REVENUE

12 Months Ended

Mar. 31, 2026

REVENUE

REVENUE

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 fulfils 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 inputs methodology based on labor hours, materials, and other estimated costs to complete a contract to measure performance progress. This model best depicts the transfer of control to the customer. The Company’s contract portfolio comprises fixed-price contracts and provides for product and service type revenue.

The following table presents revenue on a disaggregated basis by market and contract type:

Revenue by market	Defense		Industrial		Totals
Year ended March 31, 2026	$	31,223	$	421	$	31,644
Year ended March 31, 2025	$	33,599	$	432	$	34,031

Revenue by contract type	Over-time		Point-in-time		Totals
Year ended March 31, 2026	$	29,576	$	2,068	$	31,644
Year ended March 31, 2025	$	31,323	$	2,708	$	34,031

As of March 31, 2026, the Company had $52,198 of remaining performance obligations, of which $46,900 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 fiscal years ended:

	March 31, 2026				March 31, 2025
Customer	Amount		Percent		Amount		Percent
Customer A	$	3,570	11	%	$	5,795	17	%
Customer B	$	*	*	%	$	3,327	10	%
Customer C	$	4,733	15	%	$	4,947	15	%
Customer D	$	3,403	11	%	$	*	*	%
Customer E	$	4,756	15	%	$	7,671	22	%
Customer F	$	*	*	%	$	5,003	15	%
Customer G	$	*	*	%	$	*	*	%

* Less than 10% of total

The following table depicts total revenue generated by the individual customers in the above table by segment that accounted for 10% or more of our revenue in fiscal years ended:

	March 31, 2026				March 31, 2025
Revenue	Amount		Percent		Amount		Percent
Ranor	$	8,068	25	%	$	15,576	46	%
Stadco	$	8,394	27	%	$	11,167	33	%

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 as of:

			Progress
Contract assets	Unbilled		Payments		Total
March 31, 2026	$	26,415	$	(15,607)	$	10,808
March 31, 2025	$	26,059	$	(16,472)	$	9,587

For the fiscal years ended March 31, 2026 and 2025, we recognized revenue of $1,040 and $2,104 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
March 31, 2026	$	1,040	$	20,528	$	(18,651)	$	2,917
March 31, 2025	$	2,104	$	18,720	$	(19,784)	$	1,040