Financial Analysis

NOTE 15 COMMITMENTS AND CONTINGENCIES Legal Proceedings In accordance with the accounting standard for contingencies, we record a liability when management believes that it is both probable that a liability has been incurred, and we can reasonably estimate the amount of the loss. Generally, the loss is recorded for the amount we expect to resolve the liability. We review and adjust any provisions quarterly to reflect the effect of negotiations, settlements, rulings, and advice. There are no recorded provisions for litigation matters as of March 31, 2026 and 2025. Employment Agreements We have employment agreements with each of our executive officers. Such agreements provide for minimum salary levels, adjusted annually, and incentive bonuses that are payable if specified company goals are attained. The aggregate commitment at March 31, 2026 for future executive salaries was $615. Purchase Commitments As of March 31, 2026, we had $2,805 in outstanding purchase obligations, which primarily consisted of contractual commitments to purchase new materials and supplies expected to be used over the next twelve months. We also had $13,247 in purchase obligations outstanding for the purchase of machinery and equipment under an arrangement with a certain customer as described above in Note 13 Noncurrent liabilities . The company will be reimbursed in full by the customer for all purchases. Retirement Benefits The Company has two defined contributions and savings plans that cover substant …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12 DEBT Long-term debt included the following as of: March 31, 2026 March 31, 2025 Stadco Term Loan, at 3.79% interest, due August 2028 $ 1,504 $ 2,086 Ranor Term Loan, at 6.05% interest, due December 2027 2,081 2,151 Ranor Revolver Loan, due September 2026 3,446 3,150 Stadco equipment financing, at 13.38% interest, due September 2026 6 37 Total debt $ 7,037 $ 7,424 Less: debt issue costs unamortized $ 153 $ 68 Total debt, net $ 6,884 $ 7,356 Less: Current portion of long-term debt $ 6,884 $ 7,353 Total long-term debt, net $ $ 3 Amended and Restated Loan Agreement On August 25, 2021, the Company entered into the Loan Agreement. Under the Loan Agreement, the Bank will continue to provide the Ranor Term Loan and the revolving line of credit, or the Revolver Loan. In addition, the Bank provided the Stadco Term Loan (as defined below) in the original amount of $4,000. The proceeds of the original Ranor Term Loan of $2,850 were used to refinance existing mortgage debt at Ranor. The proceeds of the Revolver Loan are used for working capital and general corporate purposes of the Company. The proceeds of the Stadco Term Loan were to be used to support the acquisition of Stadco and refinance existing indebtedness of Stadco. Since December 20, 2021, Ranor and certain affiliates of the Company entered into thirteen separate amendments to the Amended and Restated Loan Agreement and First Amendment to Promissory Note that extended the maturity date of the Ranor Term Loan and Revolver …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 7 STOCK-BASED COMPENSATION Our board of directors, upon the recommendation of the compensation committee of our board of directors, approved the 2016 TechPrecision Equity Incentive Plan, or the 2016 Plan, on November 10, 2016. Our stockholders approved the 2016 Plan at the Companys Annual Meeting of Stockholders on December 8, 2016. The 2016 Plan succeeds the 2006 Plan (as defined below) and applies to awards granted after the 2016 Plans adoption by the Companys stockholders. We have designed the 2016 Plan to reflect our commitment to having best practices in both compensation and corporate governance. The Plan shall terminate on the 10-year anniversary of the effective date, and no Awards under the Plan shall thereafter be granted. The 2016 Plan authorizes the award of incentive and non-qualified stock options, restricted and unrestricted stock awards, restricted stock units, and performance awards to employees, directors, consultants, and other individuals who provide services to TechPrecision or its affiliates. The purpose of the 2016 Plan is to enable TechPrecision and its affiliated companies to recruit and retain highly qualified employees, directors, and consultants; and to provide those employees, directors, and consultants with an incentive for productivity, and an opportunity to share in the growth and value of the Company. Subject to adjustment as provided in the 2016 Plan, the maximum number of shares of common stock that may be issued with respect to awards …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 5 INCOME TAXES We account for income taxes under ASC 740, Income Taxes . The following table reflects loss from continuing operations by location, and the provision for income taxes for the applicable fiscal years ended: March 31, 2026 March 31, 2025 Loss before income taxes $ (1,633) $ (2,750) Income tax expense (benefit) 31 (2) Net loss $ (1,664) $ (2,748) The Components of the income tax provision consist of the following for the fiscal years ended: March 31, 2026 March 31, 2025 Current: Federal $ $ (1) State 31 (1) Foreign Total Current $ 31 $ (2) Deferred: Federal $ $ State Foreign Total Deferred $ $ Total: Federal (1) State 31 (1) Foreign Total expense (benefit) $ 31 $ (2) Our fiscal 2026 and 2025 taxes were measured at the U.S. statutory income tax rate of 21%. The effective tax rate is calculated by dividing the income tax provision by loss before income taxes. The following table reconciles income taxes computed at the U.S. federal statutory rate to the actual tax expense for income taxes reported in the Consolidated Statements of Operations follows for fiscal year ended: March 31, 2026 U.S. statutory income tax $ (343) 21.0 % State income tax, net of federal benefits 27 (1.7) % Changes in the valuation allowance 415 (25.4) % Stock compensation (48) 2.9 % Other nondeductible items 12 (0.7) % Adjustment to prior year deferred balance (32) 2.0 % Income tax expense and effective income tax rate* $ 31 (1.9) % * For the fiscal year ended March 31, 2026, state and loc …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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 Companys 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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 16 SEGMENT INFORMATION The Company has two wholly owned subsidiaries, Ranor and Stadco, each a reportable segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All the Companys operations, assets, and customers are located in the U.S. Each reportable segment focuses on the manufacture and assembly of specific components, primarily for defense, aerospace and other precision industrial customers. Our Chief Executive Officer, or CEO, is the Chief Operating Decision Maker, or CODM, and evaluates the performance of our segments based upon, among other things, segment revenue and operating profit. The CODM uses the operating profit metric to evaluate segment results of operations and the financial measure that provides insight into our overall performance and financial position. Segment operating profit includes executive, sales and marketing compensation, and other administrative and corporate expenses allocated equally to each segment based on a revenue run rate. The following table provides summarized financial information for our segments: March 31, 2026 March 31, 2025 Ranor Stadco Total Ranor Stadco Total Revenue $ 16,946 $ 15,306 $ 32,252 $ 18,165 $ 15,998 $ 34,163 Intersegment elimination (56) (552) (608) (132) (132) Revenue, net 16,890 14,754 31,644 18,165 15,866 34,031 Cost of revenue 10,566 16,103 26,669 12,491 17,211 29,702 Selling, general, and administrative (1) 2,552 2,788 5,340 2,545 3 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 17 SUBSEQUENT EVENT Ranor, Inc. along with certain affiliates of the Company entered into that certain Amended and Restated Loan Agreement with the Bank on August 25, 2021 under which, among other things, the Bank provided a revolving line of credit loan to the Borrowers which currently has a maximum principal amount of $4,500. Under the Amended and Restated Loan Agreement and related loan documents, as further amended, the Revolver Loan had a maturity date of May 15, 2026. On May 13, 2026, Ranor and the other Borrowers entered into a Fourteenth Amendment to Amended and Restated Loan Agreement and Tenth Amendment to Second Amended and Restated Promissory Note with the Bank. The Fourteenth Amendment, among other things, (i) extends the maturity date of the Revolver Loan from May 15, 2026 to September 15, 2026, (ii) adds covenants from the Borrowers to: (a) provide by July 31, 2026 (or such later date agreed by the Bank in its sole discretion) a term sheet for a refinancing to repay outstanding obligations under the Amended and Restated Loan Agreement by September 15, 2026; if not provided by July 31, 2026, then the Borrowers shall provide access to Beacon to conduct field examinations of all assets, and appraisals of all collateral, of Borrowers at all locations where assets may be located; and (b) cooperate with and pay for a lender-ordered appraisal of one of the Companys properties; and (iii) adds a failure-to-perform fee of $15 if any amounts remain outstanding under …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 14 - COMMITMENTS AND CONTINGENT LIABILITIES Employment Agreements We have employment agreements with each of our executive officers. Such agreements provide for minimum salary levels, adjusted annually, and incentive bonuses that are payable if specified company goals are attained. The aggregate commitment at December 31, 2025 for future executive salaries was $615. Purchase Commitments As of December 31, 2025, we had $4,758 in purchase obligations outstanding, which primarily consisted of contractual commitments to purchase new materials and supplies expected to be used over the next twelve months. We also have $9,825 in purchase obligations outstanding for the purchase of machinery and equipment under an arrangement with a certain customer as described above in Note 12- Noncurrent liabilities . The company will be reimbursed in full by the customer for all purchases. Retirement Benefits The Company has a defined contribution and savings plan that covers substantially all employees who have completed 90 days of service. Ranor retains the option to match employee contributions. The Company contributed $22 and $66 for the three and nine months ended December 31, 2025, and $21 and $63 for the three and nine months ended December 31, 2024. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11 - DEBT Long-term debt included the following as of: December 31, 2025 March 31, 2025 Stadco Term Loan, at 3.79% interest, due August 2028 $ 1,652 $ 2,086 Ranor Term Loan, at 6.05% interest, due December 2027 2,099 2,151 Ranor Revolver Loan, due January 2026 2,926 3,150 Stadco equipment financing, at 13.38% interest, due April 2026 15 37 Total debt $ 6,692 $ 7,424 Less: debt issue costs unamortized $ 42 $ 68 Total debt, net $ 6,650 $ 7,356 Less: Current portion of long-term debt $ 6,650 $ 7,353 Total long-term debt, net $ $ 3 Amended and Restated Loan Agreement On August 25, 2021, the Company entered into an amended and restated loan agreement with Berkshire Bank, or the Loan Agreement. Under the Loan Agreement, Beacon Bank & Trust, successor by merger to Berkshire Bank, or the Bank, will continue to provide the Ranor Term Loan (as defined below) and the revolving line of credit, or the Revolver Loan. In addition, the Bank provided the Stadco Term Loan (as defined below) in the original amount of $4,000. The proceeds of the original Ranor Term Loan of $2,850 were previously used to refinance existing mortgage debt of Ranor. The proceeds of the Revolver Loan are used for working capital and general corporate purposes of the Company. The proceeds of the Stadco Term Loan were used to support the acquisition of Stadco and refinance existing indebtedness of Stadco. Since December 20, 2021, Ranor and certain affiliates of the Company entered into thirteen separate amendm …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 6 - STOCK-BASED COMPENSATION Our board of directors, upon the recommendation of the compensation committee of our board of directors, approved the 2016 TechPrecision Equity Incentive Plan, or the 2016 Plan, on November 10, 2016. Our stockholders approved the 2016 Plan at the Companys Annual Meeting of Stockholders on December 8, 2016. We have designed the 2016 Plan to reflect our commitment to having best practices in both compensation and corporate governance. The 2016 Plan authorizes the award of incentive and non-qualified stock options, restricted and unrestricted stock awards, restricted stock units, and performance awards to employees, directors, consultants, and other individuals who provide services to TechPrecision or its affiliates. The purpose of the 2016 Plan is to enable TechPrecision and its affiliated companies to recruit and retain highly qualified employees, directors, and consultants; and to provide those employees, directors, and consultants with an incentive for productivity, and an opportunity to share in the growth and value of the Company. Subject to adjustment as provided in the 2016 Plan, the maximum number of shares of common stock that may be issued with respect to awards under the 2016 Plan is 1,250,000. Shares of our common stock subject to awards that expire unexercised or are otherwise forfeited shall again be available for awards under the 2016 Plan. The fair value of the options we grant is estimated using the Black-Scholes option-pricing …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 4 - INCOME TAXES We account for income taxes under ASC 740, Income Taxes . The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. Our taxes are measured at the U.S. statutory income tax rate of 21%. For the three and nine months ended December 31, 2025, there was no change in our judgment about the realizability of deferred tax assets in future years, and, therefore, no expense or benefit provided for income taxes. In assessing the recoverability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We have determined that it is more likely than not that certain future tax benefits may not be realized. The assessment was based on the weight of negative evidence at the balance sheet date, our recent operating losses and unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels. Accordingly, a valuation allowance has been recorded against deferred tax assets that are unlikely to be realized. Realization of deferred tax assets will depend on the generation of sufficient taxable income in the appropriate jurisdictions, the reversal of deferred tax liabilities, tax planning strategies and other factors prior to the expiration date of the carryforwards. A chan …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New Accounting Standards Adopted In December 2023, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This standard update is effective for annual reporting periods beginning after December 15, 2024. As such, the Company adopted this update on April 1, 2025. This standard update will only impact the disclosures in the Income Taxes footnote. New Accounting Standards Not Yet Adopted In November 2024, the FASB, issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40), Disaggregation of Income Statement Expenses. The ASU will require the Company to provide more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of revenue, SG&A, and research and development). The ASU does not change the expense captions an entity presents on the face of the statement of operations. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods begi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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 Companys 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, …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 15 - SEGMENT INFORMATION The Company has two wholly owned subsidiaries, Ranor and Stadco, each a reportable segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All the Companys operations, assets, and customers are located in the U.S. Each reportable segment focuses on the manufacture and assembly of specific components, primarily for defense, aerospace and other precision industrial customers. Our Chief Executive Officer, or CEO, is the Chief Operating Decision Maker, or CODM, and evaluates the performance of our segments based upon, among other things, segment revenue and operating profit. The operating profit metric is what the CODM uses in evaluating segment results of operations and the financial measure that provides insight into our overall performance and financial position. Segment operating profit includes executive, sales and marketing compensation, and other administrative and corporate expenses allocated equally to each segment based on a revenue run rate. The following table provides summarized financial information for our segments: Three months ended December 31, 2025 Three months ended December 31, 2024 Ranor Stadco Total Ranor Stadco Total Revenue $ 4,362 $ 2,984 $ 7,346 $ 4,310 $ 3,312 $ 7,622 Intersegment elimination (252) (252) Revenue, net $ 4,362 $ 2,732 $ 7,094 $ 4,310 $ 3,312 $ 7,622 Cost of revenue 2,815 3,898 6,713 2,798 3,833 6,631 Selling, general, and administrat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16 - SUBSEQUENT EVENT As previously disclosed, on August 25, 2021, Ranor, Inc. along with certain affiliates of the Company entered into that certain Amended and Restated Loan Agreement with the Bank under which, among other things, the Bank provided a revolving line of credit loan to the Borrowers which currently has a maximum principal amount of $4,500,000. Under the Amended and Restated Loan Agreement and related loan documents, as further amended, the Revolver Loan had a maturity date of January 16, 2026. On January 12, 2026, Ranor and the other Borrowers entered into a Thirteenth Amendment to Amended and Restated Loan Agreement and Ninth Amendment to Second Amended and Restated Promissory Note with the Bank. The Amendment, among other things, extends the maturity date of the Revolver Loan from January 16, 2026 to May 15, 2026.

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