PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) Unaudited condensed consolidated financial statements for TechPrecision Corporation for the three and nine months ended December 31, 2020, detail financial position and performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased, driven by contract assets and cash, while liabilities rose due to increased long-term debt, slightly increasing stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Dec 31, 2020 | Mar 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $9,384 | $8,250 | | **Total Assets** | $15,625 | $14,580 | | **Total Current Liabilities** | $5,213 | $2,654 | | **Total Liabilities** | $5,931 | $5,111 | | **Total Stockholders' Equity** | $9,694 | $9,469 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20%28LOSS%29%20INCOME) Net loss significantly improved for Q3 2020, and the company achieved net income for the nine months, reversing prior-year losses due to higher gross profit Key Operational Results (in thousands) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $3,570 | $3,667 | $11,566 | $11,076 | | **Gross Profit** | $705 | $314 | $2,531 | $1,837 | | **(Loss) Income from Operations** | $(11) | $(348) | $326 | $(308) | | **Net (Loss) Income** | $(48) | $(320) | $106 | $(390) | | **Net (Loss) Income per Share (Basic)** | $(0.00) | $(0.01) | $0.00 | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Operating activities used cash, investing activities funded equipment, while financing activities, primarily a PPP loan, led to a net cash increase Cash Flow Summary for Nine Months Ended Dec 31 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash (Used in) Provided by Operating Activities** | $(340) | $609 | | **Net Cash Used in Investing Activities** | $(547) | $(35) | | **Net Cash Provided by (Used in) Financing Activities** | $1,211 | $(643) | | **Net Increase (Decrease) in Cash** | $324 | $(68) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail accounting policies, revenue recognition, debt, and subsequent events, including revenue disaggregation, debt facilities, and the Stadco acquisition - The company manufactures large-scale metal fabricated and machined precision components for defense, aerospace, nuclear, medical, and precision industrial markets, with all operations and customers located in the United States[18](index=18&type=chunk) - The company's operations were designated an essential service, allowing it to maintain operations during the first nine months of fiscal 2021 despite the COVID-19 pandemic[23](index=23&type=chunk) Net Sales by Market (Nine Months Ended Dec 31) | Market | 2020 | 2019 | | :--- | :--- | :--- | | Defense | $9,314,846 | $9,725,635 | | Industrial | $2,251,330 | $1,349,985 | | **Total** | **$11,566,176** | **$11,075,620** | - As of December 31, 2020, the company had **$18.4 million** of remaining performance obligations (backlog), which it expects to recognize as revenue over the next thirty-six months[27](index=27&type=chunk) - On October 16, 2020, the company entered into a stock purchase agreement to acquire Stadco, a manufacturer of high-precision parts for aerospace and defense, for 1,000,000 shares of common stock and a reduction of Stadco's liabilities[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes financial performance for the three and nine months ended December 31, 2020, covering key drivers for sales, gross margin, net income, liquidity, capital resources, debt, and the Stadco acquisition [Results of Operations - Three Months Ended December 31, 2020 and 2019](index=22&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20December%2031%2C%202020%20and%202019) Q3 FY21 net sales decreased, but gross margin dramatically improved due to the absence of contract loss provisions, leading to a substantially reduced net loss Q3 Financial Performance Comparison (in thousands) | Metric | Q3 2020 | Q3 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $3,569 | $3,667 | $(98) | (3)% | | **Gross Profit** | $705 | $314 | $391 | 124% | | **Loss from Operations** | $(11) | $(349) | $338 | 97% | | **Net Loss** | $(48) | $(320) | $272 | 85% | - The significant improvement in gross profit and margin was primarily due to the absence of major contract loss provisions in Q3 2020, which had negatively impacted the same period in the prior fiscal year[87](index=87&type=chunk)[88](index=88&type=chunk) [Results of Operations - Nine Months Ended December 31, 2020 and 2019](index=24&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20December%2031%2C%202020%20and%202019) Net sales for the nine months increased, driven by commercial markets, while gross margin expanded due to a better product mix and absence of prior-year losses, resulting in a swing to net income Nine-Month Financial Performance Comparison (in thousands) | Metric | Nine Months 2020 | Nine Months 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $11,566 | $11,075 | $491 | 4% | | **Gross Profit** | $2,531 | $1,837 | $694 | 38% | | **Income (Loss) from Operations** | $325 | $(308) | $633 | 206% | | **Net Income (Loss)** | $106 | $(390) | $496 | 127% | - Sales to commercial markets, particularly in nuclear energy and medical, increased by **$0.9 million**, driving the overall revenue growth for the nine-month period[96](index=96&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is strong with cash and working capital, bolstered by a PPP loan and unused revolving credit, deemed sufficient for 12 months, though new financing may be sought for the Stadco acquisition Key Liquidity Measures (in thousands) | Measure | Dec 31, 2020 | Mar 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,255 | $931 | | Working capital | $4,170 | $5,595 | | Total debt | $3,823 | $2,587 | - In May 2020, the company's subsidiary Ranor received a **$1,317,100** unsecured loan under the Paycheck Protection Program (PPP), which may be partially or fully forgiven[106](index=106&type=chunk)[45](index=45&type=chunk) - The company's revolving line of credit with Berkshire Bank was increased to **$3.0 million** and its maturity was extended to December 20, 2022, with **$3.0 million** unused capacity at December 31, 2020[111](index=111&type=chunk)[114](index=114&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=29&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) TechPrecision Corporation, as a smaller reporting company, has elected not to provide the required market risk disclosures - The company has opted out of providing market risk disclosures, as permitted for a smaller reporting company[125](index=125&type=chunk) [Controls and Procedures](index=29&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[127](index=127&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter ended December 31, 2020, that have materially affected, or are reasonably likely to materially affect, internal controls[131](index=131&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=31&type=section&id=Item%201A.Risk%20Factors) This section outlines significant risks associated with the pending Stadco acquisition, including completion uncertainty, integration challenges, operational disruption, and potential stockholder dilution without expected benefits - The completion of the Stadco acquisition is subject to closing conditions, including arrangements with Stadco's lenders, and there is no assurance these conditions will be met[132](index=132&type=chunk) - The company may face difficulties integrating Stadco's operations, corporate culture, and systems, which could prevent the realization of anticipated synergies and benefits[133](index=133&type=chunk) - The announcement and pendency of the acquisition could disrupt business by causing uncertainty for employees, customers, and suppliers, and by diverting management's attention[134](index=134&type=chunk) - Stockholders face the risk of substantial ownership dilution from the shares issued for the acquisition, which may not be matched by a commensurate benefit if the combined company fails to achieve its strategic and financial goals[136](index=136&type=chunk) [Exhibits](index=34&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including the Stock Purchase Agreement for the Stadco acquisition, corporate governance documents, loan modifications, and CEO/CFO certifications - Key exhibits filed include the Stock Purchase Agreement for the Stadco acquisition and the Fourth Modification to the Loan Agreement with Berkshire Bank[139](index=139&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 53% increase in net sales for Q2 2021, reaching $4.7 million compared to $3.1 million in the same quarter a year ago [6][9] - Gross profit for Q2 2021 was $1.1 million, an increase of $700,000 from the previous year, with gross margin improving to 23.9% [10] - Net income for Q2 2021 was $271,000, or $0.01 per share, compared to a net income of $155,000 for the six months ended September 30, 2020 [11][12] Business Line Data and Key Metrics Changes - Sales in the defense sector increased by $363,000, while sales to the precision industrial sector rose by $1.3 million compared to the same quarter last year [9] - For the six months ended September 30, 2020, revenue increased by 8% to $8 million, driven by an increase in sales to the precision industrial sector [11] Market Data and Key Metrics Changes - The sales order backlog was reported at $14.8 million as of September 30, 2020, with over $5.1 million in new orders booked during Q2 2021 [7] - The company continues to see significant opportunities in the defense sector, particularly from prime defense contractors [7] Company Strategy and Development Direction - The company is focused on serving the U.S. defense industry, specifically in naval submarine manufacturing, with meaningful opportunities anticipated in the nuclear submarine business [14] - The U.S. Navy awarded a $9.47 billion contract modification related to the Columbia Class, indicating strong future demand in the defense sector [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrying improvements in revenues and margins into the remainder of fiscal year 2021 [6] - There are uncertainties regarding the order flow due to COVID-19, but management hopes for a resolution as the situation improves [24][25] Other Important Information - The company reported cash on hand of $1.1 million and total debt of $3.9 million as of September 30, 2020, with net debt increasing to $2.8 million [13] - Management refrained from discussing ongoing due diligence and negotiations regarding a proposed acquisition [16] Q&A Session Summary Question: Has the company added any backlog since the end of the quarter? - Yes, it has been added [20][21] Question: Is the backlog meaningful? - Yes, it is meaningful [21] Question: Can you provide an idea of how meaningful the backlog is? - Management stated they are not allowed to discuss that [22] Question: Do you believe the order flow has finally broken the logjam, particularly for the Columbia Class? - Management indicated uncertainty but expressed hope for improvement as COVID-19 impacts lessen [23][25] Question: Will there be a call to discuss the acquisition when able? - Management reiterated they cannot discuss the acquisition at this time [27]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission File Number: 000-51378 TechPrecision Corporation (Exact name of registrant as specified in its charter) | ...

TechPrecision Corporation (NASDAQ:TPCS) Q1 2021 Earnings Conference Call August 13, 2020 4:30 PM ET Company Participants Brett Maas - IR, Hayden IR Alex Shen - CEO Tom Sammons - CFO Conference Call Participants Aaron Warwick - ES Capital Mark Gomes - Pipeline Ross Taylor - ARS Investment Mark Gomes - Pipeline Data Operator Good day, ladies and gentlemen, welcome to your TechPrecision First Quarter 2021 Earnings Call and Webcast. All lines have been placed in a listen-only mode and the floor will be open for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission File Number: 000-51378 TechPrecision Corporation (Exact name of registrant as specified in its charter) | Dela ...

TechPrecision Corporation (NASDAQ:TPCS) Q4 2020 Earnings Conference Call June 11, 2020 4:30 PM ET Company Participants Brett Maas - IR, Hayden IR Alex Shen - Chief Executive Officer Tom Sammons - Chief Financial Officer Conference Call Participants Ross Taylor - ARS Aaron Warwick - ES Capital Mark Gomes - Pipeline Richard Gulick - REG Cap Advisors Operator Ladies and gentlemen, hello and welcome. Thank you for joining us for today 's TechPrecision Fourth Quarter 2020 Earnings Call and Webcast. All participa ...

PART I [Business](index=4&type=section&id=Item%201.%20Business) TechPrecision manufactures precision metal components for defense, energy, and industrial sectors, operating on a build-to-print model with significant defense customer concentration - The company provides end-to-end services, transforming raw materials into precision finished products for customers in the defense, energy, and precision industrial markets[11](index=11&type=chunk) - Operations are conducted on a **"build-to-print" model**, manufacturing products based on customer designs without owning intellectual property or manufacturing in anticipation of orders[19](index=19&type=chunk) Net Sales by Industry Group (FY 2020 vs. FY 2019) | Industry Group | FY 2020 Sales ($ thousands) | FY 2020 Percent | FY 2019 Sales ($ thousands) | FY 2019 Percent | | :--- | :--- | :--- | :--- | :--- | | Defense | $13,368 | 83% | $15,060 | 90% | | Energy | $595 | 4% | $1,281 | 8% | | Precision Industrial | $2,044 | 13% | $361 | 2% | - The company experiences significant customer concentration, with the **ten largest customers accounting for approximately 97% of total revenue in fiscal 2020** and **98% in fiscal 2019**[34](index=34&type=chunk) - The company's order backlog increased to approximately **$16.8 million at March 31, 2020**, up from **$12.6 million at March 31, 2019**, expected to be delivered over the next two fiscal years[38](index=38&type=chunk) - Designated an **"Essential Service"** during COVID-19, the company continued operations but faced impacts on customers, suppliers (extended lead times), and its labor force, securing a **$1.32 million PPP loan** in May 2020 to mitigate uncertainty[23](index=23&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from competition, high customer concentration, reliance on purchase orders, COVID-19 impacts, single facility operations, and substantial indebtedness - The company is highly dependent on a small number of customers, with the **largest customer accounting for 22% of revenue in FY2020** and the **top three for 52% in FY2020** and **70% in FY2019**[54](index=54&type=chunk) - The COVID-19 pandemic has negatively affected customers, suppliers, and the labor force, potentially leading to customer shutdowns, supply delays, and production disruptions, which could materially impact fiscal 2021 results[52](index=52&type=chunk)[53](index=53&type=chunk) - A significant portion of revenue is derived from the defense industry (**83% in fiscal 2020**), making the company vulnerable to reductions or shifts in U.S. government defense spending[74](index=74&type=chunk) - All manufacturing and production are conducted at a **single facility in Westminster, Massachusetts**, increasing exposure to business disruption from localized catastrophic events[64](index=64&type=chunk)[65](index=65&type=chunk) - The company's level of indebtedness could impair its ability to operate, react to market changes, and fund operations, as a substantial portion of cash flow is dedicated to debt service[89](index=89&type=chunk) [Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[115](index=115&type=chunk) [Properties](index=23&type=section&id=Item%202.%20Properties) The company owns its 145,000 square foot office and manufacturing facility in Westminster, Massachusetts, which is collateral for its loans with Berkshire Bank - The company owns a **145,000 square foot office and manufacturing facility in Westminster, Massachusetts**, adequate for current operations[116](index=116&type=chunk) - The Westminster property is used as collateral to secure loans from Berkshire Bank[116](index=116&type=chunk) [Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) The company agreed to a **$495,000 settlement** in a class-action lawsuit regarding a personal time off policy modification, pending court approval - A class-action lawsuit was filed by nine former employees of Ranor concerning a modification to the company's personal time off (PTO) policy in April 22014[117](index=117&type=chunk) - On March 16, 2020, the parties agreed to a settlement of **$495,000**, to be paid within 60 days of court approval[118](index=118&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable to the registrant[119](index=119&type=chunk) [Information about our Executive Officers](index=23&type=section&id=Information%20about%20our%20Executive%20Officers) The company's executive officers are Alexander Shen (CEO) and Thomas Sammons (CFO), with brief biographies detailing their professional experience Executive Officers | Name | Age | Position | | :--- | :--- | :--- | | Alexander Shen | 58 | Chief Executive Officer | | Thomas Sammons | 65 | Chief Financial Officer | PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the OTCQB Market under **"TPCS"**, with approximately **1,193 record holders**, and no dividends are paid or anticipated due to loan restrictions - The company's common stock is traded on the OTCQB Market with the ticker symbol **"TPCS"**[125](index=125&type=chunk) - As of May 26, 2020, there were approximately **1,193 record holders** of common stock[126](index=126&type=chunk) - The company has never paid dividends and does not plan to in the foreseeable future, with covenants in its Berkshire Bank loan agreement prohibiting dividend payments[126](index=126&type=chunk) [Selected Financial Data](index=24&type=section&id=Item%206.%20Selected%20Financial%20Data) As a smaller reporting company, TechPrecision has elected not to provide the information required by this item - The company, as a smaller reporting company, has opted out of providing selected financial data[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2020 net sales decreased to **$16.0 million**, resulting in a **net loss of $0.3 million** due to lower gross margin, with anticipated COVID-19 impacts in fiscal 2021 and liquidity from operations and a PPP loan [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Fiscal 2020 saw net sales decrease **4%** to **$16.0 million**, gross profit fall **32%** to **$3.1 million** (margin **19.6%**), leading to an operating loss of **$0.1 million** and a net loss of **$0.3 million** Consolidated Statement of Operations Summary (FY 2020 vs. FY 2019) | (in thousands) | FY 2020 | FY 2019 | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $16,007 | $16,703 | $(696) | (4)% | | Gross profit | $3,139 | $4,585 | $(1,446) | (32)% | | Operating (loss) income | $(142) | $1,838 | $(1,980) | (108)% | | Net (loss) income | $(342) | $1,101 | $(1,443) | (131)% | - Net sales decreased by **4%** in fiscal 2020, driven by a **$1.7 million decline in the defense market** and a **$0.7 million decline in the energy market**, partially offset by a **$1.7 million increase in the industrial market**[166](index=166&type=chunk) - Gross margin decreased from **27.6% in fiscal 2019 to 19.6% in fiscal 2020**, primarily due to **$1.0 million in cost overruns** on certain customer projects and a higher allocation of labor to less profitable projects[169](index=169&type=chunk)[170](index=170&type=chunk) - A provision of **$495,000** was recorded for a claims settlement related to a civil action brought by former employees concerning a paid time-off program[172](index=172&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2020, the company had **$0.9 million in cash** and **$5.6 million in working capital**, with **$0.7 million** net cash from operations, and secured a **$1.3 million PPP loan** post-year-end Selected Liquidity and Capital Measures (as of March 31) | (in thousands) | 2020 | 2019 | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $931 | $2,037 | $(1,106) | | Working capital | $5,595 | $6,250 | $(655) | | Total debt | $2,587 | $4,297 | $(1,710) | - In January 2020, the company repaid in full its indebtedness under two loan schedules with People's Capital and Leasing Corp., terminating the agreements[177](index=177&type=chunk)[178](index=178&type=chunk) - In December 2019, the company modified its loan agreement with Berkshire Bank, increasing the maximum principal on its Revolver Loan from **$1.0 million to $3.0 million** and lowering the interest rate[183](index=183&type=chunk)[184](index=184&type=chunk) - Subsequent to fiscal year-end, on May 8, 2020, the company obtained a **$1,317,100 unsecured loan** under the Paycheck Protection Program (PPP) to mitigate uncertainty caused by the COVID-19 pandemic[181](index=181&type=chunk) Contractual Obligations as of March 31, 2020 | (in thousands) | Total ($ thousands) | Less than 1 Year ($ thousands) | 1-3 Years ($ thousands) | | :--- | :--- | :--- | :--- | | Debt obligations | $2,587 | $110 | $2,477 | | Interest on debt | $233 | $135 | $98 | | Purchase obligations | $1,095 | $1,095 | - | | Claims settlement | $495 | $495 | - | | **Total** | **$4,794** | **$2,219** | **$2,575** | [EBITDA Non-GAAP Financial Measure](index=35&type=section&id=EBITDA%20Non-GAAP%20Financial%20Measure) The company uses EBITDA, a non-GAAP measure, to evaluate operating performance, reporting **$0.6 million** for fiscal 2020, a significant decrease from **$2.6 million** in fiscal 2019 Reconciliation of Net (Loss) Income to EBITDA | (in thousands) | March 31, 2020 | March 31, 2019 | | :--- | :--- | :--- | | Net (loss) income | $(342) | $1,101 | | Income tax (benefit) expense | (73) | 423 | | Interest expense | 296 | 355 | | Depreciation | 718 | 750 | | **EBITDA** | **$599** | **$2,629** | [Quantitative and Qualitative Disclosure About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) As a smaller reporting company, TechPrecision has elected not to provide the information required by this item - The company, as a smaller reporting company, has opted out of providing quantitative and qualitative disclosures about market risk[196](index=196&type=chunk) [Financial Statements and Supplementary Data](index=36&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2020 and 2019, including the independent auditor's report and detailed notes on accounting policies [Consolidated Balance Sheets](index=37&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2020, total assets were **$14.6 million** (down from **$16.0 million** in 2019), total liabilities decreased to **$5.1 million** (from **$6.3 million**), and stockholders' equity was **$9.5 million** Consolidated Balance Sheet Summary (as of March 31) | (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $8,250 | $9,176 | | Total assets | $14,580 | $16,047 | | **Liabilities & Equity** | | | | Total current liabilities | $2,654 | $2,926 | | Total liabilities | $5,111 | $6,336 | | Total stockholders' equity | $9,469 | $9,711 | | Total liabilities and stockholders' equity | $14,580 | $16,047 | [Consolidated Statements of Operations and Comprehensive (Loss) Income](index=38&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) Fiscal 2020 net sales were **$16.0 million**, gross profit **$3.1 million**, resulting in an operating loss of **$141,284** and a net loss of **$341,569** (**($0.01) per share**), a significant decrease from fiscal 2019 Consolidated Statement of Operations Summary (Year Ended March 31) | (in thousands, except per share data) | 2020 | 2019 | | :--- | :--- | :--- | | Net sales | $16,007 | $16,703 | | Gross profit | $3,139 | $4,584 | | (Loss) income from operations | $(141) | $1,838 | | Net (loss) income | $(342) | $1,101 | | Net (loss) income per share – diluted | $(0.01) | $0.04 | [Consolidated Statements of Cash Flows](index=40&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Fiscal 2020 saw **$0.7 million** net cash from operations, **$40,000** used in investing, and **$1.7 million** used in financing (debt repayment), leading to a **$1.1 million** net decrease in cash and a **$0.9 million** year-end balance Consolidated Statement of Cash Flows Summary (Year Ended March 31) | (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $677 | $531 | | Net cash used in investing activities | $(40) | $(411) | | Net cash used in financing activities | $(1,743) | $(773) | | Net decrease in cash and cash equivalents | $(1,106) | $(652) | | Cash and cash equivalents, end of period | $931 | $2,037 | [Notes to Consolidated Financial Statements](index=41&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition (ASC 606), **$7.5 million** federal net operating loss carryforwards, debt facilities, stock-based compensation, a **$495,000** legal settlement, and a subsequent **$1.3 million PPP loan** - The company recognizes the majority of its revenue over time, using an inputs methodology based on estimated labor hours to measure performance progress, with **$12.6 million of revenue recognized over-time** and **$3.4 million at a point-in-time** in fiscal 2020[227](index=227&type=chunk)[247](index=247&type=chunk) - As of March 31, 2020, the company had federal net operating loss carryforwards of approximately **$7.5 million**, which begin to expire in 2026[254](index=254&type=chunk) - In January 2020, the company repaid in full its equipment loan facility with People's Capital and Leasing Corp[288](index=288&type=chunk)[289](index=289&type=chunk) - Subsequent to the fiscal year-end, on May 8, 2020, the company's subsidiary Ranor received a loan of **$1,317,100** under the Paycheck Protection Program (PPP)[299](index=299&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=61&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[302](index=302&type=chunk) [Controls and Procedures](index=61&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of March 31, 2020, the CEO and CFO concluded that disclosure controls and internal control over financial reporting were effective, with no material changes reported - Management, including the CEO and CFO, concluded that as of March 31, 2020, the company's disclosure controls and procedures were effective at a reasonable assurance level[304](index=304&type=chunk) - Management assessed the effectiveness of internal control over financial reporting based on the **2013 COSO framework** and concluded that it was effective as of March 31, 2020[307](index=307&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of fiscal 2020 that materially affected, or are reasonably likely to materially affect, internal controls[308](index=308&type=chunk) [Other Information](index=61&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Not Applicable[309](index=309&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=62&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, audit committee, and code of ethics is incorporated by reference from the 2020 Proxy Statement - Information required by this item is incorporated by reference from the registrant's 2020 Annual Meeting of Stockholders Proxy Statement[311](index=311&type=chunk) [Executive Compensation](index=62&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2020 Annual Meeting of Stockholders Proxy Statement - Information required by this item is incorporated by reference from the registrant's 2020 Annual Meeting of Stockholders Proxy Statement[312](index=312&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=62&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the company's 2020 Annual Meeting of Stockholders Proxy Statement - Information required by this item is incorporated by reference from the registrant's 2020 Annual Meeting of Stockholders Proxy Statement[313](index=313&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=63&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2020 Annual Meeting of Stockholders Proxy Statement - Information required by this item is incorporated by reference from the registrant's 2020 Annual Meeting of Stockholders Proxy Statement[314](index=314&type=chunk) [Principal Accountant Fees and Services](index=63&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2020 Annual Meeting of Stockholders Proxy Statement - Information required by this item is incorporated by reference from the registrant's 2020 Annual Meeting of Stockholders Proxy Statement[315](index=315&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=63&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed as part of the Form 10-K report, with financial statement schedules omitted as not applicable - This section lists the financial statements included in Item 8 and states that financial statement schedules have been omitted because they are not applicable or the required information is included elsewhere[317](index=317&type=chunk) - An index of exhibits filed with the report is provided, including corporate governance documents, material contracts, and certifications[318](index=318&type=chunk)[319](index=319&type=chunk) [Form 10-K Summary](index=64&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[321](index=321&type=chunk)

TechPrecision Corp (NASDAQ:TPCS) Q4 2019 Earnings Conference Call February 13, 2020 4:30 PM ET Company Participants Jeff Stanlis - Hayden IR Alexander Shen - CEO & President Thomas Sammons - CFO Conference Call Participants Ross Taylor - ARS Investment Partners John Hardison - Private Investor Operator Good day, ladies and gentlemen, and welcome to your TechPrecision Third Quarter 2020 Earnings Call. [Operator Instructions]. At this time, it is my pleasure to turn the floor over to Jeff Stanlis with Hayde ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission File Number: 000-51378 TechPrecision Corporation (Exact name of registrant as specified in its charter) | ...

Financial Data and Key Metrics Changes - Net sales for Q2 fiscal 2020 were $3.1 million, a decrease from $3.6 million in Q2 fiscal 2019, reflecting a 14% decline [6][8] - The net loss for Q2 fiscal 2020 was $291,000 compared to a net income of $345,100 for the same period a year ago [7][10] - For the six months ended September 30, 2019, net sales decreased by $312,000 or 4% to $7.4 million compared to $7.7 million for the same period in 2018 [8][10] - Gross margin for the six months ended September 30, 2019 was 20.6% [9] Business Line Data and Key Metrics Changes - The backlog at September 30, 2019 totaled $16.4 million, an increase of $3.8 million compared to $12.6 million at March 31, 2019 [5] - Cost of sales for Q2 fiscal 2020 was $2.7 million, up from $2.5 million in the same quarter the previous year [6] Market Data and Key Metrics Changes - The company continues to see meaningful opportunities in the defense sector, particularly in the nuclear submarine business for the next 12 months and beyond [12] Company Strategy and Development Direction - The company aims to operate above current revenue and operating income levels and return to profitability during the second half of fiscal 2020 [5] - Management is focused on the defense industry, specifically naval submarine manufacturing, and is excited about the start-up of multiple new projects [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the backlog increase and the potential for future profitability, indicating that the losses incurred were primarily due to start-up costs for new projects [35][36] - The company is cautious about revealing specific future revenue expectations due to competitive reasons [111][119] Other Important Information - Cash provided by operating activities was $0.9 million for the six months ended September 30, 2019 [11] - The company has a net debt of $1.3 million at the end of Q2 fiscal 2020 [11] Q&A Session Summary Question: What is the current backlog? - Management indicated that they cannot provide the current backlog number as it is netted against revenue recognized [15] Question: Is Block 5 effective and funded? - Management confirmed that Block 5 is a viable program but could not provide specific funding details [21][22] Question: Can you discuss the cost issues on a project loss? - Management explained that the losses were due to start-up costs for new projects and do not expect these losses to repeat [34][36] Question: What is the expected capital spending program over the next one to two years? - Management declined to answer due to competitive reasons [73] Question: Are there any non-defense business opportunities? - Management stated that non-defense business is pursued opportunistically, but the focus remains on defense [77] Question: Will the company announce large orders received mid-quarter? - Management indicated that they would need client permission and must balance competitive concerns before making announcements [116] Question: How does revenue become realized through the process? - Management explained that revenue is recognized when items ship or through percent complete revenue on certain projects [132]