REVENUE

3 Months Ended

Jun. 30, 2026

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 June 30, 2026	$	8,966	$	130	$	9,096
Three months ended June 30, 2025	$	7,379	$	—	$	7,379

Revenue by contract type	Over-time		Point-in-time		Totals
Three months ended June 30, 2026	$	8,870	$	226	$	9,096
Three months ended June 30, 2025	$	6,685	$	694	$	7,379

As of June 30, 2026, the Company had $52,681 of remaining performance obligations, of which $46,997 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
	June 30, 2026				June 30, 2025
Customer	Amount		Percent		Amount		Percent
A	$	1,441	16	%	$	1,126	15	%
B	$	*	*	%	$	*	*	%
C	$	*	*	%	$	1,845	25	%
D	$	1,655	18	%	$	*	*	%
E	$	*	*	%	$	1,590	21	%
F	$	1,080	12	%	$	711	10	%
G	$	*	*	%	$	*	*	%

*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
	June 30, 2026				June 30, 2025
Segment	Amount		Percent		Amount		Percent
Ranor	$	2,471	27	%	$	3,202	43	%
Stadco	$	1,705	19	%	$	2,070	28	%

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
June 30, 2026	$	26,780	$	(16,380)	$	10,400
March 31, 2026	$	26,415	$	(15,607)	$	10,808

For the three months ended June 30, 2026 and 2025, we recognized revenue of $2,270 and $676 related to our contract liabilities as of the opening balances on April 1, 2026 and 2025. Contract liabilities consist of the following as of:

	Opening				Obligations		Closing
Contract liabilities	Balance		Billed		Satisfied		Balance
June 30, 2026	$	2,917	$	20,624	$	(20,606)	$	2,935
March 31, 2026	$	1,040	$	20,528	$	(18,651)	$	2,917