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 fulfils its obligations can be between three and thirty -six months. The Company invoices and receives related payments based upon performance progress not less frequently than monthly.

Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on labor hours, materials, and other estimated costs to complete a contract to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio comprises fixed-price contracts and provides for product and service type revenue.

The following table presents revenue on a disaggregated basis by market and contract type:

Revenue by market

  ​ ​ ​

Defense

  ​ ​ ​

Industrial

  ​ ​ ​

Totals

Year ended March 31, 2026

$

31,223

$

421

$

31,644

Year ended March 31, 2025

$

33,599

$

432

$

34,031

Revenue by contract type

  ​ ​ ​

Over-time

  ​ ​ ​

Point-in-time

  ​ ​ ​

Totals

Year ended March 31, 2026

$

29,576

$

2,068

$

31,644

Year ended March 31, 2025

$

31,323

$

2,708

$

34,031

As of March 31, 2026, the Company had $52,198 of remaining performance obligations, of which $46,900 was less than 50% complete. The Company expects to recognize all 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 revenue for the fiscal years ended:

March 31, 2026

March 31, 2025

 

Customer

  ​ ​ ​

Amount

  ​ ​ ​

Percent

  ​ ​ ​

Amount

  ​ ​ ​

Percent

 

Customer A

$

3,570

 

11

%  

$

5,795

 

17

%

Customer B

$

*

 

*

%  

$

3,327

 

10

%

Customer C

$

4,733

 

15

%  

$

4,947

 

15

%

Customer D

$

3,403

11

%  

$

*

*

%

Customer E

$

4,756

15

%  

$

7,671

22

%

Customer F

$

*

*

%

$

5,003

15

%

Customer G

$

*

*

%

$

*

*

%

*

Less than 10% of total

The following table depicts total revenue generated by the individual customers in the above table by segment that accounted for 10% or more of our revenue in fiscal years ended:

March 31, 2026

  ​ ​ ​

March 31, 2025

Revenue

  ​ ​ ​

Amount

  ​ ​ ​

Percent

  ​ ​ ​

Amount

  ​ ​ ​

Percent

 

Ranor

$

8,068

 

25

%  

$

15,576

 

46

%

Stadco

$

8,394

 

27

%  

$

11,167

 

33

%

In our 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. Contract assets consist of the following as of:

Progress

Contract assets

  ​ ​ ​

Unbilled

  ​ ​ ​

Payments

  ​ ​ ​

Total

March 31, 2026

$

26,415

$

(15,607)

$

10,808

March 31, 2025

$

26,059

$

(16,472)

$

9,587

For the fiscal years ended March 31, 2026 and 2025, we recognized revenue of $1,040 and $2,104 related to our contract liabilities as of the opening balances on April 1, 2025 and 2024. Contract liabilities consist of the following as of:

Opening

Obligations

Closing

Contract liabilities

  ​ ​ ​

Balance

  ​ ​ ​

Billed

  ​ ​ ​

Satisfied

  ​ ​ ​

Balance

March 31, 2026

$

1,040

$

20,528

$

(18,651)

$

2,917

March 31, 2025

$

2,104

$

18,720

$

(19,784)

$

1,040

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Historical Timeline

Fiscal YearFiled
2026Jun 25, 2026Showing above
2025Jul 30, 2025
2024Sep 13, 2024
2023Jun 15, 2023
2022Aug 10, 2022
2021Jun 10, 2021
2020Jun 11, 2020
2019Jun 27, 2019
2018Jun 28, 2018

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.