COMMITMENTS	12 Months Ended
Mar. 31, 2013
COMMITMENTS
COMMITMENTS	NOTE 16 — COMMITMENTS Leases On November 17, 2010, we entered into a lease agreement to lease approximately 3,200 square feet of office space in Center Valley, Pennsylvania to be used as our corporate headquarters. We took possession of the office space on April 1, 2011. Under the Lease, our payment obligations were deferred until the fifth month after it takes possession, at which time we 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, we 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 we fail to satisfy our payment obligations in a timely manner, or otherwise default on our obligations under the Lease. The Lease expires sixty-four months after the date of the Lease. We 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 March 31, 2013 we recorded a liability for deferred rent of $16,126 reflecting the difference between the expense recorded in the consolidated statement of operations and comprehensive income (loss) the monthly rent cash payments paid to the lessor. On November 15, 2010 and June 15, 2011, we 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. The leases were renewed thereafter on an annual basis. We also lease apartment space and cars for certain expatriate employees who live and work in China at an annual rental cost of approximately $34,000 and expire on various dates. Rent expense for all operating leases for the fiscal years ended March 31, 2013 and 2012 was $138,765 and $131,090, respectively. Future minimum lease payments required under non-cancellable operating leases in the aggregate, at March 31, 2013, totaled $227,448. The totals for each annual period ended on March 31 were: 2014- $59,912, 2015- $61,500, 2016- $63,092 and 2017- $42,944. As of March 31, 2013, we had $0.9 million in purchase obligations outstanding, which primarily consisted of contractual commitments to purchase raw materials and supplies at fixed prices. Employment Agreements We have employment agreements with our 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. The aggregate annual commitment at March 31, 2013 for future salaries during the next fiscal year 2014, excluding bonuses, was approximately $710,000. Severance Agreement On February 8, 2012 our President and General Manager for our Ranor operation in the U.S. retired. In connection with the above event, we were required to provide severance and certain post-employment benefits. As such, we recorded a charge of $226,945 associated with this event and was paid in full during fiscal 2013.

NOTE 16 — COMMITMENTS

Leases

On November 17, 2010, we entered into a lease agreement to lease approximately 3,200 square feet of office space in Center Valley, Pennsylvania to be used as our corporate headquarters. We took possession of the office space on April 1, 2011. Under the Lease, our payment obligations were deferred until the fifth month after it takes possession, at which time we 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, we 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 we fail to satisfy our payment obligations in a timely manner, or otherwise default on our obligations under the Lease. The Lease expires sixty-four months after the date of the Lease. We 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 March 31, 2013 we recorded a liability for deferred rent of $16,126 reflecting the difference between the expense recorded in the consolidated statement of operations and comprehensive income (loss) the monthly rent cash payments paid to the lessor.

On November 15, 2010 and June 15, 2011, we 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. The leases were renewed thereafter on an annual basis. We also lease apartment space and cars for certain expatriate employees who live and work in China at an annual rental cost of approximately $34,000 and expire on various dates.

Rent expense for all operating leases for the fiscal years ended March 31, 2013 and 2012 was $138,765 and $131,090, respectively.

Future minimum lease payments required under non-cancellable operating leases in the aggregate, at March 31, 2013, totaled $227,448. The totals for each annual period ended on March 31 were: 2014- $59,912, 2015- $61,500, 2016- $63,092 and 2017- $42,944.

As of March 31, 2013, we had $0.9 million in purchase obligations outstanding, which primarily consisted of contractual commitments to purchase raw materials and supplies at fixed prices.

Employment Agreements

We have employment agreements with our 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. The aggregate annual commitment at March 31, 2013 for future salaries during the next fiscal year 2014, excluding bonuses, was approximately $710,000.

Severance Agreement

On February 8, 2012 our President and General Manager for our Ranor operation in the U.S. retired. In connection with the above event, we were required to provide severance and certain post-employment benefits. As such, we recorded a charge of $226,945 associated with this event and was paid in full during fiscal 2013.