SUBSEQUENT EVENTS

9 Months Ended

Dec. 31, 2011

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 17 – SUBSEQUENT EVENTS

As of December 31, 2011, the Company did not meet the requirement to maintain a ratio of earnings available to cover fixed charges of at least 120% and maintain an interest coverage ratio of at least 2:1.  The Company has obtained a waiver of the breach of such covenants from the Bank, which waiver covers the breaches that otherwise would have occurred in connection with the covenant testing for the quarter ended December 31, 2011 and waives the covenants at March 31, 2012.  The waiver does not apply to any future covenant testing dates.  The Company expects to be in compliance with the agreement through December 31, 2012.

On January 23, 2012 there were 290,000 shares of Series A Convertible Preferred Stock converted into 379,087 shares of common stock, respectively. At January 31, 2012, the Company had Series A Convertible Preferred Stock and Common Stock outstanding for 7,035,982 and 17,884,291 shares, respectively.

On February 8, 2012 the Company appointed a new President and General Manager for its Ranor operation in the U.S. replacing Stanley Youtt who is transitioning to the role of Executive Vice President, Special Projects.   In connection with the above announcement, the Company is required to provide certain post-employment benefits under Mr. Youtt’s employment contract.  The Company will record the costs associated with the post-employment benefit obligation in the fourth quarter of 2012.

On February 11, 2012, the Company executed a purchasing agreement with a key customer for the manufacture of LED sapphire chambers.  This purchasing agreement is expected to lead to purchase orders of up to $9.5 million over the period from March 2012 through February 2013.