REVENUE

3 Months Ended

Jun. 30, 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 inputs 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, 2025	$	7,379	$	—	$	7,379
Three months ended June 30, 2024	$	7,800	$	186	$	7,986

Revenue by contract type	Over-time		Point-in-time		Totals
Three months ended June 30, 2025	$	6,685	$	694	$	7,379
Three months ended June 30, 2024	$	7,492	$	494	$	7,986

As of June 30, 2025, the Company had $50,114 of remaining performance obligations, of which $44,051 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 three months ended June 30:

	2025				2024
Customer	Amount		Percent		Amount		Percent
Customer A	$	1,126	15	%	$	1,762	22	%
Customer B	$	*	*	%	$	992	13	%
Customer C	$	1,845	25	%	$	1,075	14	%
Customer D	$	*	*	%	$	*	*	%
Customer E	$	1,590	21	%	$	1,844	23	%
Customer F	$	711	10	%	$	879	11	%

*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 three months ended June 30:

(dollars in thousands)	2025				2024
Revenue	Amount		Percent		Amount		Percent
Ranor	$	3,202	43	%	$	3,888	45	%
Stadco	$	2,070	28	%	$	2,664	26	%

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 for the periods ended:

			Progress
Contract assets	Unbilled		Payments		Total
June 30, 2025	$	26,760	$	(17,683)	$	9,077
March 31, 2025	$	26,059	$	(16,472)	$	9,587

For the three months ended June 30, 2025 and 2024, we recognized revenue of $676 and $856 related to our contract liabilities as of the opening balances on April 1, 2025 and 2024. Contract liabilities consist of the following for the periods ended:

	Opening				Obligations		Closing
Contract liabilities	Balance		Billed		Satisfied		Balance
June 30, 2025	$	1,040	$	20,669	$	(19,747)	$	1,962
March 31, 2025	$	2,104	$	18,720	$	(19,784)	$	1,040