TechPrecision .(TPCS) - 2025 Q3 - Quarterly Report

Revenue and Financial Performance - Consolidated revenue for the three months ended September 30, 2024, was $8,946 million, a 12% increase from $7,970 million in the same period of 2023[135]. - Ranor's revenue increased by $295 million, or 7%, to $4,790 million, while Stadco's revenue rose by $617 million, or 17%, to $4,223 million[135][136]. - Consolidated revenue for the six months ended September 30, 2024, was $16,932 million, a 10% increase from $15,341 million in the same period of 2023[153]. - Stadco reported revenue of $7,827 for the six months ended September 30, 2024, an increase of $1,254, or 19%, compared to $6,573 for the same period in 2023[156]. Profitability and Losses - Consolidated gross profit decreased by $21 million, or 2%, to $1,014 million, with a gross margin of 11% compared to 13% in the prior year[137]. - Ranor's gross profit increased by $474 million, with a gross margin improvement to 17% from 13% year-over-year[138]. - Stadco reported a gross profit loss of $504 million, with a gross margin of (6)%, down from 0% in the same period last year[139]. - For the three months ended September 30, 2024, the operating loss was $488 million, an improvement of $109 million compared to the operating loss of $597 million in the same period of 2023[143]. - The net loss for the three months ended September 30, 2024, was $601 million, or $0.06 per share, compared to a net loss of $528 million, also $0.06 per share, in the prior year[151]. - The company recorded a net loss of $2,061, or $0.22 per share, for the six months ended September 30, 2024, compared to a net loss of $1,056, or $0.12 per share, for the same period in 2023[170]. - EBITDA for the six months ended September 30, 2024, was negative $425,000, compared to negative $8,000 for the same period in 2023, indicating a decline of $417,000[208]. Operational Highlights - The company has a manufacturing facility of 145,000 square feet in Massachusetts, capable of producing precision components weighing up to 100 tons[104]. - The company primarily targets repeating custom programs with stable designs, focusing on long-term solutions for customers[110]. - The backlog at Ranor increased to $21,714 million as of September 30, 2024, compared to $19,125 million in the same period of 2023[155]. - Stadco's backlog increased to $26,927 as of September 30, 2024, from $25,543 in 2023, indicating strong demand for components related to various programs[157]. Liquidity and Financing - The company entered into a Securities Purchase Agreement on July 3, 2024, selling 521,800 shares and warrants for a total of $1.801 million, aimed at raising working capital[122]. - As of September 30, 2024, total available liquidity was approximately $1,275, consisting of $1,143 in undrawn capacity under the Revolver Loan and $132 in cash[172]. - The company invested $1,622 in new factory machinery and equipment for the six months ended September 30, 2024, down from $2,659 in the same period in 2023[180]. - The Company is exploring various means to strengthen its liquidity position, including making Stadco operations profitable and renewing the revolver loan[199]. - The maturity date of the Revolver Loan has been extended multiple times, with the latest extension to April 30, 2025[193]. Compliance and Regulatory Matters - The company is registered and compliant with ITAR, ensuring adherence to U.S. defense regulations[105]. - The Company acknowledges an Existing Default due to failure to meet the required minimum Debt Service Coverage Ratio for the twelve-month periods ending March 31, 2024, and September 30, 2024[194]. Risks and Challenges - The company has faced risks related to reliance on individual purchase orders and external factors such as supply chain inefficiencies and government regulations[100]. - The uncertainty surrounding recurring operating losses at Stadco raises substantial doubt about the Company's ability to continue as a going concern for at least one year[202]. - The Company plans to monitor expenses closely and may reduce operating costs to enhance liquidity[201].