183,208 | [1] | $ 4,293,047 | $ 5,284,925 | |||||
Concentration Risk, Percentage | 28.00% | [1] | 36.00% | 38.00% | |||||
Customer B [Member] | Sales Revenue, Net [Member] | |||||||||
Revenues | $ 1,008,263 | $ 775,042 | $ 2,609,284 | [1] | |||||
Concentration Risk, Percentage | 24.00% | 21.00% | 22.00% | [1] | |||||
Customer C [Member] | Sales Revenue, Net [Member] | |||||||||
Revenues | $ 1,124,294 | $ 704,215 | $ 2,117,342 | $ 3,034,304 | |||||
Concentration Risk, Percentage | 26.00% | 19.00% | 18.00% | 22.00% | |||||
Customer D [Member] | Sales Revenue, Net [Member] | |||||||||
Revenues | $ 638,843 | [1] | [1] | ||||||
Concentration Risk, Percentage | [1] | 18.00% | [1] | [1] | |||||
Customer E [Member] | Sales Revenue, Net [Member] | |||||||||
Revenues | [1] | $ 576,487 | [1] | [1] | |||||
Concentration Risk, Percentage | [1] | 16.00% | [1] | [1] | |||||
[1] | less than 10% of total |
REVENUE - additional informatio
REVENUE - additional information (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 14.1 |
Revenue Remaining Performance Obligation Completed Less Than 50 | $ 11.1 |
Revenue, Remaining Performance Obligation, Percentage | 50.00% |
CONTRACT ASSETS and CONTRACT _2
CONTRACT ASSETS and CONTRACT LIABILITIES (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Contract with Customer, Asset, Cumulative Catch-up Adjustment to Revenue, Change in Measure of Progress | $ 5.9 |
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized | $ 3.8 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Raw materials | $ 618,616 | $ 202,737 | |
Work-in-process | 1,362,222 | 1,885,748 | |
Totals | $ 1,980,838 | $ 976,693 | $ 2,088,485 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Payments advanced to suppliers | $ 143,048 | $ 82,520 |
Prepaid insurance | 199,921 | 211,823 |
Prepaid subscriptions | 27,497 | 38,836 |
Prepaid taxes | 62,791 | 59,792 |
Employee advances | 7,366 | 26,869 |
Other | 24,091 | 30,700 |
Totals | $ 464,714 | $ 450,540 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | $ 13,903,337 | $ 13,903,337 | $ 13,500,457 | ||
Less: accumulated depreciation | (8,856,580) | (8,856,580) | (8,298,009) | ||
Total property, plant and equipment, net | 5,046,757 | 5,046,757 | 5,202,448 | ||
Depreciation expense | 186,511 | $ 172,218 | 558,571 | $ 523,640 | |
Interest Costs Capitalized | 2,882 | 14,791 | |||
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 | 10,483,341 | 10,483,341 | 10,058,797 | ||
Construction in progress | |||||
Property, Plant and Equipment, Net | |||||
Construction in progress | 2,599 | 2,599 | 24,263 | ||
Equipment under capital leases | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 54,376 | 54,376 | 54,376 | ||
Less: accumulated depreciation | $ (21,750) | $ (21,750) | $ (13,594) |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Accrued Expenses | ||
Accrued compensation | $ 478,228 | $ 383,060 |
Accrued professional fees | 181,828 | 152,501 |
Provision for contract losses | 24,541 | 200,897 |
Accrued project costs | 108,875 | 0 |
Other | 84,640 | 51,626 |
Total | $ 878,112 | $ 788,084 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Long-term Debt | ||
Total debt | $ 4,493,894 | $ 5,063,703 |
Less: debt issue costs unamortized | 75,405 | 112,075 |
Total debt, net | 4,418,489 | 4,951,628 |
Less: Current portion of long-term debt | 807,059 | 766,354 |
Total long-term debt, net | 3,611,430 | 4,185,274 |
Berkshire Term Loan due December 2021 | ||
Long-term Debt | ||
Total debt | 2,679,952 | 2,745,181 |
People's Equipment Loan Facility due April 2021 | ||
Long-term Debt | ||
Total debt | 1,777,926 | 2,271,109 |
Obligations under capital leases | ||
Long-term Debt | ||
Total debt | $ 36,016 | $ 47,413 |
DEBT - Berkshire Bank & Trust C
DEBT - Berkshire Bank & Trust Company Loan Facility (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 19, 2018USD ($) | Jan. 20, 2017 | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 21, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Debt Instrument Covenant Leverage Ratio Year Three And Thereafter | 0.78 | ||||
Debt Instrument, Frequency of Periodic Payment | payments on the Term Loan began and will be made in 60 monthly installments of $19,260 each | ||||
Payment Of Loan Related To Execution Of Modification | $ 7,245 | ||||
Berkshire Loan | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Debt Service Coverage Ratio Threshold | 1.2 | ||||
Debt Instrument Covenant Leverage Ratio Year One | 3 | ||||
Debt Instrument Covenant Leverage Ratio Year Two | 2.50 | ||||
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 Trailing Period For Measurement Of Loan To Value Ratio | 365 days | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||||
Unamortized Debt Issuance Expense | $ 43,319 | $ 45,936 | |||
Berkshire Loan | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Covenant Loan To Value Ratio | 1 | ||||
Berkshire Loan | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Covenant Loan To Value Ratio | 0.75 | ||||
Berkshire Loan | Ranor, Inc. | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 2,850,000 | ||||
Berkshire Loan | Ranor, Inc. | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.21% | ||||
Debt Instrument, Maturity Date | Dec. 20, 2021 |
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 ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Oct. 04, 2016USD ($) | |
People's Capital and Leasing Corp | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Debt Service Coverage Ratio | 1.5 | |||
Unamortized Debt Issuance Expense | $ 66,139 | $ 39,224 | ||
MLSA | Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 365,852 | |||
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 ($) | |
Debt | |
Capital lease term | 60 months |
Capital lease interest rate (as a percent) | 7.90% |
Capital lease monthly payment | $ 1,100 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit) | $ 34,701 | $ 413,096 | $ 177,104 | $ 946,247 |
Effective Income Tax Rate Reconciliation, Percent | 23.90% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | ||
Deferred Tax Assets, Valuation Allowance | $ 1,700,000 | $ 1,700,000 |
PROFIT SHARING PLAN (Details)
PROFIT SHARING PLAN (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
PROFIT SHARING PLAN | ||
Matching contributions made by the company | $ 59,859 | |
Ranor, Inc. | ||
PROFIT SHARING PLAN | ||
Eligibility for employer matching contributions, period of service | 90 days | |
Matching contributions made by the company | $ 61,251 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary (Details) - USD ($) | Dec. 07, 2018 | Jul. 11, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Share based compensation | |||||
Options granted (in shares) | 150,000 | ||||
Exercise price of shares granted (in dollars per share) | $ 0.80 | ||||
Assumption used in valuation of stock options | |||||
Share-based Compensation | $ 106,727 | $ 226,935 | |||
Fair value of shares vested | 96,519 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 25,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 12,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.58% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 104.90% | ||||
Restricted Stock [Member] | |||||
Assumption used in valuation of stock options | |||||
Stock based compensation cost | 122,500 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 112,291 | 112,291 | |||
Stock option [Member] | |||||
Assumption used in valuation of stock options | |||||
Share-based Compensation | $ 10,209 | $ 46,658 | |||
2016 Plan | |||||
Assumption used in valuation of stock options | |||||
Shares reserved | 5,000,000 | 5,000,000 | |||
Shares available for grant | 1,332,332 | 1,332,332 | |||
CEO&CFO [Member] | |||||
Share based compensation | |||||
Options granted (in shares) | 150,000 | ||||
Exercise price of shares granted (in dollars per share) | $ 0.80 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Mar. 31, 2018 | |
Number Of Options | ||
Outstanding at the beginning of the period (in shares) | 3,394,668 | |
Granted (in shares) | 150,000 | |
Canceled (in shares) | (2,000) | |
Outstanding at the end of the period (in shares) | 3,542,668 | 3,394,668 |
Vested or expected to vest at the end of the period (in shares) | 3,542,668 | |
Exercisable and vested at the end of the period (in shares) | 3,542,668 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 0.417 | |
Granted (in dollars per share) | 0.80 | |
Canceled (in dollars per share) | 1.960 | |
Outstanding at the end of the period (in dollars per share) | 0.432 | $ 0.417 |
Vested or expected to vest at the end of the period (in dollars per share) | 0.432 | |
Exercisable and vested at the end of the period (in dollars per share) | $ 0.432 | |
Aggregate Intrinsic Value | ||
Outstanding Value | $ 2,039,662 | $ 698,200 |
Granted | 0 | |
Canceled | 0 | |
Vested or expected to vest at the end of the period | 2,039,662 | |
Exercisable and vested at the end of the period | $ 2,039,662 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at the end of the period | 6 years 6 months 22 days | 6 years 8 months 23 days |
Vested or expected to vest at the end of the period | 6 years 6 months 22 days | |
Exercisable and vested at the end of the period | 6 years 6 months 22 days |
STOCK BASED COMPENSATION - St_2
STOCK BASED COMPENSATION - Stock Options Outstanding (Details) | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Stock options outstanding but not vested, Number of Options | |
Outstanding at the beginning of the period (in shares) | shares | 100,000 |
Granted (in shares) | shares | 150,000 |
Vested (in shares) | shares | (250,000) |
Outstanding at the end of the period (in shares) | shares | 0 |
Stock options outstanding but not vested, Weighted Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0.60 |
Granted (in dollars per share) | $ / shares | 0.80 |
Vested (in dollars per share) | $ / shares | 0.72 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 0 |
STOCK BASED COMPENSATION - St_3
STOCK BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details) | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | shares | 3,542,668 |
Options Exercisable | shares | 3,542,668 |
Range One | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | $ 0.01 |
Exercise Price, Upper Range | $ 1 |
Options Outstanding | shares | 3,371,668 |
Options Outstanding, Weighted Average Remaining Contractual Term | 7 years 22 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.37 |
Options Exercisable | shares | 3,371,668 |
Options Exercisable, Weighted Average Exercise Price | $ 0.37 |
Range Two | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | 1.01 |
Exercise Price, Upper Range | $ 1.96 |
Options Outstanding | shares | 171,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 11 months 23 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.58 |
Options Exercisable | shares | 171,000 |
Options Exercisable, Weighted Average Exercise Price | $ 1.58 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2018 | |||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 147,788 | $ 1,446,982 | ||
Accounts Receivable | Customer Concentration Risk | ||||
Concentration of credit risk and major customers | ||||
Concentration risk percentage | 75.00% | |||
Accounts Receivable | Customer Concentration Risk | Customer A | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 110,619 | $ 394,454 | ||
Concentration risk percentage | 75.00% | 27.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer B | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 17,280 | [1] | ||
Concentration risk percentage | 12.00% | [1] | ||
Accounts Receivable | Customer Concentration Risk | Customer C | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | [1] | $ 432,084 | ||
Concentration risk percentage | [1] | 30.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer D | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | [1] | $ 263,098 | ||
Concentration risk percentage | [1] | 18.00% | ||
[1] | less than 10% of total |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments | |
Employee Agreement Annual Commitment For Vacation And Holiday | $ 0.3 |
Employee Agreement Annual Commitment For Future Salaries During Next Fiscal Year | $ 0.5 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic EPS: | ||||||||
Net income (loss) | $ 218,022 | $ 180,715 | $ 164,385 | $ (691,391) | $ 368,186 | $ 424,502 | $ 563,122 | $ 101,297 |
Basic weighted average shares | 28,858,560 | 28,824,593 | 28,835,957 | 28,824,593 | ||||
Basic income (loss) per share | $ 0.01 | $ (0.02) | $ 0.02 | $ 0 | ||||
Diluted EPS: | ||||||||
Net income (loss) | $ 218,022 | $ 180,715 | $ 164,385 | $ (691,391) | $ 368,186 | $ 424,502 | $ 563,122 | $ 101,297 |
Dilutive effect of stock options | 1,568,658 | 0 | 1,322,552 | 740,248 | ||||
Diluted weighted average shares | 30,427,218 | 28,824,593 | 30,158,509 | 29,564,841 | ||||
Diluted income (loss) per share | $ 0.01 | $ (0.02) | $ 0.02 | $ 0 | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 171,000 | 2,590,418 | 642,668 | 1,796,668 |