COMMITMENTS	9 Months Ended
Dec. 31, 2012
COMMITMENTS
COMMITMENTS	NOTE 16 — COMMITMENTS Leases On November 17, 2010, the Company entered into a lease agreement to lease approximately 3,200 sq. ft. of office space in Center Valley, Pennsylvania to be used as the Company’s corporate headquarters. The Company took possession of the office space on April 1, 2011. Under the lease, the Company’s payment obligations were deferred until the fifth month after it takes possession, at which time the Company will pay annual rent of approximately $58,850 in equal monthly installments, subject to upward adjustments during each subsequent year of the term of the Lease. In addition to base rent, the Company will pay to the landlord certain operating expenses and other fees in accordance with the terms of the lease. Payment of base rent and other fees under the lease may be accelerated if the Company fails to satisfy its payment obligations in a timely manner, or otherwise defaults on its obligations under the lease. The lease expires sixty-four months after the date of the lease. The Company may elect to renew the lease for an additional five-year term. The lease contains customary representations and covenants regarding occupancy, maintenance and care of the property. At December 31, 2012, we recorded a liability for deferred rent of $16,764 reflecting the difference between the expense recorded in the consolidated statement of operations and comprehensive loss and the monthly rent cash payments paid to the lessor. On November 15, 2010 and June 15, 2011, the Company entered into certain leases for approximately 1,000 sq. ft. of office space in Wuxi, China. The annual rental cost is approximately $27,000 and the leases expired on November 14, 2012 and will be renewed going forward on a monthly basis. We also lease apartment space for certain expatriate employees who live and work in China. The annual rental cost is approximately $42,000 and the leases will expire on various dates during the fiscal year ending March 31, 2013. Rent expense for all operating leases for the nine months ended December 31, 2012 and December 31, 2011 was $137,001 and $136,553, respectively. Future minimum lease payments required under non-cancellable operating leases in the aggregate, at December 31, 2012, totaled $242,160. The totals for each annual period ended on December 31 were: 2013- $59,513, 2014- $61,104, 2015- $62,693 and 2016- $58,850. Employment Agreements The Company has employment agreements with its executive officers. Such agreements provide for minimum salary levels, adjusted annually, as well as for incentive bonuses that are payable if specified company goals are attained. Severance Agreement On February 8, 2012, the Company’s President and General Manager for its Ranor operation in the U.S. retired. In connection with the above event, the Company was required to provide severance and certain post-employment benefits. As such, the Company recorded a charge of $226,945 associated with this event. A balance of $76,458 remains outstanding at December 31, 2012, and is included in accrued expenses on the consolidated balance sheet. During the second quarter of fiscal 2013, Ranor was required to provide severance in connection with certain employee terminations. As such, the Company recorded a charge of $74,917 associated with this event. At December 31, 2012, a balance of $17,896 remained outstanding and is included in accrued expenses in the consolidated balance sheet.

NOTE 16 — COMMITMENTS

Leases

On November 17, 2010, the Company entered into a lease agreement to lease approximately 3,200 sq. ft. of office space in Center Valley, Pennsylvania to be used as the Company’s corporate headquarters. The Company took possession of the office space on April 1, 2011. Under the lease, the Company’s payment obligations were deferred until the fifth month after it takes possession, at which time the Company will pay annual rent of approximately $58,850 in equal monthly installments, subject to upward adjustments during each subsequent year of the term of the Lease. In addition to base rent, the Company will pay to the landlord certain operating expenses and other fees in accordance with the terms of the lease. Payment of base rent and other fees under the lease may be accelerated if the Company fails to satisfy its payment obligations in a timely manner, or otherwise defaults on its obligations under the lease. The lease expires sixty-four months after the date of the lease. The Company may elect to renew the lease for an additional five-year term. The lease contains customary representations and covenants regarding occupancy, maintenance and care of the property.

At December 31, 2012, we recorded a liability for deferred rent of $16,764 reflecting the difference between the expense recorded in the consolidated statement of operations and comprehensive loss and the monthly rent cash payments paid to the lessor.

On November 15, 2010 and June 15, 2011, the Company entered into certain leases for approximately 1,000 sq. ft. of office space in Wuxi, China. The annual rental cost is approximately $27,000 and the leases expired on November 14, 2012 and will be renewed going forward on a monthly basis. We also lease apartment space for certain expatriate employees who live and work in China. The annual rental cost is approximately $42,000 and the leases will expire on various dates during the fiscal year ending March 31, 2013.

Rent expense for all operating leases for the nine months ended December 31, 2012 and December 31, 2011 was $137,001 and $136,553, respectively. Future minimum lease payments required under non-cancellable operating leases in the aggregate, at December 31, 2012, totaled $242,160. The totals for each annual period ended on December 31 were: 2013- $59,513, 2014- $61,104, 2015- $62,693 and 2016- $58,850.

Employment Agreements

The Company has employment agreements with its executive officers. Such agreements provide for minimum salary levels, adjusted annually, as well as for incentive bonuses that are payable if specified company goals are attained.

Severance Agreement

On February 8, 2012, the Company’s President and General Manager for its Ranor operation in the U.S. retired. In connection with the above event, the Company was required to provide severance and certain post-employment benefits. As such, the Company recorded a charge of $226,945 associated with this event. A balance of $76,458 remains outstanding at December 31, 2012, and is included in accrued expenses on the consolidated balance sheet.

During the second quarter of fiscal 2013, Ranor was required to provide severance in connection with certain employee terminations. As such, the Company recorded a charge of $74,917 associated with this event. At December 31, 2012, a balance of $17,896 remained outstanding and is included in accrued expenses in the consolidated balance sheet.