Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 08, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | TECHPRECISION CORP | |
Entity Central Index Key | 0001328792 | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Title of 12(b) Security | None | |
Trading Symbol | TPCS | |
Security Exchange Name | NONE | |
Entity Address, State or Province | MA | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,254,594 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,530,353 | $ 2,036,646 |
Accounts receivable, net | 866,062 | 1,010,443 |
Contract assets | 2,873,611 | 4,390,832 |
Inventories | 1,201,798 | 1,240,315 |
Other current assets | 419,840 | 498,059 |
Total current assets | 8,891,664 | 9,176,295 |
Property, plant and equipment, net | 4,680,804 | 4,860,609 |
Deferred income taxes | 1,914,128 | 2,004,346 |
Other noncurrent assets, net | 5,333 | 6,233 |
Total assets | 15,491,929 | 16,047,483 |
Current liabilities: | ||
Accounts payable | 266,443 | 609,082 |
Accrued expenses | 872,949 | 753,499 |
Contract liabilities | 339,850 | 740,947 |
Current portion of long-term debt | 837,844 | 822,105 |
Total current liabilities | 2,317,086 | 2,925,633 |
Long-term debt | 3,205,112 | 3,410,542 |
Commitments and contingent liabilities (Note 13) | ||
Stockholders' Equity: | ||
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 29,254,594 and 29,234,594 shares issued and outstanding, at June 30, 2019 and March 31, 2019 | 2,925 | 2,923 |
Additional paid in capital | 8,730,929 | 8,693,106 |
Accumulated other comprehensive income | 21,761 | 21,940 |
Retained earnings | 1,214,116 | 993,339 |
Total stockholders' equity | 9,969,731 | 9,711,308 |
Total liabilities and stockholders' equity | $ 15,491,929 | $ 16,047,483 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Mar. 31, 2019 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 29,254,594 | 29,234,594 |
Common stock, shares outstanding | 29,254,594 | 29,234,594 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net sales | $ 4,334,268 | $ 4,098,823 |
Cost of sales | 3,224,767 | 3,046,299 |
Gross profit | 1,109,501 | 1,052,524 |
Selling, general and administrative | 741,413 | 730,465 |
Income from operations | 368,088 | 322,059 |
Other income | 19,430 | 2,740 |
Interest expense | (76,523) | (95,385) |
Total other expense, net | (57,093) | (92,645) |
Income before income taxes | 310,995 | 229,414 |
Income tax expense | 90,218 | 65,029 |
Net income | 220,777 | 164,385 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (179) | (1,911) |
Other comprehensive loss, net of tax | (179) | (1,911) |
Comprehensive income | $ 220,598 | $ 162,474 |
Net income per share – basic | $ 0.01 | $ 0.01 |
Net income per share – diluted | $ 0.01 | $ 0.01 |
Weighted average number of shares outstanding – basic | 29,253,495 | 28,824,593 |
Weighted average number of shares outstanding – diluted | 30,711,007 | 29,096,727 |
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, 2018 | $ 8,012,496 | $ 2,882 | $ 8,561,995 | $ 24,236 | $ (576,617) |
Balance (in shares) at Mar. 31, 2018 | 28,824,593 | ||||
Stock based compensation | 24,930 | 24,930 | |||
Net income | 164,385 | 164,385 | |||
Foreign currency translation adjustment | (1,911) | (1,911) | |||
Effect of adoption of ASC 606 | Accounting Standards Update 2014-09 [Member] | 19,647 | 19,647 | |||
Effect of Accounting Standards Update 2016-16 | 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, 2019 | 9,711,308 | $ 2,923 | |||
Balance (in shares) at Mar. 31, 2019 | 29,234,594 | 8,693,106 | 21,940 | 993,339 | |
Non-vested restricted stock | 30,625 | $ 30,625 | |||
Shares issued under long-term incentive plan | 7,200 | $ 2 | 7,198 | ||
Shares issued under long-term incentive plan (in shares) | 20,000 | ||||
Net income | 220,777 | $ 220,777 | |||
Foreign currency translation adjustment | (179) | $ (179) | |||
Balance at Jun. 30, 2019 | $ 9,969,731 | $ 2,925 | $ 8,730,929 | $ 21,761 | $ 1,214,116 |
Balance (in shares) at Jun. 30, 2019 | 29,254,594 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 220,777 | $ 164,385 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 190,005 | 185,585 |
Amortization of debt issue costs | 10,741 | 15,231 |
Stock based compensation expense | 30,625 | 24,930 |
Change in contract loss provision | 120,393 | (15,875) |
Deferred income taxes | 90,218 | 65,029 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 144,381 | 730,574 |
Contract assets | 1,517,221 | (2,119,085) |
Inventories | 38,517 | (48,518) |
Other current assets | 78,219 | 34,868 |
Accounts payable | (342,639) | (12,907) |
Accrued expenses | 5,915 | 118,339 |
Contract liabilities | (401,097) | 567,517 |
Net cash provided by (used in) operating activities | 1,703,276 | (289,927) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (10,200) | (101,695) |
Net cash used in investing activities | (10,200) | (101,695) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of long-term debt | (199,533) | (186,896) |
Net cash used in financing activities | (199,533) | (186,896) |
Effect of exchange rate on cash and cash equivalents | 164 | 661 |
Net increase (decrease) in cash and cash equivalents | 1,493,707 | (577,857) |
Cash and cash equivalents, beginning of period | 2,036,646 | 2,689,110 |
Cash and cash equivalents, end of period | 3,530,353 | 2,111,253 |
Cash paid during the year for: | ||
Interest | 65,723 | 80,066 |
Income taxes | $ 0 | $ 0 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2019 | |
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 and aerospace, nuclear, medical, and precision industrial. We consider our business to consist of one segment - metal fabrication and precision machining. All of our operations and customers are located in the United States. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2019 | |
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 These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, or the 2019 Form 10-K, filed with the SEC on June 27, 2019. Use of Estimates in the Preparation of Financial Statements - |
ACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE | 3 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING STANDARDS UPDATE | NOTE 3 – ACCOUNTING STANDARDS UPDATE New Accounting Standards Recently Adopted On April 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases, or Accounting Standards Codification 842 (ASC 842) and all the related amendments using the modified retrospective method. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. The most significant effects of the standard on our condensed consolidated financial statements are (1) the recognition of new right-of-use asset and lease liability on our condensed consolidated balance sheet for our operating lease, and (2) new disclosures about our leasing activities (see Note 12). The adoption did not result in a cumulative-effect adjustment to retained earnings. The new standard did not have a material impact on our results of operations, balance sheet or cash flows. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. The new lease standard requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We also adopted the following ASUs effective April 1, 2019, none of which had a material impact to our financial statements or financial statement disclosures: ASU 2108-13 Fair Value Measurement - Changes to the Disclosure Requirements for Fair Value Measurement, ASU 2018-07, Compensation - Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting, and ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . |
REVENUE
REVENUE | 3 Months Ended |
Jun. 30, 2019 | |
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 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 June 30, 2019 $ 3,409,291 $ 261,666 $ 663,311 $ 4,334,268 Three months ended June 30, 2018 $ 3,809,087 $ 261,430 $ 28,306 $ 4,098,823 Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2019 $ 3,052,938 $ 1,281,330 $ 4,334,268 Three months ended June 30, 2018 $ 3,838,927 $ 259,896 $ 4,098,823 As of June 30, 2019, the Company had $12.5 million of remaining performance obligations, of which $9.6 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue within the next 24 months. 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 three months ended: June 30, 2019 June 30, 2018 Customer Amount Percent Amount Percent A $ 1,255,055 29 % $ 1,593,440 39 % B $ * * % $ 1,015,148 25 % C $ 1,050,577 24 % $ * * % D $ 618,019 14 % $ * * % E $ 549,192 13 % $ * * % *Less than 10% of total On At June 30, 2019 contract assets consisted of the following: Contract assets Unbilled Progress Total June 30, 2019 $ 8,771,341 $ (5,897,730 ) $ 2,873,611 March 31, 2019 $ 9,324,361 $ (4,933,529 ) $ 4,390,832 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 5 - INCOME TAXES We account for income taxes under the provisions of FASB ASC 740, Income Taxes . The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. The provision for income taxes was $90,218 and $65,029 for the three months ended June 30, 2019 and 2018, respectively. The Company's earnings are primarily domestic, and its effective tax rates on earnings from operations for the three months ended June 30, 2019 and 2018 was 29.0% and 28.4%. The valuation allowance on deferred tax assets was approximately $1.7 million at June 30, 2019. We believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards and other deferred tax assets will not be realized. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, the Company could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in the Company’s effective tax rate. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 - EARNINGS PER SHARE Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260. June 30, 2019 June 30, 2018 Basic EPS Net income $ 220,777 $ 164,385 Weighted average shares 29,253,495 28,824,593 Basic income per share $ 0.01 $ 0.01 Diluted EPS Net income $ 220,777 $ 164,385 Dilutive effect of stock options 1,457,512 272,134 Diluted weighted average shares 30,711,007 29,096,727 Diluted income per share $ 0.01 $ 0.01 All potential common stock equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three months ended June 30, 2019 and 2018, there were 98,000 and 862,668, respectively, of potentially anti-dilutive stock options, none of which were included in the EPS calculations above. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 7 - STOCK-BASED COMPENSATION The TechPrecision Corporation 2016 Equity Incentive Plan, or the 2016 Plan, authorizes the award of incentive and non-qualified stock options, restricted stock awards, restricted stock units, and performance awards to employees, directors, consultants, and other individuals who provide services to TechPrecision or its affiliates. The purpose of the 2016 Plan is to: (a) enable TechPrecision and its affiliated companies to recruit and retain highly qualified employees, directors and consultants; (b) provide those employees, directors and consultants with an incentive for productivity; and (c) provide those employees, directors and consultants with an opportunity to share in the growth and value of the Company. Subject to adjustment as provided in the 2016 Plan, the maximum number of shares of common stock that may be issued with respect to awards under the 2016 Plan is 5,000,000 shares (inclusive of awards issued under the 2006 Long-Term Incentive Plan, or the 2006 Plan, that remained outstanding as of the effective date of the 2016 Plan). Shares of our common stock subject to awards that expire unexercised or are otherwise forfeited shall again be available for awards under the 2016 Plan. The fair value of the options we grant is estimated using the Black-Scholes option-pricing model based on the closing stock prices at the grant date and the weighted average assumptions specific to the underlying options. Expected volatility assumptions are based on the historical volatility of our common stock. The average dividend yield over the historical period for which volatility is computed is zero. The risk-free interest rate is selected based upon yields of U.S. Treasury issues. We used the simplified method for all grants to estimate the expected life of the option. We assume that stock options will be exercised evenly over the period from vesting until the awards expire. We account for award forfeitures as they occur. As such, the assumed period for each vesting tranche is computed separately and then averaged together to determine the expected term for the award. At June 30, 2019, there were 1,572,000 shares available for grant under the 2016 Plan. The following table summarizes information about options for the two most recently completed fiscal years: 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 6.72 Granted 150,000 $ 0.800 Exercised (365,000 ) $ 0.271 Canceled (241,668 ) $ 1.226 Outstanding at 3/31/2019 2,938,000 $ 0.416 $ 1,869,200 6.74 Exercised (20,000 ) $ 0.360 Outstanding at 6/30/2019 2,918,000 $ 0.416 $ 2,828,800 6.59 Vested or expected to vest at 6/30/2019 2,918,000 $ 0.416 $ 2,828,800 6.59 Exercisable and vested at 6/30/2019 2,918,000 $ 0.416 $ 2,828,800 6.59 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on the last trading day of the first quarter of fiscal 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2019. This amount changes based on the fair market value of the Company’s common stock. All of the options are vested and exercisable and the maximum contractual term is ten years for option grants. On April 5, 2019, the Company issued 20,000 shares of the Company’s common stock, par value $0.0001 per share, pursuant to an option award exercised on March 20, 2019, granted previously under the Company’s 2016 Long-Term Incentive Plan. Range of Exercise Prices: Options Outstanding Weighted Average Remaining Contractual Term Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $0.01-$1.00 2,820,000 7.01 $ 0.37 2,820,000 $ 0.37 $1.01-$1.96 98,000 1.68 $ 1.84 98,000 $ 1.84 Totals 2,918,000 2,918,000 Restricted Stock Awards On December 7, 2018 we granted a total of 100,000 shares of restricted stock under the 2016 Plan to the board of directors and a total of 25,000 shares of restricted stock to our executive officers. The stock-based compensation expense of $122,500 for service-based restricted stock was measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. 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 a director or 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 June 30, 2019 was $30,625. At June 30, 2019 there was $51,042 of total unrecognized compensation cost related to the restricted stock awards. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 3 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 8 - CONCENTRATION OF CREDIT RISK We maintain bank account balances, which, at times, may exceed insured limits. We have not experienced any losses with these accounts and believe that we are not exposed to any significant credit risk on cash. At June 30, 2019, there were trade accounts receivable balances outstanding from four customers comprising 88% of the total trade receivables balance. The following table sets forth information as to trade accounts receivable from customers who accounted for more than 10% of our accounts receivable balance as of: June 30, 2019 March 31, 2019 Customer Dollars Percent Dollars Percent A $ * * % $ 339,032 34 % B $ 268,538 31 % $ 246,019 24 % C $ 225,491 26 % $ * * % D $ * * % $ 244,500 24 % E $ 162,494 19 % $ * * % F $ 103,300 12 % $ * * % *less than 10% of total |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Jun. 30, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
OTHER CURRENT ASSETS | NOTE 9 - OTHER CURRENT ASSETS June 30, 2019 March 31, 2019 Payments advanced to suppliers $ 88,628 $ 133,861 Prepaid insurance 158,998 203,601 Prepaid subscriptions 31,723 27,096 Prepaid taxes 31,707 31,707 Refundable AMT credits 60,841 60,841 Employee advances 22,219 15,380 Other 25,724 25,573 Total $ 419,840 $ 498,059 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 10 - ACCRUED EXPENSES June 30, 2019 March 31, 2019 Accrued compensation $ 348,053 $ 284,651 Provision for contract losses 178,185 57,792 Accrued professional fees 265,532 267,309 Accrued project costs 42,572 118,929 Other 38,607 24,818 Total $ 872,949 $ 753,499 Accrued compensation includes amounts for executive bonuses, payroll and vacation and holiday pay. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in the provision are recorded in cost of sales. Accrued project costs are estimates for certain project expenses during the reporting period. |
DEBT
DEBT | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 11 - DEBT June 30, 2019 March 31, 2019 Berkshire Term Loan due January 2022 $ 2,634,481 $ 2,656,985 People’s Equipment Loan Facility due April 2021 1,432,582 1,606,953 Obligation under finance lease 30,753 33,411 Total debt $ 4,097,816 $ 4,297,349 Less: debt issue costs unamortized $ 54,860 $ 64,702 Total debt, net $ 4,042,956 $ 4,232,647 Less: Current portion of long-term debt $ 837,844 $ 822,105 Total long-term debt, net $ 3,205,112 $ 3,410,542 Berkshire Term Loan Facility On December 21, 2016, TechPrecision, through Ranor, closed on a Loan Agreement, or the Berkshire Loan Agreement, with Berkshire Bank. Pursuant to the Berkshire Loan Agreement, Berkshire Bank made a term loan to Ranor in the amount of $2,850,000, or the Term Loan, and made available to Ranor a revolving line of credit in the amount of $1,000,000, or the Revolver Loan, and together with the Term Loan, collectively, the Berkshire Loans. The Berkshire Loans are secured by a first lien on all personal and real property of Ranor. Payments on the Term Loan began on January 20, 2017 and will be made in 60 monthly installments of $19,260 each, inclusive of interest at a fixed rate of 5.21% per annum, with all outstanding principal and accrued interest due and payable on December 20, 2021. A prepayment penalty will apply during the loan term but will not apply if a prepayment is made from either casualty loss insurance proceeds or a condemnation award applicable to any collateral or if a full prepayment is made during the 45-day period immediately preceding the maturity date. Advances under the Revolver Loan will be subject to a borrowing base equal to the lesser of (A) $1,000,000 and (B) the sum of (i) 80% of eligible accounts receivable, and (ii) the lesser of (a) 25% of eligible raw material inventory and (b) $250,000. Advances made under the Revolver Loan bear interest at a variable rate equal to the one-month LIBOR plus 275 basis points Pursuant to the Berkshire Loan Agreement, the Company covenants to cause its balance sheet leverage to be less than or equal to 2.50 to 1.00 for the fiscal year ending March 31, 2019 and each fiscal year end thereafter. The Berkshire Loan Agreement also contains a covenant whereby the Company is required to maintain a debt service coverage ratio or DSCR, of at least 1.2 to 1.0 during the term of the Berkshire Loans. The DSCR is measured at the end of each fiscal quarter of the Company. The Company was in compliance with all of the financial covenants at June 30, 2019 and March 31, 2019. Also, Ranor’s annual capital expenditures cannot exceed $1,500,000 for the fiscal year ending March 31, 2020 and each fiscal year thereafter. The Berkshire Loan Agreement contains an additional covenant whereby Ranor is required to maintain a loan to value ratio of not greater than 0.75 to 1.00, to be measured by appraisal not more frequently than one time during each 365-day period. The Berkshire Loans may be accelerated upon the occurrence of an “Event of Default” (as defined in the Berkshire Loan Agreement). Events of Default include (i) the failure to pay any monthly installment payment before the tenth day following the due date of such payment; (ii) the failure of Ranor or TechPrecision to observe, perform or pay any obligations under the Berkshire Loan Agreement or any other obligation to Berkshire; (iii) the failure of Ranor or TechPrecision to pay any indebtedness in excess of $100,000 (other than the Berkshire Loans) when due; (iv) any representation or warranty of Ranor or TechPrecision in the Berkshire Loan Agreement and related documents, or the Loan Documents, being proven to have been incorrect, in any material respect, when made; (v) the failure of Ranor to discharge any attachment, levy or distraint on its property; (vi) any default by Ranor or TechPrecision under any of the collateral security documents executed in connection with the Berkshire Loan Agreement past any applicable grace period; (vii) the failure of Ranor or TechPrecision to file or pay taxes when due, unless such taxes are being contested in a manner permitted under the Loan Documents; (viii) a change in ownership or control of Ranor or change in management of Ranor where either the chief executive officer or chief financial officer as of December 21, 2016 is replaced without Berkshire Bank’s prior consent; (ix) Ranor or TechPrecision ceasing to do business as a going concern, making an assignment for the benefit of creditors, or commencing a bankruptcy or other similar insolvency proceeding; and (x) the entry of a judgment against Ranor or TechPrecision in excess of $150,000. Some of the Events of Default are subject to certain cure periods. Subject to the lapse of any applicable cure period, a default under the Berkshire Loans could cause the acceleration of all outstanding obligations under the Berkshire Loans. 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 the Berkshire Loan Agreement, and the related Promissory Note dated December 20, 2016 made by Ranor in favor of Berkshire in the stated principal amount of $1,000,000. Under the terms of the Berkshire Loan Agreement and the related promissory note, Ranor was entitled to borrow up to $1,000,000 on a revolving basis. As of the date of the Modification, there were no amounts outstanding under the Revolver Loan. The maturity date of the Revolver Loan was originally December 20, 2018. Under the Modification, the maturity date of the Revolver Loan was extended until December 20, 2020. There were no amounts outstanding under the Revolver Loan at June 30, 2019 and March 31, 2019.The Company paid $7,245 of expenses related to the execution of the Modification, which are classified as other noncurrent assets. Other unamortized debt issue costs at June 30, 2019 and March 31, 2019 were $29,833 and $32,982, respectively. People’s Equipment Loan Facility On April 26, 2016, TechPrecision, through Ranor, executed and closed a Master Loan and Security Agreement No. 4180, as supplemented with Schedule No. 001, or, together, the MLSA, with People’s Capital and Leasing Corp., or People’s. The MLSA is dated and effective as of March 31, 2016. Loan proceeds were disbursed to Ranor on April 26, 2016. Pursuant to the MLSA, People’s loaned $3,011,648 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 first monthly installment payment was paid on May 26, 2016. A prepayment penalty will apply during the first four years of the loan term. Ranor’s obligations under the MLSA are guaranteed by TechPrecision. The Company covenants to maintain a DSCR of at least 1.5 to 1.0 during the term of the People’s Loan. The DSCR is measured at the end of each fiscal year of the Company. The Company was in compliance with the DSCR at March 31, 2019. The People’s Loan 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. The Company was in compliance with all of the financial covenants at March 31, 2019. On October 4, 2016, TechPrecision and Ranor became committed to Schedule No. 002 to the MLSA, or Schedule 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. Ranor will repay the Additional People’s Loan in monthly installments of principal and interest of $7,399 over 60 months. 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. On December 21, 2016, TechPrecision and Ranor closed on an Amendment to the MLSA, or the MLSA Amendment, with People’s. The MLSA Amendment, dated as of December 20, 2016, amends the definition of “Permitted Liens” under the MLSA to include the liens held by Berkshire Bank pursuant to the terms of the Berkshire Loan Agreement and to delete the reference to the liens held by a former creditor of the Company. Unamortized debt issue costs at June 30, 2019 and March 31, 2019, were $25,027 and 31,720, 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. Finance Lease See Note 12 for information regarding our obligations under the finance lease. |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | NOTE 12 – LEASES Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased, or right-of-use assets in finance lease arrangements are reported in net property, plant and equipment on our condensed consolidated balance sheet. The lease classified as an operating lease has a remaining term of three months and is reported in other current assets on our condensed consolidated balance sheet. Right-of-use assets and liabilities on our condensed consolidated balance sheet at June 30, 2019 were: June 30, 2019 Operating lease: Other current assets $ 898 Other current liabilities $ 898 Finance lease: Property, plant and equipment $ 54,376 Accumulated depreciation 27,188 Net property, plant and equipment $ 27,188 Current portion of long-term debt $ 11,168 Long-term debt $ 19,585 Total finance lease liabilities $ 30,753 One payment remains under our operating lease. Future payments for our finance lease are as follows: 2020: $9,900, 2021: $13,200 and 2022: $11,000. The amount representing finance lease interest is $3,347. Other supplemental information regarding our leases are contained in the following tables: Components of lease expense for the period ended: June 30, 2019 Operating lease amortization $ 865 Operating lease interest $ 59 Finance lease amortization $ 2,719 Finance lease interest $ 779 Weighted average lease term and discount rate at: June 30, 2019 Lease term (years) 2.58 Lease rate 8 % Supplemental cash flow information related to leases for the period ended: June 30, 2019 Cash used in operating activities $ 924 Cash used in financing activities $ 2,658 |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 13 - COMMITMENTS Retirement Benefits Ranor has a defined contribution and savings plan that covers substantially all Ranor employees who have completed 90 days of service. Ranor retains the option to match employee contributions. The Company contributed $20,073 and $20,520 for the three months ended June 30, 2019 and 2018, respectively. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation - The accompanying These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, or the 2019 Form 10-K, filed with the SEC on June 27, 2019. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements - |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Disaggregation of Revenue | 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 June 30, 2019 $ 3,409,291 $ 261,666 $ 663,311 $ 4,334,268 Three months ended June 30, 2018 $ 3,809,087 $ 261,430 $ 28,306 $ 4,098,823 Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2019 $ 3,052,938 $ 1,281,330 $ 4,334,268 Three months ended June 30, 2018 $ 3,838,927 $ 259,896 $ 4,098,823 |
Contract with Customer, Asset and Liability | At June 30, 2019 contract assets consisted of the following: Contract assets Unbilled Progress Total June 30, 2019 $ 8,771,341 $ (5,897,730 ) $ 2,873,611 March 31, 2019 $ 9,324,361 $ (4,933,529 ) $ 4,390,832 |
Net Sales [Member] | |
Schedules of Concentration of Risk, by Risk Factor | June 30, 2019 June 30, 2018 Customer Amount Percent Amount Percent A $ 1,255,055 29 % $ 1,593,440 39 % B $ * * % $ 1,015,148 25 % C $ 1,050,577 24 % $ * * % D $ 618,019 14 % $ * * % E $ 549,192 13 % $ * * % *Less than 10% of total |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations | June 30, 2019 June 30, 2018 Basic EPS Net income $ 220,777 $ 164,385 Weighted average shares 29,253,495 28,824,593 Basic income per share $ 0.01 $ 0.01 Diluted EPS Net income $ 220,777 $ 164,385 Dilutive effect of stock options 1,457,512 272,134 Diluted weighted average shares 30,711,007 29,096,727 Diluted income per share $ 0.01 $ 0.01 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
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 6.72 Granted 150,000 $ 0.800 Exercised (365,000 ) $ 0.271 Canceled (241,668 ) $ 1.226 Outstanding at 3/31/2019 2,938,000 $ 0.416 $ 1,869,200 6.74 Exercised (20,000 ) $ 0.360 Outstanding at 6/30/2019 2,918,000 $ 0.416 $ 2,828,800 6.59 Vested or expected to vest at 6/30/2019 2,918,000 $ 0.416 $ 2,828,800 6.59 Exercisable and vested at 6/30/2019 2,918,000 $ 0.416 $ 2,828,800 6.59 |
Stock Based Compensation By Exercise Price Range | Range of Exercise Prices: Options Outstanding Weighted Average Remaining Contractual Term Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $0.01-$1.00 2,820,000 7.01 $ 0.37 2,820,000 $ 0.37 $1.01-$1.96 98,000 1.68 $ 1.84 98,000 $ 1.84 Totals 2,918,000 2,918,000 |
CONCENTRATION OF CREDIT RISK (T
CONCENTRATION OF CREDIT RISK (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Accounts Receivable | |
Concentration of credit risk and major customers | |
Schedule of concentration of risk by factors | June 30, 2019 March 31, 2019 Customer Dollars Percent Dollars Percent A $ * * % $ 339,032 34 % B $ 268,538 31 % $ 246,019 24 % C $ 225,491 26 % $ * * % D $ * * % $ 244,500 24 % E $ 162,494 19 % $ * * % F $ 103,300 12 % $ * * % *less than 10% of total |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of other current assets | June 30, 2019 March 31, 2019 Payments advanced to suppliers $ 88,628 $ 133,861 Prepaid insurance 158,998 203,601 Prepaid subscriptions 31,723 27,096 Prepaid taxes 31,707 31,707 Refundable AMT credits 60,841 60,841 Employee advances 22,219 15,380 Other 25,724 25,573 Total $ 419,840 $ 498,059 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | June 30, 2019 March 31, 2019 Accrued compensation $ 348,053 $ 284,651 Provision for contract losses 178,185 57,792 Accrued professional fees 265,532 267,309 Accrued project costs 42,572 118,929 Other 38,607 24,818 Total $ 872,949 $ 753,499 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt obligations | June 30, 2019 March 31, 2019 Berkshire Term Loan due January 2022 $ 2,634,481 $ 2,656,985 People’s Equipment Loan Facility due April 2021 1,432,582 1,606,953 Obligation under finance lease 30,753 33,411 Total debt $ 4,097,816 $ 4,297,349 Less: debt issue costs unamortized $ 54,860 $ 64,702 Total debt, net $ 4,042,956 $ 4,232,647 Less: Current portion of long-term debt $ 837,844 $ 822,105 Total long-term debt, net $ 3,205,112 $ 3,410,542 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule Of Supplemental Balance Sheet Information Related To Leases | The lease classified as an operating lease has a remaining term of three months and is reported in other current assets on our condensed consolidated balance sheet. Right-of-use assets and liabilities on our condensed consolidated balance sheet at June 30, 2019 were: June 30, 2019 Operating lease: Other current assets $ 898 Other current liabilities $ 898 Finance lease: Property, plant and equipment $ 54,376 Accumulated depreciation 27,188 Net property, plant and equipment $ 27,188 Current portion of long-term debt $ 11,168 Long-term debt $ 19,585 Total finance lease liabilities $ 30,753 |
Schedule Of Other Supplemental Information Related To Leases | Other supplemental information regarding our leases are contained in the following tables: Components of lease expense for the period ended: June 30, 2019 Operating lease amortization $ 865 Operating lease interest $ 59 Finance lease amortization $ 2,719 Finance lease interest $ 779 Weighted average lease term and discount rate at: June 30, 2019 Lease term (years) 2.58 Lease rate 8 % |
Schedule Of Cash flow Information Relating To Leases | Supplemental cash flow information related to leases for the period ended: June 30, 2019 Cash used in operating activities $ 924 Cash used in financing activities $ 2,658 |
REVENUE - disaggregated basis (
REVENUE - disaggregated basis (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 4,334,268 | $ 4,098,823 |
Over-time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 3,052,938 | 3,838,927 |
Point-in-time [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 1,281,330 | 259,896 |
Defense [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 3,409,291 | 3,809,087 |
Energy [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 261,666 | 261,430 |
Industrial [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 663,311 | $ 28,306 |
REVENUE - net sales from custo
REVENUE - net sales from customers (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | |||
Revenues | $ 4,334,268 | $ 4,098,823 | ||
Customer A [Member] | Sales Revenue, Net [Member] | ||||
Revenues | $ 1,255,055 | $ 1,593,440 | ||
Concentration Risk, Percentage | 29.00% | 39.00% | ||
Customer B [Member] | Sales Revenue, Net [Member] | ||||
Revenues | [1] | $ 1,015,148 | ||
Concentration Risk, Percentage | [1] | 25.00% | ||
Customer C [Member] | Sales Revenue, Net [Member] | ||||
Revenues | $ 1,050,577 | [1] | ||
Concentration Risk, Percentage | 24.00% | [1] | ||
Customer D [Member] | Sales Revenue, Net [Member] | ||||
Revenues | $ 618,019 | [1] | ||
Concentration Risk, Percentage | 14.00% | [1] | ||
Customer E [Member] | Sales Revenue, Net [Member] | ||||
Revenues | $ 549,192 | [1] | ||
Concentration Risk, Percentage | 13.00% | [1] | ||
[1] | Less than 10% of total |
REVENUE - contract assets and
REVENUE - contract assets and contract liabilities (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Contract assets | ||
Contract with Customer, Asset, Net, Current | $ 2,873,611 | $ 4,390,832 |
Unbilled Revenues [Member] | ||
Contract assets | ||
Contract with Customer, Asset, Net, Current | 8,771,341 | 9,324,361 |
Progress Payments Receivable [Member] | ||
Contract assets | ||
Contract with Customer, Asset, Net, Current | $ (5,897,730) | $ (4,933,529) |
REVENUE - additional informatio
REVENUE - additional information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2019 | |
Revenue, Remaining Performance Obligation, Amount | $ 12.5 | |
Revenue Remaining Performance Obligation Completed Less Than 50 | $ 9.6 | |
Revenue, Remaining Performance Obligation, Percentage | 50.00% | |
Revenue Recognized By Contract Liabilities | $ 0.2 |
INCOME TAXES - additional infor
INCOME TAXES - additional information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 1,700,000 | |
Income tax expense | $ 90,218 | $ 65,029 |
Effective Income Tax Rate Reconciliation, Percent | 29.00% | 28.40% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Basic EPS | ||
Net income | $ 220,777 | $ 164,385 |
Weighted average shares | 29,253,495 | 28,824,593 |
Basic income per share | $ 0.01 | $ 0.01 |
Diluted EPS | ||
Net income | $ 220,777 | $ 164,385 |
Dilutive effect of stock options | 1,457,512 | 272,134 |
Diluted weighted average shares | 30,711,007 | 29,096,727 |
Diluted income per share | $ 0.01 | $ 0.01 |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 98,000 | 862,668 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary (Details) - USD ($) | Apr. 05, 2019 | Dec. 07, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 30, 2018 |
Assumption used in valuation of stock options | ||||||
Share-based Compensation | $ 30,625 | $ 24,930 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 100,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 25,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 months 2 days | 6 years 8 months 26 days | 6 years 8 months 19 days | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 20,000 | 365,000 | ||||
Restricted Stock [Member] | ||||||
Assumption used in valuation of stock options | ||||||
Stock based compensation cost | $ 122,500 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 51,042 | |||||
Stock option [Member] | ||||||
Assumption used in valuation of stock options | ||||||
Share-based Compensation | $ 30,625 | |||||
2016 Plan | ||||||
Assumption used in valuation of stock options | ||||||
Shares available for grant | 1,572,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 20,000 | |||||
Maximum | ||||||
Assumption used in valuation of stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 30, 2018 | Mar. 31, 2018 | |
Number Of Options | ||||
Outstanding at the beginning of the period (in shares) | 2,938,000 | 3,394,668 | ||
Granted (in shares) | 150,000 | |||
Exercised (in shares) | (20,000) | (365,000) | ||
Canceled (in shares) | (241,668) | |||
Outstanding at the end of the period (in shares) | 2,918,000 | 2,938,000 | ||
Vested or expected to vest at the end of the period (in shares) | 2,918,000 | |||
Exercisable and vested at the end of the period (in shares) | 2,918,000 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 0.416 | $ 0.417 | ||
Granted (in dollars per share) | 0.800 | |||
Exercised (in shares) | 0.360 | 0.271 | ||
Canceled (in dollars per share) | 1.226 | |||
Outstanding at the end of the period (in dollars per share) | 0.416 | $ 0.416 | ||
Vested or expected to vest at the end of the period (in dollars per share) | 0.416 | |||
Exercisable and vested at the end of the period (in dollars per share) | $ 0.416 | |||
Aggregate Intrinsic Value | ||||
Outstanding Value | $ 2,828,800 | $ 1,869,200 | $ 698,200 | |
Vested or expected to vest at the end of the period | 2,828,800 | |||
Exercisable and vested at the end of the period | $ 2,828,800 | |||
Weighted Average Remaining Contractual Life | ||||
Outstanding at the end of the period | 6 years 7 months 2 days | 6 years 8 months 26 days | 6 years 8 months 19 days | |
Vested or expected to vest at the end of the period | 6 years 7 months 2 days | |||
Exercisable and vested at the end of the period | 6 years 7 months 2 days |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details) | 3 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Stock Based Compensation By Exercise Price Range | |
Options Outstanding | shares | 2,918,000 |
Options Exercisable | shares | 2,918,000 |
Range One | |
Stock Based Compensation By Exercise Price Range | |
Exercise Price, Lower Range | $ 0.01 |
Exercise Price, Upper Range | $ 1 |
Options Outstanding | shares | 2,820,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 7 years 3 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.37 |
Options Exercisable | shares | 2,820,000 |
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 | 98,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | 1 year 8 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.84 |
Options Exercisable | shares | 98,000 |
Options Exercisable, Weighted Average Exercise Price | $ 1.84 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | |||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 866,062 | $ 1,010,443 | ||
Accounts Receivable | Customer Concentration Risk | Customer A | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | [1] | $ 339,032 | ||
Concentration risk percentage | [1] | 34.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer B | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 268,538 | $ 246,019 | ||
Concentration risk percentage | 31.00% | 24.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer C | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 225,491 | [1] | ||
Concentration risk percentage | 26.00% | [1] | ||
Accounts Receivable | Customer Concentration Risk | Customer D | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | [1] | $ 244,500 | ||
Concentration risk percentage | [1] | 24.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer E | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 162,494 | [1] | ||
Concentration risk percentage | 19.00% | [1] | ||
Accounts Receivable | Customer Concentration Risk | Customer F | ||||
Concentration of credit risk and major customers | ||||
Accounts receivable | $ 103,300 | [1] | ||
Concentration risk percentage | 12.00% | [1] | ||
Trade Receivables [Member] | ||||
Concentration of credit risk and major customers | ||||
Concentration risk percentage | 88.00% | |||
[1] | less than 10% of total |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Payments advanced to suppliers | $ 88,628 | $ 133,861 |
Prepaid insurance | 158,998 | 203,601 |
Prepaid subscriptions | 31,723 | 27,096 |
Prepaid taxes | 31,707 | 31,707 |
Refundable AMT credits | 60,841 | 60,841 |
Employee advances | 22,219 | 15,380 |
Other | 25,724 | 25,573 |
Totals | $ 419,840 | $ 498,059 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Accrued Expenses | ||
Accrued compensation | $ 348,053 | $ 284,651 |
Provision for contract losses | 178,185 | 57,792 |
Accrued professional fees | 265,532 | 267,309 |
Accrued project costs | 42,572 | 118,929 |
Other | 38,607 | 24,818 |
Total | $ 872,949 | $ 753,499 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Long-term Debt | ||
Total debt | $ 4,097,816 | $ 4,297,349 |
Less: debt issue costs unamortized | 54,860 | 64,702 |
Total debt, net | 4,042,956 | 4,232,647 |
Less: Current portion of long-term debt | 837,844 | 822,105 |
Total long-term debt, net | 3,205,112 | 3,410,542 |
Berkshire Term Loan due December 2021 | ||
Long-term Debt | ||
Total debt | 2,634,481 | 2,656,985 |
People's Equipment Loan Facility due April 2021 | ||
Long-term Debt | ||
Total debt | 1,432,582 | 1,606,953 |
Obligations under capital leases | ||
Long-term Debt | ||
Total debt | 30,753 | $ 33,411 |
Less: Current portion of long-term debt | 11,168 | |
Total long-term debt, net | $ 19,585 |
DEBT - Berkshire Bank & Trust C
DEBT - Berkshire Bank & Trust Company Loan Facility (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 19, 2018USD ($) | Dec. 21, 2016USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||
Nonrefundable Commitment Fee,Percentage | 0.25% | ||||
Payment 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 Three And Thereafter | 2.50 | ||||
Debt Instrument Covenant Maximum Capital Expenditures To Be Incurred Year Four And Thereafter | $ 1,500,000 | ||||
Debt Instrument Covenant Loan To Value Ratio | 0.75 | ||||
Debt Instrument Covenant Trailing Period For Measurement Of Loan To Value Ratio | 365 days | ||||
Unamortized Debt Issuance Expense | $ 29,833 | $ 32,982 | |||
Berkshire Loan | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount Of Borrowing Base Required To Grant Loan Advance | $ 1,000,000 | ||||
Debt Instrument Percentage Of Accounts Receivable Used For Determination Of Aggregate Amount Of Advances | 80.00% | ||||
Debt Instrument Percentage Of Eligible Raw Material Used For Determination Of Aggregate Amount Of Advances | 25.00% | ||||
Amount Included In Sum To Calculate Maximum Borrowing Base | $ 250,000 | ||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR plus 275 basis points | ||||
Berkshire Loan | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 60 months | ||||
Debt Instrument, Periodic Payment | $ 19,260 | ||||
Debt Instrument Prepayment Period | 45 days | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.21% | ||||
Berkshire Loan | Ranor, Inc. | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Event Of Default Excess Of Indebtedness | $ 100,000 | ||||
Debt Instrument Event Of Default In Excess Of Entry Of Judgment | 150,000 | ||||
Berkshire Loan | Ranor, Inc. | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 2,850,000 | ||||
Berkshire Loan | Ranor, Inc. | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 |
DEBT - People's Capital and Lea
DEBT - People's Capital and Leasing Corp. Equipment Loan Facility (Details) | 1 Months Ended | |||
Oct. 04, 2016USD ($) | Apr. 26, 2016USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | |
People's Capital and Leasing Corp | ||||
Debt Instrument [Line Items] | ||||
Unamortized Debt Issuance Expense | $ 25,027 | $ 31,720 | ||
MLSA | Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 365,852 | |||
Debt Instrument, Term | 60 months | 60 months | ||
Repayments of Long-term Debt | $ 7,399 | |||
MLSA | 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, 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 |
LEASES (Details)
LEASES (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Net property, plant and equipment | $ 4,680,804 | $ 4,860,609 |
Current portion of long-term debt | 837,844 | 822,105 |
Long-term debt | 3,205,112 | 3,410,542 |
Total debt | 4,097,816 | 4,297,349 |
Capital Lease Obligations [Member] | ||
Current portion of long-term debt | 11,168 | |
Long-term debt | 19,585 | |
Total debt | 30,753 | $ 33,411 |
Assets Held under Capital Leases [Member] | ||
Property, plant and equipment | 54,376 | |
Accumulated depreciation | 27,188 | |
Net property, plant and equipment | 27,188 | |
Other Current Assets [Member] | ||
Other current assets | 898 | |
Other Current Liabilities [Member] | ||
Other current liabilities | $ 898 |
LEASES (Details 1)
LEASES (Details 1) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Operating lease amortization | $ 865 |
Operating lease interest | 59 |
Finance lease amortization | 2,719 |
Finance lease interest | $ 779 |
Lease term (years) | 2 years 6 months 29 days |
Lease rate | 8.00% |
LEASES (Details 2)
LEASES (Details 2) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Cash used in operating activities | $ 924 |
Cash used in financing activities | $ 2,658 |
LEASES - additional information
LEASES - additional information (Details) | Jun. 30, 2019USD ($) |
Operating Lease, Weighted Average Remaining Lease Term | 3 months |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal Remainder of Fiscal Year | $ 9,900 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Two | 13,200 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Three | 11,000 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | $ 3,347 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Contractual commitments | ||
Defined Contribution Plan, Cost | $ 20,073 | $ 20,520 |