TECHPRECISION CORP Revenue Disclosure
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 and . 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 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 revenue only.
The following table presents revenue on a disaggregated basis by market and contract type:
Revenue by market |
| Defense |
| Industrial |
| Totals | |||
Year ended March 31, 2025 | $ | 33,599 | $ | 432 | $ | 34,031 | |||
Year ended March 31, 2024 | $ | 31,406 | $ | 185 | $ | 31,591 | |||
Revenue by contract type |
| Over-time |
| Point-in-time |
| Totals | |||
Year ended March 31, 2025 | $ | 31,323 | $ | 2,708 | $ | 34,031 | |||
Year ended March 31, 2024 | $ | 30,413 | $ | 1,178 | $ | 31,591 | |||
As of March 31, 2025, the Company had $48,625 of remaining performance obligations, of which $42,834 was less than 50% complete. The Company expects to recognize all its remaining performance obligations as revenue within the next .
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:
2025 | 2024 |
| |||||||||
Customer |
| Amount |
| Percent |
| Amount |
| Percent |
| ||
Customer A | $ | 5,795 |
| 17 | % | $ | 10,295 |
| 32 | % | |
Customer B | $ | 3,327 |
| 10 | % | $ | 3,320 |
| 10 | % | |
Customer C | $ | 4,947 |
| 15 | % | $ | 3,258 |
| 10 | % | |
Customer D | $ | * | * | % | $ | * | * | % | |||
Customer E | $ | 7,671 | 22 | % | $ | 5,005 | 16 | % | |||
Customer F | $ | 5,003 | 15 | % | $ | * | * | % | |||
* | Less than 10% of total |
The following table displays total revenue generated by the individual customers in the above table by segment that accounted for 10% or more of our revenue in either fiscal 2025 or fiscal 2024:
(dollars in thousands) | 2025 |
| 2024 | ||||||||
Revenue |
| Amount |
| Percent |
| Amount |
| Percent |
| ||
Ranor | $ | 15,576 |
| 46 | % | $ | 15,628 |
| 49 | % | |
Stadco | $ | 11,167 |
| 33 | % | $ | 6,250 |
| 19 | % | |
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 for the fiscal years ended:
Progress | |||||||||
Contract assets |
| Unbilled |
| Payments |
| Total | |||
March 31, 2025 | $ | 26,059 | $ | (10,472) | $ | 9,587 | |||
March 31, 2024 | $ | 19,255 | $ | (10,728) | $ | 8,527 | |||
For the fiscal years ended March 31, 2025 and 2024, we recognized revenue of $2,104 and $1,195 related to our contract liabilities as of the opening balances on April 1, 2024 and 2023. Contract liabilities consist of the following for the fiscal years ended:
Opening | Obligations | Closing | ||||||||||
Contract liabilities |
| Balance |
| Billed |
| Satisfied |
| Balance | ||||
March 31, 2025 | $ | 2,104 | $ | 18,720 | $ | (19,784) | $ | 1,040 | ||||
March 31, 2024 | $ | 1,195 | $ | 13,574 | $ | (12,665) | $ | 2,104 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 30, 2025 | Showing above |
| 2024 | Sep 13, 2024 | |
| 2023 | Jun 15, 2023 | |
| 2022 | Aug 10, 2022 | |
| 2021 | Jun 10, 2021 | |
| 2020 | Jun 11, 2020 | |
| 2019 | Jun 27, 2019 | |
| 2018 | Jun 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.