TechPrecision .(TPCS) - 2025 Q2 - Quarterly Results

Revenue Performance - Revenue for the first quarter of FY 2025 was $8.0 million, an increase of 8% compared to $7.4 million in the same period of FY 2024[4] - Consolidated revenue for the three months ended June 30, 2024, was $7,986,000, an increase of 8% compared to $7,371,000 for the same period in 2023[18] Cost and Profitability - The cost of revenue increased by 16% to $7.7 million, primarily due to higher production costs at Stadco[4] - The cost of revenue increased to $7,747,000, representing a 16% increase from $6,677,000 in the prior year[18] - Gross profit decreased by 66% to $238,000, attributed to higher production costs and under-absorbed overhead at Stadco[4] - Gross profit decreased significantly to $238,000, down 66% from $694,000 in the same quarter of 2023[18] - EBITDA for the three months ended June 30, 2024, was negative $634,000, a decline of $615,000 from negative $19,000 in the prior year[22] Losses and Financial Health - The operating loss for the first quarter was $1.3 million, compared to a loss of $0.6 million in the same quarter of the previous year[4] - The net loss for the quarter was $1.5 million, with a full valuation maintained on deferred tax assets[4] - The net loss for the three months ended June 30, 2024, was $1,460,160, compared to a net loss of $527,455 for the same period in 2023[19] Cash and Working Capital - Cash and cash equivalents decreased to approximately $45,000, down $93,000 since March 31, 2024[5] - Cash and cash equivalents at the end of the period were $44,797, a decrease from $271,918 at the end of June 2023[19] - Working capital was negative $1.7 million as of June 30, 2024, with total debt at $7.5 million[5] Expenses and Fees - SG&A expenses totaled $1.6 million, an increase from $1.3 million in the same period last year, primarily due to a $0.4 million breakup fee related to the terminated Votaw acquisition[4] - The company recognized a one-time non-cash breakup fee of $0.4 million from the termination of the Votaw acquisition, impacting the bottom line for the first quarter[3] - The company incurred $116,423 in cash paid for interest, net of amounts capitalized, compared to $94,087 in the prior year[19] Accounts Payable and Cash Flow - The company reported a significant increase in accounts payable, totaling $2,209,214, compared to a decrease of $1,480,387 in the previous year[19] - The company experienced a cash outflow of $30,905 from investing activities, a significant reduction from $1,854,002 in the same quarter of 2023[19] Customer Confidence - Customer confidence remains high with a backlog of $41.2 million as of June 30, 2024, expected to be delivered over the next one to three fiscal years[3] Fair Value Changes - The company reported a change in fair value of stock acquisition termination fee amounting to $419,200, which was not present in the previous year[19]