TechPrecision (TPCS) 10-Q14 Sep 222023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Sep. 13, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity Registrant Name	TechPrecision Corporation
Entity File Number	000-51378
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0539828
Entity Address, Address Line One	1 Bella Drive
Entity Address, City or Town	Westminster
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01473
City Area Code	978
Local Phone Number	874-0591
Trading Symbol	TPCS
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--03-31
Title of 12(b) Security	None
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001328792
Amendment Flag	false
Entity Common Stock, Shares Outstanding		34,307,450

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
Current assets:
Cash and cash equivalents	$ 573,638	$ 1,052,139
Accounts receivable	2,507,367	3,009,249
Contract assets	8,802,642	8,350,231
Raw materials	1,037,969	874,538
Work-in-process	1,861,898	1,360,137
Other current assets	728,065	1,421,459
Total current assets	15,511,579	16,067,753
Property, plant and equipment, net	12,936,156	13,153,165
Right of use asset, net	6,219,245	6,383,615
Deferred income taxes	2,300,484	2,126,770
Other noncurrent assets, net	680,256	121,256
Total assets	37,647,720	37,852,559
Current liabilities:
Accounts payable	3,908,129	3,426,921
Accrued expenses	3,458,285	3,435,866
Contract liabilities	1,786,402	1,765,319
Current portion of long-term lease liability	629,113	593,808
Current portion of long-term debt	3,083,956	4,093,079
Total current liabilities	12,865,885	13,314,993
Long-term debt, net	2,990,063	3,114,936
Long-term lease liability	5,678,788	5,853,791
Other noncurrent liability	1,298,274	305,071
Total liabilities	22,833,010	22,588,791
Commitments and contingencies (see Note 15)
Stockholders' Equity:
Common stock - par value $.0001 per share, 90,000,000 shares authorized, 34,307,450 shares issued and outstanding at June 30, 2022 and March 31, 2022	3,430	3,430
Additional paid in capital	14,689,878	14,637,771
Retained earnings	121,402	622,567
Total stockholders' equity	14,814,710	15,263,768
Total liabilities and stockholders' equity	$ 37,647,720	$ 37,852,559

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2022	Mar. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	34,307,450	34,307,450
Common stock, shares outstanding	34,307,450	34,307,450

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (unaudited)
Net sales	$ 7,076,357	$ 3,412,229
Cost of sales	6,259,139	2,579,561
Gross profit	817,218	832,668
Selling, general and administrative	1,375,227	732,608
(Loss) income from operations	(558,009)	100,060
Other (expense) income	(33,225)	10,390
Interest expense	(83,645)	(29,878)
PPP loan forgiveness		1,317,100
Total other (expense) income, net	(116,870)	1,297,612
(Loss) income before income taxes	(674,879)	1,397,672
Income tax (benefit) provision	(173,714)	26,580
Net (loss) income	(501,165)	1,371,092
Other comprehensive (loss) income:
Foreign currency translation adjustments		42
Other comprehensive (loss) income, net of tax		42
Comprehensive (loss) income	$ (501,165)	$ 1,371,134
Net (loss) income per share - basic	$ (0.01)	$ 0.05
Net (loss) income per share - diluted	$ (0.01)	$ 0.04
Weighted average number of shares outstanding:
Weighted average number of shares outstanding - basic	34,307,450	29,498,662
Weighted average number of shares outstanding - diluted	34,307,450	31,054,110

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($)	Common Stock	Additional Paid in Capital.	Accumulated Other Comprehensive Income	Retained Earnings	Total
Balance at Mar. 31, 2021	$ 2,949	$ 8,944,660	$ 21,838	$ 972,401	$ 9,941,848
Balance (in shares) at Mar. 31, 2021	29,498,662
Stock-based compensation		33,500			33,500
Net income (loss)				1,371,092	1,371,092
Foreign currency translation adjustment			42		42
Balance at Jun. 30, 2021	$ 2,949	8,978,160	$ 21,880	2,343,493	11,346,482
Balance (in shares) at Jun. 30, 2021	29,498,662
Balance at Mar. 31, 2022	$ 3,430	14,637,771		622,567	15,263,768
Balance (in shares) at Mar. 31, 2022	34,307,450
Stock-based compensation		52,107			52,107
Net income (loss)				(501,165)	(501,165)
Balance at Jun. 30, 2022	$ 3,430	$ 14,689,878		$ 121,402	$ 14,814,710
Balance (in shares) at Jun. 30, 2022	34,307,450

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (501,165)	$ 1,371,092
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	585,361	182,678
Amortization of debt issue costs	13,399	8,824
Stock based compensation expense	52,107	33,500
Change in contract loss provision	18,402	(69,951)
Deferred income taxes	(173,714)	26,580
Change in fair value of contingent consideration	(33,474)
PPP loan forgiveness		(1,317,100)
Changes in operating assets and liabilities:
Accounts receivable	501,882	(547,344)
Contract assets	(452,411)	716,600
Work-in-process and raw materials	(665,192)	239,012
Other current assets	693,394	3,607
Accounts payable	481,208	(331,079)
Accrued expenses	(85,348)	(389,586)
Contract liabilities	21,083	210,215
Other noncurrent liabilities	993,203
Net cash provided by operating activities	1,448,735	137,048
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed asset deposit	(559,000)
Purchases of property, plant and equipment	(203,981)	(4,198)
Net cash used in investing activities	(762,981)	(4,198)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issue costs	(6,268)
Principal payments for leases	(16,860)
Net payments under revolver loan	(987,002)
Repayment of long-term debt	(154,125)	(27,166)
Net cash used in financing activities	(1,164,255)	(27,166)
Effect of exchange rate on cash and cash equivalents		(20)
Net (decrease) increase in cash and cash equivalents	(478,501)	105,664
Cash and cash equivalents, beginning of period	1,052,139	2,130,711
Cash and cash equivalents, end of period	573,638	2,236,375
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Interest	$ 69,799	$ 32,746

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
DESCRIPTION OF BUSINESS	Jun. 30, 2022
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS TechPrecision Corporation, or “TechPrecision”, is a Delaware corporation organized in February 2005 under the name Lounsberry Holdings II, Inc. On February 24, 2006, we acquired all the issued and outstanding capital stock of our wholly owned subsidiary Ranor, Inc., or “Ranor.” Ranor, together with its predecessors, has been in continuous operation since 1956. The name was changed to TechPrecision Corporation on March 6, 2006. TechPrecision is the parent company of Ranor, Westminster Credit Holdings, LLC, or “WCH”, Stadco New Acquisition, LLC, or “Acquisition Sub”, Stadco and Wuxi Critical Mechanical Components Co., Ltd., or “WCMC”, a wholly foreign owned enterprise. WCMC was dissolved and deregistered in November 2021 and has had no customers or operations for over five years. TechPrecision, Ranor, WCH, WCMC (until November 2021), Acquisition Sub and Stadco are collectively referred to as the “Company”, “we”, “us” or “our”. On August 25, 2021, the Company completed its previously announced acquisition of Stadco, pursuant to that certain stock purchase agreement with Stadco New Acquisition, LLC, Stadco Acquisition, LLC, Stadco and each equity holder of Stadco Acquisition, LLC. On the closing date, the Company, through Stadco New Acquisition, LLC, acquired all the issued and outstanding capital stock of Stadco from Stadco Acquisition, LLC in exchange for the issuance of shares of the Company’s common stock to Stadco Acquisition, LLC. As a result of the acquisition, Stadco is now our wholly owned indirect subsidiary. See Note 3 for additional disclosures related to this business combination. 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. All our operations and customers are in the United States, or “U.S.”.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2022
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation - These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the “SEC”, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2022, filed with the SEC on August 10, 2022. Use of Estimates in the Preparation of Financial Statements - Risks and Uncertainties - Liquidity and Going Concern – As of June 30, 2022, we had $4.5 million in total available liquidity, consisting of $0.6 million in cash and cash equivalents, and $3.9 million in undrawn capacity under our revolver loan. As of March 31, 2022, we had $3.9 million in total available liquidity, consisting of $1.1 million in cash and cash equivalents, and $2.8 million in undrawn capacity under our revolver loan. On June 16, 2022, Ranor entered into a Third Amendment to Amended and Restated Loan Agreement and Third Amendment to Promissory Note to further extend the maturity date of the Ranor Term Loan to September 16, 2022. The Company has commenced negotiations of a further amended and restated loan agreement with Berkshire Bank, including a potential modification of the loan covenants. We intend to refinance the original term loan made by Berkshire Bank to Ranor in the principal amount of $2.85 million (the “Ranor Term Loan”) by borrowing on terms similar to the current loan and using the proceeds to pay down certain existing debt obligations and lowering our debt levels and debt service requirements. However, there can be no assurance that we will be successful in negotiating for these terms with Berkshire Bank or any other lender. Our debt financing agreements limit our capital expenditures to $1.5 million annually and contain loan to value, balance sheet leverage, and debt service coverage ratio covenants. At June 30, 2022, the Company was not in compliance with all of these financial covenants. Berkshire Bank waived the Company’s noncompliance with certain of the financial and related covenants at June 30, 2022. The bank retains the right to act on covenant violations that occur after the date of delivery of the waiver. 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. In order for us to continue operations beyond the next twelve months and be able to discharge our liabilities and commitments in the normal course of business, we must secure new long-term financing on terms consistent with our near-term business plans. We had cash and cash equivalents of $0.6 million and working capital of $2.6 million, a decrease of $0.2 million when compared to March 31, 2022. We believe our available cash, plus cash expected to be provided by operations, Employee Retention Credit cash refunds of approximately $0.9 million, and borrowing capacity available under the revolver loan (until the expiration date of December 20, 2022), will be sufficient to fund our operations, expected capital expenditures, and principal and interest payments under our lease and debt obligations through the next 12 months from the issuance date of our financial statements. Our revolver loan matures in December 2022 and will not be available to provide liquidity unless it is renewed. The Company intends to renew the revolver loan with Berkshire Bank. There was $0.3 million outstanding under the revolver loan at June 30, 2022, and $3.9 million of available liquidity. The uncertainty associated with the refinancing of the Ranor Term Loan which is due on September 16, 2022, and the Revolver Loan which is due on December 20, 2022, raises substantial doubt about our ability to continue as a going concern. The condensed consolidated financial statements for the three months ended June 30, 2022, were prepared on the basis of a going concern which contemplates that we will be able to realize assets and discharge liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should we be required to liquidate assets. Our ability to satisfy our current liabilities and to continue as a going concern is dependent upon the timely availability of long-term financing and successful execution of our operating plan. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
BUSINESS COMBINATION	Jun. 30, 2022
BUSINESS COMBINATION
BUSINESS COMBINATION	NOTE 3 – BUSINESS COMBINATION Stadco Acquisition On August 25, 2021, the closing date, the Company completed its previously announced acquisition of Stadco, pursuant to that certain stock purchase agreement, dated as of October 16, 2020, or the “SPA”, among TechPrecision, Stadco New Acquisition LLC, Stadco Acquisition, LLC, or “Holdco”, and each stockholder of Holdco. Stadco is a company in the business of manufacturing high-precision parts, assemblies and tooling for aerospace, defense, and industrial customers. Also on the closing date, the Company completed its previously announced acquisition of certain indebtedness obligations of Stadco, pursuant to that certain Amended and Restated Loan Purchase and Sale Agreement, dated as of April 23, 2021, with Sunflower Bank, N.A., as amended by Amendment to Amended and Restated Loan Purchase and Sale Agreement, dated as of June 28, 2021, together, the Loan Purchase Agreement. On August 25, 2021, WCH, as assignee of Stadco New Acquisition LLC, paid $7.9 million in the aggregate to Sunflower Bank, N.A., under the terms of the Loan Purchase Agreement, to purchase the indebtedness. Pursuant to the SPA, and upon the terms and subject to the conditions therein, the Company acquired all of the issued and outstanding capital stock of Stadco in exchange for the issuance of 666,666 shares of the Company’s common stock to Holdco. In connection with the acquisition of Stadco, the Company reached an agreement with the holders of certain other non-bank indebtedness of Stadco, under which each such lender agreed to forgive such indebtedness in exchange for an aggregate of 199,395 shares of the Company’s common stock. In addition, the Company reached an agreement with a certain other security holder who agreed to sell its Stadco securities to the Company in exchange for the issuance by the Company of 600,000 shares of the Company’s common stock and a warrant to purchase 100,000 shares of the Company’s common stock. On August 25, 2021, the Company entered into a Securities Purchase Agreement with a limited number of institutional and other accredited investors, pursuant to which investors committed to subscribe for and purchase 3,202,727 shares of the Company’s common stock at a purchase price of $1.10 per share. Costs directly attributable to this offering of securities totaled $0.3 million. Stadco’s assets and liabilities were measured at estimated fair values on August 25, 2021, primarily using Level 1 and Level 3 inputs. Estimates of fair value represent management’s best estimate and require a complex series of judgments about future events and uncertainties. Third-party valuation specialists were engaged to assist in the valuation of these assets and liabilities. Included in the total consideration transferred is $113,890 related to a contingent provision in the agreements that could require payment based on the difference between the TechPrecision stock price and contract target stock price. The contingent provision allows the issuer, TechPrecision, to settle the contingency with stock or cash, or a combination of each. If after one year following the closing of the acquisition, the fair value of the consideration stock is less than the target stock price stated in each agreement, TechPrecision will issue to the holder additional shares of consideration stock or cash, or some combination of stock and cash. The target stock price stated in the agreements are guaranteed and, only the number of shares issued can vary, with the final measurement date and amount to be determined on the one-year anniversary date. Since the contract does not specify a fixed maximum number of shares to be issued on the anniversary date, should the company determine to satisfy the contingent consideration with shares, then a number of shares higher than the amount currently authorized by the company’s certificate of incorporation may be required to be issued. In any case, the maximum value of the contingent consideration will be $2,269,000, whether paid in shares of common stock or in cash, or both. The estimated liability associated with the contingent consideration was valued under a Monte Carlo simulation and had a balance of $96,909 on June 30, 2022. The fair value of the contingent consideration was estimated using the Monte Carlo model based on the closing stock prices at the period end date and expected volatility of 50.0% based on the historical volatility of our common stock. Measurement Period Adjustments The Company has completed the process of measuring the fair value of assets acquired and liabilities assumed. In the third and fourth quarters of fiscal 2022, the Company made certain measurement period adjustments to reflect the facts and circumstances in existence at the acquisition date. These measurement period adjustments are related to changes in preliminary assumptions and initial estimates that would have been recognized if all the facts and circumstances had been known at the time of acquisition. The table below presents the fair value of assets acquired and liabilities assumed on the acquisition date based on the best information it has received to date in accordance with Accounting Standards Codification (“ASC”) 805. Adjusted Reported at ERTC Customer Fixed Totals August 25, refundable claim 2 Asset August 25, 2021 credit 1 Warrant 3 Valuation 4 2021 Total consideration transferred $ 10,163,164 — $ 46,256 — $ 10,209,420 Recognized amounts of identifiable assets acquired and liabilities assumed: — — — — — Accounts receivable 1,247,015 — — — 1,247,015 Inventory 927,188 — — — 927,188 Other current assets 4,323,593 1,093,661 — — 5,417,254 Property, plant, and equipment and right of use assets 15,074,273 — — 897,488 15,971,761 Accounts payable, accrued expenses, and other current liabilities (5,882,048) (164,049) (606,415) — (6,652,512) Lease obligations (6,701,286) — — — (6,701,286) Net assets 8,988,735 929,612 (606,415) 897,488 10,209,420 Goodwill 1,174,429 (929,612) 652,671 (897,488) — Total $ 10,163,164 $ — $ 46,256 $ — $ 10,209,420 All measurement period adjustments were offset against goodwill: 1 In calendar year 2021 our Stadco subsidiary filed for a refund of tax credits for $1,093,661 from the IRS under the Employee Retention Credit, or ERC program. Fees associated with the filing totaled $164,049 . 2 Customer claim of $471,166 accrued for additional costs incurred in connection with a certain product manufacturing project. Other adjustments to current liabilities totaled $135,249 . 3 Warrant issued to former shareholder in connection with the acquisition valued at $46,256 . 4 Fixed asset adjustments related to changes in preliminary valuation assumptions and estimates, including estimates of asset useful lives. Supplemental Pro Forma Information The pro forma results have been prepared for comparative purposes only and do not necessarily represent what the revenue or results of operations would have been had the acquisition been completed on April 1, 2021. In addition, these results are not intended to be a projection of future operating results and do not reflect synergies that might be achieved from the acquisition. The following table discloses the pro forma results for the combined entities, assuming the acquisition date had occurred on April 1, 2021, for the three months ended June 30, 2021: Pro Forma Three months ended June 30, 2021 Net sales $ 7,835,528 Operating income $ 61,355 Income before income taxes $ 1,190,153 Net income $ 1,162,625 EPS basic $ 0.03 EPS dilutive $ 0.03 Weighted average shares outstanding: Basic 34,267,450 Diluted 35,822,898 The pro forma results include adjustments for the purchase accounting impact, including, but not limited to, depreciation and amortization associated with the acquired tangible assets, and an adjustment for interest expense related to the new long-term debt, the alignment of accounting policies, and the elimination of transactions between TechPrecision and Stadco. Adjustments included in the pro forma results for the three months ended June 30, 2021, are as follows: ● Included expense in cost of goods sold of $53,712 for depreciation and amortization from a valuation adjustment to Stadco’s property, plant and equipment and the recognition of a new right-of-use asset for Stadco’s property lease that more than offset a reversal of historical rent expense. ● In selling, general and administrative, excluded non-recurring expense of $311,905 for consulting, legal, diligence and bank fees, and nominal costs incurred in connection with the acquisition of Stadco. Also excluded was $188,806 of management fees due to then preferred stockholders of Stadco. ● Excluded interest expense for $160,261 resulting from the reduction in Stadco’s bank debt and applicable interest rates, partially offset by additional interest expense related to Stadco leases.

REVENUE

REVENUE	3 Months Ended
REVENUE	Jun. 30, 2022
REVENUE
REVENUE	NOTE 4 - REVENUE The Company generates revenue primarily from performance obligations completed under contracts with customers in two main market sectors: defense and precision industrial. The period over which the Company performs its obligations can be between three thirty-six months Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type sales only. The following table presents net sales on a disaggregated basis by market and contract type: Net Sales by market Defense Industrial Totals Three months ended June 30, 2022 $ 6,840,924 $ 235,433 $ 7,076,357 Three months ended June 30, 2021 $ 3,103,132 $ 309,097 $ 3,412,229 Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2022 $ 6,622,093 $ 454,264 $ 7,076,357 Three months ended June 30, 2021 $ 3,122,649 $ 289,580 $ 3,412,229 As of June 30, 2022, the Company had $45.9 million of remaining performance obligations, of which $43.6 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue within the next thirty-six months We are dependent each year on a small number of customers who generate a significant portion of our business, and these customers change from year to year. The following table sets forth revenues from customers who accounted for more than 10% of our net sales for the three months ended: June 30, 2022 June 30, 2021 Customer Amount Percent Amount Percent A $ 1,296,387 18 % $ 1,303,772 38 % B $ 1,763,591 25 % $ * * % C $ 735,758 11 % $ 938,856 28 % D $ 1,071,874 15 % $ * * % *Less than 10% of total In our condensed consolidated balance sheet, contract assets and contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. For the three months ended June 30, 2022, we recognized revenue of approximately $0.5 million related to our contract liabilities at April 1, 2022. Contract assets consisted of the following at: Progress Unbilled payments Total June 30, 2022 $ 15,185,780 $ (6,383,138) $ 8,802,642 March 31, 2022 $ 14,216,187 $ (5,865,956) $ 8,350,231

INCOME TAXES

INCOME TAXES	3 Months Ended
INCOME TAXES	Jun. 30, 2022
INCOME TAXES
INCOME TAXES	NOTE 5 - INCOME TAXES The Company accounts for income taxes under ASC 740, Income Taxes The valuation allowance on deferred tax assets was approximately $2.0

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Jun. 30, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 6 - EARNINGS PER SHARE Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations for the three months ended: June 30, June 30, 2022 2021 Basic EPS Net (loss) income $ (501,165) $ 1,371,092 Weighted average shares 34,307,450 29,498,662 Net (loss) income per share $ (0.01) $ 0.05 Diluted EPS Net (loss) income $ (501,165) $ 1,371,092 Dilutive effect of stock options — 1,555,448 Weighted average shares 34,307,450 31,054,110 Net (loss) income per share $ (0.01) $ 0.04 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, 2022, there were potential anti-dilutive stock options and warrants of 2,720,000 and 100,000, respectively, none of which were included in the earnings per share calculations above.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
STOCK-BASED COMPENSATION	Jun. 30, 2022
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 7 – STOCK-BASED COMPENSATION The 2016 TechPrecision Equity Incentive Plan, or the “2016 Plan”, is designed to reflect our commitment to having best practices in both compensation and corporate governance. The 2016 Plan provides for a share reserve of 5,000,000 shares of common stock. The 2016 Plan authorizes the award of incentive and non-qualified stock options, restricted stock awards, restricted stock units, and performance awards to employees, directors, consultants, and other individuals who provide services to TechPrecision or its affiliates. The purpose of the 2016 Plan is to: (a) enable TechPrecision and its affiliated companies to recruit and retain highly qualified employees, directors and consultants; (b) provide those employees, directors and consultants with an incentive for productivity; and (c) provide those employees, directors and consultants with an opportunity to share in the growth and value of the Company. Subject to adjustment as provided in the 2016 Plan, the maximum number of shares of common stock that may be issued with respect to awards under the 2016 Plan is 5,000,000 shares (inclusive of awards issued under the 2006 Long-Term Incentive Plan, or the “2006 Plan”, that remained outstanding as of the effective date of the 2016 Plan). Shares of our common stock subject to awards that expire unexercised or are otherwise forfeited shall again be available for awards under the 2016 Plan. At June 30, 2022, there were 1,350,000 shares available for grant under the 2016 Plan. The following table summarizes information about options granted during the most recently completed periods: Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2021 2,719,000 $ 0.372 $ 2,476,300 5.62 Canceled (49,000) Outstanding at 3/31/2022 2,670,000 $ 0.343 $ 3,597,700 4.66 Outstanding at 6/30/2022 2,670,000 $ 0.343 $ 3,130,450 4.42 Vested or expected to vest at 6/30/2022 2,670,000 $ 0.343 $ 3,130,450 4.42 Exercisable and vested at 6/30/2022 2,670,000 $ 0.343 $ 3,130,450 4.42 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 2023 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, 2022. This amount changes based on the fair market value of the Company’s common stock. The maximum contractual term is ten years for option grants. Other information relating to stock options outstanding at June 30, 2022 is as follows: Weighted Average Remaining Weighted Weighted Options Contractual Average Options Average Range of Exercise Prices: Outstanding Term Exercise Price Exercisable Exercise Price $0.01‑$0.49 1,270,000 3.35 $ 0.12 1,270,000 $ 0.12 $0.50‑$0.99 1,400,000 4.90 $ 0.55 1,400,000 $ 0.55 Totals 2,670,000 2,670,000 Restricted Stock Awards Our board periodically authorizes the issuance of restricted stock as service-based awards 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 one year from the grant date. Each grantee is required to have been serving as a director on the vesting date and must have been continuously serving in such capacity from the grant date through the vesting date for the shares of restricted stock to vest. Prior to the vesting date, the grantee is not permitted to sell, transfer, pledge, assign or otherwise encumber the shares of restricted stock and if the grantee’s service with the Company has terminated prior to the vesting date, subject to certain exceptions, the grantee’s restricted stock is forfeited automatically. On September 17, 2021, we granted a total of 100,000 shares of restricted stock under the 2016 Plan to the members of the board of directors. The stock-based compensation expense of $175,000 for service-based restricted stock was measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. On January 24, 2022, the board of directors, in recognition of their special efforts in completing the previously disclosed acquisition of Stadco, granted (a) an aggregate total of 20,000 shares of restricted stock under the Company’s 2016 Equity Incentive Plan and (b) a cash award of $35,000, to each of Alexander Shen, the Company’s chief executive officer, and Thomas Sammons, the Company’s chief financial officer. The shares were measured at fair value at $34,000 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 January 24, 2023, or the vesting date, 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, subject to certain exceptions. Total recognized compensation cost related to the restricted stock awards for the three months ended June 30, 2022 was $52,107 . On June 30, 2022 there was $56,973 of unrecognized compensation cost related to the restricted stock awards.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	3 Months Ended
CONCENTRATION OF CREDIT RISK	Jun. 30, 2022
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK	NOTE 8 - CONCENTRATION OF CREDIT RISK We maintain bank account balances, which, at times, may exceed insured limits. We have not experienced any losses with these accounts and believe that we are not exposed to any significant credit risk on cash. On June 30, 2022, there were trade accounts receivable balances outstanding from three customers comprising 67% 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, 2022 March 31, 2022 Customer Dollars Percent Dollars Percent A $ 875,027 35 % $ 1,079,264 36 % B $ * * % $ 436,051 14 % C $ 521,107 21 % $ * * % D $ 265,937 11 % $ 382,789 13 % E $ * * % $ 309,500 10 % *less than 10% of total

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	3 Months Ended
OTHER CURRENT ASSETS	Jun. 30, 2022
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS	NOTE 9 - OTHER CURRENT ASSETS Other current assets included the following as of: June 30, 2022 March 31, 2022 Prepaid taxes $ 4,222 $ 26,497 ERC refundable credits 347,208 1,093,661 Prepaid insurance 148,878 184,275 Prepaid subscriptions 132,113 66,098 Payments advanced to suppliers 21,100 21,100 Employee advances 12,517 9,668 Prepaid advisory fees, other 62,027 20,160 Total $ 728,065 $ 1,421,459

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	3 Months Ended
PROPERTY, PLANT AND EQUIPMENT, NET	Jun. 30, 2022
PROPERTY, PLANT AND EQUIPMENT, NET
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 10 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following as of: June 30, 2022 March 31, 2022 Land $ 110,113 $ 110,113 Building and improvements 3,289,901 3,289,901 Machinery equipment, furniture, and fixtures 20,934,635 20,860,152 Construction in progress 129,498 — Total property, plant, and equipment 24,464,147 24,260,166 Less: accumulated depreciation (11,527,991) (11,107,001) Total property, plant and equipment, net $ 12,936,156 $ 13,153,165

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
ACCRUED EXPENSES	Jun. 30, 2022
ACCRUED EXPENSES
ACCRUED EXPENSES	NOTE 11 - ACCRUED EXPENSES Accrued expenses included the following as of: June 30, 2022 March 31, 2022 Accrued compensation $ 939,530 $ 947,938 Provision for claims 935,382 935,382 Provision for contract losses 358,674 340,272 Accrued professional fees 316,758 513,379 Accrued project costs 576,175 487,869 Contingent consideration 96,909 63,436 Other 234,857 147,590 Total $ 3,458,285 $ 3,435,866 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. A customer of our Stadco subsidiary has provided a notice for collection of additional costs incurred in connection with a certain product manufacturing project. Stadco has booked a contingent loss for approximately $0.8 million which is included on the provision for claims line in the above table.

DEBT

DEBT	3 Months Ended
DEBT	Jun. 30, 2022
DEBT
DEBT	NOTE 12 – DEBT Long-term debt included the following as of: June 30, 2022 March 31, 2022 Stadco Term Loan, at 3.79% interest, due August 2028 $ 3,578,102 $ 3,705,792 Ranor Term Loan, at 5.21% interest, due September 2022 2,336,691 2,363,126 Ranor Revolver Loan, at 2.75% interest, due December 2022 300,000 1,287,002 Total debt $ 6,214,793 $ 7,355,920 Less: debt issue costs unamortized $ 140,774 $ 147,905 Total debt, net $ 6,074,019 $ 7,208,015 Less: Current portion of long-term debt $ 3,083,956 $ 4,093,079 Total long-term debt, net $ 2,990,063 $ 3,114,936 Stadco Term Loan On August 25, 2021, Stadco borrowed $4,000,000 from Berkshire Bank, or the “Stadco Term Loan”. Interest on the Stadco Term Loan is due on unpaid balances beginning on August 25, 2021 at a fixed rate per annum equal to the seven-year Federal Home Loan Bank of Boston Classic Advance Rate plus 2.25%. Since September 25, 2021 and on the 25th day of each month thereafter, Stadco had made and will make monthly payments of principal and interest in the amount of $54,390 each, with all outstanding principal and accrued interest due and payable on August 25, 2028. Interest shall be calculated based on actual days elapsed and a 360-day year. The Company is required to pay a late charge in the amount of 5% of each payment due under the Stadco Term Loan (other than the balloon payment due at maturity) that is more than ten days in arrears. In addition, from and after the date on which the Stadco Term Loan becomes, or at Berkshire Bank’s option, could become due and payable (whether accelerated or not), at maturity, upon default or otherwise, interest shall accrue and shall be immediately due and payable at the default rate equal to 5% per annum greater than the interest rate otherwise in effect, but in no event higher than the maximum interest rate permitted by law. Unamortized debt issue costs at June 30, 2022 and March 31, 2022 were $63,753 and $71,617, respectively. Ranor Term Loan The Ranor Term Loan was made to Ranor by Berkshire Bank in 2016 in the amount of $2.85 million. Payments began on January 20, 2017 and were made in 60 monthly installments of $19,260 each, inclusive of interest at a fixed rate of 5.21% per annum, with all outstanding principal and accrued interest due and payable on the maturity date. On December 17, 2021, Ranor and certain affiliates of the Company entered into a First Amendment to the Amended and Restated Loan Agreement and First Amendment to Promissory Note to extend the maturity date of the Ranor Term Loan from December 20, 2021 to March 18, 2022. On March 18, 2022, Ranor and certain affiliates of the Company entered into a Second Amendment to Amended and Restated Loan Agreement and Second Amendment to Promissory Note to further extend the maturity date of the Ranor Term Loan to June 16, 2022. On June 16, 2022, Ranor and certain affiliates of the Company entered into a Third Amendment to the Amended and Restated Loan Agreement and Third Amendment to the Promissory Note to further extend the maturity date of the Ranor Term Loan to September 16, 2022. A balloon principal payment of approximately $2.4 In accordance with the amended loan agreement, the maximum amount that can now be borrowed under the Revolver loan is $5.0 million. Advances under the Revolver Loan are subject to a borrowing base equal to the lesser of (a) $5.0 The Company agrees to pay to Berkshire Bank, as consideration for Berkshire Bank’s agreement to make the Revolver Loan available, a nonrefundable Revolver Loan fee equal to 0.25% per annum (computed based on a year of 360 days and actual days elapsed) on the difference between the amount of: (a) $5.0 Under the promissory note for the Revolver Loan, the Company can elect to pay interest at an adjusted LIBOR-based rate or an Adjusted Prime Rate. The minimum adjusted LIBOR-based rate is 2.75% and the Adjusted Prime Rate is the greater of (i) the Prime Rate minus 70 basis points or (ii) 2.75%. Interest-only payments on advances made under the Revolver Loan will continue to be payable monthly in arrears. The maturity date of the Revolver Loan is December 20, 2022. This agreement contains customary LIBOR replacement provisions. There was approximately $0.3 million outstanding under the Revolver Loan at June 30, 2022. Interest payments made under the Revolver Loan were $1,961 for the three months ended June 30, 2022. The weighted average interest rate at June 30, 2022 and March 31, 2022 was 2.75% and 2.67%, respectively. Unused borrowing capacity at June 30, 2022 and March 31, 2022 was approximately $3.9 million and $2.8 million, respectively. Unamortized debt issue costs at March 31, 2022 and 2021 were $77,021 and $76,288, respectively. Berkshire Loan Covenants For purposes of this discussion, Ranor and Stadco are referred to together as the “Borrowers”. The Ranor Term Loan, the Stadco Term Loan and the Revolver Loan, or together, the “Berkshire Loans”, may be accelerated upon the occurrence of an event of default as defined in the Berkshire Loan Agreement. Upon the occurrence and during the continuance of any of certain default events, at the option of Berkshire Bank, or automatically without notice or any other action upon the occurrence of any event specified in the loan agreement, the unpaid principal amount of the Loans and the Notes together with accrued interest and all other obligations owing by the Borrowers to Berkshire Bank would become immediately due and payable without presentment, demand, protest, or further notice of any kind. The Borrowers agree to maintain the ratio of the Cash Flow of TechPrecision to the Total Debt Service of TechPrecision of not less than 1.20 to 1.00, measured quarterly on the last day of each fiscal quarter or-annual period of TechPrecision on a trailing twelve (12) month basis, commencing with the fiscal quarter ending as of September 30, 2021. Calculations will be based on the audited (year-end) and unaudited (quarterly) consolidated financial statements of TechPrecision. Quarterly tests will be measured based on the financial statements included in the Company’s quarterly reports on Form 10-Q within sixty days of the end of each quarter, and annual tests will be measured based on the financial statements included in the Company’s annual reports on Form 10-K within one hundred twenty days after the end of each fiscal annual period. Cash Flow means an amount, without duplication, equal to the sum of net income of TechPrecision plus (i) interest expense, plus (ii) taxes, plus (iii) depreciation and amortization, plus (iv) stock-based compensation expense taken by TechPrecision, plus (v) non-cash losses and charges and one time or non-recurring expenses at Berkshire Bank’s discretion, less (vi) the amount of cash distributions, if any, made to shareholders or owners of TechPrecision, less (vii) cash taxes paid by the TechPrecision, all as determined in accordance with U.S. GAAP. Total Debt Service shall mean an amount, without duplication, equal to the sum of (i) all amounts of cash interest paid on liabilities, obligations and reserves of TechPrecision paid by TechPrecision, (ii) all amounts paid by TechPrecision in connection with current maturities of long-term debt and preferred dividends, and (iii) all payments on account of capitalized leases, all as determined in accordance with U.S. GAAP. The Borrowers agree to cause their Balance Sheet Leverage to be less than or equal 2.50 to 1.00. Compliance with the foregoing shall be tested quarterly, as of the last day of each fiscal quarter of the Borrowers, commencing with the fiscal quarter ending September 30, 2021. Balance Sheet Leverage means, at any date of determination, the ratio of Borrowers’ (a) Total Liabilities, less Subordinated Debt, to (b) Net Worth, plus Subordinated Debt. The Borrowers agree that their combined annual capital expenditures shall not exceed $1.5 million. Compliance shall be tested annually, commencing with the fiscal year ending March 31, 2022. The Company was in compliance with all of the financial covenants at March 31, 2022. The Borrowers agree to maintain a Loan-to-Value Ratio of not greater than 0.75 to 1.00. Loan-to-Value Ratio means the ratio of (a) the sum of the outstanding balance of the Ranor Term Loan and the Stadco Term Loan, to (b) the fair market value of the property pledged as collateral for the loan, as determined by an appraisal obtained from time to time by Berkshire Bank, but not more frequently than one time during each 365 day period (provided that Berkshire Bank may obtain an appraisal at any time after either the Ranor Term Loan or the Stadco Term Loan has been accelerated), which appraisals shall be at the expense of the Borrowers. At June 30, 2022, the Company was not in compliance with all of these financial covenants. Berkshire Bank waived the Company’s noncompliance with certain of the financial and related covenants at June 30, 2022. The bank retains the right to act on covenant violations that occur after the date of delivery of the waiver. If the lender had demanded repayment, 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. Collateral securing all the above obligations comprises all personal and real property of the Company, including cash, accounts receivable, inventories, equipment, and financial assets. The Company’s short-term and long-term debt is all privately held with no public market for this debt and is considered to be Level 3 under the fair value hierarchy.

OTHER NONCURRENT LIABILITY

OTHER NONCURRENT LIABILITY	3 Months Ended
OTHER NONCURRENT LIABILITY	Jun. 30, 2022
OTHER NONCURRENT LIABILITY.
OTHER NONCURRENT LIABILITY	NOTE 13 - OTHER NONCURRENT LIABILITY The Company purchased new equipment in fiscal 2022 for contract project work with a certain customer. Under an addendum to the contract purchase orders, that customer agreed to reimburse the Company for the cost of the new equipment. We received the first payment in January 2022 and two additional payments April 2022. In case of a contract breach, at the time of the breach, the customer may claw back the funds based on a prorated ten-year straight-line annual declining balance recovery period. Customer payments received of $1.3 million and $0.3 million are recorded as a noncurrent liability in the condensed consolidated balance sheet at June 30, 2022 and March 31, 2022, respectively.

LEASES

LEASES	3 Months Ended
LEASES	Jun. 30, 2022
LEASES
LEASES	NOTE 14 – LEASES Stadco became party to an amended building and property operating lease and recorded a right of use asset and liability of $6.6 million. Monthly base rent for the property is $78,233 per month, with a 20% discount through November 30, 2022. The term of the lease will expire on June 30, 2030, and the lessee has no right of renewal beyond the expiration date. The lease contains customary default provisions allowing the Landlord to terminate the lease if the lessee fails to remedy a breach of its obligations under the lease within the period specified in the lease, or upon certain events of bankruptcy or seizure or attachment of the lessee’s assets or interest in the lease. The lease also contains other customary provisions for real property leases of this type. The following table lists our right-of-use assets and liabilities on our condensed consolidated balance sheets at: June 30, 2022 March 31, 2022 Finance lease: Right of use asset – operating lease $ 6,649,744 $ 6,649,744 Right of use asset – finance leases 125,032 125,032 Amortization (555,531) (391,161) Right of use asset, net $ 6,219,245 $ 6,383,615 Lease liability – operating lease $ 6,251,853 $ 6,374,691 Lease liability – finance leases 56,048 72,908 Total lease liability $ 6,307,901 $ 6,447,599 Other supplemental information regarding our leases are contained in the following tables: Components of lease expense for the three months ended: June 30, 2022 June 30, 2021 Operating lease amortization $ 158,071 $ 1,234 Finance lease amortization $ 6,300 $ 2,283 Finance lease interest $ 544 $ 362 Weighted average lease term and discount rate at: June 30, 2022 June 30, 2021 Lease term (years) – finance 2.70 5.00 Lease term (years) – operating 8.00 — Lease rate - finance 3.7 % 3.2 % Lease rate - operating 4.5 % — Supplemental cash flow information related to leases for the three months ended: June 30, 2022 June 30, 2021 Cash used in operating activities $ 193,393 $ 1,596 Cash used in financing activities $ 16,860 $ 2,113 Maturities of lease liabilities as of June 30 for each of the next five years and thereafter: 2023 $ 911,059 2024 952,881 2025 948,701 2026 946,226 2027 938,801 Thereafter 2,738,171 Total lease payments $ 7,435,839 Less: imputed interest 1,127,938 Total $ 6,307,901

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 15 – COMMITMENTS AND CONTINGENCIES Employment Agreements We have employment agreements with each of our executive officers. Such agreements provide for minimum salary levels, adjustable annually, and incentive bonuses that are payable if specified company goals are attained. The aggregate commitment at June 30, 2022 for future executive salaries and bonus was approximately $0.6 million. The aggregate commitment at June 30, 2022 for accrued payroll, vacation and holiday pay was approximately $0.8 million for the remainder of our employees. 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 $22,123 and $21,388 for the three months ended June 30, 2022 and 2021, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
SEGMENT INFORMATION	Jun. 30, 2022
SEGMENT INFORMATION.
SEGMENT INFORMATION	NOTE 16 – SEGMENT INFORMATION The Company has two wholly-owned subsidiaries, Ranor and Stadco that are reportable segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All of the Company’s operations, assets, and customers are located in the U.S. Each reportable segment focuses on the manufacture and assembly of specific components, primarily for defense, aerospace and other industrial customers. However, both segments have separate operating, engineering, and sales teams. The Chief Operating Decision Maker, or CODM, evaluates the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs. Corporate costs include executive and director compensation, stock-based compensation, and other corporate and administrative expenses not allocated to the segments. The segment operating profit metric is what the CODM uses in evaluating our results of operations and the financial measure that provides insight into our overall performance and financial position. The following table provides summarized financial information for our segments: June 30, 2022 June 30, 2021 Ranor $ 4,725,931 $ 3,412,229 Stadco 2,350,426 — Net sales from external customers $ 7,076,357 $ 3,412,229 Ranor operating income 1,352,662 427,466 Stadco operating loss (1,458,791) — Corporate and unallocated (1) (451,880) (327,406) Total operating (loss) income $ (558,009) $ 100,060 Interest expense and other expense (116,870) (19,488) PPP loan forgiveness — 1,317,100 Consolidated (loss) income before income taxes $ (674,879) $ 1,397,672 Depreciation and amortization Ranor 131,600 182,678 Stadco 453,761 — Totals $ 585,361 $ 182,678 Capital expenditures Ranor 62,233 4,198 Stadco 141,748 — Totals $ 203,981 $ 4,198 (1) Corporate general costs include executive and director compensation, and other corporate administrative expenses not allocated to the segments. Prior period segment data is restated to reflect the new reportable segments.

ACCOUNTING STANDARDS UPDATE

ACCOUNTING STANDARDS UPDATE	3 Months Ended
ACCOUNTING STANDARDS UPDATE	Jun. 30, 2022
ACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE	NOTE 17 – ACCOUNTING STANDARDS UPDATE New Accounting Standards Recently Adopted In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities About Government Assistance In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. Earnings Per Share

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2022
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation - These notes to the condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the “SEC”, for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements and related notes should be read in conjunction with the consolidated financial statements included with our Annual Report on Form 10-K for the fiscal year ended March 31, 2022, filed with the SEC on August 10, 2022.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements -
Risks and Uncertainties	Risks and Uncertainties -
Liquidity and Going Concern	Liquidity and Going Concern – As of June 30, 2022, we had $4.5 million in total available liquidity, consisting of $0.6 million in cash and cash equivalents, and $3.9 million in undrawn capacity under our revolver loan. As of March 31, 2022, we had $3.9 million in total available liquidity, consisting of $1.1 million in cash and cash equivalents, and $2.8 million in undrawn capacity under our revolver loan. On June 16, 2022, Ranor entered into a Third Amendment to Amended and Restated Loan Agreement and Third Amendment to Promissory Note to further extend the maturity date of the Ranor Term Loan to September 16, 2022. The Company has commenced negotiations of a further amended and restated loan agreement with Berkshire Bank, including a potential modification of the loan covenants. We intend to refinance the original term loan made by Berkshire Bank to Ranor in the principal amount of $2.85 million (the “Ranor Term Loan”) by borrowing on terms similar to the current loan and using the proceeds to pay down certain existing debt obligations and lowering our debt levels and debt service requirements. However, there can be no assurance that we will be successful in negotiating for these terms with Berkshire Bank or any other lender. Our debt financing agreements limit our capital expenditures to $1.5 million annually and contain loan to value, balance sheet leverage, and debt service coverage ratio covenants. At June 30, 2022, the Company was not in compliance with all of these financial covenants. Berkshire Bank waived the Company’s noncompliance with certain of the financial and related covenants at June 30, 2022. The bank retains the right to act on covenant violations that occur after the date of delivery of the waiver. 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. In order for us to continue operations beyond the next twelve months and be able to discharge our liabilities and commitments in the normal course of business, we must secure new long-term financing on terms consistent with our near-term business plans. We had cash and cash equivalents of $0.6 million and working capital of $2.6 million, a decrease of $0.2 million when compared to March 31, 2022. We believe our available cash, plus cash expected to be provided by operations, Employee Retention Credit cash refunds of approximately $0.9 million, and borrowing capacity available under the revolver loan (until the expiration date of December 20, 2022), will be sufficient to fund our operations, expected capital expenditures, and principal and interest payments under our lease and debt obligations through the next 12 months from the issuance date of our financial statements. Our revolver loan matures in December 2022 and will not be available to provide liquidity unless it is renewed. The Company intends to renew the revolver loan with Berkshire Bank. There was $0.3 million outstanding under the revolver loan at June 30, 2022, and $3.9 million of available liquidity. The uncertainty associated with the refinancing of the Ranor Term Loan which is due on September 16, 2022, and the Revolver Loan which is due on December 20, 2022, raises substantial doubt about our ability to continue as a going concern. The condensed consolidated financial statements for the three months ended June 30, 2022, were prepared on the basis of a going concern which contemplates that we will be able to realize assets and discharge liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should we be required to liquidate assets. Our ability to satisfy our current liabilities and to continue as a going concern is dependent upon the timely availability of long-term financing and successful execution of our operating plan. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	3 Months Ended
BUSINESS COMBINATION (Tables)	Jun. 30, 2022
BUSINESS COMBINATION
Schedule of assets acquired and liabilities assumed recognized at acquisition date	Adjusted Reported at ERTC Customer Fixed Totals August 25, refundable claim 2 Asset August 25, 2021 credit 1 Warrant 3 Valuation 4 2021 Total consideration transferred $ 10,163,164 — $ 46,256 — $ 10,209,420 Recognized amounts of identifiable assets acquired and liabilities assumed: — — — — — Accounts receivable 1,247,015 — — — 1,247,015 Inventory 927,188 — — — 927,188 Other current assets 4,323,593 1,093,661 — — 5,417,254 Property, plant, and equipment and right of use assets 15,074,273 — — 897,488 15,971,761 Accounts payable, accrued expenses, and other current liabilities (5,882,048) (164,049) (606,415) — (6,652,512) Lease obligations (6,701,286) — — — (6,701,286) Net assets 8,988,735 929,612 (606,415) 897,488 10,209,420 Goodwill 1,174,429 (929,612) 652,671 (897,488) — Total $ 10,163,164 $ — $ 46,256 $ — $ 10,209,420 All measurement period adjustments were offset against goodwill: 1 In calendar year 2021 our Stadco subsidiary filed for a refund of tax credits for $1,093,661 from the IRS under the Employee Retention Credit, or ERC program. Fees associated with the filing totaled $164,049 . 2 Customer claim of $471,166 accrued for additional costs incurred in connection with a certain product manufacturing project. Other adjustments to current liabilities totaled $135,249 . 3 Warrant issued to former shareholder in connection with the acquisition valued at $46,256 . 4 Fixed asset adjustments related to changes in preliminary valuation assumptions and estimates, including estimates of asset useful lives.
Schedule of pro forma results	Pro Forma Three months ended June 30, 2021 Net sales $ 7,835,528 Operating income $ 61,355 Income before income taxes $ 1,190,153 Net income $ 1,162,625 EPS basic $ 0.03 EPS dilutive $ 0.03 Weighted average shares outstanding: Basic 34,267,450 Diluted 35,822,898

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
REVENUE (Tables)	Jun. 30, 2022
Schedule of net sales on a disaggregated basis by market and contract type	Net Sales by market Defense Industrial Totals Three months ended June 30, 2022 $ 6,840,924 $ 235,433 $ 7,076,357 Three months ended June 30, 2021 $ 3,103,132 $ 309,097 $ 3,412,229 Net Sales by contract type Over-time Point-in-time Totals Three months ended June 30, 2022 $ 6,622,093 $ 454,264 $ 7,076,357 Three months ended June 30, 2021 $ 3,122,649 $ 289,580 $ 3,412,229
Schedule of contract assets	Progress Unbilled payments Total June 30, 2022 $ 15,185,780 $ (6,383,138) $ 8,802,642 March 31, 2022 $ 14,216,187 $ (5,865,956) $ 8,350,231
Sales
Schedule of revenues from customers who accounted for more than 10% of our net sales	June 30, 2022 June 30, 2021 Customer Amount Percent Amount Percent A $ 1,296,387 18 % $ 1,303,772 38 % B $ 1,763,591 25 % $ * * % C $ 735,758 11 % $ 938,856 28 % D $ 1,071,874 15 % $ * * % *Less than 10% of total

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Jun. 30, 2022
EARNINGS PER SHARE
Schedule of basic and diluted earnings per share computations	June 30, June 30, 2022 2021 Basic EPS Net (loss) income $ (501,165) $ 1,371,092 Weighted average shares 34,307,450 29,498,662 Net (loss) income per share $ (0.01) $ 0.05 Diluted EPS Net (loss) income $ (501,165) $ 1,371,092 Dilutive effect of stock options — 1,555,448 Weighted average shares 34,307,450 31,054,110 Net (loss) income per share $ (0.01) $ 0.04

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
STOCK-BASED COMPENSATION (Tables)	Jun. 30, 2022
STOCK-BASED COMPENSATION
Schedule of information about options granted	Weighted Average Weighted Aggregate Remaining Number Of Average Intrinsic Contractual Life Options Exercise Price Value (in years) Outstanding at 3/31/2021 2,719,000 $ 0.372 $ 2,476,300 5.62 Canceled (49,000) Outstanding at 3/31/2022 2,670,000 $ 0.343 $ 3,597,700 4.66 Outstanding at 6/30/2022 2,670,000 $ 0.343 $ 3,130,450 4.42 Vested or expected to vest at 6/30/2022 2,670,000 $ 0.343 $ 3,130,450 4.42 Exercisable and vested at 6/30/2022 2,670,000 $ 0.343 $ 3,130,450 4.42
Schedule of exercise price range	Weighted Average Remaining Weighted Weighted Options Contractual Average Options Average Range of Exercise Prices: Outstanding Term Exercise Price Exercisable Exercise Price $0.01‑$0.49 1,270,000 3.35 $ 0.12 1,270,000 $ 0.12 $0.50‑$0.99 1,400,000 4.90 $ 0.55 1,400,000 $ 0.55 Totals 2,670,000 2,670,000

CONCENTRATION OF CREDIT RISK (T

CONCENTRATION OF CREDIT RISK (Tables)	3 Months Ended
CONCENTRATION OF CREDIT RISK (Tables)	Jun. 30, 2022
Accounts Receivable
Concentration of credit risk and major customers
Schedule of revenues from customers who accounted for more than 10% of our net sales	June 30, 2022 March 31, 2022 Customer Dollars Percent Dollars Percent A $ 875,027 35 % $ 1,079,264 36 % B $ * * % $ 436,051 14 % C $ 521,107 21 % $ * * % D $ 265,937 11 % $ 382,789 13 % E $ * * % $ 309,500 10 % *less than 10% of total

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	3 Months Ended
OTHER CURRENT ASSETS (Tables)	Jun. 30, 2022
OTHER CURRENT ASSETS
Schedule of other current assets	Other current assets included the following as of: June 30, 2022 March 31, 2022 Prepaid taxes $ 4,222 $ 26,497 ERC refundable credits 347,208 1,093,661 Prepaid insurance 148,878 184,275 Prepaid subscriptions 132,113 66,098 Payments advanced to suppliers 21,100 21,100 Employee advances 12,517 9,668 Prepaid advisory fees, other 62,027 20,160 Total $ 728,065 $ 1,421,459

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	3 Months Ended
PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	Jun. 30, 2022
PROPERTY, PLANT AND EQUIPMENT, NET
Schedule of components of property, plant and equipment, net	Property, plant and equipment, net consisted of the following as of: June 30, 2022 March 31, 2022 Land $ 110,113 $ 110,113 Building and improvements 3,289,901 3,289,901 Machinery equipment, furniture, and fixtures 20,934,635 20,860,152 Construction in progress 129,498 — Total property, plant, and equipment 24,464,147 24,260,166 Less: accumulated depreciation (11,527,991) (11,107,001) Total property, plant and equipment, net $ 12,936,156 $ 13,153,165

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
ACCRUED EXPENSES (Tables)	Jun. 30, 2022
ACCRUED EXPENSES
Schedule of accrued expenses	Accrued expenses included the following as of: June 30, 2022 March 31, 2022 Accrued compensation $ 939,530 $ 947,938 Provision for claims 935,382 935,382 Provision for contract losses 358,674 340,272 Accrued professional fees 316,758 513,379 Accrued project costs 576,175 487,869 Contingent consideration 96,909 63,436 Other 234,857 147,590 Total $ 3,458,285 $ 3,435,866

DEBT (Tables)

DEBT (Tables)	3 Months Ended
DEBT (Tables)	Jun. 30, 2022
DEBT
Schedule of outstanding debt obligations	Long-term debt included the following as of: June 30, 2022 March 31, 2022 Stadco Term Loan, at 3.79% interest, due August 2028 $ 3,578,102 $ 3,705,792 Ranor Term Loan, at 5.21% interest, due September 2022 2,336,691 2,363,126 Ranor Revolver Loan, at 2.75% interest, due December 2022 300,000 1,287,002 Total debt $ 6,214,793 $ 7,355,920 Less: debt issue costs unamortized $ 140,774 $ 147,905 Total debt, net $ 6,074,019 $ 7,208,015 Less: Current portion of long-term debt $ 3,083,956 $ 4,093,079 Total long-term debt, net $ 2,990,063 $ 3,114,936

LEASES (Tables)

LEASES (Tables)	3 Months Ended
LEASES (Tables)	Jun. 30, 2022
LEASES
Schedule of right-of-use assets and lease liabilities	June 30, 2022 March 31, 2022 Finance lease: Right of use asset – operating lease $ 6,649,744 $ 6,649,744 Right of use asset – finance leases 125,032 125,032 Amortization (555,531) (391,161) Right of use asset, net $ 6,219,245 $ 6,383,615 Lease liability – operating lease $ 6,251,853 $ 6,374,691 Lease liability – finance leases 56,048 72,908 Total lease liability $ 6,307,901 $ 6,447,599
Schedule of supplemental Information of leases	Components of lease expense for the three months ended: June 30, 2022 June 30, 2021 Operating lease amortization $ 158,071 $ 1,234 Finance lease amortization $ 6,300 $ 2,283 Finance lease interest $ 544 $ 362 Weighted average lease term and discount rate at: June 30, 2022 June 30, 2021 Lease term (years) – finance 2.70 5.00 Lease term (years) – operating 8.00 — Lease rate - finance 3.7 % 3.2 % Lease rate - operating 4.5 % —
Schedule of supplemental cash flow information	Supplemental cash flow information related to leases for the three months ended: June 30, 2022 June 30, 2021 Cash used in operating activities $ 193,393 $ 1,596 Cash used in financing activities $ 16,860 $ 2,113
Schedule of maturities of lease liabilities	2023 $ 911,059 2024 952,881 2025 948,701 2026 946,226 2027 938,801 Thereafter 2,738,171 Total lease payments $ 7,435,839 Less: imputed interest 1,127,938 Total $ 6,307,901

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
SEGMENT INFORMATION (Tables)	Jun. 30, 2022
SEGMENT INFORMATION.
Summary of financial information for segments	The following table provides summarized financial information for our segments: June 30, 2022 June 30, 2021 Ranor $ 4,725,931 $ 3,412,229 Stadco 2,350,426 — Net sales from external customers $ 7,076,357 $ 3,412,229 Ranor operating income 1,352,662 427,466 Stadco operating loss (1,458,791) — Corporate and unallocated (1) (451,880) (327,406) Total operating (loss) income $ (558,009) $ 100,060 Interest expense and other expense (116,870) (19,488) PPP loan forgiveness — 1,317,100 Consolidated (loss) income before income taxes $ (674,879) $ 1,397,672 Depreciation and amortization Ranor 131,600 182,678 Stadco 453,761 — Totals $ 585,361 $ 182,678 Capital expenditures Ranor 62,233 4,198 Stadco 141,748 — Totals $ 203,981 $ 4,198 (1) Corporate general costs include executive and director compensation, and other corporate administrative expenses not allocated to the segments. Prior period segment data is restated to reflect the new reportable segments.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2021	Jun. 16, 2021
Liquidity on net income (loss)	$ (500)	$ (300)
Total available liquidity	4,500	3,900
cash and cash equivalents	600	1,100
Unused borrowing capacity			$ 2,800
capital expenditures limit	1,500
Working capital	2,600
Line of credit outstanding	300
Available of liquidity	3,900
Decrease of working capital	200
Cash refunds on employee benefits	900
Revolver loan
Unused borrowing capacity	3,900	$ 2,800
Berkshire Loan \| Revolver loan
Unused borrowing capacity	$ 3,900
Ranor Term Loan [Member] \| Berkshire Loan
Principal amount of debt				$ 2,850

BUSINESS COMBINATION - Assets a

BUSINESS COMBINATION - Assets acquired and liabilities assumed recognized at the acquisition date (Details) - Stadco	Aug. 25, 2021 USD ($)
Business Acquisition [Line Items]
Total consideration transferred	$ 10,209,420
Recognized amounts of identifiable assets acquired and liabilities assumed:
Accounts receivable	1,247,015
Inventory	927,188
Other current assets	5,417,254
Property, plant, and equipment and right of use assets	15,971,761
Accounts payable, accrued expenses, and other current liabilities	(6,652,512)
Lease obligations	(6,701,286)
Net assets	10,209,420
Total	10,209,420
Reported as
Business Acquisition [Line Items]
Total consideration transferred	10,163,164
Recognized amounts of identifiable assets acquired and liabilities assumed:
Accounts receivable	1,247,015
Inventory	927,188
Other current assets	4,323,593
Property, plant, and equipment and right of use assets	15,074,273
Accounts payable, accrued expenses, and other current liabilities	(5,882,048)
Lease obligations	(6,701,286)
Net assets	8,988,735
Goodwill	1,174,429
Total	10,163,164
ERTC refundable credit
Recognized amounts of identifiable assets acquired and liabilities assumed:
Other current assets	1,093,661
Accounts payable, accrued expenses, and other current liabilities	(164,049)
Net assets	929,612
Goodwill	(929,612)
Customer claim
Business Acquisition [Line Items]
Total consideration transferred	46,256
Recognized amounts of identifiable assets acquired and liabilities assumed:
Accounts payable, accrued expenses, and other current liabilities	(606,415)
Net assets	(606,415)
Goodwill	652,671
Total	46,256
Fixed Asset Valuation
Recognized amounts of identifiable assets acquired and liabilities assumed:
Property, plant, and equipment and right of use assets	897,488
Net assets	897,488
Goodwill	$ (897,488)

BUSINESS COMBINATION - Proforma

BUSINESS COMBINATION - Proforma results (Details) - Stadco	3 Months Ended
BUSINESS COMBINATION - Proforma results (Details) - Stadco	Jun. 30, 2021 USD ($) $ / shares shares
Stadco actual
Net sales	$ 7,835,528
Operating income	61,355
Income before income taxes	1,190,153
Net income	$ 1,162,625
EPS basic \| $ / shares	$ 0.03
EPS dilutive \| $ / shares	$ 0.03
Weighted average shares outstanding - basic \| shares	34,267,450
Weighted average shares outstanding - diluted \| shares	35,822,898

BUSINESS COMBINATION - Addition

BUSINESS COMBINATION - Additional information (Details)		3 Months Ended
BUSINESS COMBINATION - Additional information (Details)	Aug. 25, 2021 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2021 USD ($)
Business Acquisition [Line Items]
Liability estimated with contingent consideration		$ 96,909
Depreciation, Depletion and Amortization		585,361	$ 182,678
Net change interest expense		83,645	29,878
Income tax expense (benefit)		(173,714)	26,580
Depreciation and amortization		$ 585,361	182,678
Warrants vesting period		3 years
Exercise Price of Warrants or Rights \| $ / shares		$ 1.43
Fair Value of Warrants		$ 46,256
Expected volatility		50
Volatility
Business Acquisition [Line Items]
Warrants and Rights Outstanding, Measurement Input		46.7
Risk Free Interest Rate
Business Acquisition [Line Items]
Warrants and Rights Outstanding, Measurement Input		0.4
SPA
Business Acquisition [Line Items]
Shares to be purchased pursuant to agreements \| shares	3,202,727
Purchase price \| $ / shares	$ 1.10
Securities offering costs	$ 300,000
Acquisition Sub \| Amended and Restated Loan Purchase and Sale Agreement
Business Acquisition [Line Items]
Aggregate payment	7,900,000
Stadco
Business Acquisition [Line Items]
Consideration transferred amount	10,209,420
Maximum value of contingent consideration		$ 2,269,000
Other adjustments to current liabilities		135,249
Rebate of tax credits		164,049
Fair Value of Warrants		46,256
Stadco \| ERTC refundable credit
Business Acquisition [Line Items]
Refund of tax credits		1,093,661
Stadco \| Customer claim
Business Acquisition [Line Items]
Consideration transferred amount	$ 46,256
Additional costs accrued with certain product manufacturing project		471,166
Stadco \| Pro Forma
Business Acquisition [Line Items]
Depreciation, Depletion and Amortization			53,712
Acquisition related costs			311,905
Management Fee Expense		$ 188,806
Net change interest expense			$ 160,261
Stadco \| Common Stock
Business Acquisition [Line Items]
Number of shares of common stock and warrants issued for acquired business \| shares	1,466,061
Consideration transferred amount	$ 2,300,000
Stadco \| Common Stock \| Holders Of Certain Other Non-Bank Indebtedness [Member]
Business Acquisition [Line Items]
Number of shares of common stock and warrants issued for acquired business \| shares	199,395
Stadco \| Common Stock \| Other security holders
Business Acquisition [Line Items]
Number of shares of common stock and warrants issued for acquired business \| shares	600,000
Issuance of warrant \| shares	100,000
Stadco \| SPA
Business Acquisition [Line Items]
Consideration transferred amount	$ 113,890
Stadco \| Holdco \| Common Stock
Business Acquisition [Line Items]
Number of shares of common stock and warrants issued for acquired business \| shares	666,666

REVENUE - Disaggregated Basis (

REVENUE - Disaggregated Basis (Details) - USD ($)	3 Months Ended
REVENUE - Disaggregated Basis (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2021
Revenue from Contract with Customer, Including Assessed Tax	$ 7,076,357	$ 3,412,229
Over-time
Revenue from Contract with Customer, Including Assessed Tax	6,622,093	3,122,649
Point-in-time
Revenue from Contract with Customer, Including Assessed Tax	454,264	289,580
Defense
Revenue from Contract with Customer, Including Assessed Tax	6,840,924	3,103,132
Industrial
Revenue from Contract with Customer, Including Assessed Tax	$ 235,433	$ 309,097

REVENUE - Net Sales from Custom

REVENUE - Net Sales from Customers (Details) - USD ($)	3 Months Ended
REVENUE - Net Sales from Customers (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2021
Revenues	$ 7,076,357	$ 3,412,229
Customer A \| Customer Concentration Risk \| Sales Revenue, Net
Revenues	$ 1,296,387	$ 1,303,772
Concentration risk percentage	18%	38%
Customer B \| Customer Concentration Risk \| Sales Revenue, Net
Revenues	$ 1,763,591
Concentration risk percentage	25%
Customer C \| Customer Concentration Risk \| Sales Revenue, Net
Revenues	$ 735,758	$ 938,856
Concentration risk percentage	11%	28%
Customer D \| Customer Concentration Risk \| Sales Revenue, Net
Revenues	$ 1,071,874
Concentration risk percentage	15%

REVENUE - Contract Assets and C

REVENUE - Contract Assets and Contract Liabilities (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
Contract assets	$ 8,802,642	$ 8,350,231
Unbilled
Contract assets	15,185,780	14,216,187
Progress payments
Contract assets	$ (6,383,138)	$ (5,865,956)

REVENUE - Additional informatio

REVENUE - Additional information (Details) $ in Millions	3 Months Ended
REVENUE - Additional information (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligation Amount	$ 45.9
Revenue Remaining Performance Obligation Completed Less Than 50	$ 43.6
Revenue, Remaining Performance Obligation, Percentage	50%
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligation Expected Timing of Satisfaction Period	3 months
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligation Expected Timing of Satisfaction Period	36 months
Revenue Recognized By Contract Liabilities	$ 0.5

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
INCOME TAXES (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2021
INCOME TAXES
Income tax (benefit) provision	$ (173,714)	$ 26,580
Effective tax rate	25.70%
Effective tax rate due to non-taxable income		2%
Loan forgiveness		$ 1,317,100
Deferred Tax Assets, Valuation Allowance	$ 2,000,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
EARNINGS PER SHARE (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2021
Basic EPS
Net (loss) income	$ (501,165)	$ 1,371,092
Weighted average shares	34,307,450	29,498,662
Net (loss) income per share	$ (0.01)	$ 0.05
Diluted EPS
Net (loss) income	$ (501,165)	$ 1,371,092
Dilutive effect of stock options		1,555,448
Weighted average shares	34,307,450	31,054,110
Net (loss) income per share	$ (0.01)	$ 0.04
Stock options
Diluted EPS
Antidilutive securities excluded from computation of earnings per share amount (in shares)	2,720,000
Warrants
Diluted EPS
Antidilutive securities excluded from computation of earnings per share amount (in shares)	100,000

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2021
Number Of Options
Outstanding at the beginning of the period (in shares)	2,670,000	2,719,000
Canceled (in shares)		(49,000)
Outstanding at the end of the period (in shares)	2,670,000	2,670,000	2,719,000
Vested or expected to vest at the end of the period (in shares)	2,670,000
Exercisable and vested at the end of the period (in shares)	2,670,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 0.343	$ 0.372
Outstanding at the end of the period (in dollars per share)	0.343	$ 0.343	$ 0.372
Vested or expected to vest at the end of the period (in dollars per share)	0.343
Exercisable and vested at the end of the period (in dollars per share)	$ 0.343
Aggregate Intrinsic Value
Outstanding Value at the beginning of the period	$ 3,597,700	$ 2,476,300
Outstanding Value at the end of the period	3,130,450	$ 3,597,700	$ 2,476,300
Vested or expected to vest at the end of the period	3,130,450
Exercisable and vested at the end of the period	$ 3,130,450
Weighted Average Remaining Contractual Life (in years)
Outstanding at the end of the period	4 years 5 months 1 day	4 years 7 months 28 days	5 years 7 months 13 days
Vested or expected to vest at the end of the period	4 years 5 months 1 day
Exercisable and vested at the end of the period	4 years 5 months 1 day

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock Options Outstanding By Exercise Price (Details)	3 Months Ended
	Jun. 30, 2022 $ / shares shares
Stock Based Compensation By Exercise Price Range
Options Outstanding \| shares	2,670,000
Options Exercisable \| shares	2,670,000
Range One
Stock Based Compensation By Exercise Price Range
Exercise Price, Lower Range	$ 0.01
Exercise Price, Upper Range	$ 0.49
Options Outstanding \| shares	1,270,000
Options Outstanding, Weighted Average Remaining Contractual Term	3 years 4 months 6 days
Options Outstanding, Weighted Average Exercise Price	$ 0.12
Options Exercisable \| shares	1,270,000
Options Exercisable, Weighted Average Exercise Price	$ 0.12
Range Two
Stock Based Compensation By Exercise Price Range
Exercise Price, Lower Range	0.50
Exercise Price, Upper Range	$ 0.99
Options Outstanding \| shares	1,400,000
Options Outstanding, Weighted Average Remaining Contractual Term	4 years 10 months 24 days
Options Outstanding, Weighted Average Exercise Price	$ 0.55
Options Exercisable \| shares	1,400,000
Options Exercisable, Weighted Average Exercise Price	$ 0.55

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)			3 Months Ended		12 Months Ended
	Jan. 24, 2022	Sep. 17, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022	Mar. 31, 2021
Share based compensation
Maximum contractual term (in years)			4 years 5 months 1 day		4 years 7 months 28 days	5 years 7 months 13 days
Stock based compensation expense			$ 52,107	$ 33,500
Fair value number of shares expected to vest	$ 34,000
Exercise price of warrants			$ 1.43
Restricted Stock
Share based compensation
Granted a total of shares of restricted stock		100,000
Stock based compensation cost		$ 175,000
Stock based compensation expense			$ 52,107
Total unrecognized compensation cost related to restricted stock awards			$ 56,973
2016 Plan
Share based compensation
Number of shares of common stock			5,000,000
Shares available for grant			1,350,000
Shares reserved			5,000,000
Maximum
Share based compensation
Maximum contractual term (in years)			10 years
Executive Officers \| 2016 Plan
Share based compensation
Restricted stock award (in shares)	20,000
Executive cash award	$ 35,000

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details)	3 Months Ended	12 Months Ended
CONCENTRATION OF CREDIT RISK (Details)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
Concentration of credit risk and major customers
Accounts receivable	$ 2,507,367	$ 3,009,249
Accounts Receivable \| Customer Concentration Risk \| Customers
Concentration of credit risk and major customers
Concentration risk percentage	10%
Accounts Receivable \| Customer Concentration Risk \| Customer A
Concentration of credit risk and major customers
Accounts receivable	$ 875,027	$ 1,079,264
Concentration risk percentage	35%	36%
Accounts Receivable \| Customer Concentration Risk \| Customer B
Concentration of credit risk and major customers
Accounts receivable		$ 436,051
Concentration risk percentage		14%
Accounts Receivable \| Customer Concentration Risk \| Customer C
Concentration of credit risk and major customers
Accounts receivable	$ 521,107
Concentration risk percentage	21%
Accounts Receivable \| Customer Concentration Risk \| Customer D
Concentration of credit risk and major customers
Accounts receivable	$ 265,937	$ 382,789
Concentration risk percentage	11%	13%
Accounts Receivable \| Customer Concentration Risk \| Customer E
Concentration of credit risk and major customers
Accounts receivable		$ 309,500
Concentration risk percentage		10%
Trade Receivables
Concentration of credit risk and major customers
Number of significant customers	3
Trade Receivables \| Customer Concentration Risk \| Customer A,C,D
Concentration of credit risk and major customers
Concentration risk percentage	67%

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
OTHER CURRENT ASSETS
Prepaid taxes	$ 4,222	$ 26,497
ERC refundable credits	347,208	1,093,661
Prepaid insurance	148,878	184,275
Prepaid subscriptions	132,113	66,098
Payments advanced to suppliers	21,100	21,100
Employee advances	12,517	9,668
Prepaid advisory fees, other	62,027	20,160
Total	$ 728,065	$ 1,421,459

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
Property, Plant and Equipment, Net
Total property, plant and equipment	$ 24,464,147	$ 24,260,166
Less: accumulated depreciation	(11,527,991)	(11,107,001)
Total property, plant and equipment, net	12,936,156	13,153,165
Land
Property, Plant and Equipment, Net
Property, plant and equipment, Gross	110,113	110,113
Building and improvements
Property, Plant and Equipment, Net
Property, plant and equipment, Gross	3,289,901	3,289,901
Machinery equipment, furniture, and fixtures
Property, Plant and Equipment, Net
Property, plant and equipment, Gross	20,934,635	$ 20,860,152
Construction in Progress [Member]
Property, Plant and Equipment, Net
Property, plant and equipment, Gross	$ 129,498

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
ACCRUED EXPENSES
Accrued compensation	$ 939,530	$ 947,938
Provision for claims	935,382	935,382
Provision for contract losses	358,674	340,272
Accrued professional fees	316,758	513,379
Accrued project costs	576,175	487,869
Contingent consideration	96,909	63,436
Other	234,857	147,590
Total	3,458,285	$ 3,435,866
contingent loss	$ 800,000

DEBT - Long-term Debt (Details)

DEBT - Long-term Debt (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
Long-term Debt
Total debt	$ 6,214,793	$ 7,355,920
Less: debt issue costs unamortized	140,774	147,905
Total debt, net	6,074,019	7,208,015
Less: Current portion of long-term debt	3,083,956	4,093,079
Total long-term debt, net	2,990,063	3,114,936
Stadco Term Loan at 3.79% interest, due August 2028.
Long-term Debt
Total debt	$ 3,578,102	$ 3,705,792
Interest rate (as a percent)	3.79%	3.79%
Ranor Term Loan, at 5.21% interest, due September 2022
Long-term Debt
Total debt	$ 2,336,691	$ 2,363,126
Interest rate (as a percent)	5.21%	5.21%
Ranor Revolver Loan, at 2.75% interest, due December 2022
Long-term Debt
Total debt	$ 300,000	$ 1,287,002
Interest rate (as a percent)	2.75%	2.75%

DEBT - Additional Information (

DEBT - Additional Information (Details)			3 Months Ended	12 Months Ended
DEBT - Additional Information (Details)	Aug. 25, 2021 USD ($)	Dec. 21, 2016 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Debt Instrument [Line Items]
Late fee (in percent)			5
Default interest rate			5
Weighted average interest rate (as a percent)			2.75%	2.67%
Unused borrowing capacity					$ 2,800,000
Unamortized closing costs				$ 77,021	$ 76,288
Revolver loan
Debt Instrument [Line Items]
Interest payments			$ 1,961
Unused borrowing capacity			$ 3,900,000	2,800,000
Berkshire Loan
Debt Instrument [Line Items]
Annual capital expenditure				1,500,000
Debt Instrument Covenant Loan To Value Ratio			0.75
Berkshire Loan \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum Amount Of Borrowing Base Required To Grant Loan Advance		$ 5,000,000
Debt Instrument Percentage Of Accounts Receivable Used For Determination Of Aggregate Amount Of Advances		80%
Debt Instrument Percentage Of Eligible Raw Material Used For Determination Of Aggregate Amount Of Advances		25%
Amount Included In Sum To Calculate Maximum Borrowing Base		$ 250,000
Berkshire Loan \| Revolver loan
Debt Instrument [Line Items]
Maximum Amount Of Borrowing Base Required To Grant Loan Advance			$ 5,000,000
Amount outstanding			300,000
Unused borrowing capacity			$ 3,900,000
Nonrefundable Commitment Fee percentages			0.25%
Adjusted interest rate (as a percent)		2.75%
Berkshire Loan \| Revolver loan \| Prime Rate
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)		2.75%
Basis spread on variable rate (as a percent)		70%
Berkshire Loan \| Secured Term Loan
Debt Instrument [Line Items]
Principal amount of debt		$ 2,850,000
Maturity term		60 months
Debt instrument, Periodic Payment		$ 19,260
Interest rate (as a percent)		5.21%
Berkshire Loan \| Notes Payable, Other Payables
Debt Instrument [Line Items]
Debt Instrument Percentage Of Appraised Value Of Equipment For Determination Of Aggregate Amount Of Advances		80%
Berkshire Loan \| Ranor, Inc.
Debt Instrument [Line Items]
Debt Instrument Covenant Trailing Period For Measurement Of Loan To Value Ratio			365 days
Berkshire Loan \| Maximum
Debt Instrument [Line Items]
Cash flow ratio of debt service			1.20
Debt Instrument Covenant Leverage Ratio Year One			2.50
Berkshire Loan \| Minimum
Debt Instrument [Line Items]
Cash flow ratio of debt service			1
Debt Instrument Covenant Leverage Ratio Year One			1
Stadco Term Loan at 3.79% interest, due August 2028
Debt Instrument [Line Items]
Principal amount of debt	$ 4,000,000
Maturity term	7 years
Debt instrument, Periodic Payment	$ 54,390
Stadco Term Loan at 3.79% interest, due August 2028 \| FHLBBC advance rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%
Stadco Term Loan at 2.25% interest, due August 2028
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense			$ 63,753	$ 71,617

OTHER NONCURRENT LIABILITY - Ad

OTHER NONCURRENT LIABILITY - Additional Information (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
OTHER NONCURRENT LIABILITY.
Other noncurrent liability	$ 1,298,274	$ 305,071

LEASES (Details)

LEASES (Details) - USD ($)	3 Months Ended
LEASES (Details) - USD ($)	Jun. 30, 2022	Mar. 31, 2022
Other lease assets and liabilities	$ 6,600,000
Right of use asset - finance leases	6,219,245	$ 6,383,615
Building and property lease
Monthly payments	$ 78,233
Percentage of discount on base rent	20%
Right of use asset - operating lease	$ 6,649,744	6,649,744
Right of use asset - finance leases	125,032	125,032
Amortization	(555,531)	(391,161)
Right of use asset, net	6,219,245	6,383,615
Lease liability - operating lease	6,251,853	6,374,691
Lease liability - finance leases	56,048	72,908
Total lease liability	$ 6,307,901	$ 6,447,599

LEASES - Other supplemental inf

LEASES - Other supplemental information of Leases (Details) - USD ($)	3 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
LEASES
Operating lease amortization	$ 158,071	$ 1,234
Finance lease amortization	6,300	2,283
Finance lease interest	$ 544	$ 362
Lease term (years) - finance	2 years 8 months 12 days	5 years
Lease term (years) - operating	8 years	0 years
Lease rate - finance	3.70%	3.20%
Lease rate - operating	4.50%

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow information (Details) - USD ($)	3 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
LEASES
Cash used in operating activities	$ 193,393	$ 1,596
Cash used in financing activities	$ 16,860	$ 2,113

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details)	Jun. 30, 2022 USD ($)
Maturities of lease liabilities
2023	$ 911,059
2024	952,881
2025	948,701
2026	946,226
2027	938,801
Thereafter	2,738,171
Total lease payments	7,435,839
Less: imputed interest	1,127,938
Total	$ 6,307,901

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
Aggregate commitment for future executive salaries and bonus	$ 600,000
Aggregate commitment for accrued payroll, vacation and holiday	800,000
Contractual commitments
Defined Contribution Plan, Cost	$ 22,123	$ 21,388

SEGMENT INFORMATION - Financial

SEGMENT INFORMATION - Financial information for segments (Details) - USD ($)	3 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
SEGMENT INFORMATION
Number of reportable segment	2
Net sales from external customers	$ 7,076,357	$ 3,412,229
Total operating (loss) income	(558,009)	100,060
Interest expense and other expense	(116,870)	(19,488)
PPP loan forgiveness		1,317,100
Consolidated (loss) income before income taxes	(674,879)	1,397,672
Depreciation and amortization	585,361	182,678
Capital expenditures	203,981	4,198
Corporate and unallocated
SEGMENT INFORMATION
Total operating (loss) income	(451,880)	(327,406)
Ranor, Inc.
SEGMENT INFORMATION
Net sales from external customers	4,725,931	3,412,229
Total operating (loss) income	1,352,662	427,466
Depreciation and amortization	131,600	182,678
Capital expenditures	62,233	$ 4,198
Stadco
SEGMENT INFORMATION
Net sales from external customers	2,350,426
Total operating (loss) income	(1,458,791)
Depreciation and amortization	453,761
Capital expenditures	$ 141,748