REVENUE

9 Months Ended

Dec. 31, 2025

REVENUE

REVENUE

NOTE 3 - 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 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 input 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
Three months ended December 31, 2025	$	6,684	$	410	$	7,094
Three months ended December 31, 2024	$	7,440	$	182	$	7,622
Nine months ended December 31, 2025	$	23,138	$	421	$	23,559
Nine months ended December 31, 2024	$	24,324	$	230	$	24,554

Revenue by contract type	Over-time		Point-in-time		Totals
Three months ended December 31, 2025	$	6,422	$	672	$	7,094
Three months ended December 31, 2024	$	7,297	$	325	$	7,622
Nine months ended December 31, 2025	$	21,766	$	1,793	$	23,559
Nine months ended December 31, 2024	$	23,158	$	1,396	$	24,554

As of December 31, 2025, the Company had $45,962 of remaining performance obligations, of which $41,747 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 periods ended:

	Three months ended				Three months ended				Nine months ended				Nine months ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
A	$	*	*	%	$	1,109	15	%	$	2,319	10	%	$	4,465	18	%
B	$	993	14	%	$	794	10	%	$	*	*	%	$	2,684	11	%
C	$	796	11	%	$	1,107	15	%	$	3,574	15	%	$	3,388	14	%
D	$	830	12	%	$	*	*	%	$	2,500	11	%	$	*	*	%
E	$	915	13	%	$	1,611	21	%	$	4,065	17	%	$	4,849	20	%
F	$	*	*	%	$	1,673	22	%	$	*	*	%	$	4,665	19	%
G	$	1,064	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 for the periods indicated:

	Three months ended				Three months ended				Nine months ended				Nine months ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Segment	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Ranor	$	2,853	40	%	$	3,857	51	%	$	5,933	25	%	$	12,138	50	%
Stadco	$	1,745	25	%	$	2,437	32	%	$	6,525	28	%	$	7,913	32	%

In our condensed 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
December 31, 2025	$	25,779	$	(14,359)	$	11,420
March 31, 2025	$	26,059	$	(16,472)	$	9,587

For the nine months ended December 31, 2025 and 2024, we recognized revenue of $1,040 and $2,103 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
December 31, 2025	$	1,040	$	19,552	$	(17,446)	$	3,146
March 31, 2025	$	2,104	$	18,720	$	(19,784)	$	1,040